56-585.3 - Regulation of cooperative rates after rate caps.
§ 56-585.3. Regulation of cooperative rates after rate caps.
A. After the expiration or termination of capped rates, the rates, terms andconditions of distribution electric cooperatives subject to Article 1 (§56-231.15 et seq.) of Chapter 9.1 of this title shall be regulated inaccordance with the provisions of Chapters 9.1 (§ 56-231.15 et seq.) and 10(§ 56-232 et seq.) of this title, as modified by the following provisions:
1. Except for energy related cost (fuel cost), the Commission shall notrequire any cooperative to adjust, modify, or revise its rates, by means ofriders or otherwise, to reflect changes in wholesale power cost whichoccurred during the capped rate period, other than in a general rateproceeding;
2. Each cooperative may, without Commission approval or the requirement ofany filing other than as provided in this subdivision, upon an affirmativeresolution of its board of directors, increase or decrease all classes of itsrates for distribution services at any time, provided, however, that suchadjustments will not effect a cumulative net increase or decrease in excessof 5 percent in such rates in any three year period. Such adjustments willnot affect or be limited by any existing fuel or wholesale power costadjustment provisions. The cooperative will promptly file any such revisedrates with the Commission for informational purposes;
3. Each cooperative may, without Commission approval, upon an affirmativeresolution of its board of directors, make any adjustment to its terms andconditions that does not affect the cooperative's revenues from thedistribution or supply of electric energy. In addition, a cooperative maymake such adjustments to any pass-through of third-party service charges andfees, and to any fees, charges and deposits set out in Schedule F of suchcooperative's Terms and Conditions filed as of January 1, 2007. Thecooperative will promptly file any such amended terms and conditions with theCommission for informational purposes;
4. Each cooperative may, without Commission approval or the requirement ofany filing other than as provided in this subdivision, upon an affirmativeresolution of its board of directors, make any adjustment to its ratesreasonably calculated to collect any or all of the fixed costs of owning andoperating its electric distribution system, including without limitation,such costs as are identified as customer-related costs in a cost of servicestudy, through a new or modified fixed monthly charge, rather than throughvolumetric charges associated with the use of electric energy; however, suchadjustments shall be revenue neutral based on the cooperative's determinationof the proper intra-class allocation of the revenues produced by its thencurrent rates. The cooperative may elect, but is not required, to implementsuch adjustments through incremental changes over the course of up to threeyears. The cooperative shall file promptly revised tariffs reflecting anysuch adjustments with the Commission for informational purposes; and
5. A cooperative may, at any time after the expiration or termination ofcapped rates, petition the Commission for approval of one or more rateadjustment clauses for the timely and current recovery from customers of thecosts described in subdivisions A 5 b and e of § 56-585.1.
B. None of the adjustments described in subdivisions A 2 through A 5 willapply to the rates paid by any customer that takes service by means ofdedicated distribution facilities and had noncoincident peak demand in excessof 90 megawatts in calendar year 2006.
C. Nothing in this section shall be deemed to grant to a cooperative anyauthority to amend or adjust any terms and conditions of service oragreements regarding pole attachments or the use of the cooperative's polesor conduits.
(2007, cc. 888, 933; 2009, cc. 401, 824.)