TITLE 170 INDIANA UTILITY REGULATORY COMMISSION
Proposed Rule
LSA Document #08-670
DIGEST
Amends
170 IAC 1-5-1 through
170 IAC 1-5-16 and adds
170 IAC 1-5-2.1 to update and revise the minimum standard filing requirements for a rate case to be decided on an expedited basis. Effective 30 days after filing with the Publisher.
Rule 5. Minimum Standard Filing Requirements for an Expedited Rate Case
Authority:
IC 8-1-1-3
Sec. 1. (a) The definitions in this section apply throughout this rule.
(a) (b) Where applicable, terms used in this rule shall have the meaning assigned to them in
the following:
(c) Where applicable, terms used in this rule shall have the meaning assigned to them in (3) The FERC Uniform System of Accounts, incorporated by reference at
170 IAC 4-2-1.1 and
170 IAC 5-2-3.
(d) As used in this rule, (c) "Allowance for funds used during construction" or "AFUDC" has the meaning
as set forth in
170 IAC 4-6-1(b).
(e) As used in this rule, (d) "Case-in-chief" means the filing by a utility with the commission of the information required under section 6 of this rule.
(f) As used in this rule, (e) "Commission" means the Indiana utility regulatory commission.
(f) "Construction work in progress" or "CWIP" has the meaning set forth in 170 IAC 4-6-1(e).
(g) As used in this rule, "Cutoff" or "cutoff date" means a specific date on which a value is determined for purposes of a proceeding under this rule.
(h) As used in this rule, "CWIP" has the meaning as set forth in 170 IAC 4-6-1(e).
(i) As used in this rule, (h) "Demand side management" or "DSM" has the meaning
as set forth in
170 IAC 4-8-1(e).
(j) As used in this rule, (i) "Electing utility" means a utility that elects to file a case for a general rate change in accordance with this rule.
(k) As used in this rule, "FCC" means the Federal Communications Commission.
(l) As used in this rule, (j) "FERC" means the Federal Energy Regulatory Commission.
(m) As used in this rule, (k) "FERC Uniform System of Accounts" means the rules and regulations governing the classification of accounts applicable to a utility as adopted by the FERC and adopted by reference by the commission for Indiana utilities.
(n) As used in this rule, (l) "Major project" means a project that is estimated to cost more than one percent (1%) of a utility's proposed rate base under section 9(1) section 9(a)(1) of this rule.
(m) "NARUC" means the National Association of Regulatory Utility Commissioners.
(o) As used in this rule, (n) "NARUC Uniform System of Accounts" means the rules and regulations governing the classification of accounts applicable to a utility as developed by the National Association of Regulatory Utility Commissioners NARUC and adopted by reference by the commission for Indiana utilities.
(o) "OUCC" means the Indiana office of utility consumer counselor.
(p) As used in this rule, "Parent corporation" means a corporation that owns or controls more than fifty percent (50%) of the voting stock of an electing utility.
(q) As used in this rule, "post-filing date" means the date two (2) weeks following the date a utility files its case-in-chief in accordance with this rule.
(q) "Presiding officer" means one (1) or more persons assigned by the commission to preside over a case and shall include the following:
(1) One (1) or more administrative law judges.
(2) If so assigned, one (1) or more commissioners.
(r) "Working papers" means all documents required to be submitted under sections 7 through 16 of this rule. Working papers may be provided in paper or electronic format but shall be organized according to the sections and subsections of this rule. Each working paper must be:
(1) legible;
(2) paginated; and
(3) specifically identified.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-1; filed Oct 28, 1998, 3:38 p.m.: 22 IR 719; errata filed Nov 22, 1999, 3:32 p.m.: 23 IR 812; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
Authority:
IC 8-1-1-3
Sec. 2. (a) This rule is designed to:
(1) assist the commission in performing a thorough thoroughly and expeditious review of an application expeditiously reviewing a petition for a general rate change by an electing utility; for a general rate change. The rule is intended to be used to
(2) provide support for the electing utility's rate application petition; and to provide supplemental information to facilitate the review of the rate application as filed. The rule is intended as a means to
(3) reduce or avoid disputes.
The following shall apply to proceedings under this rule (b) Notwithstanding any other provisions of this rule,
this rule shall not:
(1) This rule shall not limit any rights of the commission or any party to a proceeding to obtain further information from a utility through the discovery process or otherwise;
(2) The submission of information under this rule shall not constitute a waiver of any objection by the commission or any party including the electing utility, to the admission of the information into the record of any proceeding;
(3) This rule shall not limit a utility's right in a proceeding to supplement the information it files pursuant to under this rule or to seek the admission of supplemental information into the record of a proceeding, as the utility deems appropriate; or
(4) This rule shall not be construed to require the production or disclosure of any information that is subject to or protected by any applicable privilege or to require the disclosure of any information that is found by the commission to be confidential under section 3 of this rule.
(b) (c) This rule shall apply at the option of the electing utility. A utility exercising its option to file its case in accordance with this rule shall file a notice of its intent to do so at the time it files its application petition for a general rate change.
(d) This rule and its expedited time frame are intended to apply to general rate case filings that comply with this rule.
