[27 Pa.B. 1027]
[Continued from previous Web Page] § 54.689. Deferred asset accounts.
The gas utility shall provide the amount and purpose of any significant (in amount) deferred asset accounts that currently operate to affect or will at a later date affect the operating account. The response should include:
(1) The origin of these accounts.
(2) The probable changes within 12 months of the test year.
(3) The amortization currently charged to operations or to be charged in the near future.
(4) The method of determining yearly amortization.
§ 54.690. Cash working capital.
If the claim for cash working capital is based on the lead/lag method, the following information should be included:
(1) The lead/lag study should be based on 12 months of data ending no more than 6 months prior to the rate increase filing.
(2) A copy of the supporting data and workpapers used to compute the lead/lags.
§ 54.691. Interest and preferred dividend offset.
Provide calculations showing the derivations of the interest and preferred dividend offset against gross cash working capital requirements.
GENERAL REQUIREMENTS § 54.701. General.
The gas utility shall:
(1) Corporate history. Provide a corporate history including the dates of original incorporation, subsequent mergers and acquisitions.
(2) Budgeting process. Supply a copy of any budget utilized as a basis for any test year claim, and explain the utility's budgeting process.
(3) Projected operating and capital budget. Supply summaries of the utility's projected operating and capital budgets for the 2-calendar years following the end of the test year.
(4) Income statement.
(i) Provide an income statement for the test year which reflects the following and update as additional actual results become available:
(A) Column 1--the book or budgeted statement of income for the test year.
(B) Column 2--a listing of the adjustments to amortize and normalize revenue and expenses under present rates, including the elimination of the surcharge revenues.
(C) Column 3--the adjusted income statement under present rates.
(D) Column 4--the requested revenue increase and additional expense increase related to the revenue increase.
(E) Column 5--the income statement at proposed rates after adjustments.
(ii) Provide a similar schedule which is based upon actual data for the 12-month period immediately prior to the test year, if the schedule provided in subparagraph (i) is based upon budgeted data for a future test year. Each adjustment, including those that relate to adjustment clauses or projected inflation, shall contain an explanation which sufficiently describes the method and rationale of the adjustment. Expenses shall be summarized by the following expense classifications for purposes of this statement:
Operating Expenses (by category)
Depreciation
Amortization
Taxes, other than income taxes
Total Operating Expense
Operating Income Before Taxes
Federal Taxes
State Taxes
Deferred Federal
Deferred State
Income Tax Credits
Other Credits
Other Credits and Charges, and the like.
Total Income Taxes
Net Utility Operating Income
Other Income and Deductions
Other Income
Other Income used in Tax Calculation
Other Income Deduction
Taxes Applicable to Other Income and Deductions
Income before Interest Charges
(5) Quarterly income statements. Provide copies of the utility's quarterly income statements for the historic test year and the preceding year through the most recent quarter available. Income statements for succeeding quarters shall be provided as they become available.
(6) Monthly income statements. Provide copies of the utility's monthly income statements, to the extent and in the manner prepared by the utility in its ordinary course of business, for the historic test year and the preceding year through the most recent month available. Income statements for succeeding months shall be provided as they become available.
(7) Reserve accruals and balances. Explain how the utility has treated reserve accruals and balances for ratemaking purposes and provide the requested level of any self-funded reserve accruals by type of item.
RATE OF RETURN § 54.721. Rate of return.
The gas utility shall supply copies of the following documents for the utility and, if applicable, its parent:
(1) Most recent Annual Report to shareholders (including any statistical supplements).
(2) Most recent Securities and Exchange Commission (SEC) Form 10K.
(3) The SEC Form 10Q reports issued within last year.
§ 54.722. Claimed capitalization.
(a) The gas utility shall 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.
(b) The gas utility shall provide a schedule in the same format as that provided in subsection (a), except for the omission of the descriptive statement, for the most immediate comparable annual historical period prior to the test year and the 2-calendar years most immediately preceding the rate of return claim period. Irrespective of whether the capitalization claimed on the schedule provided in subsection (a) includes short-term debt, the schedule provided for this item should reflect capital ratios with and without short-term debt.
§ 54.723. Embedded cost of long-term debt.
(a) The gas utility shall provide a schedule showing the calculation of embedded cost of long-term debt by issue, supporting the related rate case claim. The schedule shall contain the following information:
(1) The date of issue.
(2) The date of maturity.
(3) The amount issued.
(4) The amount outstanding.
(5) The amount retired.
(6) The amount reacquired.
(7) The gain or loss on reacquisition.
(8) The coupon rate.
