PROPOSED RULEMAKING
PENNSYLVANIA PUBLIC
UTILITY COMMISSION
[ 52 PA. CODE CH. 53 ]
[ L-2012-2317273 ]
Use of Fully Projected Future Test Year; Advanced Notice of Proposed Rulemaking
[48 Pa.B. 276]
[Saturday, January 13, 2018]Public Meeting held
December 21, 2017Commissioners Present: Gladys M. Brown, Chairperson; Andrew G. Place, Vice Chairperson; Norman J. Kennard; John F. Coleman, Jr.; David W. Sweet
Use of Fully Projected Future Test Year—52 Pa. Code Chapter 53; L-2012-2317273
Advance Notice of Proposed Rulemaking Order By the Commission:
This advance notice of proposed rulemaking (ANOPR) identifies proposed procedures and filing requirements for use of a fully projected future test year (FPFTY) by eligible utilities in base rate cases. Any new FPFTY procedures and filing requirements, if adopted, would comprise a new Exhibit E Fully Projected Future Test Year—All Jurisdictional Public Utilities and Other Regulated Entities Electing To Use a Fully Projected Future Test Year (FPFTY) Except Communications Utilities to Section 53.53 of Title 52 of the Pennsylvania Code. The Commission has jurisdiction to employ the concept of a FPFTY as authorized by Act 11 of 2012, which amended Section 315 of the Public Utility Code.
Additionally, this advance notice requests stakeholder input on proposed or alternative updates, as well as stakeholder suggestions for updates or alternatives, to the existing Exhibits A (generally natural gas), C (electric), and D (water and waste water) or other sections of the filing requirement regulations related to Sections 53.51—53.56 Information Furnished with the Filing of Rate Changes.
The Commission will convene a stakeholder meeting to review the comments regarding the ANOPR. Thereafter, the Commission intends to initiate a proposed rulemaking regarding FPFTY procedures and filing requirements and may convene additional stakeholder meetings to gather further input from stakeholders.
Background
On February 14, 2012, Governor Corbett signed into law Act 11 of 2012 (Act 11), which amended Chapters 3, 13, and 33 of the Pennsylvania Public Utility Code (Code). 66 Pa.C.S. §§ 308, 1307, 1311, 1327, and 1350—1360. Act 11, inter alia, authorizes water and wastewater utilities, electric distribution companies (EDCs), and natural gas distribution companies (NGDCs) or a city natural gas distribution operation to use a FPFTY in their Section 1308(d) base rate proceedings. See 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates). A new Exhibit E is contemplated for applicability to utilities choosing to use a FPFTY. The new Exhibit E would standardize the procedures and filing requirements for rate case data across the utility categories. Changes are being proposed to the introductory and explanatory text in Section 53.53(a)—(c), and a new section 53.53(d) is proposed.
The FPFTY is a ratemaking mechanism that allows a utility to project capital investment and correspondingly to include that projected investment in the utility's claimed revenue requirement throughout the twelve-month period beginning with the first month that the new rates would be placed in effect. 66 Pa.C.S. §§ 315, 1350—1360; Pa. Public Utility Commission v. Columbia Gas of PA Inc., Docket No. R-2012-2321748, 2013 WL 2420877 (Pa. PUC). A public utility can also use the FPFTY mechanism to project other revenue requirement and ratemaking components such as operating revenues, operating expenses, depreciation, interest expense, taxes, and return.
Act 11 additionally allows eligible water, wastewater, gas, and electric utilities to petition the Commission for approval of a distribution system improvement charge (DSIC) to recover the reasonable and prudently incurred costs related to the repair, improvement, and replacement of utility infrastructure. In conjunction with a DSIC, the utilities must file a long-term infrastructure improvement plan (LTIIP) which is a necessary component of a DSIC petition. 66 Pa.C.S. § 1353(b)(3). The purpose of a LTIIP is to ensure that utilities are planning and executing capital expenditures that will maintain and improve the efficiency, safety, adequacy, and reliability of existing distribution infrastructure at a faster pace than they have done historically. Water utilities with a previously-approved DSIC are not required to file a LTIIP unless otherwise directed by the Commission. See 66 Pa.C.S. § 1360. Further, Section 1356 of Act 11, 66 Pa.C.S. § 1356, requires a utility with an approved DSIC to file an Annual Asset Optimization Plan (AAO Plan). An AAO Plan is intended to provide the Commission and the public with an overall status report regarding a utility's progress in making infrastructure improvements pursuant to its Commission-approved LTIIP. See Review of LTIIP, Docket No. 2012-2317274 (May 23, 3014), establishing regulations at 52 Pa. Code §§ 121.1—121.8 (relating to LTIIPs).
We have addressed policy and tariff issues related to DSICs at Implementation of Act 11: DSIC, Docket No. M-2012-2293611. The purpose of this ANOPR is to solicit comments and input on the procedures and filing requirements for utilities that use a FPFTY.
Discussion
A. New Exhibit E Specifically Referencing FPFTY Requirements
Existing regulations for Section 1308 rate cases are set forth, in part, at Section 53.53 of our regulations, 52 Pa. Code § 53.53.1 Exhibit A to that section addresses, inter alia, gas utilities. Exhibit C addresses electric utilities. Exhibit D addresses water and wastewater utilities. These three exhibits provide the initial requirements and framework for the provision of utility data in support of rate cases using historic and future test years. No changes are contemplated to Exhibits A, C, or D.2
The term ''historic test year'' (HTY) as currently used in Exhibits A, C, and D refers to:
[T]he test year chosen by the utility to support its filing, that is, presumably future test year data would be supplied in most cases. ''Historic test year,'' as referred to in Exhibit D, is defined as book figures for the base test year. The term ''future test year,''[(FTY)] as used in Exhibit D, refers to the adjusted historic test year for known and measurable changes 12 months beyond the book figures for the base year, or the utility's final claimed supporting data.52 Pa. Code § 53.53(b) (last amended effective May 21, 2005, see 35 Pa.B. 3024). To the extent not otherwise indicated, the requirements of Exhibits A, B, C, and D are to be preserved relative to cases in which a utility is not using a FPFTY. A utility using a FPFTY would be required to provide the data and support required if using a HTY or a FTY in conjunction with providing the FPFTY data and support as indicated in the proposed Exhibit E. HTY and FTY data and support would not be submitted as separate components but rather submitted in proximity and association with the data and support relative to the FPFTY data.
