Effective - 28 Aug 2018
393.1640. Growth project, discount rate, when — requirements — expiration date. — 1. Subject to the limitations provided for in subsection 2 of this section, and upon proper application by an eligible customer prior to public announcement of a growth project, a new or existing account meeting the following criteria shall be considered for qualification for the discount set forth in this subsection if:
(1) The customer adds incremental load, net of any offsetting load reductions due to the termination of other accounts of the customer or an affiliate of the customer within twelve months prior to the commencement of service to the new load, with average monthly demand that is reasonably projected to be at least three hundred kilowatts with a load factor of at least fifty-five percent within two years after the date the application is submitted;
(2) The customer receives local, regional, or state economic development incentives in conjunction with the incremental load; and
(3) The customer meets the criteria set forth in the electrical corporation's economic development rider tariff sheet, as approved by the commission, that are not inconsistent with the provisions of this subsection.
The discount shall be a percentage applied to all base-rate components of the bill. The percentage shall be fixed for each year of service under the discount for a period of up to five years. Subject to the remaining provisions of this subsection, the average of the annual discount percentages shall equal forty percent and shall not be less than thirty percent nor more than fifty percent in any year. The discount shall be applied to such incremental load from the date when the meter has been permanently set until the date that such incremental load no longer meets the criteria required to qualify for the discount, as determined under the provisions of subsection 2 of this section. An eligible customer shall also receive a ten percent discount of all base-rate components of the bill applied to such incremental load for one year after the initial discount period ends if the electrical corporation determines that the customer is taking service from an under-utilized circuit. In no event shall a customer receive a discount under this subsection after December 31, 2028. The electrical corporation may include in its tariff additional or alternative terms and conditions to a customer's utilization of the discount, subject to approval of such terms and conditions by the commission. The customer, on forms supplied by the electrical corporation, shall apply for the discount provided for by this subsection at least ninety days prior to the date the customer requests that the incremental demand receive the discounts provided for by this subsection. If the incremental demand is not separately metered, the electrical corporation's determination of the incremental demand shall control. Notwithstanding the foregoing provisions of this subsection, the cents-per-kilowatt-hour realization resulting from application of any such discounted rate as calculated shall be higher than the electrical corporation's variable cost to serve such accounts in aggregate and the discounted rate also shall make a positive contribution to fixed costs associated with such service. If in a subsequent general rate proceeding the commission determines that application of such discounted rate is not adequate to cover the electrical corporation's variable cost to serve such accounts and provide a positive contribution to fixed costs then the commission shall increase the rate prospectively to the extent necessary to do so.
2. In each general rate proceeding concluded after August 28, 2018, the reduced level of revenues arising from the application of discounted rates provided for by subsection 1 of this section shall be allocated to all the electrical corporation's customer classes, including the classes with customers that qualify for discounts under this section. This increase shall be implemented through the application of a uniform percentage adjustment to the revenue requirement responsibility of all customer classes. To qualify for the discounted rates provided for in this section, if incremental load is separately metered, customers shall meet the applicable criteria within twenty-four months after the date the meter is permanently set based on metering data for calendar months thirteen through twenty-four and annually thereafter. If such data indicates that the customer did not meet the criteria for any applicable twelve-month period, it shall thereafter no longer qualify for the discounted rate. The provisions of this section do not supersede or limit the ability of an electrical corporation to continue to utilize economic development or retention tariffs previously approved by the commission that are in effect on August 28, 2018. If, however, a customer is receiving any economic development or retention-related discounts as of the date it would otherwise qualify for a discount provided for by this section, the customer shall agree to relinquish the prior discount concurrently with the date it begins to receive a discount under this section; otherwise, the customer shall not be eligible to receive any discount under this section. Customer demand existing at the time the customer begins to receive discounted rates under this section shall not constitute incremental demand. The discounted rates provided for by this section apply only to base-rate components, with the charges or credits arising from any rate adjustment mechanism authorized by law to be applied to customers qualifying for discounted rates under this section in the same manner as such rate adjustments would apply in the absence of this section.
3. For purposes of this section, "electrical corporation" shall mean the same as defined in section 386.020, but shall not include an electrical corporation as described in subsection 2 of section 393.110.
4. This section shall expire on December 31, 2028, provided, that unless the electrical corporation has timely obtained the order provided for by subsection 5 of section 393.1400, the electrical corporation's customers shall, after December 31, 2023, no longer receive the discounts provided under this section.
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(L. 2018 S.B. 564)
Expires 12-31-28
CROSS REFERENCE:
Nonseverability clause, 393.1675