[27 Pa.B. 1027]
[Continued from previous Web Page] § 54.562. Variances in figures.
The gas utility shall explain the major variances between the test year figures provided in § 54.561(1) (relating to schedule of expenses) above and the corresponding figures for the preceding 12 months.
§ 54.563. Summary of test year adjustments.
The gas 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. The base figures upon which adjustments are made shall be explained as to source (for example, budgeted numbers, an adjusted historic test year or some other methodology). Adjustments shall be presented by major account categories as listed in § 54.561 (relating to schedule of expenses). Ratios, percentages, allocations and averages used in adjustments shall be fully supported and identified as to source. Provide explanatory testimony and supporting schedules.
§ 54.564. Nonrecurring or extraordinary expenses.
The gas 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, for example, periodic maintenance programs.
§ 54.565. Transfers of property.
The gas utility shall identify transfers of property (description, date, purchaser, amount and basis for determining market value) for utility property that was sold or that was transferred to an affiliate of the utility other than by sale for the lesser of the last 3 years or since the utility's last rate case or during the test year. Indicate the impacts on rates.
§ 54.566. Lease payments.
The gas utility shall identify the lease payments which the utility is currently making to any affiliate, and for each lease state whether the property subject to the lease was ever owned by the utility. If the property was owned by the utility, explain when and why the property was transferred, the depreciated value of the property at the time of the transfer, the amount of consideration paid for the property by the affiliate, and identify the Commission order which permitted the transfer of the property.
§ 54.567. Actual and budgeted operation and maintenance expenses.
The gas utility shall provide a comparison between actual and budgeted Operation and Maintenance expenses by budget cost element for the historical test year and explain any budget variances of 10% or more.
§ 54.568. Write-offs and uncollectibles.
The gas utility shall provide the following information, for the test year and the 3 previous years, by customer class:
(1) Total gross write-offs for uncollectible accounts.
(2) Total recoveries of uncollectible accounts.
(3) Net write-offs for uncollectible accounts.
§ 54.569. Uncollectible accrual rate.
The gas utility shall provide the documentation supporting the uncollectible accrual rate reflected in the utility's filing.
§ 54.570. Claim for rate case expenses.
The gas utility shall supply calculations that support the total claim for rate case expense, including supporting data for outside services rendered. Provide the items comprising the estimated rate case expense claim for the current rate case. Include copies of the billings and invoices for outside services received to date.
§ 54.571. Rate filing data.
The gas utility shall provide the following information for the rate filings made in the last 3 years:
(1) Date filed.
(2) Tariff effective date.
(3) Docket number.
(4) Whether settled or fully litigated.
§ 54.572. Schedules for test year.
The gas utility shall submit schedules for the test year and for the 2 years 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) Outside service expenses.
(3) Regulatory commission expenses.
(4) Research and development expenses--provide a table identifying each project, providing a brief description, listing expenses incurred by the utility during the test year, listing total expenses incurred by the utility to date, noting the utility revenues (if any) and describing the ratepayer benefit.
(5) Charitable and civic contributions by recipient and amount. Explain major variances between the test year expenses and those expenses for the 2 preceding years.
§ 54.573. Outside services.
The gas 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.
§ 54.574. Advertising.
The gas utility shall submit details of expenditures for advertising (National and institutional and local media). Provide a schedule of advertising expense by major media categories for the test year and the 2 years immediately preceding the test year with respect to:
(1) Public health and safety.
(2) Conservation of energy.
(3) Explanation of billing practices, rates, and the like.
(4) Provision of factual and objective data programs in educational institutions.
(5) Competitive advertising.
(6) Other advertising programs.
(7) Total advertising expense.
§ 54.575. Charges from affiliates.
The gas utility shall provide an analysis by function of charges from affiliates, for the test year and the 12-month period immediately preceding the test year, for services rendered and included in the operating expense claims in the current proceeding. Explain the nature of the service and the basis on which charges or allocations are made. Also, explain major variances between the charges for the test year and the corresponding charges for the prior 12-month period. If applicable, provide a copy of the billing and payment terms for the contracts between the utility and its parent or an affiliated utility for services. To the extent that the parent or affiliated utility provides service to nonaffiliated companies, provide the corresponding billing and payment terms.
