North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 11 - UTILITIES COMMISSION › Chapter 8 › Article 11 - RESOURCE PLANNING AND CERTIFICATION › Section 11 R08-70 - COST RECOVERY FOR COSTS INCURRED BY AN ELECTRIC PUBLIC UTILITY TO ACQUIRE, OPERATE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Definitions.
(1) Unless listed below, the definitions of
				  all terms used in this rule shall be as set forth in
				  G.S.
				  62-133.14.
(2) "Acquired plant" means a joint agency's
				  proportional ownership interest in electric generating facilities purchased by
				  an electric public utility prior to December 31, 2016.
(3) "Acquisition costs" means the amount paid
				  by an electric public utility on or before December 31, 2016, to acquire the
				  proportional ownership interest in electric generating facilities from a joint
				  agency, including the amount paid above the net book value of the generating
				  facilities. Acquisition costs include the amounts recorded by the joint agency
				  in its accounting records for plant, accumulated depreciation, net nuclear
				  fuel, spare parts, fuel and materials and supplies inventories, construction
				  work in progress, and any other items related to the acquired plant, plus the
				  amount paid by an electric public utility above the net book value of the
				  generating facilities.
(4)
				  "Financing costs" means the debt and equity return on the electric public
				  utility's average rate base investment determined using the weighted average
				  net of tax cost of capital as authorized by the Commission in the electric
				  public utility's most recent general rate case, including gross-up for income
				  taxes.
(5) "Joint agency" means a
				  joint agency established under Chapter 159B of the General Statutes.
(6) "Levelized" means an even amount of
				  revenue requirement over a period of time that is equivalent to the present
				  value of the stream of revenue requirements that would be determined for the
				  same period of time based upon the declining book value of the items subject to
				  the levelization. The return to be used in the present value calculations is
				  based on the net of tax rate of return authorized by the Commission in the
				  utility's last general rate case.
(7) "Non-fuel operating costs" means the
				  reasonable and prudent costs incurred to operate and maintain electric plant in
				  service and the related depreciation and amortization expense, nuclear
				  decommissioning expense, Commission regulatory fee, income taxes and property
				  taxes, but excluding costs recoverable under
				  G.S.
				  62-133.2.
(8) "Joint Agency Asset rider" means a charge
				  or rate established by the Commission annually pursuant to
				  G.S.
				  62-133.14 to allow an electric public utility
				  to recover the North Carolina retail portion of all reasonable and prudent
				  costs incurred by the electric public utility to acquire, operate and maintain
				  the acquired plant, as well as reasonable and prudent financing costs and
				  non-fuel operating costs related to capital investments in the acquired
				  plant.
(9) "Rate period" means the
				  period during which the Joint Agency Asset rider established under this rule
				  will be in effect. For each public utility, this period will be the same as the
				  period during which the rider established under Rule R8-55 is in effect, unless
				  otherwise ordered by the Commission.
(10) "Test period" shall be the calendar year
				  that precedes the end of the test period for each electric public utility for
				  purposes of Rule R8-55, unless otherwise ordered by the Commission.