| (a) Application. This section applies to a transmission
and distribution utility (TDU) that provides retail distribution service.
(b) Definitions. The following terms, when used in
this section, have the following meanings, unless the context indicates
otherwise.
(1) Demand ratchet--A provision in a TDU's tariff for
retail distribution service that allows a customer to be billed based
on the greater of the peak demand by that customer in the current
month or some fixed percentage of the peak demand for that customer
during previous months.
(2) Nonresidential secondary voltage service customer--A
nonresidential customer that is billed demand charges for retail distribution
service and that receives retail distribution service at secondary
voltage through one point of delivery and that is measured using one
meter.
(c) Rates. In a proceeding in which base rates are
set for nonresidential secondary voltage service customers, the base
rates set for nonresidential secondary voltage service customers shall
provide that these customers shall be billed on a kilowatt-hour (kWh),
kilowatt (kW), or kilovolt-amperes (kVA) basis, and that if a demand
ratchet is utilized, the demand ratchet shall not apply to a nonresidential
secondary voltage service customer that has an annual load factor
less than or equal to 25 percent. This subsection does not require
the use of demand ratchets for any customers. This subsection shall
not be applied in a manner that would shift costs to other customer
classes.
(d) Annual Verification. Upon the implementation of
base rates consistent with subsection (c) of this section, a TDU shall
determine annually for each of its nonresidential secondary service
customers whether to apply a demand ratchet. In addition, by January
15 of each year following the commission's final order in a proceeding
described by subsection (c) of this section, a TDU shall file an affidavit
certifying that it has accurately identified and billed nonresidential
secondary service customers who under subsection (c) of this section
cannot be charged a demand ratchet. In addition, the TDU shall attach
to the affidavit a thorough description of the procedures that it
uses to ensure that these customers are accurately identified and
billed.
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