PENNSYLVANIA PUBLIC UTILITY COMMISSION [52 PA. CODE CHS. 53 AND 54] [L-940094] Electric Utility Filing Requirements [27 Pa.B. 1012] The Pennsylvania Public Utility Commission (Commission) on August 8, 1996, adopted a proposed rulemaking to amend and update existing filing requirements. The contact persons are C. Barnery Glunz, Bureau of Fixed Utility Services (717) 783-6163 (technical) and Susan T. Povilaitis, Assistant Counsel, Law Bureau (717) 787-2871 (legal).
Executive Summary
On August 9, 1994, an order was entered by the Pennsylvania Public Utility Commission (Commission) at Docket No. L-00930088 Policy Statement Re Settlement Guidelines and Procedures for Major Rate Cases. In this order, the Commission adopted a final policy statement regarding the encouragement of negotiated settlements in major rate cases. The guidelines and procedures outlined in the policy statement are applicable to general rate increases in excess of $1 million. The policy statement can be found at §§ 69.401--69.406.
The August 9, 1994, order required a revision of the existing filing requirement regulations found at § 53.53 (relating to information to be furnished with proposed general rate increase filings in excess of $1 million). The Commission expressed its dissatisfaction with the filing requirements in their present form, and ordered a general update to be commenced. The instant proposed rulemaking is a direct result of that Commission mandate.
On October 24, 1994, the Commission issued an advance notice of proposed rulemaking at the above docket, published at 24 Pa. B. 5425 (October 29, 1994) seeking comments from the public on this matter.
The Commission adopted an order on August 8, 1996, initiating the above proposed rulemaking. This order and Annex A amends Commission regulations by replacing § 53.53.
Alternate formats of this document are available to persons with disabilities and may be obtained by contacting Shirley M. Leming, Regulatory Coordinator, Law Bureau, at (717) 772-4597.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of these proposed amendments on February 18, 1997, to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure. In addition to submitting the proposed amendments the Commission has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Commission in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.
If the Legislative Committees have any objection to any portion of the proposed amendments, they will notify the Commission within 20 days of the close of the public comment period. If IRRC has any objections to any portion of the proposed amendments, it will notify the Commission within 30 days after the close of the public comment period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the amendments, by the Commission, the General Assembly and the Governor of any objections raised.
Public meeting
held August 8, 1996Commissioners Present: John M. Quain, Chairperson; Lisa Crutchfield, Vice Chairperson; John Hanger; David W. Rolka, Statement follows; and Robert K. Bloom
Proposed Rulemaking Order By the Commission:
On August 9, 1994, an order was entered at Docket No. L-00930088 Policy Statement Re Settlement Guidelines and Procedures for Major Rate Cases. In this order, the Commission adopted a final policy statement regarding the encouragement of negotiated settlements in major rate cases. The guidelines and procedures outlined in the policy statement are applicable to general rate increases in excess of $1 million. The policy statement can be found at §§ 69.401--69.406.
The August 9, 1994, order required a revision of the existing filing requirement regulations found at § 53.53. The Commission expressed its dissatisfaction with the filing requirements in their present form, and ordered a general update to be commenced. The instant proposed rulemaking is a direct result of that Commission mandate.
Section 69.402(c)(1) (relating to prefiling notice guidelines) necessitates that a utility, which is requesting a general rate increase in excess of $1 million, will provide responses to a standard set of industry-specific data requests. The data requests in question were approved in an order entered on April 28, 1995, also at Docket No. L-00930088.
Also, as a part of its August 9, 1994 order, the Commission on page 8, expressed the sentiment that the updated filing requirements would also incorporate the standard data requests, to the extent appropriate.
On October 24, 1994, the Commission issued an advance notice of proposed rulemaking at the above docket, published at 24 Pa. B. 5425 seeking comments from the public on this matter. Comments were received from the Office of Consumer Advocate (OCA), the Office of Trial Staff (OTS) and the Pennsylvania Electric Association (PEA). Technical conferences were held on July 10, 1995, and August 7, 1995. A number of subsequent meetings among the active participants were held. As mentioned above, the Commission expressed a desire to have the standard data requests integrated into the revised filing requirements. A considerable amount of time was devoted to achieving this end. In fact, the filing requirements have been revised to such an extent that it has been necessary to create a completely new chapter in Title 52 of the Pennsylvania Code. The filing requirements, presented today for the Commission's consideration, are the result of a consensus reached among representatives of the parties who will be the primary active participants in future electric utility general rate cases in excess of $1 million.
Accordingly, under section 501 of the Public Utility Code, and the Commonwealth Documents Law (45 P. S. § 1201 et seq.) and regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.4, we proposed to amend our regulations by adding Chapter 54 as noted above and as set forth in Annex A. Therefore,
It is Ordered:
1. That a rulemaking docket shall be opened to reexamine the regulation governing the filing requirements for general rate increase requests in excess of $1 million as set forth in Annex A of this order.
2. That the Secretary shall submit this order and Annex A to the Office of the Attorney General for preliminary review as to form and legality.
3. That the Secretary shall submit a copy of this order, together with Annex A, to the Governor's Budget Office for review of fiscal impact.
4. That the Secretary shall submit this order and Annex A for review and comments by the designated standing committees of both Houses of the General Assembly, and for informal review and comments by IRRC.
5. That the Secretary shall duly certify this order and Annex A and deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. That, within 30 days of this order's publication in the Pennsylvania Bulletin, an original and 15 copies of any comments concerning this order should be submitted to the Commission.
JOHN G. ALFORD,
SecretaryStatement of Commissioner David W. Rolka I would like to join with the staff of the Bureau of Fixed Utility Services in gratefully acknowledging the cooperation and assistance of the Pennsylvania Electric Association, the Office of Consumer Advocate and the Office of Trial Staff in the preparation of the proposed modifications to the electric utility filing requirements. The filing requirements have been revised to such an extent that it has been necessary to create a completely new chapter in the Pennsylvania Code for them. The Proposed Rulemaking is the result of a consensus reached among representatives of the parties who will be the primary active participants in future electric utility general rate cases in excess of $1 million.
Before this proposed rule change becomes final, I would invite interested parties to further comment on Subchapter A. General Section 54.2. Part A appears to limit application of these filing requirements to situations in which there is a proposed increase in gross revenues of $1 million or more.
As we consider the variety of issues surrounding the restructuring of the electric industry, I would like to know the practitioners' views regarding the usefulness of this Chapter when considering rate rebalancing scenarios; the unbundling of tariffed services or jurisdictional revenue shifts resulting from wholesale and retail transaction changes.
Fiscal Note: 57-177. No fiscal impact; (8) recommends adoption.
Annex A TITLE 52. PUBLIC UTILITIES PART I. PENNSYLVANIA PUBLIC UTILITY COMMISSION Subpart C. FIXED SERVICE UTILITIES CHAPTER 53. TARIFFS FOR NONCOMMON CARRIERS (Editor's Note: The text of § 53.53 which appears at 52 Pa. Code pages 53-20 to 53-99, serial pages (213594) to (213673) will be replaced by the following new Chapter 54, Subchapters A and B. For the text of Chapter 54, Subchapter C, see 27 Pa.B. 1027 (March 1, 1997).)
CHAPTER 54. TARIFF FILING INFORMATION FOR NONCOMMON CARRIERS Subch.
A. GENERAL B. ELECTRIC UTILITIES Subchapter A. General Sec.
54.1. Purpose. 54.2. General. § 54.1. Purpose.
This chapter applies to tariff filing information by utility type. There is a separate section for each utility to review prior to a tariff filing with the Commission.
§ 54.2. General
(a) When a public utility, other than a canal, turnpike, tunnel, bridge or wharf company, files a tariff or tariff supplement seeking a general rate increase within the meaning of 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates), and the rate increase exceeds $1 million in gross annual revenues, in addition to the data required by other provisions of this chapter, the tariff or tariff supplement shall be accompanied by responses to the appropriate data requests below.
(b) In providing responses to these data requests, if the requested data have been previously filed with the Commission, they may be incorporated by reference. Also, the term ''test year'' as used in this chapter refers to the test year chosen by the utility to support its filing--that is, presumably future test year data would be supplied in most cases.
(c) Initial utility direct testimony of a witness who shall testify in support of the utility's position shall be provided as part of the filing materials. The testimony of the filing utility shall include a complete explanation and justification of claims which depart from the unadjusted test year results of operations, including the methodology and rationale. The testimony shall be accompanied by supporting worksheets, if necessary, and shall refer to supporting exhibits to which the testimony relates. The explanation and documentation of the proposed adjustments shall enable a reasonably informed party to determine how the amount was calculated and to understand why the amount is being claimed.