(c) A commission finding that (e) After review of the
information documents filed
or made available by
a the electing utility
meets all of the requirements of this rule that are not waived shall constitute a finding as follows: in its petition for a general rate case, the commission may enter a finding that the:
(1) That the test year proposed by the utility in its application for a general rate case is reasonably representative of the electing utility's ongoing operations;
(2) That the cutoff dates reflected in the information filed by an the electing utility shall be the cutoff dates used in a proceeding hereunder;
(3) That the accounting methodology reflected in the information filed proposed by an the electing utility conforms with the guidelines set forth in section 5 of this rule; and
(4) That, commencing as of the date an electing utility's case-in-chief is deemed in compliance under section 4(d) of this rule, ten (10) months is a reasonable amount of time to complete a proceeding. Accordingly, the presiding administrative law judge and commissioner, if any, assigned to a case will establish procedural dates, including specific dates for the filing of testimony, the holding of a settlement conference, the holding of hearings, the filing of posthearing briefs and proposed orders, and the issuance of a commission order, which will allow completion of the case within ten (10) months from the filing of the electing utility's case-in-chief. In addition, the prehearing conference order should provide that any petition for reconsideration or rehearing not granted within sixty (60) days of filing will be deemed denied. The commission will allow the presiding administrative law judge and commissioner, upon consideration of the comments and circumstances of the parties, the discretion to equitably divide the time allotted to the various procedural steps based upon all relevant factors. However, in general, approximately three (3) months should be allotted for the preparation and issuance of an order after the submission of the final proposed order. The presiding administrative law judge and presiding commissioner, if any, are authorized to extend the procedural schedule to twelve (12) months for good cause shown.
Extensions beyond twelve (12) months will only be allowed in extraordinary circumstances upon the concurrence of a majority of the commissioners.
(d) A commission finding that the information (4) case-in-chief filed or made available by a the electing utility meets the requirements of this rule that are to the extent not otherwise waived. shall be However, such a finding as to by the completeness of the information for purposes of this rule, and commission is not a finding as to the accuracy or reasonableness of such the information.
(e) This rule shall be available for use by all utilities subject to the jurisdiction of the commission; provided, however, that (f) The commission may waive the requirements of this rule, in whole or in part, under section 4(e) section 4(b) of this rule.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-2; filed Oct 28, 1998, 3:38 p.m.: 22 IR 720; errata filed Nov 22, 1999, 3:32 p.m.: 23 IR 812; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-2.1 Time frame and procedural schedule
Authority:
IC 8-1-1-3
Sec. 2.1. (a) Ten (10) months is the expected amount of time to complete a proceeding under this rule.
(b) The ten (10) month time frame commences as of the date an electing utility has filed its:
(1) petition;
(2) case-in-chief; and
(3) working papers;
with the commission.
(c) At the prehearing conference, the presiding officer shall:
(1) address any issues regarding the completeness of the electing utility's filing; and
(2) establish procedural dates that will allow completion of the case within ten (10) months in accordance with this rule, including specific dates for the:
(A) filing of testimony;
(B) plant cutoff date for updating the rate base to include the cost of all plant, which date shall be not later than the date the presiding officer sets for the hearing on the utility's case-in-chief;
(C) major project cutoff date for updating the rate base to include the cost of a major project, consistent with section 5 of this rule;
(D) holding of hearings;
(E) filing of posthearing briefs;
(F) filing of proposed orders; and
(G) filing of exceptions to any proposed order.
(d) In the event the parties agree that the proceeding should not be bifurcated, then the general rate base cutoff date shall be determined by the presiding officer, with due consideration of the input of the parties.
(e) The presiding officer may do the following:
(1) Equitably divide the time allotted to the various procedural steps based upon all relevant factors. However, in general, approximately three (3) months should be allotted for the preparation and issuance of an order after the submission of any exceptions to a proposed order.
(2) Extend the procedural schedule to twelve (12) months for good cause. Extensions beyond twelve (12) months shall only be allowed upon the concurrence of a majority of the commissioners.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-2.1)
170 IAC 1-5-3 Confidential or privileged information
Authority:
IC 8-1-1-3
Sec. 3. (a) If an electing utility believes that any information covered by this rule is confidential in accordance with
IC 8-1-2-29 and
IC 5-14-3, the
utility shall apply for a finding by the commission, on or before the date such information is required to be filed hereunder, that such information is confidential. Written applications for a confidentiality finding must be served on all parties of record. At any time after ten (10) days, or earlier with the consent of the parties or as ordered by the presiding officer, following an application by the electing utility
may request confidential treatment under
this subsection, the
commission may take any one (1) or more provisions of
the following actions: 170 IAC 1-1.1-4.
(1) Find information to be confidential, in whole or in part.
(2) Find information not to be confidential, in whole or in part.
(3) Issue a protective order or docket entry covering information.
(4) Find that information found not to be confidential should be filed in accordance with this rule unless the utility chooses to cease being an electing utility.
(5) Find whether the case can be completed in accordance with this rule despite the amount or type of information found to be confidential.
(b) The application required by subsection (a) shall be accompanied by the sworn statement or testimony of a utility representative that describes the nature of the confidential information, the reasons why the information should be treated as confidential information pursuant to IC 8-1-2-29 and IC 5-14-3, and the efforts the utility has made to maintain the confidentiality of the information.
(c) At the request of the presiding officer or any party, an in camera inspection shall be conducted for the purpose of hearing argument on the confidentiality of information submitted pursuant to this rule. If an in camera inspection is conducted under this section, the information for which confidential treatment is requested shall be made available during the in camera inspection on a provisional basis for the limited purpose of determining its confidentiality. An in camera inspection conducted under this section may, at the discretion of the presiding officer, be publicly noticed pursuant to IC 8-1-1-8.
(d) Subject to the rules of evidence and discovery, information determined not to be confidential shall be deemed automatically withdrawn.
(e) Information filed with the commission prior to a finding by the commission that such information is confidential shall be available to the public pursuant to IC 8-1-2-29.
(f) The failure by a utility to file information required by this rule while an application under subsection (a) is awaiting action by the commission shall not be a basis for a finding by the commission that the utility is not in compliance with the terms of this rule.