We note that there are several points of divergence between the data and support required in the existing Exhibits A, C, and D for the various utility categories. Some of these differences would be preserved in a new Exhibit E. Some, however, seem to serve no particular purpose and will be proposed for deletion. A new Exhibit E would therefore, also, standardize many of the procedures and filing requirements for rate case data among the eligible utility categories while spelling out instances where differences will continue.
Changes would also be necessary to the introductory and explanatory text in Section 53.53(a)—(c), and a new section 53.53(d) would be proposed.
Thus, we anticipate proposing, in a future rulemaking, to establish a new exhibit, Exhibit E, for any utility which is eligible to use and which elects to use a FPFTY. The new Exhibit E would standardize the procedures and filing requirements for rate case data among the utility categories. By statute, ''fully projected future test year'' is defined as the 12-month period beginning with the first month that the new rates will be placed in effect after application of the full suspension period permitted under section 1308(d) (relating to voluntary changes in rates). Thus, the term ''test year,'' as used in Exhibit E, would refer to the FPFTY.
Based upon these considerations, the following changes to Section 53.53 and incorporation of a new Exhibit E are contemplated:
• Section 53.53(a) & (b)—Information to be furnished with proposed general rate increase filing in excess of $1 million.
We would add a notation referring to the new ''Exhibit E—all utilities electing Fully Projected Future Test Year (FPFTY),'' to distinguish the differences in definitions of terms used in Exhibits A—D and in Exhibit E, and to define ''FPFTY.''
• Section 53.53, Exhibit E—Fully Projected Future Test Year—All Jurisdictional Public Utilities and Other Regulated Entities Electing To Use A Fully Projected Future Test Year (FPFTY)—Except Communications Utilities.
Subsection I. We would add a definitions section for use in FPFTY filings.
Subsection II. We would add a general filings requirements section that delineates the following:
A. Summary of the Filing.
B. Description of Utility Operations.
C. Rate Base.
D. Rate of Return (ROR).
E. Balance Sheet.
F. Income Statement and Statement of Cash Flow.
G. Operating Revenue.
H. Operating Expenses.
I. Employee Costs, including Related Costs such as Benefits and Retiree Costs.
J. Depreciation.
K. Taxes.
L. Long Term Infrastructure Improvement Plan (LTIIP) and Annual Asset Optimization Plan (AAO Plan)
M. Industry-specific data.
We are particularly interested in comments regarding existing data production requirements that exist in Exhibits A, C, and D but which are not contemplated herein for retention in a new Exhibit E. We also request stakeholders to comment on data productions requirements that could be added to Exhibit E to enhance decision making in cases involving FPFTY considerations. Further, we request comments on how much historical and current data should be covered by the various requests.
B. Additional Section 53.53 Matters
The contemplated new Exhibit E addresses data to be provided with the filing. To the extent that there are non-discovery questions related to use of a FPFTY that should be addressed in regulations, we shall address those matters in a new Subsection 53.53(d). Stakeholders are invited to comment on those issues and contemplated resolutions.
C. Housekeeping Updates to Existing Regulations
1. 52 Pa. Code § 5.423—Section 5.423 is referenced in Exhibit D (water and wastewater), Section VII.25. Section 5.324 has, however, been replaced by 52 Pa. Code § 5.365 (relating to orders to limit availability of proprietary information), effective September 21, 2013, 43 Pa.B. 5593. We would update the cross reference.
2. 52 Pa. Code § 53.51(d)—Section 53.51(d) provides that utilities filing for proposed rate changes shall serve a copy of the proposed rate changes and supporting data on the Office of Consumer Advocate (OCA). We would revise this provision consistent with the Commission's e-service procedures and to direct that the Office of Small Business Advocate (OSBA) and the Commission's Bureau of Investigation and Enforcement (I&E) also be served.
3. 52 Pa. Code § 53.52(a)—Section 53.52(a)(7) uses the term ''subsection'' to refer to itself, and Section 53.52(a)(8) uses ''paragraph'' to refer to itself. We would use ''paragraph'' for both internal references.
4. 52 Pa. Code §§ 53.51—53.56—We invite comments on any other provisions Sections 53.51—53.56 that would require similar updates.
D. Comments Invited
We invite interested parties to file comments on the anticipated changes to be proposed in a future rulemaking. Stakeholders are invited to identify other substantive, procedural, and housekeeping matters related to FPFTY rate case filings related to electric, water, wastewater, and natural gas.
Stakeholders are also invited to comment on the applicability of FPFTY regulations to municipal utilities subject to Commission jurisdiction.
E. Stakeholder Meetings For The ANOPR
We shall convene a stakeholder meeting within thirty (30) days of receipt of the comments regarding the ANOPR. Thereafter, we shall determine if further stakeholder meetings would be beneficial, and we will set an appropriate schedule accordingly. The Law Bureau, in consultation with the other Commission bureaus and offices and based on the stakeholder input from the ANOPR process, will prepare a recommendation regarding the FPFTY NOPR.
F. NOPR
Based on the staff recommendation, we shall commence a proposed rulemaking with a FPFTY proposal. We shall publish the NOPR and proposed procedures and filing requirements and establish comment and reply comment periods. We will schedule stakeholder meetings as appropriate.
Conclusion
Accordingly, under sections 501, 1350—1360 and 1501 of the Public Utility Code, 66 Pa.C.S. §§ 501, 1350—1360, and 1501 and the Commonwealth Documents Law, Act of July 31, 1968, P.L. 769, as amended, 45 P.S. §§ 1201, et seq., and the regulations promulgated thereunder, at 1 Pa. Code §§ 7.1—7.4, we contemplate adopting new regulations at 52 Pa. Code § 53.53 as set forth in Annex A. As noted herein, comments on the ANOPR are requested within 45 days of publication; Therefore,
It Is Ordered That:
1. Interested parties are requested to comment on this advance notice of proposed rulemaking regarding the procedures and filing requirements for utilities using a fully projected future test year, as set forth in Annex A.
2. The Law Bureau shall deposit this Order and Annex A with the Legislative Reference Bureau to be published in the Pennsylvania Bulletin.
3. An original copy of any comments referencing the docket number of the proposed regulations set out in Annex A to this Order, be submitted within 45 days of publication in the Pennsylvania Bulletin, to Secretary Rosemary Chiavetta, Pennsylvania Public Utility Commission, 400 North Street, Harrisburg, PA 17120. Comments may be e-filed instead consistent with the Commission's e-filing instructions at: http://www.puc.pa.gov/efiling/default.aspx.
