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PCG » Topics » Transmission Owner Rate Cases

This excerpt taken from the PCG 10-K filed Feb 18, 2005.

Transmission Owner Rate Cases

        Under the FERC's regulatory regime, the Utility is able to file a new base transmission rate case under the Utility's transmission owner tariff whenever the Utility deems it necessary to increase its rates within certain guidelines set forth by the FERC. The Utility is typically able to charge new rates, subject to refund, before the outcome of the FERC ratemaking review process.

        The Utility's transmission owner tariff includes two rate components:

    •
    Base transmission rates, which are intended to recover the Utility's operating and maintenance expenses, depreciation and amortization expenses, interest expense, tax expense and return on equity; and

    •
    Rates to recover ISO charges for both reliability service costs and an ISO charge associated with a ten-year shift from utility-specific transmission charges to an ISO grid-wide charge, both of which are discussed below.

        The Utility derives the majority of the Utility's transmission revenue from base transmission rates.

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