.04 Hourly Priced Electric Supply Service.

A. A utility shall offer hourly priced nonresidential electric supply service to all nonresidential customers ineligible for Type I or Type II SOS, excluding special generation contract customers.

B. A utility shall provide hourly priced service beginning with the time periods provided for Type III service in Regulation .03 of this chapter.

C. A utility may not change or alter tariff rules, terms, and conditions for HPS under §B of this regulation for a period of at least 2 years.

D. The rate for HPS shall include:

(1) One of the following:

(a) The PJM hourly LMP for energy; or

(b) If PJM alters its pricing methods, the nearest equivalent to LMP;

(2) Charges associated with PJM capacity obligation;

(3) FERC-approved:

(a) Transmission rates;

(b) Ancillary services;

(c) Energy losses;

(d) Administrative costs;

(e) Any other FERC approved or PJM charges and costs directly related to the utilities' hourly priced service;

(4) Costs required to meet statutory renewable requirements;

(5) Any other price elements directly related to the service as approved by the Commission;

(6) Taxes;

(7) An applicable administrative charge intended to recover the utility's verifiable and prudently incurred costs; and

(8) A Commission-approved reasonable return.