Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 10 - Utilities › Section 20 CSR 4240-10.020 - Income on Depreciation Fund Investments

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule prescribes the use of income on
				  investments from depreciation funds and the means for accounting for that
				  income.
(1) In the process of
				determining the reasonableness of rates for service, income shall be determined
				on the depreciation funds of the gas, electric, water, telephone, and heating
				utilities pertaining to their properties used and useful in the public service
				in Missouri and shall be applied in reduction of the annual charges to
				operating income of those utilities.
(2) The income from the investment of monies
				in depreciation funds shall be computed at the rate of three percent (3%) per
				annum of the principal amount of the depreciation funds.
(3) The principal amount of depreciation
				funds of any such utility, for the purposes of this rule, shall be deemed to be
				equivalent to the balance in the depreciation reserve account of any such
				utility regardless of whether or not any such depreciation reserve account may
				be represented by a segregated fund ear-marked for that purpose; provided,
				however, that the principal amount of the depreciation funds may be adjusted by
				the portion(s) of funds which may have been provided under circumstances other
				than by charges to operating income or otherwise, these adjustments to be
				subject to the approval of the commission. The terms depreciation funds and
				depreciation reserve accounts shall be deemed to include the terms retirement
				funds and retirement reserve accounts.
(4) The rate of three percent (3%) per annum
				referred to in section (3) shall be applied in the case of each gas, electric,
				water, telephone, and heating utility of Missouri; provided, however, that
				modification of the rate may be made upon the commission's own motion or upon
				proper showing by a utility that the rate is not reasonably and equitably
				applicable to it.
(5) Affected
				utilities shall prepare and include in their annual reports to the commission,
				and, in the reports that may be required by the commission from time-to-time,
				schedules showing for the year or period covered by these reports the income
				from the investment of monies in depreciation funds. The schedules referred to
				shall be in the form prescribed by this commission and shall include, among
				other things that may be prescribed, the principal amount of depreciation funds
				as represented by balances in depreciation reserve accounts, any adjustments of
				the depreciation funds and accounts with complete details and explanations of
				them, and the amount of the income from the investment of monies in
				depreciation funds computed at the rate of three percent (3%) per annum or such
				other rate as may be prescribed by order of this commission.
(6) The commission shall retain jurisdiction
				in this matter for the purpose of making any change(s) in the interest rate
				prescribed in section (2) that may be warranted.
*Original authority: 392.280, RSMo 1939, amended 1987, 1993
					 and 393.260, RSMo 1939, amended 1967.