3 AAC 48.550 - Rate design

(a) The customer or fixed charge may recover only those customer costs defined in 3 AAC 48.540(f) (1)(A) and (B). However, the commission will, in its discretion, consider requests to increase or decrease the fixed charge when the electric utility or any other party submits to the commission appropriate justification and analysis which relates to its pricing objectives.

(b) Each electric utility shall use flat rates as the standard rate form for all customer classes. However, the commission will, in its discretion, upon submission of appropriate justification and analysis, including load research data, approve an alternative rate form.

(c) An electric utility may recover demand costs through rates as follows:

(1) each electric utility shall implement a three-part rate that includes a customer charge, a demand charge, and an energy charge to at least all customers consuming in excess of 7,500 kilowatt-hours per month or with a maximum demand of 20 kilowatts per month for three consecutive months; or

(2) in the absence of a separate demand charge as provided for under (c)(1) of this section, demand costs are recoverable through the energy charge.

(d) Conditions for use of seasonal rates by an electric utility are as follows:

(1) each electric utility shall implement seasonal rates where the rates are demonstrated to be cost-justified and cost-beneficial for the utility system; and

(2) each electric utility that sells 100,000,000 kilowatt-hours or more annually shall provide, upon reasonable notice by the commission, appropriate cost-of-service analysis and cost-benefit analysis that address the reasonableness of implementing seasonal rates.

(e) Based on its cost-of-service analysis in conformance with 3 AAC 48.540(c) - (h), each electric utility shall submit its preferred or recommended rates for all customer classes.

(f) The recommended or preferred rates submitted by an electric utility in compliance with (e) of this section must be accompanied by the following:

(1) a comparison or summary of existing and proposed new rates for each customer class; and

(2) a customer bill impact analysis which illustrates the percentage impact of the proposed rates at various levels of customer usage.

(g) Each electric utility shall design and, upon approval of the commission, distribute informative and understandable customer bills. Customer bills must, at a minimum, separately identify the following information for the billing period: customer charges; total kilowatt-hour consumption and associated energy charges; monthly kilowatt maximum demand and associated demand charges; and the energy surcharge, if appropriate. If billing is based upon an estimate, the customer bill must reflect this information.

Notes

3 AAC 48.550

Eff. 11/22/84, Register 92

Authority:AS 42.05.141

AS 42.05.151

AS 42.05.361

AS 42.05.381

AS 42.05.391

AS 42.05.691