Topic:"Rate Rider" in M04265

ATTACHMENT A This attachment outlines procedures by which the requirements of Availability Clause (1 ) and Special Condition (1) are to be satisfied. - (1) The customer shall apply in writing to take service under this rate, outlining the...

AI summary This document outlines procedures for customers to apply for service under a load retention rate, including economic and technical feasibility assessments, data confidentiality, and the determination of appropriate rates and terms by NSPI and the customer, with the option for UARB adjudication in case of disagreement.

rant Nova Scotia economy, and allow NSPI to provide more stable - 4 rates to other customers. - 5 To ensure that load retention rates are offered only in circumstances where they are justified, NSPI - 6 proposes that such rates be based on...

AI summary NSPI proposes a two-stage process to implement load retention rates that ensure fairness and confidentiality for customers. The process aims to satisfy the UARB's approval requirements while addressing customer concerns about data privacy.

Cancelling RATE DESIGNATION: 450 CLASS OF SERVICE: COMPETITIVE RATE - LARGE POWER AND LIGHTING SERVICE AREA: ALL MINNESOTA SERVICE AREA Avai.lability: To individual customers or to groups of customers within the Company's Large Power and L...

AI summary This section outlines the competitive rate designation for large power and lighting customers in Minnesota, specifying eligibility, terms, and conditions for offering such rates, including MPUC approval processes and cost recovery mechanisms.

8. Operation The company retains the right to require the customer to limit production of energy to an amount no greater than the customer's load at certain times as electrical operating conditions warrant.

AI summary The company has the right to require customers to limit energy production to their load during specific times based on electrical operating conditions.

AVAILABILITY Available for any Customer being served by the Company under Rate 6T, Rate 9T or Rate 9B when in the judgement of the Company: (a) it is economically feasible and practical for the customer to utilize an energy source other th...

AI summary This rider provides service availability under specific conditions for customers served by the Company under Rates 6T, 9T, and 9B. It is available when bypassing the Company's electric service is economically feasible or if a loss of load is imminent. Customers must provide affidavits and evidence of intent to bypass, and the rider is available until January 1, 2001, or until capacity reserve margins fall below acceptable levels.

CONTRACTS The customer shall enter into a contract in writing with the Company specifying the nature of the service to be supplied, the prices to be paid, the term of the contract and such other terms and conditions of service as are mutal...

AI summary The contract provisions outline a ten-year agreement between the customer and the Company, ensuring that revenues exceed incremental costs. Contracts must be submitted to the Illinois Commerce Commission for informational purposes and are treated as confidential. No more than twenty-five contracts may be active under this rider.

ELIGIBLE LOAD For a customer entering into Rider 16 Electric Contract Service, service hercunder shall be available only to existing load. A customer taking service under Rider 16 can make application for other applicable rates and riders...

AI summary This section outlines the eligibility criteria for customers entering into Rider 16 Electric Contract Service, specifying that service is available only to existing load and allowing customers to apply for other applicable rates and riders that align with the incremental cost provisions.

CHANGE IN RA TES AND CHARGES: Unless specifically stated within the Contract, energy sales under this Service Classification shall be subject to the same riders as the Customer's controlling rate schedule. These riders include, Rider l (Fu...

AI summary The document outlines that energy sales under the Service Classification are subject to specific rate riders, including Fuel Rate, Purchased Capacity Surcharge, Conservation Surcharge, Emergency Generation, and Curtailable Service. Future PSC-approved non-base rate surcharges will also apply.

Metering: If service under this rate schedule requires metering facilities in addition to, or in substitution of, the standard facilities that the Company would normally install to provide service, the Company will provide the additional o...

AI summary The text discusses the provision of additional or substitute metering facilities under a rate schedule, specifying that customers will incur an additional monthly charge as outlined in Section 13 of the Terms and Conditions.

AVAILABILITY. Subject to the limitation set forth below on the total number of contracts in effect hereunder at any one time, this rate is available to any non-residential customer taking service from the Company under Rate 6L, Large Gener...

AI summary This rate is available to non-residential customers under Rate 6L, Large General Service, provided that bypassing the Company's electric service is economically feasible and practical. However, service under this rate is not available for energy previously served under Rider 27 unless the displaced generation facilities are no longer capable of providing that energy.

and electrical requirement.s that makes it well-suited to the installation of a cogcneration facility. In addition, Consumers says that Upjahn has the capability to move pI"od.uction to other states. Therefore, Consumers asserts, it undert...

AI summary Consumers has signed a 10-year special contract with Upjohn, which is exempt from the power supply cost recovery clause. The contract includes rate escalations based on the producer price index, with a floor and cap. Consumers argues that the agreement benefits both parties and supports economic development and system stability.

Billing at the Load Retention Rate 171 For each consumption period, the load Retention Rate, which is applied to the whole or to any eligible portion of a customer's bill, is applied according to the following calculations: - a) a bill is...

AI summary The load Retention Rate is applied to a customer's bill based on two calculation methods, with the higher value determining the final bill. The rate applies to the entire or a portion of the load, determined by agreement between the customer and Hydro-Quebec, considering factors like voltage discounts and transformation losses.

TO WHOM AVAILABLE l This is an experimental Rider available to Customers who intend on installing on- site generation technology as an energy source, and who agree to postpone the installation and receive service under any of the following...

AI summary This experimental Rider is available to customers planning to install on-site generation technology, subject to specific criteria including minimum capacity, project viability, and annual usage requirements. Applications must be submitted by December 31, 1995.

TERMS OF WRITTEN CONTRACT Upon approval by the Commission of the written contract between the Customer and the Company governing the application of this Rider GA to the electrical load of the Customer, the specific. terms of ~uc:h written...

AI summary This section outlines the terms of a written contract between a Customer and the Company, which governs the application of Rider GA to the Customer's electrical load. Upon Commission approval, the terms of this contract are incorporated into Rider GA.

SUB-RIDER DESIGNATION Any written contract submitted by the Company for approval under this Rider GA and app(oved by the C.ommjssi,oD _ ~tia!I. be ~I w~_h the Commission as a separate su.b-rider signated Rider GA - (insert sequential numbe...

AI summary The text outlines the process for submitting written contracts for approval under Rider GA, requiring them to be submitted as a separate sub-rider designated with a sequential number.