Subchapter B. ELECTRIC UTILITIES SUMMARY OF FILING
Sec.
54.101. Summary discussion. 54.102. Identification of proposed witnesses. 54.103. Single page summary. 54.104. Statement of income. 54.105. Revenues and expenses. 54.106. Test year adjustments. 54.107. Additional items. 54.108. Nonjursidictional activities. REVENUE REQUIREMENTS
54.121. Revenue requirements. OPERATING AND MAINTENANCE EXPENSES
54.131. Budget variance. 54.132. Unadjusted operation and maintenance expenses. 54.133. Benefit programs. 54.134. Cost of service. 54.135. Outside services. 54.136. Planned cost savings. 54.137. Reserve accruals and balances. 54.138. Amortization claims. 54.139. Pension expense. 54.140. Pension plan actuarial study. 54.141. Rate case expenses. 54.142. Base rate filings. 54.143. Comparison of rate case expenses. 54.144. Projected operations and maintenance. 54.145. Employe positions for the text year. 54.146. Labor data. 54.147. Incentive/bonus plans. 54.148. Wage rate increases. 54.149. Overtime. 54.150. Average starting salary. 54.151. Operation and maintenance expense. 54.152. Payroll. 54.153. Bad debt and write-offs. 54.154. Account date. 54.155. Vegetation/tree trimming. 54.156. Tree trimming costs. 54.157. Nonrecurring or extraordinary expenses. 54.158. Extraordinary property loses. 54.159. Expenses categories. 54.160. Charges by affiliates. 54.161. Leases. 54.162. Charges in accounting procedures. TAXES
54.171. Property tax assessments. 54.172. Prior period taxes. 54.173. Refunds from taxing authorities. 54.174. Derivation of tests year level. 54.175. Deferred income tax balances. 54.176. Consolidated tax savings adjustment. 54.177. Corporate Federal tax returns. 54.178. Actual tax liability. 54.179. Corporate net income and capital stock tax reports. 54.180. Gross Receipts Tax and Public Utility Realty Tax. 54.181. Debt interest. 54.182. Other taxes. 54.183. Adjustments. 54.184. Prepaid and deferred income tax charges. 54.185. Rate cases. 54.186. Costs of removal. 54.187. Income tax loss/gain carryovers. 54.188. Elimination of tax savings. 54.189. Consolidation income tax return. 54.190. Use of accelerated tax depreciation. 54.191. Breakdown of accumulated and unamortized investment tax credits. 54.192. Federal income tax refunds. DEPRECIATION
54.201. Depreciation. RATE BASE
54.211. Rate base. 54.212. Actual and budgeted construction expenditures. 54.213. Actual and budgeted plant additions and retirements. 54.214. Test year plant additions. 54.215. Total cost of plant additions and retirements. 54.216. Monthly balances. 54.217. Plant held for future use. 54.218. Canceled construction projects. 54.219. Development of the allocations of common utility plant. 54.220. Initially approved construction budget. 54.221. Plant inservice. 54.222. Contributions in aid of construction. 54.223. Projected customers advances and deposits. 54.224. Actual customer advances and deposits. 54.225. Claim for prepayment. 54.226. Fuel inventory. 54.227. Average inventory value. 54.228. Actual fuel inventory. 54.229. Materials and supplies balances. 54.230. Electric plant in service. 54.231. Reserve amounts. 54.232. Original cost plant and applicable reserves. 54.233. Rate case adjustments. 54.234. Rate base and rates of return. 54.235. Construction work in programs. 54.236. Materials, supplies or fuel inventory. 54.237. Cash working capital. 54.238. Compensating bank balances. 54.239. Additional claims. 54.240. Surviving original cost plant. 54.241. Vintage at the FERC account. GENERAL INFORMATION
54.251. General. 54.252. Overall system map. 54.253. Budget utilized. 54.254. Projected operating and capital budgets. 54.255. Unadjusted detailed schedules. 54.256. Plant addition or removal from service. 54.257. Description on property and system's operation. 54.258. New rate tariff. 54.259. Quarterly balance sheets and income statements. 54.260. Annual report form. 54.261. Adjustments to rate base and operating income. 54.262. Annual resource planning report. 54.263. Generation planning criteria. RATE OF RETURN
54.281. Components of claimed capitalization (Schedule I). 54.282. Components of claimed capitalization (Schedule 2). 54.283. Embedded cost of long-term debt. 54.284. True or economic cost of debt. 54.285. Bank notes payable. 54.286. Short-term debt. 54.287. Long-term debt. 54.288 Embedded cost of preferred stock equity. 54.289. Claimed common equity rate of return. 54.290. Summary of stock dividends. 54.291. Issuances of common stock. 54.292. Reasons for claim. 54.293. Capitalization date. 54.294. Balance sheet and income statement. 54.295. Organizational chart. 54.296. Latest quarterly operating and financial report. 54.297. Capital requirements and sources. 54.298. Coverage requirements or capital structure ratios. 54.299. Comparative financial data. COST OF SERVICE
54.311. Cost of service. 54.312. Comparisons of cost. 54.313. Additional information to be provided. 54.314. Allocations and direct assignment. 54.315. Functionalization of plant. 54.316. Class demands relied on. 54.317. Customers taking interruptible service. 54.318. Demand and customer related components. 54.319. Forecasted test period monthly resource availability. 54.320. Weather normalization adjustment. 54.321. Typical customer demand and usage profile. 54.322. Bill comparison. 54.323. Bill frequency analysis. 54.324. Design peak day. 54.325. Peak day capacity. 54.326. Meters. 54.327. Individual rate effects. 54.328. Changes proposed for new tariff. 54.329. Annual revenue effect. 54.330. Effect of proposed base rate. 54.331. Percentage effect of proposed base rate. QUALITY OF SERVICE
54.341. Quality of service. SUMMARY OF FILING § 54.101. Summary discussion.
An electric utility shall provide a summary discussion of the rate change request, including specific reasons for each increase or decrease. Also, the utility shall provide a breakdown that identifies the revenue requirement value of the major items which form the basis of the requested rate change.
§ 54.102. Identification of proposed witnesses.
An electric utility shall identify the proposed witnesses for the statements and schedules of revenues, expenses, taxes, property and valuation.
§ 54.103. Single page summary.
An electric utility shall provide a single page summary table showing, at present and at proposed rates, together with references to the filing information, the following as claimed for the fully adjusted test year:
(1) Revenues.
(2) Operating expenses.
(3) Operating income.
(4) Rate base.
(5) Rate of return (produced).
§ 54.104. Statement of income.
An electric utility shall prepare a statement of income including:
(1) The book, or budgeted, statement for the test year.
(2) Adjustments to annualize and normalize under present rates, including an elimination of the effects on income of the energy cost rate and state tax adjustment surcharge.
(3) The income statement under present rates after adjustment.
(4) The adjustment for the revenue requested.
(5) The income statement under requested rates after adjustment. Each adjustment, including those relating to adjustment clauses, shall contain an explanation in sufficient clarifying detail to allow a reasonably informed person to understand the method and rationale of the adjustment. If the test year Statement of Income schedule is based upon budgeted data, provide a similar schedule which is based upon actual data for the 12-month period immediately preceding the test year.
§ 54.105. Revenues and expenses.
