Rate Development Method, Demand Charge, and Revenue Neutrality Sample Clauses

Rate Development Method, Demand Charge, and Revenue Neutrality. The transmission, generation, and distribution rate peak, mid peak, and off-peak time of use ratios shall be developed in a manner similar to that described in Section II, A. above, except maintaining a demand charge which shall represent 50 percent of the demand charge for the analogous commercial customer rate class. The TOU rate is developed using the analogous commercial customer rate class revenue requirement (as a separate class for commercial electric vehicle charging customers does not exist at this time). As such, it does not recover sufficient revenues from low utilization commercial electric vehicle charging customers. Maintaining 50 percent of demand charge is intended to alleviate the distribution revenue shortfall created by the low utilization stations. A model demonstrating the approximate revenue neutrality on a total xxxx basis and related assumptions is attached to this agreement as Attachment B. The revenue neutrality model assumes a charging station utilization rate of five percent with an annual consumption allocation of 50 percent during the peak period, 30 percent during the mid- peak period, and 20 percent during the off-peak period. The parties stipulate and agree these assumptions are reasonable until they can be updated based on actual observed data for electric vehicle chargers that receive time-varying price signals.
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