PURPOSE This rider provides for an incentive rate billing option to existing commercial and industrial customers and new industrial customers to encourage economic development in the Company's service area.

AI summary This rider introduces an incentive rate billing option for existing and new industrial customers to encourage economic development within the Company's service area.

APPLICATION PROVISIONS This rider is applicable to existing commercial and industrial customers and new industrial customers served under Rate Schedules GS-3, LP-4, LP-5, and PR-1(R) with at least a one month Billing KW of 500 KW or greate...

AI summary This rider applies to commercial and industrial customers under specific rate schedules, requiring existing customers to sign contracts committing to increase production or expand physical plant. It is applied to baseline load but not to incremental or decremental usage under Rate Schedule PR-1(R).

DEFINITIONS 1. Base Period The base period is normally the twelve months ended December 31, 1986. If twelve months of billing history are unavailable for the period ended December 31, 1986, the base period is the first full twelve months o...

AI summary The document defines key terms related to billing and service locations, including the base period, sales tax exemption certificate, service location, new service location, and qualifying service location. It also outlines billing adjustments for existing customers based on usage compared to the base period.

The provisions of this rider are available to customers who became eligible on or before December 31, 1989. The billing adjustment under this rider will continue through December 31, 2009. All provisions of this rider wil! terminate on Jan...

AI summary This rider provides rate reductions applicable to base rate charges before the State Tax Adjustment Surcharge, available to customers eligible by December 31, 1989, and remains in effect through December 31, 2009, terminating on January 1, 2010.

GENERAL CONDITIONS (Continued) Minimum bills under the applicable rate schedule are not reduced by the application of this rider. This rider applies only once per customer. Eligible customers who elect to receive billing adjustments under...

AI summary This rider establishes conditions for billing adjustments, limiting its application to once per customer and excluding those with on-site generation. It requires an electric service contract and mentions monitoring by the Pennsylvania Public Utility Commission. The rider was issued in 1999 and relates to a supplement by the Pennsylvania PUC.

COMPETITIVE RATE RIDER (R) (C) New applications for service under this Rider are limited to customers of the Company who have not had the opportunity to purchase capacity and energy from their choice of electric generation supplier pursuan...

AI summary The Competitive Rate Rider (R) (C) restricts new applications to customers who have not yet enrolled with an alternative electric generation supplier, as outlined in the Commission's orders at Docket Nos. M-00960890F.0014 and M-00960890F.0015. No new applications will be accepted after August 27, 1998.

PURPOSE This rider provides competitive rates to existing and new commercial and industrial customers served under Rate Schedules LP-5, LP-6, and IS-T who can demonstrate that they have a viable competitive alternative to purchasing electr...

AI summary This rate rider offers competitive rates to commercial and industrial customers who have viable alternatives to purchasing electric service from the Company and intend to select those alternatives, potentially to the detriment of the Company and its ratepayers.

APPLICATION PROVISIONS This rider is applicable to existing and new commercial and industrial customers with a monthly maximum demand of 5,000 KW or greater year-round who are served, or who qualify to be served, under Rate Schedules LP-5,...

AI summary This rider applies to commercial and industrial customers with a monthly maximum demand of 5,000 KW or greater, served under specific rate schedules. The company will not enter new interruptible service contracts if the total interruptible power exceeds 500 MW.

GENERAL CONDITIONS - 1. The customer must demonstrate that it has a viable competitive alternative to service under Rate Schedule LP-5, LP-6, or IS-T to be eligible for this rider. The customer must provide written information, satisfactor...

AI summary The general conditions outline the process for customers seeking competitive rates under Rate Schedule LP-5, LP-6, or IS-T. Customers must prove they have a viable alternative, provide documentation, and demonstrate financial capability. The company retains sole discretion in determining appropriateness and setting rates.

GENERAL CONDITIONS (Continued) - 6. To promote energy conservation and efficiency, the Company may require that the customer implement energy efficiency measures prescribed by the Company. - 7. The State Tax Adjustment Surcharge is applica...

AI summary The document outlines general conditions for a specific rider, including requirements for energy efficiency measures, inapplicability of certain tariff provisions, exceptions for on-site generation, and the necessity of an electric service contract with confidentiality requirements.

ECONOMIC EFFICIENCY RIDER (EER) AVAILABILITY. To any High Tension Power (Rate HT) or General Service (Rate GS) customer that satisfies all of the following eligibility requirements: - 1. The customer must agree to purchase at least 5,000 k...

AI summary The Economic Efficiency Rider (EER) provides a rate option for High Tension Power (Rate HT) or General Service (Rate GS) customers who agree to purchase a minimum of 5,000 kW of On-Peak demand and demonstrate the viability of a competitive alternative to service. Customers must provide extensive documentation, including engineering studies and lifecycle evaluations, to prove the feasibility of their alternative.

GENERAL FINDINGS The general findings of the survey illustrate the extent to which economic development utility rates or other similar vehicles are utilized among the states to compete for business customers. As competition continues in th...

AI summary The document discusses how states use innovative utility rates, such as economic development and load retention rates, to attract and retain business customers. It highlights that 39 out of 45 states offer such rates, often to stimulate business activity and reduce the frequency of rate cases. Midwestern states like Illinois and Michigan are noted for offering these rates, while Wisconsin does not offer them to electric customers.

sibility shared between stockholders and ratepayers 3 No decision made until a rate case 26 No Response 15 Other 1 8. Are Impacts of such rates tracked? (Illinois - \ No) Yes 21 No 15 No Response 15 9. Please identify Commission considerat...

AI summary The document discusses load retention rates, including considerations such as retaining existing jobs, maintaining utilization of utility plant, and retaining existing industry. Responses to questions about decision-making processes and tracking impacts are mixed, with some responses indicating no decision was made until a rate case and others indicating impacts are tracked.

SECTION C. Economic Development Related Rates For purposes of this report, economic development related rates are those that provide an economic motivation to a customer in exchange for the alteration of the customer's load pattern (not ne...

AI summary This section discusses economic development related rates, focusing on interruptible rates and off-peak load rates. Interruptible rates allow customers to accept service interruptions in exchange for lower rates, benefiting both customers and utilities by reducing costs. Off-peak rates encourage energy use during non-peak times, lowering customer costs. Illinois is highlighted as one of 37 states allowing such rates.

