April 1992
— Edwin A. Rosenberg, Ph.D., Daniel J. Duann, Ph.D., Peter A. Nagler, and Cary D. Wasden
Utility services are increasingly provided under contracts or special tariffs negotiated between utilities and customers outside the traditional rate case. Such contracts or special tariffs may be offered to provide economic development rates, incentive rates, interruptible rates, or rates for special services. They often include prices set below regular tariff rates for the same or similar services, and may be subject to less regulatory scrutiny than that applied to regular tariffs. How widespread is the practice? What are commission attitudes and policies towards it? What criteria do regulators use in evaluating contracts and special tariffs? To what extent should regulators and ratepayers be concerned? Does the practice of providing utility services under individually negotiated contracts or special tariffs require developing new regulatory policy?
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