§ 53.53. Information to be furnished with proposed general rate increase filings in excess of $1 million.
(a) When a public utility, other than a canal, turnpike, tunnel, bridge or wharf company, files a tariff or tariff supplement seeking a general rate increase within the meaning of 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates), and the 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 indicated.
(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.
(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. ‘‘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.
(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.
Exhibit A
I. VALUATION
A. ALL UTILITIES
1. Provide a corporate history (include the dates of original incorporation, subsequent mergers and/or acquisitions). Indicate all counties and cities and other governmental subdivisions to which service is provided (including service areas outside the state), and the total population in the area served.
2. Provide a schedule showing the measures of value and the rates of return at the original cost and trended original cost measures of value at the spot, three-year and five-year average price levels. All claims made on this exhibit should be cross-referenced to appropriate exhibits. Provide a schedule similar to the one listed above, reflecting respondent’s final claim in its previous rate case.
3. Provide a description of the depreciation methods utilized in calculating annual depreciation amounts and depreciation reserves, together with a discussion of all factors which were considered in arriving at estimates of service life and dispersion by account. Provide dates of all field inspections and facilities visited.
4. Set forth, in exhibit form, charts depicting 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.
a. If any utility plant was excluded from the measures of value because it was deemed not to be ‘‘used and useful’’ in the public service, supply a detailed description of each item of property.
b. Provide the surviving original cost at test year end by vintage by account and include applicable depreciation reserves and annuities.
(i) 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 any construction work in progress claims (if applicable).
5. Provide a comparison of respondent’s calculated depreciation reserve v. book reserve by account at the end of the test year.
6. Supply a schedule by account and depreciable group showing the survivor curve and annual accrual rate estimated to be appropriate:
a. For the purposes of this filing.
b. For the purposes of the most recent rate increase filing prior to the current proceedings.
(i) Supply a comprehensive statement of any changes made in method of depreciation and in the selection of average service lives and dispersion.
7. 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:
a. Year installed.
b. Original cost—the total surviving cost associated with each installation year from all plant accounts.
c. Calculated depreciation reserve—the calculated depreciation reserve associated with each installation year from all plant accounts.
d. Depreciated original cost—(Column B minus Column C).
e. Total—cumulation year by year of the figures from Column D.
f. Column E divided by the total of the figure in Column D.
8. Provide a description of the trending methodology which was utilized. Identify all indexes which were used (include all backup workpapers) and the reasons particular indexes were chosen. If indexes were spliced, indicate which years were utilized in any splices. If indexes were composited, show all supporting calculations. Include any analysis made to ‘‘test’’ the applicability of any indexes.
a. Supply a comprehensive statement of any changes made in the selection of trend factors or in the methodology used in the current rate filing compared to the most recent previous rate filing.
9. Provide an exhibit indicating the spot trended original cost at test year end by vintage by account and include applicable depreciation reserves. Include totals by account for all other trended measures of value.
10. Supply an exhibit indicating the percentages of undepreciated original cost which were trended with the following indexes:
a. Boeckh
b. Handy-Whitman
c. Indexes developed from suppliers’ prices.
d. Indexes developed from company records and company price histories.
e. Construction equipment.
f. Government statistical releases.
11. Provide a table, showing the cumulative trended depreciated original cost (at the spot price level) 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:
a. Year installed.
b. Trended original cost (at the spot price level)—the total surviving cost associated with each installation year from all plant accounts.
c. Trended calculated depreciation reserve—the calculated depreciation reserve associated with each installation year from all plant accounts.
d. Depreciated trended original cost—(Column B minus Column C).
e. Total—cumulation year by year of the figures from Column D.
f. Column E divided by the total of the figures in Column D.
12. If a claim is made for construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail 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 on each project.
[These exhibits should be updated at the conclusion of these proceedings.]
13. If a claim is made for non-revenue producing construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail 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 on each project.
[These exhibits should be updated at the conclusion of these proceedings.]
14. If a claim is made for plant held for future use, supply the following:
a. A brief description of the plant or land site and its cost.
b. Expected date of use for each item claimed.
c. Explanation as to 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 plant held for future use.
15. If materials and supplies comprise part of the cash working capital claim, attach an exhibit showing the actual book balances for materials and supplies by month for the thirteen months prior to the end of the test year. Explain any abrupt changes in monthly balances.
[Explain method of determining claim if other than that described above.]
16. If fuel stocks comprise part of the cash working capital claim, provide an exhibit showing the actual book balances (quantity and price) for the fuel inventories by type of fuel for the thirteen months prior to the end of the test year by location, station, etc.
[Explain the method of determining claim if other than that described above.]
17. Regardless of whether a claim for net negative or positive salvage is made, attach an exhibit showing gross salvage, cost of removal, and net salvage for the test year and four previous years by account.
18. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not previously mentioned, in the measures of value.
B. [Reserved]
C. GAS UTILITIES ONLY, IN
ADDITION TO PROVIDING THE
INFORMATION REQUESTED IN ‘‘A.’’
HEREINABOVE:
1. Provide, with respect to the scope of operations of the utility, a description of all property, including an explanation of the system’s operation, and all plans for any significant future expansion, modification, or other alteration of facilities.
This description should include, but not be limited to the following:
a. If respondent has various gas service areas, indicate if they are integrated, such that the gas supply is available to all customers.
b. Provide all pertinent data regarding company policy related to the addition of new consumers in the company’s service area.
c. Explain how respondent obtains its gas supply, as follows:
(i) Explain how respondent stores or manufactures gas; if applicable.
(ii) State whether the company has peak shaving facilities.
(iii) Provide details of coal-gasification programs, if any.
(iv) Describe the potential for emergency purchases of gas.
(v) Provide the amount of gas in MCF supplied by various suppliers in the test year (include a copy of all contracts).
(vi) Provide the amount of gas in MCF supplied from company-owned wells during the test year.
d. Provide plans for future gas supply, as follows:
(i) Supply details of anticipated gas supply from respondent’s near-term development of gas wells, if any.
(ii) Provide gas supply agreements and well development ventures and identify the parties thereto.
e. Indicate any anticipated curtailments and explain the reasons for the curtailments.
f. Provide current data on any Federal Power Commission action or programs that may affect, or tend to affect, the natural gas supply to the gas utility.
2. Provide an overall system map, including and labeling all measuring and regulating stations, storage facilities, production facilities, transmission and distribution mains, by size, and all interconnections with other utilities and pipelines.
D. [Reserved]
E. [Reserved]
II. RATE OF RETURN
A. ALL UTILITIES
1. Provide capitalization and capitalization ratios for the last five-year period and projected through the next two years. (With short-term debt and without short-term debt.) (Company, Parent and System (consolidated)).
a. Provide year-end interest coverages before and after taxes for the last three years and at latest date. (Indenture and SEC Bases.) (Company, Parent and System (consolidated)).
b. Provide year-end preferred stock dividend coverages for last three years and at latest date (Charter and SEC bases).
2. Provide latest quarterly financial report (Company and Parent).
3. Provide latest Stockholder’s Report (Company and Parent).
4. Provide latest Prospectus (Company and Parent).
5. Supply projected capital requirements and sources of Company, Parent and System (consolidated) for each of future three years.
6. Provide a schedule of debt and preferred stock of Company, Parent and System (consolidated) as of test year-end and latest date, detailing for each issue (if applicable):
a. Date of issue
b. Date of maturity
c. Amount issued
d. Amount outstanding
e. Amount retired
f. Amount reacquired
g. Gain 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. Supply financial data of Company and/or Parent for last five years:
a. Earnings-price ratio (average)
b. Earnings-book value ratio (per share basis) (avg. book value)
c. Dividend yield (average)
d. Earnings per share (dollars)
e. Dividends per share (dollars)
f. Average book value per share yearly
g. Average yearly market price per share (monthly high-low basis)
h. Pre-tax funded debt interest coverage
i. Post-tax funded debt interest coverage
j. Market price-book value ratio
8. State amount of debt interest utilized for income tax calculations, and details of debt interest computations, under each of the following rate case bases:
a. Actual test year
b. Annualized test year-end
c. Proposed test year-end
9. State amount of debt interest utilized for income tax calculations which has been allocated from the debt interest of an affiliate, and details of the allocation, under each of the following rate case bases:
a. Actual test year
b. Annualized test year-end
c. Proposed test year-end
10. Under Section 1552 of the Internal Revenue Code and Regulations 1.1552-1 thereunder, if applicable, Parent Company, 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. (If this interrogatory is not applicable, so state.)
a. State what option has been chosen by the group.
b. 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.
c. 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.
d. Provide annual income tax return for group, and if income tax return shows net operating loss, provide details of amount of net operating loss allocated to the income tax returns of each of the members of the consolidated group.
11. Provide AFUDC charged by company at test year-end and latest date, and explain method by which rate was calculated.
12. Set forth provisions of Company’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.
13. Attach copies of the summaries of the projected 2 year’s Company’s budgets (revenue, expense and capital).
14. Describe long-term debt reacquisitions by Company and Parent as follows:
a. Reacquisitions by issue by year.
b. Total gain on reacquisitions by issue by year.
c. Accounting of gain for income tax and book purposes.
15. Set forth amount of compensating bank balances required under each of the following rate base bases:
a. Annualized test year operations.
b. Operations under proposed rates.
16. Provide the following information concerning compensating bank balance requirements for actual test year:
a. Name of each bank.
b. Address of each bank.
c. Types of accounts with each bank (checking, savings, escrow, other services, etc.).
d. Average Daily Balance in each account.
e. Amount and percentage requirements for compensating bank balance at each bank.
f. Average daily compensating bank balance at each bank.
g. Documents from each bank explaining compensating bank balance requirements.
h. Interest earned on each type of account.
17. Provide the following information concerning bank notes payable for actual test 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 rate or other).
d. Purpose of each bank note (e.g., construction, fuel storage, working capital, debt retirement).
e. Prospective future need for this type of financing.
18. Set forth amount of total cash (all cash accounts) on hand from balance sheets for last 24-calendar months preceding test year-end.
19. Submit details on Company or Parent common stock offerings (past 5 years to present) as follows:
a. Date of Prospectus
b. Date of offering
c. Record date
d. Offering period—dates and number of days
e. Amount and number of shares of offering
f. Offering ratio (if rights offering)
g. Per cent subscribed
h. Offering price
i. Gross proceeds per share
j. Expenses per share
k. Net proceeds per share (i-j)
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. Latest reported earnings per share at time of offering
o. Latest reported dividends at time of offering
20. Provide latest available balance sheet and income statement for Company, Parent and System (consolidated).
21. Provide Original Cost, Trended Original Cost and Fair Value rate base claims.
22. Provide Operating Income claims under:
(i) Present rates
(ii) Pro forma present rates (annualized & normalized)
(iii) Proposed rates (annualized & normalized)
b. Provide Rate of Return on Original Cost and Fair Value claims under:
(i) Present rates
(ii) Pro forma present rates
(iii) Proposed rates
23. List details and sources of ‘‘Other Property and Investment,’’ ‘‘Temporary Cash Investments’’ and ‘‘Working Funds’’ on test year-end balance sheet.
24. Attach chart explaining Company’s corporate relationship to its affiliates (System Structure).
25. If the utility plans to make a formal claim for a specific allowable rate of return, provide the following data in statement or exhibit form:
a. Claimed capitalization and capitalization ratios with supporting data.
b. Claimed cost of long-term debt with supporting data.
c. Claimed cost of short-term debt with supporting data.
d. Claimed cost of total debt with supporting data.
e. Claimed cost of preferred stock with supporting data.
f. Claimed cost of common equity with supporting data.
26. Provide the following income tax data:
a. Consolidated income tax adjustments, if applicable.
b. Interest for tax purposes (basis).
B. TELEPHONE UTILITIES ONLY, IN ADDITION
TO PROVIDING THE INFORMATION REQUESTED
IN ‘‘A.’’ HEREINABOVE, PROVIDE THE
FOLLOWING ADDITIONAL INFORMATION IF YOU
PROCURE MATERIALS, SUPPLIES, OR SERVICES
FROM A MANUFACTURING SUBSIDIARY:
1. Submit schedules on inter-company profits for last 7 years as follows:
a. Manufacturing subsidiaries’ sales to the company.
(i) Manufactured
(ii) Purchased
b. Manufacturing subsidiaries’ profit, before and after taxes, on such sales:
(i) Manufactured
(ii) Purchased
c. Income tax refunds to the Company due to such sales:
(i) Manufactured
(ii) Purchased
d. Breakdown as to amounts capitalized and expensed by Company with respect to such sales.
(i) Manufactured
(ii) Purchased
e. Detailed explanation of the income tax deferral on such sales, and how it was handled on the books of the Company and on the books of the Manufacturing Subsidiaries.
2. Submit schedules on inter-company profits for the last 7 years as follows:
a. Manufacturing subsidiaries’ income available for common equity, after debt interest:
(i) Manufactured
(ii) Purchased
b. Manufacturing subsidiaries’ year-end amounts of common equity:
(i) Manufactured
(ii) Purchased
c. Manufacturing subsidiaries’ rate of return on average of beginning and ending common equity amounts:
(i) Manufactured
(ii) Purchased
3. Provide the following:
a. Manufacturing subsidiares’ sales to:
(i) Other Parent Company operating telephone subsidiaries:
(a) Manufactured
(b) Purchased
b. Income Statement of Manufacturing Subsidiaries:
(i) Manufactured
(ii) Purchased
c. Balance Sheet of the Manufacturing Subsidiaries at year-end:
(i) Manufactured
(ii) Purchased
d. Net investment of Manufacturing Subsidiaries, and details of its computation:
(i) Manufactured
(ii) Purchased
e. Summary of total sales to each of the Operating Telephone Subsidiaries, showing amount of sales and profit ratios thereon by the following categories:
(i) Apparatus and Equipment
(a) Manufactured
(b) Purchased
(ii) Cable and Wire
(a) Manufactured
(b) Purchased
(iii) Supplies
(a) Manufactured
(b) Purchased
4. Submit the following data for affiliated companies which provided a service during the test year (directory, computer, management, or other):
a. Balance Sheet, detailing individual debt issues outstanding, preferred stock issues outstanding, and common equity for the test year.
b. Income statement, detailing debt interest, preferred stock dividends, and net income available for common equity for the test year.
c. Dollar total for each of the services provided during the test year.
5. Supply a copy of each of the service contracts, which define the contractual agreements as to revenues, expenses, and profits apportionments.
C. GAS UTILITIES ONLY, IN
ADDITION TO PROVIDING THE
INFORMATION REQUESTED IN ‘‘A.’’
HEREINABOVE:
1. Provide test year monthly balances for ‘‘Current Gas Storage’’ and notes financing such storage.
III. BALANCE SHEET AND OPERATING STATEMENT
A. ALL UTILITIES
BALANCE SHEET
1. Provide a comparative balance sheet for the test year and the preceding year which corresponds with the test year date.
2. Set forth the major items of Other Physical Property, Investments in Affiliated Companies and Other Investments.
3. 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 (Temporary cash investments).
4. Describe the nature and/or origin and amounts of notes receivable, accounts receivable from associated companies, and any other significant receivables, other than customer accounts, which appear on balance sheet.
5. Provide the amount of accumulated reserve for uncollectible accounts, method and rate of accrual, amounts accrued, and amounts written-off in each of last three years.
6. Provide a list of prepayments and give an explanation of special prepayments.
7. Explain in detail any other significant (in amount) current assets listed on balance sheet.
8. Explain in detail, including the amount and purpose, the deferred asset accounts that currently operate to effect or will at a later date effect 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 near future.
d. Method of determining yearly amortization for the following accounts:
—Temporary Facilities
—Miscellaneous Deferred Debits
—Research and Development
—Property Losses
—Any other deferred accounts that effect operating results.
9. Explain the nature of accounts payable to associated companies, and note amounts of significant items.
10. Provide details of other deferred credits as to their origin and disposition policy (e.g.—amortization).
11. Supply basis for Injury and Damages reserve and amortization thereof.
12. Provide details of any significant reserves, other than depreciation, bad debt, injury and damages, appearing on balance sheet.
13. Provide an analysis of unappropriated retained earnings for the test year and three preceding calendar years.
14. 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. Pa. State Income Tax accrued or prepaid
e. Pa. Gross Receipts Tax accrued or prepaid
f. Pa. Capital Stock Tax accrued or prepaid
g. Pa. Public Utility Realty Tax accrued or prepaid
h. State sales tax accrued or prepaid
i. Payroll taxes accrued or prepaid
j. Any adjustment related to the above items for ratemaking purposes.
