Current through Register Vol. 54, No. 38, September 21, 2024
(a) In determining just and reasonable
alternative distribution ratemaking mechanisms and rate designs that promote
the purpose and scope of this statement of policy and the objectives of
66 Pa.C.S. §
1330
(relating to alternative ratemaking for utilities), the Commission may
consider, among other relevant factors, the following:
(1) How the ratemaking mechanism and rate
design align revenues with cost causation principles as to both fixed and
variable costs.
(2) How the
ratemaking mechanism and rate design impact the fixed utility's capacity
utilization.
(3) Whether the
ratemaking mechanism and rate design reflect the level of demand associated
with the customer's anticipated consumption levels.
(4) How the ratemaking mechanism and rate
design limit or eliminate interclass and intraclass cost shifting.
(5) How the ratemaking mechanism and rate
design limit or eliminate disincentives for the promotion of efficiency
programs.
(6) How the ratemaking
mechanism and rate design impact customer incentives to employ efficiency
measures and distributed energy resources.
(7) How the ratemaking mechanism and rate
design impact low-income customers and support consumer assistance
programs.
(8) How the ratemaking
mechanism and rate design impact customer rate stability principles.
(9) How weather impacts utility revenue under
the ratemaking mechanism and rate design.
(10) How the ratemaking mechanism and rate
design impact the frequency of rate case filings and affect regulatory
lag.
(11) If or how the ratemaking
mechanism and rate design interact with other revenue sources, such as Section
1307 automatic adjustment surcharges,
66 Pa.C.S. §
1307
(relating to sliding scale of rates; adjustments), riders such as
66 Pa.C.S. §
2804(9) (relating to
standards for restructuring of electric industry) or system improvement
charges,
66 Pa.C.S. §
1353
(relating to distribution system improvement charge).
(12) Whether the alternative ratemaking
mechanism and rate design include appropriate consumer protections.
(13) Whether the alternative ratemaking
mechanism and rate design are understandable to consumers.
(14) How the ratemaking mechanism and rate
design will support improvements in utility reliability.
(b) In any distribution rate filing by a
fixed utility under
66 Pa.C.S. §
1308
(relating to voluntary changes in rates) that proposes an alternative
ratemaking mechanism and rate design, the fixed utility shall explain how these
factors impact the distribution rates for each customer class.