(9) The discount or premium at issuance.
(10) The issuance expense.
(11) The net proceeds.
(12) The sinking fund requirements.
(13) The effective cost rate.
(14) The total average weighted effective cost rate. Projected new issues, retirements and other major changes from the comparable historic data should be clearly noted.
(b) If a claim made for a true or economic cost of debt exceeds that shown in the preceding nominal cost schedule because of convertible features, sale with warrants or for any other reason, a full statement of the basis for a claim should be provided.
§ 54.724. Bank notes payable.
The gas utility shall provide the following information for bank notes payable for the test year and for the latest comparable annual historical period prior to the test year:
(1) The line of credit at each bank.
(2) The average daily balances of notes to each bank, by name of bank.
(3) The interest rate charged on each bank note (Prime rate, formula rate or other).
(4) The purpose of each bank note (for example, construction, fuel storage, working capital, debt retirement).
§ 54.725. Short-term debt.
(a) For each month, of the most recent 24 months, please supply the utility's:
(1) Short-term debt balance.
(2) Short-term debt interest rate.
(3) Construction work in progress (CWIP).
(4) Balance of CWIP which is eligible for allowance for funds used during construction accrual.
§ 54.726. Long-term debt reacquisition.
The gas utility shall describe long-term debt reacquisition by issue by utility and Parent (past 5 years to present) as follows:
(1) The reacquisition by issue by year.
(2) The date on which the utility commenced amortization of the gain or loss.
(3) The total gain or loss on reacquisitions by issue by year.
(4) The accounting for gain or loss for income tax and book purposes.
(5) The proposed treatment of gain or loss on the reacquisition for ratemaking purposes.
(6) Any Commission decision addressing the treatment of gain or loss on the reacquisition for ratemaking purposes.
§ 54.727. Debt owed to shareholders.
The gas utility shall fully identify the debt (other than instruments traded in public markets) owed to the shareholders, corporate officers or members of the Board of Directors, its affiliates, parent utility or subsidiaries.
§ 54.728. Bond rating history.
(a) The gas utility shall provide the bond rating history for the utility and, if applicable, its parent from the major credit rating agencies for the last 5 years.
(b) The gas utility shall provide copies of the bond rating reports relating to the utility and, if applicable, its parent for the past 2 years.
§ 54.729. Refinancing of long-term debt.
The gas utility shall identify any plan by the utility to refinance high cost long-term debt or preferred stock.
§ 54.730. Calculation of embedded cost.
The gas utility shall provide a schedule showing the calculation of the embedded cost of preferred stock equity by issue, supporting the related rate case claim. The schedule shall contain the following information:
(1) The date of issue.
(2) The date of maturity.
(3) The amount issued.
(4) The amount outstanding.
(5) The amount retired.
(6) The amount reacquired.
(7) The gain or loss on reacquisition.
(8) The dividend rate.
(9) The discount or premium at issuance.
(10) The issuance expenses.
(11) The net proceeds.
(12) The sinking fund requirements.
(13) The effective cost rate.
(14) The total average weighted effective cost rate. Projected new issues, retirement and other major changes from the comparable historical data should be clearly noted.
§ 54.731. Claimed common equity rate of return.
The gas utility shall provide complete support for claimed common equity rate of return.
§ 54.732. Summary of stock dividends
The gas utility shall provide a summary of the stock dividends, splits or par value changes during the 2-calendar years preceding the rate case filing.
§ 54.733. Schedule of issuances of common stock.
The gas utility shall provide a schedule of the issuances of common stock, whether or not underwriters are used, for the most immediately available annual historical period and the 4-calendar years most immediately preceding the test year. Identify which issuances were related to mergers or acquisitions, and which were undertaken to fund facility investments in utility plant and equipment.
§ 54.734. Utility and parent utility stock offerings.
The gas utility shall describe the utility and parent utility stock offerings (past 5 years to present) as follows:
(1) The date of prospectus.
(2) The date of offering.
(3) The record date.
(4) The offering period--dates and numbers of days.
(5) The amount and number of shares offered.
(6) The offering ratio, if rights offering.
(7) The percent subscribed.
(8) The offering price.
(9) The gross proceeds per share.
(10) The expenses per share.
(11) The net proceeds per share (9 minus 10).
§ 54.735. Common equity infusions.
If applicable, supply a listing of the common equity infusions from the parent to the utility over the past 5 years. In each case, identify date and dollar amount.
§ 54.736. Common dividend payments.
If applicable, identify the utility's common dividend payments to its parent for each of the last 5 years.