Cash Working Capital15. Supply an exhibit supporting the claim for 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. Respondent must either include sales for resale and related expenses in revenues and in expenses or exclude from revenues and expenses. Explain procedures followed (exclude telephone).
16. Provide detailed calculations showing the derivation of the tax liability offset against gross cash working capital requirements.
INCOME STATEMENT
17. Prepare a Statement of Income for the various time frames of the rate proceeding including:
Col. 1—Book recorded statement for the test year.
2—Adjustments to book record to annualize and normalize under present rates.
3—Income statement under present rates after adjustment in Col. 2
4—Adjustment to Col. 3 for revenue increase requested.
5—Income statement under requested rates.
a. 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
Total Operating Expense
Operating Income Before Taxes
Federal Taxes
State Taxes
Deferred Federal
Deferred State
Income Tax Credits
Other Credits
Other Credits and Charges, etc.
Total Income Taxes
Net Utility Operating Income
Other Income & Deductions
Other Income
Detailed listing of Other Income used in Tax Calculation
Other Income Deduction
Detailed Listing
Taxes Applicable to Other Income and Deductions
Listing
Income Before Interest Charges
Listing of all types of Interest Charges and all amortization of Premiums and/or Discounts and Expenses on Debt issues
Total Interest
Net Income After Interest Charges
(Footnoteeach adjustment to the above statements with explanation in sufficient clarifying detail.)
18. Provide comparative operating statements for the test year and the immediately preceding 12 months showing increases and decreases between the two periods. These statements should supply detailed explanation of the causes of the major variances between the test year and preceding year by detailed account number.
Operating Expenses19. List extraordinary property losses as a separate item, not included in operating expenses or depreciation and amortization. Sufficient supporting data must be provided.
20. Supply detailed calculations of amortization of rate case expense, including supporting data for outside services rendered. Provide the items comprising the rate case expense claim (include the actual billings or invoices in support of each kind of rate case expense), the items comprising the actual expenses of prior rate cases and the unamortized balances.
21. Submit detailed computation of adjustments to operating expenses for salary, wage and fringe benefit increases (union and non-union merit, progression, promotion and general) granted during the test year and six months subsequent to the test year. Supply data showing for the test year:
a. Actual payroll expense (regular and overtime separately) by categories of operating expenses, i.e., maintenance, operating transmission, distribution, other.
b. Date, percentage increase, and annual amount of each general payroll increase during the test year.
c. Dates and annual amounts of merit increases or management salary adjustments.
d. Total annual payroll increases in the test year.
e. Proof that the actual payroll plus the increases equal the payroll expense claimed in the supporting data (by categories of expenses).
f. Detailed list of employe benefits and cost thereof for union and non-union personnel. Any specific benefits for executives and officers should also be included, and cost thereof.
g. Support the annualized pension cost figures.
(i) State whether these figures include any unfunded pension costs. Explain.
(ii) Provide latest actuarial study used for determining pension accrual rates.
h. Submit a schedule showing any deferred income and consultant fee to corporate officers or employees.
22. Supply an exhibit showing an analysis, by functional accounts, of the charges by affiliates (Service Corporations, etc.) for services rendered included in the operating expenses of the filing company for the test year and for the 12-month period ended prior to the test year:
a. Supply a copy of contracts, if applicable.
b. Explain the nature of the services provided.
c. Explain basis on which charges are made.
d. If charges allocated, identify allocation factors used.
e. Supply the components and amounts comprising the expense in this account.
f. Provide details of initial source of charge and reason thereof.
23. Describe costs relative to leasing equipment, computer rentals, and office space, including terms and conditions of the lease. State method for calculating monthly or annual payments.
24. Submit detailed calculations (or best estimates) of the cost resulting from major storm damage.
25. 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 prior two comparable years with respect to:
a. Public health and safety
b. Conservation of energy
c. Explanation of Billing Practices, Rates, etc.
d. Provision of factual and objective data programs in educational institutions
e. Other advertising programs
f. Total advertising expense
26. Provide a list of reports, data, or statements requested by and submitted to the Commission during and subsequent to the test year.
27. Prepare a detailed schedule for the test year showing types of social and service organization memberships paid for by the Company and the cost thereof.
28. Submit a schedule showing, by major components, the expenditures associated with Outside Services Employed, Regulatory Commission Expenses and Miscellaneous General Expenses, for the test year and prior two comparable years.
29. Submit details of information covering research and development expenditures, including major projects within the company and forecasted company programs.
30. Provide a detailed schedule of all charitable and civic contributions by recipient and amount for the test year.
31. Provide a detailed analysis of Special Services—Account 795.
32. Provide a detailed analysis of Miscellaneous General Expense—Account No. 801.
33. Provide a labor productivity schedule.
34. List and explain all non-recurring abnormal or extraordinary expenses incurred in the test year which will not be present in future years.
35. List and explain all 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. (e.g.—Non-yearly maintenance programs, etc.)
[Responses shall be submitted and identified as exhibits.]
36. Using the adjusted year’s expenses under present rates as a base, give detail necessary for clarification of all expense adjustments. Give clarifying detail for any such adjustments that occur due to changes in accounting procedure, such as charging a particular expense to a different account than was used previously. Explain any extraordinary declines in expense due to such change of account use.
37. Indicate the expenses that are recorded in the test year, which are due to the placement in operating service of major plant additions or the removal of major plant from operating service, and estimate the expense that will be incurred on a full-year’s operation.
38. Submit a statement of past and anticipated changes, since the previous rate case, in major accounting procedures.
39. Identify the specific witness for all statements and schedules of revenues, expenses, taxes, property, valuation, etc.
40. Adjustments which are estimated shall be fully supported by basic information reasonably necessary.
41. Submit a statement explaining the derivation of the amounts used for projecting future test year level of operations and submit appropriate schedules supporting the projected test year level of operations.
42. If a company has separate operating divisions, an income statement must be shown for each division, plus an income statement for company as a whole.
43. If a company’s business extends into different states or jurisdictions, then statements must be shown listing Pennsylvania jurisdictional data, other state data and federal data separately and jointly (Balance sheets and operating accounts).
44. Ratios, percentages, allocations and averages used in adjustments must be fully supported and identified as to source.
45. 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 used in the prior rate case.
46. Supply a copy of internal and independent audit reports of the test year and prior calendar year, noting any exceptions and recommendations and disposition thereof.
47. Submit a schedule showing rate of return on facilities allocated to serve wholesale customers.
Taxes, Other than Income Taxes48. Provide a copy of the latest capital stock tax report and the latest capital stock tax settlement.
49. Submit details of calculations for Taxes, Other than Income where a company is assessed taxes for doing business in another state, or on its property located in another state.
50. Provide a schedule of federal and Pennsylvania taxes, other than income taxes, calculated on the basis of test year per books, pro forma at present rates, and pro forma at proposed rates, to include the following categories:
a. social security
b. unemployment
c. capital stock
d. public utility realty
e. P.U.C. assessment
f. other property
g. any other appropriate categories
Income Taxes51. Submit a schedule showing for the last five years the income tax refunds, plus interest (net of taxes), received from the federal government due to prior years’ claims.
52. Provide detailed computations showing the deferred income taxes derived by using accelerated tax depreciation applicable to post-1969 utility property increases productive capacity, and ADR rates on property. (Separate between state and federal; also, rate used)
a. State whether tax depreciation is based on all 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.
b. Reconcile any difference between the deferred tax balance, as shown as a reduction to measures of value (rate base), and the deferred tax balance as shown on the balance sheet.
53. Submit a schedule showing a breakdown of the deferred income taxes by state and federal per books, pro-forma existing rates, and under proposed rates.
54. Submit a schedule showing a breakdown of accumulated investment tax credits (3 percent, 4 percent, 7 percent, 10 percent and 11 percent), together with details of methods used to write-off the unamortized balances.
55. Submit a schedule showing the adjustments for taxable net income per books (including below-the-line items) and pro-forma under existing rates, together with an explanation of any difference between the adjustments. Indicate charitable donations and contributions in the tax calculation for rate making purposes.
56. Submit detailed calculations supporting taxable income before state and federal income taxes where the income tax is subject to allocation due to operations in another state, or due to operation of other taxable utility or non-utility business, or by operating divisions or areas.
57. Submit detailed calculations showing the derivation of deferred income taxes for amortization of repair allowance if such policy is followed.
[Note: Submit additional schedules if the company has more than one ac- counting area.]
58. Furnish a breakdown of major items comprising prepaid and deferred income tax charges and other deferred income tax credits and reserves by accounting areas.
59. Provide details of the Federal Surtax Credit allocated to the Pennsylvania jurisdictional area, if applicable.
60. Explain the reason for the use of cost of removal of any retired plant figures in the income tax calculations.
61. Submit the corresponding data applicable to Pennsylvania Corporate Income Tax deferment.
a. Show the amounts of straight line tax depreciation and accelerated tax depreciation, the difference between which gave rise to the normalizing tax charged back to the test year operating statement.
b. Show normalization for both Federal and State Income Taxes.
c. Show tax rates used to calculate tax deferment amount.
62. Provide the accelerated tax depreciation and the book depreciation used to calculate test year deferrals in amounts segregated as follows:
For:
a. Property installed prior to 1970
b. Property installed subsequent to 1969 (indicate increasing capacity additions and nonincreasing capacity additions).
63. State whether all tax savings due to accelerated depreciation on property installed prior to 1970 have been passed through to income. (If not, explain).
64. Show any income tax loss/gain carryovers from previous years that may effect test year income taxes or future year income taxes. Show loss/gain carryovers by years of origin and amounts remaining by years at the end of the test year.
65. State whether the company eliminates any tax savings by the payment of actual interest on construction work in progress not in rate base claim.
If response is affirmative:
a. Set forth amount of construction claimed in this tax savings reduction. Explain the basis for this amount.
b. Explain the manner in which the debt portion of this construction is determined for purposes of the deferral calculations.
c. State the interest rate used to calculate interest on this construction debt portion, and the manner in which it is derived.
d. Provide details of calculation to determine tax saving reduction. State whether state taxes are increased to reflect the construction interest elimination.
66. Provide a detailed analysis of Taxes Accrued per books as of the test year date. Also supply the basis for the accrual and the amount of taxes accrued monthly.
67. For the test year as recorded on test year operating statement:
a. Supply the amount of federal income taxes actually paid.
b. Supply the amount of the federal income tax normalizing charge to tax expense due to excess of accelerated tax depreciation over book depreciation.
c. Supply the normalizing tax charge to federal income taxes for the 10% Job Development Credit during test year.
d. Provide the amount of the credit of federal income taxes due to the amortization or normalizing yearly debit to the reserve for the 10% Job Development Credit.
e. Provide the amount of the credit to federal income taxes for the normalizing of any 3% Investment Tax Credit Reserve that may remain on the utility books.
68. Provide the debit and credit in the test year to the Deferred Taxes due to Accelerated Depreciation for federal income tax, and provide the debit and credit for the Job Development Credits (whatever account) for test year.
69. Reconcile all data given in answers to questions on income taxes charged on the test year operating statement with regard to income taxes paid, income taxes charged because of normalization and credits due to yearly write-offs of past years’ income tax deferrals, and from normalization of investment tax and development credits. (Both state and federal income taxes.)
70. With respect to determination of income taxes, federal and state:
a. Show income tax results of the annualizing and normalizing adjustments to the test year record before any rate increase.
b. Show income taxes for the annualized and normalized test year.
c. Show income tax effect of the rate increase requested.
d. Show income taxes for the normalized and annualized test year after application of the full rate increase.
[It is imperative that continuity exists between the income tax calculations as recorded for the test year and the final income tax calculation under proposed rates. If the company has more than one accounting area, then additional separate worksheets must be provided in addition to those for total company.]
71. In adjusting the test year to an annualized year under present rates, explain any changes that may be due to book or tax depreciation change and to debits and credits to income tax expense due to accelerated depreciation, deferred taxes, job development credits, tax refunds or other items.
(The above refers only the adjustments going from recorded test year to annualized test year.)
B. [Reserved]
C. [Reserved]
D. [Reserved]
E. GAS UTILITIES, IN ADDITION TO
PROVIDING THE INFORMATION
REQUESTED IN ‘‘A.’’ HEREINABOVE:
Balance Sheet
1. If Unrecovered Fuel Cost policy is implemented, provide the following:
a. State manner in which amount of Unrecovered Fuel Cost on balance sheet at the end of the test year was determined, and the month in test year in which such fuel expense was actually incurred. Provide amount of adjustment made on the rate case operating account for test year-end unrecovered fuel cost. (If different than balance sheet amount, explain.)
b. Provide amount of Unrecovered Fuel Cost that appeared on the balance sheet at the opening date of the test year, and the manner in which it was determined. State whether this amount is in the test year operating account.
2. Provide details of items and amounts comprising the accounting entries for Deferred Fuel Cost at the beginning and end of the test year.
REVENUES
OPERATING REVENUES
3. Submit a schedule showing a reconciliation of test year MCF sales and line losses. List all amounts of gas purchased, manufactured and transported.
4. Provide detailed calculations substantiating the adjustment to revenues for annualization of changes in number of customers and annualization of changes in volume sold for all customers for the test year.
a. Break down changes in number of customers by rate schedules.
b. If an annualization adjustment for changes in customers and changes in volume sold is not submitted, please explain.
5. Submit a schedule showing the sources of gas supply associated with annualized MCF sales.
6. Supply, by classification, Operating Revenues—Miscellaneous for test year.
7. Provide details of respondent’s attempts to recover uncollectible and delinquent accounts.
8. Describe how the net billing and gross billing is determined. For example, if the net billing is based on the rate blocks plus FCA and STA, and the gross billing is determined by a percentage increase (1, 3 or 5 percent), then state whether the percentage increase is being applied to all three items of revenue—rate blocks plus FCA and STA.
9. Describe the procedures involved in determining whether forfeited discounts or penalties are applied to customer billing.
10. Provide annualization of revenues as a result of rate changes occuring during the test year, at the level of operations as of end of the test year.
11. Provide a detailed billing analysis supporting present and proposed rates by customer classification and/or tariff rate schedule.
12. Provide a schedule showing residential and commercial heating sales by unit (MCF) per month and degree days for the test year and three preceding twelve month periods.
13. Provide a schedule of present and proposed tariff rates showing dollar change and percent of change by block. Also, provide an explanation of any change in block structure and the reasons therefor.
14. Provide the following statements and schedules. The schedules and state ments for the test year portion should be reconciled with the summary operating statement.
a. An operating revenues summary for the test year and the year preceding the test year showing the following (Gas MCF):
(i) For each major classification of customers
(a) MCF sales
(b) Dollar Revenues
(c) Forfeited Discounts (Total if not available by 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 test year, the amount of revenues that are contained therein, by appropriate revenue categories, from:
(a) Fuel Adjustment Surcharge
(b) State Tax Surcharge
(c) Any other surcharge being used to collect revenues.
(d) Provide explanations if any of the surcharges are not applicable to respondent’s operations.
[The schedule should also show number of customers and unit of sales (Mcf), and should provide number of customers by service classification at beginning and end of test year.]
b. Provide details of sales for resale, based on periods five years before and projections for five years after the test year, and for the test year. List customers, Mcf sold, revenues received, source of Mcf sold (storage gas, pipeline gas, manufactured gas, natural or synthetic), contracted or spot sales, whether sales are to affiliated companies, and any other pertinent information.
15. State manner in which revenues are being presented for ratemaking purposes:
a. Accrued Revenues
b. Billed Revenues
c. Cash Revenues
Provide details of the method followed.16. If revenue accruing entries are made on the books at end of each fiscal period, give entries made accordingly at the end of the test year and at the beginning of the year. State whether they are reversed for ratemaking purposes.
17. 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).
18. If the utility has a Fuel Adjustment Clause:
a. State the base fuel cost per MCF chargeable against basic customers’ rates during the test year. If there was any change in this basic fuel charge during the test year, give details and explanation thereof.
b. State the amount in which the fuel adjustment clause cost per MCF exceeds the fuel cost per MCF charged in base rates at the end of the test year.
c. If fuel cost deferment is used at the end of the test year, give
(i) The amount of deferred fuel cost contained in the operating statement that was deferred from the 12-month operating period immediately preceding the test year.
(ii) The amount of deferred fuel cost that was removed from the test period and deferred to the period immediately following the test year.
d. State the amount of Fuel Adjustment Clause revenues credited to the test year operating account.
e. State the amount of fuel cost charged to the operating expense account in the test year which is the basis of Fuel Adjustment Clause billings to customers in that year. Provide summary details of this charge.
f. From the recorded test year operating account, remove the Fuel Adjustment Clause Revenues. Also remove from the test year recorded operating account the excess of fuel cost over base rate fuel charges, which is the basis for the Fuel Adjustment charges. Explain any difference between FAC Revenues and excess fuel costs. [The above is intended to limit the operating account to existing customers’ base rate revenues and expense deductions relative thereto].
