- (1) "Allocation factor" means a mathematical expression of the specific cost relationship among revenue requirement and customer classes.
- (2) "Common function" means costs that can be functionalized to both electric and natural gas operations.
- (3) "Cost of service study" means a study that identifies and calculates, using regulatory accounting rules and principles, the extent to which customers in various customer classes cause costs to a utility. This study correlates a utility's costs and revenues with the service provided to customers in each customer class.
- (4) "Electric distribution system peak" means the maximum load of the Washington portion of a utility's distribution system within an identified time frame.
- (5) "Load study" means a statistical analysis of load data collected from sampled customers to estimate the load profiles of customer classes over a minimum twelve-month period. Load profile estimates of customer classes shall be hourly (or subhourly) for electric, and daily for natural gas. A load forecast or load projection model is not a substitute for a load study.
- (6) "Parity ratio" means a customer class's revenue-to-cost ratio divided by the system's revenue-to-cost ratio. This ratio shall only be presented to the commission as either a percentage or a decimal.
- (7) "Revenue-to-cost ratio" means revenue at current rates divided by the revenue requirement. This ratio shall only be presented to the commission as either a percentage or a decimal.
- (8) "Special contract" means a negotiated service agreement between a utility and a customer approved pursuant to WAC 480-80-143.
[Statutory Authority: RCW 80.01.040, 80.04.160 and chapter 80.28 RCW. WSR 20-15-024 (Docket UE-170002 and UG-170003, General Order R-599), § 480-85-030, filed 7/7/20, effective 8/7/20.]