860-034-0397 Use of Deferred Accounting by Small Telecommunications Utilities (1) Definitions: As used in this rule: (a) "Amortization" means the inclusion in rates of an amount which has been deferred under ORS 759.200 and is designed to eliminate, over time, the balance in an authorized deferred account. Amortization excludes the normal positive and negative fluctuations in a balancing account; and (b) "Deferred accounting" means recording an amount, as allowed by ORS 759.200, in a balance sheet account for later reflection in rates. (2) Expiration: Any authorization to use a deferred account shall expire 12 months from the date the deferral is authorized to begin. If a deferral under ORS 759.200 is reauthorized, the reauthorization shall expire 12 months from the date the reauthorization becomes effective. (3) Contents of Application: Application for deferred accounting, by a small telecommunications utility or a customer, shall include: (a) A description of the small telecommunications utility expense or revenue for which deferred accounting is requested; (b) The reason(s) deferred accounting is being requested and a reference to the section(s) of ORS 759.200 under which deferral may be authorized; (c) The account proposed for recording of the amounts to be deferred and the account which would be used for recording the amounts in the absence of approval of deferred accounting; (d) An estimate of the amounts to be recorded in the deferred account for the 12-month period after the application; and (e) A copy of the notice of application for deferred accounting and list of persons served with the notice. (4) Reauthorization: Application for reauthorization to use a deferred account shall be made not more than 60 days before the expiration of the previous authorization for the deferral. Application for reauthorization shall include the requirements in subsections (3)(a) through (3)(e) of this rule and the following information: (a) A description and explanation of the entries in the deferred account to the date of the application for reauthorization; and (b) The reason(s) for continuation of deferred accounting. (5) Exceptions: Authorization under ORS 759.200 to use a deferred account is necessary only to add amounts to an account, not to retain an existing account balance and not to amortize amounts which have been entered in an account under an authorization by the Commission. Interest, once authorized to accrue on unamortized balances in an account, may be added to the account without further authorization by the Commission, even though authorization to add other amounts to an account has expired. (6) Notice of Application: The applicant shall serve a notice of application upon all persons who were parties in the small telecommunications utility’s last general rate case. If the applicant is other than a small telecommunications utility, the applicant shall serve a copy of the application upon the affected utility. A notice of application shall include: (a) A statement that the applicant has applied to the Commission for authorization to use deferred accounting, or for an order requiring that deferred accounting be used by a small telecommunications utility; (b) A description of the utility expense or revenue for which deferred accounting is requested; (c) The way an interested person can obtain a copy of the application; (d) A statement that any person may submit to the Commission written comment on the application by the date in the notice, which may be no sooner than 25 days from the date of the application; and (e) A statement that the granting of the application will not authorize a change in rates, but will permit the Commission to consider allowing such deferred amounts in rates in a subsequent proceeding. (7) Public Meetings: Unless otherwise ordered by the Commission, applications for use of deferred accounting will be considered at the Commission’s Public Meetings. (8) Reply Comments: Within ten days after the due date for comments on the application from interested persons, the applicant, and the small telecommunications utility if the utility is not the applicant, reply comments may be filed with the Commission and served on persons who filed the initial comments on the application. (9) Amortization: Amortization in rates of a deferred amount shall only be allowed in a rate proceeding, whether initiated by the small telecommunications utility or another party. The Commission may authorize amortization of such amounts only for utility expenses or revenues for which the Commission previously has authorized deferred accounting. Upon request for amortization of a deferred account, the small telecommunications utility shall provide the Commission with its financial results for a 12-month period or for multiple 12-month periods to allow the Commission to perform an earnings review. The period selected for the earnings review will encompass all or part of the period when the deferral took place or must be reasonably representative of the deferral period. Unless authorized by the Commission to do otherwise: (a) A small telecommunications utility shall request that amortizations of deferred accounts commence no later than one year from the date that deferrals cease for that particular account; and (b) In the case of ongoing balancing accounts, the small telecommunications utility shall request amortization at least annually, unless amortization of the balancing account is then in effect. Statutory/Other Authority: ORS 183, 756 & 759 Statutes/Other Implemented: ORS 756.040 & 759.045 History: PUC 15-2001, f. & cert. ef. 6-21-01 PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0560 PUC 12-1998, f. & cert. ef. 5-7-98 PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185)