PUBLIC SERVICE COMMISSION CHARLESTON

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1 At a session of the OF WEST VIRGINIF at the Capitol in the City of Charleston on the 22nd day of January, $976. CASE NO HARRISON RURAL ELECTRIFICATION ASSOCIATION, INC. In the matter of increased rates and charges. On the 26th day of March, 1975, Harrison Rural Electrifica- tion Association, Inc., filed an application containing revised rate schedules superseding all of its tariff schedules subject to this Commission's jurisdiction containing a fuel adjustment clause, in accordance with the Commission's order of February 28, 1975, in Case No. 7945, which terminated the fossil fuel adjustment clause effective as of midnight, March 31, The Commission's order in Case No permitted superseding tariff sheets to be filed effective April 1, 1975, with increases in the base rates to be based solely on the incremental increase in fossil fuel costs over what was previously allowed by this Commission in the particular electric utility's last finally approved base rates. These rates were to be filed, along with supporting data of the total cost of fossil fuel, for the twelve-month period ending February 28, The higher base rates purportedly filed by Harrison Rural Electrification Association, Inc. pursuant to our order, were effective April 1, 1975, subject to possi- ble reduction and refunds after hearing and the Commission's determination on the record in this proceeding. By order entered May 30, 1975, Harrison Rural Electrification Association, Inc. was made respondent in this proceeding and upon notice to the public, the matters involved herein were set for hearing in the City of Charleston on July 7, Proper notice was given and the hearing was held on July 7, At, the hearing the respondent was represented by Howard Caplan, Attorney at Law. The Commission's Staff was represented by Tom A. I----"-- PUBLIC SERVICE COMMILSSION

2 Hanna, Legal Division, David Ellis, Rate Analyst, Division of Accounts, Finance and Rates; and David A. Matthews, Engineering Division. There were no intervenors or Protestants. By order entered September 30, 1975, this matter was set for further hearing, upon notice to the public, at the Harrison County Courthouse in the City of Clarksburg on October 24, 1975, for the purpose of entertaining protests and receiving evidence on the issue of rate design from Protestants in the Harrison and Upshur County areas served by Monongahela Power Company and Harrison Rural Electrification Association, Inc. Case No. 8127, E'lonongahela Power Company, a corporation, was set for further hearing at the same time and place for the same purpose. Proper notice was given and the hearing was held on October 24, At the hearing the respondent was represented by Howard Caplan, Attorney at Law. The Commission's Staff was represented by Willard L. Brown, Legal Division; David Ellis and Thomas Wagoner, Rate Analysts, Division of Accounts, Finance and Rates: and David A. Matthews, Division of Engineering, - EVIDENCE _..I The Harrison Rural Electrification Association, Inc., (herein after Harrison) is a non-profit organization delivering electric service to approximately 3050 members in Barbour, Doddridge, Harrison, Lewis, Marion, Taylor, and Upshur Counties. Harrison j-s a distribution company purchasing electricity from Monongahela Power Company (Monongahela). The sale of electric power by Monongahela is regulated by the Federal Power Commission. Harrison's witness, John A. Rogers, sponsored a fossil fuel cost "roll-in" unit of 8.09 mills per KWH sold in its base rates effective April 1, This increment for fossil fuel was included in the witness' sponsored "roll-in" total of 1.1 cents per KWH sold, which is a sum of the fossil fuel increment and the wholesale power adjustment clause increment. The Staff calculations for determining the appropriate level of fossil fuel costs were based on actual costs through the month of

3 June of The computation by Staff resultsin a 6.05 mills per KWH increment. This increment of 6.05 mills per KWH sold does not include any allowance for line loss. After application of line loss and rounding, the resultant increment is 7 mills per KWH sold. The Commission finds 7 mills per KWH sold the proper fossil fuel cost "roll-in" increment. On the 4th day of February, 1975 in Case No, 8116, this Commission finally approved as part of the tariffs of Harrison, a Wholesale Power Cost Adjustment Clause which allowed, after compu- tation, the flow through of increased wholesale power rates to I customers of Harrison. The Commission approved 1.71 mills per KWH sold as the Schedule PCA adjustment for the higher cost o electricity purchased from Monongahela, the increased rate having been approved by the Federal Power Commission, effective January 1, The decision in Case No; 8116 is consistent with computations that this Commission would make in any Rule 30-B filing regardless of whether or not Harrison had a Wholesale Power Cost Adjustment Clause in its tariff. Therefore, there is no need for the Clause in its tariffs for it can receive timely rate relief through a normal proceeding. COMMENTS The rates applied for in this proceeding arose through a formal rate filing in compliance with the Commission's order in Case No The increase sought is not an "automatic" one and is distinguishable from increases under the utility's former fuel adjustment clause. The respondent is to be commended for its initiative in rolling in the wholesale power adjustment into its rates effective April 1, 1975, thereby eliminating the Wholesale Power Cost Adjustment Clause from its tariff and the Schedule PCA, FINDINGS In addition to the foregoing decisional findings and conclusions, the Commission finds that: -3-