§ 54.737. Projected securities issuances.
The gas utility shall provide a listing of the projected securities issuances for the utility (and, if applicable, the utility's parent) for the next 2 years. The response should identify for each projected issuance the date, dollar amount, type of security and effective cost rate.
§ 54.738. Outstanding shares of common stock.
The gas utility shall provide a schedule showing the percentage of the outstanding shares of common stock owned by each corporate officer and member of the board of directors.
§ 54.739. Financial data.
To the extent not provided elsewhere, supply financial data of utility or parent, or both, for the last 5 years. Include the following:
(1) The times interest earned ratio pre tax and post tax basis.
(2) The preferred stock dividend coverage ratio post tax basis.
(3) The times fixed charges earned ratio pre tax basis.
(4) The earnings per share.
(5) The dividend per share.
(6) The average dividend yield (52 week high/low common stock price).
(7) The average book value per share.
(8) The market price book value per share.
(9) The earnings book value ratio (per share basis, average book value.
(10) The dividend payout ratio.
(11) AFUDC as a percent of earnings available for common equity.
(12) The construction work in progress as a percent of net utility plant.
(13) The effective income tax rate.
(14) The internal cash generations as a percent of total capital requirements.
§ 54.740. Claim based on capital structure on capital costs.
(a) If a claim is based on the capital structure or capital costs of the parent utility and system consolidated, the reasons for this claim shall be fully stated and supported.
(b) Regardless of the claim made, the gas utility shall provide the capitalization data requested in § 54.722(a) (relating to claimed capitalization), using the same format as in § 54.722(a), for the parent utility and for the system consolidated.
§ 54.741. Balance sheet and income statement.
The gas utility shall provide the latest available balance sheet and income statement for the parent utility and system consolidated.
§ 54.742. Organizational chart.
(a) The gas utility shall provide an organizational chart explaining the filing utility's corporate relationship to its parent utility, affiliates and subsidiaries-- system structure.
(b) The gas utility shall provide names and titles of the corporate officers and board members of the entities identified in subsection (a).
§ 54.743. Quarterly operating and financial report.
The gas utility shall supply the latest available quarterly operating and financial report, annual report to the stockholders and prospectus for the utility and for the utility's parent, if the relationship exists.
§ 54.744. Projected capital requirements.
The gas utility shall supply projected capital requirements and sources of the filing utility, its parent and system consolidated for the test year and each of 3 comparable future years.
§ 54.745. Currently authorized returns on equity.
If applicable, provide the currently authorized returns on equity for each of the parent's utility subsidiaries of the same industry type as the utility. In each case identify the approximate date when the current return on equity was approved by the Commission.
§ 54.746. Capital structure.
The gas utility shall identify the utility's and, if applicable, its parent's capital structure targets (percentages of capital types). Provide the complete basis for the capital structure targets.
§ 54.747. Financial projections.
The gas utility shall provide the latest year-by-year financial projections for the utility for the next 5 years. Indicate the date these projections were prepared; whether approved by management; and whether the projections have been submitted to bond rating agencies. This information shall be treated in a confidential manner.
§ 54.748. Indentures/charter tests.
The gas utility shall state what coverage requirements or capital structure ratios are required in the most restrictive of applicable indentures/charter tests and how these measures have been computed.
§ 54.749. Securities analysts reports.
(a) The gas utility shall provide copies of the securities analysts reports relating to the utility or its parent, or both, issued within the past 2 years.
(b) Supply copies of the presentations by the utility's and, if applicable, its parent's management to securities analysts during the past 2 years. This would include presentations of financial projections.
COST OF SERVICE § 54.761. Cost of service stay.
(a) The gas utility shall provide a fully allocated customer class cost of Service Study showing the rate of return under the present and proposed tariffs for the customer classifications. The study should include a summary of the allocated measures of value, operating revenues, operating expenses and net return for each of the customer classifications (including end-user transportation service) at original cost.
(b) If the schedule provided in response to subsection (a), is based upon a future test year, provide a similar schedule which is based upon actual data for the 12-month period immediately preceding the test year.
(c) Provide testimony that describes the complete methodology of the cost of service study. The testimony should provide the reasoning and support for the allocation, functionalization and classification factors, a definition and description of the selected Cost of Service allocation methodology (that is, 3 day peak, peak and average), and a description of each customer category.
(d) Identify and provide supporting calculations and workpapers and any studies or other information relied upon to develop the allocation factors, and, as applicable, the functionalization and classification factors in the utility's cost for the allocation factors in the utility's cost of service study.
§ 54.762. Exhibits.
