Did the Electric Companies Qualify for Exceptions to the Rate Cap Under the Competition Law for Increased Costs of Power Purchased ?
In ARIPPA v. Pennsylvania Public Utility Commission, 792 A.2d 636, 642 (Pa. Cmwlth. 2002), the Court dealt with a similar issue.
That case dealt with two electric distribution companies which sought increases in rates under an exception to the rate caps on the grounds that they had experienced substantial increases in costs of power purchased to provide "provider of last resort" services which were beyond their control.
In the alternative, they also requested authority to track their purchased power costs, defer them and recover those costs as stranded costs through their competitive transition charges.
The Court held that the electric companies did not qualify for the exceptions to the rate caps under the Competition Act because increases in the purchased power costs were not beyond their control, i.e., an act of God, but instead were a business decision that had gone bad.