An electric utility shall provide a schedule showing all revenues and expenses for the test year and for the 12-month period immediately preceding the test year, together with an explanation for major variances in excess of 10% or over $1 million, whichever is less, between test year revenues and expenses and those for the previous 12-month period. Revenues and expenses shall be summarized by the major account categories listed in this section. If budgeted data for the test year is not readily available by these categories, an analysis of the data for the 12-month period immediately preceding the test year or for the most recent available calendar year may serve as the basis for ratably allocating the budgeted data into the account categories as follows:
400 Electric Revenues: Residential Sales Commercial Sales Industrial Sales Public Street & Highway Lighting Sales Sales for Resale Total Other Electric Revenues Other Electric Revenues: Late Payment Charges Miscellaneous Service Revenues Rent from Electric Property Other Electric Revenues Total Other Electric Revenues Total Operating Revenues Operating Expenses 401-2 Operation and Maintenance Expenses Power Production Expenses: Fuel Net Interchange Deferred Energy Costs Other Transmission Expenses Distribution Expenses Customer Service & Informational Expense Sales Expenses Administrative and General Expenses Total Operation & Maintenance Expenses 403 Depreciation Expenses Amortization of Net Salvage Nuclear Decommissioning Expense 407 Amortization of Property Losses Regulatory Debits Regulatory Credits 408 Taxes Other Than Income Taxes (This is the operating income prior to Federal and State income taxes). Total Operating Expenses Prior To
Federal & State Income Taxes409 Federal Income Taxes State Income Taxes 410-411 Deferred Federal Income Taxes Deferred State Income Taxes 411 Investment Tax Credit Adjustments Deferrals Amortization -- Credit Other Income Tax Credits & Charges Total Federal and State Income Taxes 411 Gain from Disposition of Utility Property 411 Loss from Disposition of Utility Property Operating Income Operating income after Federal and State
Income Taxes.A. Income and Deductions 415-18 Nonutility Operating Income 419 Interest and Divided Income 419 Allowance for Other Funds Used During Construction 421 Gain on Disposition of Nonutility Property 421 Other Miscellaneous Nonoperating Income Total Other Income B. Other Income Deductions 421 Loss on Disposition of Nonutility Property 425 Miscellaneous Amortization 426 Miscellaneous Total Other Income Deductions C. Taxes Applicable to Other Income and Deductions 408 Taxes Other Than Income Taxes 409 Federal Income Tax 409 State Income Tax Total Taxes Applicable to Other Income
and DeductionsIncome Before Interest Charges D. Interest Charges 427 Interest on Long-Term Debt 428 Amortization of Debt Discount and Expense 429 Amortization of Premium on Debt 431 Other Interest Expense 432 Allowance for Borrowed Funds Used During Construction--Credit Net Interest Charges Income Before Extraordinary Items Extraordinary Items After Taxes Net Income § 54.106. Test year adjustments.
An electric utility shall provide a summary of test year adjustments which sets forth the effect of the adjustment upon the following: operating revenues, operating expenses, taxes other than income taxes, operating income before income taxes, state income tax, Federal income tax and income available for return. In addition, test year adjustments shall be presented on the basis of the major account categories set out in § 54.105 (relating to revenues and expenses).
§ 54.107. Additional items.
An electric utility shall explain in detail by statement or exhibit the appropriateness of claiming any additional items, not otherwise specifically explained and supported in the statement of operating income.
§ 54.108. Nonjurisdictional activities.
If the utility's operations include nonjurisdictional activities, the utility shall provide a schedule which demonstrates the manner in which rate base and operating income data have been adjusted to develop the jurisdictional test year claim.
REVENUE REQUIREMENTS § 54.121. Revenue requirements.
An electric utility shall:
(1) Provide a detailed breakdown of other operating revenues (non-kwh sales) by source for the 3-calendar years preceding the test year and each month of the current test year to date (showing a year-to-date total). Update this information as additional months' data become available.
(2) Provide the workpapers and supporting documentation showing the development of the test year revenues. Explain how the number of customers and usage per customer were derived.
(3) Identify the growth in the number of customers by rate schedule for the preceding 3-calendar years, if not provided previously.
(4) Identify the actual number of customers by rate schedule for the preceding 3-calendar years and include monthly data for the most recent 12-month period. Update as additional data become available.
(e) Provide the budgeted number of customers by rate schedule for each month of the test year, if not provided previously.
(f) Provide a breakdown of actual kilowatt hour sales by rate schedule for each month of the 12-month period immediately preceding the test year showing annual totals and for each subsequent month of the test year for which data are available. Update as additional test year data become available.
(g) Provide budgeted kilowatt hour sales by rate schedule, or if unavailable then by customer class, for each month of the test year showing annual totals.
OPERATING AND MAINTENANCE EXPENSES § 54.131. Budget variance.
An electric utility shall provide a budget variance or similar report providing a comparison of actual versus budget revenues and expenses for the preceding 3-calendar years and current year-to-date. Include explanations of the variances in excess of 10% or over $1 million, whichever is less. Update as additional monthly data become available.
§ 54.132. Unadjusted operation and maintenance expenses.
A utility shall provide a detailed breakdown of unadjusted operation and maintenance expenses for the test year and the 12-month period immediately preceding the test year, either by natural expense codes, Federal Energy Regulatory Commission accounts, or both, as available. Explain any variances in excess of 10% or over $1 million, whichever is less.
§ 54.133. Benefit programs.
A utility shall provide a breakdown of Federal Energy Regulatory Commission Account 926, Employee Benefits by benefit program or plan for the preceding 3-calendar years and the amounts projected for the test year.
§ 54.134. Cost of service.
A utility shall provide the test year level of each of the following which is included in the company's cost of service by separate type or payee, or both, which were paid by the company directly or which were allocated or billed to the company by affiliates or its parent company:
(1) Fines and penalties.
(2) Contributions and donations.
(3) Membership dues.
(4) Lobbying expense.
(5) Employe activity costs--for example, picnic, parties, awards.
(6) Investor relations expenses.
§ 54.135. Outside services.
A utility shall provide the annual level of outside services employed for the preceding 3-calendar years. Include in the response a breakdown of the test year amount indicating the service provider and the type of service performed.
§ 54.136. Planned cost savings.
A utility shall describe each budgeted or planned cost savings program to be implemented during the present and subsequent year. Identify the cost of implementing the program and the anticipated annual savings.
§ 54.137. Reserve accruals and balances.
An electric utility shall explain how the company has treated reserve accruals and balances for ratemaking purposes and provide the requested level of any self-funded reserve accruals by type of item--for example, injuries and damages.
§ 54.138. Amortization claims.
An electric utility shall submit a listing of the amortization claims included in the total operation and maintenance expenses of the test year. Include the following information:
(1) Total expense being amortized.
(2) Length of amortization (months or years).
(3) Remaining unamortized balance.
(4) Commission docket where amortization initially was claimed or approved.
§ 54.139. Pension expense.
An electric utility shall provide the total amount of pension expense included in the test year and explain the basis for the claim--for example, Statement of Financial Accounting Standards No. 87 or Employee Retirement Income Security Act. Include a schedule of actual payments to the pension fund for the past 5 years.
§ 54.140. Pension plan actuarial study.
An electric utility shall provide a copy of the company's most recent pension plan actuarial study.
§ 54.141. Rate case expenses.
(a) An electric utility shall provide the following information with regard to the claim for rate case expenses:
(1) A detailed description of the estimated rate case expenses and the items comprising the company's claim.
(2) An explanation of and the supporting rationale for the claimed normalization period.
(3) A summary detailing expenses incurred to date.
(b) Update this response as additional information becomes available.
§ 54.142. Base rate filings.
An electric utility shall supply the following information for the last five base rate filings:
(1) The Docket Number.
(2) The date filed.
(3) The dates the rates became effective.
§ 54.143. Comparison of rate case expenses.
An electric utility shall provide a comparison of the estimated rate case expenses reflected in the company's filing with the actual expenses incurred for the company's last two rate cases, according to the same expense categories.
§ 54.144. Projected operations and maintenance.
An electric utility shall explain what assumptions were made in the projected operations and maintenance expenses for the test year with regard to the level or number of employe vacancies. For example, were the budgeted positions assumed to be filled or was an historical average level of vacancies reflected? Explain.
§ 54.145. Employe positions for the test year.
An electric utility shall identify the budgeted employe positions for the test year which are not currently filled. For each position, provide the wage expense included in the test year, whether the position is a new position or a position vacated by the departure or transfer of a previous employe and the date at which the position is expected to be filled.
§ 54.146. Labor data.
An electric utility shall provide the following labor data for the 3- calendar years preceding the test year and the current year-to-date including monthly data for the most recent 12-month period.
(1) The number of budgeted and actual employes broken down between category type used by the company--for example, union, nonunion, salaried, hourly, temporary and the like.
(2) The regular payroll broken down between expenses, capitalized and other.
(3) The overtime payroll broken down between expenses, capitalized and other.
(4) The temporary payroll broken down between expenses, capitalized and other.
(5) The other payroll (specify) broken down between expenses, capitalized and other.
§ 54.147. Incentive/bonus plans.
The electric utility shall provide a copy of the incentive/bonus plans and provide the level of the expenses for the 3-calendar years preceding the test year and included in the test year. Specific information by individual should be provided and will be treated in a confidential manner.
§ 54.148. Wage rate increases.
The electric utility shall provide the percentage wage rate increases granted by the company by date and employe classification for the 3-calendar years preceding the test year and the current year-to-date. Specific information by individual should be provided and will be treated in a confidential manner.
§ 54.149. Overtime.
The electric utility shall identify the amount of overtime and show the percent of payroll for each of the 2-calendar years preceding the test year.
§ 54.150. Average starting salary.
The electric utility shall provide the average starting salary for union, nonunion, and the company as a whole including the supporting calculations.
§ 54.151. Operation and maintenance expense.
The electric utility shall provide the operation and maintenance expense allocation percentage for payroll and benefits.