Introduction The Financial Reporting and Analysis (FIR) Module is designed to combine results from the Load Forecast Adjustment (LF A) Module, the Generation and Fuel (GAF) Module, and the Capital Expenditure and Recovery (CER) Module, wit...

AI summary The Financial Reporting and Analysis (FIR) Module integrates data from multiple modules to generate financial reports and analyze the impact of various factors on company financial operations, including construction programs, capital market conditions, tax law changes, and rate adjustments.

Rate Change Logic After the desired financial condition is reached, the FIR Module recreates the Income Statement, Balance Sheet, and Statement of Cash Flows to account for changes in interest expense, dividends, etc. Expenses and rate bas...

AI summary The FIR Module iteratively adjusts revenues to meet desired financial targets such as rate of return on equity, total capital, or jurisdictional rate base. This process recalculates financial statements and ensures liquidity by adjusting revenues until the desired cash and rate of return levels are achieved, resulting in an initial rate change request for regulatory approval.

RESPONSE TO INFORMATION REQUEST TO: IRVING OIL LIMITED FROM: NSPI Question 5: Reference: Proposed load retention rate special conditions (1) and (2). - a) Please explain why NSPI is not seeking to set a rate which is equivalent for all cus...

AI summary NSPI explains that the proposed load retention rate is equivalent for all customers meeting availability conditions, but the price may vary based on individual customer circumstances. The goal is to maintain customer load by offering a price that makes each customer indifferent to alternate supply options.

RESPONSE TO INFORMATION REQUEST TO: CAPE BRETON REGIONAL MUNICIPALITY FROM: NSPI Question IR-2: In making this application before the Board, what assumptions are used by NSPI regarding future demand for each form of energy referred to abov...

AI summary NSPI responds to a question about assumptions regarding future energy demand in its rate application. It clarifies that no assumptions about future demand are required for the application. The proceeding relates to the Public Utilities Act and an application for a Load Retention Rate.

h sets rates equal to marginal costs during off-peak 22 periods and collects the remaining revenue requirement by increasing on-peak 23 2"Innovative Rates-Interim Report IR-R2," March 13, 1995, p. 6. I charges. While this approach provides...

AI summary The text discusses the challenges of implementing Time-of-Use (TOU) rate structures, particularly the impact of high on-peak rates and potential solutions like block rate methods. It highlights concerns about customer charges and suggests alternatives such as parallel billing and block pricing to better reconcile revenue requirements.

1 Domestic Declining Block Rates 2 3 With regard to declining block rates for domestic customers, my previous concerns 4 related to information, or lack thereof, about the cost of serving large- versus small s use customers. Declining bloc...

AI summary The text discusses concerns about the efficiency of declining block rates for domestic customers in Nova Scotia, noting that they are efficient when large-use customers consume more energy during off-peak periods but not when usage is weighted toward on-peak periods. The analysis found no additional support for these rates and concluded that the proposal remains unchanged.

11 Elasticity Estimates 12 13 Estimates of price elasticity are useful for predicting how customers will respond to 14 rate changes. Most utilities include some type of price coefficient in their load 15 forecasting models. These coefficie...

AI summary Price elasticity estimates help predict customer responses to rate changes. While industry studies show measurable responses to TOU rates, results vary and cannot be generalized. Dr. Globerman notes that precise guidance is limited, but the evidence suggests TOU rates generally lead to significant response, justifying additional metering costs. Lost revenue recovery mechanisms are recommended for innovative rates due to uncertainty in customer participation and shifting behavior.

VII. SUMMARY 17 18 In summary, I continue to endorse TO U rates for reasons of efficiency and fairness. 19 While I expect TOU rates will result in either load shifting or load reduction, neither 20 is required for my support. If loads did...

AI summary The summary supports TOU rates for efficiency and fairness, endorses a lost revenue recovery mechanism for NSPI with conditions, supports seasonal rates but questions year-round declining block rates, and encourages Flexible Pricing to address customer needs in a competitive environment.

DR. CHAMBERLIN - DIRECT EVIDENCE 2745 of the day. Under seasonal demand charges, on the other hand, customers are charged based on their single highest load occurring during on-peak hours. Once a demand level has been reached, a customer h...

AI summary Dr. Chamberlin discusses the challenges and benefits of implementing time-of-use (TOU) rates, emphasizing the need for a lost revenue recovery mechanism to mitigate risks for utilities. He supports voluntary TOU rates with revenue shortfalls covered by non-participating customers and suggests borrowing data from other utilities to avoid unnecessary experiments. He also argues that TOU rates should not be classified as demand-side management (DSM) programs.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. KEHOE - A. I've heard you say that several times. I just don't think I can agree with it. I wouldn't price it that way. I would price it as to cost and let customers' value choices drive their decisions a...

AI summary Dr. Chamberlin discusses pricing strategies, emphasizing cost-based pricing and customer value choices, and expresses views on flexible rates versus the domestic third block. He highlights the importance of unbundling reliability and allowing customers to make decisions based on their value preferences.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. HARRIS 2831 to be next year. So what do you do as an alternative? You develop a revenue recovery mechanism, just a holding account, or deferral account, that you use to collect the difference between what...

AI summary The discussion revolves around the use of a revenue recovery mechanism or deferral account to adjust rates based on actual costs versus assumptions. The speaker suggests that such an account can be phased out over a few years as more accurate data becomes available, allowing for adjustments during the next rate hearing.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. ROBERTSON 2847 - raising the off-peak? - 2 A. Yes. I think what's important is I wouldn't be - 3 lowering the winter peak below the cost. - 4 O. No. - 5 A. I would be reducing it below the revenue reconci...

AI summary The discussion centers on the utility's role in developing flexible pricing protocols and the need for mechanisms to ensure accuracy in pricing strategies. There is a suggestion that the utility should approach the Board with a plan to transition into a competitive market and that shareholders may need to share costs if rates are set below cost.

A. Balancing Competing Objectives In choosing a desirable rate structure from the available alternatives, electric utilities and their regulators balance objectives that often compete with one another. The Public Utility Regulatory Policie...

