Requirement for a Baseline Tier for Default Residential Rate The Commission is required to set a baseline quantity of electricity that represents the amount “necessary to supply a significant portion of the reasonable energy needs of the average residential customer.” The statute defines “baseline quantity” as “a quantity of electricity or gas allocated by the commission for residential customers based on from 50 to 60% of average residential consumption of these commodities. In establishing the baseline quantities, the commission shall take into account climatic and seasonal variations in consumption and the availability of gas service.” Section 739.9(c) requires that the Commission “require each electrical corporation to offer default rates to residential customers with at least two usage tiers.” The first tier shall include electricity usage of no less than the baseline quantity established pursuant to [Section 739(d)(1)]. There is a clear exception for Section 745(c) (default TOU) rates. Section 739(d)(1) requires the Commission to “require that every electrical and gas corporation file a schedule of rates and charges providing baseline rates. The baseline rates shall apply to the first or lowest block of an increasing block rate structure which shall be the baseline quantity. In establishing these rates, the commission shall avoid excessive rate increases of residential customers, and shall establish an appropriate gradual differential between the rates for the respective blocks of usage.” Parties raised several questions in connection with this requirement for a baseline tier. First, some parties suggest that a baseline tier is required for default TOU. The clear language of Section 739.9(c), however, has an exception for the TOU
Requirement for a Baseline Tier for Default Residential Rate The Commission is required to set a baseline quantity of electricity that represents the amount “necessary to supply a significant portion of the reasonable energy needs of the average residential customer.” The statute defines “baseline quantity” as “a quantity of electricity or gas allocated by the commission for residential customers based on from 50 to 60% of average residential consumption of these commodities. In establishing the baseline quantities, the commission shall take into account climatic and seasonal variations in consumption and the availability of gas service.” Section 739.9(c) requires that the Commission “require each electrical corporation to offer default rates to residential customers with at least two usage tiers.” The first tier shall include electricity usage of no less than the baseline quantity established pursuant to [Section 739(d)(1)]. There is a clear exception for Section 745(c) (default TOU) rates. Section 739(d)(1) requires the Commission to “require that every electrical and gas corporation file a schedule of rates and charges providing baseline rates. The baseline rates shall apply to the first or lowest block of an increasing block rate structure which shall be the baseline quantity. In establishing these rates, the commission shall avoid excessive rate increases of residential customers, and shall establish an appropriate gradual differential between the rates for the respective blocks of usage.” Parties raised several questions in connection with this requirement for a baseline tier. First, some parties suggest that a baseline tier is required for default TOU. The clear language of Section 739.9(c), however, has an exception for the TOU