4. Electronic copies in Microsoft Word®-compatible format of all filings shall be provided via email to following Commission email account: RA-PC-FPFTY2317273E@pa.gov.
5. The contact person regarding legal issues for this rulemaking is Assistant Counsel Louise Fink Smith, Law Bureau, finksmith@pa.gov. The contact person for technical issues is Erin Laudenslager, Bureau of Technical Utility Services, elaudensla@pa.gov. Alternate formats of this document are available for persons with disabilities and may be obtained by contacting Alyson Zerbe, Regulatory Coordinator, alzerbe@pa.gov.
6. The Law Bureau in conjunction with the Bureau of Technical Services will convene a stakeholder meeting within thirty (30) days of receipt of comments regarding this advance notice of proposed rulemaking regarding the procedures and filing requirements for utilities using a fully projected future test year.
7. The Law Bureau in conjunction with the Bureau of Technical Services and other Commission bureaus will prepare a recommendation regarding a fully projected future test year proposed rulemaking.
8. A copy of this Order and Annex A shall be served upon the Energy Association of Pennsylvania (EAP), the National Association of Water Companies (NWWC) all jurisdictional electric distribution companies, all jurisdictional natural gas distribution companies and city natural gas distribution companies, all jurisdictional water and wastewater utilities, all municipal utilities subject to Commission jurisdiction, other jurisdictional utilities except communication utilities, the Commission's Bureau of Investigation and Enforcement, the Office of Consumer Advocate, and the Office of Small Business Advocate.
ROSEMARY CHIAVETTA,
Secretary
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 53. TARIFFS FOR NONCOMMON CARRIERS
INFORMATION FURNISHED WITH THE FILING OF RATE CHANGES § 53.51. General
* * * * * (d) Each utility filing a proposed rate change with the Commission shall serve a copy of the proposed rate change and supporting data required by this chapter upon the Office of the Consumer Advocate, the Office of the Small Business Advocate, the Commission's Bureau of Investigation and Enforcement and the Commission's Bureau of Technical Utility Services. [Verification of service of this information upon the Office of Consumer Advocate shall be filed with the Commission.] Additionally, the utility shall file verification of service of this information with the Commission. The utility may serve hard copies or comply with the Commission's e-service requirements.
* * * * * § 53.53. Information to be furnished with proposed general rate increase filings in excess of $1 million.
(a) When a public utility under the jurisdiction of the Commission, 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 general 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 data requests contained in the following exhibits which apply to the utility types or specific test year, as indicated. Utilities not using the Fully Projected Future Test Year (FPFTY) method shall refer to Exhibits A, B, C or D, consistent with their utility type. Utilities using the FPFTY method shall refer to Exhibit E which is predicated on Exhibits A, C, and D but reflects adjustments required for consideration of a FPFTY proceeding. Information provided in conjunction with rate cases is subject to the act of February 14, 2008 (P.L. 6, No. 3) (65 P.S. §§ 101—3104), known as the Right to Know Law, 52 Pa. Code §§ 102.1—102.4 (relating to confidential security information), and 52 Pa. Code § 5.365 (relating to Orders to limit availability of proprietary information). The exhibits in this section are as follows:
(1) Exhibit A—Utilities except communications, electric, water, and wastewater utilities.
(2) Exhibit B—Communications utilities.
(3) Exhibit C—Electric utilities.
(4) Exhibit D—Water and wastewater utilities.
(5) Exhibit E—All jurisdictional public utilities and other regulated entities electing to use a Fully Projected Future Test Year (FPFTY) except Communications utilities.
(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 ''historic test year'' as used in these exhibits 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. The term ''test year'' as used in Exhibits A—D refers to the test year chosen by the utility to support its filing. ''Historic test year,'' as referred to in Exhibit D, is defined as book figures for the base test year. The term ''future test year,'' as used in Exhibit D, refers to the adjusted historic test year for known and measurable changes 12 months beyond the book figures for the base year, or the utility's final claimed supporting data. These terms may have different meanings when used in conjunction with a FPFTY. See Exhibit E for specific applicability of these and other terms to the FPFTY method.
[(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.]
(c) Testimony.
(1) Filed materials shall include the direct testimony of all utility witnesses who testified in support of the utility's position. The utility witnesses' testimony shall be accompanied by supporting worksheets, if necessary, and shall refer to supporting exhibits to which the testimony relates.
(2) If adjustments from the test year are proposed, the utility witnesses' testimony shall also include a complete explanation and justification of any claims which depart from the unadjusted test year results of operations, including the methodology and rationale. The utility witnesses' testimony, 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.
(d) The utility shall provide a summary table of the most recent approved long-term infrastructure improvement plan (LTIIP) showing a list of eligible projects, year of anticipated construction, description of project and estimated cost of each project. If a proposed LTIIP is pending, the utility also shall provide a summary table of the proposed LTIIP. The utility shall provide docket numbers for approved or proposed LTIIPs.
(e) The utility shall provide working electronic copies of schedules in Microsoft Excel or similar electronic spreadsheet format (with all formulas and links intact).
* * * * * (Editor's Note: Exhibit E is anticipated proposed material and printed in regular type to enhance readability.)
Exhibit E
FULLY PROJECTED FUTURE TEST YEAR—ALL JURISDICTIONAL PUBLIC UTILITIES AND OTHER REGULATED ENTITIES ELECTING TO USE A FULLY PROJECTED FUTURE TEST YEAR (FPFTY) EXCEPT COMMUNICATIONS UTILITIES Exhibit E sets forth definitions in Section I and common filing requirements in Subsections II.A. through II.L. for all utilities electing to use a FPFTY. Subsection II.M. sets forth further specific requirements unique to a particular industry if the utility elects to use a FPFTY.
I. Definitions.
Construction Work in Progress (CWIP)—A holding account for property costs not yet ready to be placed in service.
Distribution (of) Service/Infrastructure—Systems and facilities required to distribute utility services to the utility's customers, including the systems and facilities required to collect wastewater from a utility's customers.
Distribution System Improvement Charge (DSIC)—A ratemaking mechanism that may be approved by the Commission subsequent to or in conjunction with Commission approval of a utility's LTIIP that allows for the recovery of prudently incurred costs related to the repair, improvement, and replacement of eligible utility infrastructure through a surcharge that is subject to reconciliation, audit, and other consumer protections.
