Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 7 - Regulatory Commission of Alaska › Chapter 47 - Regulatory Cost Charges for Public Utilities and Pipeline Carriers › Article 2 - Regulatory Cost Charges for Regulated Public Utilities and Pipeline Carriers › 3 AAC 47.040 - Formulae for determination of regulatory cost charge rates

Current through May 31, 2024
(a) The formula for
				  determining individual regulatory cost charge rates for each regulated public
				  utility or pipeline carrier, as a percentage of adjusted gross regulated
				  operating revenue is
RCC = A1 + A2
__________
GR
where,
RCC equals the regulatory cost charge rate applicable to a
					 regulated sector's adjusted gross operating revenue;
A1 equals the portion of the commission's total
					 requirement from regulatory cost charges that is allocated to the regulated
					 sector;
A2 equals the portion of the Department of Law's public
					 advocacy function costs certified under
					 AS
					 42.05.254(h), that is
					 allocated to the regulated sector;
and
GR equals the regulated sector's annual adjusted gross
					 regulated operating revenue in the preceding calendar or annual reporting
					 year.
(b) The formula for
				  determining the portion of the commission's total requirement from regulatory
				  cost charges that is allocated to a regulated sector is
A1 = D + N
where,
A1 equals portion of the commission's total requirement
					 from regulatory cost. charges that is allocated to the regulated sector;
D is the portion of the commission's total requirement from
					 regulatory cost charges that is directly assignable to the regulated sector;
					 and
N is the portion of the commission's total requirement from
					 regulatory cost that is not directly assignable to the regulated sector, but is
					 allocated to the regulated sector; the allocation of the commission's total
					 requirement from regulatory cost charges that is not directly assignable to a
					 regulated sector is based on allocating factors developed to reflect the
					 relative amount of direct hours spent by the commission regulating each sector
					 during the preceding fiscal year.
(c) The formula for determining the
				  commission's total requirement from regulatory cost charges is
R = B - E + X
where,
R equals the commission's total requirement from regulatory
					 cost charges;
B equals the commission's authorized budget for a state
					 fiscal year;
E equals the amount expected to be collected from exempt
					 utilities, from other sources in that fiscal year, and any carryover balance of
					 the regulatory cost charge program receipts account appropriated for that
					 fiscal year; and
X equals an allowance for regulatory cost charges due under
					 this chapter for that fiscal year that the commission or the Department of
					 Revenue is unable to collect.
(d) Notwithstanding (c) of this section, the
				  commission's total requirement from regulatory cost charges may not exceed the
				  maximum percentage of total adjusted gross revenue prescribed in
				  AS
				  42.05.254(a).
(e) For the purpose of developing the
				  allocating factors used in (b) of this section, the commission staff engaged in
				  substantive matters shall maintain records of direct hours worked on each
				  regulated sector on a per pay period basis.
(f) For electric utilities,
(1) the formula for determining the
				  regulatory cost charge rate expressed as a charge per kilowatt-hour is
RCC e = RCC x GR __________ kWhT
where,
RCCe equals the regulatory cost charge rate applicable to
					 kilowatt-hours;
RCC equals the regulatory cost charge rate applicable to
					 electric adjusted gross regulated operating revenue determined under (a) of
					 this section;
GRe equals the total annual adjusted gross regulated
					 operating revenue of electric utilities in the preceding calendar year;
and
kWhT equals the total annual kilowatt-hour sales of
					 regulated electric utilities in the preceding calendar year, modified by
					 subtracting wholesale kilowatt-hour sales in that year;
(2) that have both wholesale and retail
				  sales, the electric utility cost of power that is deducted from retail sales
				  may not include any portion of the cost of power that was accounted for under
				  wholesale sales.