§ 54.152. Payroll.
The electric utility shall provide an explanation of the budgeting process for payroll.
§ 54.153. Bad debt and write-offs.
The electric utility shall identify the total revenues associated with bad debt write-offs for the 3-calendar years preceding the test year. If the company relates bad debts to other than total sales to ultimate customers, specify what revenues are utilized.
§ 54.154. Account data.
The electric utility shall provide the following information for the test year and the 3-calendar years preceding the test year by customer class:
(1) The total gross write-offs of uncollectible accounts.
(2) The total recoveries of uncollectible accounts.
(3) The net write-offs of uncollectible accounts.
(4) The total revenues.
(5) The method and rate of accrual.
§ 54.155. Vegetation/tree trimming.
The electric utility shall provide a comparison of the actual and budgeted vegetation control/tree trimming costs for the 2-calendar years preceding the test year. Explain any variance in excess of 10% or over $1 million, whichever is less.
§ 54.156. Tree trimming costs.
The electric utility shall identify the budgeted level of tree trimming costs for the test year.
§ 54.157. Nonrecurring or extraordinary expenses.
The electric utility shall list and explain the nonrecurring or extraordinary expenses incurred in the test year and the expenses included in the test year which do not occur yearly but are of a nature that they do occur over an extended period of years--that is, nonyearly maintenance programs.
§ 54.158. Extraordinary property losses.
As a separate item, the electric utility shall list extraordinary property losses related to property previously included in the cost of service when the gain or loss on this property has occurred or is likely to occur in the test year. The proposed ratemaking treatment of extraordinary gains and losses shall also be disclosed. Sufficient supporting data shall be provided.
§ 54.159. Expenses categories.
(a) The electric utility shall submit schedules for the test year and for the 12-month period immediately preceding the test year showing by major components, if included in claimed test year expenses, the expenses incurred in each of the following expense categories.
(1) Miscellaneous general expenses, including Account 930.
(2) Regulatory commission expenses.
(3) Advertising expenses, including advertising engaged in by trade associations whenever the utility has claimed a contribution to the trade association as a ratemaking claim--provide explanation of types and purposes of the advertising.
(4) Research and development expenses--provide a listing of major projects.
(5) Charitable and civic contributions, by recipient and amount.
(b) Explain the major variances in excess of 10% or over $1 million, whichever is less, between the test year expenses and those expenses for the 12-month period immediately preceding the test year.
§ 54.160. Changes by affiliates.
The electric utility shall provide an analysis by function of charges by affiliates, for the test year and the 12-month period immediately preceding the test year, for services rendered and included in the operating expenses of the filing company. Explain the nature of the service and the basis on which charges or allocations are made, including a copy of an applicable contract. Also, explain major variances in excess of 10% or over $1 million, whichever is less, between the charges for the test year and the corresponding charges for the 12-month period immediately preceding the test year.
§ 54.161. Leases.
The electric utility shall describe costs relative to leasing equipment, including computer rentals, and office space, including terms and conditions of the leases. State the method for calculating monthly or annual payments.
§ 54.162. Changes in accounting procedures.
The electric utility shall submit a statement of past and anticipated changes, since the previous rate case, in major accounting procedures, explain any differences between the basis or procedure used in allocations of revenues, expenses, depreciation and taxes in the current rate case and that used in the prior rate cases, and list the internal and independent audit reports for the most recent 2-year period.
TAXES § 54.171. Property tax assessments.
The electric utility shall provide the most recent actual property tax assessments and rates for each taxing jurisdiction whose annual assessment is $20,000 or more.
§ 54.172. Prior period taxes.
The electric utility shall indicate whether test year taxes include any assessments or refunds related to prior period taxes. Indicate the amount, the dates covered by the assessment or refund and the period in which the related income or expense was included, and the date the assessment or refund was reflected on the company's books. Explain whether reserves had been established prior to being billed for any assessment or any account receivable had been recorded prior to the company's receiving a refund.
§ 54.173. Refunds from taxing authorities.
The electric utility shall indicate if the company has applied for or is attempting to negotiate refunds from Federal, local or State taxing authorities. If yes, provide a full explanation and quantify the possible refund or abatement in question, if applicable. Provide similar information if additional assessments are anticipated.
§ 54.174. Derivation of test year level.
The electric utility shall provide workpapers and supporting documentation showing the derivation of the test year level of each tax, other than income taxes, reflected in the company's filing.
§ 54.175. Deferred income tax balances.
The electric utility shall provide a breakdown by source or timing difference of the deferred income tax balances which have not been included in rate base.
§ 54.176. Consolidated tax savings adjustment.
The electric utility shall provide the workpapers and supporting documentation for the consolidated tax savings adjustment reflected in the company's filing.
§ 54.177. Corporate Federal tax returns.
The electric utility shall provide a copy of the corporate Federal tax returns and supporting schedules for the 3-calendar years preceding the test year and, if applicable, a copy of the calculation workpapers for the company's consolidated tax savings adjustment.
§ 54.178. Actual tax liability.
The electric utility shall supply a schedule detailing the actual tax liability for the most recent 5-calendar years for each of the following taxes. Include the dates and amount of the payments made to satisfy the respective tax liabilities.
(1) Pennsylvania Capital Stock Tax.
(2) Pennsylvania Corporate Net Income Tax.
(3) Pennsylvania Gross Receipts Tax.
(4) Pennsylvania Public Utility Realty Tax.
§ 54.179. Corporate Net Income and Capital Stock Tax reports.
The electric utility shall provide complete copies of the most recently filed Pennsylvania Corporate Net Income and Pennsylvania Capital Stock Tax reports. Include a copy of the official settlement and a copy of the Federal Form 1120 as submitted to the Department of Revenue.
§ 54.180. Gross Receipts Tax and Public Utility Realty Tax.
The electric utility shall provide copies of the most recently filed Pennsylvania Gross Receipts Tax and Pennsylvania Public Utility Realty Tax reports with copies of the official settlements.
§ 54.181. Debt interest.
The electric utility shall state the amount of debt interest utilized for test year income tax calculations, including the amount which has been allocated from the debt interest of an affiliate, and provide details of debt interest and allocation computations.
§ 54.182. Other taxes.
The electric utility shall provide a schedule for the test year of Federal and state taxes other than income taxes, per books, pro forma at present rates, and pro forma at proposed rates, including the following tax categories:
(1) Social Security.
(2) Unemployment.
(3) Capital Stock.
(4) Public Utility.
(5) Other property taxes.
(6) Other appropriate categories.
§ 54.183. Adjustments.
The utility shall submit a schedule showing the adjustments from taxable net income per books to taxable net income pro forma under existing rates and pro forma under proposed rates, together with an explanation of the normalizing adjustments. Submit detailed calculations supporting taxable income before state and Federal income taxes where the income tax is subject to allocation due to operations in another state or due to operation of other taxable utility or nonutility businesses, or by operating divisions or areas.
§ 54.184. Prepaid and deferred income tax charges.
The electric utility shall furnish a breakdown of major items comprising prepaid and deferred income tax charges and other deferred income tax credits, reserves and associated reversals on liberalized depreciation.
§ 54.185. Rate cases.
The electric utility shall explain how the Federal corporate tax rates have been reflected for rate case purposes. If the Pennsylvania jurisdictional utility is part of a multicorporate system, explain how the tax savings are allocated to each member of the system.
§ 54.186. Costs of removal.
The electric utility shall explain the treatment given to costs of removal in the income tax calculation and the basis for the treatment.
§ 54.187. Income tax loss/gain carryovers.
The electric utility shall show income tax loss/gain carryovers from previous years. Show loss/gain carryovers by years of origin and amounts remaining by years at the beginning of the test year.
§ 54.188. Elimination of tax savings.
The electric utility shall state whether the company eliminates tax savings by the payment of actual interest on construction work in progress not in rate base claim. If the response is affirmative:
(1) Set forth amount of construction claimed in this tax savings reduction, and explain the basis for this amount.
(2) Explain the manner in which the debt portion of this construction is determined for purposes of the deferral calculations.
(3) State the interest rate used to calculate interest on this construction debt portion, and the manner in which it is derived.
(4) Provide details of the calculation used to determine any tax savings reduction, and state whether state taxes are increased to reflect the construction interest elimination.
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[Continued from previous Web Page] § 54.189. Consolidated income tax return.
Under section 1552 of the Internal Revenue Code, 26 U.S.C.A. § 1552 (relating to earnings and profits) and 26 CFR 1.1552-1 (relating to earnings and profits), if applicable, a parent company, in filing a consolidated income tax return for the group, shall choose one of four options by which it must allocate total income tax liability of the group to the participating members to determine each member's tax liability to the Federal government (if this interrogatory is not applicable, so state):
(1) State what option has been chosen by the group.