AI summary The text discusses the balancing of competing objectives in setting electricity rates, referencing the Public Utility Regulatory Policies Act (PURPA) of 1978. It outlines PURPA’s three objectives: energy conservation, efficiency, and equitable rates. It also explains inverted block rate structures and PURPA’s stance on declining block tariffs, emphasizing efficiency and cost considerations.

1. Load Retention Tariffs Do you currently ofter, or are you planning to offer, a Load Retention Tariff? If yes, could you please describe briefly what process your company uses to evaluate applications for this rate? Was an independent th...

AI summary The question asks whether a Load Retention Tariff is currently offered or planned, and if so, how applications are evaluated and whether an independent third party is involved in the process.

RESPONSE TO INFORMATION REQUEST TO: SEMPRA ATLANTIC GAS INC. FROM: NSPI Question IR-9: (6) If the answer to (5) is "yes", what difference does NSPI expect that the U ARB shall consider when evaluating the impact of the Load Retention Rate...

AI summary NSPI responds to a question about how the UARB should consider differences in load retention rates over different time periods. NSPI expects to evaluate the rate over the long term, with risks increasing for longer terms, and will use a single evaluation methodology.

Re: Nova Scotia Power Inc. Application for Approval of Load Retention Rate - P-871 Correspondence Halifax NS B3J 3E5 PO Box 2380 Stn Central RPO As NSPI has reviewed its responses to interrogatories in preparation for the load retention ra...

AI summary Nova Scotia Power Inc. (NSPI) is updating its responses to interrogatories and revising Table A of Mr. Whalen's prefiled evidence in preparation for the load retention rate hearing. The reasons for these updates are outlined in the correspondence.

AVAILABILITY - Available for any Customer being served by the Company under Rate 6T, Rate 9T or Rate 9B when in the judgement of the Company: (a) it is economically feasible and practical for the customer to utilize an energy source other...

AI summary The availability rider outlines conditions under which customers can bypass the Company's electric service, requiring affidavits and evidence of intent. It will remain available until January 1, 2001, or if the Company's capacity reserve margin falls below acceptable levels.

CONTRACTS - The customer shall enter into a contract in writing with the Company specifying the nature of the service to be supplied, the prices to be paid, the term of the contract and such other terms and conditions of service as are mut...

AI summary This section outlines the requirements for customer contracts under Rider 16, including contract duration, revenue conditions, and submission requirements to the Illinois Commerce Commission. Contracts must be submitted in advance and treated as confidential.

ELIGIBLE LOAD For a customer entering into Rider 16 Electric Contract Service, service hercunder shall be available only to existing load. A customer taking service under Rider 16 can make application for other applicable rates and riders...

AI summary The text discusses the eligibility of load for customers entering into Rider 16 Electric Contract Service, specifying that service is available only to existing load. It also mentions an application by Nova Scotia Power Incorporated for approval of a Load Retention Rate under the Public Utilities Act.

include the impacts of natural gas. In fact, those impacts are included in the forecast presented in response to UARB-IR-7, and will be included in any forecast used to evaluate load retention rates. - 16 Q. 17 What comments do you wish to...

AI summary The testimony discusses NSPI's concerns with proposed conditions for the load retention rate, particularly Conditions 2 and 3. NSPI argues for flexibility in addressing the in-service date of customer generators and highlights the importance of offering long-term benefits comparable to self-generation options.

Notice of PUBLIC HEARING Nova Scotia Power Inc. (NSPI) seeks approval for a new Load Retention Rate to be offered in circumstances where it can be shown that the customer's option to leave NSPI is technically and economically feasible and...

AI summary Nova Scotia Power Inc. (NSPI) is seeking approval for a new Load Retention Rate to retain customers when it is technically and economically feasible. The hearing will determine if such a rate is needed and on what terms it should be available. Interested parties must file notice of their intention to participate by specific deadlines.

INFORMATION REQUEST To: Nova Scotia Utility and Review Board From: Nova Scotia Power Inc. 1. Required Date: As soon as possible. Reference: Page 12 of Mr. Kumar's evidence together with Attachment 4. Question: a) Which three utilities do n...

AI summary Nova Scotia Power Inc. has submitted an information request to the Nova Scotia Utility and Review Board, asking about load retention rates offered by other utilities and the basis for Mr. Kumar's conclusion regarding their similarity to NSPI's proposed rate. The request also asks for clarification on where Mr. Kumar discusses a specific condition related to non-discriminatory availability of load retention rates.

Q. Please describe Stora Enso's present energy usage and requirement. A. At present, Stora Enso purchases approximately 155 MW of power and energy from NSPI, under the Interruptible Rider of the Large Industrial Rate, the Industrial Expans...

AI summary Stora Enso currently purchases 155 MW of power from NSPI, with an expected increase to 205 MW due to production changes and PM-2's full production. They also have 25 MW of in-house generation and use process steam from TMP production and in-house boilers, which are transitioning to natural gas.

19 Q IN A PREVIOUS RESPONSE YOU USED THE TERM "SUCCESSFULLY" WITH 20 RESPECT TO A CAR. WHAT DID YOU MEAN BY THAT? 21 A By successful I mean a rate that benefits all stakeholders. The customer taking 22 service on the CAR achieves its goal...

AI summary The witness explains that a CAR (Customer Assistance Rate) is considered successful when it benefits all stakeholders, including customers who reduce energy costs, the utility that retains customers and profits, and other customers who benefit from lower unit costs and a better economic climate.

CONCLUSIONS AND RECOMMENDATIONS - Q. MR. KUMAR, PLEASE SUMMARIZE YOUR CONCLUSIONS? - A. In my opinion, NSPI's proposed LR rate provision is a proper response to a competitive market. However, NSPI's proposal lacks certain customer protecti...

AI summary Mr. Kumar concludes that NSPI's LR rate proposal is appropriate for a competitive market but requires customer protection measures. He recommends conditions for implementation, including non-discrimination, availability timelines, loss mitigation strategies, and revenue sharing incentives.

\ Avallable Load Other Contract Other Utlllty ForfTo Limitation Limitations Term Remarks I I Allegheny To self generators as standby, supplemental or maintenance power Not less than 1 yr. Not a load retention rate and encourages rather tha...

