R. 25.261, relating to Stranded Cost Recovery of Environmental Cleanup. The rule pertains to the recovery of capital costs incurred by an electric utility or affiliated power generation company to improve air quality.
Staff recommends adoption of the proposed rule as revised.
The utilities generally opposed this prohibition while other commenters were generally in favor of it. Staff believes that the most economical method of reducing emissions for some utilities may be through purchasing emissions allowances. From an economic standpoint, staff believes it is appropriate to allow recovery of costs associated with the purchase of allowances. The draft final rule has been revised accordingly. Generally, commenters supported the notion that a market-based price analysis should be applied to RMR units.