§ 56-235.2. All rates, tolls, etc., to be just and reasonable tojurisdictional customers; findings and conclusions to be set forth;alternative forms of regulation for electric companies.
A. Any rate, toll, charge or schedule of any public utility operating in thisCommonwealth shall be considered to be just and reasonable only if: (1) thepublic utility has demonstrated that such rates, tolls, charges or schedulesin the aggregate provide revenues not in excess of the aggregate actual costsincurred by the public utility in serving customers within the jurisdictionof the Commission, including such normalization for nonrecurring costs andannualized adjustments for future costs as the Commission finds reasonablycan be predicted to occur during the rate year, and a fair return on thepublic utility's rate base used to serve those jurisdictional customers,which return shall be calculated in accordance with § 56-585.1 for utilitiessubject to such section; (1a) the investor-owned public electric utility hasdemonstrated that no part of such rates, tolls, charges or schedules includescosts for advertisement, except for advertisements either required by law orrule or regulation, or for advertisements which solely promote the publicinterest, conservation or more efficient use of energy; and (2) the publicutility has demonstrated that such rates, tolls, charges or schedules containreasonable classifications of customers. Notwithstanding § 56-234, theCommission may approve, either in the context of or apart from a rateproceeding after notice to all affected parties and hearing, special rates,contracts or incentives to individual customers or classes of customers whereit finds such measures are in the public interest. Such special charges shallnot be limited by the provisions of § 56-235.4. In determining costs ofservice, the Commission may use the test year method of estimating revenueneeds. In any Commission order establishing a fair and reasonable rate ofreturn for an investor-owned gas, telephone or electric public utility, theCommission shall set forth the findings of fact and conclusions of law uponwhich such order is based.
For ratemaking purposes, the Commission shall determine the federal and stateincome tax costs for investor-owned water, gas, or electric utility that ispart of a publicly-traded, consolidated group as follows: (i) such utility'sapportioned state income tax costs shall be calculated according to theapplicable statutory rate, as if the utility had not filed a consolidatedreturn with its affiliates, and (ii) such utility's federal income tax costsshall be calculated according to the applicable federal income tax rate andshall exclude any consolidated tax liability or benefit adjustmentsoriginating from any taxable income or loss of its affiliates.
B. The Commission shall, before approving special rates, contracts,incentives or other alternative regulatory plans under subsection A, ensurethat such action (i) protects the public interest, (ii) will not unreasonablyprejudice or disadvantage any customer or class of customers, and (iii) willnot jeopardize the continuation of reliable electric service.
C. After notice and public hearing, the Commission shall issue guidelines forspecial rates adopted pursuant to subsection A that will ensure that othercustomers are not caused to bear increased rates as a result of such specialrates.
(1977, c. 336; 1984, c. 312; 1996, c. 156; 2007, cc. 537, 888, 933.)
§ 56-235.2. All rates, tolls, etc., to be just and reasonable tojurisdictional customers; findings and conclusions to be set forth;alternative forms of regulation for electric companies.
A. Any rate, toll, charge or schedule of any public utility operating in thisCommonwealth shall be considered to be just and reasonable only if: (1) thepublic utility has demonstrated that such rates, tolls, charges or schedulesin the aggregate provide revenues not in excess of the aggregate actual costsincurred by the public utility in serving customers within the jurisdictionof the Commission, including such normalization for nonrecurring costs andannualized adjustments for future costs as the Commission finds reasonablycan be predicted to occur during the rate year, and a fair return on thepublic utility's rate base used to serve those jurisdictional customers,which return shall be calculated in accordance with § 56-585.1 for utilitiessubject to such section; (1a) the investor-owned public electric utility hasdemonstrated that no part of such rates, tolls, charges or schedules includescosts for advertisement, except for advertisements either required by law orrule or regulation, or for advertisements which solely promote the publicinterest, conservation or more efficient use of energy; and (2) the publicutility has demonstrated that such rates, tolls, charges or schedules containreasonable classifications of customers. Notwithstanding § 56-234, theCommission may approve, either in the context of or apart from a rateproceeding after notice to all affected parties and hearing, special rates,contracts or incentives to individual customers or classes of customers whereit finds such measures are in the public interest. Such special charges shallnot be limited by the provisions of § 56-235.4. In determining costs ofservice, the Commission may use the test year method of estimating revenueneeds. In any Commission order establishing a fair and reasonable rate ofreturn for an investor-owned gas, telephone or electric public utility, theCommission shall set forth the findings of fact and conclusions of law uponwhich such order is based.
