Do other utilities use similar rate design with a decoupling mechanism?
Yes, similar programs are in use by 26 other utilities in 13 other states. In 2007, the Minnesota Legislature passed legislation specifically permitting such a pilot program. DEFINITIONS Basic Charge: Partially covers the cost of those services we provide every month, regardless of how much gas a customer uses. These fixed costs include maintenance of gas service lines and regulators; gas meters; meter reading; billing; maintaining facilities; and vehicles and equipment. BTU: British thermal unit Capital structure costs: The cost of the capital structure (cost of debt and cost of equity). Known as rate of return (ROR) that the company should have an opportunity to earn and also considered as the overall cost of capital. Cost of Gas: Covers the total costs paid to CenterPoint Energy to purchase and transport natural gas to our distribution system. The cost per therm usually varies from month to month as the prices we pay producers and suppliers change, typically increasing in the winter
Related Questions
- Is there some agreement on what the proposed revenue decoupling rate design might look like, if approved by the Commission?
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- When preparing UST system design plans, do the utilities on the site have to be surveyed?
