(1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
INCLUDING, BUT NOT LIMITED TO, SECTIONS 2806.1(K)(2)
(RELATING TO ENERGY EFFICIENCY AND CONSERVATION PROGRAM) AND
2807(F)(4) (RELATING TO DUTIES OF ELECTRIC DISTRIBUTION
COMPANIES), THE COMMISSION MAY APPROVE AN APPLICATION BY A
UTILITY 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; OR
(V) RATES BASED ON A COMBINATION OF MORE THAN ONE OF
THE MECHANISMS IN SUBPARAGRAPHS (I), (II), (III) AND (IV)
OR OTHER RATEMAKING MECHANISMS AS PROVIDED UNDER THIS
CHAPTER.
(2) AN ALTERNATIVE RATE MECHANISM ESTABLISHED UNDER THIS
SECTION MAY INCLUDE RATES UNDER SECTION 1307 (RELATING TO
SLIDING SCALE OF RATES; ADJUSTMENTS) OR 1308 (RELATING TO
VOLUNTARY CHANGES IN RATES) AND MAY PROVIDE FOR RECOVERY OF
RETURNS ON AND RETURN OF CAPITAL INVESTMENTS OR, IN THE CASE
OF CITY NATURAL GAS DISTRIBUTION OPERATIONS, RECOVERY UNDER
THE CASH FLOW RATEMAKING METHOD.
(3) CAPITAL COSTS AND EXPENSES RECOVERED THROUGH
ALTERNATIVE RATES AND RATE MECHANISMS SHALL BE REASONABLE AND
PRUDENTLY INCURRED AND USED AND USEFUL IN PROVIDING SERVICE .
NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO PROHIBIT OR
LIMIT THE RECOVERY OF REVENUE, AS APPROPRIATE, UNDER A
COMMISSION-APPROVED PERFORMANCE-BASED RATE PLAN.
(C ) CUSTOMER NOTICE.--
20170HB1782PN3324 - 5 -
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