(b) To the extent a confidentiality agreement that would cover documents provided as part of a proceeding under this rule is not already in place:
(1) the electing utility shall:
(A) proffer to; or
(B) request from;
the OUCC a proposed confidentiality agreement; and
(2) parties to a proceeding under this rule shall work together with reasonable speed to negotiate an acceptable confidentiality agreement in order to avoid delay in producing documents on which a claim of confidentiality is made.
(c) An acceptable confidentiality agreement under subsection (b) shall include procedures for the following:
(1) Requesting a determination from the commission that a document shall be considered confidential.
(2) Maintaining the confidentiality of the documents before a determination regarding confidentiality has been made by the commission.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-3; filed Oct 28, 1998, 3:38 p.m.: 22 IR 721; errata filed Nov 22, 1999, 3:32 p.m.: 23 IR 812; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-4 Filing and responses; waiver
Authority:
IC 8-1-1-3
Sec. 4. (a) The information required to be filed or made available by an electing utility shall be filed or made available on the date set forth in this rule unless such requirement is modified or waived in accordance with this rule.
(b) On the date information is filed or made available under this rule by an electing utility, such information shall be available for review by the commission's director of utilities, or his or her designees. Within thirty (30) days thereafter, the director of utilities may file with the commission and serve on all parties to a proceeding a notice that such information does not comply with the requirements of this rule. The notice shall state that the filing is a deficient filing and shall state the requirements necessary to cure any and all deficiencies. The commission shall determine if the alleged deficiencies are deficiencies under this rule and shall order the utility to cure such deficiencies within ten (10) business days of any such determination.
(c) (a) Within twenty (20)
calendar days of the date
any information is filed or made available by an electing utility
has filed its:
(1) petition;
(2) case-in-chief; and
(3) working papers;
with the commission, any party to a the proceeding may file with the commission a notice that such the information does not comply with this rule, The notice shall identify identifying the alleged deficiencies defect or defects and the requirements necessary to cure the alleged deficiencies. defect or defects. The commission notice shall determine if the alleged deficiencies are deficiencies under this rule and shall order be served upon the electing utility to cure such deficiencies within ten (10) business days of any such determination. and all other parties to the proceeding.
(d) If a notice of deficiency is not filed pursuant to subsection (b) or (c), the filing of the information shall be deemed in compliance with this rule.
(e) At any time prior to the date information is required to be filed or made available hereunder, (b) With the filing of its case-in-chief, an electing utility may request a waiver of compliance with any or all of the requirements of this rule by:
(1) submitting a written request for a waiver; to the director of utilities and
(2) serving a copy of such the request on all parties to a proceeding.
The presiding officer shall rule on a waiver request within thirty (30) days of its filing.
(f) (c) The granting of a waiver hereunder shall not preclude a party from seeking the information that was the subject of the waiver through discovery or otherwise.
(d) If the utility updates its rate base at any time after its initial filing, the applicable working papers shall be updated accordingly and filed within two (2) business days of the update.
(e) All filings by the electing utility to the commission under this rule shall also be served on the following:
(1) The OUCC on the same day as filed.
(2) Any other party to the proceeding that has filed a written request for the information:
(A) on the same day as filed; or
(B) within five (5) business days of the filing of the written request.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-4; filed Oct 28, 1998, 3:38 p.m.: 22 IR 721; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-5 Accounting methodology and guidelines for cutoffs
Authority:
IC 8-1-1-3
Sec. 5. All information filed by an electing utility under this rule shall conform to the following accounting guidelines:
(1) The test year shall be historical for a twelve (12) month period, the end of which may not be more than one hundred eighty (180) days prior to the filing of the utility's case-in-chief.
(2) Accounting data shall be adjusted for changes that:
(A)
are fixed, known, and measurable for ratemaking purposes,
are:
(i) fixed;
(ii) known; and
(iii) measurable; and
(B) will occur within twelve (12) months following the end of the test year.
(3) The general rate base cutoff shall reflect the following: (A) Used and useful property at be the end of the test year for used and useful property.
(B) (4) The cost of plant, to the extent not offset by:
(A) growth in the depreciation reserve;
(B) net contributions in aid of construction;
(C) net customer advances; or
(D) any combination of clauses (A) through (C);
may be updated to the plant cutoff date of the hearing on the utility's case-in-chief. set by the presiding officer under section 2.1(c)(2)(B) of this rule.
(4) (5) The cutoff for a major project shall be based on the latest information available at the time of the
final hearing in a proceeding hereunder, major project cutoff date set by the presiding officer under section 2.1(c)(2)(C) of this rule so long as the following tests are met:
(A) The major project is specifically identified in the utility's application petition for a general rate change and should include a complete description of the project. A complete description of the project includes, among other things, the scope and location of the project.
(B) An estimate of the investment to be made by the utility in a major project is included in the utility's case-in-chief.
(C) The amount included in the utility's rate base with respect to the major project does not exceed the amount of the estimate referred to in clause (B).
(D) A monthly investment update is filed with the commission and served on all parties following the filing of a utility's case-in-chief.
(E) The major project is declared by the electing utility to be used and useful ten (10) business days before the final hearing.
(5) (6) A utility's capital structure may be based on the latest information available at the time of the final hearing.
Authority:
IC 8-1-1-3
Sec. 6. An electing utility shall submit the following basic accounting exhibits with its case-in-chief under the sponsorship of
a witness one (1) or
more witnesses submitting prefiled, direct testimony in support of the utility's request for relief:
(1) Comparative
balance sheets and financial statements including the following:
(A) Balance sheets as of the last day of the following:
(i) The test year.
(ii) The twelve (12) month period immediately prior to the test year.
(B) A statement of cash flow for the test year.
(C) Income statements for
the following:
(i) The test year. and for
(ii) The twelve (12) month period preceding immediately prior to the test year.
(2) Revenue requirement calculation.