4 1. The rates and charges contained in the proposed rate schedules attached to the application designated as: Schedule A - Farm and Home Service Schedule B - Commercial and Small Power Service Schedule LP - Commercial and Industrial Service Schedule Security Lighting; all of which were issued March 26, 1975, and put into effect April 1, 1975, by terms of the West Virginia Code, Chapter 24, Article 2, Section 4, and the order of this Commission issued February 20, 1975, in Case No. 7945, et. al., Investigation of Fuel Adjustmes - a., - - I _I Clauses of Electric Utilities, are unjust and unreasonable for the reason that they will produce more revenue than are necessary to enable the Harrison Rural Electrification Association, Inc. to recover its reasonable and necessary total fossil fuel costs, as well as line loss associated therewith. 2. The rates and charges hereinafter approved are just and reasonable in that they will produce enough revenue, but not more than enough, to enable the Harrison Rural Electrification Association, Inc. to recover its reasonable and necessary total fosil fuel costs, as well as line loss associated therewith. 3. The Schedule PCA and the related section in the tariff sheets above styled Wholesale Power Adjustment Clause, are hereby canceled and stricken from the tariff files of this Commission. 4. The respondent shall refund to each of its customers within sixty (60) days of the date of this order the difference between the revenues collected under the rates and charges set forth in the rate schedule filed on March 26, 1975, and the amount which would have been collected under the rates and charges hereafter authorized and approved. 5. The 1.71 mills per KWH sold increment approved in Case No is added into the rates and charges hereafter authorized I and approved. ORDER -I* The tariff sheets described in Paragraph one (1) of the FINDINGS set forth above and issued March 26, 1975, are hereby cancelec

5 I_- _I and stricken from the tariff files of this Commission. 2. The respondent's Schedule PCA and Wholesale Power Cost Adjustment Clause is hereby canceled and stricken from the tariff files of this Commission. 3. The following rates and charges are hereby authorized and approved effective April 1, 1975:,-.-*a SCHEDULE A FARM AND HOME SERVICE v Available to farm and home consumers for all uses in the home and on the farm, subject to the established rules and regulations of the cooperative. TYPE OF SERVICE - 3- Single-phase, 60 cycle, at available secondary voltages. MONTHLY RATE Fj-rst 25 KWH per month $ 9.9 cents per KWH Next 25 KWH per month 5.9 cents per KWH Next 200 KWH per month 4.4 cents per KWH Next 500 KWH per month 2.9 cents per KWH Over 750 KWH per month 2.4 cents per KWH MINIMIJM MONTHLY CETARGE.--LI - The minimum monthly cxarge shall be $2.77. TERMS OF - PAYMENT The above rates are net, the gross rates being five per cen higher. In the event the current monthly billing is not paid by the 22nd of the current month, or on the first day thereafter, if the 22nd is a Sunday or Holiday, the gross rates shall apply. - SCHEDULE B COMMERCIAL AND SMALL POWER SERVICE AVAILABILITY AGailable to commercial and small power consumers and three phase farm consumers for all uses, including lighting, heating, and power, subject to the established rules and regulations of the seller Services under this schedule are limited to customers whose load requirements can be met by a transformer having a capacity not to exceed 49 KVA. Service under this schedule is not available to consumers on a temporary basis unless otherwise provided for. TYPE OF SERVICE ----ly_-- Single-phase or three-phase, 60 cycles at avail.able seconda voltages, MONTHLY RATE _1 11_- First Next Next Next Over 100 KWH 150 KWH 1750 KWH 2000 KWH 4000 KWH $ 7.4 cents per KWH 5.7 cents per KWH 4.1 cents per KWH 3.1 cents per KWH 2.6 cents per KWH OF WEGT VIRGINIA -5-