§ 54.576. Salaries, wage and benefit increases.
The gas utility shall submit calculations of the adjustments to operating expenses for salary, wage and fringe benefit increases (union and nonunion merit, progression, promotion and general) granted during the test year and 6 months subsequent to the test year. Supply data showing for the test year and for the 2 years preceding the test year:
(1) The actual payroll expense (regular and overtime separately) by categories of operating expenses, that is, maintenance, transmission, distribution, other (explain).
(2) The date, percentage increase and annual amount of each general payroll increase during the test year.
(3) The dates, percentage increase and annual amounts of merit increases or management salary adjustments.
(4) The total annual payroll increases in the test year.
(5) The employe benefits, and the costs thereof, for union and nonunion personnel. Specific benefits for executives and officers should also be included and the cost thereof. Include a breakdown of benefits and amounts as a percentage of test year payroll.
(6) The expensed and capitalized percentages of payroll and benefits for the test year.
(7) The regular payroll broken down between expensed, capitalized and other.
(8) The average starting salary by categories.
(9) The budgeted and actual number of employes (salaried, hourly, union, nonunion, temporary and other (specify)) by month for the test year and the prior 2 years. Provide an explanation of the increases or decreases in the budgeted number of employes between the test year and prior 2 years.
(10) Support the annualized pension cost figures.
(i) State whether these figures include any unfunded pension costs. Explain. Provide a statement describing the utility's funding policy.
(ii) Provide the latest actuarial study used to determine pension accrual rates, IRC and ERISA contribution amounts.
(iii) The basis and amount of the pension claim for the test year. Provide the IRC and ERISA contribution amounts and the SFAS 87 amount for the test year.
(iv) The amount of actual contributions made to the pension fund for the test year and the prior 3 years.
(11) If bonuses are claimed in the test year, provide:
(i) The date and amount of the bonuses.
(ii) Whether the bonuses are paid to all employes.
(iii) Whether the bonuses are performance-based.
§ 54.577. Payroll distribution.
To the extent not provided in response to § 54.576 (relating to salaries, wage and benefit increases), provide the payroll distribution showing the percentage of wages charged to Operating and Maintenance and other categories for each of the preceding 3-calendar years and the most recent annual period available.
§ 54.578. Increase or decresein employes.
The gas utility shall state whether the future test year budgeted (projected) labor includes any increases or decreases in the number of employes during the future test year and identify the changes in the employe complement. If increases have been budgeted (projected), state whether the future test year includes budgeted (projected) positions which have not been filled.
§ 54.579. Vacancies.
The gas utility shall explain how the utility has treated routine or normal position vacancies which occur as a result of terminations or retirements in its budgeted (projected) labor projections.
§ 54.580. Insurance premiums.
The gas utility shall provide the most recent insurance premiums for each type of insurance coverage (that is, employe benefit and those purchased by the utility) reflected in the utility's filing. If available, provide estimated premiums for the subsequent calendar year.
§ 54.581. Determination of premiums.
The gas utility shall provide an explanation of the manner in which the premiums are determined if they are based on any loss factor, and provide a copy of the declaration sheet for each existing insurance contract.
§ 54.582. Self insurance.
If the utility is self insured in any respect, explain how it is self insured and what rate case claims relate to the self insurance.
§ 54.583. Participants in medical and dental plans.
The gas utility shall provide the most recent actual number of eligible participants in each of the employe medical and dental plans reflected in the utility's filing.
§ 54.584. Employe withholdings.
If not reflected in the lead-lag study, the utility shall provide a listing of the various types of employe withholdings, garnishments and other employe funds held by the utility for remittance at a later date.
§ 54.585. Federal Energy Regulatory Commission (FERC) Form 2.
The gas utility shall provide a copy of the utility's two most recent FERC Form 2.
