IMPLEMENTATION
TASK FORCE
SIXTH MEETING
MINUTES
March 30th, 1999
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OVERVIEW:
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The task force (TF) discussed what might
be achievable in the first generation PBR plan considering the lack of
uniformity of information going into the plan. Measurement of performance
against a utility's own historic performance rather than by grouping was
discussed for the first generation plan. For the service reliability standards
the use of the CEA national averages as a safety net was suggested. A possible
financial consequence of coming short of a standard in terms of having
the shareholder reinvest to cover the cost of coming up to standard was
discussed. Note was made that enforcement of the standards would be difficult
unless there is some form of enforcement mechanism. Thus a process needs
to be in place by which the Board would require explanation when a utility's
performance falls below the minimum requirement. This process should include
description of utility's remedial action. The proposed time line for the
implementation of PBR was described. In addition a process was proposed
for the Board's public consultation on the draft Rate Handbook, as well
as for the review of the individual utility's evidence in support of their
rate application. The use of interim rate orders to streamline the review
of evidence from a large number of distributors without causing a delay
in the implementation of the PBR plans was proposed. The subject of earnings-sharing
was then broached including a discussion on an asymmetric earnings-sharing
mechanism.
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ASSIGNMENTS:
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Further development on earnings-sharing
mechanism and enforcement was identified. A preliminary analysis of the
utility's survey on service quality performance indicators will be prepared
for the next meeting by Board Staff.
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