Fully projected future test year (FPFTY)—A 12-consecutive-month period beginning with the first full month that the new rates will be in effect after the application of the full suspension period permitted under section 1308(d).
Future test year (FTY)—A 12-consecutive-month period beginning the day after the end of the HTY reflecting anticipated or projected results of operations.
Historic test year (HTY)—12-month period that reflects the actual (e.g., historic) results of operations.
Long-term infrastructure improvement plan (LTIIP)—A utility's filed and approved plan to ensure that the utility is planning for and executing capital expenditures that will maintain and improve the efficiency, safety, adequacy, and reliability of its distribution (or collection) infrastructure at a faster pace than it has done historically, approval of which is a precondition or concurrent condition to Commission approval of a utility's DSIC.
Parent—Includes the municipality if the utility is a municipal utility or entity subject to Commission regulation.
Test year (TY)—12-consecutive-month period chosen by the utility to support its filing.
Uniform System of Accounts (USoA)—An accounting system prescribed by the Pennsylvania Public Utility Commission (Commission) and the Federal Energy Regulatory Commission (FERC) applicable to public utilities regulated by the Commission. The accounting system prescribes the manner and form by which such accounts shall be maintained.
II. General filing requirements of all jurisdictional utilities and other entities under the Commission's jurisdiction using the FPFTY method—except communications utilities
To the extent any of the information required is subject to a claim of confidentiality or proprietary nature, the utility shall so designate, with specificity, which information is claimed to be confidential or proprietary, and that claim shall be subject to review by the presiding officer. See 52 Pa. Code § 5.365.
A. Summary of filing
1. Provide a summary discussion of the rate change request, including the total requested increase in dollars, and specific reasons for each adjustment. Also provide a breakdown which identifies the revenue requirement value of the major items generating the requested rate change.
2. Identify the specific witnesses for all statements and schedules of revenues, expenses, taxes, cash flow, debt, debt coverage, property, valuation, etc., and provide direct testimony supporting the rate increase.
3. Provide a set of the following statements at Present Rates Income Statement, Cash Flow Statement, Debt Service Coverage schedule, and Balance Sheet showing columns for the following: Columns for each of the two years prior to the HTY, including book amounts for the base test year, a column for the HTY actuals, pro forma adjustments (between HTY and FTY, including the adjusted HTY for known and measurable changes twelve months beyond the book figures for the base test year), a column for FTY claims, pro forma adjustments between FTY and FPFTY, including twelve consecutive month period beginning with the first full month that new rates will be effect after the application of the full suspension period permitted under Section 1308(d) amounts, and a column for the FPFTY claim amounts. In each schedule, provide references in the pro forma adjustments column for each adjustment which ties to corresponding supporting schedule detailing and explaining each operating budget adjustment.
4. Provide a set of the following statements at Proposed Rates: Income Statement, Cash Flow Statement, Debt Service Coverage schedule, and Balance Sheet showing columns for the following: Columns for each of the two years prior to the HTY, the HTY actuals, pro forma adjustments between FTY and FPFTY claims, and FPFTY claim amounts. In each schedule provide references in the pro forma adjustments column for each adjustment which ties to corresponding supporting schedule detailing and explaining each operating budget adjustment.
5. Provide a schedule showing the number of customers by:
a. Tariff subdivision, whose bills will be increased.
b. Tariff subdivision, whose bills will be decreased.
6. Provide FERC and/or Commission orders or rulings applicable to the filing.
7. Provide a list of reports, data, or statements requested by and submitted to the Commission from one year prior to the HTY through the current date.
8. Submit a statement of past and anticipated changes, since the previous rate case, in major accounting procedures.
9. Provide an explanation of any differences between the basis or procedure used in allocations of revenues, expenses, depreciation, and taxes in the current rate case and that were used in the prior rate case. Also provide allocation of utility costs and allocation methods among affiliate companies.
10. Whenever major addition to plant or facilities are to be placed in operating service or removed from operating service, the utility shall so indicate in the summary of the filing. The supporting documentation shall indicate the effect of the plant addition or removal from service upon rate bases, revenue, expense, tax, income, and revenue requirement.
11. If the utility's present rates were established based upon data for a FPFTY, provide the following supplemental information:
a. The data for the HTY and the first year that new rates were in effect from the utility's last base rate case if the time periods for the data requested relative to the current base rate case do not include the HTY and first year under new rates from the utility's last base rate case.
b. A schedule listing the projected data used for operating revenue, operating expenses, depreciation, taxes, net income, and rate base in the FPFTY used to establish present rates and the actual data for those same rate-making components for the same test year.
c. Explain any differences in projections, techniques, and adjustments made for that prior base rate case as compared to the projections, techniques, and assumptions made relative to the current rate case.
d. Details of any reconciliations and adjustments made relative to the last base rate case. Explain whether (and now) they would be expected to be rolled into base rates in the current rate case or whether they are expected to be recovered in a surcharge or rider.
12. If more recent year-end information becomes available during the course of the rate case, supplement the filing with the most recent information.
B. Description of utility operations
1. Provide a corporate history (include the dates of original incorporation, subsequent mergers and/or acquisitions). Indicate all counties, cities, and other governmental subdivisions to which service is provided (including service areas outside this Commonwealth) and the total number of customers by customer class or billed units in the areas served.
2. Provide an overall system map, including and labeling all measuring and regulating stations, storage facilities, production facilities, transmission, and distribution facilities, by size, and all interconnections with other utilities and pipelines.
3. Attach a chart explaining utility's corporate relationship to its affiliates showing system structure.
4. Supply copies of the two most recent internal and independent audit reports, noting any exceptions and recommendations and disposition thereof.
5. Provide a working electronic copy in Microsoft Excel or similar electronic spreadsheet format (with all formulas intact) linking the amounts in the income statements, proof of revenue, expenses, cash flow statement, debt, and debt coverage schedules for the HTY, FTY and FPFTY.
6. Provide a working electronic copy in Microsoft Excel or similar electronic spreadsheet format (with all formulas intact) linking the cost of service study, the customer cost analysis, and supporting schedules for the FTY and FPFTY.
C. Rate Base
1. Provide a schedule showing the measures of value and the rates of return at the original cost. All claims made on this schedule should be cross-referenced to appropriate exhibits.
