943.15 UNFUNDED ENVIRONMENTAL MANDATES ADJUSTMENT RIDER “D” (RIDER D).

   (a)   Unfunded Environmental Mandates Adjustment (UEMA).

      (1)   Scope. The Utility shall recover through application of the UEMA all expenditures for operating, capital improvements, investments and related debt service principal and interest payments that are paid or payable to parties other than Utility employees which are associated with the Utility’s compliance with environmental mandates that are not included or recovered in base electric rate charges or in the Power Cost Adjustment (Rider A) charges (Environmental Costs). Environmental Costs shall include Utility debt service payments (including principal and interest payments) associated with the deferral of Environmental Costs. Environmental Costs will be credited to reflect proceeds received from insurance carriers or other entities for amounts that represent reimbursement of costs associated with environmental compliance projects. Environmental Costs shall not include the salaries of Utility employees, or any benefits related thereto.

   The UEMA will be applied monthly as a percentage charge to electric customers total monthly billings so as to recover anticipated Environmental Costs during the period such expenditures are projected to be incurred by the Utility (Recovery Period). The total amount of any over or under recovery of Environmental Costs for preceding collection periods will be included as an Environmental Reconciliation Adjustment and thereby reflected in the UEMA for the Recovery Period.

      (2)   Calculation. The formula for calculating the UEMA, expressed as a percentage, is:

         UEMA = (EC + ERA)/R

         Where:

         EC =   Environmental Costs to be recovered from electric customers during the Recovery Period.

         ERA =   Environmental Reconciliation Adjustment is a dollar adjustment that reflects the difference between actual Environmental Costs incurred during preceding collection periods and the actual revenues collected by the UEMA during the same collection period.

         R =   Revenue from all base rate and Power Cost Adjustment (Rider A) charges billed to electric customers during the Recovery Period.

   (b)   Application.

      (1)   The Utility shall annually review the UEMA calculation and make projections for the Recovery Period. The Utility shall, when it deems necessary, make adjustments to the UEMA applied to customers for such period as it deems necessary to accomplish the purposes of this Rider in a timely manner.

         (Ord. 2007-4-34. Passed 4-25-07.)