Current through Register Vol. 54, No. 24, June 15, 2024
Section 69.3303 - Illustration of possible distribution ratemaking and rate design options for the energy industry(a) In a base rate proceeding, energy utilities may propose, among others, alternative rate designs and methodologies identified in this subsection that will be subject to Commission approval or modification. Identification of these proposals is for illustration only. It does not propose the adoption, nor preclude the consideration, of any particular design or methodology, and it does not signal, nor should it be interpreted as signaling, any predilection by the Commission for one proposal over another or any predetermination of approval by the Commission of one proposal over another.(b) A natural gas distribution company may propose a weather normalization adjustment or revenue per customer ratemaking proposal, or both. Any proposal under this subsection must: (1) Address consumer protection issues including revenue adjustment dead-bands, seasonal adjustment limitations, adjustment timelines, and any just and reasonable cost of capital adjustments.(2) Describe which rate classes are subject to the ratemaking proposal.(c) An electric distribution company may propose critical peak pricing or similar demand-based programs that use average usage over critical peak periods as demand-based billing determinants. A critical peak pricing proposal should be composed of all of the following: (1) A fixed customer charge component reflecting metering, final line transformer and service drop cost recovery.(2) A critical peak volumetric price or average demand component, which reflects usage over the local or nodal substations, feeders and other related distribution system components during localized peak usage periods.(3) A volumetric on-peak, off-peak or other rate for recovery of other distribution costs.(d) Optional rate designs under this subsection may be applicable to certain customer rate classes or services or designed for specific geographic locations within a service territory where this focus better serves the goals of eliminating the need for future capital investments, maximizing system utilization or providing incentives for other Commission policies.Adopted by Pennsylvania Bulletin, Vol 48, No. 25. June 23, 2018, effective 6/23/2018