§ 69.3302. Distribution rate considerations.
(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.
Source The provisions of this § 69.3302 adopted August 23, 2019, effective August 24, 2019, 49 Pa.B. 4819.
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