AI summary The table outlines various utility companies and their policies regarding load retention, self-generation, and competitive rates. Each entry specifies the available services, load limitations, contract terms, and remarks, highlighting differences in eligibility, minimum load requirements, and service duration.

st ofelectricity to the customerfrom that option is expected to be lower than the cost to the customer of continuing to purchase electricity from NSP/. NSPI would determine the impact on its other customers of losing the customer load in q...

AI summary NSPI seeks approval for general principles and a process to establish load retention rates for customers leaving the system. The process involves forecasting models, scenario comparisons, and negotiated rates submitted to the Board for approval, with some data not required to be publicly disclosed.

00 KW or greater. It noted that the rate would recover all of the incremental costs of producing the additional electricity and make a contribution to help pay for existing excess generating capacity. In its decision in Re Gulf States Util...

AI summary The text discusses a legal basis for a load retention rate, referencing a 1987 Texas Public Utility Commission decision that approved a tariff rider offering rate discounts to large-volume electric customers who can cogenerate. The decision outlined conditions for reasonable discrimination in rate structures, emphasizing benefits to the utility system and the importance of maintaining industrial load.

LOAD REQUIRED TO QUALIFY FOR RATE NSPI proposes that the load retention rate be made available only to customers who are considering an alternate supply of at least 2000 kVA or 1800 kW. As indicated in clause (4) of the Availability sectio...

AI summary NSPI proposes a minimum load requirement of 2000 kVA or 1800 kW for customers to qualify for a load retention rate. The Board accepts this as reasonable for now but acknowledges that future technological advances may necessitate a lower threshold.

ATTACHMENT "A" This attachment outlines procedures by which the requirements of Availability Clause (1) and Special Condition (1) are to be satisfied. - (1) The customer shall apply in writing to take service under this rate, outlining the...

AI summary This attachment outlines procedures for customers to apply for service under a load retention rate, including initial screening, determination of load retention price, and adjudication by the UARB if needed. It also details economic and technical feasibility criteria and the impact on NSPI's other customers.

ATTACHMENT "A" This attachment outlines procedures by which the requirements of Availability Clause (1) and Special Condition (l) are to be satisfied. - (1) The customer shall apply in writing to take service under this rate, outlining the...

AI summary This attachment outlines procedures for customers to apply for service under a load retention rate, including initial screening, establishing load retention prices, and determining economic and technical feasibility of alternate supply options. It also covers confidentiality, cost considerations, and the impact on other customers.

00 KW or greater. It noted that the rate would recover all of the incremental costs of producing the additional electricity and make a contribution to help pay for existing excess generating capacity. In its decision in Re Gulf States Util...

AI summary The text discusses a legal basis for a load retention rate, referencing a 1987 decision by the Texas Public Utility Commission. It outlines conditions under which rate discounts for industrial customers who can cogenerate are considered reasonable, emphasizing benefits to the utility system and the need to prevent serious load loss.

FLEXIBILITY NSPI urges the Board not to impose additional conditions in the rate that would reduce its flexibility. Mr. Whalen in his supplemental evidence4 states: "The purpose of the load retention rate is to retain customer load, subjec...

AI summary NSPI argues against imposing additional conditions on the rate, as it would reduce flexibility. Mr. Whalen emphasizes that the load retention rate must align with the Availability Clause and UARB approval, and that overly specific conditions could hinder the rate's success in meeting customer needs.

TERM Mr. Kumar in Condition 3 states that "The LR rate may not be made available after NSPI installs or acquires new long term capacity". He conceded however on cross-examination that the term of an existing contract could be extended beyo...

AI summary The document discusses the conditions under which the Load Retention (LR) rate may be available after NSPI installs or acquires new long-term capacity. It highlights that extending an existing contract's term beyond the time needed for capacity installation is acceptable if the cost is reflected in the rate design. Mr. Whalen emphasizes the importance of the LR rate offering a long-term alternative comparable to self-generation options to remain attractive to customers.

Availability - 1. The evidence before the Board points to the load retention rate being restricted to circumstances in which the customers have the real and economically viable opportunity to supply their own electrical load through self-g...

AI summary The Board notes that the load retention rate should be limited to circumstances where customers can self-generate electricity. The rate's current terms do not explicitly mention self-generation, and the Board suggests reinforcing this intent. Concerns are raised about the rate's potential misuse for displacing electricity other than through self-generation, and a public hearing is recommended.

Summary In summary, Irving Oil submits that: - 1. the load retention rate be permitted only, if at all, on a temporary basis; - 2. that any approval by the Board ofthe load retention rate be tied to a concrete schedule for considering and...

AI summary Irving Oil submits that the load retention rate should be temporary, tied to a schedule for customer choice in electric purchases, and that conditions should ensure it does not hinder competition. Revenue shortfalls from the rate should be absorbed by NSPI shareholders, not ratepayers.

C tid 4.-" ]" ..... on I enIJaIlIY: The cover of confidentiality sought by NSPI in this application is very broad and very unacceptable. NSPI seeks to compete with alternate energy sources where those sources can successfully compete with...

AI summary NSPI's confidentiality request is criticized for being overly broad. NSPI seeks to compete with alternate energy sources but does not support open competition. The utility's regulated business supports its competitive operations, with fixed costs including return on equity being discounted to successful load retention candidates. Other customers argue that transparency about negotiated rates and volumes is necessary for fair future rate hearings.

Recommendations: - Generally, we find Mr. Kumar's testimony persuaSIve and support his recommendations. - The Board should direct NSPI to file evidence detailing scenanos where customers able to successfully build co-gen plants do so and N...

AI summary The recommendations emphasize the need for NSPI to provide detailed evidence on co-gen plant scenarios, ensure revenue losses are not passed to other customers, publish discounted sales details, and scrutinize load retention rate applications thoroughly for fairness and credibility.

4. THE LR RATE PRESENTLY PROPOSED BY NSPI DOES NOT HAVE ADEQUATE RATEPAYER SAFEGUARDS NSPI's rate offering creates distorted incentives and imposes the burden on the DARB to sort out the results. The proposed LR Rate imposes no requirement...

AI summary NSPI's proposed LR Rate lacks adequate safeguards for ratepayers, creating distorted incentives and placing the burden on the DARB to address potential issues. The DARB is urged to incorporate Mr. Kumar's recommendations to align incentives with the public interest.

