March 10th, 1999

The Cap Mechanism task forceís (TF) preference for price caps were conveyed to the TF. Members brought up the necessity for exception requirements where customers in a class incurred significantly higher costs than the remaining customers in the class. Need for consultantís study for asset valuation, for consideration of sale of utility or for tax purposes, was identified as issue on which clarification was necessary. Ed Jambor, Chair of the working group investigating distribution rate structure, took the Task Force (TF) through his groups discussions to date and provided some illustrative rates. TF members provided Ed with input on rate structure issues. The TF discussed their suggestions on the groupings of utilities and on setting benchmarks for the groups. The working group noted the issue of service and account variation among the utilities. The possibility of using price caps for the first generation PBR plan was discussed, and using the first plan period to gather baseline data that would establish groupings for the second generation plan. 


The TF was asked to continue with their grouping efforts and to prepare written documentation of their thinking on setting benchmarks for the groupings. 


The next Yardstick Grouping TF meeting is scheduled for April 7th, 1999 starting at 8:30 a.m. 

Return to Previous page