reasonable and prudent costs incurred in the provision or management of [an EE&C] plan.” 66 Pa. C.S. § 2806.1(k). The Act states: The plan shall include a proposed cost-recovery tariff mechanism, in accordance with Section 1307 (relating to sliding scale or rates; adjustments), to fund the energy efficiency and conservation measures and to ensure full and current recovery of the prudent and reasonable costs of the plan, including administrative costs, as approved by the commission. a. C.S. § 2806.1(b)(1)(i)(H). a. Separate Line Item on Customer’s Bill Positions of the Parties Duquesne has proposed five separate surcharges, which are proposed to be add-ons to its current distribution rates, to recover its budgeted EE&C costs of $78 million. Duquesne performed customer research and evaluation and found that customers preferred a simpler bill that was easy to understand. Based upon that preference, Duquesne proposes to roll the surcharges into existing distribution rates in lieu of establishing a separate line item on each bill. Duquesne MB at 13, 14; Duquesne Exh. WVP 9. The five surcharges are: (1) residential; (2) small and medium commercial; – (3) small and medium industrial with metered demand up to 300 kW; (4) large commercial with metered demand over 300 kW; and (5) large industrial with metered demand over 300 kW. Duquesne asserts that this segmentation of C&I customers is appropriate because it aligns programs and program costs with current rate structure. Duquesne St. No. 4 at 5. C&I program costs are assigned based on program description (e.g. Office Buildings Large). Common program costs of the C&I classes are allocated – based upon projected savings. Duquesne St. No. 4 at 5.
reasonable and prudent costs incurred in the provision or management of [an EE&C] plan.” 66 Pa. C.S. § 2806.1(k). The Act states: The plan shall include a proposed cost-recovery tariff mechanism, in accordance with Section 1307 (relating to sliding scale or rates; adjustments), to fund the energy efficiency and conservation measures and to ensure full and current recovery of the prudent and reasonable costs of the plan, including administrative costs, as approved by the commission. a. C.S. § 2806.1(b)(1)(i)(H). a. Separate Line Item on Customer’s Bill Positions of the Parties Duquesne has proposed five separate surcharges, which are proposed to be add-ons to its current distribution rates, to recover its budgeted EE&C costs of $78 million. Duquesne performed customer research and evaluation and found that customers preferred a simpler bill that was easy to understand. Based upon that preference, Duquesne proposes to roll the surcharges into existing distribution rates in lieu of establishing a separate line item on each bill. Duquesne MB at 13, 14; Duquesne Exh. WVP – 9. The five surcharges are: (1) residential; (2) small and medium commercial; (3) small and medium industrial with metered demand up to 300 kW; (4) large commercial with metered demand over 300 kW; and (5) large industrial with metered demand over 300 kW. Duquesne asserts that this segmentation of C&I customers is appropriate because it aligns programs and program costs with current rate structure. Duquesne St. No. 4 at 5. C&I program costs are assigned based on program description (e.g. Office Buildings – Large). Common program costs of the C&I classes are allocated based upon projected savings. Duquesne St. No. 4 at 5.
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