56-604 - Filing of petition with Commission to establish or amend a SAVE plan; recovery of certain costs; procedure.
§ 56-604. Filing of petition with Commission to establish or amend a SAVEplan; recovery of certain costs; procedure.
A. Notwithstanding any provisions of law to the contrary, a natural gasutility may file a SAVE plan as provided in this chapter. Such a plan shallprovide for a timeline for completion of the proposed eligible infrastructurereplacement projects, the estimated costs of the proposed eligibleinfrastructure projects, and a schedule for recovery of the related eligibleinfrastructure replacement costs through the SAVE rider, and demonstrate thatthe plan is prudent and reasonable. The Commission may approve such a planafter such notice and opportunity for hearing as the Commission mayprescribe, subject to the provisions of this chapter.
B. The Commission shall approve or deny, within 180 days, a natural gasutility's initial application for a SAVE plan. A plan filed pursuant to thissection shall not require the filing of rate case schedules. The Commissionshall approve or deny, within 120 days, a natural gas utility's applicationto amend a previously approved plan. If the Commission denies such a plan oramendment, it shall set forth with specificity the reasons for such denial,and the utility shall have the right to refile, without prejudice, an amendedplan or amendment within 60 days, and the Commission shall thereafter have 60days to approve or deny the amended plan or amendment. The time period forCommission review provided for in this subsection shall not apply if the SAVEplan is filed in conjunction with a rate case using the cost of servicemethodology set forth in § 56-235.2, or a performance-based regulation planauthorized by § 56-235.6.
C. Any SAVE plan and any SAVE rider that is submitted to and approved by theCommission shall be allocated and charged in accordance with appropriate costcausation principles in order to avoid any undue cross-subsidization betweenrate classes.
D. No other revenue requirement or ratemaking issues may be examined inconsideration of the application filed pursuant to the provisions of thischapter.
E. At the end of each 12-month period the SAVE rider is in effect, thenatural gas utility shall reconcile the difference between the recognizedeligible infrastructure replacement costs and the amounts recovered under theSAVE rider, and shall submit the reconciliation and a proposed SAVE rideradjustment to the Commission to recover or refund the difference, asappropriate, through an adjustment to the SAVE rider. The Commission shallapprove or deny, within 90 days, a natural gas utility's proposed SAVE rideradjustment.
F. A natural gas utility that has implemented a SAVE rider pursuant to thischapter shall file revised rate schedules to reset the SAVE rider to zero,when new base rates and charges that incorporate eligible infrastructurereplacement costs previously reflected in the currently effective SAVE riderbecome effective for the natural gas utility, following a Commission orderestablishing customer rates in a rate case using the cost of servicemethodology set forth in § 56-235.2, or a performance-based regulation planauthorized by § 56-235.6.
G. Costs recovered pursuant to this chapter shall be in addition to all othercosts that the natural gas utility is permitted to recover, shall not beconsidered an offset to other Commission-approved costs of service or revenuerequirements, and shall not be included in any computation relative to aperformance-based regulation plan revenue-sharing mechanism. Further, if theCommission approves (i) an updated weighted average cost of capital for usein calculating the return on investment, (ii) the carrying costs on the over-or under-recovery of the eligible infrastructure replacement costs, (iii) theallowance for funds used during construction, or (iv) any combinationthereof, such weighted average cost of capital shall be used only for thepurpose of the eligible infrastructure replacement costs for the SAVE riderand shall not be used for any purpose in any other proceeding.
(2010, cc. 142, 514.)