9). The section of that tariff to which I refer was obliterated on the copy that NSPI included in its Responses. The obliterated portion of that tariff reads, in part (see Prefiled Testimony at p. 9): Revenues from service to the Customer...

AI summary The text discusses the importance of establishing a clear price floor in load retention rate contracts to ensure that revenue covers incremental costs and protects other customers. It references examples from other utilities and emphasizes the need for transparency and public confidence.

D. The LR Rate should be unbundled. Other services, such as ancillary or backup services should not be bundled into this rate. This will help ensure that NSPI does not unfairly take advantage of its situation as a fully bundled utility to...

AI summary The LR Rate should be unbundled to prevent NSPI from unfairly offering discounts on other services that are difficult for regulators to value and competitors to meet. This ensures transparency in competition and fair treatment of customers receiving interruptible service.

E. The confidentiality provision needs to be weighed more towards the public interest. During cross-examination by Sempra Atlantic counsel (See Q. 222, pp. 97-99), NSPI agreed that it would provide the detailed information Mr. Kumar says N...

AI summary The document discusses the need for greater transparency in Load Retention (LR) Rate contracts, arguing that public disclosure of summary reports, including customer names and rates, is essential for ensuring fair competition and protecting public interest. NSPI's request for confidentiality is weighed against the need for transparency, with concerns raised about the lack of evidence supporting NSPI's position.

G. Summary of Required Safeguards To adequately, fairly and reasonably protect captive customers and to promote real competition and efficient rates, an LR Rate offering should not be adopted until its wording incorporates: - 1. The clearl...

AI summary The document outlines required safeguards for an LR Rate offering, including a price floor, contract length guidelines, consumption-based take provisions, unbundling restrictions, confidentiality provisions, and other recommendations by Mr. Kumar to protect captive customers and promote competition.

D. Timing for the Implementation of a LRR Various parties explored the proposition as to whether the LRR should only be made available at the time a customer is in a position to install its own generation. A decision by a customer to leave...

AI summary The discussion focuses on the timing of implementing a Load Retention Rate (LRR), considering whether it should be available when a customer is ready to install self-generation. It emphasizes the importance of financial and engineering considerations, and the use of net present value to evaluate the economic benefits of LRR over time. All parties agree that there should be no condition requiring LRR to be available only after a customer can install self-generation.

G. Minimum LRR As stated above, the purpose of a LRR is, from a utility's perspective, to protect other customers by offering a competitive alternative to those customers who could self-generate; and, from the perspective of the potential...

AI summary The document discusses the Load Retention Rate (LRR) and its purpose from both the utility and customer perspectives. It outlines three proposed alternatives for setting a minimum LRR and evaluates why Dr. Rosenberg's proposal is preferable. The LRR aims to balance the interests of the utility and customers by ensuring fair pricing that encourages customers to remain with the utility.

Testimony ofJ. Kumar, p. 500, question 71 Mr. Kumar ,vas not aware of any other rate that imposes a 10% rule. \X/ith respect, the 10% rule is based on Mr. Kumar's own discretion, and not upon any substantive analysis. In fact, when pressed...

AI summary Mr. Kumar testified that the 10% rule for Load Retention Rate (LRR) is based on his discretion and not on substantive analysis. When questioned, he abandoned the 10% rule, suggesting instead that LRR should be a 'significant positive contribution' evaluated by the Board when a contract is approved.

Prefiled Evidence of Dr. Rosenberg, p. 11 Within a competitive negotiation process, the parties will likely negotiate and arrive at a price that is somewhere between the utility's incremental cost and the customer's cogen option. It is rea...

AI summary Dr. Rosenberg argues that the Load Retention Rate (LRR) should be determined by customers based on their business considerations, not by NSPI or the Board. He submits that the Board should not accept NSPI's proposed rate condition, as it should not dictate the LRR, and that the only guideline is ensuring a contribution to fixed costs.

Confidentiality The primary motivating factor for self generation is the current reality of cost reduction facing industry competing in a world market. If industry cannot compete effectively, it will not survIve. In assessing the viability...

AI summary The text discusses the importance of confidentiality in Load Retention Rate (LRR) negotiations to encourage customers to remain with the utility rather than self-generate. It argues that disclosing such information could deter businesses from negotiating, as it would expose proprietary and sensitive data, potentially harming their competitive position.

LOAD RETENTION RATE REBUTTAL BRIEF Nova Scotia Power Inc. ("NSPI") has had an opportunity to examine the briefs filed by other parties to the proceeding. Generally speaking the issues canvassed in the briefs have been dealt with in our pos...

AI summary Nova Scotia Power Inc. (NSPI) has reviewed other parties' briefs in the Load Retention Rate proceeding and notes that most issues were addressed in their post-hearing submission or pre-hearing brief. However, NSPI wishes to make further comments on several matters.

SEMPRA ATLANTIC GAS Sempra makes several suggestions in respect of rate design. At Page 6 of the brief Sempra indicates the requirement for a price floor. As noted in the post hearing brief of NSPI there is a price floor in that the rate m...

AI summary Sempra suggests a price floor, minimum and maximum take provisions, and unbundling of services in rate design. NSPI questions the need for these restrictions and argues that Sempra is not subject to the same regulatory oversight as NSPI, including a 20-year rate plan, unrestricted contract negotiation, and higher return on equity.

ofload from the marketplace to discourage prospective electrical or other energy marketers from entering the marketplace and thereby delay the advent of a truly competitive market for all ratepayers, We submit that the exceptional features...

AI summary The submission argues that the load retention rate should be a transitional measure and should not extend beyond the point when customer choice is available in the electricity market, as it may discourage competition and delay the implementation of customer choice in Nova Scotia.

Sempra Atlantic (pp. 16-18): It is noteworthy, that during cross-examination of NSPI, it became apparent that while the NSPI witnesses understand that other companies now offering other forms of energy come to the market with the sharehold...

AI summary The text criticizes Nova Scotia Power Inc. (NSPI) for proposing an LR Rate that fails to balance risk and reward for shareholders and does not protect captive ratepayers. It argues that NSPI should not use its monopolistic power to gain an unfair advantage and calls for significant revisions to the LR Rate before approval.