2. Construction Work In Progress (CWIP)—Provide an exhibit with a description of each project; a summary of all work orders; amount expended at the end of the HTY and the FTY and at the completion of the project; whether project will be funded by the Distribution System Improvement Charge (DSIC); and anticipated in-service dates. Include a list of items needed to complete each project subsequent to the date of filing. Indicate whether each project is revenue producing or non-revenue producing.
3. For a claim made for plant held for future use, supply the following:
a. A brief description of the plant or land site and its original cost.
b. Expected date of use for each item claimed.
c. Explain why it is necessary to acquire each item in advance of its date of use.
d. Date when each item was acquired.
e. Date when each item was placed in the plant held for future use account.
4. If a claim is made for materials and supplies or fuel inventory, provide a supporting schedule for each claim showing the most current actual 13 monthly balances and showing in the case of fuel inventory claims, the type of fuel, and location, as in station, and the quantity and price claimed.
5. If a claim is made for cash working capital, provide a supporting schedule setting forth the method and all data utilized to determine the cash working capital, requirement. If not provided in the support data, provide a lead-lag study of working capital, completed no more than 6 months prior to the rate increase filing.
6. If fuel stocks comprise part of the cash working capital claim, provide an exhibit showing the actual book balances, noting quantity and price for the fuel inventories by type of fuel, for the 13 months prior to the beginning of the HTY and for the HTY, the FTY, and the FPFTY, by location, station, etc. Explain the method of determining the claim if other than that described above.
7. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not previously mentioned, in the measures of value.
8. Provide schedules and data in support of the following working capital items:
a. Prepayments—list and identify all items.
b. Federal Excise Tax accrued or prepaid.
c. Federal Income Tax accrued or prepaid.
d. Pennsylvania State Income Tax accrued or prepaid.
e. Pennsylvania Gross Receipts Tax accrued or prepaid.
f. Pennsylvania Capital Stock Tax accrued or prepaid.
g. Pennsylvania Public Utility Realty Tax accrued or prepaid.
h. State sales tax accrued or prepaid.
i. Payroll taxes accrued or prepaid.
j. Any adjustments related to the above items for ratemaking purposes.
9. Provide detailed calculations showing the derivation of the tax liability offset against gross cash working capital requirements.
10. Supply an exhibit supporting the claim for cash working capital requirement based on the lead-lag method.
a. Pro forma expenses and revenues are to be used in lieu of book data for computing lead-lag days.
b. The utility must either include sales for resale and related expenses in revenues and in expenses or exclude from revenues and expenses. Explain procedures followed.
11. Indicate if amortized expenses have been removed from the lead-lag study. If so, provide documentation showing such removal. If not, provide a list of such amortization expenses included.
12. Identify the fund's availability arrangements or terms which the utility has with its banks with respect to deposits of customer checks. For example, does the utility have same day or next day access to funds deposited?
13. In reference to materials and supplies:
a. What method of inventory valuation was used to develop the claim for materials and supplies?
b. Does the utility use a material and supply model to calculate needed material and supply levels? If so, provide the model. Supply an illustrative example of how the monthly balances are derived.
c. Provide the actual monthly value for the inventory of materials and supplies for the HTY. Supply as of the end of the HTY, a 13-month average, by month, for the material and supply account.
d. Provide the monthly level of materials and supplies for one prior year, the HTY, the FTY, and the FPFTY.
14. For each projected plant addition to cost the greater of $100,000 or 0.5% of current rate base, included in the FPFTY, provide:
a. Description of the project.
b. Starting date of project.
c. Amount expended to date.
d. Percent of project currently complete.
e. Original budgeted cost broken down by allowance for funds used during construction (AFUDC) and non-AFUDC components.
f. Current budgeted cost broken by AFUDC and non-AFUDC components.
g. Reason for any change in budgeted cost.
h. Original estimated timeline and date(s) of completion and in service.
i. Current estimated timeline and date(s) of completion and in service.
j. Reason for any change in timeline and date(s) of completion and in service.
k. Anticipated retirement related to the plant addition.
l. The depreciation rate applicable.
m. Identify which projects are mandated by the Pennsylvania Department of Environmental Protection (PA DEP) or the Department Environmental Protection Agency (EPA) or other governmental entity.
15. Explain how the FTY and the FPFTY plant balances were projected and provide supporting workpapers and documentation.
16. Are all of the assets included in the plant-in-service claim used exclusively by the utility to provide jurisdictional service? If not, provide the estimated percentage that each shared asset is used by other entities or for non-jurisdictional service.
17. Identify all plant that will not be providing jurisdictional service and prepare a schedule listing those plant items identified by account. In addition, provide a narrative explaining the reason why such plant is not being used and the anticipated future disposition of the plant. If plant is used to provide more than one mode of jurisdictional service, so indicate.
18. Provide all workpapers and supporting documentation showing the derivation of the projected balances of contributions in aid of construction, customer and developer advances for construction and utility service line, and customer deposits for the FTY and the FPFTY.
19. Provide a schedule showing the HTY 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. Show pro forma for the FTY and the FPFTY.
D. Rate of Return (ROR)
1. Provide capitalization and capitalization ratios for the last 5-year period and projected through the FTY and the FPFTY (with short-term debt and without short-term debt) for the utility, parent, and consolidated system.
a. Provide most recent year-end interest coverage before and after taxes for the last 3 years and at the most current, including indenture and Securities and Exchange Commission (SEC) basis, for the company, parent, and consolidated system.
b. Provide most recent year-end preferred stock dividend coverages for the last 3 years and at most current date, including charter and SEC basis.
2. Provide most recent current quarterly financial report (utility and parent). As more recent quarterly information becomes available during the course of the rate case, supplement the filing with the most recent information.
3. Provide most recent Stockholder's Report (utility and parent).
4. Provide most current prospectus for the utility and the parent.
5. Supply projected capital requirements and sources of utility, parent, and consolidated system capital for the HTY, FTY, FPFTY, and each of the two years following the FPFTY.
6. Provide a schedule of debt and preferred stock of utility, parent, and consolidated system as of HTY year-end and most current date. Projected new issues, retirements, and other major changes from the comparable historical data should be clearly noted. The following details are required:
a. Date of issue.
b. Date of maturity.
c. Amount issued.
d. Amount outstanding.
e. Amount retired.
f. Amount required.
g. Gain or loss on reacquisition.
h. Coupon rate.
i. Discount or premium at issuance.
j. Issuance expenses.
k. Net proceeds.
l. Sinking fund requirements.
m. Effective interest rate.
n. Dividend rate.
o. Effective cost rate.
p. Total average weighted effective cost rate.