19. Provide growth patterns of usage and customer numbers per rate class, using historical and projected data.
20. Provide, for test year only, a schedule by tariff rates and by service classifications showing proposed increase and percent of increase.
21. If a gas company is affiliated with another utility segment, such as a water or electric segment, explain the effects, if any, upon allocation factors used in the gas rate filing of current or recent rate increases allowed to the other utility segment (or segments) of the company.
22. Provide supporting data detailing curtailment adjustments, procedures and policies.
OPERATING EXPENSES
23. Submit a schedule showing fuel cost in excess of base compared to fuel cost recovery for the period two months prior to test year and the test year.
24. Supply a detailed analysis of Purchased Gas for the test year and the twelve month period prior to the test year.
25. Submit calculations supporting energy cost per MCF and operating ratio used to determine increase in costs other than production to serve additional load.
26. Submit detailed calculations for bulk gas transmission service costs under supply and/or interconnection agreements.
27. Submit a schedule for gas producing units retired or scheduled for retirement subsequent to the test year showing station, units, MCF capacity, hours of operation during test year, net output produced and cents/MCF of maintenance and fuel expenses.
28. Provide a statement explaining the details of firm gas purchase (long-term) contracts with affiliated and nonaffiliated utilities, including determination of costs, terms of contract, and other pertinent information.
29. Provide intrastate operations percentages by expense categories for two years prior to the test year.
30. Provide a schedule showing suppliers, MCF purchased, cost (small purchases from independent suppliers may be grouped); emergency purchases, listing same information; curtailments during the year; gas put into and taken out of storage; line loss, and any other gas input or output not in the ordinary course of business.
31. Provide a schedule showing the determination of the fuel costs included in the base cost of fuel.
32. Provide a schedule showing the calculation of any deferred fuel costs shown in Account 174. Also, explain the accounting, with supporting detail, for any associated income taxes.
33. Submit a schedule showing maintenance expenses, gross plant and the relation of maintenance expenses thereto as follows:
(i) Gas Production Maintenance Expenses per MCF production, per $1,000 MCF production, and per $1,000 of Gross Production Plant;
(ii) Transmission Maintenance Expenses per MMCF mile and per $1,000 of Gross Transmission Plant;
(iii) Distribution Maintenance Expenses per customer and per $1,000 of Gross Distribution Plant;
(iv) Storage Maintenance Expenses per MMCF of Storage Capacity and $1,000 of Gross Storage Plant. This schedule shall include three years prior to the test year, the test year and one year’s projection beyond the test year.
34. Prepare a 3-column schedule of expenses, as described below for the following periods (supply sub-accounts, if significant, to clarify basic accounts):
a. Column 1—Test Year
b. Column 2 and 3—The two previous years
Provide the annual recorded expense by accounts. (Identify all accounts used but not specifically listed below.)
PRODUCTION EXPENSES
MANUFACTURED GAS PRODUCTION
STEAM PRODUCTION
OPERATION
700 Operation supervision and engineering 701 Operation labor 702 Boiler fuel 703 Miscellaneous steam expenses 704 Steam transferred—Credit Total MAINTENANCE 705 Operation supervision and engineering 706 Maintenance of structures and improvements 707 Maintenance of boiler plant equipment 708 Maintenance of other steam production Plant Total Total Steam Production MANUFACTURED GAS PRODUCTION OPERATION 710 Operation supervision and engineering PRODUCTION LABOR AND EXPENSES 711 Steam expenses 712 Other power expenses 713 Coke oven expenses 714 Producer gas expenses 715 Water gas generating expenses 716 Oil gas generating expenses 717 Liquefied petroleum gas expenses 718 Other process production expenses Total GAS FUELS 719 Fuel under coke ovens 720 Producer gas fuel 721 Water gas generator fuel 722 Fuel for oil gas 723 Fuel for liquefied petroleum gas process 724 Other gas fuels Total GAS RAW MATERIALS 725 Coal carbonized in coke ovens 726 Oil for water gas 727 Oil for oil gas 728 Liquefied petroleum gas 729 Raw materials for other gas processes 730 Residuals expenses 731 Residuals produced—Credit 732 Purification expenses 733 Gas mixing expenses 734 Duplicate charges—Credit 735 Miscellaneous production expenses 736 Rents Total MAINTENANCE 740 Maintenance supervision and engineering 741 Maintenance of structures and improvements 742 Maintenance of production equipment Total Total Manufactured Gas Production
NATURAL GAS PRODUCTION
EXPENSES
NATURAL GAS PRODUCTION AND
GATHERING
OPERATION
750 Operation supervision and engineering 751 Production maps and records 752 Gas wells expenses 753 Field lines expenses 754 Field compressor station expenses 755 Field compressor station fuel and power 756 Field measuring and regulating station expenses 757 Purification expenses 758 Gas well royalties 759 Other expenses 760 Rents Total MAINTENANCE 761 Maintenance supervision and engineering 762 Maintenance of structures and improvements 763 Maintenance of producing gas wells 764 Maintenance of field lines 765 Maintenance of field compressor station equipment 766 Maintenance of field measuring and regulating station equipment 767 Maintenance of purification equipment 768 Maintenance of drilling and cleaning equipment 769 Maintenance of other equipment Total Total Natural Gas Production and Gathering PRODUCTS EXTRACTION OPERATION 770 Operation supervision and engineering 771 Operation labor 772 Gas shrinkage 773 Fuel 774 Power 775 Materials 776 Operation supplies and expenses 777 Gas processed by others 778 Royalties on products extracted 779 Marketing expenses 780 Products purchased for resale 781 Variation in products inventory 782 Extracted products used by the utility—Credit 783 Rents Total MAINTENANCE 784 Maintenance supervision and engineering 785 Maintenance of structures and improvements 786 Maintenance of extraction and refining equipment 787 Maintenance of pipe lines 788 Maintenance of extracted products storage equipment 789 Maintenance of compressor equipment 790 Maintenance of gas measuring and regulating equipment 791 Maintenance of other equipment Total Total Products Extraction EXPLORATION AND
DEVELOPMENT EXPENSESOPERATION 795 Delay rentals 796 Nonproductive well drilling 797 Abandoned leases 798 Other exploration Total Exploration and Development OTHER GAS SUPPLY EXPENSES OPERATION 800 Natural gas well head purchases 801 Natural gas field line purchases 802 Natural gas gasoline plant outlet purchases 803 Natural gas transmission line purchases 804 Natural gas city gate purchases 805 Other gas purchases 806 Exchange gas 807 Purchased gas expenses 808 Gas withdrawn from storage—Debit 809 Gas delivered to storage—Credit 810 Gas used for compressor station fuel—Credit 811 Gas used for other products extraction—Credit 812 Gas used for other utility operations—Credit 813 Other gas supply expenses Total Total Other Gas Supply Expenses Total Production Expenses UNDERGROUND STORAGE EXPENSES OPERATION 814 Operation supervision and engineering 815 Maps and records 816 Wells expenses 817 Lines expenses 818 Compressor station expenses 819 Compressor station fuel and power 820 Measuring and regulating station expenses 821 Purification expenses 822 Exploration and development 823 Gas losses 824 Other expenses 825 Storage wells royalties 826 Rents Total MAINTENANCE 830 Maintenance supervision and engineering 831 Maintenance of structures and improvements 832 Maintenance of reservoirs and wells 833 Maintenance of lines 834 Maintenance of compressor station equipment 835 Maintenance of measuring and regulating station equipment 836 Maintenance of purification equipment 837 Maintenance of other equipment Total Total Underground Storage Expenses OTHER STORAGE EXPENSES OPERATION 840 Operation supervision and engineering 841 Operation labor and expenses 842 Rents 842.1 Fuel 842.2 Power 842.3 Gas Losses Total MAINTENANCE 843 Maintenance supervision and engineering 844 Maintenance of structures and improvements 845 Maintenance of gas holders 846 Maintenance of purification equipment 847 Maintenance of liquefication equipment 848 Maintenance of vaporizing equipment 848.1 Maintenance of compressor equipment 848.2 Maintenance of measuring and regulating equipment 848.3 Maintenance of other equipment Total Total Other Storage Expenses TRANSMISSION EXPENSES OPERATION 850 Operation supervision and engineering 851 System control and load dispatching 852 Communications system expenses 853 Compressor station labor and expenses 854 Gas for compressor station fuel 855 Other fuel and power for compressor stations 856 Mains expenses 857 Measuring and regulating station expenses 858 Transmission and compression of gas by others 859 Other expenses 860 Rents Total MAINTENANCE 861 Maintenance supervision and engineering 862 Maintenance of structures and improvements 863 Maintenance of mains 864 Maintenance of compressor station equipment 865 Maintenance of measuring and regulating station equipment 866 Maintenance of communication equipment 867 Maintenance of other equipment Total Total Transmission Expenses DISTRIBUTION EXPENSES OPERATION 870 Operation supervision and engineering 871 Distribution load dispatching 872 Compressor station labor and expenses 873 Compressor station fuel and power 874 Mains and services expenses 875 Measuring and regulating station expenses—General 876 Measuring and regulating station expenses—Industrial 877 Measuring and regulating station expenses—City gate check stations 878 Meter and house regulator expenses 879 Customer installations expenses 880 Other expenses 881 Rents Total MAINTENANCE 885 Maintenance supervision and engineering 886 Maintenance of structures and improvements 887 Maintenance of mains 888 Maintenance of compressor station equipment 889 Maintenance of measuring and regulating station equipment—General 890 Maintenance of measuring and regulating station equipment—Industrial 891 Maintenance of measuring and regulating station equipment—City gate check station 892 Maintenance of services 893 Maintenance of meters and house regulators 894 Maintenance of other equipment Total Total Distribution Expenses CUSTOMER ACCOUNTS EXPENSES OPERATION 901 Supervision 902 Meter reading expenses 903 Customer records and collection expenses 904 Uncollectible accounts 905 Miscellaneous customer accounts expenses Total Customer Accounts Expenses CUSTOMER SERVICE EXPENSES OPERATION 909 Supervision 910 Customer assistance expenses 911 Informational advertising expenses 912 Miscellaneous customer service expenses Total Customer Service Expenses SALES PROMOTION EXPENSES OPERATION 915 Supervision 916 Demonstrating and selling expenses 917 Promotional advertising expenses 918 Miscellaneous sales promotion expenses Total Sales Promotion Expenses ADMINISTRATIVE AND
GENERAL EXPENSESOPERATION 920 Administrative and general salaries 921 Office supplies and expenses 922 Administrative expenses transferred—Credit 923 Outside service employed 924 Property insurance 925 Injuries and damages 926 Employe pensions and benefits 927 Franchise requirements 928 Regulatory commission expenses 929 Duplicate charges—Credit 930.1 Institutional or goodwill advertising expense 930.2 Miscellaneous general expense 931 Rents Total Administrative and General Expenses MAINTENANCE 932 Maintenance of general plant Total Administrative and General Expense Total Operation Expenses and Purchased Power Total Maintenance Expense Total Operation and Maintenance Expense
Taxes, Other Than Income Taxes
35. Submit a schedule showing the Gross Receipts Tax Base used in computing Pennsylvania Gross Receipts Tax Adjustment.
REVENUE AND EXPENSE
General Items
36. State the amount of gas, in mcf, obtained through various suppliers in past years.
37. In determining pro forma expense, exclude cost of gas adjustments applicable to fuel adjustment clause and exclude fuel adjustment clause revenues, so that the operating statement is on the basis of base rates only.
38. Identify company’s policy with respect to replacing customers lost through attrition.
39. Identify procedures developed to govern relationship between the respondent and potential customers—i.e., basically expansion, alternate energy requirements, availability of supply, availability of distribution facilities, ownership of metering and related facilities.
IV. RATE STRUCTURE
A. [Reserved]
B. GAS UTILITIES
Each gas utility shall submit the following simultaneously with any rate increase filing:
1. Provide a Cost of Service Study showing the rate of return under the present and proposed tariffs for all 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 at original cost and at the 5-year trended original cost.
a. (Reserved)
2. Provide a statement of testimony describing the complete methodology of the cost of service study.
3. Provide a complete description and back-up calculations for all allocation factors.
4. Provide an exhibit for each customer classification showing the following data for the test year and the four previous years:
a. The maximum coincident peak day demand.
b. The maximum coincident 3-day peak day demand.
c. The average monthly consumption in MCF during the Primary Heating Season (November-March).
d. The average monthly consumption in MCF during the Non-heating season (April-October).
e. The average daily consumption in MCF for each 12-month period.
5. Submit a Bill Frequency Analysis for each rate. The analysis should include the rate schedule and block interval, the number of bills at each interval, the cumulative number of bills at each interval, the Mcf or therms at each interval, the cumulative Mcf or therms at each interval, the accumulation of Mcf or therms passing through each interval, and the revenue at each interval for both the present rate and the proposed rates. The Analysis should show only those revenues collected from the basic tariff.
6. Supply copies of all present and proposed Gas Tariffs.
7. Supply a graph of present and proposed base rates on hyperbolic cross section paper.
8. Supply a map showing the Gas System Facilities and Gas Service Areas. The map should include transmission lines, distribution lines, other companies’ lines interconnecting with the interconnecting points clearly designated, major compressor stations, 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.
9. Supply a cost analysis supporting minimum charges for all rate schedules.
10. Supply a cost analysis supporting demand charges for all tariffs which contain demand charges.
11. Supply the net fuel clause adjustment by month for the test year.
12. Supply a tabulation of base rate bills for each rate schedule comparing the existing rates to proposed rates. The tabulation should show the dollar difference and the per cent increase or decrease.
13. Submit the projected demands for all customer classes for both purchased and produced gas for the three years following the test year filing.
14. Supply an exhibit showing the gas deliveries to each customer class for the most recent 24 month period. The exhibit should identify the source of the gas, such as ‘‘purchased’’ (pipeline), ‘‘production’’ (includes purchases from local producers), ‘‘storage withdrawal,’’ ‘‘propane/air,’’ and ‘‘unaccounted for.’’
C. [Reserved].
Exhibit B
I. VALUATION
A. ALL TELEPHONE UTILITIES
1. Provide a corporate history (include the dates of original incorporation, subsequent mergers and/or acquisitions). Indicate all counties and cities and other governmental subdivisions to which service is provided (including service areas outside the state), and the total customer accounts or access lines in areas served.
2. Provide a schedule showing the measures of value and the rates of return under present rates, pro forma at present rates, and at proposed rates on the original cost rate base. All claims made on this exhibit should be cross-referenced to appropriate exhibits. Provide a schedule similar to the one listed above, reflecting respondent’s final claim in its previous rate case.
3. Provide a description of the depreciation methods utilized in calculating annual depreciation amounts and depreciation reserves together with a discussion of factors which were considered in arriving at estimates of service life and dispersion by account. Provide dates of all field inspections and indicate facilities visited.
4. For each account where the retirement rate method of analysis is utilized, set forth, in exhibit form, charts depicting the original and estimated survivor curves and a tabular presentation of the original life table plotted on the chart.
a. If any utility plant included in the ‘‘plant in service’’ accounts is excluded from the measures of value because it is deemed not to be ‘‘used and useful’’ in the public service, supply a description of each item of property.
5. Provide the surviving original cost at test year end by vintage by account and include applicable depreciation reserves and annuities.
a. 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’ advance for construction, and anticipated retirements associated with any construction work in progress claims (if applicable).
6. Provide a comparison of respondent’s calculated depreciation reserve v. book reserve at the measure of value calculation date. Provide this comparison by depreciable group, if available.
7. Supply a schedule by account or by depreciable group showing the survivor curve or interim survivor curve and annual accrual rate estimated to be appropriate:
a. For the purposes of this filing.
b. For the purposes of the most recent rate increase filing prior to the current proceedings.
(i) Supply a comprehensive statement of any changes made in method of depreciation and major changes in the selection of average service lives and dispersion.
8. 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:
a. Year installed.
b. Original cost—the total surviving cost associated with each installation year from all plant accounts.
c. Calculated depreciation reserve—the calculated depreciation reserve associated with each installation year from all plant accounts.
d. Depreciated original cost—(Column b minus Column c).
e. Total—cumulation year by year of the figures from Column d.
f. Column e divided by the total of the figure in Column d.
9. If a claim is made for Construction Work-In-Progress (CWIP), supply the following on an historical basis:
a. A description of the project, including start and completion dates.
b. Amount expended at the end of the historical test year.
c. Authorized expenditure.
d. In service date (actual or anticipated).
e. Associated retirement of existing facilities, if any.
f. Updated information before the close of the record.
