Pennsylvania To Investigate Alternative Utility Ratemaking Methods
January 12, 2016
The Pennsylvania Public Utility Commission (“PUC”) is seeking information on alternative utility ratemaking methods, such as revenue decoupling. Decoupling advocates suggest that decoupling removes possible disincentives for utilities to promote greater energy efficiency because utility revenues are no longer directly linked to the volume of electricity or gas sold.
All interested parties are welcome to submit written comments, which must be received no later than March 16, 2016. The PUC has identified a list of 22 issues of interest to guide the discussion. (The issue list is not intended to be exhaustive, and other issues can be discussed.) The list includes, but is not limited to:
- Whether revenue decoupling or other similar rate mechanisms encourage utilities to better implement energy efficiency and conservation programs;
- Whether such rate mechanisms are just and reasonable and in the public interest; and
- Whether the benefits of implementing such rate mechanisms outweigh any costs associated with implementing the rate mechanisms.
Because of the importance of such issues, in addition to written comments, all five Commissioners will be sitting “en banc” – as a full panel – in the March 3, 2016 hearing (in Harrisburg) regarding the issues listed in the bullet points (above) from participants (selected by the PUC) to present testimony and answer questions from a diverse set of perspectives. The hearing is open to the public and the PUC will also be video streaming the hearing (on its website) for those unable to attend in person.
The full issue list (which is in a Secretarial Letter dated December 31, 2015) and all documents related to the hearing, including prepared testimony and the final agenda for the en banc hearing, can be accessed by searching Docket Number M-2015-2518883 on the PUC’s website.
Please note that the PUC has also approved settlements submitted by PECO Energy Company and PPL Electric Utilities Corporation that require each of those utilities to host public collaboratives on decoupling in early 2016. These collaboratives will be separate from the comments submitted to the PUC.
If you have any questions about these proceedings, please contact Dan Clearfield at (717) 237.7173, dclearfield@eckertseamans.com, or Carl Shultz at (717) 255-3742; cshultz@eckertseamans.com.
Share This Post
Authors
