Bill Text: DE HB228 | 2009-2010 | 145th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To Personal Income Tax.
Spectrum: Bipartisan Bill
Status: (Passed) 2009-09-01 - Signed by Governor [HB228 Detail]
Download: Delaware-2009-HB228-Draft.html
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SPONSOR: |
Rep. Schwartzkopf & Sen. Bunting |
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Rep. Longhurst |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 228 |
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AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO THE STANDARD USED FOR COST RECOVERY FOR PUBLIC UTILITIES IN PROCEEDINGS INVOLVING A CHANGE IN RATES. |
Section 1.Amend Section 307(a), Title 26 of the Delaware Code by striking the present subsection (a) in its entirety and substituting in lieu thereof the following:
"(a)In any proceeding upon the motion of the Commission, or upon complaint, or upon application of a public utility, involving any existing or proposed rate of any public utility, or any proposed change in rates, the burden of proof to show that the rate involved is just and reasonable, which includes a showing that the rate involved allows for recovery of only those costs or expenses prudently incurred, is upon the public utility.In making the determination of whether a cost or expense was prudently incurred, the Commission shall consider the objective reasonableness of the cost or expense incurred, based on what the public utility knew or reasonably should have known at the time the cost or expense was incurred.The Commission may determine that the cost or expense incurred is only partially prudent, and may adjust the elements of rate base, operating expenses or fuel costs accordingly to reflect that determination.".
Section 2.Amend Section 302, Title 26 of the Delaware Code by striking the phrase "in the exercise of its good faith business judgment" in the first sentence of the second paragraph and inserting the word "prudently" after "all costs which are" and before "incurred by the water utility" in that sentence so that such sentence will read as follows:
"If a water utility is not, pursuant to §122(3)(c) of Title 16, under review concerning its water system's ability to provide adequate service to its customers under its present certificates of public convenience and necessity or subject to a review by the Commission of the appropriate rates to be charged by the water utility in light of the quality of service being provided to its customers, the Commission will include in the utility's rate base, treat as used and useful utility plant, and, accordingly, allow to be fully recovered in the utility's rates without imputation of revenues, all costs which are prudently incurred by the water utility in constructing facilities (including without limitation supply, treatment and transmission facilities) to serve the needs of existing customers or of persons who are reasonably anticipated by the water utility to be its customers within 3 years from the date used by the Commission to recognize rate base in the rate proceeding.".
SYNOPSIS
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This Act requires for a motion of the Commission or for an application by a public utility relating to a public utility's existing or proposed rate, or a proposed change thereof, that the public utility show that the rate involved is just and reasonable, which includes a showing that the rate involved allows for recovery of only those costs or expenses that were prudently incurred. Further, this Act allows a water utility to fully recover in the utility's rates. without imputation of revenues, all costs which are prudently incurred by the water utility in constructing facilities to serve the needs of existing customers or of persons who are reasonably anticipated by the water utility to be its customers within 3 years from the date used by the Commission to recognize rate base in the rate proceeding so long as the water utility is not under review concerning its water system's ability to provide adequate service to its customers or subject to a review by the Commission of the appropriate rates to be charged by the water utility in light of the quality of service being provided to its customers. |
