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Ohio Laws and Rules
An application filed by a waterworks company and/or a sewage disposal system company for an infrastructure improvement surcharge under section 4909.172 of the Revised Code, should contain the basic information necessary to support the company's rate request and shall conform to the information filing requirements set forth in the appendix to this rule. If the company believes that additional information is necessary to support its case, the company should supplement its application as required to support its position. Also, the commission staff may require a company to supply information to supplement these requirements during the course of the staff's investigation.
Appendix
to Rule 4901:1-15-35
Table of Contents
Minimum information filing requirements:
(A) General information
(1) Testimony
(2) Service areas
(3) Legal notice
(4) Certificate of service
(B) Schedules
(1) Schedule 1 - Revenue requirement
(2) Schedule 2 - Plant additions
(3) Schedule 3 - Original cost retired
(4) Schedule 4 - Provision for depreciation
(5) Schedule 5 - Annualized depreciation associated with additions
(6) Schedule 6 - Annualized reduction in depreciation for retirements
(7) Schedule 7 - Rate of return
(8) Schedule 8 - Net operating income return on rate base
(9) Schedule 9 - Tariffs
(10) Schedule 10 - Revenue distribution
(11) Schedule 11 - Customer notice
Minimum information filing requirements:
(1) The company must file the following information as part of its application:
(a) Testimony in support of the application.
(b) An identification of service areas.
(c) A proposed legal notice that includes:
(1) A summary of the effect of the application on ratepayers.
(2) The name, case number, and filing date of the proceeding before the Commission.
(3) A statement that interested parties may request a copy of the application from the applicant or may obtain a copy from the Commission's web site, along with a toll-free telephone number for the applicant and the web site address for the Commission.
(4) A statement that comments may be provided to the Commission. A space should be left in the statement so that the Commission can insert the deadline for filing comments.
(d) A certificate of service of the application for the chief executive of each municipal corporation, the board of township trustees of each township, the board of county commissioners of each county in which affected customers are located, and each party to the applicant's last rate or surcharge case.
(2) The company must provide the following schedules:
(a) Schedule 1 - Revenue Requirement
Provide a jurisdictional financial summary schedule showing the proposed rate base, pre-tax rate of return, and depreciation expense to arrive at a revenue requirement for the infrastructure improvement surcharge.
(b) Schedule 2 - Plant Additions
List eligible infrastructure additions by major property grouping, account, and by month. Such additions must be traceable directly to the general ledger and/or continuing property records, and are used and useful at date certain.
For a waterworks company, such infrastructure may consist of service lines for, and hydrants, mains, and valves installed as a part of, a replacement project for an existing facility. Main extensions that eliminate dead ends to resolve documented water supply problems presenting significant health or safety issues to then existing customers may also be included. Further, additions to infrastructure can include main cleaning or relining, and unreimbursed capital expenditures for facility relocation required by a government entity due to a street or highway project. Finally, minimum land or land rights acquired by the company for any service line, equipment, or facility represents includable infrastructure.
For a sewage disposal system company, infrastructure includes mains and lift stations installed as part of a replacement project for an existing facility, main extensions that resolve documented sewage disposal problems presenting significant health or safety issues to then existing customers. Additionally, infrastructure includes main cleaning, inflow and infiltration elimination, or relining. Further, infrastructure may consist of unreimbursed capital expenditures for facility relocation required by a governmental entity due to a street or highway project. Finally, infrastructure may include minimum land or land rights acquired by the company for any service line, equipment, or facility.
(c) Schedule 3 - Original Cost Retired
List original cost of plant retired, of which there is an eligible replacement, by major property grouping, account, and by month. Such infrastructure is limited to what is identified above under Schedule 2, Plant Additions. Such costs must be traceable directly to the general ledger and/or continuing property records.
(d) Schedule 4 - Provision for Depreciation
List infrastructure provision for depreciation by eligible related plant account and by month. Such infrastructure is limited to what is identified above under Schedule 2, Plant Additions. Such costs must be traceable directly to the general ledger and/or continuing property records.
(e) Schedule 5 - Annualized Depreciation Associated with Additions
Provide the most recent balance of eligible plant additions by major property grouping and account from Schedule 2, Plant Additions, as required to compute depreciation expense. Also, include all applicable current book accrual rates.
