DPS Rate Proceeding Clause Samples

DPS Rate Proceeding. (1) The LIPA Reform Act requires that after January 1, 2016 any rate proposal that would, after the end of the period covered by the Three Year Rate Plan, increase the rates and charges to customers and thus increase LIPA’s aggregate annual revenues by more than two and one-half percent (2.5%) measured on an annual basis, shall be submitted to the DPS for its review and recommendation. The preliminary and final rate increase proposal to be submitted pursuant to the immediately preceding sentence or otherwise under the LIPA Reform Act, including any rate case submission to the DPS that is permitted but not required under the LIPA Reform Act, shall be prepared and submitted to the DPS under the same requirements and processes set forth in Sections 6.2(B), 6.2(C) and 6.2(D) hereof for the Three Year Rate Plan. The subsequent DPS rate proceeding and the Parties’ rights and responsibilities (including with respect to dispute resolution) thereunder shall be the same as set forth in Section 6.2(E) hereof for the Three Year Rate Plan. (2) Neither Party shall (a) voluntarily submit a rate change to the DPS for its review and recommendation (i) before the final approval by the LIPA Board of Trustees of the 2016-2018 Consolidated LIPA Budget agreed upon by the Parties or determined pursuant to Section 8.6 hereof ; provided, however, that notwithstanding the foregoing but subject to the following clause (ii), LIPA may voluntarily submit a rate increase proposal to the DPS for its review and recommendation if, as a result of a Major Storm or in order to comply with its bond covenants, the LIPA Board of Trustees concludes that such a rate increase and submission to the DPS is necessary or appropriate, in the best interests of the Authority and its customers and necessary for the provision of safe and adequate electric service; and (ii) before such Party has given notice to the other Party of the proposed voluntary filing and engaged in good faith negotiations to reach agreement on whether such voluntary filing is necessary, appropriate or advisable in light of the Parties’ rights and obligations hereunder nor (b) voluntarily submit to the DPS for its review and recommendation a rate decrease for a period covered by an approved Consolidated LIPA Budget unless the portion of the rate plan to be submitted to the DPS that relates to the other Party’s portion of such Consolidated LIPA Budget (that is, in the case of LIPA, the Service Provider Budget Portion, and, in the case...