Section 10. Guidelines for special rates, contracts or incentives

Any application for approval of a special rate, contract or incentive filed pursuant to § 56-235.2 of the Code of Virginia shall:

1. Explain in detail the intended purpose of the special rate, contract, or incentive and why current tariffs of the utility are insufficient. Explain how the proposed special rate, contract, or incentive (i) will protect the public interest, (ii) will not unreasonably prejudice or disadvantage any customer or class of customers, and (iii) will not jeopardize the continuation of reliable utility service.

2. Provide a copy of the proposed special rate, contract, or incentive. The applicant shall clearly mark any part of the application or supporting information which it deems should not be subject to public disclosure as "confidential information." Unredacted copies of documents containing information so marked shall be withheld from public disclosure by the clerk of the commission for commission and staff review unless disclosure is ordered by the commission. Copies of documents redacted to exclude confidential information shall be filed and placed in the public file. By commission order or agreement with the applicant, other participants may be provided unredacted copies of documents containing confidential information but shall not disclose confidential information to any person unless permitted to do so by the commission order. The burden for proving the need to maintain confidential treatment will remain with the party seeking it. No commission order shall be issued under this subdivision without notice to the applicant and the owner of such confidential information and an opportunity for them to address the commission with respect to its confidentiality.

3. Describe the characteristics of the customers to whom the proposed special rate, contract, or incentive would apply and, if applicable, identify the tariff under which each such customer would otherwise have taken service. Such characteristics should include, but not be limited to, load factor, load diversity, energy use, and peak demand, and may include energy conservation alternatives.

4. Provide in detail the estimated direct costs incurred to implement the special rate, contract, or incentive.

5. Describe in detail the estimated effect that service provided under the proposed special rate, contract, or incentive will have on total company revenues, total company expenses, and, if appropriate, on the return on rate base for the customer class in which the participating customer resides.

6. Describe in detail the rate impact of the proposal on the company's other customers and explain how the company will ensure that other customers will be protected from bearing any increased rates as a result of the proposed special rate, contract, or incentive. Explain how the utility will allocate or use any resulting benefits.

Utilities may seek an exemption from the analysis required in subdivisions 5 and 6 of this section for customers with total loads aggregating no more than 5 MW. Any such request shall provide an alternative analysis to support the findings required by § 56-235.2 C and D of the Code of Virginia.

Historical Notes

Derived from Volume 14, Issue 15, eff. March 24, 1998.

Statutory Authority

§§ 12.1-13 and 56-235.2 of the Code of Virginia.