§ 54.586. Benefit program.
The gas utility shall provide a description of each employe benefit program or plan.
§ 54.587. Wage rate increases.
The gas utility shall provide a description of the utility's merit and cost of living wage rate increase policies.
§ 54.588. Incentive compensation.
The gas utility shall provide a copy of the incentive compensation and bonus plans and provide the level of related payments included in cost of service.
§ 54.589. Wage rate increases granted.
To the extent not provided in response to § 54.576 (relating to salaries, wage and benefit increases), provide the percentage wage rate increases granted by the utility by date and employe category for the 3 most recent calendar years and the current year to date.
§ 54.590. Labor productivity schedule.
The gas utility shall provide a labor productivity schedule for the last 5 years.
§ 54.591. Leased equipment costs.
The gas utility shall describe costs relative to leased equipment (including computers) and office space, as well as the terms and conditions of the leases. State the method used for calculating monthly or annual payments.
§ 54.592. Changes in accounting procedures.
The gas utility shall submit a statement of past and anticipated changes, 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.
§ 54.593. Debt interest utilized.
The gas utility shall state the amount of debt interest utilized for the historical and future test year income tax calculations, including the amount allocated from the debt interest of an affiliate. Provide the debt interest and allocation computations.
§ 54.594. Expenses recorded in test year.
The gas utility shall indicate the expenses that are recorded in the test year, resulting from the placement into or the removal from service of major plant additions. Provide an estimate of the expenses that will be incurred on a full-year's operation.
§ 54.595. Separate operating divisions.
If a utility has separate operating divisions, provide an income statement for each division, plus an income statement for the utility as a whole.
§ 54.596. Federal Energy Regulatory Commission (FERC) audit findings.
The gas utility shall provide a copy of the most recent FERC audit findings, the utility's response and final disposition of audit exceptions.
§ 54.597. Internal and independent audit reports.
The gas utility shall supply a listing of internal and independent audit reports of the test year and prior calendar year, and note any exceptions and recommendations and disposition thereof.
§ 54.598. Accounts receivable.
The gas utility shall provide an aging of total accounts receivable by type of service (such as, sales, transportation, and the like) for each month of the test year. Breakdown receivables on a monthly basis up to 24 months of delinquency, thereafter use 6 month increments.
§ 54.599. Expenses claimed in base rates.
The gas utility shall identify the expenses being claimed in base rates for any customer assistance type programs. Indicate where the expense is included (accounts or cost element), the amount of the expense and the supporting calculations. Include any billing deficiency expense or foregone revenues incurred as a result of the program.
§ 54.600. Expenses incurred.
(a) The gas utility shall provide the level of each of the following which is included in the utility's cost of service by separate type or payee, or both, which are incurred directly by the utility or are allocated or billed to the utility by affiliates or its parent utility:
(1) Fines and penalties.
(2) Contributions and donations.
(3) Membership dues.
(4) Lobbying expense.
(5) Employe activity costs (for example, picnics, parties, awards).
(6) Investor relations expenses.
(b) Provide a description and the purpose for membership for each organization listed in subsection (a).
§ 54.601. Payments to industry organizations.
The gas utility shall provide the level of payments made to industry organizations included in cost of service along with a description of each payee organization or project.
§ 54.602. American Gas Association.
The gas utility shall provide the following information related to the utility's membership in the American Gas Association (AGA):
(1) The cost included in requested cost of service.
(2) The cost excluded from requested cost of service.
(3) A copy of the most recent audit report of AGA expenditures prepared by the National Association of Regulatory Utility Commissioners.
(4) The most recent correspondence received from AGA which addresses the percentage of dues related to lobbying or other separate activities.
(5) The policy statement, objective, purpose, and the like of AGA.
§ 54.603. Amortization claims.
The gas utility shall submit a listing of the amortization claims made in the filing. Include the following information:
(1) Total expense being amortized.
(2) The length of amortization (months or years).
(3) The remaining unamortized balance.
(4) The Commission docket where the amortization was initially claimed or approved.
