PENNSYLVANIA, June 30 - commission shall order the electric distribution

company to enter into a long-term resource adequacy

agreement for the approved new generation resource.

The electric distribution company shall recover costs

from entering into the long-term resource adequacy

agreement in accordance with clause (F). In addition

to the cost recovery allowed under clause (F), the

commission shall allow an additional financial

incentive at a reasonable rate set by the commission.

In the absence of a stated return on equity

established in a distribution rate case, the

commission shall use the return on equity for capital

recovered under the distribution system improvement

charge, pursuant to section 1353 (relating to

distribution system improvement charge), in effect at

the time of the commission's order.

(F) Costs for new generation resources and long-

term resource adequacy agreements, including all

costs of preparing, filing and litigating the

petition under this subsection, shall be recovered

from customers in all customer classes through a

nonbypassable cost-recovery tariff mechanism, in

accordance with section 1307, to ensure full and

timely recovery of all prudent and reasonable costs

of investment by the electric distribution company in

new generation resources, as approved by the

commission, including administrative costs, operation

and maintenance expenses and a just and reasonable

pretax return on the electric distribution company's

capital investments in the new generation resources.

20250SB0897PN1027 - 7 -

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