 |
D.C. Municipal Regulations (Last Updated: September 13, 2017) |
 |
Title 15. PUBLIC UTILITIES AND CABLE TELEVISION |
|
Chapter 15-5. FUEL ADJUSTMENT CLAUSE AUDIT AND REVIEW PROGRAM |
Section 15-513. FORMULATION OF A PRODUCTIVITY IMPROVEMENT PROGRAM
-
513.1PEPCO shall develop and submit to the Commission annually on February 15th a proposed Productivity Improvement Plan (PIP) for the calendar year which sets cost-effective productivity improvement goals for the company to attempt to achieve by the end of that year.
513.2The company's proposed plan shall identify those operating factors and practices contributing to productivity loss; assess the feasibility of taking specific cost-alternative productivity improvement measures; and propose those productivity improvement measures which will yield net benefits to District rate-payers (i.e., cost-effectiveness, or the net benefit-cost determination, is to be based on a total net incremental revenue requirement effect, either over the short or long run, depending on the specific productivity improvement under consideration).
513.3The company's plan shall also include estimates of the capital and operating costs necessary to achieve productivity improvements, estimate the cost savings anticipated for productivity improvements, and identify the company's plans for decreased use of scarce fuels and effective preventive and outage maintenance (both short- and long-term).
513.4The company's plan shall include historical statistics for the past ten (10) years by unit for PEPCO, and aggregated by size and type of unit for the Pennsylvania-New Jersey-Maryland (PJM) interconnection and for the North American Electric Reliability Council (NERC), and shall include a forecast for the current year for PEPCO, of the following information:
(a)Total production expense (cents per kWh);
(1)Fuel and purchased power (cents per kWh);
(2)Salaries (cents per kWh);
(3)Other operations and maintenance (cents per kWh);
(b)Power plant productivity;
(1)Heat rate (BTU kWh);
(2)Availability (percent);
(3)Equivalent availability factor (percent);
(4)Equivalent forced outage factor (percent);
(5)Capacity factor (percent);
(c)Fuel procurement effectiveness (cents per MBTU as burned);
(1)Coal;
(2)Heavy oil;
(3)No. 2 fuel oil;
(4)Natural gas;
513.5At an early stage in the company's development of its proposed productivity improvement plan, it is to establish a Productivity Improvement Working Group (PIWG) consisting of PEPCO technical staff representatives, the People's Counsel, and three (3) members of the Commission staff; one each from the Accounting, Economics and Engineering Division.
513.6The primary purpose of the PIWG shall be to provide a mechanism through which Commission staff and the People's Counsel can communicate with the company while the PIP is in the developmental stage. However, the PIWG shall not formulate the PIP.
513.7The group shall review and discuss the results of company productivity investigations and possible areas for productivity improvement. In addition, the group shall transfer technical knowledge to the staff which will ultimately assist in the Commission's review and evaluation of the company's productivity improvement proposals, and thereby provide a sound technical knowledge foundation for an effective monitoring of the PIP.
513.8The public shall have forty-five (45) days from the date of its submission to the Commission to comment on the company's proposed PIP.
513.9The staff shall review the proposed PIP and by May 1st shall submit a report to the Commission summarizing and evaluating the comments of public parties, and providing its recommendations as to the proposed PIP. The staff’s report shall also contain, for the initial PIP filing only, a proposed plan for Commission approval which establishes staff’s procedural plan for monitoring the company's productivity improvement progress under the PIP.
513.10The Commission shall review the company's plan, along with the staff report and all public comments, and make public its evaluation of the company's plan by June 1st.