(a) Upon making the findings described in subsection (b) of this section, the Commission shall issue an order approving or denying the application and biennial Underground Infrastructure Improvement Projects Plan to authorize the proposed DDOT Underground Electric Company Infrastructure Improvement Activity, Electric Company Infrastructure Activity, and the subsequent imposition of Underground Project Charges. The Commission shall have the authority to impose in its order and to condition the electric company’s exercise of the rights granted therein on such reasonable terms and conditions as it determines necessary to further the purposes of this chapter. If the Commission denies all or part of a biennial Underground Infrastructure Improvement Project Plan or related cost recovery, the electric company shall be allowed to recover all prudent and reasonable expenses and costs associated with the development of the Underground Infrastructure Improvement Projects Plan, including preliminary engineering design work required to fulfill the requirements of the application in its Underground Project Charge.

(b) For the electric company to recover expenses and costs pursuant to subsection (a) of this section, the Commission shall find that:

(1) The electric company’s application satisfies the applicable requirements of § 34-1313.08;

(2) The proposed Electric Company Underground Infrastructure Improvements are appropriately designed and located;

(3) The intended reliability improvements will accrue to the benefit of the electric company’s customers;

(4) The projected costs associated with the proposed Electric Company Underground Infrastructure Improvement Activity are prudent;

(5) The projected DDOT Underground Electric Company Infrastructure Improvement Costs funded by DDOT Underground Electric Company Infrastructure Improvement Charges are prudent;

(6) The electric company’s proposed Underground Project Charges will be just and reasonable; and

(7) The grant of the authorizations and approvals sought by the electric company and DDOT in their joint application is otherwise in the public interest.

(c) In addition to other terms and conditions considered necessary and appropriate by the Commission, the Commission’s order shall include:

(1) Authorization for the electric company to impose and collect the Underground Project Charges from its distribution service customers in the District in accordance with the distribution service customer class cost allocations approved by the Commission for the electric company and in the electric company’s most recent base rate case; provided, that no such charges shall be assessed against customers served under the electric company’s residential aid discount or a succeeding discount program;

(2) Authorization for the electric company to bill the Underground Project Charges to distribution service customers as a volumetric surcharge; provided, that no such charges shall be assessed against customers served under the electric company's residential aid discount or a succeeding discount program;

(3) Approval of the annual revenue requirement, which shall include the rate of return on equity as set by the Commission in the most recently decided base rate case used in calculating the Underground Project Charges; and

(4) A description of the frequency of project construction update reports for the DDOT Underground Electric Company Infrastructure Improvements funded by DDOT Underground Electric Company Infrastructure Improvement Charges and the Electric Company Infrastructure Improvements as set forth in the triennial Underground Infrastructure Improvement Projects Plan, as approved by the Commission, to be filed by DDOT and the electric company with the Commission and with a copy concurrently served upon OPC.

(d) Notwithstanding the foregoing, the Commission shall have no authority to issue any order that would cause the total amount of Electric Company Infrastructure Improvements Costs recovered through Underground Project Charges to exceed $250 million; provided, that this limit shall not apply to the recovery of the electric company’s rate of return, as approved by the Commission in the most recently decided base rate case, included in the calculation of the Underground Project Charges. The electric company shall have no obligation to incur Electric Company Infrastructure Improvement Costs in excess of the aggregate amount approved for current recovery through the Underground Project Charge pursuant to one or more final orders of the Commission.

(May 3, 2014, D.C. Law 20-102, § 310, 61 DCR 1882; July 11, 2017, D.C. Law 22-5, § 2(k), 64 DCR 4943.)

This section is referenced in § 34-1313.07, § 34-1313.12, and § 34-1313.15.

As to the applicability of the charges authorized by §§ 34-1313.01 and § 34-1313.10, see § 34-1315.01.

For temporary (90 days) amendment of this section, see § 2(k) of Electric Company Infrastructure Improvement Financing Emergency Amendment Act of 2017 (D.C. Act 22-56, May 17, 2017, 64 DCR 4909).