7. Provide details on utility or parent common stock offerings for the past 5 years to present as follows, including details of any planned issuance in the FTY and the FPFTY:
a. Date of prospectus.
b. Date of offering.
c. Record date.
d. Offering period including dates and number of days.
e. Amount and number of shares of offering.
f. Offering ratio, if rights offering.
g. Percent subscribed.
h. Offering price.
i. Gross proceeds per share.
j. Expenses per share.
k. Net proceeds per share in (i.) and (j.) above.
l. Market price per share.
1. At record date.
2. At offering date.
3. One month after close of offering.
m. Average market price during offering.
1. Price per share.
2. Rights per share-average value of rights.
n. Most current reported earnings per share at time of offering.
o. Most current reported dividends at time of offering.
8. Provide complete support for claimed common equity.
9. Provide schedules of comparative financial data and ratios for the HTY and two prior years, the FTY, and the FPFTY for the utility. Changes in Moody's/S&P ratings, noted on these schedules, shall be accompanied by the Moody's/S&P write-up of such changes, if available. The financial data and ratios shall be supplied for the utility's parent, where applicable, if not available for the utility. Show work and formulas.:
a. Earnings-price ratio (average).
b. Times interest earned ratio—pre- and post-tax basis.
c. Preferred stock dividend coverage ratio—post-tax basis.
d. Times fixed charges earned ratio—pre-tax basis.
e. Dividend payout ratio.
f. AFUDC as a percent of earnings available for common equity.
g. Construction work in progress as a percent of net utility plant.
h. Effective income tax rate.
i. Internal cash generations as a percent of total capital requirements.
j. Times fixed charges earned ratio-post-tax basis.
k. Earnings per share.
l. Dividend per share.
m. Average dividend yield (52-week high/low common stock price).
n. Average book value per share.
o. Average market price per share.
p. Market price-book value ratio.
q. Earnings-book value ratio (per-share basis, average book value).
10. Provide AFUDC charged by utility at the end of the HTY, projected for the end of the FTY, and projected for the end of the FPFTY.
11. Provide a schedule that shows how the AFUDC was determined, explain the method by which the amounts were calculated in each test year (HTY, FTY, and FPFTY), and indicate where each is reflected in the filing.
12. Provide the following information concerning bank notes payable for the actual per book HTY year:
a. Line of credit at each bank.
b. Average daily balances of notes payable to each bank, by name of bank.
c. Interest rate charged on each bank note (prime rate, formula).
d. Purpose of each bank note (for example, construction, fuel storage, working capital, debt retirement, etc.).
e. Prospective future need for this type of financing.
13. If a claim is made for a cost of debt that exceeds that shown in the preceding nominal cost schedule because of convertible features, sale with warrants, or any other reason, provide a full statement of the basis for each such claim.
14. If a claim is made for compensating bank balances, provide the following information:
a. Name and address of each bank.
b. Types of accounts with each bank—checking, savings, escrow, other services, and the like.
c. Average daily balance in each account.
d. Amount and percentage requirements for compensating bank balances at each bank.
e. Average daily compensating bank balance at each bank.
f. Documents from each bank explaining compensating bank balance requirements.
g. Interest earned on each type of account.
h. A calculation showing the average daily float for each bank.
15. Set forth amount of compensating bank balances required under each of the following rate case bases:
a. Annualized test year operations at pro forma present rates.
b. Operations under pro forma proposed rates.
16. Set forth provisions of utility's and parent's charter and indentures, if applicable, which describe coverage requirements, limits on proportions of types of capital outstanding, and restrictions on dividend payouts.
17. Attach copies of the summaries of the utility's projected revenues, expenses, and capital budgets for the FTY and the FPFTY.
18. Describe long-term debt reacquisition by issue by the utility and parent as follows:
a. Reacquisition by issue by year.
b. Total gain or loss on reacquisitions by issue by year.
c. Accounting for gain or loss for income tax and book purposes.
d. Proposed treatment of gain or loss on such reacquisition for ratemaking purposes.
19. Provide a schedule showing the major components of claimed capitalization, and the derivation of the weighted costs of capital for the rate case claim. This schedule shall include a descriptive statement concerning the major elements of changes in claimed capitalization, cost rates, and overall return from comparable historical data.
20. Provide a schedule in the same format as the schedule provided in 18 above, except for the omission of the descriptive statement, for the most immediate comparable annual historical period prior to the HTY and the two calendar years most immediately preceding the rate of return claim period. Regardless of whether the capitalization claimed on the schedule provided in 18 above, includes short-term debt, this schedule should reflect capital ratios with and without short-term debt.
21. Provide the capitalization data requested in 18 and 19 above, for the parent company and for the system—consolidated.
22. Supply copies of the following documents for the utility and, if applicable, its parent:
a. Most recent annual report to shareholders including any statistical supplements.
b. Most recent SEC form 10K.
c. All SEC form 10Q reports issued within the preceding 12 months of the date of submittal of the rate increase request.
23. Supply copies of the utility's balance sheets for each month for the HTY and the prior 2 years.
24. Provide the bond rating history for the utility and, if applicable, its parent from the major credit rating agencies for the most recent five years.
25. Provide copies of all bond ratings reports relating to the utility and, if applicable, its parent for the past 2 years.
26. Supply copies of all presentations and reports by the utility's and, if applicable, its parent's management and securities analysts made on behalf of the utility, or its parent if applicable, during the past 2 years, including presentations of financial projections.
27. Provide a listing of all securities issuances for the utility and, if applicable, its parent projected for the next 2 years. The response shall identify for each projected issuance the date, dollar amount, type of security, and effective cost rate.
28. Identify any plan by the utility to refinance high cost long-term debt or preferred stock.
29. If applicable, supply a listing of all common equity infusions from the parent to the utility during the HTY. Indicate any common equity infusions anticipated in the FTY and the FPFTY calculations. In each case, identify date and dollar amount.
30. If applicable, identify the utility's common dividend payments to its parent for each of the last 5 years.
31. Provide the most current year-by-year financial projections for the utility for the next 5 years. Also, indicate the date these projections were prepared, whether approved by management, and whether the projections have been submitted to bond rating agencies.