10. If a claim is made for plant held for future use, supply the following:
a. A description of the plant or land site and its cost.
b. Expected date of use for each item claimed.
c. Explanation as to 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 plant held for future use.
11. If a claim is made for materials and supplies, attach an exhibit showing the actual balances for materials and supplies by month for the thirteen months prior to the end of the historical test year. Explain any unusual changes in monthly balances. (Explain method of determining claim if other than already described.)
12. Regardless of whether or not a claim is made for net salvage, provide an exhibit showing gross salvage, cost of removal, and net salvage for the most recent five calendar years. All information should be shown by account whenever possible.
a. If a claim for net salvage is made on a basis other than the most recent five calendar years, provide, in addition, representative backup calculations (gross salvage, cost or removal, and net salvage should be shown separately). All information should be shown by account whenever possible.
13. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not previously mentioned, in the measures of value.
14. Provide, with respect to the scope of operations of the utility, a description of property, including an explanation of the system’s operation, and plans for any significant future expansion, modification, or other alteration of facilities.
15. Submit maps of any changes in individual exchange boundary and zone rate areas or mileage rate areas, as the case may be.
B. FOR THOSE TELEPHONE UTILITIES ELECTING TO FILE TRENDED MEASURES OF VALUE, PROVIDE, IN ADDITION TO THE INFORMATION REQUESTED IN I.A. ABOVE, THE FOLLOWING:1. Provide a schedule showing the rates of return under present rates, pro forma at present rates, and at proposed rates on the trended original cost rate base. Trended original cost should be computed at spot or one-year average, three-year average and five-year average price levels. All claims made on this exhibit should be cross-referenced to appropriate exhibits. Provide a schedule similar to the one listed above, reflecting respondent’s final claim in its previous rate case.
2. Provide a description of the trending methodology which was utilized. Identify all indexes which were used (include representative backup workpapers) and the reasons particular indexes were chosen.
a. Supply a comprehensive statement of major changes made in the selection of indexes or in the methodology used in the current rate filing as compared to the most recent previous rate filing.
3. Provide an exhibit indicating the spot or one year average trended original cost at the measure of value calculation date by vintage by account or functional property group and include applicable depreciation reserves. Include totals by account or appropriate group for all other trended measures of value. In the case of depreciable accounts for which depreciation is calculated at a more detailed level, it will be sufficient for the company to provide this data at the more detailed level. (To the extent that a future test year is utilized, provide historical data in the manner requested and provide projected data in a manner consistent with the projection.)
4. Supply an exhibit indicating the percentages of undepreciated original cost at historical test year end which were trended with the following indexes:
a. Boeckh
b. Handy-Whitman
c. Indexes developed from suppliers’ prices.
d. Indexes developed from company records and company price histories.
e. Construction equipment.
f. Governmental statistical releases.
g. Other.
5. Provide a table, showing the cumulative trended calculated depreciated original cost (at the spot or one year average price level) by year of installation for total depreciable utility plant in service at the measure of value calculation date, or as of an available date not more than one year prior to the historic test year, in the following form:
a. Year installed.
b. Trended original cost (at the spot or one year average price level)—the total surviving cost associated with each installation year from all plant accounts combined.
c. Trended calculated depreciation reserve—the calculated depreciation reserve associated with the trended original cost for each installation year from all plant accounts combined.
d. Calculated d depreciated trended original cost—(Column b minus Column c).
e. Cumulative calculated depreciated trended original cost—cumulation year by year of the figures from Column d.
f. Column e divided by the total of the figures in Column d.
II. RATE OF RETURN
Provide the following financial data for the five most recent calendar year periods:
a. Capitilization and capitalization ratios (Company and System consolidated) and projected data through the next two calendar years (Company and System consolidated, if available). (Show data with funded debt and short-term debt separately and excluding short-term debt.)
b. Interest coverages before and after taxes (as appropriate) (Indenture and SEC bases) and for the historical test year (Indenture basis), and for latest quarter (SEC basis). (Company and System consolidated.)
c. Fixed charge coverages and for the historical test year.
2. Provide latest public quarterly financial report (Company and System consolidated).
3. Provide latest Stockholder’s Annual Report (Company and System consolidated).
4. Provide latest Prospectus (Company and Parent).
5. Supply amounts, uses and sources of projected capital requirements for the Company for each of the three future calendar years.
6. Provide a schedule of debt and preferred stock of Company as of the end of the historical test year and at the latest available date, supporting the cost of debt claimed. (If the claimed cost is on a consolidated basis, provide the same data for the System consolidated.)
a. Date of issue
b. Date of maturity
c. Amount issued
d. Amount outstanding
e. Amount retired
f. Amount reacquired
g. Gain 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. If common stock securities are held by the public, supply the following financial data of Company and/or System consolidated for each of the five most recent calendar years:
a. Earnings-price ratio (average)
b. Earnings-book value ratio (per share basis) (avg. book value)
c. Dividend yield (average)
d. Earnings per share (dollars)
e. Dividends per share (dollars)
f. Average book value per share yearly
g. Average yearly market price per share (monthly high-low basis)
h. Pre-tax funded debt interest coverage
i. Post-tax funded debt interest coverage
j. Market price-book value ratio.
8. State amount of, and provide details of computation of, interest on debt utilized for income tax calculations, under each of the following rate case bases:
a. Unadjusted test year under present rates
b. Adjusted test year under present rates
c. Adjusted test year under proposed rates
9. Under section 1552 of the Internal Revenue Code and Regulations 1.1552-1 thereunder, the common Parent Company, in filing a consolidated income tax return 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 earnings and profits. (If this is not applicable, so state.)
a. State what option has been chosen by the group
b. Provide a schedule which includes the taxable income or loss of each member of the group and the tax liability that has been allocated to each of the participating members in the consolidated income tax return for the latest calendar year for which the consolidated tax return has been filed and the preceding four years.
c. 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 for the latest calendar year for which the consolidated tax return has been filed. Provide total amounts of actual payments to the tax depository for the tax year, as computed on the basis of separate returns of members.
d. Provide the summary report (I.R.S. Form 1120) of the most recent annual income tax return for group, and if income tax return shows net operating loss, provide details of amount of net operating loss allocated to the income tax returns of each of the members of the consolidated group.
10. Provide AFUDC rate charged by company during the test year and explain method used to determine the rate.
11. Set forth provisions of Company’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.
12. Provide summaries of the Company’s revenue and expense budgets for the two calendar years subsequent to the historical test year.
13. Describe the Company’s accounting treatment for gains or losses for income tax and book purposes on reacquisitions of intermediate or long-term debt and preferred stock and provide the additional information requested below:
a. Reacquisitions by issue by year.
b. Total gain on reacquisitions by issue by year.
14. Provide the following information concerning compensating bank balance requirements for the historical test year:
a. Name of each bank
b. Address of each bank
c. Types of accounts with each bank (checking, savings, escrow, other services, etc.)
d. Average daily or monthly, as appropriate, balance in each account
e. Amount and percentage requirements for compensating bank balance at each bank
f. Average minimum compensating bank balance required at each bank
g. Documents from each bank explaining compensating bank balance requirements
h. Interest earned on each type of account (where applicable).
15. Provide the following information concerning short-term debt (e.g., bank notes payable) for the historical test year:
a. Line of Credit at each bank or other institution
b. Average daily or monthly, as appropriate, balances of notes payable to each bank or other institution
c. Interest rate charged on each note payable (Prime rate, formula rate, or other)
d. Purpose of each note payable (e.g., construction, working capital, debt retirement)
e. Prospective future need for this type of financing.
16. Submit details on Company and/or Parent public offerings of common stock (past five years to present) as follows:
a. Date of Prospectus
b. Date of offering
c. Record date
d. Offering period—dates and number of days
e. Amount and number of shares of offering
f. Offering ratio (if rights offering)
g. Per cent subscribed
h. Offering price
i. Gross proceeds per share
j. Expenses per share
k. Net proceeds per share (i-j)
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. Latest reported earnings per share at time of offering
o. Latest reported dividends at time of offering.
17. Provide latest available balance sheet and income statement for Company and System consolidated.
18. Provide Rate of Return on Original Cost and Fair Value (if claimed) for:
a. Unadjusted test year under present rates
b. Adjusted test year under present rates
c. Adjusted test year under proposed rates.
19. Attach chart explaining Company’s corporate relationship to its affiliates (System Structure).
20. If the Company plans to make a formal claim for a specific allowable rate of return, provide the following data in statement or exhibit form:
a. Claimed capitalization and capitalization ratios
b. Claimed cost of long-term debt with supporting data
c. Claimed cost of short-term debt with supporting data
d. Claimed cost of total debt with supporting data
e. Claimed cost of preferred stock with supporting data
f. Claimed cost of common equity with supporting data.
21. Provide the following income tax data:
a. Consolidated income tax adjustments, if applicable
b. Interest for tax purposes (basis for the claim.)
22. Submit schedules on inter-company profits within the corporate system for the last three calendar years as follows:
a. Manufacturing and/or supply affiliates’ sales to the company
b. Manufacturing and/or supply affiliates’ profit before and after taxes, on such sales
c. Income tax refunds to the Company due to such sales
d. Breakdown as to amounts capitalized and expensed by Company with respect to such sales
e. Detailed explanation of the income tax deferral on such sales, and how it is handled on the books of the Company, and on the books of the manufacturing and/or supply affiliates.
23. Submit schedules on inter-company profits for the last 3 calendar years as follows, to the extent the data are available:
a. Manufacturing and/or supply affiliates’ income available for common equity, after debt interest, but before income taxes
b. Manufacturing and/or supply affiliates’ average amount of common equity
c. Manufacturing and/or supply affiliates’ rate of return on average common equity
d. Manufacturing and/or supply affiliates’ rate of return on average net investment.
24. Provide the following for the latest available calendar year:
a. Manufacturing and/or supply affiliates’ sales to:
(i) Other Parent Company operating telephone subsidiaries
b. Income statement of manufacturing and/or supply affiliates.
c. Balance Sheet of manufacturing and/or supply affiliates at year end
d. Net investment of manufacturing and/or supply affiliates and details of its computation.
e. Latest annual and quarterly reports of manufacturing and/or supply affiliates.
f. Summary of total sales of manufacturing and/or supply affiliates to each of the operating telephone subsidiaries, showing amount of sales and profit ratios thereon by the following categories:
(i) Apparatus and Equipment
(ii) Cable and Wire
(iii) Supplies
g. Price comparison analyses comparing the prices of manufacturing and/or supply affiliates with the prices of other manufacturers and/or suppliers for each of the categories in (f) above.
25. Submit the following data for service affiliates (directory, computer, management, or other) during the test year:
a. Balance Sheet, detailing individual debt issues outstanding, preferred stock issues outstanding, and common equity for the latest available calendar year.
b. Income statement, detailing debt interest expense, preferred stock dividends, and net income available for common equity for the latest available calendar year.
c. Dollar total for each of the services provided during the latest available calendar year.
d. Latest annual and quarterly reports.
26. Supply a copy of each of the service contracts which define the contractual agreements as to revenues, expenses and profits apportionments.
III. BALANCE SHEET AND OPERATING STATEMENT
The responses to the items contained in Section III shall be provided for the historical test year claimed by the telephone utility. If, however, the telephone utility elects to file on a future test year basis, the additional data relative to that claim must be provided in response to the following requests.
BALANCE SHEET1. Provide a comparative balance sheet for the test year and the preceding year which corresponds with the date at the test year end.
2. Provide a list of the major items of Other Physical Property, Investments in Affiliated Companies and Other Investments.
3. Provide a list of and an explanation 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 (Temporary cash investments).
4. Describe the nature and/or origin and amounts of notes receivable, accounts receivable from associated companies, and any other significant receivables, other than customer accounts, which appear on balance sheet.
5. Provide the amount of accumulated reserve for uncollectible accounts, method and rate of accrual, amounts accrued and amounts written-off for the test year and two previous years.
6. Provide a list of and an explanation of prepayments.
7. Provide a list of and an explanation of any other major (in terms of amount of dollars) current assets listed on balance sheet.
8. Provide a list of and an explanation of 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. Balance in account at the end of the test year
c. Probably changes to these accounts in the near future
d. Amortization of these accounts currently charged to operations or to be charged in the near future
e. Method of determining yearly amortization for the following accounts:
—Temporary Facilities
—Miscellaneous Deferred Debits
—Research and Development
—Property Losses
—Any other deferred accounts that affect operating results.
9. Explain the nature of accounts payable to associated companies, and note amounts of significant items.
10. Provide details of other deferred credits as to their origin and disposition policy (e.g.—amortization).
11. Supply basis for Injury and Damages reserve and amortization.
12. Provide details of any significant reserves, other than depreciation, bad debt, or injury and damages, appearing on balance sheet.
13. Provide an analysis of retained earnings for the test year and the two preceding years.
Cash Working Capital14. Supply an exhibit supporting the claim for 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. Settlements amounts with other communication companies should be treated as both revenues and expenses when developing lead and lag days.
15. 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. Pa. State Income Tax accrued or prepaid
e. Pa. Gross Receipts Tax accrued or prepaid
f. Pa. Capital Stock Tax accrued or prepaid
g. Pa. Public Utility Realty Tax accrued or prepaid
h. State sales tax accrued or prepaid
i. Payroll taxes accrued or prepaid
j. Interest on funded debt and other debt accrued or prepaid
k. Average customer deposits and annual interest thereon.
l. Any pro forma adjustment related to the above items under proposed rates.
16. Provide detailed calculations showing the derivation of the tax liability offset against gross cash working capital requirements.
INCOME STATEMENT
17. Prepare a Statement of Income and supporting adjustments for the various time frames of the rate proceeding including:
Col. 1—Unadjusted income statement for the test year.
2—Adjustments made to annualize and normalize unadjusted revenues, expenses and taxes under proposed rates.
3—Income statement under present rates after adjustment in Col. 2.
4—Adjustment to reflect the revenue increase requested.
5—Income statement under requested rates.
a. 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
Total Operating Expense
Operating Income Before Taxes
Federal Taxes
State Taxes
Deferred Federal
Deferred State
Income Tax Credits
Other Credits
Other Credits and Charges, etc.
Total Income Taxes
Net Utility Operating Income
Other Income & Deductions
Other Income
Detailed listing of Other Income used in Tax
Calculation
Other Income Deduction
Detailed Listing
Taxes Applicable to Other Income and Deductions
Listing
Income Before Interest Charges
Listing of all types of Interest Charges and all amortization of Premiums and/or Discounts and Expenses on Debt issues
Total Interest
Net Income After Interest Charges
b. Submit a statement explaining the derivation of the amounts used for projecting future test year level of operations and submit appropriate schedules supporting the projected test year level of operations.
c. Adjustments which are estimated shall be fully supported by basic information reasonably necessary.
d. Ratios, percentages, allocations and averages used in adjustments must be fully supported and identified as to source.
e. List all and explain significant non-recurring abnormal or extraordinary expenses incurred in the test year which will not be present in future years.
f. List all and explain major 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. (e.g.—Non-yearly maintenance programs, etc.)
18. Provide clarifying detail for any expense adjustments listed in Item 17 above that are due to changes in accounting procedure, such as charging a particular expense to a different account than was used previously. Explain any extraordinary declines in expenses due to such change of account use.
19. Provide comparative operating statements for the test year and the immediately preceding 12 months showing increases and decreases between the two periods. These statements should supply detailed explanation of the causes of the major variances between the test year and preceding year by detailed account number.
Operating Expenses20. Prepare a 3-column schedule of operating expenses, as described below, for the following periods:
a. Columns 1 and 2—list two prior years relative to the test year period.
b. Column 3—Test Year
(Supply sub-accounts, if significant, to clarify basic accounts.)
