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.