(3) Net operating income on a jurisdictional basis
as:
(A) as set forth in the utility's operating financial statements; and
(B) as adjusted for ratemaking purposes under present and proposed rates.
(4) Jurisdictional rate base
as:
(A) as set forth in the utility's operating financial statements; and
(B) as adjusted for ratemaking purposes.
(5) Capital structure and cost of capital, including supporting schedules.
(6) Gross revenue conversion factor.
(7) Effective income tax rate for the utility.
170 IAC 1-5-7 Working papers and data; general information
Authority:
IC 8-1-1-3
Sec. 7.
On or before the post-filing date, An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) A map of the utility's service territory.
(2) (1) A chart of accounts that:
(A) details the types of charges incurred in specific subaccounts; as well as a description of and
(B) describes the utility's
format for:
(i) account numbering; and
(ii) coding. format.
(3) (2) A listing of standard monthly journal entries.
(4) (3) All annual
reports to shareowners and quarterly reports to shareowners of the utility and its
ultimate parent corporation, if any,
or, if public information, the web address where the reports can be viewed for the:
(A) last two (2) years; and the
(B) year subsequent to the test year, as available.
(5) (4) All reports of the utility and its parent corporation, if any, filed with the Securities and Exchange Commission for the:
(A) test year; the
(B) year preceding the test year; and the
(C) year following the test year;
as available. In lieu of hard copies, the utility can provide a listing of the reports filed, entity filing name, and web address where the reports can be viewed.
(6) (5) The results of the latest FERC staff audit of the utility for compliance with the FERC Uniform System of Accounts.
(7) A current listing of the directors and officers of the utility.
(8) (6) The utility's operating and construction budgets for
the following:
(A) The test year. and
(B) The year following the test year. and, as available,
(7) A statement of the budgeting assumptions included in those the budgets listed in subdivision (6).
(9) A detailed description of the utility's financial budgeting and forecasting processes.
(10) (8) For an electric utility, the current system interconnection or operating agreement governing system power operations between affiliates.
170 IAC 1-5-8 Working papers and data; revenues, expenses, and taxes
Authority:
IC 8-1-1-3
Sec. 8.
On or before the post-filing date, (a) An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1)
Operating income statements as follows:
(A) An unadjusted income statement for the test year.
(B) An income statement for the test year under the utility's present rates after adjustments for ratemaking purposes to
the following:
(i) Revenues.
(ii) Expenses. and
(iii) Taxes.
(C) An income statement for the test year under the rates being proposed by the electing utility
with expenses
reflected in this income statement shall be summarized by the following classifications:
(i) Operating expenses. by category.
(ii) Depreciation.
(iii) Taxes other than income.
(iv) Operating income before income taxes.
(v) Current federal income taxes.
(vi) Current state income taxes.
(vii) Deferred federal income taxes.
(viii) Deferred state income taxes.
(viii) (ix) Income tax credits.
(ix) (x) Other charges and credits.
(x) (xi) Net utility operating income.
(2) All supporting working papers for each pro forma adjustment listed in subdivision (1), including the following:
(A) Actual test year expenses.
(B) Adjustments to test year levels. expenses.
(C) A description of adjustment methodology.
(3) The following actual and budgeted information by month for the test year that shall be identified by rate class, if available, or if not available by rate class, the utility shall provide the data in as much detail as reasonably possible:
(A) Operating revenues.
(B) Sales or deliveries.
(C) Number of customers.
(D) Other operating revenues by classification.
(4) (3) The following monthly
sales for the test period and monthly unbilled revenues information by rate class for the test
period if recorded. year:
(A) Operating revenues.
(B) Sales or deliveries.
(C) Number of customers.
(D) Unbilled revenues.
(5) (4) Pro forma:
(A) revenues;
(B) sales or deliveries; and
(C) numbers of customers;
for the test year, including detailed calculations supporting adjustments, if any, for annualization.
(6) (5) Pro forma revenue adjustment and support therefor relating to the proposed change in any
of nonrecurring charge, including, but not limited to, the following,
charges: as applicable:
(A) Insufficient funds check charge.
(B) Reconnect charge.
(C) Disconnect charge.
(D) Records charge.
(E) Collection charge.
(F) Meter testing charge.
(G) Meter reading charge.
(H) Meter tampering charge.
(I) Connection or tap fee.
(7) (6) The utility's written policies and procedures, if any, related to the write-off of any customer accounts as uncollectible.
(8) (7) The utility's actual operating expenses by function, account and subaccount for the test year.
(9) (8) A schedule detailing purchases for resale of gas, electricity, and water, including costs and volumes purchased during the test year.
(10) For an electric utility, the following monthly information for the test period, with respect to each electric generating unit that the utility owns or co-owns:
(A) Quantities in tons, barrels, or cubic feet of coal, oil, and gas burned.
(B) The total heat content in British thermal units for each fuel as burned.
(C) The total cost of each fuel burned in dollars.
(D) The total cost in cents per million British thermal units of each fuel as consumed.
(E) MWH net output.
(F) Capacity factor.
(11) For an electric utility, the following information related to electric generating facility maintenance by station:
(A) Actual and budgeted maintenance costs during the test year.
(B) Budgeted maintenance schedule for test year and any future period or periods as available.
(12) For an electric utility, all costs of net purchased and exchanged power by supplier for the test year.
(13) (9) The number of employees by month for the test year categorized by
a the following:
(A) Bargaining unit. and
(B) Exempt and status.
(C) Nonexempt employees. status.
(14) If the utility has one (1) or more collective bargaining units, the collective bargaining unit agreements in effect during the test year, and any such agreements that will be in effect during the twelve (12) months following the test year.
(15) (10) Actual payroll dollars charged
for the test year to
accounts for the following:
(A) Construction.
(B) Operation. and
(C) Maintenance. expense and
(D) Other. accounts for the test year.
