52 Pa. Code § 69.266. Cost recovery.

§ 69.266. Cost recovery.

(a)  In evaluating utility CAPs for ratemaking purposes, the Commission will consider both revenue and expense impacts. Revenue impact considerations include a comparison between the amount of revenue collected from CAP participants prior to and during their enrollment in the CAP. CAP expense impacts include both the expenses associated with operating the CAPs as well as the potential decrease of customary utility operating expenses. Operating expenses include the return requirement on cash working capital for carrying arrearages, the cost of credit and collection activities for dealing with low income negative ability to pay customers and uncollectible accounts expense for writing off bad debt for these customers. When making CAP-related expense adjustments and projections, utilities should indicate whether a customer’s participation in a CAP produced an immediate reduction in customary utility expenses and a reduction in future customary expenses pertaining to that account.
(b)  In rate cases, parties may raise the issue of recovery of CAP costs, whether specifically or as part of universal service program costs in general, from all ratepayer classes. No rate class should be considered routinely exempt from CAP and other universal service obligations.

Source

   The provisions of this §  69.266 adopted July 24, 1992, effective July 25, 1992, 22 Pa.B. 3914; amended March 20, 2020, effective March 21, 2020, 50 Pa.B. 1652. Immediately preceding text appears at serial page (349288).

Cross References

   This section cited in 52 Pa. Code §  69.262 (relating to definitions); 52 Pa. Code §  69.263 (relating to CAP development); and 52 Pa. Code §  69.267 (relating to alternative program designs).

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