Earlier this month, BEL made a request for an increase in the mean electricity rates during what is known as the annual review period. Well the decision arrived to our newsroom an hour ago, and the primary outcome is that in its initial decision, the PUC denied that rate increase request.
As part of the initial decision, the PUC notes Quote, "BEL has requested that the PUC recognize an additional 14.7 million dollars for excess costs on electricity purchases that the company anticipates it will incur between January and June of 2023.
Cumulatively, the Amendment Submission from BEL estimates that the excess Cost of Power over the Annual Tariff Period 2021/22 and 2022/23 will be 43.2 million dollars.
BEL indicates that it is not seeking to recover the excess Cost of Power, but rather, it intends to register the sum of 43.2 million dollars with the PUC as recoverable under future tariff adjustments..." End Quote.
The initial decision then goes on to say that to offset that under-collection under the current rates will amount to those 42.3 million dollars, and it would result in an increase in tariffs by a minimum of 4.6 cents per kilowatt hour over the Full Tariff Period.
The PUC has perused its figures and justifications, and they have since determined there were errors and omissions.
Consequently, the PUC's determination is, quote. "
"a). BEL's ARP 2022 Amendment submission is rejected. BEL
b) BEL is to undertake a more rigorous analysis and consideration to be prepared for and submitted in the upcoming 2023 Annual Review Proceedings.
[and] c) Schedule 6 of ARP 2022 Final Decisionâ€¦ remains unchanged for January 1, 2023, to June 30, 2024." End quote.
Of course, this is an initial decision. We will seek comments from BEL on this outcome.