2.6. ERMUSR 06-14-2016 - Laserfiche WebLink

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TASK ORDER#2 classified as demand, energy, customer, revenue-related or direct assignment cost related as to their classified purpose. Based on the classified costs within each function, the revenue requirements are allocated to each of the customer classes. Demand allocators are used for demand classified costs, energy allocators are used for energy classified costs and customer allocators are used for customer classified costs. Based on this analysis, the allocated cost to serve each customer class is determined. The allocated cost to serve each class is then compared to the revenues received from that class to determine if any class-specific revenue adjustments are warranted. Additionally, the cost-of-service study yields specific demand, energy and customer related costs for each class which can be utilized in the design of demand, energy and customer charges for each class of customers. Task 5— Interim Report An interim report will be prepared summarizing the analyses prepared to date. This interim report will be sent to Client staff for review and comment. The purpose of the interim report is to clearly demonstrate to Client the basis for moving forward with rate design. Task 6— Rate Design Discussion A telephone conference call will be conducted with Client staff to discuss specifics related to alternatives for consideration in the design of proposed retail rates. Task 7— Rate Design Based on the revenue needs of the utility, the results of the cost-of-service analysis and discussions with Client staff, proposed rates will be developed for each of the retail customer classes. The rates will be designed to meet the overall revenue goals of the utility as well as specific Client rate design goals. Specific rate design issues to be addressed include: • Distributed generation net metering • Solar access charge • Wholesale cost shifts • Time of use and off peak rates • Load management programs • Economic development • Standby tariff 2 71