B. The Question ora Floor Price Section 4A of Sempra's Closing Submission, entitled "The need for a clearly stated price floor", (pages 6 to 10) are, with respect, mystifying. The evidence ofDr. Chamberlin from the 1996 Rate Hearing to the...

AI summary The text critiques Sempra's argument regarding the need for a clearly stated price floor in a rate application, pointing out that the NSPI Application already includes a floor based on marginal cost. It references expert testimony and other cases to support the position that the rate should be greater than incremental cost or make a positive contribution to fixed costs, opposing Sempra's proposed higher floor.

F. Summary It is in the interest of potential Load Retention Rate customers such as Stora Enso that the Load Retention regime approved by the Board does not inhibit the utility from entering into serious negotiations for a Load Retention R...

AI summary The summary emphasizes that the Load Retention Rate regime should not hinder NSPI's ability to negotiate with potential customers like Stora Enso. It argues that NSPI's captive customers have an interest in successful negotiations to retain revenue that would otherwise be lost.

A. The Issue of "Self-Generation" At page 7 of the Irving Oil Submission, paragraphs 1 - 4, the suggestion is made that the availability section of the Rate should restrict the LRR to cases of "self-generation". Obviously, many reasons — u...

AI summary The submission discusses the ambiguity of the term 'self-generation' in the context of rate regulation, arguing that it should not restrict the LRR to only cases where the customer generates their own power, as third-party financing of large projects like combined cycle cogeneration facilities should be allowed.

McInnes Cooper & Robertson SINCE 1859 BARRISTERS, SOLICITORS & TRADE MARK AGENTS George T.H. Cooper, Q.C. Direct Dial: 902-424-1353 e-mail: [email protected] Summit Place 1601 Lower Water Street Post Office Box 730 Halifax, Nova Sco...

AI summary Stora Enso Port Hawkesbury Limited intends to appear as a third-party intervenor in the NSPI Load Retention Rate Hearing. They request copies of all filed materials and intend to present witnesses, cross-examine others, and present arguments.

Discrimination, § 39 — Rates — Customer classes — Cost allocation. [OR.] In determining fair and reasonable rates for utility service the commissioner has broad discretion in allocating costs among customer classes; however, the classifica...

AI summary The text outlines legal standards for determining fair and reasonable utility rates, emphasizing that cost allocation among customer classes must avoid unjust discrimination. It specifies that discounts must be based on reasonable criteria and benefit other customers by maximizing fixed cost contributions, while permissible customer classification factors include volume of use and end use.

RATE FLEXIBILJIT The combination of circumstances that gave rise to these proceedings has created a need for rates that focus on smaller groups of customers. Some of the parties desire the ability for individual customers to negotiate rate...

AI summary The text discusses the concept of rate flexibility, particularly the 'zone of reasonableness' for negotiating rates with individual customers. It highlights three legal challenges under ORS 757.205, 757.325, and the Commissioner's duty to ensure rates are 'just and reasonable'. The discussion emphasizes the need for regulatory oversight while allowing flexibility in certain circumstances.

A.i\tfOUNT NB Powe= proposed to accept customers for the i~centive rate on a first corne, first served, basis to a waximum of 100 MW in the aggregate. This was based on the current load and resource analysis which NB Power stated would be...

AI summary NB Power proposed a first-come, first-served incentive rate with a 100 MW cap, based on current load and resource analysis. The Board agrees with this approach and supports explicitly stating the cap in the tariff for clarity and communication.

CONCLUSIONS The Board directs NB Power to amend Page RSP N-9(a) to clearly state that the incentive rate is only available to a maximum of 100 MW in the aggregate and to file the amended page with the Board for approval. The Board will, up...

AI summary The Board has directed NB Power to amend a specific page to limit an incentive rate to 100 MW and denied Consumers Power Company's application for a new rate. The decision includes provisions for potential future orders and outlines the appeal process.

Re Gulf States Utilities Company Docket No. 7309 — Tex PUC Bull — Texas Public Utility Commission May 13, 1987 OPINION and order approving experimental tariff rider offering rate discounts to large-volume electric customers with capacity f...

AI summary The Texas Public Utility Commission approved an experimental 'SUS' tariff rider offering rate discounts to large-volume electric customers with the capacity to install cogeneration facilities. The rider included a below-cost energy component reflecting hypothetical fuel costs and did not violate Rule 23.23(b)(2)(c) as it was not a cost-based mechanism for passing through fuel costs.

I. Proced u raJ History On December 31, 1986, Gulf States Utilities Company (GSU) filed an application seeking authority to implement a proposed Schedule SUS Experimental Rider to Schedules LPS and LIS for lndusuial Service to Qualifying T...

AI summary Gulf States Utilities Company (GSU) filed an application in 1986 to implement a new experimental rate schedule and associated contract amendment. The Texas Public Utility Commission (PUC) suspended the implementation pending a final order. A prehearing conference was held in February 1987, and a hearing was scheduled for April 13, 1987, with appearances from GSU, Commission staff, and representatives from Chevron and Mobil Chemical.

Ill. Description of Schedule SUS GSU proposes to offer Schedule SUS on an experimental basis, limiting the period in which a customer can subscribe to the offering to a one year period following the approval date of the rider. Any LPS or L...

AI summary GSU proposes Schedule SUS as an experimental rate for qualifying LPS or LIS customers with a minimum process steam requirement. The rate requires a service agreement amendment and a three to ten-year commitment. Customers may revert to standard rates with twelve months' notice or pay the difference in billing otherwise.

IV. Discussion of Contested Issues The Commission staff supports the need for GSU to implement an incentive rate designed to prevent the loss of GSU's industrial load to cogeneration. However, the staff has not endorsed Schedule SUS due to...

AI summary The Commission staff supports GSU's incentive rate to prevent loss of industrial load to cogeneration but does not endorse Schedule SUS due to concerns of anti-competitive or discriminatory application. Technical modifications are recommended if legal concerns are not a barrier.

ted customers to utilize cogeneration as an alternative means of meeting their electrical energy requirements constitutes a substantial and reasonable ground of distinction among industrial customers. In the examiner's opinion, use of coge...

