allocated to and recovered from customers and market
participants consistent with the use of the infrastructure.
(2) It is the policy of the Commonwealth that utility
ratemaking should encourage and sustain investment in natural
gas and electric distribution systems through appropriate
cost-recovery mechanisms to enhance the safety, security,
reliability or availability of natural gas and electric
infrastructure and be consistent with the efficient
consumption of energy and the deployment of distributed
energy resources.
(b) Alternative rate mechanisms.--
(1) Any provision of law to the contrary
notwithstanding, the commission may approve an application by
a natural gas distribution company as defined in section 2202
(relating to definitions) or electric distribution company as
defined in section 2803 (relating to definitions) in a base
rate proceeding to establish alternative rates and rate
mechanisms, including, but not limited to, the following
mechanisms:
(i) decoupling mechanisms;
(ii) performance-based rates;
(iii) formula rates;
(iv) multiyear rate plans;
(v) cost-recovery mechanisms and rates to support
and fully recover the allocated costs to deploy
infrastructure and distributed energy resources; or
(vi) rates based on a combination of more than one
of the mechanisms in subparagraphs (i), (ii), (iii), (iv)
and (v) or other ratemaking mechanisms as provided under
this chapter.
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