1. (a) The gas company may establish a regulatory asset for the operating and capital-related costs of any gas plant relocation that is necessary for the completion of DDOT Underground Electric Company Infrastructure Improvement Activity incurred by the gas company between base rate cases and that are not recovered by any other means; provided, that:

   1. (1) The gas plant relocation work is pursuant to a written communication from DDOT informing the gas company that the relocation of certain of the gas company’s gas plant is necessary for the completion of DDOT Underground Electric Company Infrastructure Improvement Activity; and
   2. (2) The gas plant relocation work is in addition to work performed and costs incurred by the gas company in the ordinary course of business.
2. (b) The regulatory asset shall accrue a pre-tax rate of return at the gas company’s authorized rate of return approved by the Commission in the most recent base rate case.

3. (c) The creation of a regulatory asset for the gas company’s gas plant relocation costs shall not affect the authority of the Commission to review the prudence of costs associated with the relocation of any gas plant due to DDOT Underground Electric Company Infrastructure Improvement Activity. In any Commission proceeding reviewing the gas company’s costs for any gas plant relocation that is necessary for the completion of any DDOT Underground Electric Company Infrastructure Improvement Activity, the gas company shall have the burden to prove that:

   1. (1) The gas plant relocation was necessary for the DDOT Underground Electric Company Infrastructure Improvement Activity to be completed; and
   2. (2) All of the gas plant relocation costs were prudently incurred.

History

May 3, 2014, D.C. Law 20-102, § 404, 61 DCR 1882