Ratemaking Clause Samples
The Ratemaking clause defines the process and methodology by which rates or prices for goods or services are determined under an agreement. Typically, this clause outlines the factors considered in setting rates, such as costs, market conditions, or regulatory requirements, and may specify how often rates can be reviewed or adjusted. Its core practical function is to ensure transparency and predictability in pricing, thereby reducing disputes and providing a clear framework for financial planning between the parties.
Ratemaking. 5.1 The fully-reconciling formula tariff, Solar Program Cost Adjustment (“SPCA”) (attached hereto as Attachment A and incorporated into this Agreement), is an appropriate method of cost recovery for the investments in the Company’s Program. Recovery should occur equitably across customer classes and recovery through a non-bypassable element of electric charges is appropriate.
5.2 The SPCA defines the form and function of this ratemaking as a reconciling tariff, with specific components, criteria, calculations and its formula for application in rates.
5.3 The Department approves the ratemaking mechanism applicable to WMECO’s Program, as shown in the SPCA. In the event that the implementation of this mechanism occurs by way of another proceeding, the form and function of this ratemaking mechanism shall not change from that approved in this proceeding. The ratemaking mechanism defined in this Article 5 will become effective the earlier of (a) the effective date of the Department’s approval of new rates for WMECO resulting from the Company’s next filing for a general increase in base distribution rates under ▇. ▇. ▇. 164, § 94, or (b) January 1, 2011.
5.4 For purposes of this Agreement, the term “commissioning” shall mean the instant in which the Company interconnects a solar facility with its distribution system and commences commercial operation.
Ratemaking. Buyer shall not seek to overturn, reverse, set aside, change or enjoin, whether through appeal or the initiation or maintenance of any action in any forum, a decision or order of the Indiana Utility Regulatory Commission (“IURC”) which pertains to recovery, disallowance, deferral or ratemaking treatment of any expense, charge, cost or allocation incurred or accrued by Buyer in or as a result of this Agreement (or any amendment hereto) on the basis that this Agreement and any such expense, charge, cost or allocation was filed with or approved by the Securities and Exchange Commission (“SEC”).
Ratemaking. Operating Company shall not seek to overturn, reverse, set aside, change or enjoin, whether through appeal or the initiation or maintenance of any action in any forum, a decision or order of the KYPSC which pertains to recovery, disallowance, deferral or ratemaking treatment of any expense, charge, cost or allocation incurred or accrued by Operating Company in or as a result of this Agreement (or any amendment hereto) on the basis that this Agreement and any such expense, charge, cost or allocation was filed with or approved by the SEC.
Ratemaking. Operating Company shall not seek to overturn, reverse, set aside, change or enjoin, whether through appeal or the initiation or maintenance of any action in any forum, a decision or order of the PUCO which pertains to recovery, disallowance, deferral or ratemaking treatment of any expense, charge, cost or allocation incurred or accrued by Operating Company in or as a result of this Agreement (or any amendment hereto) on the basis that this Agreement and any such expense, charge, cost or allocation was filed with or approved by the SEC.
Ratemaking. 14.1 The revenue requirement for the rate base portion of the desalination plant and the CAW-Only Facilities will be based on the current and effective cost of capital decision approved by the Commission, and subject to future adjustment as the cost of capital changes. However, the interest rate on the securitization and SRF or long-term debt will be set at the time of funding and will be recovered in accordance with procedures set forth in Section 11 and Section 12.
14.2 Property taxes shall be included in the revenue requirement of the MPWSP in compliance with the findings of the tax assessor.
14.3 Depreciation rates on all facilities will be determined based on the latest rates filed with the Commission in either a general rate case or via the annual depreciation adjustment filing made in conjunction with Section 11.21 of the settlement agreement approved by the Commission in D.▇▇-▇▇-▇▇▇.
14.4 AFUDC shall be allowed on all construction work in progress related to the desalination plant facilities at the actual rate of the instruments used to finance the construction.
14.5 Income Taxes will be calculated as part of the revenue requirements based on the same procedures and at the same rates as established in the latest authorized general rate case decision.
14.6 First Year Revenue Requirement Determination for the Desalination Facilities including the CAW-Only Facilities
(a) Upon completion of the desalination facilities, California American Water shall determine the first year revenue requirement for the desalination facilities including the CAW-Only Facilities. At the time California American Water implements the first year revenue requirement for both such facilities, the authorization will supersede any previously established revenue requirement for the CAW-Only Facilities as authorized by Section 7.3 (c).
(b) The first year revenue requirement will be determined based on the above assumptions and those established in Section 8.3.
(c) The revenue requirement will be placed into base rates via the tier 2 advice letter process, and will increase the authorized revenue requirement for the Monterey County District, the same as any other authorized plant offset advice letter request, except that the increase will only be applicable to customers as determined by the Commission in a later phase of this proceeding.
Ratemaking. Operating Company shall not seek to overturn, reverse, set aside, change or enjoin, whether through appeal or the initiation or maintenance of any action in any forum, a decision or order of the IURC which pertains to recovery, disallowance, deferral or ratemaking treatment of any expense, charge, cost or allocation incurred or accrued by Operating Company in or as a result of this Agreement (or any amendment hereto) on the basis that this Agreement and any such expense, charge, cost or allocation was filed with or approved by the SEC.