MAINTENANCE EXPENSES
602.1 Repairs of pole lines 602.2 Repairs of aerial cable 602.3 Repairs of underground cable 602.4 Repairs of buried cable 602.5 Repairs of submarine cable 602.6 Repairs of aerial wire 602.7 Repairs of underground conduit 602.8 Shop repairs and salvage adjustments 602 Subtotal—Repairs of outside plant 603 Test desk work 604 Repairs of central office equipment 605 Repairs of station equipment 606 Repairs of buildings and grounds 610 Maintaining transmission power 611 Employment stabilization 612 Other maintenance expenses Total TRAFFIC EXPENSES 621 General traffic supervision 622 Service inspection and customer instruction 624 Operators’ wages 626 Rest and lunchrooms 627 Operators’ employment and training 629 Central office stationery and printing 630 Central office house service 631 Miscellaneous central office expense 632 Public telephone expenses 633 Other traffic expenses 634 Joint traffic expenses—Dr. 635 Joint traffic expenses—Cr. Total COMMERCIAL EXPENSES 640 General commercial administration 642 Advertising 643 Sales expense 644 Connecting company relations 645 Local commercial operations 648 Public telephone commissions 649 Directory expenses 650 Other commercial expenses Total GENERAL OFFICE SALARIES AND EXPENSES 661 Executive department 662 Accounting department 663 Treasury department 664 Law department 665 Other general office salaries and expenses Total OTHER OPERATING EXPENSES 668 Insurance 669 Accidents and damages 671 Operating rents 672 Relief and pensions 673 Telephone franchise requirements 674 General services and licenses 675 Other expenses 676 Telephone franchise requirements—Cr. 677 Expenses charged construction—Cr. Total
21. List extraordinary property losses included in operating expenses or depreciation and amortization as a separate item. Sufficient supporting data must be provided.
22. Supply detailed calculations of amortization of rate case expense, including supporting data for outside services rendered. Provide the items comprising the rate case expense claim, the items comprising the actual expenses of prior rate cases and any unamortized balances.
23. Submit detailed computation of adjustments to operating expenses for salary, wage and fringe benefit increases (nonmanagement and management) granted or planned to become effective during the test year. Supply data for the historical test year and for the future test year, as available:
a. Total annualized payroll increases included in the test year broken down between amounts capitalized and amounts expensed.
b. Total annualized payroll expense increase claimed in the test year by categories of operating expense, i.e., maintenance, operating transmission, distribution and the like.
c. For each payroll increase included in the test year supply the following:
i. Nature of payroll increase
ii. Effective date of payroll increase
iii. Average percentage increase
iv. Annualized increase in payroll amount
v. Annualized increase in payroll expense
d. For each wage increase provide the increase to wage related cost added to annualized wages. Itemize the amounts between overtime, social security taxes, Pension and death benefits, company contributed savings, group life insurance, and any other. Any benefits included in these amounts paid to officers only should be itemized separately.
e. State whether the pension cost figures include any unfunded pension cost. Explain.
f. If any of the amount claimed in the test year for annualized payroll increase includes deferred income and/or consultant fees to corporate officers or employes, submit a schedule listing the amounts.
24. Supply an exhibit showing an analysis if the charges by service affiliates for services rendered included in the operating expenses of the filing company for the test year and for the 12-month period ending prior to the test year:
a. Supply a copy of contracts, if applicable.
b. Explain the nature of the services provided.
c. Explain basis on which charges are made.
d. If charges allocated, identify allocation factors used.
e. Supply the components and amounts comprising the expense in this account.
25. Describe costs relative to leasing equipment, computer rentals, and office space, including terms and conditions of the lease. State method for calculating monthly or annual payment.
26. Submit detailed calculations (or best estimates) of the cost resulting from major storm damage.
27. Provide a schedule of advertising expense for the classifications and for the media categories as specified in the Uniform System of Accounts for the test year and the two prior comparable years.
28. Prepare a detailed schedule for the test year showing types of social and service organization memberships paid for by the Company and the cost thereof.
29. Submit a schedule showing the major expenditures associated with Outside Services Employed and Regulatory Commission Expenses, for the test year and prior two comparable years or calendar years.
30. Submit details of information covering research and development expenditures including major projects within the company and forecasted company programs.
31. Provide a schedule lising all charitable and civic contributions by recipient for those amounts claimed in the test year operating expenses.
32. Provide a labor productivity schedule.
33. Indicate the expenses that are included in the test year, which are due to the placement in operating service of major plant additions or the removal of major plant from operating service, and estimate the expense that will be incurred on a full-year’s operation.
34. Submit a statement of changes in major accounting procedures since the previous rate case and any anticipated changes.
35. Explain the internal auditing program and provide a listing of the audits performed during the year preceding the filing.
Taxes, Other than Income Taxes36. Provide a copy of the latest capital stock tax report and the latest capital stock tax settlement.
37. Provide a schedule of Federal and Pennsylvania taxes, other than income taxes, calculated for the unadjusted test year under present rates, the adjusted test year under present rates and the adjusted test year under proposed rates, to include the following categories:
a. social security
b. unemployment
c. capital stock
d. public utility realty
e. assessments—P.U.C. and Office of the Consumer Advocate
f. other property
g. any other appropriate categories
Income taxes38. Submit a schedule showing for the last five calendar years the Federal income tax refunds, or other payments plus interest (net of taxes), paid to the Company as a result of prior years’ claims.
39. Provide detailed computations showing the deferred income taxes resulting from the use of: accelerated tax depreciation associated with post-1969 public utility property as provided by Internal Revenue Code Section 167 Asset Depreciation Range (ADR) lives; and, accelerated tax depreciation associated with post-1980 public utility property under the Accelerated Cost Recovery System (ACRS) as provided by Internal Revenue Code Section 168.
a. Separate the state and federal computations and provide the tax rates used in calculating the deferrals.
b. State whether tax depreciation is based on all depreciable telephone plant in service claimed in the measure(s) of value and whether it is the tax depreciation for the test year.
c. Reconcile any difference between the deferred tax balance, shown as a reduction to the measure(s) of value, and the deferred tax balance as shown on the balance sheet.
40. Submit a schedule showing a breakdown of the deferred income taxes by State and Federal for the unadjusted test year under present rates, the adjusted test year under present rates and the adjusted test year under proposed rates.
41. Submit a schedule showing a breakdown of accumulated and unamortized investment tax credits (3 percent, 4 percent, 7 percent, 10 percent and 11 percent), as of the end of the historical test year, together with a description of methods used to write-off the unamortized balances if changed since previous rate proceeding.
42. Submit detailed calculations showing the derivation of deferred income taxes due to amortization of repair allowance if such policy is followed.
(Note: Submit additional schedules if the company has more than one accounting area.)
43. Provide details of the Federal Surtax Exemption allocated to the Pennsylvania jurisdictional area, if applicable.
44. Explain the use of cost of removal of any retired plant figures in the income tax calculations.
45. Provide the method used to calculate test year income tax deferrals associated with tax depreciation in amounts segregated as follows:
a. Property installed prior to 1970
b. Property installed subsequent to 1969
46. State whether all tax effects due to accelerated depreciation on property installed prior to 1970 have been passed through to income. (If not, explain.)
47. Show any income tax loss/gain carryovers from previous years that may affect test year income taxes or future year income taxes. Show loss/gain carryovers by years of origin and amounts remaining by years at the end of the test year.
48. Provide a detailed analysis of Taxes Accrued on the basis of the unadjusted test year under present rates.
49. For the test year as recorded on test year operating statement:
a. Supply the amount of current Federal income tax expense.
b. Supply the amount of the net deferred Federal income tax expense resulting from the excess of accelerated tax depreciation over book depreciation.
c. Supply the amount of investment credit realized during the test year due to the 10% Job Development Credit during test year.
d. Provide the amount of the reduction in Federal income taxes due to the amortization of the 10% Job Development Credit.
e. Provide the amount of the reduction in Federal income taxes for the amortization of any 3% Investment Tax Credit that may remain on the utility books.
f. Provide the Federal income tax actually paid, net of all tax credits, for the latest tax return filed.
50. Provide the debit and credit in the test year to the Deferred Taxes due to Accelerated Depreciation for Federal income tax, and provide the debit and credit for the Job Development Credits (whatever account) for the test year.
51. Reconcile income taxes on the test year operating statement with regard to current portion of income tax, income taxes deferred currently due to tax timing differences and current taxes due resulting from past years’ income tax deferrals, and from adjustment of investment tax and job development credits for both State and Federal income taxes.
52. With respect to determination of Federal and State income taxes, submit the following schedules:
a. Income tax results of the adjustments to the test year under present rates.
b. Income taxes for the adjusted test year under present rates.
c. Income tax effect of the rate increase requested.
d. Income taxes for the adjusted test year under proposed rates.
e. Adjustments for taxable net income for the unadjusted test year under present rates and the adjusted test year under present rates, together with an explanation of any difference between the adjustments. Indicate charitable donations and contributions in the tax calculation for rate making purposes, if claimed.
53. Each independent telephone company shall provide copies of Bell of Pennsylvania toll settlement sheets for each month of the historical test year as well as each month subsequent to the test year, prior to the effective date of the filing.
IV. RATE STRUCTURE
Each telephone utility shall submit the following simultaneously with any rate increase filing:
1. A fully allocated cost-of-service study derived from the apportionment of the total costs of operating a telephone company, by distributing this total cost among all of the various equipment units and classes of service in such a manner that the sum of the costs imputed to each unit or class of service is made to equal the total costs for the most recent year available.
2. Submit a summary of the detailed cost studies upon which respondent supports the proposed rates.
a. For every cost study provided, submit a thorough explanation of the cost methodology used in deriving such cost studies.
3. Show a comparison of proposed revenue to a fully allocated cost for any charge change in equipment or service. Indicate the deficiencies or excesses in proposed revenue.
4. Provide a schedule that compares present and proposed tariff charges, along with the percentage increase or decrease for each change, increase, or decrease in the tariff. Also, set forth the revenue anticipated from these changes.
5. Provide a detailed revenue analysis displaying, by category of service, revenues resulting from test year under present rates and test year under proposed rates.
6. Submit a summary of the number and type of customers or billed units affected by each proposed increase, decrease or change in the tariff.
7. Submit a study that states the number of customers or billed units receiving individual, two-party, four-party and multi-party service in each exchange area for the total Company. Classify according to residence and business customers or billed units.
8. Provide a list of the various exchanges and show the number of terminals each exchange can call without incurring a toll charge. Accompany this with the present and proposed basic monthly exchange charges by rate band if applicable and percentage increase. Delineate according to business and residential customers or billed units.
If a change from mileage charges to zones is proposed, explain how zones were chosen and what criteria were used in choosing the geographical locations of these zones.
9. Submit a schedule listing the following information for each central office.
a. Number of lines installed at the end of test year.
b. Number of lines utilized at end of test year.
10. Provide the rationale, method of determination and cost justification for any change in rate band widths.
11. Provide growth patterns of usage in messages or hundred call seconds per main station and billed units, by business and residence classes of service for each rate class for three preceding years.
12. Provide a schedule showing unfilled requests for upgrades.
13. Provide a schedule showing outstanding service orders for new telephones at the end of the test year.
Exhibit C
GENERAL FILING INFORMATION—ELECTRIC UTILITIES
SUMMARY OF FILING
1. Provide a summary discussion of the rate change request, including specific reasons for each increase or decrease. Also provide a breakdown which identifies the revenue requirement value of the major items generating the requested rate change.
2. Identify the proposed witnesses for all statements and schedules of revenues, expenses, taxes, property, valuation and the like.
3. Provide a single page summary table showing, at present and at proposed rates, together with references to the filing information, the following as claimed for the fully adjusted test year:
Revenues
Operating Expenses
Operating Income
Rate Base
Rate of Return (produced)
4. Whenever a major generating plant is placed in operating service or removed from operating service the utility shall separately indicate the effect of the plant addition or removal from service upon rate base, revenue, expense, tax, income and revenue requirement as it affects the test year.
B. GENERAL DESCRIPTION OF UTILITY OPERATIONS
1. Provide a corporate history including the dates of original incorporation, subsequent mergers and 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 or billed units in the areas served.
2. Provide a description of the property of the utility and an explanation of the system’s operation, and supply the following, using available projections if actual data is unavailable:
a. A schedule of generating capability showing for the test year, and for the two consecutive 12-month periods prior to the test year, net dependable capacity in KW by unit, plant capacity factor by unit, and total fuel consumption by type and cost for each unit, if available, or for each station, and operation and maintenance expenses by station.
b. A schedule showing for the test year and for the 12-month period immediately prior to the test year the scheduled and unscheduled outages—in excess of 48 hours—for each station, the equipment or unit involved, the date the outage occurred, duration of the outage, maintenance expenses incurred for each outage, if available, and amounts reimbursable from suppliers or insurance companies.
c. A schedule for each unit retired during the test year or subsequent to the end of the test year, which shows the unit’s KW capacity, hours of operation during the test year, net output generated, cents/KWH of maintenance and fuel expenses, and date of retirement.
d. A schedule showing latest projections of capacity additions and retirements—costs and KW—and reserve capacity at the time of peak for at least 10 years beyond the test year, including the inservice dates—actual or expected—and AFDC cutoff dates—if different from inservice dates—for all new generating units coming on line during or subsequent to the test year, if claimed.
3. Provide an overall system map, including and labeling all generating plants, transmission substations—indicate voltage, transmission system lines—indicate voltage, and all interconnection points with other electric utilities, power pools, and other like systems.
II. PRIMARY STATEMENTS
OF RATE BASE AND
OPERATING INCOME
A. RATE BASE—UNADJUSTED TO ADJUSTED BASIS
1. Provide a schedule showing 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.
2. If the schedule provided in response to item 1, 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.
3. When a utility files a tariff stating a new rate based in whole or in part on the cost of construction, as defined in 66 Pa.C.S. § 1308(f) (relating to voluntary changes in rates), of an electric generating unit, the utility shall identify:
(a) The total cost of the generating unit.
(b) The following costs:
(1) The cost and quantity of each category of major equipment, such as switchgear, pumps or diesel generators and the like.
(2) The cost and quantity of each category of bulk materials, such as concrete, cable and structural steel and the like.
(3) Manual labor.
(4) Direct and indirect costs of architect/engineering services.
(5) Direct and indirect costs of subcontracts or other contracts involving major components or systems such as turbines, generators, nuclear steam supply systems, major structures and the like.
(6) Distributed costs.
(c) A cost increase of $5 million or more, including AFUDC, over the original utility estimates provided under 66 Pa.C.S. § 515(a) (relating to construction cost of electric generating units) and its causes.
(d) Compliance with subsections (a) and (b) will be identical in format and substance as that provided under 52 Pa. Code § 57.103 (relating to estimate of construction costs) for original cost estimates submitted under 66 Pa.C.S. § 515(a).
B. RATE BASE SUPPORTING SCHEDULES
1. If a claim is made for plant held for future use, supply the following:
a. A description of the plant or land site and its cost and any accumulated depreciation.
b. The expected date of use for each item claimed.
c. An explanation as to why it is necessary to acquire each item in advance of its date of use.
d. The data when each item was acquired.
e. The date when each item was placed in plant held for future use.
2. If a claim is made for construction work in progress, provide a supporting schedule which sets forth separately, revenue-producing and nonrevenue producing amounts, and include, for each category a summary of all work orders, amounts expended at the end of the test year and anticipated inservice dates. Indicate if the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page from the work order. Include final completion dates and estimated total amounts to be spent on each project.
3. If a claim is made for materials and supplies or fuel inventory provide a supporting schedule for each claim showing the latest 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.
4. If a claim is made for cash working capital provide a supporting schedule setting forth the method and all detailed 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.
5. 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 balance 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.
6. Explain in detail by statement or exhibit the appropriateness of additional claims or the use of a method not previously mentioned, in the claimed rate base.
C. OPERATING INCOME STATEMENT
1. Prepare a Statement of Income including:
a. The book, or budgeted, statement for the test year.
b. Adjustments to annualize and normalize under present rates, including an elimination of the effects on income of the energy cost rate and state tax adjustment surcharge.
c. The income statement under present rates after adjustment.
d. The adjustment for the revenue requested.
e. The income statement under requested rates after adjustment.
Each adjustment, including those relating to adjustment clauses, shall contain an explanation in sufficient clarifying detail to allow a reasonably informed person to understand the method and rationale of the adjustment.
2. If the schedule provided in item 1 is based upon budgeted data for 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.
