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Enron Mail |
Phase 2 testimony is due May 26, 2000 and addresses rate design issues
Rate design and ratemaking proposals submitted in testimony should follow the principles: 1. provide for fair cost allocation among customers; 2. allow the utility distribution companies (UDCs) adequate cost recovery while minimizing costs to consumers; 3. facilitate customer-side distributed generation deployment; and send proper price signals to prospective purchasers of distributed generation. Testimony should identify how current rate structures and those proposed in other Commission proceedings may prevent or hinder deployment of distributed generation, and how rate structures could be modified to facilitate distributed generation deployment. Parties should discuss the interrelationship among rate design issues: stranded costs, bypass, demand, customer and grid charges, standby rates, and PBR and flexible pricing mechanisms. Additionally, rate design issues related to interconnection costs should be addressed. Issues include cost recovery and allocation, such as who should pay for costs to interconnect to the distribution system and for interconnection studies, or if costs incurred by the first distributed generation customers on a specific circuit or feeder should be shared by subsequent distributed generation customers connecting to the same facilities. The attachment (Attachment A) provides 36 questions and a framework for the issues the Commission will consider in Phase 2 of this proceeding. See attached ruling for details.
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