Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 70 - Minimum Standard Filing Requirements in Support of a Request by a Public Utility Doing Business in Oklahoma for a Proposed General Rate Change › Subchapter 5 - Filing Requirements - Class A or B Utilities › Part 5 - SUPPLEMENTAL PACKAGE › Section 165:70-5-26 - Section F - Capital and cost of money

Current through Vol. 41, No. 20, July 1, 2024
Section F - Capital and cost of money of the supplemental
					 package shall contain workpapers and documentation as follows (to the extent
					 such information is contained in the application package, these workpapers
					 shall only contain a cross-reference to such information):
(1) For investor-owned utilities (including
				  Class A telephone companies):
(A) W/P F-1 -
				  Weighted Average Cost of Capital: A schedule providing the utility's claimed
				  overall rate of return as a weighted average of each class of capital based
				  upon the utility's capitalization at the end of the test year along with any
				  pro forma adjustments. The cost of debt capital, preferred stock capital, the
				  claimed return on stockholders' equity, and the component amounts of each class
				  of capital shall be presented.
(B)
				  W/P F-2 - Weighted Average Cost of Preferred Stock: A schedule providing the
				  weighted average cost of preferred stock capital. List each stock issue for
				  each class and series of preferred stock outstanding according to the balance
				  sheet as of the end of the test year. Preferred stock issued since the end of
				  the test year, but prior to filing, shall be included in the schedule and
				  footnoted. The cost of money calculated will be the dividend rate divided by
				  the net proceeds as a percent of par value or stated value for issues not
				  subject to mandatory redemptions and issues with variable dividend rates. For
				  fixed-rate preferred stock issues with mandatory redemption, the cost of money
				  shall reflect the yield to maturity method (YTM) for each issue. The YTM shall
				  be calculated based on the issuance date, redemption date, sinking fund
				  requirements, dividend rate, the par value or stated value, and net proceeds at
				  issuance.
(i) W/P F-2-1 - Sinking Funds: A
				  schedule for each issue of preferred stock requiring mandatory redemptions
				  specifying the date and amount of each redemption.
(ii) W/P F-2-2 - Accounting Method: A
				  workpaper providing a description of the accounting method used to record
				  issuance expenses, premiums or discounts at issuance, gains or losses on stock
				  redemption and annual amortization of such amounts for ratemaking purposes as
				  well as financial reporting purposes.
(C) W/P F-3 - Weighted Average Cost of Debt:
				  A schedule of the weighted average cost of long-term debt capital. List each
				  debt issue for each class and series of long-term debt outstanding as of the
				  end of the test year. Debt issued since the end of the test year, but prior to
				  filing, shall be included in the schedule and footnoted. Capital lease
				  obligations shall only be included if the recovery of lease payments is not
				  being requested through operating expense. The balance of any capital leases
				  removed from the debt structure shall be footnoted. For variable-rate debt
				  issues, the cost of debt is the interest rate divided by net proceeds as a
				  percent of par value. For capital lease obligations, the cost of debt shall be
				  the effective annual rate as determined in accordance with generally accepted
				  accounting principles. This schedule shall not include notes payable to
				  affiliated entities, unless claimed in the utility's revenue requirement.
(i) W/P F-3-1 - Sinking Funds: A schedule for
				  each debt issue requiring mandatory redemptions specifying the date and amount
				  of each redemption.
(ii) W/P F-3-2
				  - Gains or Losses on Reacquired Debt: A listing of gains or losses on
				  reacquired debt that are not associated with a particular refunding issue, with
				  an appropriate adjustment to the unamortized balance of the gain or
				  loss.
(D) W/P F-4 -
				  Notes Payable: A schedule providing information pertaining to the utility's
				  notes payable, even if notes payable are not included in the capital structure
				  provided in W/P F-1. The schedule shall contain a listing of notes outstanding
				  at the end of the test year, including each note's maturity date, face amount,
				  and interest rate. The calculation of the cost of notes payable shall reflect
				  the yield to maturity (YTM) for all fixed-rate issues. The YTM shall be
				  calculated based on the issuance date, maturity date, interest rate, principal
				  amount, and net proceeds at issuance. For variable-rate notes payable, the cost
				  of the note shall be the effective annual interest rate divided by net proceeds
				  as a percent of the principal amount of the issue. This schedule shall not
				  include notes payable to affiliated entities, unless claimed in the utility's
				  revenue requirement.
(i) W/P F-4-1 - Weighted
				  Average Cost of Notes Outstanding: A workpaper providing the calculation of the
				  weighted average cost of notes outstanding at test year end.
(ii) W/P F-4-2 - Notes Payable Outstanding by
				  Quarter: A schedule of the amount of notes payable outstanding at the end of
				  each quarter for the past two years.
(E) W/P F-5 - Security Issuance Restrictions:
				  A schedule providing a description and calculation of the most restrictive
				  financial tests as of the end of the test year pertaining to the issuance of
				  securities or the maintenance of banking lines of credit. For each class of
				  securities (first mortgage bonds, unsecured debentures, commercial paper,
				  preferred stock, etc.) or line of credit, provide a description of these
				  financial tests (interest coverage, fixed charge coverage, maintenance of
				  shareholders' equity, etc.) and copies of the relevant language contained in
				  the governing documents (mortgage agreements, articles of incorporation, credit
				  agreements, etc.). For each financial test, provide a calculation of the
				  relevant financial ratio as of the end of the test year and the most recent
				  fiscal year, including all supporting data.
(F) W/P F-6 - Rating Agency Reports: A copy
				  of all credit rating analyses or investment reports on the utility and its
				  parent company, if applicable, published during the most recent twelve-month
				  period and in the possession of the utility. If unable to provide a copy due to
				  copyright law restrictions, provide the date and source of the report. This
				  shall include, but is not limited to, reports by Moody's, Standard &
				  Poor's, Fitch Investor's Service, and Duff and Phelps.
(G) W/P F-7 - Quarterly Dividends: A schedule
				  of quarterly dividends paid during the test year, and the first preceding year,
				  by per share amount, total amount and date. Any borrowings which were made to
				  maintain the level or growth of dividends shall also be noted.