PPL responded that the OSBA overstated the meter cost discrepancy between the GS-1 and GS-3 meters. According to PPL, 95% of the GS-3 meters are within the cost range of the GS-1 meters, and only 1,491 of the 27,363 GS-3 meters cost $399. In addition, PPL asserted that if the $399 meter cost for the largest customers was removed from the cost analysis, the remaining Small C&I customers would pay only $2 less than they would pay if all meter costs are combined into one charge for all Small C&I customers. According to PPL, this $2 difference would produce a de minimis rate impact over the fifteen-year depreciable life of the meter. PPL also noted that splitting its Small C&I rate class into separate rate schedules for SMR purposes would be inconsistent with the treatment of its other Section 1307 automatic Company’s adjustment clauses. PPL M.B. at 35-36; PPL R.B. at 31. b. Recommendation ALJ’s The ALJ found the proposal to separately charge GS-1 and GS-3 OSBA’s customers due to differences in meter costs between the two rate schedules to be “based on a solid I.D. at 47. The ALJ further found approach assumption.” PPL’s “dismissive towards this common sense to be inappropriate. Nevertheless, the ALJ Id. proposal” determined that there was insufficient evidence in this proceeding to support a deviation from standard practice of calculating separate charges for only three rate classes in PPL’s its Section 1307 automatic adjustment clauses, without splitting these classes into smaller segments based on rate schedule. at 47-48. Id. c. Exceptions and Replies No Exceptions were filed on this issue.
PPL responded that the OSBA overstated the meter cost discrepancy between the GS-1 and GS-3 meters. According to PPL, 95% of the GS-3 meters are within the cost range of the GS-1 meters, and only 1,491 of the 27,363 GS-3 meters cost $399. In addition, PPL asserted that if the $399 meter cost for the largest customers was removed from the cost analysis, the remaining Small C&I customers would pay only $2 less than they would pay if all meter costs are combined into one charge for all Small C&I customers. According to PPL, this $2 difference would produce a de minimis rate impact over the fifteen-year depreciable life of the meter. PPL also noted that splitting its Small C&I rate class into separate rate schedules for SMR purposes would be inconsistent with the Company’s treatment of its other Section 1307 automatic adjustment clauses. PPL M.B. at 35-36; PPL R.B. at 31. b. ALJ’s Recommendation The ALJ found the OSBA’s proposal to separately charge GS-1 and GS-3 customers due to differences in meter costs between the two rate schedules to be “based on a solid assumption.” I.D. at 47. The ALJ further found PPL’s “dismissive approach towards this common sense proposal” to be inappropriate. Id. Nevertheless, the ALJ determined that there was insufficient evidence in this proceeding to support a deviation from PPL’s standard practice of calculating separate charges for only three rate classes in its Section 1307 automatic adjustment clauses, without splitting these classes into smaller segments based on rate schedule. Id. at 47-48. c. Exceptions and Replies No Exceptions were filed on this issue.
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