RATEMAKING TREATMENT. At the time of a general rate proceeding the portion of GMO’s revenue requirement associated with the incremental costs net of PPA net revenues to serve Nucor consistent with Exhibit 1 shall be assigned to Nucor. Nucor’s rate revenues shall be reflected in GMO’s net revenue requirement. If Nucor’s revenues do not exceed Nucor’s costs as reflected in the revenue requirement calculation through the true-up period, GMO will make an additional revenue adjustment covering the shortfall to the revenue requirement calculation through the true-up period, to ensure that non-Nucor GMO customers will be held harmless from such effects from the Nucor service. In no event shall any revenue deficiency (that is, a greater amount of Nucor incremental costs compared to Nucor revenues) be reflected in GMO’s cost of service in each general rate proceeding for the duration of Nucor service during the terms of the contract between GMO and Nucor (Confidential Schedule DRI-2 of GMO witness Xxxxxx Xxxx).
RATEMAKING TREATMENT. 5.1. The Parties agree that this Agreement shall be contingent upon Commission approval of the following accounting and ratemaking treatment of the amounts payable under this Agreement. Both I&M and the City shall support the following proposal.
5.1.1. The fair value of the Property based upon reproduction cost new less depreciation will be recognized for ratemaking purposes as rate base assets in I&M's next general Indiana rate case; and
5.1.2. The value of extinguishing the City's claims referenced in Sections 3.1.1, 3.1.2.2, and 3.1.2.3 will be recorded by I&M in Other Regulatory Assets and the appropriate annual amount will be recognized for ratemaking purposes as an expense in I&M's Indiana cost of service, as follows:
5.1.2.1. Prior to I&M's next general Indiana rate case, the regulatory asset will be amortized on a straight-line basis in an annual amount of $1.186 million, representing the annual Lease payment recognized for ratemaking purposes in I&M’s current Indiana retail rates.
5.1.2.2. Beginning with I&M's next general Indiana rate case, the regulatory asset will be amortized on a straight-line basis over the remaining life of the stream of payments set forth in this Agreement. The regulatory asset will continue to be recognized in subsequent rate cases until fully amortized.
RATEMAKING TREATMENT. (a) All incremental costs to implement the terms of this Agreement that MGE incurs between now and the effective date of rates in its next general rate case will be borne by MGE. MGE will not seek to defer such incremental costs for future recovery. Such incremental costs include, but are not limited to, costs incurred: (i) to organize and attend meetings to develop statewide emergency coordination policies; (ii) to develop and distribute informational materials associated with such efforts; (iii) to meet with individual fire departments and other first responders; (iv) to review, revise and implement training materials; (v) to implement restricted zone shut-off procedures, and
(vi) to initially purchase any communications equipment in connection with 3(2)(C). Such incremental costs shall not be included with any costs deferred and recorded in FERC Account No. 182 by MGE pursuant to Paragraph 17 of the Stipulation and Agreement in GR-2014-0007. Such incremental costs shall not be included in any cost of service used for ratemaking that is filed or submitted by the Company prior to the effective date of rates in its next general rate case.
(b) MGE may include any ongoing costs related to this Agreement in any cost of service used for ratemaking that is filed or submitted by the Company after the effective date of rates in its next general rate case, and any party may take any position on the appropriate ratemaking treatment for those costs at that time.
(c) MGE shall fully track the incremental costs it incurs to undertake these activities, and provide such information to Staff upon request. MGE shall meet with Staff upon request and report on the progress of its commitments under this Agreement.
RATEMAKING TREATMENT. Notwithstanding the transfer, sharing, management, conveyance, marketing or crediting of RECs and Carbon Credits, or the value of any or all of them, pursuant to this Exhibit H, BPA reserves any ratemaking authority it otherwise possesses to determine and factor in a share of the value and/or cost of any or all of the RECs and Carbon Credits for the purpose of: (1) determining applicable wholesale rates pursuant to section 7(c)(2) of the Northwest Power Act; and (2) establishing the rate(s) applicable to BPA sales pursuant to section 5(c) of the Northwest Power Act in a manner that BPA determines provides an appropriate sharing of the benefits and/or costs of the federal system and comparably reflects treatment of RECs and Carbon Credits in the calculation of a utility’s average system cost of resources. BPA further reserves its ratemaking authority to recover any costs resulting from such ratemaking actions through rates, including rates applicable to Jefferson. This paragraph does not constitute Jefferson’s agreement to statutory ratemaking authority BPA does not otherwise have.