32. Provide the utility's 5-year construction budget. If the utility has a LTIIP or a DSIC rider, describe any variations between the LTIIP, the DSIC, and the construction budgets. Prepare a schedule indicating the sources of funding for projects included in the LTIIP.
33. Identify the utility's and, if applicable, its parent's capital structure targets (percentages of capital types) for the FTY and the FPFTY. Provide the complete basis for the capital structure targets. Provide a schedule showing targets and actuals for the HTY and prior two years.
34. For each month, of the most recent 24 months, supply the utility's:
a. Short-term debt balance.
b. Short-term debt interest rate.
c. Balance of construction work in progress.
d. Balance of construction work in progress which is eligible for AFUDC accrual.
35. Identify all debt, other than instruments traded in public markets, owed to all shareholders, corporate officers, or members of the board of directors, its affiliates, parent company, or subsidiaries.
36. Provide complete support for claimed common equity rate of return.
37. Provide a summary statement of all stock dividends, splits, or par value changes during the 2-year calendar period preceding the rate case filing.
38. Provide a schedule of utility or parent stock purchases or retirements during the 2-year calendar period preceding the rate case filing. Also provide the details of any planned purchases or retirements in the FTY and the FPFTY.
39. If a claim of the filing utility is based on utilization of the capital structure or capital costs of the parent company and consolidated system, state and support the reasons for such a claim.
40. List the amount of total cash (all cash accounts) on hand from balance sheets for the HTY, the FTY, and the FPFTY.
41. List details and sources of ''Other Property and Investment'', Temporary Cash Investments'' and ''Working Funds'' on the HTY-, the FTY-, and the FPFTY-year-end balance sheets.
E. Balance Sheet
1. Provide most current available Balance Sheet for the utility, its parent, and the system (consolidated).
2. Provide a comparative balance sheet for the HTY and the preceding year which corresponds with the HTY dates. Provide pro forma balance sheets for the FTY and the FPFTY using present rates and proposed rates.
3. Provide a detail of other physical property, investments in affiliated companies and other investments. Provide a schedule showing any anticipated changes for the FTY and the FPFTY.
4. Supply the amounts and purpose of special cash accounts of all types, such as:
a. Interest and dividend special deposits.
b. Working funds other than general operating cash accounts.
c. Other special cash accounts and amounts (e.g., temporary cash investments).
5. Describe the nature and/or origin and amounts of notes receivable, accounts receivable from affiliates, and any other receivables, other than customer accounts, which appear on the balance sheet. Identify receivables that are greater than 15% of total receivables and limit explanation to variances greater than $10,000.
6. Provide the amount of accumulated reserve for uncollectible accounts, method and rate of accrual, amounts accrued, and amounts written-off in each of the last three years, including the HTY.
7. Provide a list of prepayments and give an explanation of special prepayments.
8. Explain in detail any other significant (in amount, i.e., greater than 5% of total current assets) current assets listed on the balance sheet.
9. Explain in detail, including the amount and purpose, the deferred asset accounts that currently operate to affect or will at a later date affect the operating account supplying:
a. Origin of these accounts
b. Probable changes to this account in the near future.
c. Amortization of these accounts currently charged to operations or to be charged in the anticipated two years following the HTY.
d. Method of determining yearly amortization for the following accounts:
i. Temporary Facilities
ii. Miscellaneous Deferred Debits
iii. Research and Development
iv. Property Losses
v. Any other deferred accounts that affect operating results
10. Explain the nature of accounts payable to affiliates. Provide a breakdown by category.
11. Provide the following detail for each deferred credit on the HTY, FTY, and FPFTY balance sheet:
a. Origin of these accounts.
b. Account number.
c. Amount contained on the balance sheet.
d. Disposition policy, (e.g., amortization).
e. Probable changes to this account in the near future.
12. Provide details of other deferred credits as to their origin and disposition policy (e.g., amortization).
13. Supply the basis for injury and damages reserve and amortization shown on the HTY, FTY, and FPFTY balance sheets.
14. Provide details for any significant reserves, other than depreciation bad debt, injury and damages, appearing on HTY, FTY, or FPFTY balance sheets.
15. Provide an analysis of unappropriated retained earnings for the HTY and three preceding calendar years.
16. Describe the purpose of any advances made by the utility to its parent and describe all terms and conditions associated with such advances for the HTY and preceding two years including an estimate of future advances or repayments that are expected to occur in the FTY and the FPFTY.
F. Income Statement and Statement of Cash Flows
1. Provide most current available income statement for the utility, the parent, and the company as a whole (consolidated).
2. Prepare Summary Income Statements for the HTY, FTY, and FPFTY showing the following:
a. Column 1—Book recorded statement for each test year.
b. Column 2—Adjustments to annualize and normalize revenue and expenses under present rates.
c. Column 3—Income statement under present rates after adjustments in Column 2.
d. Column 4—Requested increase and corresponding changes with increase.
e. Column 5—Income statement under proposed rates.
f. Expenses may be summarized by the following expense classifications for purposes of this statement:
Operating Expenses (by category)
Depreciation
Amortization
Taxes
Other than Income Taxes
Federal Taxes
State Taxes
Deferred Federal
Deferred State
Income Tax Credits
Taxes Applicable to Other Income and Deductions
Other Credits and Charges, etc.
Interest Charges and all amortization of Premiums and/or Discounts and Expenses on Debt issues
Total Interest
g. Footnote each adjustment in any of the above statements with an explanation in sufficient clarifying detail.
3. Provide comparative operating statements for the FPFTY and the immediately preceding two years showing increases and decreases between the three periods. Revenues and expenses shall be summarized by the major account classifications for the applicable industries' Uniform System of Accounts (USoA). These statements should supply detailed explanation of causes of the major variances between the FPFTY and two preceding years detailed by account number. Major variances are greater than 15% of total variances and limit explanation to variances greater than $10,000.
4. If the schedule provided in item 3 is based upon budgeted data for a FTY, provide a schedule similar to that required in item 3 which is based upon actual data for the HTY.
5. Expenses shall be summarized by the USoA expense classifications for purposes of the income statement.
6. If a utility has separate operating divisions, an income statement must be shown for each division, plus an income statement for the utility as a whole.
7. Provide operating income claims under:
a. Present rates.
b. Pro forma present rates.
c. Pro forma proposed rates.