(16) (11) The following information
regarding by employee category identified in subdivision (9) for each payroll
increases by employee category increase during the test year:
(A) The date.
(B) The percentage increase. and annual amount of each payroll increase.
(B) The dates and annual amounts of merit increases granted during the test year.
(17) (12) A description of the utility's other employee compensation programs paid or granted by the utility during the test year, including, but not limited to, the following:
(A) Performance bonuses.
(B) Incentive payments.
(C) Stock and stock options.
(18) A list of the categories of (13) Regarding benefits provided by the utility to employees,
the following:
(A) A list of the categories of benefits.
(B) The associated cost of each such category. and
(C) The amount charged to operation and maintenance expense during the test year with respect to each category.
(D) The amount of payroll benefits capitalized during the test year with respect to each category.
(19) (14) The utility's pension expense for the test year and an identification of any unfunded amounts.
(20) (15) The latest pension actuarial study used by the utility for determining pension accrual.
(21) (16) The latest actuarial study for other postretirement employee benefits.
(22) (17) Schedules of net charges by
category or account for each affiliated
companies company for services rendered during the test year, including the following:
(A) An explanation of the nature of services provided.
(B) An explanation of the basis of or pricing methodology for charges.
(C) If
the charges are allocated,
an for each type of charge allocated, the following:
(i) A detailed explanation of the allocation methodology used.
(ii) The specific allocation factors used.
(23) (18) The monthly amounts of injury and damage
for the test year, including the following:
(A) Claims paid by the utility. and
(B) Expense accrued.
for the test year.
(24) (19) If applicable, test
period year data applicable to each DSM program of the utility, including
the following:
(A) A description of the DSM program conducted.
(B) Costs related to the program. and
(C) The accounting treatment of such the costs. The information required by this subdivision shall be provided with
(D) Reference to the applicable commission orders, if any, regarding each DSM program.
(25) (20) Expenditures
associated with outside, consulting, or legal services incurred by the utility during the test year and amounting to more than ten thousand dollars ($10,000) to an individual payee
for:
(A) outside services;
(B) consulting services; or
(C) legal services.
(26) (21) A schedule of all charitable and civic contributions by the utility recorded to utility operations during the test year.
(27) (22) A schedule of all research and development expenditures incurred by the utility during the test period. year and recorded to utility operations.
(28) (23) A schedule of:
(A) trade;
(B) social; and
(C) service;
organization memberships paid during the test year and charged recorded to utility operations.
(29) (24) A schedule of estimated rate case expenses, including supporting detail, for
the following:
(A) Outside services to be rendered. and
(B) The expected costs of those services.
(30) A schedule of expenditures by the utility for (25) Regarding advertising
recorded to utility operations during the test year,
and the following:
(A) A schedule of expenditures by the utility.
(B) Representative samples of
such the advertising by major media category, including, but not limited to,
the following:
(i) Television.
(ii) Radio. and
(iii) Newspaper.
(26) The schedule required by
this subdivision
(25) shall identify expenditures by the following subject matters:
(A) Public health and safety.
(B) Conservation. of energy.
(C) An explanation of rates, billing practices, and other administrative matters.
(D) Other advertising programs.
(31) (27) A description of the utility's methodology for capitalizing construction overheads during the test year.
(32) (28) A description of the allocation methodology of multiutility common expenses that are allocated to the utility in the rate proceeding covered by this rule.
(33) (29) A schedule of amounts of taxes other than income taxes
paid recorded to utility operations during the test
period year for the following categories:
(A) Social Security.
(B) Unemployment.
(C) Public utility fee.
(D) Property.
(E) Utility receipts tax.
(E) (F) Other revenue related.
(F) (G) Other.
(34) (30) A schedule of book value and taxing authority assessed value for the determination of real and personal property tax for
the following:
(A) The test year. and,
(B) To the extent reasonably available, the latest information subsequent to the test year.
(35) (31) A schedule of
the following:
(A) Deferred tax balances of the utility at the:
(i) beginning; and
(ii) end;
of the test year. respectively, and
(B) Net provisions and paybacks during the test year.
(36) (32) Computations showing the deferred income taxes of the utility derived by using accelerated tax depreciation
with separate computations
shall be provided for
the following:
(A) State and income taxes.
(B) Federal income taxes.
(37) (33) A reconciliation of any difference between:
(A) the deferred tax balance, as shown as:
(i) a reduction to rate base; or as
(ii) cost-free capital; and
(B) the deferred tax balance of the utility as shown on the balance sheet.
(38) (34) A schedule showing the breakdown of accumulated investment tax credits of the utility, including a description of the methodology used to write off the unamortized balances.
(39) (35) Supporting working papers for the development of the state and federal composite income tax rate used by the utility during the test year to defer income tax expense.
(40) (36) The calculation of the interest deduction used by the utility to compute income taxes.
(b) In addition to the information listed in subsection (a), an electric utility shall submit the following information related to electric generating facility maintenance by station:
(1) Actual and budgeted maintenance costs during the test year.
(2) Budgeted maintenance schedule for the test year and any future period or periods as available.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-8; filed Oct 28, 1998, 3:38 p.m.: 22 IR 723; errata filed Nov 22, 1999, 3:32 p.m.: 23 IR 812; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-9 Working papers and data; rate base and general information
Authority:
IC 8-1-1-3
Sec. 9.
On or before the cutoff date, (a) An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) A summary schedule showing the utility's proposed rate base.
Such The schedule shall show
the following:
(A) Beginning balances per the utility's books. and
(B) Proposed pro forma adjustments.
(2) The following data for each regulatory asset for which the utility seeks rate base treatment:
(A) Beginning test period year balance.
(B) End of test period year balance.
(C) Proposed balance to be included in rates.
