SB 848 - This act modifies provisions relating to rate schedules authorized for certain utilities outside of general rate proceedings.
Currently, gas corporations may make an application to the Public Service Commission to approve rate schedules authorizing periodic rate adjustments outside of a general rate proceeding to reflect certain non-gas revenue effects. This act repeals this provision.
Under this act, any gas, water, or sewer corporation may file revenue stabilization rate schedules with the Public Service Commission that authorize periodic rate adjustments outside of general rate proceedings to ensure that revenues collected by the corporation do not vary from the revenues authorized by the Commission in the corporation's last general rate proceeding due to certain factors set forth in this act. The corporations may include in such rate schedules revenue variations based either upon average revenue per customer for each applicable customer class or overall revenue for each applicable customer class by tariff district. Such basis shall be used consistently while such revenue stabilization rate schedules are in effect. Certain revenue variations between general rate proceedings set forth in this act shall be excluded from any adjustments made under revenue stabilization rate schedules.
Under this act, one year after the effective date of a revenue stabilization rate schedule, the corporation's filings shall include a reconciliation component as set forth in this act. Further, 30 days after the effective date of a revenue stabilization rate schedule, the corporation shall file revised rate schedules to return or collect over the next year the difference between revenues collected during the previous year and the revenues authorized by the Public Service Commission in the corporation's most recent general rate proceeding. Between each annual revenue stabilization rate schedule filing, the corporation may also make quarterly adjustments that take effect within 10 business days, and that are subject to reconciliation during the corporation's next annual revenue stabilization rate schedule filing. A corporation may also renew or terminate a revenue stabilization rate schedule following the corporation's general rate proceeding as set forth in this act.
The Public Service Commission shall review revenue stabilization rate schedules for exclusive purposes set forth in this act.