Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 656 - QUALIFYING INFRASTRUCTURE PLANT SURCHARGE › Section 656.60 - Determination of the Qualifying Infrastructure Plant Surcharge Percentage

Current through Register Vol. 48, No. 28, July 12, 2024
a) The QIP surcharge
			 percentage shall be expressed as a percentage carried to two decimal places. The QIP
			 surcharge percentage shall be applied to the total amount billed to each customer
			 located in the same rate zone based on the utility's otherwise applicable rates and
			 charges. The QIP surcharge percentage shall not be applied to the exclusions listed
			 in Section
			 656.30(a).
b) In calculating the QIP surcharge percentage,
			 the utility may choose either annual prospective operation or quarterly historical
			 operation based on QIP investment data for a prior three-month period. Annual
			 prospective operation may be selected only if the utility's immediately preceding
			 rate case for the rate zone utilized a future test year as defined in 83 Ill. Adm.
			 Code 287285 and the utility submits the information required by Section
			 656.70(d)(76).
1) Annual Prospective Operation
Utilities choosing annual prospective operation shall determine the
				QIP surcharge percentage for the operation year using the following formula:
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Where:
S% = QIP surcharge percentage.
NetQIP = The average forecasted cost of the investment in QIP for
				the rate zone for the operation year less forecasted accumulated depreciation and
				accumulated deferred income taxes (ADIT) in QIP for the rate zone for the operation
				year. The average forecasted cost of QIP, net of depreciation and any ADIT
				liabilities (net of deferred tax assets) resulting from the QIP, shall be computed
				by using an average of 13 end-of-month balances of QIP, less-and accumulated
				depreciation and ADIT for the period from December 31 of the year preceding the
				operation year through December 31 of the operation year.
AdjNetQIP = The actual amount of netQIP as of the end of the QIP
				forecast period used in the utility's last rate case for the rate zone less the
				amount of NetQIP the Commission approved to be added to the utility's rate base as
				of the end of the QIP forecast period.
PTR = Pre-tax return as described in Section
				656.50(a)(1).
Net Dep = Net depreciation expenses related to the average
				investment in QIP for the rate zone for the operation year. Depreciation expenses
				shall be calculated by multiplying the average forecasted cost of the investment in
				QIP by plant account, net of retirements, by the approved depreciation rates for the
				respective accounts in which the specific items included in the average QIP
				investment are recorded. The average forecasted cost of the investment in QIP by
				plant account, net of retirements, shall be computed by using an average of 13
				end-of-the-month balances of QIP by plant account and retirements for the period
				from December 31 of the year preceding the operation year through December 31 of the
				operation year.
AdjNetDep = The actual amount of NetDep applicable to the QIP
				forecast period used in the utility's last rate case for the rate zone less the
				amount of NetDep that the Commission approved for the QIP forecast period used in
				the utility's last rate case for the rate zone.
R = Utility-determined reconciliation component (R component)
				calculated for the reconciliation year under the reconciliation feature as described
				in Section
				656.80(d).
				The reconciliation component shall be collected over nine months from April through
				December.
O = The Commission-ordered adjustment component
(O component).
INT = The calculated interest attributable to the 0 component. This
				interest shall be calculated as described in Section
				656.80(i).
Om = The Commission-ordered O component multiplier.
Om is a timing factor applied to the O component and the INT to
				allow for the collection of the O component and the INT over the remainder of the
				operation year. For example, if the O component and the INT were included in the QIP
				surcharge percentage on January 1, the Om would be 1.00. Similarly, if the O
				component and the INT were included in the QIP surcharge percentage on April 1, the
				Om would be 1.33.
PAR = The projected total water or sewer QIP base rate revenues, as
				applicable, for the rate zone for the period from January 1 through December 31. The
				projected revenue shall not include the exclusions listed in Section
				656.30(a).
Following the final order in each rate case, and before the
				Effective Month that will initiate the inclusion of AdjNetQIP and AdjNetDep, the
				utility shall file a public document in the rate case that provides the calculation
				of AdjNetQIP and AdjNetDep, including each component used to determine AdjNetQIP and
				AdjNetDep.
2) Quarterly
			 Historical Operation
Utilities choosing quarterly historical operation shall determine
				the QIP surcharge percentage for the quarter using the following formula:
Click here to view
				image
Where:
S% = QIP surcharge percentage.
NetQIP = Original cost of QIP less accumulated depreciation and any
				accumulated deferred income tax (ADIT) liabilities net of deferred tax assets
				resulting from the QIP for the rate zone. NetQIP shall be the level of investment in
				QIP existing at the end of the calendar month in which an investment sheet is filed,
				net of depreciation and any ADIT liabilities (net of deferred tax assets) resulting
				from the QIP.
AdjNetQIP = The actual amount of NetQIP as of the end of the QIP
				forecast period used in the utility's last rate case for the rate zone less the
				amount of NetQIP the Commission approved to be added to the utility's rate base as
				of the end of the QIP forecast period.
PTR = Pre-tax return as described in Section
				656.50(a)(1).
NetDep = Net quarterly depreciation expense applicable to NetQIP
				less the quarterly depreciation applicable to the plant being retired.
AdjNetDep = The actual amount of NetDep applicable to the QIP
				forecast period used in the utility's last rate case for the rate zone less the
				amount of NetDep that the Commission approved for the QIP forecast period used in
				the utility's last rate case for the rate zone.
R = Utility-determined reconciliation component calculated for the
				reconciliation year under the reconciliation feature as described in Section
				656.80(d).
				The reconciliation component shall be collected over nine months from April through
				December. No reconciliation component amount shall be included for the January
				through March quarter.
O = Commission-ordered adjustment component.
INT = The calculated interest attributable to the O component. This
				interest shall be calculated as described in Section
				656.80(i).
Om = The Commission-ordered O component multiplier. Om is a timing
				factor applied to the O component and the INT to allow for the collection of the O
				component and the INT over the remainder of the operation year. For example, if the
				O component and the INT were included in the QIP surcharge percentage on January 1,
				the Om would be 0.25. Similarly, if the O component and the INT were included in the
				QIP surcharge percentage on April 1, the Om would be .33.
PQR = Projected quarterly water or sewer QIP base rate revenues, as
				applicable, for the rate zone during the calendar quarter when the QIP surcharge
				percentage shall be in effect. The projected quarterly revenue shall not include the
				exclusions listed in Section
				656.30(a).
Following the final order in each rate case, and before the
				Effective Month that will initiate the inclusion of AdjNetQIP and AdjNetDep, the
				utility shall file a public document in the rate case that provides the calculation
				of AdjNetQIP and AdjNetDep, including each component used to determine AdjNetQIP and
				AdjNetDep.