(D) Where applicable, any:
(i) commission order;
(ii) accounting pronouncement; or
(iii) other authorization;
establishing such the asset.
(3) A schedule showing the fair value of the utility's proposed rate base.
(4) (b) If a utility proposes to add investment in qualified pollution control properties as defined in
IC 8-1-2-6.6 to the value of its electric property,
the utility shall also submit a filing that complies with the requirements of
170 IAC 4-6.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-9; filed Oct 28, 1998, 3:38 p.m.: 22 IR 725; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-10 Working papers and data; rate base, utility plant in service
Authority:
IC 8-1-1-3
Sec. 10.
On or before the cutoff date, An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) Any valuation study performed by or for the utility, including all assumptions used in that study, that serves as the basis for the utility's proposed fair value of its utility plant in service, and including any supporting working papers.
(2) A schedule showing end of test
period year balances for
the following:
(A) A utility's plant in service. and
(B) Accumulated depreciation on a functional basis. by subaccount.
(3) The utility's construction budget for
the following:
(A) The test period and, year.
(B) As available, for the period that ends with the plant cutoff date used to determine the plant in service rate base proposed by the utility.
(4) An annual summary
by subaccount of actual net plant additions to a utility's plant in service used to determine the plant in service rate base proposed by the utility, showing:
(A) plant additions;
(B) retirements; and
(C) other changes to plant in service;
for the test year and, as available, for each month the period subsequent to the test year ending with the plant cutoff date.
(5) A schedule of pro forma utility additions subsequent to the test year ending with the proposed
plant cutoff date, including the following:
(A) Estimated in service date or dates.
(B) Actual costs per books at the end of the test period. year.
(C) Estimated cost of utility additions based on costs as defined by the applicable NARUC or FERC Uniform System of Accounts.
(D) Pro forma retirements, cost to retire, or net proceeds received from the sale of property related to the proposed addition to rate base.
(E) For those utility additions that have received CWIP ratemaking treatment, the utility shall show AFUDC as a separate component of cost and include an explanation of the allocation of AFUDC to retail customers receiving service from the utility in Indiana.
(6) A narrative statement of the criteria used to select projects included in the utility's proposed pro forma additions to the end of test period year plant in service.
(7) A narrative statement of all policies and procedures used to account for the capitalization of AFUDC.
(8) A copy listing of cause numbers of all commission orders that precertify projects added to the end of test period year plant in service.
170 IAC 1-5-11 Working papers and data; rate base, depreciation
Authority:
IC 8-1-1-3
Sec. 11.
On or before the post-filing date, (a) An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) If applicable, the cause number and order date of the commission's rate order authorizing the utility's current depreciation rates and the cause number approving the last depreciation study.
(2) A description of each adjustment proposed by the utility to its book accumulated provision for depreciation and depreciation expense for the test year.
(3) (b) If a utility is seeking a change in its depreciation accrual rates,
other than a change under 170 IAC 7-5-1, concerning depreciation rates for small local exchange carriers, the utility shall also submit the following information:
(A) (1) The depreciation study performed by or for the utility that serves as the basis for the requested change in depreciation accrual rates.
(B) (2) A copy of any the dismantlement or demolition studies performed by or for the utility. the results of which are incorporated into the requested change in depreciation accrual rates.
(C) (3) Supporting working papers for the documents required in clauses (A) and (B). subdivisions (1) and (2).
(Indiana Utility Regulatory Commission; 170 IAC 1-5-11; filed Oct 28, 1998, 3:38 p.m.: 22 IR 725; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-12 Working papers and data; rate base, working capital
Authority:
IC 8-1-1-3
Sec. 12.
On or before the post-filing date, An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) If the utility is requesting an allowance for cash working capital, a copy of all studies, including working papers, supporting the request.
(2) For an electric utility,
the following:
(A) A complete description of the fuel inventory level policies used for planning purposes by the utility. and
(B) Copies of all analyses completed within the last three (3) years by or for the utility establishing the optimal fuel inventory level for each generating station.
(3) For an electric utility, (C) When determining the pro forma fuel inventory level to be used for regulatory purposes based on a daily burn concept,
the utility shall provide the following information for each generating unit
and/or or plant,
or both, the following:
(A) (i) Tons of fuel consumed for the test period year or applicable adjusted period.
(B) (ii) The daily burn in:
(AA) tons; or
(BB) gallons; or
(CC) cubic feet.
(C) (iii) The pro forma optimal number of days supply required for each plant or unit.
(D) (iv) The pro forma inventory of tons or gallons burned by the generating unit or plant.
(E) (v) The fuel cost per ton or gallon.
(F) (vi) The per books fuel inventory.
(4) For an electric utility, (D) Any request for an adjustment to the utility's proposed fuel inventory level intended to meet normal operations must include
the following:
(i) A narrative discussion of the factors considered in determining that an adjustment is warranted. as well as
(ii) A detailed exhibit demonstrating the development of the proposed adjustment.
(5) (3) For a gas utility,
the following:
(A) The leased and contract storage balances at the beginning of the first month and end of each month of the test period year with the average of thirteen (13) monthly balances shown separately. If any of the balances are not representative of the utility's current operating plan, the utility shall include an explanation of the relevant circumstances.
(6) For a gas utility, (B) A complete description of the gas storage and supply policies used for planning purposes by the utility. and
(C) Copies of all analyses conducted by or for the utility establishing the optimal storage and supply level for the utility's system.
(7) (4) The materials and supplies balances at the beginning of the first month and end of each month of the test period year with the average of thirteen (13) monthly balances shown separately. If any of the balances are not representative of the utility's current operating plan, the utility shall include an explanation of the relevant circumstances.
170 IAC 1-5-13 Working papers and data; rate of return and capital structure
Authority:
IC 8-1-1-3
Sec. 13.
