Opinion ID: 2202769
Heading Depth: 2
Heading Rank: 4

Heading: PEPCO's Cost-Allocation Methodology

Text: Finally, WMATA contends that the cost-allocation methodology authorized by the Commission was biased against the Metro RT class. Specifically, WMATA argues that the Commission erred in not recognizing that WMATA should be treated as a jurisdictional customer and that PEPCO's AED/NCP [13] methodology penalizes a customer like WMATA that does not peak at the same time PEPCO peaks by allocating higher costs to it. In rejecting both contentions, the Commission observed: Since it is not practical for PEPCO to meter the load flows between its retail jurisdictions on a continuous basis due to the density of the system and the preponderance of underground boundary crossings, PEPCO determines the jurisdictional NCP from a combination of actual meter read data and load survey data by customer classes for each jurisdiction. Once the system costs have been allocated to the relevant jurisdiction, the NCP for the customer classes within the jurisdiction are used to further allocate jurisdictional costs to the various customer classes. This is a proper application of the AEC cost allocation technique and is consistent with the allocation methodology employed by PEPCO in [Formal Case] No. 758. Use of this method allows load characteristics of the different classes to be specifically recognized, and in addition, recognizes that base load generating units installed for off peak service have a higher capital cost and lower energy cost than units added primarily for peaking purposes. The data presented by Mr. Labonski indicate that WMATA is indeed highly coincident with the PEPCO system and contributes a high fraction of its maximum demand at the time of the PEPCO system peak, and that the peak thus far incurred in 1982, at 5 p.m. on July 19, 1982 (4146 MW) was highly coincident with the normal time of the WMATA peak. WMATA's request that it be treated as a separate jurisdiction in PEPCO's jurisdictional cost allocation would entail a rather fundamental revision of the study methodology. WMATA offers no reason for its apparent failure to make this request in [Formal Case] No. 758 where it more properly belonged. While WMATA claims the present method is biased against it, the Commission has been given no specifics as to the extent of any adverse impact on WMATA arising from the claimed bias. More than WMATA has offered is required in order to persuade the Commission to direct a change in an allocation methodology so recently approved by it. Order No. 7716 at 161. WMATA has not sustained its burden of demonstrating legal error in this ruling. See People's Counsel v. Public Service Commission, supra, 399 A.2d at 46; Goodman v. Public Service Commission, supra, 309 A.2d at 101. Its arguments on these points raise issues that are really questions of regulatory policy; [14] our review of a Commission order, however, is limited to questions of law. . . . D.C. Code § 43-906 (1981). Policy decisions are within the exclusive domain of the Commission. They are beyond both the jurisdiction and the competence of a reviewing court. Affirmed.