D. INCOME STATEMENT SUPPORTING SCHEDULES
1. Provide a schedule showing all revenues and expenses for the test year and for the 12-month period immediately prior to the test year, together with an explanation for major variances between test year revenues and expenses and those for the previous 12-month period. Revenues and expenses shall be summarized by the major account categories listed below. If budgeted data for a future test year is not readily available by these categories, an analysis of the data for the 12-month period immediately prior to the future test year or for the most recent available calendar year may serve as the basis for ratably allocating the budgeted data into the account categories as follows:
OPERATING REVENUES
400 Electric Revenues:
Residential Sales
Commercial Sales
Industrial Sales
Public Street & Highway
Lighting Sales
Sales for Resale
Total Other Electric RevenuesOther Electric Revenues:
Late Payment Charges
Miscellaneous Service Revenues
Rent from Electric Property
Other Electric Revenues
Total Other Electric Revenues
Total Operating RevenuesOPERATING EXPENSES
401-2 Operation and Maintenance Expenses
Power Production Expenses:
Fuel
Net Interchange
Deferred Energy Costs
OtherTransmission Expenses
Distribution Expenses
Customer Service & Informational Expense Sales Expenses
Administrative and General Expenses
Total Operation & Maintenance Expenses
403 Depreciation Expenses Amortization of Net Salvage Nuclear Decommissioning Expense 407 Amortization of Property Losses 408 Taxes Other Than Income Taxes
Total Operating Expenses Prior To
Federal & State Income TaxesOPERATING EXPENSES
Operating Income Prior To Federal and State Income Taxes FEDERAL AND STATE INCOME TAXES
409 Federal Income Taxes
State Income Taxes
409 Deferred Federal Income Taxes Deferred State Income Taxes 411 Investment Tax Credit Adjustments
Deferrals
Amortization—CreditOther Income Tax Credits & Charges
Total Federal and State Income Taxes
Operating Income After Federal and State Income TaxesOTHER INCOME AND DEDUCTIONS
OTHER INCOME
415-18 Non-utility Operating Income 419 Interest and Divided Income 419 Allowance for Other Funds Used During Construction 421 Gain on Disposition of Property 421 Other Miscellaneous Non-operating Income
Total Other IncomeOTHER INCOME DEDUCTIONS
421 Loss on Disposition of Property 425 Miscellaneous Amortization 426 Miscellaneous
Total Other Income DeductionsTAXES APPLICABLE TO OTHER INCOME AND DEDUCTIONS
408 Taxes Other Than Income Taxes 409 Federal Income Tax 409 State Income Tax
Total Taxes Applicable to Other Income and Deductions
Income Before Interest ChargesINTEREST CHARGES
427 Interest on Long-Term Debt 428 Amortization of Debt Discount and Expense 429 Amortization of Premium on Debt 431 Other Interest Expense 432 Allowance for Borrowed Funds Used During Construction—Credit Net Interest Charges Income Before Extraordinary Items Extraordinary Items After Taxes
Net Income2. Provide a summary of test year adjustments which sets forth the effect of the adjustment upon the following: operating revenues, operating expenses, taxes other than income taxes, operating income before income taxes, State income tax, Federal income tax and income available for return. In addition, test year adjustments shall be presented on the basis of the major account categories set out at II-D-1.
3. List and explain all nonrecurring or extraordinary expenses incurred in the test year and all 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, nonyearly maintenance programs, and the like.
4. As a separate item, list extraordinary property losses related to property previously included in cost of service when the gain or loss on this property has occurred or is likely to occur in the future test year. The proposed ratemaking treatment of extraordinary gains and losses must also be disclosed. Sufficient supporting data must be provided.
5. 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 3 calendar years.
6. Supply detailed calculations to support the total claim for rate case expense, including supporting data for outside service rendered. Provide the items comprising the estimated rate case expense claim for the current rate case.
7. Submit schedules for the test year and for the 12-month period immediately prior to the test year showing by major components, if included in claimed test year expenses, the expenses incurred in each of the following expense categories.
a. Miscellaneous general expenses, including account 930.
b. Outside service expenses.
c. Regulatory commission expenses.
d. Advertising expenses, including advertising engaged in by trade associations whenever the utility has claimed a contribution to the trade association as a ratemaking claim—provide explanation of types and purposes of such advertising.
e. Research and development expenses—provide a listing of major projects.
f. Charitable and civic contributions, by recipient and amount.
Explain major variances between the test year expenses and those expenses for the prior 12-month period.
8. Provide an analysis by function of charges by affiliates, for the test year and the 12-month period immediately prior to the test year, for services rendered included in the operating expenses of the filing company. Explain the nature of the service and the basis on which charges or allocations are made, including a copy of an applicable contract. Also, explain major variances between the charges for the test year and the corresponding charges for the prior 12-month period.
9. Prepare a detailed schedule for the test year showing types of social and service organization memberships paid for, the cost thereof, the accounting treatment and whether included in claimed test year expenses.
10. Provide the following payroll and employe benefit data—regular and overtime—separately for the test year and for the 12-month period immediately prior to the test year:
a. The average and year-end number of employes and the unadjusted annual payroll expense and employe benefit expense associated with union personnel.
b. The average and year-end number of employes and the unadjusted annual payroll expense and employe benefit expense associated with nonunion personnel.
c. The average and year-end number of employes and the unadjusted annual payroll expense and employe benefit expense associated with management employes, if different than b.
d. A summary of the wage rate, salary and employe benefit changes granted or to be granted during the year.
e. The claimed test year payroll expense and employe benefit expense.
f. The percentage of payroll expense and employe benefit expense applicable to operation and maintenance expenses and the basis thereof.
11. Describe costs relative to leasing equipment, including computer rentals, and office space, including terms and conditions of the leases. State method for calculating monthly or annual payments.
12. Submit a statement of past and anticipated changes, since the previous rate case, in major accounting procedures, explain any differences between the basis or procedure used in allocations of revenues, expenses, depreciation and taxes in the current rate case and that used in the prior rate cases, and list all internal and independent audit reports for the most recent 2 year period.
13. Regardless of whether a claim for negative or positive net salvage is made, attach an exhibit showing gross salvage, cost of removal, third party reimbursements, if any, and net salvage for the test year and 4 previous years.
14. State the amount of debt interest utilized for test year income tax calculations, including the amount so utilized which has been allocated from the debt interest of an affiliate, and provide details of debt interest and allocation computations.
15. Provide a schedule for the test year of Federal and Pennsylvania taxes other than income taxes, per books, pro forma at present rates, and pro forma at proposed rates, including the following tax categories:
a. Social security.
b. Unemployment.
c. Capital stock.
d. Public utility.
e. P.U.C. assessment.
f. Other property taxes.
g. Any other appropriate categories.
16. Submit a schedule showing the adjustments from taxable net income per books to taxable net income pro forma under existing rates and pro forma under proposed rates, together with an explanation of all normalizing adjustments. Submit detailed calculations supporting taxable income before State and Federal income taxes where the income tax is subject to allocation due to operations in another state or due to operation of other taxable utility or non-utility business, or by operating divisions or areas.
17. Submit a schedule showing for the last 5 years the income tax refunds, plus interest—net of taxes, received from the Federal government due to prior years’ claims.
18. Furnish a breakdown of major items comprising prepaid and deferred income tax charges and other deferred income tax credits, reserves and associated reversals on liberalized depreciation.
19. Explain how the Federal corporate graduated tax rates have been reflected for rate case purposes. If the Pennsylvania jurisdictional utility is part of a multi-corporate system, explain how the tax savings are allocated to each member of the system.
20. Explain the treatment given to costs of removal in the income tax calculation and the basis for such treatment.
21. Show income tax loss/gain carryovers from previous years. Show loss/gain carryovers by years of origin and amounts remaining by years at the beginning of the test year.
22. State whether the company eliminates tax savings by the payment of actual interest on construction work in progress not in rate base claim.
If response is affirmative:
a. Set forth amount of construction claimed in this tax savings reduction, and explain the basis for this amount.
b. Explain the manner in which the debt portion of this construction is determined for purposes of the deferral calculations.
c. State the interest rate used to calculate interest on this construction debt portion, and the manner in which it is derived.
d. Provide details of calculation to determine tax savings reduction, and state whether State taxes are increased to reflect the construction interest elimination.
23. Under section 1552 of the Internal Revenue Code (26 U.S.C.A. § 1552) and 26 CFR 1.1552-1 (1983), if applicable, a parent company, 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 (if this interrogatory is not applicable, so state):
a. State what option has been chosen by the group.
b. 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.
c. 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.
d. Provide the most recent annual income tax return for the group.
e. 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.
f. Provide details of the amount of net negative income taxes, after all 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.
24. Provide detailed computations by vintage year showing State and Federal deferred income taxes resulting from the use of 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 (ACRS).
a. Reconcile and explain any differences in the base used to calculate State and Federal deferred income taxes.
b. State whether tax depreciation is based on all 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.
c. 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.
25. Submit a schedule showing a breakdown of accumulated and unamortized investment tax credits, by vintage year and percentage rate, together with calculations supporting the amortized amount claimed as a reduction to pro forma income taxes. Provide details of methods used to write-off the unamortized balances.
26. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not otherwise specifically explained and supported in the statement of operating income.
27. If the utility’s operations include non-jurisdictional activities, provide a schedule which demonstrates the manner in which rate base and operating income date have been adjusted to develop the jurisdictional test year claim.
E. BUDGETED DATA1. Supply a copy of any budget utilized as a basis for any test year claim, and explain the utility’s budgeting process.
2. Supply summaries of the utility’s projected operating and capital budgets for the 2 calendar years following the end of the test year.
III. RATE OF RETURN
A. CLAIMED RATE OF RETURN
1. 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.
2. Provide a schedule in the same format as Schedule 1, except for the omission of the descriptive statement, for the most immediate comparable annual historical period prior to the test year and the two calendar years most immediately preceding the rate of return claim period. Irrespective of whether the capitalization claimed on Schedule 1 includes short-term debt, Schedule 2 should reflect capital ratios with and without short-term debt.
B. EMBEDDED COST OF LONG-TERM DEBT1. 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:
a. Date of issue.
b. Date of maturity.
c. Amount issued.
d. Amount outstanding.
e. Amount retired.
f. Amount reacquired.
g. Gain or loss on reacquisition.
h. Coupon rate.
i. Discount or premium at issuance.
j. Issuance expense.
k. Net proceeds.
l. Sinking fund requirements.
m. Effective cost rate.
n. Total average weighted effective cost rate.
Projected new issues, retirements and other major changes from the comparable historic data should be clearly noted.
2. In the event that 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 such a claim should be provided.
3. Provide the following information concerning bank notes payable for test year and for latest comparable annual historical period prior to the test year:
a. Line of credit at each bank.
b. Average daily balances of notes to each bank, by name of bank.
c. Interest rate charged on each bank note (Prime rate, formula rate, or other).
d. Purpose of each bank note (for example, construction, fuel storage, working capital, debt retirement).
e. Prospective future need for this type of financing.
4. Provide detailed information concerning all other short-term debt outstanding.
5. Describe long-term debt reacquisition by issue by Company 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.
C. EMBEDDED COST OF PREFERRED STOCKProvide 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:
a. Date of issue.
b. Date of maturity.
c. Amount issued.
d. Amount outstanding.
e. Amount retired.
f. Amount reacquired.
g. Gain or loss on reacquistion.
h. Dividend rate.
i. Discount or premium at issuance.
j. Issuance expenses.
k. Net proceeds.
l. Sinking fund requirements.
m. Effective cost rate.
n. Total average weighted effective cost rate.
Projected new issues, retirement and other major changes from the comparable historical data should be clearly noted.
D. COST OF COMMON EQUITY1. Provide complete support for claimed common equity rate of return.
2. Provide a summary statement of all stock dividends, splits or par value changes during the 2 calendar year period preceding the rate case filing.
3. Provide a schedule of all issuances of common stock, whether or not underwriters are used, for the most immediately available annual historical period and the 2 calendar years most immediately preceding the test year.
4. Submit details on the utility and parent company stock offerings—past 5 years to present—as follows:
a. Date of prospectus.
b. Date of offering.
c. Record date.
d. Offering period—dates and numbers of days.
e. Amount and number of shares offered.
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 (i—j).
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. Latest reported earnings per share at time of offering.
o. Latest reported dividends at time of offering.
E. PARENT—SUBSIDIARY RELATIONSHIP1. If a claim of the filing utility is based on utilization of the capital structure or capital costs of the parent company and system—consolidated—the reasons for this claim must be fully stated and supported.
2. Regardless of the claim made, provide the capitalization data requested at Item III.A.2. for the parent company and for the system—consolidated.
3. Provide the latest available balance sheet and income statement for the parent company and system—consolidated.
4. Provide an organizational chart explaining the filing utility’s corporate relationship to its affiliates—system structure.
F. GENERAL FINANCIAL DATA1. The latest available quarterly operating and financial report, annual report to the stockholders and prospectus shall be supplied for the utility and for the utility’s parent, if the relationship exists.
2. 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.
3. 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.
4. A schedule of comparative financial data shall be supplied for the test year, the most immediately available annual historical period, prior to the test year, and the 2 calendar years most immediately preceding the test year. Changes in Moody’s/S&P ratings, noted on this schedule, shall be accompanied by the Moody’s/S&P writeup of such change, if available. The following financial data and ratios shall be supplied for the utility’s parent, where applicable, if not available for the utility.
a. Times interest earned ratio—pre-tax and post-tax basis.
b. Preferred stock dividend coverage ratio—post-tax basis.
c. Times fixed charges earned ratio—pre-tax basis.
d. Earnings per share.
e. Dividend per share.
f. Average dividend yield (52-week high/low common stock price).
g. Average book value per share.
h. Average market price per share.
i. Market price-book value ratio.
j. Earnings-book value ratio (per share basis, average book value).
k. Dividend payout ratio.
l. AFUDC as a % of earnings available for common equity.
m. Construction work in progress as a % of net utility plant.
n. Effective income tax rate.
o. Internal cash generations as a % of total capital requirements.
IV. RATE STRUCTURE AND COST ALLOCATION
A. SUMMARY OF INDIVIDUAL RATE EFFECTS
Provide a summary schedule of the individual rate effects. For each state jurisdictional rate, show the following information for the test period elected:
1. Rate schedule designation.
2. For existing rates:
(a) Customers served as of end of period.
(b) Annual Kwh sales.
(c) Base rate revenues adjusted for any changes in base rate application that may have occurred during the test period.
(d) Tax surcharge revenues.
(e) Energy Cost adjustment clause revenues.
(f) Revenues received from other clauses or riders separately accounted for.
(g) Total of all revenues.
3. For proposed rates:
(a) Estimated number of customers whose charges for electric service will be increased or decreased as a result of this filing.
(b) Base rate revenues:
(1) Annual dollar amount of increase or decrease.
(2) Percentage change.
(c) Estimated tax surcharge revenues based on the assumption that the base rate changes proposed were in place.
(d) Estimated Energy cost adjustment clause revenues.
(e) Revenues received from other clauses or riders separately accounted for.
(f) Total of all revenues:
(1) Amount of total annual dollar change.
(2) Percentage change.
4. Supplement the revenue summary to obtain a complete revenue statement of the electric business, that is, show delayed payments, other electric revenues, FERC jurisdictional sales and revenues and all other appropriate revenue items and adjustments.
5. Develop the grand total showing total sales and revenues as adjusted and the various increases and decreases and percent effects as described above.
B. DESCRIPTION OF PROPOSED RATE CHANGESProvide a description of changes proposed for the new tariff:
(1) For each rate schedule proposed to be modified.
(2) For each rate schedule proposed to be deleted.
(3) For each new rate schedule proposed to be added.
C. REVENUE EFFECTS AND BILLING ANALYSES FOR CHANGED RATESThe annual revenue effect of any proposed change to any rate must be supported by a billing analysis. This may consist of the use of bill frequency distributions or individual customer billing records for the most recent annual periods available. All billing determinants should be displayed. The blocking and corresponding prices of the existing rate and the proposed rate should be applied to the determinants to derive the base rate revenues under both present and proposed rates. The derived base rate revenues should form the basis for measuring the annual base rate effect of the rates in question for the test periods.
D. MONTHLY BILLING EFFECT CHARTS AND DATAThe effects of the proposed rates on monthly billing conditions should be provided as follows:
1. Residential Bill Comparisons
For each rate applicable to residential service provide a chart or tabulation which shows the dollar and percentage effect of the proposed base rate on monthly bills ranging from the use of zero kWh to 5,000 kWh at appropriate intervals.
2. General Bill Comparisons
For each rate that requires both a billing demand (kW) and kWh’s as the billing determinants, provide a tabulation or graphical comparison showing the percentage effect of the proposed base rate on monthly bills using several representative demand (kW) levels, the monthly kWh for each demand selected to be in load factor increments of 10% starting at 0% and ending at 100% (730H) or by hours’ use increments that covers approximately 95% of the bills.
E. COST OF SERVICE STUDY, ALLOCATIONS TO EACH TARIFF RATE SCHEDULE1. Provide a cost study which allocates the total cost of service to each proposed tariff rate schedule. Tariff rates schedules may be combined for this purpose provided that they are of a similar supply or end use nature. A statement describing which rates were combined and the reasons therefor should be submitted.
The rates of return for each tariff rate schedule as defined above should be determined at both the present and proposed rate levels. Base rate revenues should be used for this purpose unless there are good and sufficient reasons to include revenues derived from other sources. Should the latter be the case, an explanation of other revenue sources included and reasons therefor should accompany the cost allocation study.