On or before the post-filing date, (a) An electing utility shall submit
to the commission staff, the office of utility consumer counselor, and any other party to the proceeding that has filed a written request for such information, the following information:
(1) Capitalization and capitalization ratios at the end of the test year and at the end of the year beginning twelve (12) months prior to the test year, respectively, including the following information:
(A) Year-end interest coverage ratios for the test year and the year ended twelve (12) months prior to the end of the test year as well as and a pro forma interest coverage under the rates proposed by the utility.
(B) Year-end preferred stock dividend coverage ratios for the test year and the year ended twelve (12) months prior to the end of the test year.
(C) The supporting calculations for the information described in clauses (A) and (B).
(2) The following financial data relating to the utility as of the end of the most recent five (5) fiscal years:
(A) Annual price earnings ratio.
(B) Earnings-book value ratio on a per share basis, using average book value.
(C) Annual dividend yield.
(D) Annual earnings per share in dollars.
(E) Annual dividends per share in dollars.
(F) A book value per share yearly.
(G) Average annual market price per share calculated using monthly high and low share market prices.
(H) Pretax interest coverage ratio.
(I) Posttax interest coverage ratio.
(J) Market price-book value ratio average.
(K) The supporting calculations for the information described in this subdivision.
(3) The utility's capital structure and weighted average cost of capital as of the test year end,
and as of the latest date reasonably available prior to the post-filing date, respectively, including the following information:
(A) Common equity.
(B) Long-term debt, including that maturing within one (1) year.
(C) Other debt, with specificity.
(D) Preferred or preference stock.
(E) Customer deposits.
(F) Sources of cost free capital, including
the following:
(i) Pre-1971 investment tax credit.
(ii) Deferred taxes for ratemaking. and
(iii) FAS 106 nonexternally funded liabilities.
(G) Post-1970 investment tax credit and other components as appropriate.
(4)
If an electing utility is asking for special treatment because of the provisions
if any, of
any of the following documents of the
utility's and utility or its parent
company's company, or both, then copies of the document or documents with the affecting provision or provisions must also be submitted:
(A) Articles of incorporation or a similar document. and
(B) Indentures. or
(C) Other loan documents.
(D) Other documents that describe
the following:
(i) Coverage requirements.
(ii) Limits on proportions of types of capital outstanding. and
(iii) Restrictions on dividend payouts.
(5) The latest prospectus for the utility or its parent company, or both.
(6) (5) A schedule of preferred stock outstanding by series, including current maturities, for the end of the test year and the latest date reasonably available.
(7) (6) A schedule of long-term debt outstanding by series, including current maturities, for the end of the test year and the latest date reasonably available.
(8) (7) A schedule of the following information for the utility as of the end of the test year and as of the latest date reasonably available prior to the postfiling date, respectively:
(A) A computation of the embedded cost rate of long-term debt, including the amount maturing within twelve (12) months.
(B) Computation of the embedded cost rates of other debt.
(C) Computation of the embedded cost rates of preferred or preference stock, including amounts maturing within twelve (12) months.
(9) (8) Schedules required by this subdivision should contain all relevant information, including, but not limited to, the following:
(A) The date of issue.
(B) The maturity date.
(C) The dollar amount.
(D) The coupon or dividend rate.
(E) The net proceeds, including discounts and premiums.
(F) The annual interest or dividend paid and balance of principal.
(G) The calculations in this section.
(10) (9) The following information regarding the utility's plans regarding debt, common stock, and preferred stock during the year following the test year end:
(A) Issues that are to be retired or refinanced.
(B)
If a refinancing is planned, the following:
(i) The manner in which the planned refinancing will proceed, that is, sinking fund or refinancing.
(C) (ii) The source of the capital to be used to implement the planned refinancing.
(D) (iii) The estimated cost rate of new capital, the estimated overall cost of each refinancing operation, and any cost-benefit analyses performed relating to each planned refinancing.
(11) (10) All
relevant reports in the utility's possession by rating agencies on the utility and its parent company for the test year, and thereafter up to the
post-filing date
of the final hearing. The reports should be based on the debt:
(A) used in calculations in the electing utility's filing; or
(B) of a parent company or proxy company whose debt is rated.
(12) (11) Average monthly balance of short-term debt for the test year and the most recently available twelve (12) month period and the utility's current cost for short-term debt.
(b) With respect to the electing utility's proposed cost of equity and proposed fair rate of return, an electing utility shall provide the following:
(1) If an electing utility used a risk premium model to establish its cost of equity, all documents the electing utility used to estimate the risk premium.
(2) If an electing utility used any other cost of equity models, all documents used by the utility to derive its estimate.
(3) If an electing utility used a comparable earnings model and the proxy group contains more than twenty (20) companies, an electronic copy of the analysis used by the utility in whatever format or program was used to derive the electing utility's estimated cost of equity or fair rate of return.
(c) To the extent the electing utility is prohibited from producing copies of the documentation listed in subsection (b)(1) through (b)(3) due to the documentation being licensed or proprietary material by agreement or by copyright law, the electing utility shall provide the following:
(1) A list of which documents may not be copied and why.
(2) Access to the documents listed in subdivision (1) to all parties to the proceeding under this rule at a mutually convenient time and place.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-13; filed Oct 28, 1998, 3:38 p.m.: 22 IR 726; errata filed Nov 22, 1999, 3:32 p.m.: 23 IR 812; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
170 IAC 1-5-14 Working papers and data; other
Authority:
IC 8-1-1-3
Sec. 14.
On or before the post-filing date, An electing utility shall provide reasonable access to the following information upon the written request of the
director of utilities presiding officer, OUCC, or any party to the proceeding:
(1) Monthly unaudited financial reports for the utility for the test year and for each month subsequent to the test year through the date of the final hearing in the proceeding.
