After notice and hearing, and after considering the materials submitted by the utility, other interested parties, and commission staff, and the factors required by Puc 206.06, the commission shall approve an alternative form of regulation if it determines that such alternative:

1. (a) Results in rates that are not unduly discriminatory and are at a level that allows those to whom a service is being marketed to obtain such service;
2. (b) Provides the utility the opportunity to realize a return on its investment which falls within a range that is neither confiscatory nor unduly profitable and that reflects the utility's investment risk; and
3. (c) Serves the public interest in light of the considerations described in Puc 206.06(b)(1) through (9).

Source. #6444, eff 1-28-97; ss by #8276, eff 1-27-05; ss by #10306, eff 4-9-13; ss by #13780, eff 10-18-23; ss by #14184, eff 1-24-25