10. Categorization, Ex Parte Communications, and Need for Hearing

Rule 7.1(c) of the Commission's Rules of Practice and Procedure provides that the OII shall determine the category of the proceeding and preliminarily determine the need for hearing. This proceeding is categorized as ratesetting.17 Parties must comply with the ex parte rules set forth in Rule 8.2(c) and Rule 8.3 of the Commission's Rules of Practice and Procedure. The determination as to category is appealable under Rule 7.6. We preliminarily determine that formal evidentiary hearings are not needed, but the Commission may set this matter for hearing if contested material issues of fact remain after the initial comments, reply comments, and the three workshops.

17 When a proceeding does not clearly fit into any of the categories defined in Rule 1.3 (a), (d), or (e), the proceeding will be conducted under the rules applicable to the "ratesetting" category. (Rule 7.1(e)(2).) It is appropriate to classify this proceeding as ratesetting because (1) it does not clearly fit into any other category and (2) the ratesetting category is consistent with the type of review we are conducting here. We note that the Commission's ex parte rules for ratesetting proceedings are similar to the "permit-but-report" ex parte procedures applicable at the FCC.

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