69-3-712. Commission to include conservation and demand-side management programs in rate base -- rate of return.
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69-3-712 . Commission to include conservation and demand-side management programs in rate base -- rate of return.
(1)In order to encourage the purchase of or investment in conservation by a utility, the commission may include conservation purchases or investments and demand-side management programs eligible under 69-3-702 and in compliance with criteria adopted under 69-3-711 and 69-3-1201 through 69-3-1209 in a utility's rate base.
(2)In establishing the rate of return, the commission may allow an increment of up to 2% added to the rate of return on common equity permitted on the utility's other investments.
(3)The commission shall allow the rate of return increment provided for in subsection
(2)for a period not to exceed 30 years after the conservation is first placed in the rate base.
(4)The commission shall prescribe amortization periods for conservation that is included in a utility's rate base.