Current through Register Vol. 54, No. 45, November 9, 2024
Section 54.190 - Universal interest applicable to over collections and under collections resulting from reconciliation of automatic adjustment clauses costs and revenues related to electric default service(a)General rule. This section applies to automatic adjustment clauses related to electric default service filed with the Commission by a DSP under § 54.187(b) (relating to default service rate design and the recovery of reasonable costs).(b)Definitions. The following words and terms, when used in this section, have the following meaning, unless the context clearly indicates otherwise: Costs-The total amount of expenses, or class of expenses incurred, which is the basis of the automatic adjustment clause.
Over collection-The amount equal to revenues received under an automatic adjustment clause which exceeds the amount of costs incurred.
Revenue-The total proceeds received under the automatic adjustment clause.
Under collection-The amount equal to costs incurred under an automatic adjustment clause which exceeds the amount of revenues received.
(c)Interest collectible on over collections and under collections. When revenues exceed costs, the over collections shall be refunded to customers with interest. When costs exceed revenues, the under collections shall be collected from customers with interest. Interest on over collections and under collections shall be computed at the prime rate of interest for commercial banking, not to exceed the legal rate of interest, in effect on the last day of the month the over collection or under collection occurs, as reported in the Wall Street Journal. Interest shall be computed monthly from the month the over collection or under collection occurs to the effective month that the over collection is refunded or the under collection is collected.The provisions of this §54.190 adopted December 18, 2015, effective 12/19/2015, 45 Pa.B. 7161. This section cited in 52 Pa. Code § 54.187 (relating to default service rate design and the recovery of reasonable costs).