PROPOSED RULEMAKING
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,
Secretary
Statement 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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