7407 - Transition surcharge and stranded cost recovery. - Pennsylvania Statutes

§ 7407. Transition surcharge and stranded cost recovery. (a) Transition surcharge.--A transition surcharge is the total stranded costs payable to an electric cooperative corporation as a condition precedent to a consumer-member of an electric cooperative corporation having the right to receive electric generation service from another source. (b) Determination of stranded costs.--Total stranded costs shall be reasonably determined by an electric cooperative and may include: (1) The pro rata share in all investments in electric cooperative distribution, transmission and generation plant and facilities. (2) The pro rata share of foreseeable decommissioning costs of generation facilities. (3) The pro rata share of all effective electric cooperative contractual commitments to others, regulatory assets, deferred debits and credits, fixed operation and maintenance expenses, expenditures made for the benefit of the departing customer and administrative and other costs incurred or to be incurred by an electric cooperative as a result of a decision by a consumer-member to take electric generation service from another source. (c) Determination of pro rata share.--The pro rata share of electric cooperative stranded costs shall be determined on the basis of historical energy and capacity usage by this consumer- member compared to historical total energy and capacity usage of such electric cooperative or by direct assignment where applicable.