393.155. Electric corporation's rates, increase in, phase-in of, when, how — powers of commission.

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393.155. Electric corporation's rates, increase in, phase-in of, when, how — powers of commission. — 1. If, after hearing, the commission determines that any electrical corporation should be allowed a total increase in revenue that is primarily due to an unusually large increase in the corporation's rate base, the commission, in its discretion, need not allow the full amount of such increase to take effect at one time, but may instead phase in such increase over a reasonable number of years.

Any such phase-in shall allow the electrical corporation to recover the revenue which would have been allowed in the absence of a phase-in and shall make a just and reasonable adjustment thereto to reflect the fact that recovery of a part of such revenue is deferred to future years. In order to implement the phase-in, the commission may, in its discretion, approve tariff schedules which will take effect from time to time after the phase-in is initially approved.

2. If, after hearing, the commission determines that an electrical corporation, which is a wholly owned subsidiary of a public utility holding company registered under the Public Utility Holding Company Act of 1935, should be allowed an unusually large increase in total revenue which is primarily due to an unusually large increase in expense resulting from the Federal Energy Regulatory Commission regulation of expenses related to a generating facility owned by another wholly owned subsidiary of the same public utility holding company; then the commission, in its discretion, need not allow the full amount of such increase in total revenue to take effect at one time, but may instead phase in such increase over a reasonable number of years.

Any phase-in authorized pursuant to this subsection shall allow the electrical corporation to recover the revenue which would have been allowed in the absence of a phase-in and shall make a just and reasonable adjustment thereto to reflect the fact that recovery of a part of such revenue is deferred to future years, including reasonable financing costs incurred in connection therewith. In order to implement a phase-in authorized pursuant to this subsection, the commission may, in its discretion, approve tariff schedules which will take effect from time to time after the phase-in is initially approved.

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(L. 1984 H.B. 1477, A.L. 1986 H.B. 1429)

Effective 5-01-86