California Code of Regulations › Title 20 - Public Utilities and Energy › Division 1 - Public Utilities Commission › Chapter 1 - Rules of Practice and Procedure › Article 3 - Particular Applications › Section 3.2 - (Rule 3.2) Authority to Increase Rates

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Applications for authority to increase
				  rates, or to implement changes that would result in increased rates, shall
				  contain the following data, either in the body of the application or as
				  exhibits annexed thereto or accompanying the application:
(1) A balance sheet as of the latest
				  available date, together with an income statement covering period from close of
				  last year for which an annual report has been filed with the Commission to the
				  date of the balance sheet attached to the application.
(2) A statement of the presently effective
				  rates, fares, tolls, rentals, or charges which are proposed to be increased, or
				  of the classification, contract, practice, or rule proposed to be altered. Such
				  statement need not be in tariff form.
(3) A statement of the proposed increases or
				  changes which will result in increases, which applicant requests authority to
				  make effective. Such statement need not be in tariff form, but shall set forth
				  the proposed rate structure with reasonable clarity. Except as to carriers, the
				  statement shall also show the amount of proposed gross revenues, together with
				  the percentage of increase, if in excess of one percent, estimated to result
				  from the proposed rates. In the case of common carriers, where a general rate
				  increase application is filed, the statement shall include an estimate of the
				  amount of additional annual gross revenue estimated to result from the
				  increase, which shall be based on the amount of involved traffic handled for
				  the preceding calendar year and shall indicate the percentage by which such
				  estimate exceeds the gross revenues on the involved traffic for the preceding
				  calendar year, if more than one percent. In the case of gas, electric,
				  telephone, telegraph, water and heat utilities, the proposed revenue increase,
				  including the percentage of increase, if in excess of one percent, shall be
				  shown by appropriate rate classifications. If the percentage of increase in
				  revenue is one percent or less, applicant shall so state in its
				  application.
(4) A general rate
				  increase application shall contain a general description of applicant's
				  property and equipment, or reference to such description in a recent prior
				  application, and a statement of the original cost thereof, together with a
				  statement of the depreciation reserve applicable thereto. If it is impossible
				  to state original cost, the facts creating such impossibility shall be set
				  forth.
(5) A summary of earnings
				  (rate of return summary) on a depreciated rate base for the test period or
				  periods upon which applicant bases its justification for an increase. If
				  adjusted or estimated results are shown for successive periods, they should be
				  on a consistent basis. Wherever adjusted results are shown, the recorded
				  results for the same periods should also be shown.
(6) In rate applications involving a utility
				  having more than one department, district or exchange, the earnings results
				  should be presented for the total utility operations for the company, as well
				  as for the part of the operation for which rate increases are sought.
(7) The application of a gas, electric,
				  telephone, telegraph, water or heat utility for a general rate increase shall
				  contain a statement by the applicant as to which of the optional methods
				  provided in the Internal Revenue Code applicant has elected to employ in
				  computing the depreciation deduction for the purpose of determining its federal
				  income tax payments, and whether applicant has used the same method or methods
				  in calculating federal income taxes for the test period for rate fixing
				  purposes.
(8) The application of a
				  gas, electric, telephone, telegraph, water or heat utility for a general rate
				  increase shall contain a statement corresponding to the statement required by
				  Section 2 of General Order No. 104-A, as
				  to all known matters designated by said section for inclusion in the annual
				  report but occurring or proposed subsequent to the period covered by the last
				  annual report filed by applicant; or, if no such matters are known to have so
				  occurred or are known to be then proposed, a statement to that effect;
				  provided, that an applicant whose capital stock, or that of its parent company,
				  is listed on a "national securities exchange," as defined in the Securities
				  Exchange Act of 1934 (15
				  U.S.C. 78(a) et seq.) in
				  lieu of the statement required by this rule shall include in the application a
				  copy of the latest proxy statement sent to stockholders by it or its parent
				  company if not previously filed with the Commission, provided, further, that an
				  applicant whose capital stock, or that of its parent company, is registered
				  with the Securities and Exchange Commission (SEC) pursuant to the provisions of
				  Section 12(g) of said
				  Securities Exchange Act of 1934, in lieu of the statement required by this rule
				  shall include in the application a copy of the latest proxy statement sent to
				  stockholders by it or its parent company containing the information required by
				  the rules of the SEC if not previously filed with the Commission.
(9) In a general rate increase application
				  involving a telephone utility having an annual operating revenue exceeding
				  $25,000, the rate of return on a depreciated rate base shall be shown
				  separately for its aggregate exchange operations, for its toll operations, and
				  for the total telephone utility operations of applicant.
(10) The application of electrical, gas,
				  heat, telephone, water, or sewer system corporations shall separately state
				  whether or not the increase reflects and passes through to customers only
				  increased costs to the corporation for the services or commodities furnished by
				  it.