System for Regulating Rates and Classes for Market Dominant Products

The notice of proposed rulemaking proposes revisions to the system for regulating rates and classes for Market Dominant products (ratemaking system). In Order No. 8891, the Commission determined that the ratemaking system was not achieving the statutory objectives. Two proposed revisions address concerns: restricting rate adjustments to once per fiscal year from 2025 to 2030 and ensuring workshare discounts align with avoided costs to enhance efficiency by closing a regulatory gap allowing excessive passthrough reductions. These proposals aim to enhance predictability, reduce administrative burden, and maximize efficiency and cost reduction, ensuring a ratemaking system that better fulfills the statutory objectives. This document informs the public of the filing, invites public comment, and takes other administrative steps.