Virginia Administrative Code › Title 20 - PUBLIC UTILITIES AND TELECOMMUNICATIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 204 - RULES GOVERNING UTILITY RATE APPLICATIONS AND ANNUAL INFORMATIONAL FILINGS OF INVESTOR-OWNED ELECTRIC UTILITIES › Section 20VAC5-204-90 - Instructions for Schedules and exhibits for this chapter

Current through Register Vol. 40, No. 24, July 15, 2024
The following instructions for schedules and exhibits are to
				  be used in conjunction with this chapter:
Schedule 1 - Historical Profitability and Market
				  Data
Instructions: Using the format of Form Schedule 1 and the
				  following definitions, provide the data for the test period and four prior
				  fiscal years. The information shall be compatible with the latest SEC Form 10-K
				  consolidated financial statements (including any restatements). Information in
				  Sections A and B of Schedule 1 shall be compiled for the corporate entity that
				  raises equity capital in the marketplace. Information in Section C of Schedule
				  1 shall be compiled for the subsidiary company that provides regulated utility
				  service in Virginia.
Definitions for Schedule 1
Return on Year End Equity =
Earnings Available for Common Shareholders
Year End Common Equity
Return on Average Equity =
Earnings Available for Common Shareholders
The Average of Year End Equity for the Current &
							 Previous Year
Earnings Per Share =
Earnings Available for Common Shareholders
Average No. Common Shares Outstanding
Dividends Per Share = Common Dividends Paid per Share During
				  the Year
Payout Ratio = DPS/EPS
Dividend Yield = DPS/Year End Price
Price Earnings Ratio = Average Market Price/EPS
Schedule 2 - Interest and Cash Flow Coverage
				  Data
Instructions: This schedule shall be prepared using the
				  following definitions and instructions and presented in the format of Form
				  Schedule 2. The information shall be provided for the test period and the four
				  prior fiscal years based on information for the applicant and for the
				  consolidated company if the applicant is a subsidiary.
- Interest (Lines 3, 4, and 5) shall include amortization of
				  expenses, hedging gains and losses, discounts, and premiums on debt without
				  deducting an allowance for borrowed funds used during construction.
- Income taxes (Line 2) shall include federal and state
				  income taxes.
- Allowance for Funds Used During Construction ("AFUDC")
				  (Line 8), where applicable, is total AFUDC -- for borrowed and other
				  funds.
- Preferred dividends (Line 13) for a subsidiary shall be
				  stated per books.
- Construction expenditures (Line 15) are net of
				  AFUDC.
- Common dividends (Line 16) for a subsidiary shall be stated
				  per books.
Schedule 3 - Capital Structure and Cost of Capital
				  Statement - Per Books and Average
Instructions: This schedule shall show the amount of each
				  capital component per balance sheet, the amount for ratemaking purposes, the
				  percentage weight in the capital structure, and the component cost and weighted
				  cost, using the format in Form Schedule 3. The information shall be provided
				  for the test period, the four prior fiscal years, and on a 13-month average or
				  five-quarter average basis for the test period. The data shall be provided for
				  the entity whose capital structure was approved for use in the applicant's last
				  rate case.
In Part A, the information shall be compatible with the
				  latest SEC Form 10-K consolidated financial statements (including any
				  restatements). In Parts B, C, and D, the methodology shall be consistent with
				  that approved in the applicant's last rate case. Reconcile differences between
				  Parts A and B for both end-of-test-period and average capital
				  structures.
The amounts for all short-term debt, revolving credit
				  agreements, and similar short-term financing arrangements in Part B shall be
				  based on a daily average over the test year, or alternatively, on a 13-month
				  average over the test year. Except for the Part B amount for short-term debt
				  and average amounts in Column (6), all other accounts are end-of-year and
				  end-of-test period.
The component weighted cost rates equal the product of each
				  component's capital structure weight for ratemaking purposes times its cost
				  rate. The weighted cost of capital is equal to the sum of the component
				  weighted cost rates. The Investment Tax Credits cost is equal to the weighted
				  cost of permanent capital (long-term debt, preferred stock, and common
				  equity).
Adjustments made to per books amounts shall be fully
				  documented and explained.
For investor-owned electric utilities subject to §
									56-585.1
				  of the Code of Virginia, Parts A, B, C, and D shall be based on the utility's
				  actual, end-of-period capital structure.
In an application for a rate adjustment clause pursuant to §
									56-585.1A
				  5 or A 6 of the Code of Virginia, Schedule 3 information shall be provided to
				  support each actual, end-of-period capital structure for each year necessary to
				  calculate the revenue requirement. Information for prior time periods not
				  necessary to calculate the revenue requirement need not be provided.