The methods selected for use in allocating costs to rate classes should include cost analyses based on:
a. Peak responsibility.
b. Average and excess, on a non-coincident demand basis.
c. Company preferred method if different from the above-referenced methods, with rationale behind the selection.
This study should include a statement of the source and age of the load data used in the determination of demand responsibilities, a description of any special studies used to prepare the cost study, and the most recent overall system line loss study.
The cost data used in the allocation study may be based on the test year.
2. Provide comparisons in either graphical or tabular form showing cost, as defined in the cost of service study, and proposed base rate revenues and usage for all residential and demand/energy rate schedules. Demand shall be for representative loads for each demand/energy rate schedule.
V. PLANT AND
DEPRECIATION SUPPORTING
DATA, INCLUDING
RELATED DEPRECIATION
STUDY REPORT
A. ADJUSTED ORIGINAL COST PLANT WITH ACCUMULATED BOOK AND CALCULATED DEPRECIATION AT TEST YEAR-END
1. Provide schedules supporting claimed amounts for Electric Plant in Service by function and by account if available.
2. Provide a comparison of calculated depreciation reserve versus book reserve at the end of the test year. Provide this comparison by functional group and by account if available.
3. Provide supporting schedules which indicate the procedures and calculations employed to develop the original cost plant and applicable reserves to the test year end as submitted in the current proceeding.
4. Provide a schedule showing details of rate case adjustments.
B. ADJUSTED ORIGINAL COST ANNUAL BOOK AND CALCULATED DEPRECIATION ACCRUALS
1. Provide a comparison of calculated depreciation accruals versus book accruals by function and by account if available.
2. Supply a schedule by account or by depreciable group showing the survivor curve or interim survivor curve and annual accrual rate estimated to be appropriate:
a. For the purpose of this filing.
b. For the purpose of the most recent rate filing prior to the current proceeding.
c. Supply an explanation for any major change in annual accrual rate by account or by depreciable group.
d. 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.
C. USE OF RETIREMENT RATE ACTUARIAL METHODWhere the retirement rate actuarial method of mortality analysis is utilized, set forth representative examples including charts depicting the observed and estimated survivor curves and a tabular presentation of the observed and estimated life tables plotted on the chart. Other analysis results shall be subject to request.
D. EXAMPLE TABULATIONS OF ORIGINAL COST CLAIMED ESTIMATES OF ACCRUED DEPRECIATION
1. Provide the surviving original cost plant at the appropriate test year date or dates by account or functional property group and include 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.
2. Provide representative examples of detail calculations by vintage at account or at a more detailed level, as performed for these purposes. Other vintage detail calculations shall be subject to request.
E. DESCRIPTION OF DEPRECIATION METHODS
Provide 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 arriving at estimates of service life and forecast retirements by facilities, accounts or sub-accounts, as applicable.
VI. UNADJUSTED
COMPARATIVE
BALANCE SHEETS AND
OPERATING INCOME
STATEMENTS
Provide the following unadjusted detailed schedules by function and by FERC account for the claimed test year and for each of the 3 preceding comparable years:
A. Balance sheet, in the form available.
B. Statement of income.
C. Plant in service.
D. Accumulated depreciation.
Exhibit D
WATER AND WASTEWATER UTILITIES
I. STATEMENT OF INCOME
1. Provide comparative operating statements for the historic test year and the immediately preceding 12 months showing increases and decreases between the two periods. These statements should supply detailed explanation of the causes of the major (greater than 15%) variances between the historic test year and preceding year by detailed account number. Limit the explanation to differences of $10,000 or greater.
2. Prepare an income statement for the various time frames of the rate proceeding including:
Col. 1—Book recorded income statement for the test year.
2—Adjustments to book recorded income statement to annualize and normalize under present rates.
3—Income statement under present rates after adjustments in Col. 2.
4—Adjustments to Col. 3 for revenue increase requested.
5—Income statement under proposed rates.
3. If a company has separate operating divisions, an income statement must be shown for each division, plus an income statement for the company as a whole.
4. Provide operating income claims under:
a. Present rates.
b. Pro forma present rates (annualized & normalized).
c. Proposed rates (annualized & normalized).
5. Provide rate of return on original cost under:
a. Present rates.
b. Pro forma present rates.
c. Proposed rates.
II. OPERATING REVENUES
1. Prepare a summary of operating revenues for the historic test year and the year preceding the historic test year, providing the following information:
a. For each classification of customers:
(i) Number of customers as of year-end.
(ii) Gallons sold.
(iii) Revenues.
b. Customers’ penalties and miscellaneous water revenues.
2. Prepare a summary of operating revenues for the historic test year, providing the following information:
a. For each classification of customers and for customers’ penalties and miscellaneous water or wastewater revenues:
(i) Revenues.
(ii) Annualizing and normalizing adjustments to arrive at adjusted operating revenues for ratemaking.
(iii) Proposed increase in operating revenues.
(iv) Percent increase in operating revenues.
(v) Operating revenues under proposed rates.
3. Provide a schedule of present and proposed tariff rates showing dollar change and percent of change by block. Provide increases to customers at various monthly uses (each 5,000 gallon consumption increment) showing billings at existing and proposed rates. Provide also an explanation of any change in block structure and the reason therefore. Provide a copy of the proposed tariff or tariff supplement on a red line basis, to easily identify any changes.
4. Provide for the future test year a detailed customer consumption analysis and the application of rates to support present and proposed revenues by customer classification and tariff rate schedule.
5. Provide detailed computations of the determination of accrued revenues as of historic test year-end and year-end immediately preceding the historic test year, together with a detailed explanation of the procedures and methods used in developing accrued revenues.
6. Provide a detailed breakdown of miscellaneous water revenues for the historic test year and the two years immediately preceding the historic test year. For the historic test year, provide a monthly breakdown and an explanation of monthly variances greater than 15%.
7. Provide a monthly summary of customers added and lost by customer classification for the historic test year and the current year-to-date.
8. Provide for the historic test year and the current year-to-date, the number of customers and monthly consumption for each classification of customers.
9. Provide by customer classification for the historic test year and for the 2 prior years the number of customers and consumption, and projected number of customers and consumption for the 2 subsequent years.
10. Provide a breakdown of the number and size of private fire services according to the general water service class of customers.
a. Provide a listing of all public fire protection customers at historic test year-end and the pro forma billing of current rates for each customer.
11. Provide a detailed schedule of sales for resale revenues for the historic test year and 2 preceding years showing revenues and units sold by customer.
12. Provide for the historic test year and the 2 prior years consumption and billings for the ten largest customers at current rates. Provide the historic and future test year consumption priced at proposed rates.
13. Provide for the historic test year and the 2 prior years consumption 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 Part II.12.
III. OPERATING EXPENSE
1. Prepare a summary of operating expenses by operating expense account for the historic test year and the 2 years preceding the test year.
2. Prepare a summary of operating expenses for the historic test year providing annualizing and normalizing adjustments to arrive at adjusted future operating expenses for ratemaking, including supporting data.
3. List extraordinary property losses as a separate item, not included in operating expenses or depreciation and amortization. Sufficient supporting data must be provided, such as explanation and breakdown of costs.
4. Supply detailed calculations of normalization of rate case expense, including supporting data for outside services rendered. Provide the items comprising the rate case expense claim (include the actual billings or invoices in support of each kind of rate case expense) and the items comprising the actual expenses of the prior rate cases.
5. Submit detailed computation of adjustments to operating expenses for salary, wage and fringe benefit increases (union and nonunion merit, progression, promotion and general) granted during the historic test year and during the 12 months subsequent to the historic test year. Supply data for the historic test year showing:
a. Actual payroll expense (regular and overtime separately) by categories of operating expenses, i.e., maintenance, operating transmission, distribution, other.
b. Date, percentage increase and annual amount of each general payroll increase during the historic test year and future test year.
c. Dates and annual amounts of merit increases or management salary adjustments.
d. Total annual payroll increases in the historic and future test years.
e. Proof that the actual payroll plus the increases equal the payroll expense claimed in the supporting data by categories of expenses.
f. Detailed list of employee benefits and cost thereof for union and nonunion personnel. Specific benefits for executives and officers should be included, and costs thereof.
g. Support the annualized pension cost figures by providing the following:
(i) State whether these figures include any unfunded pension costs. Explain.
(ii) Provide latest actuarial study used for determining pension accrual rates.
h. Submit a schedule showing any deferred income and consultant fee, paid to both, corporate officers and employees in historic and future test years.
6. Supply an exhibit showing an analysis, by functional accounts, of the charges by affiliates (service corporations, etc.) for services rendered included in the operating expenses of the filing company for the historic and future test years and for the 12-month period ended prior to the historic test year:
a. Supply a copy of contracts, if applicable.
b. Explain the nature of the services provided.
c. Explain the basis on which charges are made.
d. If charges are allocated, identify allocation factors used.
e. Supply the components and amounts comprising the expense in this account.
f. Provide details of initial source of charge and reason thereof.
7. Describe costs relative to leasing equipment, computer rentals, and office space, including terms and conditions of the lease. Explain the method of calculating monthly or annual payments. If allocated from the parent company, provide the method of allocation.
8. Submit detailed calculations (or best estimates) of the cost resulting from storm damage.
9. Submit details of expenditures for advertising (national, institutional and local media). Provide a schedule of advertising expense by media categories for the historic test year and the prior two comparable years with respect to:
a. Public health and safety.
b. Conservation of energy.
c. Explanation of billing practices, rates, rules and regulations.
d. Provision of factual and objective data programs in educational institutions.
e. Other advertising programs.
f. Total advertising expense.
10. Prepare a detailed schedule for the historic test year showing types of social and service organization memberships paid for by the company and the cost thereof.
11. Submit a schedule showing a breakdown by the expenditures associated with outside services employed, regulatory commission expenses, showing expenses relating to rate cases separately, and miscellaneous general expenses, for the historic test year and prior 2 comparable years.
12. Submit details of information covering research and development expenditures, by project, within the company and note forecasted company programs.
13. Provide a detailed schedule of all charitable and civic contributions by recipient and amount for the historic test year.
14. Provide the two most recent actuarial studies for both pension expense and postretirement benefits other than pensions (OPEBs).
15. Identify the total pension expense under statement of accounting standards (SFAS 87) for the historic test year and the portion charged to operation and maintenance (O & M). Include an analysis showing the contribution to the pension plan and the amount deferred or expensed for each of the past 2 years and the historic test year. Also provide any estimates for the future year.
16. Provide an analysis of OPEBs showing the accrual amount under SFAS 106 and the pay-as-you-go expense.
17. Reconcile the historic and future test year SFAS No. 106 expense levels with the amount identified in the actuarial report.
18. Identify the actual or projected amounts contributed to SFAS No. 106 funds for the historic and future test years. Identify the actual or projected dates and amounts of the contributions.
19. Explain the funding options or plans which are being used for SFAS No. 106 costs. Identify the portion of costs which are eligible for tax preferred funding.
20. State whether the company is studying or anticipating any changes to its postretirement benefits offered to employees as a result of SFAS No. 106 or for other reasons. If yes, provide the study and explain the anticipated change.
21. State whether the historic test year expenses reflect any accruals for postemployment benefits under SFAS 112. If yes, provide complete details including supporting documentation, assumptions, and funding mechanisms.
22. Provide a copy of all incentive compensation and bonus plans and provide the level of related bonus payments included in the cost of service. Provide information for the preceding 2 years and any changes since the last rate case.
23. Provide the most recent insurance premiums for each type of insurance coverage, both employee benefit and those purchased for the company, reflected in the company’s filing. If available, provide estimated premiums for the subsequent calendar year.
24. Provide the level of payments made to industry organizations included in the cost of service along with a description of each payee organization.
25. If the company has included any costs associated with canceled construction projects or obsolete inventory in requested rates, separately identify the items, provide the related amounts and explain the reason for the cancellation or obsolescence.
26. Explain how the company accounts for vacation pay for book and ratemaking purposes.
27. Indicate whether any employee positions have been eliminated since the commencement of the historic test year or are expected to be eliminated during the future test year.
28. Furnish the name of each supplier, gallonage and expense for water purchased as recorded in Water Purchased for Resale-Account 706 for the historic test year and two preceding years.
IV. TAXES
1. Provide a copy of the latest Pennsylvania Corporate Tax report and the latest Pennsylvania Corporate Tax settlement.
2. Submit details of calculations for taxes, other than income, where a company is assessed taxes for doing business in another state, or on its property located in another state.
3. Submit a schedule showing for the last 3 years the Income Tax refunds, plus interest, net of taxes, received from the Federal government due to prior years’ claims.
4. Provide detailed computations showing the deferred income taxes derived by using accelerated tax depreciation applicable to post-1969 utility property that increases productive capacity, and accelerated depreciation rate (ADR) rates on property (separate between State and Federal; also, rate used). If based on the historic test year, justify.
a. State whether tax depreciation is based on all rate base items claimed as of the end of the future test year, and whether it is the annual tax depreciation at the end of the future test year.
b. Reconcile any difference between the deferred tax balance, as shown as a reduction to measures of value (rate base), and the deferred tax balance as shown on the balance sheet.
5. Submit a schedule showing a breakdown of accumulated investment tax credits, (3%, 4%, 7%, 10% and 11%), together with details of methods used to write-off the unamortized balances.
6. Submit a schedule showing the adjustments for taxable net income per book, including below-the-line items, and pro-forma under existing rates, together with an explanation of any difference between the adjustments. Indicate charitable donations and contributions in the tax calculation for ratemaking purposes.
7. Submit detailed calculations supporting historic and future taxable income before State and Federal Income Taxes where the income tax is subject to allocation due to operations in another state, or due to operation of other taxable utility or nonutility business, or by operating divisions or areas.
8. Furnish a breakdown of major items comprising prepaid and deferred Income Tax charges and other deferred income tax credits and reserves by accounting areas.
9. Explain the reason for the use of cost of removal of any retired plant figures in the Income Tax calculations.
10. State whether all tax savings due to accelerated depreciation on property installed prior to 1970 have been passed through to income. If not, explain.
11. Show any income tax loss/gain carryovers from previous years that may affect historic test year income taxes or future test year Income Taxes. Show loss or gain carryovers by years of origin and amounts remaining by years at the end of the historic test year.
12. Provide a detailed analysis of taxes accrued per books as of the historic and future test year date. Also supply the basis for the accrual and the amount of taxes accrued monthly.
13. Under Section 1552 of the Internal Revenue Code and Regulations at 1.1552-1 if applicable, a parent company, 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. If this request is not applicable, provide an explanation.
a. State what option has been chosen by the group.
b. 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.
c. 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.
d. Provide annual Income Tax return for group, and if Income Tax return shows net operating loss, provide details of amount of net operating loss allocated to the Income Tax returns of each of the members of the consolidated group.
14. 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 company’s consolidated tax savings adjustment.
15. Provide a schedule of Federal and Pennsylvania taxes, other than Income Taxes, calculated on the basis of test year per book, pro forma at present rates, and pro forma at proposed rates, to include the following categories:
a. Social Security.
b. Unemployment.
c. Capital Stock.
d. Public Utility Realty.
e. PUC assessment.
f. Other property.
g. Any other appropriate categories.
16. Submit a schedule showing a breakdown of the deferred Income Taxes by State and Federal per book, pro forma, existing rates, and under proposed rates.
17. With respect to determination of income taxes, Federal and State:
a. Show Income Tax results of the annualizing and normalizing adjustments to the historic test year before any rate increase.
b. Show Income Taxes for the annualized and normalized test year.
c. Show Income Tax effect of the rate increase requested.
d. Show Income Taxes for the normalized and annualized test year after application of the full rate increase.
18. State amount of debt interest utilized for Income Tax calculations, and details of debt interest computations, under each of the following rate case bases:
a. Actual per book test year.
b. Annualized historic test year-end.
c. Proposed future test year-end.
V. RATE BASE
1. Provide a schedule showing the measures of value and the rates of return at the original cost in the current case. All claims made on this exhibit should be cross-referenced to appropriate exhibits.
2. If a claim is made for construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the historic and future test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page from the work order. Include final completion dates and estimated total amounts to be spent on each project. This exhibit should be updated at the conclusion of these proceedings.
3. If a claim is made for nonrevenue producing construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the historic and future test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page from the work order. Include a list of items needed to complete each project, such as landscaping and fencing, and estimated total amounts to be spent to complete each project. These exhibits should be updated at the conclusion of these proceedings.
4. If a claim is 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. Explanation as to 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.
5. 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 end of the historic test year by location, station, etc. Explain the method of determining the claim if other than that described above.
6. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not previously mentioned, in the measures of value.
