Simplified Rate Case

FAQs: Simplified Rate Case Process

How do I know if my utility qualifies for a Simplified Rate Case (SRC)?

The utility must meet three criteria:


1. The rate of return test:

    ◾ If the SRC increase is granted, the rate of return must not exceed the annually updated benchmark rate of return.
    ◾ Alternatively, if the SRC increase is granted, the net operating income must not exceed 6 percent of operations and maintenance expenses.

2. The present rates test:

    ◾ If the utility’s present rates were authorized in a conventional rate case, they must have been in effect for at least a full annual reporting cycle, which is a calendar year. The annual report that covers this calendar year must have been filed with the PSC so the rate of return can be reviewed.
    ◾ If the utility’s present rates were authorized in an SRC, they must have been in effect for at least 12 months.

3. The last full rate case test:

    ◾ For class AB utilities, the requested effective date of the SRC must be within 5 years of the effective date of the last conventional rate case.
    ◾ For class C and D utilities, the cumulative increase of all SRCs since the last conventional rate case must not exceed 40 percent.

 

How do I file for a SRC?

A utility can file for a simplified rate case here: Simplified Rate Case Application (SRC)


Once the utility submits the application, a PDF of the application is created and the case proceeds in the following five steps.


    1. The utility publishes the customer notice in the newspaper or mails it directly to its customers.
    3. The PSC accepts the application and assigns a docket number.
    4. PSC staff processes the SRC rate increase request.
    5. The PSC issues a rate order and prepares and emails the revised rate sheets to the utility for its records.

PSC staff will try to process an SRC application within 30 days after it is submitted. Usually the process takes less than two weeks. The rates can be made effective 45 or more days after the application is submitted.