Is there some agreement on what the proposed revenue decoupling rate design might look like, if approved by the Commission?
Under the proposed revenue decoupling implemented through rate design, customers would be charged a fixed amount for the cost to deliver their electricity.The charge would no longer vary month to month depending on the amount of electricity used. Under the proposed rate design method, Delmarva would implement a cap mechanism to mitigate the impact of the new rate design on customers who would otherwise have a more significant increase in rates. This new design also reflects the fact that in order to prevent interruptions in service, delivery systems must be built to meet the highest levels of demand. It costs more to have a distribution system that is built to accommodate system reliability during peak periods in order to prevent interruptions in service than one designed to meet average usage.
Related Questions
- If a city denies a proposed rate increase and it is appealed to the Railroad Commission or district court, what expenses will the city and its ratepayers face?
- Can the Railroad Commission provide assistance to municipalities which are faced with a proposed natural gas rate increase?
- Do other utilities use similar rate design with a decoupling mechanism?
