New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 1 - RULES OF PRACTICE › Subchapter 5 - PETITIONS › Section 14:1-5.12 - Tariff filings or petitions that propose increases in charges to customers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Tariff filings or petitions for the
				purpose of making effective or making revisions, changes, or alterations of
				existing tariffs; and which propose to increase any rate, fare, toll, rental,
				or charge to alter any classification, practice, rule, or regulation as to
				result in such an increase, other than filings to effectuate the operation of
				an existing fuel or raw materials adjustment clause, shall conform to the
				provisions at
				N.J.A.C.
				14:1-4.2A, 5.1, 5.2, 5.3, and 5.4, to the
				extent applicable; and shall in the body thereof, or in attached exhibits,
				contain all applicable information and data set forth at
				N.J.A.C.
				14:1-5.11; and, in addition, shall contain
				the following information and financial statements, which shall be prepared in
				accordance with the applicable Uniform System of Accounts:
1. A comparative balance sheet for the most
				recent three-year period (calendar year or fiscal year);
2. A comparative income statement for the
				most recent three-year period (calendar year or fiscal year);
3. A balance sheet at the most recent date
				available;
4. A statement of the
				amount of revenue derived in the calendar year last preceding the institution
				of the proceedings from the intrastate sales of the product supplied, or
				intrastate service rendered, the rates, tolls, fares or charges for which are
				the subject matter of the filing;
5. A pro forma income statement reflecting
				operating income at present and proposed rates and an explanation of all
				adjustments thereon, as well as a calculation showing the indicated rate of
				return on the average net investment for the same period as that covered by the
				pro forma income statement, that is, investment in plant facilities plus
				supplies and working capital to the extent claimed, less the reserve for
				depreciation and advances and contributions for facilities;
6. If the request for rate relief is based
				upon 48:2-21.2, there shall be included, in lieu of the requirements of (a)5
				above, a statement showing that the facts of the particular situation meet the
				statutory requirements;
7. In
				providing the information required at (a)5 and 6 above, a company may also
				file, in addition to the new rates proposed to become effective, alternative
				rate changes designed to produce the full revenue request, which alternatives
				are illustrative of the application of other possible rate designs to the
				filing;
8. An itemized schedule
				showing all payments or accruals to affiliated companies or organizations and
				to those who own in excess of five percent of the utility's capital stock
				regardless of the form or manner in which such charges are paid or accrued and
				an explanation of the service performed for such charges;
9. A copy of the form of notice to customers;
				and
10. If a company is part of a
				family of companies that files a consolidated Federal income tax return, that
				company shall include in its petition a consolidated tax adjustment (CTA)
				calculation using the rate base method, which allows the parent company to keep
				certain tax savings, while requiring the petitioner to reflect the savings by
				reducing the rate base upon which the utility's return is determined. The CTA
				calculation must include all supporting information and documents necessary for
				the Board to determine and implement an appropriate CTA calculation pursuant to
				this section. A CTA provides a mechanism that the Board will utilize in rate
				cases, so that ratepayers should share a specified portion of the tax savings
				achieved from the filing of a consolidated tax return. Required information and
				supporting documents include, but are not limited to, a schedule showing each
				affiliate company's taxable income/loss by year, an indication whether the
				affiliate is a regulated utility company or not, the statutory Federal income
				tax requirement for each year, if any, and the alternative minimum tax
				requirement for each year, if any. The review period for the CTA calculation
				shall be for five consecutive tax years, including the complete tax year within
				the utility's proposed test year. The calculated CTA shall be allocated, so
				that the rate base shall be reduced by 100 percent of the full CTA. The
				transmission portion of an electric distribution company's income shall not be
				included in the calculation of CTA.