(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 , modify or reject 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) A utility that files an application in a base rate
proceeding to establish alternative rates and rate mechanisms
must demonstrate that it has utilized an alternative rates
and rate mechanisms design process which allowed for review
and comment from all interested stakeholders. An alternative
rates and rate mechanisms design process shall include the
following:
(i) Identification of the regulatory policy goals to
be achieved by the alternative rates and rate mechanisms,
including customer focus, operational effectiveness,
public policy responsiveness and financial performance.
(ii) Identification of the desired regulatory
outcomes, including how the alternative rates and rate
mechanisms will affect ratepayers.
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