(2) Provide, in summary form, the amount of tax liability that has been allocated to each of the participating members in the consolidated income tax return for the test year and the most recent 3 years for which data is available.
(3) Provide a schedule, in summary form, of contri- butions which were determined on the basis of separate tax calculations made by each of the participating members to the tax liability indicated in the consolidated group tax return. Provide total amounts of actual payments to the tax depository for the tax year, as computed on the basis of separate returns of members.
(4) Provide the most recent annual income tax return for the group.
(5) Provide details of the amount of the net operating losses of any member allocated to the income tax returns of each of the members of the consolidated group for the test year and the most recent 3 years for which data is available, together with a summary of the actual tax payments for those years.
(6) Provide details of the amount of net negative income taxes, after the tax credits are accounted for, of any member allocated to the income tax return of each of the members of the consolidated group for the test year and the most recent 3 years for which data is available, together with a summary of the actual tax payments for those years.
§ 54.190. Use of accelerated tax depreciation.
The electric utility shall provide detailed computations by vintage year showing State and Federal deferred income taxes resulting from the use of accelerated tax depreciation associated with post-1969 public utility property, Asset Depreciation Range rates, and accelerated tax depreciation associated with post-1980 public utility property under the Accelerated Cost Recovery System (ACRS).
(1) Reconcile and explain any differences in the base used to calculate State and Federal deferred income taxes.
(2) State whether tax depreciation is based on the rate base items claimed as of the end of the test year, and whether it is the annual tax depreciation at the end of the test year.
(3) Reconcile differences between the deferred tax balance, as shown as a reduction to rate base, and the deferred tax balance as shown on the balance sheet.
§ 54.191. Breakdown of accumulated and unamortized investment tax credits.
The electric utility shall submit a schedule showing a breakdown of accumulated and unamortized investment tax credits, by vintage year and percentage rate, together with calculations supporting the amortized amount claimed as a reduction to pro forma income taxes. Provide details of methods used to write-off the unamortized balances.
§ 54.192. Federal income tax refunds.
The electric utility shall submit a schedule which shows Federal income tax refunds, plus interest--net of taxes, received for the last 5 years due to prior years' claims.
DEPRECIATION § 54.201. Depreciation.
(a) The electric utility shall provide the following in an electronic format:
(1) The aged plant data necessary to complete a service life study based on Plant Mortality Data through the end of the 12-month period immediately preceding the test year.
(2) The data necessary to calculate annual and accrued depreciation as of the end of the test year and the 12-month period immediately preceding the test year.
(b) The utility shall explain and provide the workpapers and supporting calculations showing how the book reserve as of the end of the 12-month period immediately preceding the test year was brought forward to determine the book reserve as of the end of the test year.
(c) The utility shall provide the following information:
(1) A detailed explanation describing how the rate of depreciation was calculated.
(2) The most recent depreciation study performed.
(3) The service life calculations for each account.
(4) The depreciation study filed in the company's last base rate proceeding. Also, the service life calculations for each account.
(5) A detailed schedule depicting the accounts with service life changes from the last service life study to the present service life study.
(d) The utility shall provide the following information:
(1) The basis of, and the supporting documentation for, the net salvage estimate for the test year.
(2) A detailed schedule, by month, listing the net salvage calculations (that is, cost of removal less gross salvage = net salvage) for the last 5 years.
(3) The company's definition of cost of removal and salvage.
(e) The utility shall provide a comparison of the calculated annual depreciation expense amount accrual for the test year and the 12-month period immediately preceding the test year versus the book expense amount by functional group and by account, if available.
(f) The utility shall supply a schedule by account or by depreciable group showing the survivor curve or interim survivor curve and annual accrual rate estimated to be appropriate:
(1) For the purpose of this filing.
(2) For the purpose of the most recent rate filing prior to the current proceeding.
(3) Supply an explanation for major changes in annual accrual rate by account or by depreciable group.
(4) Supply a comprehensive statement of major changes made in depreciation methods, procedures and techniques and the effect of the changes upon accumulated and annual depreciation, if any.
(g) When the retirement rate actuarial method of mortality analysis is utilized, set forth representative examples including charts depicting the observed and estimated survivor curves and a tabular presentation of the observed and estimated life tables plotted on the chart.
(h) The utility shall provide a description of the depreciation methods utilized in calculating annual depreciation amounts and depreciation reserves, together with a discussion of the significant factors which were considered in arriving at estimates of service life and forecast retirements by facilities, accounts or subaccounts, as applicable.
RATE BASE § 54.211. Rate base.
The utility shall provide the following information:
(1) A detailed explanation of the procedures utilized to determine the level of Total Rate Base.
(2) A detailed explanation of the test that the company utilized to ensure that nonused and useful plant was eliminated from its claim.
§ 54.212. Actual and budgeted construction expenditures.
The electric utility shall provide a detailed comparison of actual and budgeted construction expenditures for the 3-calendar years preceding the test year and the current year-to-date. Update as additional data become available.
§ 54.213. Actual and budgeted plant additions and retirements.
The electric utility shall provide a detailed comparison by function of actual and budgeted plant additions and retirements for the 3-calendar years preceding the test year and the current year-to-date. Update as additional data become available.
§ 54.214. Test year plant additions.
For each test year plant addition of greater than $100,000, the utility shall provide a schedule showing:
(1) A complete description of the project.
(2) The anticipated retirements related to the plant addition.
(3) The budgeted cost of the total project.
(4) The starting date of the project.
(5) The original anticipated in-service date.
§ 54.215. Total cost of plant additions and retirements.
The electric utility shall provide a schedule of the total cost of plant additions and retirements by plant account for each quarter of the 12-month period immediately preceding the test year and the company's estimated quarterly plant additions and retirements for the test year. Also, provide the company's projected capital additions and construction expenditures for the 2-calendar years subsequent to the test year.
§ 54.216. Monthly balances.
The electric utility shall provide the actual monthly balance of each of the following items for each month of the test year to date and the 12-month period immediately preceding the test year. Update as additional monthly balances become available.
(1) Electric Plant in Service.
(2) Plant Held for Future Use, if a claim is made for Allowance for Funds Used During Construction treatment.
(3) Construction Work In Progress-Pollution Control Expenditures.
(4) Accumulated Depreciation and Amortization.
(5) Accumulated deferred income taxes broken down by Federal Energy Regulatory Commission Accounts 190, 282, and 283.
§ 54.217. Plant Held for Future Use.
If a claim for Allowance for Funds Used During Construction treatment on future use property is made, indicate for each property included in Plant Held for Future Use, the following:
(1) The original cost and date of purchase.
(2) The planned use of the property.
(3) The date first included in the rate base.
(4) The date on which the item is expected to be placed in service.
§ 54.218. Canceled construction projects.
If the company has included any costs associated with canceled construction projects or obsolete inventory in the test year, separately identify the items, provide the related amounts, and explain the reason for the cancellation or obsolescence.
§ 54.219. Development of the allocation of common utility plant.
The electric utility shall provide workpapers showing the development of the allocation of common utility plant, and the like. (if applicable). Include the calculations performed to develop the allocation and the supporting documents, studies or other information used. Common utility plant refers to any plant in service which is used as a common facility between the company and an affiliate or non-affiliate and from which a billing results.
§ 54.220. Initially approved construction budget.
The electric utility shall provide a detailed schedule, on a yearly basis for the last 5-calendar years, of the amount of the initially approved construction budget (by the Board of Directors), and the actual corresponding amount of completed construction.
§ 54.221. Plant in service.
The electric utility shall provide a detailed schedule, for the last five rate cases, of the amount of forecasted completed plant in service as claimed by the company and the corresponding amount of plant in service actually completed by the company by the end of the test year.
§ 54.222. Contributions in aid of construction.
The utility shall explain in detail what accounts the contributions in aid of construction were contributed for and whether the company depreciated any of the contribution in aid of construction.
§ 54.223. Projected customer advances and deposits.
The electric utility shall provide the workpapers and supporting documentation relied upon to derive the projected balance of customer advances and customer deposits.
§ 54.224. Actual customer advances and deposits.
The electric utility shall provide the actual balances of customer advances and customer deposits for each month of the 12-month period immediately preceding the test year through the most recent month available. Update as additional monthly balances become available.
§ 54.225. Claim for prepayments.
If a claim for prepayments is included in the Working Capital amount, provide a breakdown of the monthly balance of prepayments by type of prepayment for the 3-calendar years preceding the test year and the current year-to-date. Update as additional monthly balances become available.