§ 54.604. Promotional advertising or competitive allowance claims.
The gas utility shall submit calculations for the promotional advertising or competitive allowance claims included in the test year, and for each program provide:
(1) An explanation of the program.
(2) A calculation and description of the benefits to current ratepayers.
(3) A justification for including the program in rates.
§ 54.605. Gas stored underground.
The gas utility shall provide all workpapers and documentation that support the utility's claimed balance of gas stored underground--current. Include support for the monthly injections and withdrawals and the gas cost rate.
§ 54.606. Operation and maintenance (O and M) expenses.
If the utility projects O and M expenses by cost element rather than by Federal Energy Regulatory Commission (FERC) account, supply the following:
(1) A schedule that compares the current projected expenses by cost element to the actual expenses incurred for the immediate prior 3-year period for each cost element.
(2) An explanation of any expenses that have been shifted within the cost elements.
(3) A listing of which FERC accounts have been included within each cost element.
§ 54.607. Budgeted or planned cost savings.
The gas utility shall describe each budgeted or planned cost savings program to be implemented during the historic or future year. For each program, identify the cost of implementing the program and the anticipated annual savings.
TAXES § 54.621. Tax reports required.
The gas utility shall provide a copy of the most recent Pennsylvania capital stock, corporate net income and gross receipts tax reports and the latest settlement for each tax.
§ 54.622. Federal tax returns.
The gas utility shall provide a copy of the corporate Federal tax returns and supporting schedules for the preceding 3 years and, if applicable, a copy of the calculation workpapers for the utility's consolidated tax savings adjustment.
§ 54.623. Taxes from another State.
The gas utility shall submit details of calculations for taxes, other than income taxes, where a utility is assessed taxes for doing business in another state, or on its property located in another state.
§ 54.624. Test year book calculations.
The gas utility shall provide a schedule of Federal and State taxes, other than income taxes, calculated on the basis of test year books, pro forma at present rates, and pro forma at proposed rates, to include the following categories:
(1) Social Security.
(2) Unemployment.
(3) Capital Stock.
(4) Public Utility Realty.
(5) PUC assessment.
(6) Other Property.
(7) Gross Receipts Tax.
(8) Other miscellaneous.
§ 54.625. Adjustments.
The gas utility shall submit a schedule that shows the adjustments from taxable net income per books to taxable net income pro forma under existing rates and pro forma proposed rates, together with an explanation of the normalizing adjustments. Submit calculations that support taxable income before State and Federal income taxes, including allocations due to operations in another state or due to operation of other taxable utility or nonutility business, operating divisions or areas.
§ 54.626. Income tax refunds.
The gas utility shall submit a schedule that shows the last 5 years' income tax refunds, plus interest net of taxes, received from the Federal government due to prior years' claims.
§ 54.627. Deferred income tax.
The gas utility shall furnish a breakdown of major items comprising the prepaid and deferred income tax charges, other deferred income tax credits, reserves and associated reversals on liberalized depreciation.
§ 54.628. Federal corporate graduated tax.
The gas utility shall explain how the Federal corporate graduated 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.
§ 54.629. Removal.
The gas utility shall explain the treatment given to costs of removal in the income tax calculation and the basis for the treatment.
§ 54.630. Income tax loss/gain carryovers.
The gas utility shall show income tax loss/gain carryovers from previous years. For each carryover, show the year of origin and the amounts, by year remaining at the beginning of the test year.
§ 54.631. Consolidated income tax return.
Under section 1552 of the Internal Revenue Code (IRC) (26 U.S.C.A. § 1552) (relating to earnings and profits) and 26 CFR 1.1552-1 (relating to earnings and profits), a parent utility, in filing a consolidated income tax return for the group, must choose one of four options by which it must allocate total income tax liability of the group to the participating members to determine each member's tax liability to the Federal government. To the extent not provided in response to § 54.622 (relating to Federal tax returns), and to the extent applicable:
(1) State what option has been chosen by the group.