(f) Schedule 6 - Annualized Reduction in Depreciation for Retirements
Provide all information as requested on this schedule. This includes the most recent original cost balance of retired plant, of which there is an eligible replacement, by major property grouping and account from Schedule 3, Original Cost Retired, as required to compute depreciation expense. Also, include all applicable current book accrual rates.
(g) Schedules 7a and 7b - Rate of Return
If the date certain proposed in this proceeding is not later than three years from the date that the company's existing rates and tariffs went into effect, prepare Schedule 7 on the basis of the company's last rate case. If the time exceeds three years, prepare a proposed rate of return summary schedule as of the date certain or the most recent available historic calendar quarter showing the calculation of the weighted average cost of capital as illustrated in Schedule 7, lines 1-4.
Also, provide supporting schedules as of the date certain or the most recent available historic calendar quarter for the following:
-- Embedded cost of long-term debt, if any, Schedule 7a.
-- Embedded cost of preferred stock, if any, Schedule 7b. (Cost is computed by dividing dividends by net proceeds from the sale of each preferred stock issue.)
(h) Schedules 8a and 8b - Net Operating Income Return on Rate Base
Schedule 8, with the supporting sub-schedule, calculates the operating income return on rate base using operating income for the year ending the same month as that used for the determination of rate base balance.
Surcharges for infrastructure improvements will be limited to the extent that they will not be expected to result in excess profits being earned by the company, excess profits being defined as returns on equity from regulated activities in excess of those described above. If a surcharge is granted by the Commission, the company's actual and pro forma profitability will be reviewed on an annual basis to determine whether a reduction or elimination of such surcharge or subsequent surcharges is required by this restriction.
During the time the surcharge is in effect, the company will file Schedule 8 annually under the surcharge docket and concurrent with the company's filing of its annual report to the Commission using information for the most recent calendar year. Should the surcharge ultimately be eliminated, it will no longer be necessary to provide this information.
(i) Schedule 9 - Tariffs
Provide a copy of the current tariff schedule and a copy of the proposed tariff surcharge schedule, marked up and coded to illustrate all proposed changes.
(j) Schedule 10 - Revenue Distribution
Demonstrate that the surcharge does not exceed 3 percent of the rate and charges applicable to the affected customer class and in effect on the date the application was filed. Provide all supporting work papers.
Demonstrate that the allowed percentage increase has been distributed uniformly to each affected customer class. Provide all supporting work papers.
Surcharge revenues on Schedule 10 shall equal the revenue requirement shown on Schedule 1.
(k) Schedule 11 - Customer Notice
Provide a copy of the proposed customer notice to be contained with or on the customer's first bill containing the surcharge.
Schedule 1
THE WATER COMPANY
Case No. 00-00-WW-SIC
Annualized Revenue Requirement
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 2
THE WATER COMPANY
Case No. 00-00-WW-SIC
Plant Additions By Month
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 3
THE WATER COMPANY
Case No. 00-00-WW-SIC
Original Cost Retired
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 4
THE WATER COMPANY
Case No. 00-00-WW-SIC
Provision For Depreciation
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 5
THE WATER COMPANY
Case No. 00-00-WW-SIC
Annualized Depreciation Associated With Additions
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 6
THE WATER COMPANY
Case No. 00-00-WW-SIC
Annualized Reduction in Depreciation For Retirements
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 7
THE WATER COMPANY
Case No. 00-00-WW-SIC
Pre-Tax Return Summary
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 8
THE WATER COMPANY
Case No. 00-00-WW-SIC
Calculation of Earned Rate of Return
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
Schedule 8a
THE WATER COMPANY
Case No. 00-00-WW-SIC
Working Capital & Other Rate Base Items
See Schedule at
http://www.registerofohio.state.oh.us/pdfs/4901/1/15/4901$1-15-35_FF_N_APP1_20080812_0928.pdf
R.C.
119.032 review dates:
08/03/2012 and
05/31/2017
Promulgated
Under: 111.15
Statutory
Authority:
4905.04,
4909.172
Rule
Amplifies:
4905.06,
4905.17
Prior
Effective Dates: 8/22/08