§ 54.226. Fuel inventory.
The electric utility shall explain how the company determined the projected test year tonnage or gallons of fuel inventory at each power station and provide workpapers supporting the derivation of those amounts.
§ 54.227. Average inventory value.
The electric utility shall explain and provide the workpapers showing the derivation of the estimated 13-month average inventory value of the fuel at each power station.
§ 54.228. Actual fuel inventory.
The electric utility shall provide the actual fuel inventory in tons or gallons and dollars at each power station at the end of each month of the 12-month period immediately preceding the test year through the most recent month available. Update as additional data become available.
§ 54.229. Materials and supplies balances.
The electric utility shall explain how the materials and supplies balances for the test year were projected including the inventory valuation method. Provide the supporting workpapers. If the company uses a model to calculate material and supply levels, supply an illustrative example of how the monthly balances are derived.
§ 54.230. Electric Plant in Service.
The electric utility shall provide schedules supporting claimed amounts for Electric Plant in Service by function and by account if available.
§ 54.231. Reserve amounts.
The electric utility shall provide a comparison of the calculated depreciation reserve amount versus the book reserve amount at the end of the test year. Provide this comparison by functional group and by account, if available.
§ 54.232. Original cost plant and applicable reserves.
The electric utility shall provide supporting schedules which indicate the procedures and calculations employed to develop the original cost plant and applicable reserves to the test year end as submitted in the current proceeding.
§ 54.233. Rate case adjustments.
The electric utility shall provide a schedule showing details of rate case adjustments.
§ 54.234. Rate base and rates of return.
The electric utility shall provide a schedule showing the test year rate base and rates of return at original cost less accrued depreciation under present rates and under proposed rates. Claims made on this schedule should be cross referenced to appropriate supporting schedules. Provide a similar schedule for the 12-month period immediately preceding the test year.
§ 54.235. Construction work in progress.
If a claim is made for construction work in progress, the electric utility shall provide a supporting schedule which sets forth separately, revenue-producing and nonrevenue-producing amounts, and include, for each category a summary of the work orders, amounts expended by the end of the test year and anticipated in-service dates. Indicate if the construction work in progress will result in insurance recoveries, reimbursements or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page of the work order. Include final completion dates and estimated total amounts to be spent on each project.
§ 54.236. Materials, supplies or fuel inventory.
If a claim is made for materials and supplies or fuel inventory, the electric utility shall provide a supporting schedule for each claim showing the latest actual 13 monthly balances and showing in the case of fuel inventory claims, the type of fuel, and location, as in station, and the quantity and price claimed.
§ 54.237. Cash working capital.
If a claim is made for cash working capital, provide a supporting schedule setting forth the method and the detailed data utilized to determine the cash working capital requirement. If not provided in the supporting data, provide a lead-lag study of working capital, completed no more than 6 months prior to the rate case filing.
§ 54.238. Compensating bank balances.
If a claim is made for compensating bank balances, the electric utility shall provide the following information:
(1) The name and address of each bank.
(2) The types of accounts with each bank--checking, savings, escrow, other services, and the like.
(3) The average daily balance in each account.
(4) Amount and percentage requirements for compensating bank balance at each bank.
(5) The average daily compensating bank balance at each bank.
(6) Documents from each bank explaining compensating bank balance requirements.
(7) The interest earned on each type of account.
(8) A calculation showing the average daily float for each bank.
§ 54.239. Additional claims.
The electric utility shall explain in detail by statement or exhibit the appropriateness of additional claims, or the use of a method not previously mentioned, in the claimed rate base.
§ 54.240. Surviving original cost plant.
The electric utility shall provide the surviving original cost plant at the appropriate test year date by account or functional property group and include claimed depreciation reserves. Provide annual depreciation accruals where appropriate. These calculations should be provided for plant in-service as well as other categories or plant, including, but not limited to, contributions in aid of construction, customers' advances for construction, and anticipated retirements associated with construction work in progress claims, if applicable.
§ 54.241. Vintage at the Federal Energy Regulatory Commission (FERC) account.
The electric utility shall provide representative examples of detail calculations by vintage at the FERC account or at a more detailed level, as performed for these purposes. Other vintage detail calculations shall be made available upon request.
GENERAL INFORMATION § 54.251. General
The electric utility shall provide a corporate history including the dates of original incorporation, subsequent mergers and acquisitions. Indicate the counties, cities and other governmental subdivisions to which service is provided, including service areas outside this Commonwealth, and the total number of customers or billed units in the areas served.
§ 54.252. Overall system map.
The electric utility shall provide an overall system map, including and labeling the generating plants, transmission substations--indicate voltage, transmission system lines--indicate voltage, and the interconnection points with other electric utilities, power pools, and other like systems.
§ 54.253. Budget utilized.
The electric utility shall supply a copy of the budget utilized as a basis for any test year claim, and explain the utility's budgeting process.
§ 54.254. Projected operating and capital budgets.
The electric utility shall supply summaries of the utility's projected operating and capital budgets for the 2-calendar years following the end of the test year.
§ 54.255. Unadjusted detailed schedules.
The electric utility shall provide the following unadjusted detailed schedules by function and by Federal Energy Regulatory Commission account for the claimed test year and for each of the three preceding comparable years:
(1) A balance sheet, in the form available.
(2) A statement of income.
(3) Plant in service.
(4) Accumulated depreciation.
§ 54.256. Plant addition or removal from service.
Whenever a major generating plant is placed in operating service or removed from operating service, the utility shall separately indicate the effect of the plant addition or removal from service upon rate base, revenue, operations and maintenance expense, depreciation, taxes, income and revenue requirements as it affects the test year.
§ 54.257. Description of property and system's operation.
The electric utility shall provide a description of the property of the utility and an explanation of the system's operation. Supply the following, using available projections, if actual data is unavailable:
(1) A schedule of generating capability showing for the test year, and for the two consecutive 12-month periods immediately preceding the test year, net dependable capacity in kilowatts by unit, plant capacity factor by unit, and total fuel consumption by type and cost for each unit, if available, or for each station, and operation and maintenance expenses by station.
(2) A schedule showing for the test year and for the 12-month period immediately preceding the test year the scheduled and unscheduled outages--in excess of 48 hours--for each station, the equipment or unit involved, the date the outage occurred, duration of the outage, maintenance expenses incurred for each outage, if available, and amounts reimbursable from suppliers or insurance companies.
(3) A schedule for each unit retired during the test year or subsequent to the end of the test year which shows the unit's kilowatt capacity, hours of operation during the test year, net output generated, cents/kilowatt hour of maintenance and fuel expenses, and date of retirement.
(4) A schedule showing the latest projections of capacity additions and retirements--costs and kilowatts--and reserve capacity at the time of peak for at least 10 years beyond the test year, including the in-service dates--actual or expected--and Allowance for Funds Used During Construction cutoff dates--if different from in- service dates--for the new generating units coming on line during or subsequent to the test year, if claimed.
§ 54.258. New rate tariff.
(a) If a utility files a tariff stating a new rate, based in whole or in part on the cost of construction, as defined in 66 Pa.C.S. § 1308(f) (relating to voluntary changes in rates), of an electric generating unit, the utility shall identify:
(1) The total cost of the generating unit.
(2) The following costs:
(i) The cost and quantity of each category of major equipment, such as switchgear, pumps or diesel generators and the like.
(ii) The cost and quantity of each category of bulk materials, such as concrete, cable and structural steel.
(iii) Manual labor.
(iv) Direct and indirect costs of architect/engineering services.
(v) Direct and indirect costs of subcontracts or other contracts involving major components or systems such as turbines, generators, nuclear steam supply systems and major structures.
(vi) Distributed costs.
(3) A cost increase of $5 million or more, including Allowance for Funds Used During Construction, over the original utility estimates provided under 66 Pa.C.S. § 515(a) (relating to construction cost of electric generating units) and its causes.
(b) Compliance with subsections (a) and (b) shall be identical in format and substance as that provided under § 57.103 (relating to estimate of construction costs) for original cost estimates submitted under 66 Pa.C.S. § 515(a).
§ 54.259. Quarterly balance sheets and income statements.
The electric utility shall provide a copy of the company's detailed quarterly balance sheets and income statements for each quarter of the 12-month period immediately preceding the test year through the most recent quarter available.
§ 54.260. Annual report form.
The electric utility shall provide a copy of the company's most recent Federal Energy Regulatory Commission Form 1 Annual Report.
§ 54.261. Adjustments to rate base and operating income.
The electric utility shall provide the workpapers and supporting documentation, to the extent not otherwise provided, for the adjustments to rate base and operating income reflected in the company's filing.
