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. 

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