RATES TASK FORCE
March 18th, 1999
The outcome of the Board's consultants,
Hagler Bailly's Michael King and Frank Cronin, and Board Staff meeting
with the Board on issues that have arisen from the task forces' (TF) meetings
was discussed. These issues include: the bifurcated approach to PBR to
address the significant variety among utility circumstances; the need for
rate restructuring to address the utility's need to restructure; consideration
of the utilities' transition activities and costs in a first generation
PBR plan; and the Board's public consultation on the rate handbook. The
need for a method of unbundling current rates and for setting the price
floors was discussed. As well, the issue of large use customer pricing
and current utility margin on large use customer rates was discussed. Ramona
Abi Rashed took the task force through her analysis on the impact of market
based rate of return and taxes on revenue.
The work group on distribution services
will examine approaches for establishing price floors. Ramona Abi Rashed
will continue work on the ROR and tax impacts. The rate structure work
group will continue working on rate related issues and on the unbundling
of current rates.
The TF's next meeting will be on March
31, 1999 starting at 9:00 a.m. There is also a subsequent meeting scheduled
for April 15 at 9:30 a.m.