§ 8–1771.06. Electric company purchases of distribution transformers — Public Service Commission rule.

(a) For the purposes of this section, the term:

(1) “Electric company” shall have the same meaning as in § 34-207.

(2) “Liquid-immersed distribution transformer” means a transformer that:

(A) Has an input voltage of 34,500 volts or less;

(B) Has an output voltage of 600 volts or less;

(C) Uses oil or other liquid as a coolant; and

(D) Is rated for operation at a frequency of 60 Hertz.

(3) “Transformer” means a device consisting of 2 or more coils of insulated wire and that is designed to transfer alternating current by electromagnetic induction from one coil to another to change the original voltage or current value.

(b) Within 365 days of the date that the United States Department of Energy issues a final rule on liquid-immersed distribution transformers, the Public Service Commission shall adopt a rule governing the purchase of liquid-immersed distribution transformers by the electric company. The rule shall ensure that, subject to availability, all such purchases occurring on or after January 1, 2009 are based on the life-cycle cost methodology contained in section 2 of Standard TP 1-2002 published by the National Electrical Manufacturers Association. The Public Service Commission may also consider additional inventory management costs as costs for inclusion within the life-cycle cost methodology to be used by an electric company for purposes of this section. Except as provided herein, the rule shall be consistent with regulations pertaining to liquid-immersed distribution transformers adopted by the United States Department of Energy.