(2) The utility's latest FERC or FCC rate case filing, if any, and latest rate order issued by the FERC, or FCC, if any, regarding wholesale or interstate rate changes.
(3) The minutes of the board of director's meetings held during the test year and for the year following the test year.
(4) Internal audit reports prepared during the test year.
(5) Contracts regarding
the following:
(A) Gas supply.
(B) Gas storage.
(C) Purchased electric, water, and coal. and
(D) Transportation and rail contracts.
(6) Accounting information documenting monthly charges applicable to the proposed post-test year utility additions and related retirement projects.
(7) Calculations and source documents for any affiliated transaction, including, but not limited to, the following:
(A) Parent company allocations.
(B) Direct charges.
170 IAC 1-5-15 Working papers; cost of service study; determination of revenue requirements by customer class
Authority:
IC 8-1-1-3
Sec. 15. (a) On or before the post-filing date, An electing utility shall submit a jurisdictional separation study, if applicable, and a class cost of service study to the commission, staff. OUCC, and any party to the proceeding.
(b) For an electing utility,
that is an electric utility or a gas utility, the class cost of service study shall include the following information:
(1) Allocation of rate base by rate class.
(2) Pro forma sales revenues at present rates by rate class.
(3) Allocation of other operating revenues (or miscellaneous revenue or other income) by rate class.
(4) Allocation of pro forma operating expenses by:
(A) category or function; and
(B) rate class.
(5) Rate of return by rate class at present rates.
(6) Revenues at equal rates of return by rate class at present rates.
(7) Subsidy or excess at present rates by rate class.
(8) Revenues at equal rates of return by rate class at proposed rates.
(9) The proposed dollar and percent subsidy or excess reduction by rate class.
(10) Revenues at proposed rates by rate class.
(c) For an electing utility that is a water utility, the class cost of service study shall follow the guidelines established in the American Water Works Association Manual, Fourth Fifth Edition.
(d) The requirements of this section shall not apply to:
(1) an electing utility that is described in
IC 8-1-2-61.5; or
to
(2) any electing utility that is seeking an equal percentage change to its basic rates and charges for all customer classes.
(e) Information submitted
pursuant to under this section shall:
(1) be provided to the commission staff on three and one-half (3.5) inch or five and one-fourth (5.25) inch diskettes, electronically or through any other medium agreed to by the commission; The information shall and
(2) include all formulas used in completing the jurisdictional study and the class cost of service study, which shall be confidential and protected from disclosure to the public
pursuant to under IC 5-14-3-4 and
IC 8-1-2-29.
(f) If impossible or impractical for an electing utility to provide information in the form described in subsection (e), the electing utility shall make available to the commission staff during normal business hours, on the electing utility's premises, a computer and all software used to create and store the information.
(g) The electing utility shall provide the information submitted to the commission staff pursuant to under this section, in the form described in subsection (e), to any other party to the proceeding if the other party and the electing utility enter into a mutually acceptable confidentiality agreement covering the information.
(h) If any party receiving information
pursuant to under subsection (g) wishes to propose data and methodologies for use in the electing utility's jurisdictional separation study or cost of service study, the party shall provide
such the information to
the following:
(1) The commission staff in the form described in subsection (e). The party shall also provide the information to
(2) Any other party to the proceeding that enters into a mutually acceptable confidentiality agreement covering the information among
the following:
(A) The party.
(B) The electing utility. and
(C) The recipient of the information.
170 IAC 1-5-16 Working papers; written testimony; rate design and tariff filing requirements
Authority:
IC 8-1-1-3
Sec. 16. (a)
On or before the post-filing date, An electing utility that proposes to modify the underlying structure of its rates shall submit
the following to the commission, OUCC, and any party to the proceeding:
(1) Direct written testimony:
(A) detailing the reason for; the proposed rate structure, and
(B) indicating the methods used in developing;
the proposed rate structure.
(b) On or before the post-filing date, an electing utility shall submit to the commission staff (2) The billing determinants and derived rates used to produce the requested revenue requirement for each proposed charge in a rate schedule or rate group.
(c) On or before the post-filing date, an electing utility proposing to change its nonrecurring charges shall submit direct testimony detailing and justifying the proposed charges. The electing utility shall supply (3) Cost justification for the establishment of or a change to
the following any nonrecurring charges,
including, but not limited to, the following:
(1) (A) Insufficient funds check charge.
(2) (B) Reconnect charge.
(3) (C) Disconnect charge.
(4) (D) Recharge (establish or change account).
(5) (E) Collection charge.
(6) (F) Testing charge.
(7) (G) Meter reading charge.
(8) (H) Meter tampering charge.
(9) (I) Connection or tap fee.
(d) On or before the post-filing date, (b) An electing utility that proposes to modify its:
(1) terms and conditions of service;
(2) rules; and
(3) regulations;
(4) rates; and
(5) charges; or
(6) other tariff provisions;
shall submit a complete set of tariffs with to the commission. staff, with additions
(c) Additions to the prior tariff
shall be shown:
(1) in bold type; or
(2) underlined; or italicized, and
Deletions from the prior current tariff shall be shown by striking through the text.
(e) On or before the post-filing date, (d) An electing utility shall submit bill comparisons to the commission staff showing monetary and percentage changes for a typical residential bill that would result from a requested change in rates and charges.
(Indiana Utility Regulatory Commission; 170 IAC 1-5-16; filed Oct 28, 1998, 3:38 p.m.: 22 IR 728; readopted filed Nov 23, 2004, 2:30 p.m.: 28 IR 1315)
Posted: 10/29/2008 by Legislative Services Agency
DIN: 20081029-IR-170080670PRA
Composed: Apr 27,2024 2:49:56AM EDT
A
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