7. Provide schedules and data in support of the following working capital items:
a. Prepayments—list and identify all items.
b. Federal Income Tax accrued or prepaid.
c. Pennsylvania State Income Tax accrued or prepaid.
d. Pennsylvania Capital Stock Tax accrued or prepaid.
e. Pennsylvania Public Utility Realty Tax accrued or prepaid.
f. Payroll taxes accrued or prepaid.
g. Any adjustments related to the above items for ratemaking purposes.
8. 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.
9. Indicate if amortized expenses have been removed from the lead-lag study. If so, please provide documentation showing such removal. If not, provide a list of such amortization expenses included.
10. Identify the funds availability arrangements or terms which the company has with its banks with respect to deposits of customer checks. For example, does the company have same day or next day access to funds deposited?
11. 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?
c. If so, provide the model. Supply an illustrative example of how the monthly balances are derived.
d. Provide the actual monthly value for the inventory of materials and supplies for the past 12 months. Supply as of the end of the historic test year, a 13-month average, by month, for the material and supply account.
e. Provide the monthly level of materials and supplies for 3 years prior to the conclusion of the historic test year.
12. For each nonblanket or projected plant addition to cost the greater of $100,000 or 0.5% of current rate base, included in the future test year, please provide:
a. Description of the project.
b. Original budgeted cost broken down by allowance for funds used during construction (AFUDC) and non-AFUDC components.
c. Current budgeted cost broken down by AFUDC and non-AFUDC components.
d. Reason for change in budgeted cost.
e. Original estimated date of completion and in service.
f. Current estimated date of completion and in service.
g. Reason for change in completion date.
h. Anticipated retirement related to the plant addition.
i. Starting date of project.
j. Amount expended to date.
k. Percent of project currently complete.
l. The depreciation rate applicable.
m. Identify which projects are due to a Pennsylvania Department of Environmental Protection (PA-DEP) or Federal Environmental Protection Agency (EPA) requirement.
13. Explain how the future test year plant balances were projected and provide supporting workpapers and documentation.
14. Are all of the assets used in the plant-in-service claim used exclusively by the water or wastewater utility? If not, provide the estimated percentage that each shared asset is used by other entities.
15. Is all plant included in rate base currently being used in providing water or wastewater service? If not, provide a schedule which presents those plant items which are not, and indicate the corresponding amounts and account numbers. Further, provide a detailed narrative explaining the reason why such plant is not being used and the anticipated future disposition of the plant.
16. Provide all workpapers and supporting documentation showing the derivation of the projected balances of contributions in aid of construction, customer advances for construction and company service line and customer deposits for the future test year.
VI. DEPRECIATION
If any of the following questions under this section have been previously answered pursuant to 52 Pa. Code Chapter 73, please note in your response. It is not necessary to provide responses to questions previously answered.
1. Provide a description of the depreciation methods used to calculate annual depreciation amounts and depreciation reserves, together with a discussion of the factors which were considered in arriving at estimates of service life and dispersion by account. Supply a comprehensive statement of any changes made in method of depreciation. Provide dates of all field inspections and facilities visited.
2. Set forth, in exhibit form, charts depicting 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.
3. Provide the surviving original cost at historic test year-end by vintage by account and include applicable depreciation reserves and accruals. These calculations should be provided for plant in service as well as other categories of plant, including contributions in aid of construction and customers’ advances for construction.
4. Provide a comparison of the calculated depreciation reserve used for ratemaking purposes v. the book reserve by account at the end of the test year, if they differ.
5. Supply a schedule by account and depreciable group showing the survivor curve and annual accrual rate estimated to be appropriate:
a. For the purposes of this filing.
b. For the purposes of the most recent rate increase filing prior to the current proceedings.
6. Provide an exhibit showing gross salvage, cost of removal, and net salvage for the 5 most recent calendar or fiscal years by account.
VII. RATE OF RETURN
1. Provide capitalization and capitalization ratios for the last 5-year period and projected through the next 2 years (with short-term debt and without short-term debt) for the company, parent and consolidated system.
a. Provide year-end interest coverages before and after taxes for the last 3 years and at the latest date, including indenture and Securities and Exchange Commission (SEC) bases, for the company, parent and consolidated system.
b. Provide year-end preferred stock dividend coverages for the last 3 years and at latest date, including charter and SEC bases.
2. Provide latest prospectus for the company and the parent.
3. Supply projected capital requirements and the sources of company, parent and consolidated system for the historic test year and each of 3 comparable future years.
4. Provide a schedule of debt and preferred stock of company, parent and consolidated system as of historic test year-end and latest date, detailing for each issue (if applicable):
a. Date of issue.
b. Date of maturity.
c. Amount issued.
d. Amount outstanding.
e. Amount retired.
f. Amount required.
g. Gain 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.
5. Supply financial data of company and/or parent for last 5 years:
a. Earnings-price ratio (average).
b. Earnings-book value ratio (per share basis) (average book value).
c. Dividend yield (average).
d. Earnings per share (dollar).
e. Dividends per share (dollars).
f. Average book value per share yearly.
g. Average yearly market price per share (monthly high-low basis).
h. Pre-tax funded debt interest coverage.
i. Post-tax funded debt interest coverage.
j. Market price-book value ratio.
6. Provide AFUDC charged by company at historic test year-end and latest date, explain method by which rate was calculated and provide workpaper showing derivation of the company’s current AFUDC rate.
7. Set forth provisions of company’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.
8. Attach copies of the summaries of the company’s projected revenues, expenses and capital budgets for the next 2 years.
9. Describe long-term debt reacquisitions by company and parent as follows:
a. Reacquisitions by issue by year.
b. Total gain on reacquisitions by issue by year.
c. Accounting of gain for income tax and book purposes.
10. Provide the following information concerning compensating bank balance requirements for actual per book test year:
a. Name of each bank.
b. Address of each bank.
c. Type of accounts with each bank (checking, savings, escrow, other services, etc.).
d. Average daily balance in each account.
e. Amount and percentage requirements for compensating bank balances at each bank.
f. Average daily compensating bank balance at each bank.
g. Documents from each bank explaining compensating bank balance requirements.
h. Interest earned on each type of account.
11. Provide the following information concerning bank notes payable for actual per book test 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).
e. Prospective future need for this type of financing.
12. Submit details on company or parent common stock offerings for the past 5 years to present, as follows:
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 (12.) i and j.
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. Latest reported earnings per share at time of offering.
o. Latest reported dividends at time of offering.
13. Attach a chart explaining company’s corporate relationship to its affiliates showing system structure.
14. If the utility plans to make a formal claim for a specified allowable rate of return, provide the following data in statement or exhibit form:
a. Claimed capitalization and capitalization ratios with supporting data.
b. Claimed cost of long-term debt with supporting data.
c. Claimed cost of short-term debt with supporting data.
d. Claimed cost of total debt with supporting data.
e. Claimed cost of preferred stock with supporting data.
f. Claimed cost of common equity with supporting data.
15. Supply copies of the following documents for the company 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.
16. Supply copies of the company’s balance sheets for each month for the last 2 years.
17. Provide the bond rating history for the company and, if applicable, its parent from the major credit rating agencies for the last five years.
18. Provide copies of all bond rating reports relating to the company and, if applicable, its parent for the past 2 years.
19. Supply copies of all presentations by the company’s and, if applicable, its parent’s management and securities analysts during the past 2 years, including presentations of financial projections.
20. Provide a listing of all securities issuances for the company 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.
21. Identify any plan by the company to refinance high cost long-term debt or preferred stock.
22. Provide copies of all securities analysts’ reports relating to the company and its parent, or both, issued within the past 2 years.
23. If applicable, supply a listing of all common equity infusions from the parent to the company over the past 5 years. In each case, identify date and dollar amount.
24. If applicable, identify the company’s common dividend payments to its parent for each of the last 5 years.
25. Provide the latest year-by-year financial projections for the company for the next 5 years. Also, please indicate the date these projections were prepared; whether approved by management; and whether the projections have been submitted to bond rating agencies. The information will be treated in a confidential manner, if requested by the company in writing, as set forth in 52 Pa. Code § 5.423.
26. Provide the company’s 5-year construction budget.
27. Identify the company’s and, if applicable, its parent’s capital structure targets (percentages of capital types). Provide the complete basis for the capital structure targets.
28. For each month, of the most recent 24 months, supply the company’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:
29. Fully 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.
30. Provide a summary statement of all stock dividends, splits, or par value changes during the 2-year calendar period preceding the rate case filing.
31. 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, the reasons for this claim must be fully stated and supported.
32. To the extent not provided elsewhere, supply financial data of the company, and its parent, if applicable, for the last 5 years.
a. Times interest earned ratio—pre- and post tax basis.
b. Preferred stock dividend coverage ratio—post tax basis.
c. Times fixed charges earned ratio—pretax basis.
d. Dividend payout ratio.
e. AFUDC as a percent of earnings available for common equity.
f. Construction work in progress as a percent of net utility plant.
g. Effective income tax rate.
h. Internal cash generations as a percent of total capital requirements.
VIII. RATE STRUCTURE AND COST OF SERVICE
1. Provide a complete, fully allocated, cost of service study if an interval of 3 years has passed between a previous cost of service study and the historic test year date of the current filing. The cost of service study shall provide the necessary data to determine if the water or wastewater rate structure is fair and equitable to all classifications of water or wastewater customers (including public and private fire protection customers) and reflects, as nearly as possible, the cost of providing the service. The study shall correspond to the test year proposed revenue requirements (future test year only, if used). Summaries of conclusions and all back-up calculations shall be made part of the submission of the cost of service study, and shall include the following:
a. A description of the allocation methods used. A comparison of the allocated cost of service by class with the present and proposed revenues. A cost of service schedule showing the rate of return produced by present and proposed rates by class of service.
b. Indicate if the method used for establishing the allocation factors in the cost of service study deviates from the previous study submitted in the last rate case. If yes, indicate which allocation factors were changed and discuss the reason for the changes.
c. Supply the average day, the maximum day and the maximum hour deliveries to the system adjusted for storage for the historic test year and 2 prior years. Also provide workpapers, analyses, comparative data or other documentation supporting the estimated maximum day and peak hour demands by customer class reflected in the company’s cost of service study.
d. Explain thoroughly the methodology employed if the company distinguishes between transmission and distribution or collection mains in its allocation of costs.
e. Provide a detailed explanation of how storage is utilized to meet base, maximum day and maximum hour demands.
f. Provide workpapers, calculations and supporting documentation which develop the equivalent meters and equivalent service line weights reflected in the company’s cost of service study.
g. Provide all workpapers and supporting documentation for the fire flow requirement and duration utilized in the cost of service study.
h. Provide a breakdown of the number and size of private fire services according to the general water service class of customer.
i. Provide a calculation of the company’s base cost of water or wastewater per unit of consumption or usage.
j. Provide a detailed cost analysis that supports the company’s customer charges, by meter size, showing all direct and indirect costs included.
2. Provide a listing of negotiated special rate contracts which includes a comparison of revenues under special rate contracts and under tariff rates. Provide the cost of service treatment of any deficiency in revenues resulting from the negotiated special rate contracts. Special rates are defined as rates not contained in the currently effective tariff.
IX. QUALITY OF SERVICE
1. Indicate whether the company is in violation of any provision of the Pennsylvania Safe Drinking Water Act (SDWA) or any rule, regulation or order, or any condition of any permit, variance or exemption granted by the Pennsylvania Department of Environmental Protection (PA-DEP), or its predecessor.
a. Provide information indicating whether the company is in compliance with SDWA provisions at 25 Pa. Code § 109.407 regarding general public notification requirements:
(i) Provide a copy of each public notification given in accordance with this section, since the last rate proceeding.
(ii) Provide a detailed explanation of all actions taken to remedy an acute violation, and to comply with the requirements prescribed by a variance or exemption.
(iii) State whether any fines or penalties were assessed by PA-DEP, and indicate the amounts paid by the company.
b. Provide the most recent copies of all annual consumer confidence reports issued pursuant to SDWA Amendments of 1996 since the last rate proceeding.
(i) Provide any annual consumer confidence reports which reflect violations of State and Federal safe drinking water requirements.
(ii) Explain how these violations were resolved.
2. Indicate whether the company is in compliance with 52 Pa. Code, § 65.6(a) regarding normal operating pressure standards, and with 52 Pa. Code, § 65.6(d) regarding pressure surveys at regular intervals.
a. Provide details on any water pressure problems, lasting longer than 5 days, which had occurred since the last rate proceeding in any part of the water transmission and distribution system.
b. Describe any action taken on a temporary basis, and the long term solutions developed to address any water pressure problems.
3. Provide support to demonstrate that water or wastewater service is being furnished on a continuous basis by supplying a summary of the company’s records of each service interruption greater than 24 hours since the last rate proceeding.
4. Provide a discussion of the company’s policy, or provide a copy of the policy if in written form, on tracking and responding to customer complaints.
a. Provide a summary report demonstrating the company’s compliance with 52 Pa. Code, § 65.3 regarding the full and prompt investigation of service or facility complaints and the recordkeeping requirements of such complaints.
5. Indicate whether the company is in compliance with 52 Pa. Code, § 65.4(b) regarding complete and current mapping of the entire distribution or collection system.
6. Provide a summary report demonstrating the company’s efforts in water conservation, since the last rate proceeding, pursuant to 52 Pa. Code, § 65.20.
7. Provide a discussion of the company’s policy regarding meter requirements, replacements and testing. State if the company’s procedures are in compliance with 52 Pa. Code, § 65.8(b).
a. Provide meter test records as required in 52 Pa. Code, § 65.8(c) for the 50 meters most recently removed from service.
b. Provide a discussion of the company’s policy and history of compliance with 52 Pa. Code, § 65.9 regarding adjustment of bills for meter error within the last year.
X. BALANCE SHEET
1. Provide a comparative balance sheet for the historic test year-end and the preceding year-end.
2. Provide a detail of other physical property, investments in affiliated companies and other investments.
3. Provide the amounts and purpose of special cash accounts as of the historic test year-end.
4. Describe the nature and amounts of notes receivable, accounts receivable from associated companies, and any other receivables, other than customers’ accounts, greater than 15% of the total. Limit the explanation to variances greater than $10,000.
5. 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 3 years.
6. Provide a list of prepayments and give an explanation of special prepayments.
7. Break down and explain in detail any significant items, greater than 15% of the total, in the current assets account listed on the balance sheet. Limit the explanation to variances greater than $10,000.
8. 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 near future.
9. Explain the nature of accounts payable to associated companies. Provide a breakdown by category.
10. Provide breakdown and explanation of other deferred credits as to their origin and disposition policy, for example, amortization.
11. Provide an explanation and method of funding of any reserves, other than depreciation and bad debt appearing on historic balance sheet.
12. Provide an analysis of unappropriated retained earnings for the historic test year and 2 preceding years.
13. Describe the purpose of any advances made by the company to its parent corporation and describe all terms and conditions associated with such advances, including an estimate of future advances or repayments that are expected to occur.
XI. OTHER DATA
1. Provide the company’s monthly balance sheets and income statements for each month of the historic and future test year.
2. Supply a copy of internal and independent audit reports of the historic test year and prior calendar year, noting any exceptions and recommendations and disposition thereof.
3. Provide all monthly or quarterly, or both, budget variance reports to management, or the board of directors, or both, submitted during the past year. Please provide the most recent detailed budget variance report which the company compiled, and update as additional reports are issued.
4. Provide a copy of the company’s most recent operating and capital budgets.
5. Provide a schedule that shows the percentage of unaccounted for water for the test year and 2 prior years. Describe how this amount was determined and explain any steps taken to reduce unaccounted for water. Provide a similar analysis of infiltration for wastewater utilities.
6. Provide a corporate history (include the dates of original incorporation, subsequent mergers, or acquisitions, or both). Indicate all counties and cities and other governmental subdivisions to which service is provided, including service areas outside the state, and the total population in the area served.
Authority The provisions of this § 53.53 issued under the Public Utility Code, 66 Pa.C.S. § § 315, 332, 501, 504—506, 1301, 1302, 1308 and 1311.
Source The provisions of this § 53.53 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 in a position to meet the filing requirements in the new regulations may, upon request, file under these 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. Immediately preceding text appears at serial pages (241276), (213595) to (213672) and (224343).
Cross References This section cited in 52 Pa. Code § 5.412a (relating to electronic submission of pre-served testimony); 52 Pa. Code § 53.10 (relating to letter of transmittal); 52 Pa. Code § 53.52 (relating to applicability; public utilities other than canal, turnpike, tunnel, bridge and wharf companies); and 52 Pa. Code § 53.103 (relating to concurrently furnished information).
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