General Provisions Concerning Cost Allocation and Recovery

(a)Amortization periods.#

(I)For the base rate method, the utility shall propose the amortization period. The utility shall specify and explain the rationale for the amortization period proposed for each DSM program as a part of its DSM plan application, filed pursuant to rule 4753.#

(II)For the expense method, the utility shall recover the annual expenditures projected for that year over a one-year period.#

(b)A utility that provides both regulated gas and electric service shall give consideration to the administrative benefits and reduced costs associated with combining gas and electric DSM activities and shall assign costs and benefits appropriately to each plan.#

(c)Distribution of DSM program expenses.#

(I)The utility shall include in its portfolio-level benefit/cost analysis all indirect costs relating to DSM, including but not limited to DSM customer education, program design, and evaluation costs.#

(II)A utility's existing gas efficiency and conservation customer education tools, such as on-line energy assessment tools or other similar internet based tools, may be included in a utility's gas DSM plan and costs recovered pursuant to a gas DSM cost adjustment consistent with rule 4758.#

(d)Decoupling.#

(I)The utility may file for approval of a revenue decoupling mechanism to remove disincentives to the implementation of effective gas DSM programs.#

(A)The decoupling rate adjustment mechanism shall ensure that the revenue per customer, as established by the Commission, in setting base rates in a general rate case, is recovered by the utility without regard to the utility's sales to customers in the applicable rate class or classes after the date the adjusted base rates take effect.#

(B)The Commission shall separately calculate, for the rate class or classes to which a decoupling rate adjustment mechanism applies, the regulatory disincentives removed through that decoupling mechanism and collected or refunded by the utility through a tariff mechanism.#

(II)The implementation of a revenue decoupling mechanism does not preclude a utility from receiving a G-DSM bonus pursuant to rule 4760.#