8. Provide rate of return on original cost under:
a. Present rates.
b. Pro forma present rates.
c. Pro forma proposed rates.
9. Provide a statement of cash flows under present rates that sets forth all cash inflows from customer rates, depreciation, deferred taxes, external financing, investment income, and all other sources of cash, and all cash outflows to pay for utility operations, administrative and general expenses, taxes, capital investments, dividends, and other uses of funds.
10. Provide a statement of cash flows under proposed fully projected future test year rates that sets forth all cash inflows from customer rates, depreciation, deferred taxes, external financing, investment income, and all other sources of cash, and all cash outflows to pay for utility operations, administrative and general expenses, taxes, capital investments, dividends, and other uses of funds.
G. Operating Revenues
1. Prepare a summary of operating revenues for the FPFTY, the FTY, and the HTY, providing the following information for each classification of customers:
a. Number of customers per class as of year-end;
b. Total utility sales volume in customary units;
c. Total utility revenues; and
d. Customers' penalties and miscellaneous revenues.
2. Provide a summary of operating revenues for the HTY and adjustments anticipated for the FTY and the FPFTY, providing the following information for each classification of customers and for customers' penalties and miscellaneous revenues:
a. Revenues;
b. Annualizing and normalizing adjustments to arrive at adjusted operating revenues for ratemaking;
c. Proposed increase in operating revenues;
d. Percent increase in operating revenues; and
e. Operating revenues under proposed rates.
3. State the manner in which revenues are being presented for ratemaking purposes and provide details using one of the following methods:
a. Accrued Revenues.
b. Billed Revenues.
c. Cash Revenues.
4. If revenue accruing entries are made on the books at the end of each fiscal period, give entries made accordingly at the end of the HTY and at the beginning of the FTY. State whether they are reversed for ratemaking purposes and the impact on the FPFTY.
5. State whether any adjustments have been made to expenses in order to present such expenses on a basis comparable to the manner in which revenues are presented in this proceeding (i.e., accrued, billed, or cash).
6. Provide a schedule of present and proposed tariff rates showing dollar change and percent of change by rate class. Prepare comparative schedule of monthly (or quarterly where applicable) billings at existing and at proposed rates to demonstrate the impact of proposed rates over a range of usages. Include an explanation of any rate re-structure and the reason therefore. Provide a copy of the proposed tariff or tariff supplement on a red line basis to identify any changes.
7. Provide detailed computations of the determination of accrued revenues as of the HTY year-end and year-end immediately preceding the HTY, together with a detailed explanation of the procedures and methods used in developing accrued revenues and the impact on the FTY and the FPFTY.
8. Provide a detailed breakdown of miscellaneous revenues for the HTY and the two years immediately preceding the HTY. For the HTY, provide a monthly breakdown and an explanation of monthly variances greater than 15%. Detail any anticipated variances in the FTY and the FPFTY.
9. Provide for the HTY and the current year-to-date, the monthly usage for each classification of customers. Provide projections into the FTY and the FPFTY.
10. Provide by customer classification for the HTY and for the 2 prior years the number of customers and usage, the projected number of customers, and the projected usage for the 2 subsequent years.
11. Provide for the HTY and the 2 prior years usage and billings for the ten largest customers at current rates. Provide the HTY, the FTY, and the FPFTY usage priced at proposed rates.
12. If applicable, provide for the HTY and the 2 prior years' usage and billings for the ten largest sales for resale customers if such sales are not included in sales to the ten largest customers requested in G.11, above. Provide projections for the FTY and the FPFTY.
13. Provide growth patterns of usage and customer numbers per rate class, using historical and projected data.
14. Provide, for the FPFTY, a schedule by tariff rates and by service classifications showing proposed increase and percent of increase.
15. If a utility is affiliated with another utility, explain the effects, if any, upon allocations factors used in the rate filing of current or recent rate increases allowed to the other utility segment (or segments) of the company.
16. Provide supporting data detailing curtailment adjustments, procedures, and policies.
17. Provide details of the utility's attempts to recover uncollectible and delinquent accounts.
18. Describe the procedures involved in determining whether forfeited discounts or penalties are applied customer billing.
19. Provide annualization of revenues as a result of rate changes occurring during the test year, at the level of operations as of end of the test year.
20. Provide a detailed billing analysis supporting present and proposed rates by customer classification and/or tariff rate schedule.
21. Provide a schedule showing sales from all customer classes by unit per month for the HTY and three preceding 12-month periods. Provide also the projections for the FTY and the FPFTY.
22. Provide the following statements and schedules. The schedules and statements for the HTY should be reconciled with the summary operating statement. The schedule should also show number of customers and unit of sales, and should provide number of customers by service classification at beginning and end of HTY. Provide also projections for the FTY and the FPFTY.
a. An operating revenues summary for the HTY and the year preceding showing the following:
i. For each major classification of customers
A. Units sold.
B. Dollar Revenues.
C. Forfeited Discounts (Total if not available classification).
D. Other and Miscellaneous revenues that are to be taken into the utility operating account along with their related costs and expenses.
ii. A detailed explanation of all annualizing and normalizing adjustments showing method utilized and amounts and rates used in calculation to arrive at adjustment.
iii. Segregate, from recorded revenues from the HTY and prior year, the amount of revenues that are contained therein, by appropriate revenue categories, from:
A. Fuel or energy Adjustment Surcharge
B. State Tax Surcharge
C. Any other surcharge being used to collect revenues.
D. Provide explanation whether any of the surcharges are not applicable to the utility's operations.
23. Provide details of sales for resale, based on periods five years before and projections for five years after the FPFTY. List customers, units sold or projected to be sold, revenues received or projected to be received, source of units sold, contracted or spot sales, whether sales are to affiliated companies, and any other pertinent information.
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1 The provisions of Section 53.53 were adopted September 2, 1977, 7 Pa.B. 2527; amended through March 29, 1985, effective for rate increase requests filed on and after July 1, 1985. Those utilities meeting the filing requirements in the new regulations were permitted, upon request, to file under the new regulations at an earlier date, 15 Pa.B. 1178; amended October 23, 1987, effective November 23, 1987, 17 Pa.B. 4221; corrected May 13, 1994, effective December 3, 1983, 24 Pa.B. 2533; amended May 20, 2005, effective May 21, 2005, 35 Pa.B. 3024.
2 Exhibit B is not at issue either as it refers to communications utilities, which are not affected by Act 11.
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