(2) Provide, in summary form, the amount of tax liability that has been allocated to each of the participating members in the consolidated income tax return for the test year and the most recent 3 years for which data is available.
(3) Provide a schedule, in summary form, of contributions, which were determined on the basis of separate tax return calculations, made by each of the participating members to the tax liability indicated in the consolidated group tax return. Provide total amounts of actual payments to the tax depository for the tax year, as computed on the basis of separate returns of members.
(4) Provide the most recent annual income tax return for the group.
(5) Provide details of the amount of the net operating losses of any member allocated to the income tax returns of each of the members of the consolidated group for the test year and the 3 most recent years for which data is available, together with a summary of the actual tax payments for those years.
(6) Provide details of the amount of net negative income taxes, after the tax credits are accounted for, of any member allocated to the income tax return of each of the members of the consolidated group for the test year and the 3 most recent years for which data is available, together with a summary of the actual tax payments for those years.
§ 54.632. Deferred income taxes.
The gas utility shall provide computations that show, by vintage year, the state and Federal deferred income taxes that result from using accelerated tax depreciation associated with post 1969 public utility property, ADR rates, and accelerated tax depreciation associated with post 1980 public utility property under the Accelerated Cost Recovery System and Modified Accelerated Cost Recovery System.
(1) Reconcile and explain any differences in the base used to calculate state and Federal deferred income taxes.
(2) State whether tax depreciation is based on the rate base items claimed as of the end of the test year, and whether it is the annual tax depreciation at the end of the test year.
(3) Provide a schedule that separately shows the calculation of tax depreciation and deferred taxes on:
(i) Completed plant additions placed in service during the future test year.
(ii) Construction work in progress included in rate base.
(4) Reconcile differences between the deferred tax balance, as shown as a reduction to rate base, and the deferred tax balance as shown on the balance sheet.
§ 54.633. Investment tax credits.
The gas utility shall submit a schedule that shows accumulated and unamortized investment tax credits, by vintage year and percentage rate, together with calculations that support the amortized amount claimed as a reduction to pro forma income taxes or the unamortized balance deducted from rate base. Describe the methods used to write-off the unamortized balances.
§ 54.634. Accumulated deferred Federal income taxes.
The gas utility shall provide computations that support the amount of the Accumulated Deferred Federal Income taxes deducted from rate base.
(1) The schedule that provides the computations should include, but not be limited to, the following columnar headings:
(i) Vintage year (vintage years 1969 and prior can be grouped together).
(ii) Qualified property additions by vintage year.
(iii) Weighted average life of property by vintage year.
(iv) Accumulated tax depreciation reserve by vintage year.
(v) Normalized depreciation reserve by vintage year.
(vi) Tax depreciation reserve which exceed normalized depreciation reserve by vintage year.
(vii) Accumulated deferred Federal income tax reserve by vintage year.
(2) If the total of Column (vii), does not agree with the accumulated deferred income taxes deducted from rate base, provide a reconciliation with an explanation of the reconciling items
§ 54.635. Future test year taxes.
The gas utility shall provide workpapers that show the derivation of future test year Social Security and Medicare FICA taxes based on future test year labor expense. Identify both the total and operations and maintenance amounts.
§ 54.636. Future test year unemployment taxes.
The gas utility shall provide workpapers that show the derivation of future test year Federal and state unemployment taxes. Show both the total and Operations and Maintenance amounts.
§ 54.637. Future test year capital stock taxes.
The gas utility shall provide workpapers that show the derivation of future test year capital stock taxes.
DEPRECIATION § 54.651. Support for claimed amounts.
The gas utility shall provide schedules that support claimed amounts for Natural Gas Plant in Service by function and by account if available.
§ 54.652. Original cost plant and applicable reserves.
The gas utility shall provide testimony and schedules that indicate the procedures and calculations the utility employed to develop the original cost plant and applicable reserves to the test year end as submitted in the current proceeding.
§ 54.653. Survivor or interim survivor curve; annual accrual rate.
