Pennsylvania Regulators Seek Alternative Ratemaking Proposals from Utilities
Robert Walton | Utility Dive
States are increasingly looking at new ways to set the prices that customers pay to utilities. Implementation of Pennsylvania’s Act 58 allows utilities to seek approval of alternative rates and mechanisms including decoupling, performance-based rates, formula rates, multiyear rate plans or a combination of these alternatives.
In the tentative implementation order issued on Thursday, regulators propose for utilities to bring alternative ratemaking proposals to the commission within the confines of a utility base rate case which “includes an in-depth examination of the utility’s financial status and operations.”
The PUC also said it interpreted the law to allow subsequent changes or adjustments to a previously approved alternative rate mechanism through a Section 1308 proceeding, relating to voluntary changes in rates…(Read the full story)