(a) The gas utility shall provide an exhibit for each customer classification showing the following data for the test year and the four previous years:
(1) The maximum coincident peak day demand, temperature, and throughput.
(2) The maximum coincident 3-day peak day demand, temperature, and throughput.
(3) The average monthly consumption in Mcf during the primary heating season (November-March).
(4) The average monthly consumption in Mcf during the nonheating season (April-October).
(5) The average daily consumption in Mcf for each 12-month period.
(6) The peak and average demand, temperature, and throughput.
(b) Provide the most recent design peak day study and supporting testimony. Identify the utility's design day planning criteria and the probability of design day occurrence. Include available documentation supporting the utility's claimed probability of occurrence.
§ 54.763. Cost analysis.
(a) The gas utility shall supply a detailed cost analysis showing each component and supporting calculations for the minimum charges (customer service charge) for the rate calculations
(b) The gas utility shall supply a detailed cost analysis showing each component and supporting calculations for demand charges for the tariffs which contain demand charges.
§ 54.764. Projected demands.
The gas utility shall submit the projected demands for the customer classes for both purchased and produced gas for the 4 years following the test year filing. Include stand by service customers.
§ 54.765. Allocation factors.
The gas utility shall if the utility is affiliated with another utility segment, such as a water or electric utility segment, explain the effects, if any, upon allocation factors used in the gas rate filing of current or recent increases allowed to the other utility segment of the utility.
§ 54.766. Supply and requirement schedules.
The gas utility shall provide supply and requirement schedules for the utility's 3 most recent annual peak days and for design day. The schedules should include deliveries by source and requirements by rate schedule. Identify sources and requirements for transportation customers separately. Also include the utility's daily sendout sheet for each peak day and applicable weather data.
§ 54.767. Daily sendout sheets.
The gas utility shall provide copies of the utility's daily sendout sheets for November through March of the most recent heating season.
§ 54.768. Load duration curve.
The gas utility shall provide a copy of the load duration curve used by the utility for capacity planning purposes. Please also identify the numerical data points shown for each day on the curve.
§ 54.769. Transportation customers.
(a) The gas utility shall provide the following for the utility's ten largest transportation customers during peak month of the most recent heating season:
(1) Actual consumption.
(2) Volume delivered to the utility on their behalf, if applicable.
(3) Daily nomination.
(b) The gas utility shall provide a summary identifying the salient features of each of the following. Salient features include contract party, effective term and applicable contract quantities (daily, annual, seasonal, and the like).
(1) Firm transportation agreements by type greater than one month in length. Indicate whether the capacity is available at the utility's citygate to meet design day requirements or is upstream capacity. Identify the downstream pipeline for each upstream arrangement.
(2) Firm storage, gathering and exchange agreements. Indicate if each agreement provides design day capacity at the citygate or requires separate transportation (identify) service to effectuate delivery. Include on-system storage and peak shaving facilities used by the utility and identify the ratcheting provisions applicable to the utility's contractual and on-system storage arrangements.
(c) For the most recent annual period available, please identify the applicable monthly volumes and revenues under each rate schedule which were:
(1) Sold under a negotiated or market-based rate.
(2) Transported under a negotiated or market-based rate.
(3) Transported at full margin transportation rates.
§ 54.770. Curtailment.
The gas utility shall provide the following for each curtailment during the last 3 years:
(1) The dates of curtailment.
(2) The type of curtailment (firm service, interruptible service, both).
(3) Whether curtailment was related to amount of capacity in the utility's system, other capacity or supply.
(4) The rate schedule that curtailed volumes would have been billed under.
(5) The curtailed volumes by rate schedule.
(6) The actual volumes moved by rate schedule
QUALITY OF SERVICE § 54.781. Quality of service.
(a) If the utility's claim includes expenses for the costs of complying with an Order or Consent Decree entered against the utility by the Department of Environmental Protection or the Environmental Protection Agency, provide a copy of the Order or Consent Decree.
(b) The gas utility shall provide a list of the formal complaints filed with the Commission relating to quality of service which were received during the 2 years preceding the filing. For each listed item, identify the nature of the dispute and detail any action taken by the utility in response to these complaints.
(c) The gas utility shall provide a discussion of the utility's policy on tracking and responding to customer complaints.
(d) The gas utility shall identify the number of service interruptions or outages of gas service during the 2 years preceding the filing. Provide the date and duration of the service outage, the cause of the outage if known and the number of customers affected by the outage.
[Pa.B. Doc. No. 97-303. Filed for public inspection February 28, 1997, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