The gas utility shall supply a schedule by account or by depreciable group that shows the survivor curve or interim survivor curve and annual accrual rate estimated to be appropriate:
(1) For the purpose of this filing.
(2) For the purpose of the most recent rate filing prior to the current proceeding.
(b) Supply a comprehensive statement of major changes made in depreciation methods, procedures and techniques and the effect of the changes upon accumulated and annual depreciation, if any.
§ 54.654. Retitrement rate actuarial method.
If the retirement rate actuarial method of mortality analysis is utilized, set forth representative examples, including charts that depict the observed and estimated survivor curves, as well as a tabular presentation of the observed and estimated life tables plotted on the chart. Other analysis results shall be subject to request.
§ 54.655. Surviving orginal cost plant.
The gas utility shall provide the surviving original cost plant at the appropriate test year date or dates by account or functional property group including claimed depreciation reserves. Provide annual depreciation accruals where appropriate. These calculations should be provided for plant in service as well as other categories of plant, including but not limited to, contributions in aid of construction, customers' advances for construction, and anticipated retirements associated with construction work in progress claims, if applicable.
§ 54.656. Vintage calculations.
The gas utility shall provide representative examples of calculations by vintage, at least at an account level of detail, as performed for these purposes. Other vintage calculations shall be subject to request.
§ 54.657. Depreciation methods utilized.
The gas utility shall provide, through testimony, a description of the depreciation methods utilized in calculating annual depreciation amounts and depreciation reserves, together with a discussion of the significant factors which were considered in determining estimates of service life and forecast retirements by facilities, accounts or subaccounts, as applicable. Provide dates of the field inspections and facilities visited.
§ 54.658. Original and estimated survivor curves.
The gas utility shall set forth, in exhibit form, charts that depict the original and estimated survivor curves and a tabular presentation of the original life table plotted on the chart for each account where the retirement rate method of analysis is utilized.
(1) If any utility plant was claimed in a previous rate proceeding but was excluded from the measures of value because it was deemed not to be ''used and useful'' in the public service, describe each item of property.
(2) Provide the allocation methodology used to determine the allocation of common plant, if applicable.
§ 54.659. Appropriate survivor curve and annual accrual rate.
The gas utility shall supply a schedule by account and depreciable group showing the survivor curve and annual accrual rate estimated to be appropriate:
(1) For the purposes of this filing.
(2) For the purposes of the most recent rate increase filing prior to the current proceedings. Provide testimony of any changes made in method of depreciation and in the selection of average service lives and dispersion.
§ 54.660. Cumulative depreciated original cost.
The gas utility shall provide a table, showing the cumulative depreciated original cost by year of installation for utility plant in service at the end of the test year (depreciable plant only) as claimed in the measures of value, in the following form:
(1) Year installed.
(2) Original cost the total surviving cost associated with each installation year from the plant accounts.
(3) Calculated depreciation reserve--the calculated depreciation reserve associated with each installation year from the plant accounts.
(4) Depreciated original cost--(Column B minus Column C).
(5) Total--cumulation year by year of the figures from Column D.
(6) Column E divided by the total of the figure in Column D.
§ 54.661. Additional data required.
The gas utility shall provide the following on computer disks:
(1) The aged plant data necessary to complete a service life study based on Plant Mortality Date through the end of the historic test year.
(2) The data necessary to calculate annual and accrued depreciation as of the end of the historic and future test years.
RATE BASE § 54.671. Map.
The gas utility shall supply a map of the natural gas system facilities and gas service areas. The map should include transmission lines, distribution lines, interconnections with other LDCs (with the interconnecting points clearly designated), gas storage areas and gas storage lines. The normal direction of gas flow within the transmission system should be indicated by arrows. Separate service areas within the system should be clearly designated.
§ 54.672. Property disruption.
The gas utility shall provide, with respect to the scope of operations of the utility, a description of the property, including the gas manufacturing or other peak shaving facilities. Supply an explanation of the system's operation, and the plans for any significant future expansion, modification or other alteration of facilities. This description shall include at least the following:
(1) If respondent has various gas service areas, indicate if they are integrated, such that the gas supply is available to the customers.
