Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 45 - Gas Service Utilities › Subchapter 21 - Homeland Security and Critical Infrastructure › Section 165:45-21-9 - Cost recovery

Current through Vol. 41, No. 20, July 1, 2024
(a) Each
				utility seeking cost recovery of expenditures outside of a general rate review
				related to securing its Critical Infrastructure shall prepare and make
				available for inspection, its Plan and any subsequent Plan Update Reports in
				accordance with this Subchapter.
(b) A utility shall file an application with
				the Commission for cost recovery as provided for within this Subchapter. Cost
				recovery shall be subject to established rate-making principles. Such cost
				recovery shall only occur to the extent the utility has incurred all or a
				portion of its actual security-related costs.
(c) Unless otherwise ordered by the
				Commission, the utility shall have the burden of proving compliance with all of
				the provisions of this Subchapter prior to obtaining any cost recovery for
				security related measures.
(d) Upon
				approval and Order of the Commission, a utility shall be allowed to recover a
				return based on its weighted cost of long-term debt and equity on all capital
				expenditures made for security measures. The utility shall also be allowed to
				recover related depreciation expense and ad valorem taxes. Such recoveries
				shall be based upon similar ratemaking treatment for corresponding cost
				elements from the utility's most recent general rate case.
(e) Upon approval and Order of the
				Commission, a utility shall be allowed to recover expenses typically classified
				as operations and maintenance expenses for ratemaking purposes. The utility may
				request inclusion of any such similar costs incurred as long as these costs are
				directly associated with the security measures taken.
(f) The total costs incurred under this
				Subchapter shall be combined for recovery purposes, for consideration by the
				Commission.
(g) All costs approved
				by the Commission for recovery, shall be recovered from the utility's customers
				through a "Security Cost Rider" based on the projected annual billing units for
				the utility and shall be subject to annual true-up.
(h) Unless otherwise ordered by the
				Commission, a utility shall immediately discontinue recovery of the "Security
				Cost Rider" when the earlier of the following occurs: natural expiration due to
				the full recovery provided for in a Rider granted under this Subchapter or
				forced expiration required pursuant to OAC 165:45-21-9(i) and/or OAC
				165:45-21-9(j). Under no circumstances, shall the utility be permitted to
				double recover Homeland Security and Critical Infrastructure related costs.
(i) Unless otherwise ordered by
				the Commission, any utility with a "Security Cost Rider" currently in effect,
				that files for a general rate change, shall include in the rate case, all
				security-related costs and those costs shall be accorded standard ratemaking
				treatment. A utility shall discontinue its "Security Cost Rider" when the
				change in rates becomes effective upon Final Order in the rate case.
(j) Unless otherwise ordered by the
				Commission, all "Security Cost Riders" approved by the Commission, shall expire
				five years from the initial date of the "Security Cost Rider's" implementation.
(k) Upon the filing of a cost
				recovery request by a utility, Commission Staff, the state Attorney General's
				office (based upon that entity's statutory authority) and all other Authorized
				Participants shall review the cost recovery proposal submitted by the utility
				and file testimony in accordance with:
(1)
				Any applicable protective orders issued by the Commission in the
				security-related cost recovery cause;
(2) OAC
				165:45-21-11(below);
(3) The Commission's Rules of Practice (OAC
				165:5); and
(4) Any other
				protective measures or requirements prescribed by law or the Commission.