The North Dakota Public Service Commission (PSC) has decided to consider different types of regulation for electric utilities and has issued a set of criteria to guide interested parties in formulating specific proposals for experimental programs. In a separate statement, however, Commissioner Leo M. Reinbold warned against making too much of the decision.
All proposals must promote increased utility efficiency and flexibility in meeting customer needs while allowing customers and shareholders to share in any benefits. Proposals must also minimize regulatory costs and maintain or improve the current level of service on the state's electric system. The PSC cautioned utilities not to assume that existing rate-base determinations would serve as the starting point for alternative rate proposals, explaining that each must justify that rates reflect the cost of service at the start of the new rate mechanism. Finally, the PSC said that any reforms would be subject to the Territorial Integrity Act, a state law governing the resolution of service disputes between cooperatives and investor-owned utilities. Re Incentive Regulation-Electric Investigation, Case No. PU-439-94-590, Sept. 20, 1995 (N.D.P.S.C.).
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