The FTC’s comments focused on JPS’ proposals which are likely to increase the price of electricity to customers. With regard to JPS’ proposal, the FTC advised that:
- replacing the current Price Cap regime with a Revenue Cap regime is likely to lessen the incentives for JPS to establish an efficient tariff structure.
- increasing its residential tariff by 21% on average; (ii) increasing its general service tariff by 15% on average; and (iii) reducing its commercial and industrial tariff by 1.5% on average, is likely to deviate from accepted rules of efficient pricing.
- introducing a wholesale rate designed to encourage its largest customers to remain entirely on the grid is internally inconsistent with the JPS’ proposal to replace the price cap regime with a revenue cap regime.
- reducing the rate review period from five years to three years would likely frustrate the ability of the OUR to monitor and evaluate the JPS.