(2) The pertinent data regarding utility policy related to the addition of new customers in the utility's service area.
§ 54.673. Actual monthly balance.
For those items for which data is available, provide the following actual monthly balance by account for the historic and future test periods to present. Updated data shall be provided as it becomes available.
(1) Depreciable utility plant in service.
(2) Nondepreciable utility plant in service.
(3) Construction work in progress.
(4) Accumulated deferred income tax.
(5) Materials and supplies.
(6) Customer advances for construction.
(7) Contributions in aid of construction.
(8) Accumulated depreciation.
(9) Prepayments by type.
(10) Customer deposits.
(11) Injury and damages reserve.
§ 54.674. Five year construction budget.
The gas utility shall provide the utility's 5-year construction budget.
§ 54.675. Test year rate base and rates of return.
The gas utility shall provide a schedule that shows the test year rate base and rates of return at original cost less accrued depreciation under present rates and under proposed rates. Claims made on this schedule should be cross referenced to appropriate supporting schedules.
§ 54.676. Actual data.
If the schedule provided in response to § 54.675 (relating to test year rate base and rates of return) is based upon a future test year, provide a similar schedule which is based upon actual data for the 12-month period immediately prior to the test year.
§ 54.677. New rate request.
When a utility seeks a new rate which is based in whole or in part on the cost of construction of a natural gas plant, the utility shall identify:
(1) The total cost of the natural gas plant.
(2) The following costs, which may be stated by Federal Energy Regulatory Commission account numbers:
(i) The cost and quantity of each category of major equipment, such as mains, services, and the like.
(ii) The cost and quantity of each category of bulk materials, such as concrete, pipeline and the like.
(iii) Manual labor.
(iv) Direct and indirect costs of architect/engineering services.
(v) Direct and indirect costs of subcontracts or other contracts involving major components or systems such as mains, storage, compressors, major structures and the like.
(vi) Distributed costs.
(3) A cost increase of $100,000 or more, including Allowance for Funds Used During Construction, over the original utility estimates and its causes.
§ 54.678. Construction work in progress (CWIP).
(a) If a claim is made for CWIP and an historic test year is used, include, in the form of an exhibit and testimony, the summary page from the work orders, the amount expended at the end of the test year, and the anticipated in-service dates. Indicate if any of the CWIP will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe the necessity of each project claimed if not detailed on the summary page from the work order. Include final completion date and estimated total amounts to be spent an each project. These exhibits should be updated during rebuttal testimony of these proceedings.
(b) If a claim is made for CWIP and a future test year is used, provide for each project the anticipated amounts expended, the anticipated in service dates, and the necessity for each project claimed. (These exhibits should be updated during rebuttal testimony of these proceedings.)
§ 54.679. Allowance for funds used during construction (AFUDC).
The gas utility shall provide a workpaper showing the derivation of the utility's current AFUDC rate.
§ 54.680. Plant held for future use.
The gas utility shall state whether a claim is made for plant held for future use. If a claim is made, supply the following:
(1) A brief description of the plant or land site and its cost, and the amount claimed in rate base.
(2) Expected date of use for each item claimed.
(3) Explanation of use as to why it is necessary to acquire each item in advance of its date and use.
(4) Date when each item was acquired.
(5) Date when each item was placed in plant held for future use.
§ 54.681. Materials and supplies.
The gas utility shall:
(1) Attach an exhibit of the actual book balances for materials and supplies by month for the 13 months prior to the end of the test year. Explain any abrupt changes in monthly balances. (Explain, through testimony, the method of determining claim if other than just described.)
(2) Provide the method of inventory valuation that was used to develop the claim for materials and supplies. Provide supporting documentation which identifies the rationale and method of calculation.
(3) Provide testimony supporting the utility's use of a material and supply model to calculate needed material and supply levels.
(4) Supply an illustrative example of how the monthly balances are derived.
§ 54.682. Fuel stocks.
