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Key Points/Issues (cont.): <br /> <br /> volumetric charge by means of a declining block rate <br /> design. <br /> <br /> §, The Company is proposin9 four unbundled gas <br /> distribution rates: Residential Sales, Commercial <br /> Sa~es, industrial Sales, and Transportation. <br /> <br /> 9. The Company is proposing a two-step declining block <br /> rate with a monthly Customer Charge for the <br /> Residential Sales class. In addition, the Company <br /> proposes to continue the three-step Commercial <br /> Sales rate design along with its monthly Customer <br /> Charge, but to change the block breaks to better <br /> reflect the base and heating Icad profiles of the class. <br /> The Company further proposes to continue the <br /> existing four-step declining block rate design with a <br /> monthly Meter Charge for the Industrial Sales and <br /> Transportation classes. <br /> <br /> 10. The Company is proposing to standardize its charges <br /> for services other than Pipeline transportation service <br /> as either Miscellaneous Service rates subject to <br /> uniform application or as Ancillary Service charges <br /> subject to variable market conditions. <br /> <br /> Summary/Recommendations: <br /> <br /> The adjustments to volume, customers, and revenues that were <br /> made to reflect the effects of changes in the test year number of <br /> customers and weather effects are reasonable and necessary to <br /> reflect the usage characteristics and applicable rates of affected <br /> customers. The Maximum Daily Usage values employed by the <br /> Company in allocating capacity costs to the classes of service are <br /> reasonable, accurate, and fairly measure the impact that each <br /> customer class places upon the capacity-related portions of the <br /> Company's system. <br /> <br /> The overall class cost of service study presented in this proceeding <br /> allocates costs to customer classes in a fair and reasonable <br /> manner and is not biased in favor of or against any particular class. <br /> In designing the proposed rates, the Company has appropriately <br /> considered the impact of that rate design on customers. The <br /> Company has also designed the proposed rates in a manner that <br /> ensures that the customers who impose costs on the system are <br /> responsible for paying those costs. <br /> <br /> Goble - Summary of Testimony Page 3 of 3 <br /> <br /> <br />