For ratemaking purposes, the Commission shall determine the federal and stateincome tax costs for investor-owned water, gas, or electric utility that ispart of a publicly-traded, consolidated group as follows: (i) such utility'sapportioned state income tax costs shall be calculated according to theapplicable statutory rate, as if the utility had not filed a consolidatedreturn with its affiliates, and (ii) such utility's federal income tax costsshall be calculated according to the applicable federal income tax rate andshall exclude any consolidated tax liability or benefit adjustmentsoriginating from any taxable income or loss of its affiliates.
B. The Commission shall, before approving special rates, contracts,incentives or other alternative regulatory plans under subsection A, ensurethat such action (i) protects the public interest, (ii) will not unreasonablyprejudice or disadvantage any customer or class of customers, and (iii) willnot jeopardize the continuation of reliable electric service.
C. After notice and public hearing, the Commission shall issue guidelines forspecial rates adopted pursuant to subsection A that will ensure that othercustomers are not caused to bear increased rates as a result of such specialrates.
(1977, c. 336; 1984, c. 312; 1996, c. 156; 2007, cc. 537, 888, 933.)
§ 56-235.2. All rates, tolls, etc., to be just and reasonable tojurisdictional customers; findings and conclusions to be set forth;alternative forms of regulation for electric companies.
A. Any rate, toll, charge or schedule of any public utility operating in thisCommonwealth shall be considered to be just and reasonable only if: (1) thepublic utility has demonstrated that such rates, tolls, charges or schedulesin the aggregate provide revenues not in excess of the aggregate actual costsincurred by the public utility in serving customers within the jurisdictionof the Commission, including such normalization for nonrecurring costs andannualized adjustments for future costs as the Commission finds reasonablycan be predicted to occur during the rate year, and a fair return on thepublic utility's rate base used to serve those jurisdictional customers,which return shall be calculated in accordance with § 56-585.1 for utilitiessubject to such section; (1a) the investor-owned public electric utility hasdemonstrated that no part of such rates, tolls, charges or schedules includescosts for advertisement, except for advertisements either required by law orrule or regulation, or for advertisements which solely promote the publicinterest, conservation or more efficient use of energy; and (2) the publicutility has demonstrated that such rates, tolls, charges or schedules containreasonable classifications of customers. Notwithstanding § 56-234, theCommission may approve, either in the context of or apart from a rateproceeding after notice to all affected parties and hearing, special rates,contracts or incentives to individual customers or classes of customers whereit finds such measures are in the public interest. Such special charges shallnot be limited by the provisions of § 56-235.4. In determining costs ofservice, the Commission may use the test year method of estimating revenueneeds. In any Commission order establishing a fair and reasonable rate ofreturn for an investor-owned gas, telephone or electric public utility, theCommission shall set forth the findings of fact and conclusions of law uponwhich such order is based.
For ratemaking purposes, the Commission shall determine the federal and stateincome tax costs for investor-owned water, gas, or electric utility that ispart of a publicly-traded, consolidated group as follows: (i) such utility'sapportioned state income tax costs shall be calculated according to theapplicable statutory rate, as if the utility had not filed a consolidatedreturn with its affiliates, and (ii) such utility's federal income tax costsshall be calculated according to the applicable federal income tax rate andshall exclude any consolidated tax liability or benefit adjustmentsoriginating from any taxable income or loss of its affiliates.
B. The Commission shall, before approving special rates, contracts,incentives or other alternative regulatory plans under subsection A, ensurethat such action (i) protects the public interest, (ii) will not unreasonablyprejudice or disadvantage any customer or class of customers, and (iii) willnot jeopardize the continuation of reliable electric service.
C. After notice and public hearing, the Commission shall issue guidelines forspecial rates adopted pursuant to subsection A that will ensure that othercustomers are not caused to bear increased rates as a result of such specialrates.
(1977, c. 336; 1984, c. 312; 1996, c. 156; 2007, cc. 537, 888, 933.)