The gas utility shall:
(1) Attach an example of the actual book balances for fuel stocks by month for the 13 months prior to the end of the test year. Explain any abrupt changes in monthly balance. Explain, through testimony, the method of determining claim if other than just described.
(2) Provide the method of inventory valuation that was used to develop the claim for fuel stocks. Provide supporting documentation which identifies the rationale and method of calculation.
(3) Provide testimony supporting the utility's consideration of supplies and requirements in calculating fuel stock levels.
§ 54.683. Salvage.
Regardless of whether a claim for net negative or positive salvage is made, attach an exhibit that shows by account the gross salvage, cost of removal, and net salvage for the test year and 4 previous years.
§ 54.684. Plant additions and retirements.
The gas utility shall:
(1) Provide a schedule of the total cost of plant additions and retirements by plant account for each month of the historic test year and the utility's estimated monthly plant additions and retirements for the future (pro forma) test year.
(2) Provide a schedule, by project, on a yearly basis for the test year and the last 2-calendar years, identifying the amount of the initially approved construction budget (by the Board of Directors), identifying the actual corresponding amount of completed construction, and explaining the major variances.
(3) Provide a schedule, for the last two base rate cases, showing the amount of forecasted completed plant in service as claimed by the utility and the corresponding amount of plant in service actually completed by the utility by the end of the test year.
(4) Consistent with records maintained by the utility in the ordinary course of business, for each future test year plant addition of greater than $100,000, provide a schedule showing:
(i) A complete description of the project.
(ii) The anticipated retirements related to the plant addition.
(iii) The budgeted cost of total project.
(iv) The starting date of project.
(v) The original anticipated in-service date.
(vi) The amount expanded to date.
(vii) The percent of project currently complete.
(viii) The additional costs necessary to complete.
(ix) The estimated AFUDC for the project.
(x) The depreciation rate to be employed.
§ 54.685. Customer advances and contributions.
(a) The gas utility shall explain the utility's policy with regard to when customer advances and contributions in aid of construction must be made. Provide a copy of the utility's current customer extension policy. Provide a representative sample of the analyses conducted by the utility when deciding whether service to a new customer qualifies under the utility's customer extension policy.
(b) The gas utility shall describe how contributions in aid of construction and customer advances are reflected in the utility's cost of service study.
(c) The gas utility shall provide a schedule of contributions in aid of construction by customer class and plant account for the most recent year available.
(d) The gas utility shall provide a schedule of customer advances for construction by customer class and plant account for the most recent year available.
§ 54.686. Transmission and distribution mains investments.
(a) The gas utility shall provide a breakdown of transmission and distribution mains investment by pipe diameter.
(b) The gas utility shall provide a breakdown of services investment by service line diameter, and a breakdown of services by size and customer class.
(c) The gas utility shall describe the various meters used to determine customer usage. Include the manufacturer's name and the average age of the various meters.
(d) If available, provide a breakdown of meter investment by meter size, and a breakdown of meters by size and customer class.
(e) If the utility plans to implement remote meter reading, provide an explanation of the plan and the planned implementation schedule.
§ 54.687. Compensating bank balances.
If a claim is made for compensating bank balances, provide the following information:
(1) The name and address of each bank.
(2) The types of accounts with each bank--checking, savings, escrow, other services, and the like.
(3) The average daily balance in each account.
(4) The amount and percentage requirements for the compensating bank balance at each bank.
(5) The average daily compensating bank balance at each bank.
(6) The documents from each bank that explain each bank's compensating bank balance requirements.
(7) The interest earned on each type of account.
(8) A calculation of the average daily float for each bank.
§ 54.688. Comparative balance sheet.
(a) A gas utility shall provide a comparative balance sheet for the test year and the preceding year which corresponds with the test year data.
(b) A gas utility shall explain any other significant (in amount) current assets listed on the balance sheet.
(c) A gas utility shall provide a copy of the utility's detailed quarterly balance sheets for the historic test year and the preceding year through the most recent quarter available. Updated data shall be provided as it becomes available.
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