AI summary The examiner supports the use of cogeneration as a basis for distinguishing among LIS and LPS customers, arguing that it does not unfairly disadvantage them. The proposed SUS rider is seen as justifiable if it reasonably approximates the cost of cogeneration, and the economic advantage it provides is not unreasonable given the availability of cogeneration as an alternative.

rcaJJy serve any purpose given that customers with demand levels in excess of 10 MW will still utilize the below 10 MW rate bands at various times. ·, ; .. GSU takes the position that the SUS rate should be available to all LIS and LPS cus...

AI summary GSU argues that the SUS rate should be available to all LIS and LPS customers meeting the SUS rider's requirements, regardless of electric load size. The examiner recommends against adopting Mr. Hughes' proposal, as the issue with below 10 MW rate bands is not severe enough to warrant additional rate bands or rejection of the proposed tariff.

rate to calculate the energy charge will result in SUS customers paying less than the equivalent cost of service paid by other LIS customers. The examiner notes that each of these contentions is true. [5] However, it is not unreasonable to...

AI summary The text discusses the justification for offering incentive rates to certain industrial customers based on their potential to cogenerate, arguing that this practice is reasonable if it prevents substantial harm to GSU. It also explains that Schedule SUS uses a consistent methodology to calculate rates for SUS customers based on their energy usage and cogeneration potential.

V. Recommendation Based upon the evidence of record, the examiner finds that there is an immediate danger that GSU will experience load loss to cogeneration in the near future unless GSU takes concrete steps to prevent that loss from occur...

AI summary The examiner recommends that the Commission approve Schedule SUS and the associated service agreement amendment, as filed, effective immediately upon the entry of a final order. The examiner also recommends that no revenue losses associated with Schedule SUS may be recovered from GSU ratepayers in future rate proceedings, as GSU's shareholders will bear the burden of such losses.

A. Findings of Fact - l. Gulf States Utilities Company (GSU) is an public utility providing electrical service within its certificated service area, under Certificate of Convenience and Necessity No. 30076. - 2. On December 31, 1986, GSU f...

AI summary The document outlines the findings of fact in a proceeding involving Gulf States Utilities Company (GSU) seeking approval for a new tariff schedule and contract amendment. GSU filed an application for a Schedule SUS Experimental Rider, and the Office of Public Utility Counsel (OPC) was granted intervenor status but did not appear at the hearing.

rom IPS's other customers. If the proposed rate does create a disadvantage to IPS's other customers, it is not an unreasonable disadvantage since they will not have to pay this additional revenue. The Board will approve the proposed rate....

AI summary The Board approves IPS's proposed rate but imposes conditions, including offering discounted rates to certain customers and adjusting revenue calculations to absorb discount costs. Fifty percent of any revenue increase will be used to reduce rates for all customers, while the remaining fifty percent may be retained by IPS.

Re Northern Indiana Public Service Company __ l I Cause No. 38365 Indiana Utility Regulatory Commission January 20, 1988 ORDER permitting an electric utility to offer rate discounts to industrial customer, who agree to defer construction o...

AI summary The Indiana Utility Regulatory Commission permitted an electric utility to offer rate discounts to industrial customers who agree to defer construction of cogeneration facilities for five years and purchase all their power from the utility during that period. The decision found the arrangement not unreasonably discriminatory and consistent with PURPA and state law.

By the COMMISSION: On August 28, 1987, Northern Indiana Public Service Company (UPetitioner" or "NIPSCO") filed its verified Petitio n with the Commission requesting approval of its Generation Alternative Rider ("Rider GA") and a new elect...

AI summary The Commission reviewed a proceeding initiated by Northern Indiana Public Service Company (NIPSCO) regarding its Generation Alternative Rider and a service contract with R.R. Donnelley & Sons Company. The filing included a stipulation and intervention by Bethlehem Steel Corporation. A public hearing was held, and the Commission affirmed its jurisdiction over the matter.

types of differences in rates. We will, therefore, review proposed Rider GA for unlawful discrimination while keeping in mind all of the related statutes, consistent with the authorities cited above. [1] The Public and Intervenor Bethlehem...

AI summary The text discusses concerns about potential rate discrimination resulting from Rider GA, with arguments from both Public and Petitioner witnesses. It highlights the distinction between cost-based and cost-related rates and references relevant Indiana statutes.

DISCUSSION [I, 2) AP&L and Mid-America support approval of the Agreement. As a result of the August 19, 1988, amendment to the Agreement, the Staff now recommends approval of the Agreement. Also as a result of the amendment, AEEC, the othe...

AI summary AP&L and Mid-America support the approval of an agreement, which would allow Mid-America to reduce its electricity purchases from AP&L through co-generation. The Commission must determine if the agreement is just and reasonable. Experts testified that co-generation is a viable alternative for Mid-America, which currently does not generate its own electricity.

ka (1975), 537 P (2d) 1100 (Supreme Court of Alaska); and People 's Natural Gas Company v. Pennsylvania Public Utility Commission (1979), 409 A. (2d) 446 (Commonwealth Court of Pennsylvania)]. In Oregon Public Utility Commissioners: Re Inc...

AI summary The text discusses legal precedents and regulatory considerations related to rate classification and incentive rates for electric service. It highlights the need for fair and non-discriminatory classification criteria and outlines the context of energy surpluses and regulatory changes impacting utility sales at full tariff rates.

Load Retention Rates In a report of the Illinois Commerce Commission entitled "Survey of State Economic Development Utility Rates and Policies", dated July, 1994, the Commission found that the use of incentive rates, including Load Retenti...

AI summary The text discusses load retention rates, referencing a 1994 Illinois Commerce Commission report and a 1989 Edison Electric Institute survey, both highlighting the widespread use of such rates in the U.S. It also references a Texas case where load retention rates were approved under statutory provisions similar to those in S. 67 of the Act.

Discussion There are two main criteria considered in the proposed load retention classification: - l. Customer Alternative the customer must have the technical and economic capability to switch to an alternate supply; and - 2. Volume of Us...

AI summary The proposed load retention classification aims to retain customers who can switch to alternative supply by offering discounted rates based on their technical and economic capability and volume of use. The rate is set to make customers indifferent to switching, ensuring fairness and maximizing benefits for all customers while preventing loss of significant load.