The Ohio Public Utilities Commission (PUC) has proposed regulations to allow electric utilities to use fuel-cost clauses to recover gains or losses from trading Clean Air Act emission allowances....
DSM Rate Surcharge Remanded in PA
The Pennsylvania Commonwealth Court has overturned and remanded parts of a ruling by the Pennsylvania Public Utility Commission (PUC) that allows electric companies to impose rate surcharges to recover costs associated with demand-side management (DSM) programs, including lost revenues and incentives for program performance. The court ruled that state law limits recovery of incentives or the costs of physical facilities to base rate proceedings. It asked the PUC to more fully address its authority to award lost revenues, methods of calculating lost revenues, and the effect of an overall revenue increase on recovery.
The court affirmed other parts of the PUC's ruling that permit utilities to recover DSM expenses through adjustment-clause surcharges or rate case balancing account mechanisms. It also rejected allegations that the new recovery methods violate doctrines that prohibit retroactive or single-issue ratemaking as well as legal precedent regarding types of costs eligible for adjustment-clause recovery. Pennsylvania Industrial Energy Coalition v. Pennsylvania Public Utility Commission, Nos. 3104 C.D. 1993 and 907 C.D. 1994, Jan. 9, 1995 (Pa.Cmmw.Ct.).
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