| (1) within 60 days after a sufficient application was
filed, if no hearing is requested within 30 days of the filing of
the application; or
(2) within 120 days after a sufficient application
was filed, if a hearing is requested within 30 days of the filing
of the application. If a hearing is requested, the hearing will be
held no earlier than the first working day after the 45th day after
a sufficient application was filed.
(g) Exclusion from fuel factor. Costs that are recovered
through a PCRF must be excluded in calculating the utility's fixed
fuel factor as defined in §25.237 of this title (relating to
Fuel Factors).
(h) PCRF formula.
(1) The PCRF for each rate class must be calculated
using the following formula:
Attached Graphic
(2) Where the cost year used in setting a PCRF includes
a change in base rates due to a comprehensive base-rate proceeding,
parameters in the PCRF formula that refer to values from the utility's
last comprehensive base-rate proceeding must be calculated by prorating
the values from the relevant base rate-proceedings across the cost-year.
(i) True-up. After establishment of an initial PCRF,
a subsequent PCRF cost year is expected to contain portions of two
different PCRF rate years. Therefore, for purposes of calculating
class over- or under-recoveries for use in a proceeding to adjust
the PCRF, previous PCRF revenue requirements from PCRF rate years
in effect during the cost year must be prorated across the cost year.
For each rate class, the difference between the prorated cost-year
PCRF revenue requirement that previous PCRFs were set to recover from
that class and the actual cost-year PCRF revenues recovered from that
class, with interest on the balance calculated at the rate established
annually by the commission pursuant to §25.28(c) and (d) of this
title (relating to Bill Payment and Adjustments), must be credited
or charged to that class when calculating the adjusted PCRF. In the
event that a PCRF rider is terminated, any over- or under-recovery
amounts, with interest applied, must be included in a separate rider.
(j) Reconciliation of PCRF expenses.
(1) The reasonableness and necessity of expenses recovered
through the PCRF must be reviewed, and such costs and corresponding
PCRF revenues must be reconciled, as part of any proceeding initiated
under §25.236(b) of this title. Upon motion and showing of good
cause, a PCRF reconciliation proceeding may be severed from or consolidated
with other proceedings.
(2) In a proceeding in which PCRF costs are being reconciled,
the electric utility has the burden of showing that:
(A) its expenses recovered through the PCRF during
the reconciliation period were reasonable and necessary expenses incurred
to provide reliable electric service to retail customers; and
(B) it has properly accounted for the amount of purchased
power capacity-related revenues collected pursuant to the PCRF and
corresponding to costs reviewed during the reconciliation period.
(3) Any refunds or surcharges resulting from a PCRF
reconciliation, with interest applied, must, in the annual PCRF proceeding
immediately subsequent to the filing of the final order in the reconciliation
proceeding, be incorporated into the true-up balances described in
subsection (i) of this section. In the event that no PCRF rider is
in effect subsequent to a PCRF reconciliation, such refunds or surcharges,
with interest applied, must be included in a separate rider.
(k) Transition Issues. For a utility subject to a commission
order to transition to retail competition as of the effective date
of this section, the utility's existing power cost recovery factor
in its tariff approved under the prior rule continues to be effective
until the effective date of new unbundled retail delivery tariffs
for the utility, at which time the power cost recovery factor must
be terminated. Any over- or under-recovery amounts, with interest
applied, must be included in a separate rider to the utility's retail
delivery tariffs to be established in the proceeding that approves
such tariffs and must be credited or charged to customers as appropriate.
The utility must file monthly reports with the commission showing
all such amounts until no remaining amounts remain to be credited
or charged, at which time the utility must file a final report with
the commission.
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