§ 69.266. Cost recovery.

 In evaluating utility CAPs for ratemaking purposes, the Commission will consider both revenue and expense impacts. Revenue impact considerations include a comparison between the amount of revenue collected from CAP participants prior to and during their enrollment in the CAP. CAP expense impacts include both the expenses associated with operating the CAPs as well as the potential decrease of customary utility operating expenses. Operating expenses include the return requirement on cash working capital for carrying arrearages, the cost of credit and collection activities for dealing with low income negative ability to pay customers and uncollectible accounts expense for writing off bad debt for these customers. When making CAP-related expense adjustments and projections, utilities should indicate whether a customer’s participation in a CAP produced an immediate reduction in customary utility expenses and a reduction in future customary expenses pertaining to that account.

   The provisions of this §  69.266 adopted July 24, 1992, effective July 25, 1992, 22 Pa.B. 3914.

   This section cited in 52 Pa. Code §  69.262 (relating to definitions); 52 Pa. Code §  69.263 (relating to CAP development); and 52 Pa. Code §  69.267 (relating to alternative program designs).