ML19347E665
| ML19347E665 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 04/19/1979 |
| From: | Thierfelder W PENNSYLVANIA, COMMONWEALTH OF |
| To: | METROPOLITAN EDISON CO. |
| Shared Package | |
| ML19347E637 | List:
|
| References | |
| C-79040829, NUDOCS 8105130197 | |
| Download: ML19347E665 (3) | |
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PENNSYLVANIA PUBLIC UTILITY COHitTSSION liarrisburg, PA 17120 Public Meeting held April 19[1979 Commissioners Present:
W.WilsonGoode,dhairman Louis J. Carter, concn%,in part and dissenting in part Michael pthmrutt Pennsylvania Public Utility Commission v.
Docket No. C-79040829 Metropolitan Edison Company, Respondent CRDER BY THE COHr!ISSION:
On March 22, 1979, the Commission voted at Docket No. R-78060626 to grant Metropolitan Edison Company a rate increase which would produce
$49,173,000 in additional annual jurisdictional revenues.
The basis for
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that rate incrcace was the recovery of costs associatud with the Three Mile Island Power Ctation, Unit No. 2 (TMI-2), which went 'into commercial operation in December,1978.
Since the Commission's final determination at R-78060626, the Respondent's ope rations have been totally transformed.
As a result of the incident at the Three Mile Icland Power Station on March 23, 1979
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and therea f ter, Unit No. 2 has been rendered i.e. operable for an indefinite period.
The basic assumption at the root of Respondent's rate increase.
that Unic No. 2 was useful property in servic'e to the public,is no longer valid.
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The Commission has instituted its own complaint against the Respondent's races.
Prompt hearings will be held before the Commission itscif in neder to ensure timely decisions.
The Commission will avoid 81051308$1
O any extreme or precipitous action, and remains aware that the provision s
of adequate, reliable, continuous electric service requires the confidence of in.astors wiio provide the' large amounts of capital needed by electric utilities.
At the same time the Commission cannot and will not sit back and allow the ratcpayers, by. default, to'be saddled with all of the costs of this incident.
There will be no automatic pass-through of costs to consumers without justification and full opportunity for all to be, heard.
Rates at all times must be based on the reasonable costs of providing service.
THI-2 is now inoperable, and will not be uscable for an indefinite period.
It is no longer used and useful in the public service.
O The Commission has examined the Respondent's annual and quarterly reports, the record at R-73066526, and the responses of Respondent in the informal investigation of the incident at the Three Mile Island Power Station, and is of the opinion
- hat Respondent's present rates produce a return in excess of a fair return upon the fair value of Respondent's' property which is used and useful in the public service. The Commission will,
' I therefore, prescribe for a trial period of six months temporary rates pursuant to 66 Pa..C.S. 5 1310(d).
Based upon the final determination by this Commission at R-73060626 and the exclusion of the costs associated with THI-2', the Commission could conclude that rates lest chan those in effect prior to I
R-73060626 would produce a fair return up'on the fair value of Respondent s O
ured and useful property.
However, if there is a risk of error, we vill err in favor of the Respondent.
In addition, there should be no unnecessary disruption in the rates to be collected by Respondent.
The re fo re, the
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-... :- 6 Commiss,lon is of t! e opinion that the rates in ef fect prior to R-78060626 s
will produce a fair return upon the fair value of Respondent's used and useful' property. TilEREFORE, IT IS ORDERED:
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That Respondent shall forthwith file enriffs establishing temporary rates for a period of six months, to be effective for service rendered on and after April 19, 1979, which rates shall be the rates contained in Supplement No. 4 to Electric-Pa. P.U.C. Tariff No. 42.
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That a copy of this order shall be served on Respondent.
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W THE Com!ISSION.
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'.. William P. Thicrfelder
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Acting Secretary (SEAL)
ORDER ADOPTED:
Acril 19, 1979 ORDER ENTERED:
April 19, 1979 e
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