§ 54.262. Annual Resource Planning Report.
The electric utility shall provide the most recent Annual Resource Planning Report prepared for the company and the cost analysis covering selection of alternative forms of generating capacity, if not already provided.
§ 54.263. Generation planning criteria.
The electric utility shall describe the generation planning criteria used by the company. Provide any reports or documents that characterize the generation planning criteria.
RATE OF RETURN § 54.281. Components of claimed capitalization (Schedule 1).
The electric utility shall provide a schedule (Schedule 1) showing the major components of claimed capitalization, and the derivation of the weighted costs of capital for the rate case claim. This schedule shall include a descriptive statement concerning the major elements of changes in claimed capitalization, cost rates and overall return from comparable historical data.
§ 54.282. Components of claimed capitalization (Schedule 2).
The electric utility shall provide a schedule (Schedule 2) in the same format as Schedule 1, except for the omission of the descriptive statement, for the comparable 12-month period immediately preceding the test year and the 2-calendar years immediately preceding the test year. Irrespective of whether the capitalization claimed on Schedule 1 includes short-term debt, Schedule 2 should reflect capital ratios with and without short-term debt.
§ 54.283. Embedded cost of long-term debt.
(a) The electric utility shall provide a schedule showing the calculation of the embedded cost of long-term debt, by issue, supporting the related rate case claim. The schedule shall contain the following information:
(1) The date of issue.
(2) The date of maturity.
(3) The amount issued.
(4) The amount outstanding.
(5) The amount retired.
(6) The amount reacquired.
(7) The gain or loss on reacquisition.
(8) The coupon rate.
(9) The discount or premium at issuance.
(10) The issuance expense.
(11) The net proceeds.
(12) The sinking fund requirements.
(13) The effective cost rate.
(14) The total average weighted effective cost rate.
(b) Clearly note projected new issues, retirements and other major changes from the data for the comparable 12-month period immediately preceding the test year.
§ 54.284. True or economic cost of debt.
If a claim made for a true or economic cost of debt exceeds that shown in the preceding nominal cost schedule because of convertible features, sale with warrants or for any other reason, a full statement of the basis for such a claim should be provided.
§ 54.285. Bank notes payable.
The electric utility shall provide the following information concerning bank notes payable for the test year and for the comparable 12-month period immediately preceding the test year:
(1) The line of credit at each bank.
(2) The average daily balances of notes to each bank, by name of bank.
(3) The interest rate charged on each bank note (prime rate, formula rate or other).
(4) The purpose of each bank note, such as, construction, fuel storage, working capital, debt retirement.
(5) The prospective future need for this type of financing.
§ 54.286. Short-term debt.
The electric utility shall provide detailed information concerning the other short-term debt outstanding.
§ 54.287. Long-term debt.
The electric utility shall describe long-term debt reacquisition by issue by company and its parent as follows:
(1) Reacquisition by issue by year.
(2) Total gain or loss on reacquisitions by issue by year.
(3) Accounting for gain or loss for income tax and book purposes.
(4) Proposed treatment of gain or loss on such reacquisition for ratemaking purposes.
§ 54.288. Embedded cost of preferred stock equity.
(a) The electric utility shall provide a schedule showing the calculation of the embedded cost of preferred stock equity by issue, supporting the related rate case claim. The schedule shall contain the following information:
(1) The date of issue.
(2) The date of maturity.
(3) The amount issued.
(4) The amount outstanding.
(5) The amount retired.
(6) The amount reacquired.
(7) The gain or loss on reacquisition.
(8) The dividend rate.
(9) The discount or premium at issuance.
(10) The issuance expenses.
(11) The net proceeds.
(12) The sinking fund requirements.
(13) The effective cost rate.
(14) The total average weighted effective cost rate.
(b) Projected new issues, retirements and other major changes from the data for the comparable 12-month period immediately preceding the test year should be clearly noted.
§ 54.289. Claimed common equity rate of return.
The electric utility shall provide complete support for the claimed common equity rate of return.
§ 54.290. Summary of stock dividends.
The electric utility shall provide a summary statement of the stock dividends, splits or par value changes during the 2-calendar years preceding the test year.
§ 54.291. Issuances of common stock.
The electric utility shall provide a schedule of the issuances of common stock, whether or not underwriters are used, for the comparable 12-month period immediately preceding the test year and the 2-calendar years preceding the test year.
(a) Submit details on the utility and parent company stock offerings--past 5 years to present--as follows:
(1) The date of prospectus.
(2) The date of offering.
(3) The record date.
(4) The offering period--dates and numbers of days.
(5) The amount and number of shares offered.
(6) The offering ratio, if rights offering.
(7) The percent subscribed.
(8) The offering price.
(9) The gross proceeds per share.
(10) The expenses per share.
(11) The net proceeds per share (9 minus 10).
(12) The market price per share.
(i) At record date.
(ii) At offering date.
(iii) One month after close of offering.
(13) The average market price during offering.
(i) Price per share.
(ii) Rights per share--average value of rights.
(14) The latest reported earnings per share at time of offering.
(15) The latest reported dividends at time of offering.
§ 54.292. Reasons for claim.
If a claim of the filing utility is based on utilization of the capital structure or capital costs of the parent company and system--consolidated--the reasons for this claim shall be fully stated and supported.
§ 54.293. Capitalization data.
Regardless of the claim made, the electric utility shall provide the capitalization data for the parent company and for the system--consolidated.
§ 54.294. Balance sheet and income statement.
The electric utility shall provide the latest available balance sheet and income statement for the parent company and system--consolidated.
§ 54.295. Organizational chart.
The electric utility shall provide an organizational chart explaining the filing utility's corporate relationship to its affiliates--system structure.
§ 54.296. Latest quarterly operating and financial report.
The latest available quarterly operating and financial report, annual report to the stockholders and prospectus shall be supplied for the utility and for the utility's parent, if the relationship exists.
§ 54.297. Capital requirements and sources.
The electric utility shall supply projected capital requirements and sources of the filing utility, its parent and system--consolidated--for the test year and the subsequent 3-calendar years.
§ 54.298. Coverage requirements or capital structure ratios.
The electric utility shall state what coverage requirements or capital structure ratios are required in the most restrictive of applicable indentures/charter tests and how these measures have been computed.
§ 54.299. Comparative financial data.
A schedule of comparative financial data shall be supplied for the test year, the comparable 12-month period immediately preceding the test year, and the 2-calendar years immediately preceding the test year. Changes in Moody's/Standard & Poors ratings, noted on this schedule, shall be accompanied by the Moody's/Standard & Poors write up of the change, if available. The following financial data and ratios shall be supplied for the utility's parent, when applicable, if not available for the utility:
(1) The times interest earned ratio--pretax and post-tax basis.
(2) The preferred stock dividend coverage ratio-- post-tax basis.
(3) The times fixed charges earned ratio--pretax basis.
(4) The earnings per share.
(5) The dividend per share.
(6) The average dividend yield (52-week high/low common stock price).
(7) The average book value per share.
(8) The average market price per share.
(9) The market price-book value ratio.
(10) The earnings-book value ratio (per share basis, average book value).
(11) The dividend payout ratio.
(12) The allowance for Funds Used During Construction as a percent of earnings available for common equity.
(13) The construction work in progress as a percent of net utility plant.
(14) The effective income tax rate.
(15) The internal cash generations as a percent of total capital requirements.
COST OF SERVICE § 54.311. Cost of service
(a) The electric utility shall provide a cost study which allocates the total cost-of-service to each proposed tariff rate schedule. Tariff rate schedules may be combined for this purpose provided that they are of a similar supply or end-use nature. A statement describing which rate schedules were combined and the reasons for the combination should be submitted. The rates of return for each tariff rate schedule as defined in this section should be determined at both the present and proposed rate levels. Base rate revenues should be used for this purpose unless there are good and sufficient reasons to include revenues derived from other sources. If the latter is the case, an explanation of other revenue sources included and reasons for including them should accompany the cost allocation study. The methods selected for use in allocating costs to rate classes should include cost analyses based on:
(1) Peak responsibility.
(2) Average and excess, on a noncoincident demand basis.
(3) Company preferred method, if different from these methods referenced in this section, with rationale behind the selection.
(b) This study should include a statement of the source and age of the load data used in the determination of demand responsibilities, a description of any special studies used to prepare the cost study, and the most recent overall system line loss study. The cost data used in the allocation study may be based on the test year.
§ 54.312. Comparisons of cost.
The electric utility shall provide comparisons in either graphical or tabular form showing cost, as defined in the cost-of-service study, and proposed base rate revenues and usage for the residential and demand/energy rate schedules. Demand shall be for representative loads for each demand/energy rate schedule.
