The North Carolina Utilities Commission gave Piedmont authorization in November 2005, pursuant to its last general rate case (Docket No. G-9 Sub 499), to implement a decoupling mechanism. The Commission recently renewed that authorization per its October 24, 2008 order in Docket No. G-9 Sub 550. This decoupling mechanism, now called the Margin Decoupling Tracker, allows the Company to recover its margin independent of customer usage patterns. The Margin Decoupling Tracker protects customers from the potential over-recovery of margin by the Company and protects the Company from potential under-recovery of margin. It tracks margin recovery from residential customers (Rate 101) and commercial customers (Rates 102 and 152) on a monthly basis. Under this mechanism, the Company makes semi-annual adjustments, in April and November of each year, to the residential and commercial usage rates in order to refund or recover differences from the Commission-approved margin level.
For further information about the Margin Decoupling Tracker, go to Appendix C of Piedmont's NC tariff