ENTITLED, An Act to revise the provisions related to phase in rate plans for plant additions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 49-34A-73 be amended to read as follows:
49-34A-73. Notwithstanding anything in this chapter to the contrary, an electric utility that is subject to rate regulation by the commission and plans plant additions that are expected to have a material impact on rates may make application to the commission for a phase in rate plan to provide for the phase in of expected rate increases resulting from plant additions. The plan may provide for any of the following:
(1) Rate increases to be incrementally phased in prior to the commencement of commercial operation of the plant additions;
(2) To the extent rate increases for plant additions are allowed prior to commercial operation, restrictions on the capitalization of allowance for funds used during construction for the plant additions;
(3) Restrictions on other rate increases; and
(4) Any other conditions which benefit the public interest and may be imposed by the commission consistent with the findings in § 49-34A-74.
Section 2. That § 49-34A-74 be amended to read as follows:
49-34A-74. The commission may approve a phase in rate plan as provided in § 49-34A-73 if:
(1) The electric utility makes application for a phase in rate plan prior to the commencement of or during construction, or prior to acquisition of the plant additions;
(2) The electric utility files with the application a full cost of service analysis as required for general rate increases including a projection of costs and revenue requirements to the date of the anticipated commercial operation of the plant additions or through the term of the
new power purchases;
(3) The commission affords an opportunity for a hearing with notice given as required for any rate increase; and
(4) The commission finds that the phase in rate plan is likely to enhance adequate utility service, rate stability, the financial stability of the electric utility, reasonable capital costs, just and reasonable rates, a fair rate of return, and other considerations that benefit the public interest.
An Act to revise the provisions related to phase in rate plans for plant additions.
I certify that the attached Act originated in the
HOUSE as Bill No. 1120
Speaker of the House
President of the Senate
Secretary of the Senate
House Bill No. 1120
File No. ____
Chapter No. ______
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby approved this ________ day of ______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State