§ 54.313. Additional information to be provided.
The electric utility shall provide, in hard copy and on a computer disk, for each month of the most recent 10-year period, if available, for each rate class in the class cost-of-service study, the following:
(1) The generation level demand coincident with the system peak.
(2) The generation level maximum class demand (that is, noncoincident peak demand) for annual peak.
(3) The number of customers.
(4) The annual kilowatt hours at generation.
(5) The date, time and level of monthly peak demand for both Pennsylvania jurisdiction and total company system loads covered by an integrated dispatch and total of the classes covered by the cost-of-service study.
§ 54.314. Allocators and direct assignment.
The electric utility shall provide workpapers showing the development of each allocator (for those not already provided elsewhere) and direct assignment in the class cost-of-service study. Provide descriptions of the methods, the underlying data and calculations that show development of the allocator or direct assignment from the raw data. For normalization (for example, weather), provide a description of the normalization and the equations used.
§ 54.315. Functionalization of plant.
The electric utility shall describe the functionalization of plant into two or more functional components (for example, distribution plant into demand and customer components) and provide the workpapers supporting the separation. If divisions are made separating plant into subclassification (for example, primary and secondary distribution), describe the basis for the separation and provide workpapers supporting the division.
§ 54.316. Class demands relied on.
The electric utility shall provide the analysis used to develop the class demands relied on in the preparation of the demand allocators for the class cost-of-service study. Indicate classes that are (or nearly are) 100% recorded by time-of-use. For other classes, provide an explanation of the method used to estimate class loads and supporting workpapers.
§ 54.317. Customers taking interruptible service.
For each customer taking interruptible service (do not identify customers by name), provide:
(1) The amount of interruptible capacity under contract.
(2) The amount of firm capacity under contract.
(3) The time, duration and amount of capacity reduction for each requested interruption for the most recent 3-year period.
(4) The maximum load imposed by the customer on the company during each requested interruption for the most recent 3-year period.
(5) If credit is awarded on a basis of actual interruption (as contrasted to a simple credit or reduced monthly demand charge for each kilowatt of interruptible service), provide the amount received for each requested interruption.
§ 54.318. Demand and customer related components.
The electric utility shall provide the documentation, workpapers and analyses to support the functionalization and classification of distribution plant into demand and customer-related components.
§ 54.319. Forecasted test period monthly resource availability.
The electric utility shall provide forecasted test period monthly resource availability (including imports and exports) to meet demand. Provide actual data for the 12-month period immediately preceding the test year. For each resource, provide monthly capability and disposition (for example, available, down for maintenance, and the like). Show the amount and percentage of reserves for each month.
§ 54.320. Weather normalization adjustment.
If a weather normalization adjustment is made, supply the following information regarding normal degree days and the company's weather normalization adjustment:
(1) The National Oceanic and Aeronautical Administration weather reporting stations that were utilized.
(2) If more than one weather reporting station was used, provide the weighting applied to each station in arriving at the composite total.
(3) The supporting National Oceanic and Aeronautical Administration data for normal degree days, if the company used anything other than the 30-year National Oceanic and Aeronautical Administration normals.
§ 54.321. Typical customer demand and usage profile.
The electric utility shall provide a typical customer demand and usage profile for each of the company's service offerings.
§ 54.322. Bill comparison.
Under present and proposed rates, the electric utility shall provide a bill comparison (with calculations) showing a typical commercial customer and industrial customer demand and usage charges under firm and interruptible service.
§ 54.323. Bill frequency analysis.
The electric utility shall provide a bill frequency analysis for each customer class.
§ 54.324. Design peak day.
If the electric utility has a design peak day, the utility shall explain in detail how the design peak day was calculated and supply the supporting calculations.
§ 54.325. Peak day capacity.
The electric utility shall provide the following information:
(1) The Total and Peak day capacity (in megawatts) for the company's system and the designated capacity.
(2) The number of customers in each class and each class's usage, by month, for the test year.
§ 54.326. Meters.
The electric utility shall provide a detailed description of the various meters used by the company to meter its customers' usage. Include the manufacturer's name, the average age and the advantages of utilizing that type of meter. If the company has utilized any type of remote metering, provide an explanation.
§ 54.327. Individual rate effects.
The electric utility shall provide a summary schedule of the individual rate effects. For each Pennsylvania jurisdictional rate, show the following information for the test period selected:
(1) The rate schedule designation.
(2) For existing rates:
(i) The customers served as of end of period.
(ii) The annual kilowatt hours sales.
(iii) The base rate revenues adjusted for any changes in base rate application that may have occurred during the test period.
(iv) The tax surcharge revenues.
(v) The energy cost adjustment clause revenues.
(vi) The revenues received from other clauses or riders separately accounted for.
(vii) The total of the revenues.
(3) For proposed rates:
(i) The estimated number of customers whose charges for electric service will be increased or decreased as a result of this filing.
(ii) The base rate revenues:
(A) The annual dollar amount of increase or decrease.
(B) The percentage change.
(iii) The estimated tax surcharge revenues based on the assumption that the base rate changes proposed were in place.
(iv) The estimated energy cost adjustment clause revenues.
(v) The revenues received from other clauses or riders separately accounted for.
(vi) The total of the revenues:
(A) The amount of total annual dollar change.
(B) The percentage change.
(vii) Supplement the revenue summary to obtain a complete revenue statement of the electric business, that is, show delayed payments, other electric revenues, Federal Energy Regulatory Commission jurisdictional sales and revenues and the other appropriate revenue items and adjustments.
(viii) Develop the grand total showing total sales and revenues as adjusted and the various increases and decreases and percent effects as described in this section.
§ 54.328. Changes proposed for new tariff.
The electric utility shall provide a description of changes proposed for the new tariff:
(1) For each rate schedule proposed to be modified.
(2) For each rate schedule proposed to be deleted.
(3) For each new rate schedule proposed to be added.
§ 54.329. Annual revenue effect.
The annual revenue effect of a proposed change to a rate shall be supported by a billing analysis. This may consist of the use of bill frequency distributions or individual customer billing records for the most recent annual periods available. The billing determinants should be displayed. The blocking and corresponding prices of the existing rate and the proposed rate should be applied to the determinants to derive the base rate revenues under both present and proposed rates. The derived base rate revenues should form the basis for measuring the annual base rate effect of the rates in question for the test periods.
§ 54.330. Effect of proposed base rate.
For each rate applicable to residential service, provide a chart or tabulation which shows the dollar and percentage effect of the proposed base rate on monthly bills ranging from the use of zero kilowatt hours to 5,000 kilowatt hours, at appropriate intervals.
§ 54.331. Percentage effect of proposed base rate.
For each rate that requires both a billing demand (kilowatt) and energy (kilowatt hour) as the billing determinants, provide a tabulation or graphical comparison showing the percentage effect of the proposed base rate on monthly bills using several representative demand (kilowatt) levels, the monthly kilowatt hours for each demand selected to be in load factor increments of 10% starting at 0% and ending at 100% (730H) or by hours' use increments that covers approximately 95% of the bills.
QUALITY OF SERVICE § 54.341. Quality of service.
(a) The electric utility shall provide details about any informal quality of service complaints which the company has received during the 2-calendar years preceding the test year. Identify the nature of the complaints, the number of complaints and whether the complaints were resolved.
(b) The electric utility shall provide a list of the formal complaints filed with the Commission relating to quality of service during the 2-calendar years preceding the test year. Provide details on any action taken by the company in response to these complaints.
(c) The electric utility shall provide a discussion of the company's policy on tracking and responding to customer complaints.
[Pa.B. Doc. No. 97-302. Filed for public inspection February 28, 1997, 9:00 a.m.]
Document Information
- PA Codes:
- 52 Pa. Code § 54.1
52 Pa. Code § 54.2
52 Pa. Code § 54.311
52 Pa. Code § 54.312
52 Pa. Code § 54.313
52 Pa. Code § 54.314
52 Pa. Code § 54.315
52 Pa. Code § 54.316
52 Pa. Code § 54.317
52 Pa. Code § 54.318
52 Pa. Code § 54.319
52 Pa. Code § 54.320
52 Pa. Code § 54.321
52 Pa. Code § 54.322
52 Pa. Code § 54.323
52 Pa. Code § 54.324
52 Pa. Code § 54.325
52 Pa. Code § 54.326
52 Pa. Code § 54.327
52 Pa. Code § 54.328
52 Pa. Code § 54.329
52 Pa. Code § 54.330
52 Pa. Code § 54.331
52 Pa. Code § 54.341