This statute was enacted in 1981. It was later modified to permit, among other things, interim rate decreases. Because the Commission outlined the scope of its discretion and intent in the 1985 Report and Order, we briefly review it here. . . . Thus, the Commission is left to its own discretion and best judgment in applying the statute. Accordingly, we have heretofore granted interim requests in the main as a response to the effects of high inflation on utilities.
Past cases reveal three problems with interim proceedings and awards.
It must look mainly to the application, but doing so raises fairness and due process problems. In practice, an abbreviated hearing is held in which the application is considered with but cursory responses from parties. Because the process does not offer an opportunity to examine the behavior of all other costs and revenues as possible offsets, the abbreviated hearing may encourage an applicant to present a single issue as the factor motivating the interim request. The second problem when a refund is necessary is the failure of the refund provision to adequately protect ratepayer interests. Some customers who move during the period between the interim increase and the final order may not receive a refund.