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PUC Recommends Establishment of a Ratemaking Working Group (RWG) to Modernize Utility’s Ratemaking Process
On September 10, 2026, Chairman DeFrank file a motion regarding the establishment of Ratemaking Working Group (RWG).
The Chairman states that the purpose of the RWG would be to create an initial report, and potential future reports, detailing proposals to modernize and revise ratemaking parameters an processes.
Among other things the RWG would research the value of moving ROE litigation into separate cost-of-capital proceedings, handled outside of individual utility rate cases.
The Chairman also proposes that the RW should review appropriate industry-specific performance metrics that the Commission could apply to company-specific ROEs.
He also proses the establishment of the ROE Utilized in the Distribution System Improvement Charge (DSIC) as he believes it is “prudent to evaluate migrating from the informed judgement process to a strictly formulaic process.”
See also Vice Chair’s Statement.
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