North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 11 - UTILITIES COMMISSION › Chapter 1 › Section 11 R01-17 - FILING OF INCREASED RATES, APPLICATION FOR AUTHORITY TO ADJUST RATES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Application of Rule. - This rule does not
				apply to the establishment of a rate or charge for a new service, nor to an
				adjustment or a change of a particular rate or charge for the purpose of
				eliminating inequities, preferences, or discriminations. It does apply to all
				applications for or filings of a general increase in rates, fares, or charges
				for revenue purposes or to increase the rate of return on investment or to
				change transportation rates, fares, etc. All Class A and B electric, telephone,
				natural gas, water, and sewer utilities shall file written letters of intent to
				file general rate applications with the Commission thirty (30) days in advance
				of any filing thereof.
(b) Contents
				of Filing or Application. - The filing or application shall clearly set out the
				reasons or conditions which, in the opinion of the applicant, warrant an
				increase in applicant's rates, fares, or charges, whether such increase is to
				be brought about by a change in rate schedules, by a change in any
				classification, contract, practice, rule, regulation, or otherwise, and said
				application shall contain, among other things, the following data, either
				embodied in the application or attached thereto as exhibits:
(1) Present Charges. - A statement (not
				necessarily in tariff form) showing the rates, fares, tolls, or other charges
				presently in effect which the applicant seeks to increase.
(2) Proposed Charges. - A statement showing
				the rates, fares, tolls, or other charges which the applicant seeks to place in
				effect.
(3) Original Cost. - A
				statement or exhibit showing the original cost of all property of the applicant
				used or useful in the public service to which such proposed increased rates
				relate. If the original cost of any such property cannot be accurately
				determined, such facts should be stated and the best estimate of the original
				cost given. In case such property consists of plants or facilities which have
				been devoted to the public use by some other person, municipality, or utility,
				and subsequently purchased by the applicant, the purchase price of such plants
				or facilities must be shown, and also the original cost and accrued
				depreciation at the time of purchase must be shown, if known.
(4) Present Fair Value. - If applicant
				intends to offer proof as to the present fair value of its property, the
				application shall state the nature of such proof in such form and detail as to
				disclose fully the method used in obtaining such proof and the accuracy
				thereof. In the preparation of such data, it is recommended that the various
				property accounts be identified by the account numbers used in the Uniform
				System of Accounts.
(5)
				Depreciation. - The application shall show the accrued depreciation on said
				property as shown on applicant's books and the rate or method used in computing
				the amount charged to depreciation.
(6) Material and Supplies. - A statement
				showing the cost of material and supplies which the applicant had on hand on
				the closing date of the twelve months' period referred to in (8) below. If the
				amount on hand is more or less than reasonably necessary for efficient and
				economical operation of the business, an explanation should be made.
(7) Cash Working Capital. - A statement
				showing the amount of cash working capital which the petitioner keeps on hand
				and finds necessary to keep on hand for the efficient, economical operation of
				the business.
(8) Operating
				Experience. - A statement covering the last twelve consecutive months for which
				data are available, showing
a. The gross
				operating revenues received,
b. The
				expenses incurred, including operating expenses, depreciation, and taxes,
				and
c. The net operating income for
				return on investment.
(9) Effect of Proposed Increase. - A
				statement showing the applicant's estimate of
a. The additional annual gross revenue which
				the proposed increase in rates and charges will produce,
b. The additional annual expenses anticipated
				by reason of such additional gross revenue,
c. The net additional revenue which the
				proposed increase in rates will produce, and
d. The rate of return which the applicant
				estimates it will receive on the value of its property after giving effect to
				the proposed increase in rates.
e.
				This statement is to include the total capital structure of the utility before
				and after the proposed increase. Ratios for each component of the capital
				structure are to be shown with the common stockholders' equity capital and the
				net income used in the rate of return on the common equity calculation clearly
				identifiable.
f. Every general rate
				application shall contain a one-page Summary of all proposed increases and
				changes affecting customers and such Summary shall appear as Appendix
				1.
g. Rescinded by NCUC Docket No.
				M-100, Sub 82, 4/27/81.
(10) Balance Sheet. - The application shall
				include a balance sheet and income statement for a recent representative
				period.
(11) Working Papers to Be
				Available. - Supporting data and working papers underlying the above exhibits
				shall be made available promptly upon request in the offices of the Commission
				or Public Staff in Raleigh or in an office of the public utility in North
				Carolina designated by the Commission, for examination by all interested
				parties.
(12) All general rate case
				applications of Class A and B electric, telephone and natural gas companies,
				and Class A water and sewer companies shall be accompanied by the information
				specified in the following Commission forms respectively:
For Class A and B Electric Utilities:
(a) NCUC Form E-1, Rate Case Information
				Report - Electric Companies For Class A and B Telephone Utilities:
(b) NCUC Form P-1, Rate Case Information
				Report - Telephone Companies For Class A and B Natural Gas Utilities:
(c) NCUC Form G-1, Rate Case Information
				Report - Natural Gas Companies For Class A Water and Sewer Utilities:
(d) NCUC Form W-1, Rate Case Information
				Report - Water and Sewer Companies
(13) Repealed.
In the event any affected utility wishes to rely on
				  G.S.
				  62-133(c) and offer evidence
				  on actual changes based on circumstances and events occurring up to the time
				  the hearing is closed, such utility should file with any general rate
				  application detailed estimates of any such data and such estimates should be
				  expressly identified and presented in the context of the filed test year data
				  and, if possible, in the context of a twelve (12) month period of time ending
				  the last day of the month nearest and following 120 days from the date of the
				  application. Said period of time should contain the necessary normalizations
				  and annualizations of all revenues, expenses and rate base items necessary for
				  the Commission to properly investigate the impact of any individual
				  circumstance or event occurring after the test period cited by the applicant in
				  support of its application. Any estimate made shall be filed in sufficient
				  detail for review by the Commission.