Simplified Rate Case - More Instructions

The SRC process includes a rate increase factor and benchmark rate of return factor which are revised annually on March 1. These are factors are combined with information from the most recent PSC annual report to check that a utility is financially eligible for an SRC. During January and February utilities have not yet filed their annual reports, so information from the previous annual report is used. For example in February 2005, the 2003 annual report is used. Once the factors are revised on March 1, the annual report from the preceding calendar year must be used. Therefore, a utility must ensure its PSC annual report is filed prior to applying for an SRC.

In addition to the financial eligibility test, this computer application will also check that several other criteria are met to ensure a utility qualifies for an increase using the SRC process. These checks are shown on the following screens and include:

If the utility’s present general service and public fire-protection service rates were authorized in a conventional rate case, they must have been in effect for the full calendar year (January – December) that the above-mentioned PSC annual report covers.
If the utility’s present general service and public fire-protection service rates were authorized in an SRC, the proposed SRC effective date must be at least 12 months after the effective date of the last SRC.
If the utility is a Class AB utility, the requested SRC effective date must be less than five years from the effective date of the last rate increase authorized under the conventional rate case process.
If the utility is a Class C or D utility, the cumulative rate increases authorized under the SRC process must be less than 40 percent higher than the level established in the last conventional rate case.
The proposed SRC effective date must be at least 45 days from both the date on which the application is filed with the PSC and the date of the customer notice.

When selecting an effective date for the new SRC rates, please remember that it must be at least 45 days from the date that the Commission receives the information. If you do not wish to prorate, you should make the rate increase effective for service begining on the date of the utility's first meter reading following the 45 day period (please keep in mind this is unlikely to be a weekend or holiday). Please note that the bills generated based upon that meter reading are for consumption that occurred while the current rates were still in effect. Once the new rates are put into effect, they cover the comsumption that occurs from that date going forward. It is at the next metering reading that the bills generated will reflect the new rates.

If the utility qualifies and wishes to increase rates using the SRC process, it needs to submit the completed application, including customer notice, to the PSC using the Electronic Regulatory Filing (ERF) system on our website. Additional instructions will appear as you complete this application.