VIII. Electrical Equipment Repair and Maintenance

We noted in the OIR that electric equipment problems may be identified in the process of installing a BPL system. The OIR goes on to propose that "costs directly related to the repair and maintenance of existing electrical equipment for the purposes of electric service reliability (e.g., cracked insulators) be allocated to electricity operations. Costs directly related to BPL installation or operation should be allocated to the BPL operator." (OIR, p. 11.)

To the extent parties mentioned this issue, it was in the context of the affiliate transaction rules. Parties voice concerns that if BPL services are provided by a utility affiliate, this activity could create an incentive for mischaracterizing the work in order to attain cross-subsidization of BPL by utility ratepayers. Yet, our utility affiliate rules safeguard against any such possible abuses.

We adopt the OIR's approach. Costs should be allocated on a cost causation basis.

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