Opinion ID: 2088513
Heading Depth: 2
Heading Rank: 3

Heading: Provisions of the Sixth Order

Text: The essential provisions of the Sixth Order are as follows: (1) On January 1, 1989, a rate increase of $235 million will take effect. (2) On January 1, 1990, a rate increase of $245 million will take effect. (3) Edison cannot file for any further rate increases prior to February 1, 1993, except under certain circumstances set forth in the Sixth Order. (4) Staff will review the earnings of Edison at the end of each year from 1989 through 1993. If the Commission determines Edison earned excess revenue during the year, the Commission could order a refund which would become effective the following year. (5) Because the Braidwood Unit 2 audit was not completed, the Commission did not make any findings or determinations in the Sixth Order regarding the rate base value of that unit. The Commission will hold hearings and make findings concerning the rate base value of Braidwood Unit 2 in 1989. (6) The findings in the Sixth Order regarding Byron Unit 2 and Braidwood Unit 1 establish minimum rate base values. The parties and intervenors may present additional evidence concerning the final rate base values of these units during the 1989 hearings. (7) The 1989 (first-step) rate increase is reasonable. (8) The Commission did not determine the reasonableness of the 1990 (second-step) rate increase in the Sixth Order. The Commission will make that determination after completion of the Braidwood Unit 2 audit and after further hearings in 1989. (a) The Commission will only approve the second-step rate increase if the evidence supports such a finding. (b) Any revenues in excess of the first-step rate increase found just and reasonable in the Sixth Order may be used to support the second-step rate increase. (c) The $245 million is a cap on, or the maximum of, the rate increase for 1990. (d) If the evidence demonstrates that reasonable costs are in excess of the amount necessary to support a $245 million rate increase, those costs will not be included in rates during the five-year moratorium. (e) No carrying charges on excess revenues or on any costs excluded from rates can accrue during or after the moratorium. (f) The Commission may, after a determination based on the evidence, include in rates after the moratorium any excess costs or revenues. (g) If the Commission determines a rate increase less than $245 million is reasonable, Edison will have the option of withdrawing from the Sixth Order, and the Commission will have the right to consider whether a rate reduction and refund of the excess revenues from the first-step rate increase would be appropriate.