§ 158-794. Cost recovery and incentives.

(a)

Cost recovery. All prudent and reasonable costs incurred by the utility in:

(1)

Developing its plan;

(2)

Preparing and advancing applications for resources consistent with the plans approved by the city council; and

(3)

Implementing full-scale or pilot demand-side programs which have been approved by the city council as part of the utility's action plan;

are properly includable for recovery through general rates, pursuant to the established procedures for adjusting general rates, and/or other appropriate mechanisms.

(b)

Accounting for costs. All costs for developing a least-cost resource plan, preparing and advancing resource options, and for implementing demand-side programs must be accounted for in the utility's books and records separately from accounts attributable to any other activities. All accounts must be maintained in such a manner as will allow these costs to be identified readily. Costs attributable to specific programs must be readily identified.

(c)

Recovery of lost contributions. To the extent that the utility demonstrates that successful implementation of demand-side programs will decrease sales below the volumes which the city council determines would be sufficient to recover fixed costs, the city council may allow the utility to recover lost contributions resulting from implementation of demand-side programs.

(d)

Utility financial incentive mechanisms. Based upon the utility's pursuit of least-cost planning in the city, the city council may, among other approaches, adjust the utility's rate of return on common equity.

(Code 1956, § 52-358)