6 I.---. MINIMUM MONTHLY CHARGE *e - The minimum monthly charge under the above rate shall be $7.40 for single-phase service and $18.72 for three-phase service. TERMS OF PAYMENT *_1_-. The above rate is net, the gross rate being five per cent higher. In the event the current monthly bill is not paid by the 22nd day of the current month, or on the first day thereafter, if the 22nd day is a Sunday or Holiday, the gross rate shall apply. SCHEDULE L-P -_u I -^_-. AVAILABILITY COMMERCIAL AND INDUSTRIAL SERVICE Available to all consumers located on or near the lines of the cooperative, contracting for a load of 50 KW or more, for all uses subject to the established rules and regulations of the cooperative. TYPE OF SERVICE Three-phase, 60 cycles, at avdilable voltages. Demand Charge: First Next Over 50 KW of billing demand at $2.15 per KW 50 KW of billing demand at 1.75 per KW 100 KW of billing demand at 1.50 per KW Energy Charge: First 4000 KWH per month.. i $ per KWH Next 5000 KWH per month $ per KWH Next 6000 KWH per month per KWH Over KWH per month... l.8& per KWH -- POWER FACTOR ADJUSTMENT - The consumer agrees to maintain unity power factor as nearly as practicable. The measured demand will be adjusted for consumers with 50 KW or more of measured demand to correct for average power factors lower than 90% and may be so adjusted for other consumers if and when the seller deems necessary. Such adjustments will be made by increasing the measured demand 1% for each 1% by which the average power factor is less than 90% lagging, - MINIMUM MONTHLY CHARGE I- The minimum monthly charge shall be the highest one of the following charges: 1. the minimum monthly charge specified in the contracl for service. 2. the billing demand. 3. a charge of $ MINIMUM ANNUAL CHARGE FOR SEASONAL SERVICE Iu--_II rr U~ Consumers requiring service only during certain seasons not exceeding nine months per year may guarantee a minimum annual payment, in which case there shall be no minimum monthly charge. The minimum annual payment shall be twelve times the minimum monthly charge determined in accordance with the foregoing section PUBLIC SERVICE COMM16810N - 6- CHARLPWON -- I

7 SERVICE AT PRIMARY VOLTAGE I If service is furnished at primary distribution voltage, a discount of 7 per cent shall apply to the demand and energy charges. However, service may be metered at secondary voltage and adjusted to primary voltage by adding the estimated transformer losses to the metered kilowatt-hours and kilowatt demand. TERMS OF PAYMENT The above rates are net, the gross rates being five per cent higher. In the event the current monthly bill is not paid by the 22nd day of the current month, or on the first day thereafter, if the 22nd day is on a Sunday or Holiday, the gross rates shall apply.. AVAILABILITY SECURITY LIGHTING L- (INDIVIDUAL CONTROLLED ,-- STREET LIGHTS) Available to all members of this Association who are now receiving or will receive Security Light Service. RATE P MINIMUM CHARGE $ '4.11 per month for each light $ per year when paid in advance The minimum charge will be $4.11 per month for a per,od of one year, or $43.32 per year for each light, when paid in advance. A penalty of 5% of the charge will be added if current monthly bill is not paid by the 22nd day of the current month, or on the first day thereafter, if the 22nd day is a Sunday or Holiday. CONDITIONS OF SERVICE The Association will install, furnish electricity, maintain and replace bulbs, on a four (4) foot standard arm, equipped with a replaceable photocell control unit and an approved reflector. The Security L,ight will be mounted on an existing pole at the above rate. If a special pole is needed, the member requesting the service will. be charged the cost of installing the pole or at the election of the Association add a charge of $1.25 per month to the basic monthly rental charge. The bulb to be used will be a vapor type, with no less than 3,3000 lumens, with a rated life of not less than 6,000 hours. A contract for three years' service must be signed. 4. The respondent shall refund the difference between the amounts collected under the rates and charges set forth in the rate schedules contained in the application filed March 26, 1975 and the amounts which would have been collected under the rates and charges -7-

8 herein authorized and approved, and shall promptly report such refunds to the Commission. Chairman NPB:gh - 8-

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