Schedule 4 - Schedules of Long-Term Debt, Preferred
				  Stock, Investment Tax Credits, and Any Other Component of Ratemaking
				  Capital
Instructions: For each applicable capital component, provide
				  a schedule that shows, for each issue, the amount outstanding, its percentage
				  of the total capital component, and the effective cost rate. This data shall
				  support the amount and cost rate of the respective capital components contained
				  in Schedule 3, consistent with the methodology approved in the applicant's last
				  rate case. In addition, a detailed breakdown of all investment tax credits
				  should be provided that reconciles to the per books balance of investment tax
				  credits. These schedules should reflect disclosure of any associated
				  hedging/derivative instruments, their respective terms and conditions
				  (instrument type, notional amount and associated series of debt or preferred
				  stock hedged, period in effect, etc.), and the impact of such instruments on
				  the cost of debt or preferred stock.
Schedule 5 - Schedule of Short-Term Debt, Revolving
				  Credit Agreements, and similar Short-Term Financing Arrangements
Instructions: Utilities that are not subject to §
									56-585.1
				  of the Code of Virginia shall provide data and explain the methodology, which
				  should be consistent with the methodology approved in the applicant's last rate
				  case, used to calculate the cost and balance contained in Schedule 3 for
				  short-term debt, revolving credit agreements, and similar arrangements.
Investor-owned electric utilities subject to §
									56-585.1
				  of the Code of Virginia shall file data consistent with the utility's end of
				  test period capital structure and cost of short-term debt.
This schedule should also provide detailed disclosure of any
				  hedging/derivative instruments related to short-term debt, their respective
				  terms and conditions (instrument type, notional amount and associated series of
				  debt hedged, period in effect, etc.), and the impact of such instruments on the
				  cost of short-term debt.
Schedule 6 - Public Financial Reports
Instructions: Provide copies, or a link to where such copies
				  can be found on the Internet, of the most recent Stockholder's Annual Report,
				  Securities and Exchange Commission Form 10-K, and Form 10-Q for the applicant
				  and the consolidated parent company if the applicant is a subsidiary. If
				  published, provide a copy, or a link to where such copy can be found on the
				  Internet, of the most recent statistical or financial supplement for the
				  consolidated parent company.
Schedule 7 - Comparative Financial
				  Statements
Instructions: If not provided in the public financial reports
				  for Schedule 6, provide comparative balance sheets, income statements, and cash
				  flow statements for the test year and the 12-month period preceding the test
				  year for the applicant and its consolidated parent company if applicant is a
				  subsidiary. In lieu of providing a copy, the applicant may provide a link to
				  where such information can be found on the Internet.
Schedule 8 - Proposed Cost of Capital
				  Statement
Instructions: Provide the applicant's proposed capital
				  structure/cost of capital schedule. In conjunction, provide schedules that
				  support the amount and cost rate of each component of the proposed capital
				  structure, and explain all assumptions used.
Schedule 9 - Rate of Return Statement - Earnings Test -
				  Per Books
Instructions: Use the format of Form Schedule 9.
For cases filed pursuant to §
									56-585.1A
				  of the Code of Virginia, Schedule 9 shall reflect average rate base. Interest
				  expense, preferred dividends, and common equity capital shall be calculated
				  using the actual end-of-test period capital structure included in Schedule 3 B
				  and average rate base. In all other cases, Schedule 9 shall reflect average
				  rate base, capital, and common equity capital. Interest expense, preferred
				  dividends, and common equity capital shall be calculated by using the average
				  capital structure included in Schedule 3 B and average rate base.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia shall file only Columns (1), (2), and (3) on Schedule
				  9.
Revenues presented in Schedule 9 shall include separate line
				  items for each type of revenue (e.g., base rates and §
									56-585.1A
				  4, A 5, and A 6 rate adjustment clauses, fuel factor, late payment fees, and
				  miscellaneous revenue).
Schedule 10 - Rate of Return Statement - Earnings Test
				  - Generation and Distribution Per Books
Instructions: Use the format of Form Schedule 10.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia may omit Schedule 10.
Schedule 10 shall reflect combined generation and
				  distribution operations. Additionally, utilities shall file Schedule 10A,
				  reflecting generation only operations, and Schedule 10B, reflecting
				  distribution only operations, using the same format as Schedule 10.
For cases filed pursuant to §
									56-585.1A
				  of the Code of Virginia, Schedule 10 shall reflect the average rate base.
				  Interest expense, preferred dividends, and common equity capital shall be
				  calculated by using the actual end-of-test period capital structure included in
				  Schedule 3 B and average rate base. In all other proceedings, Schedule 10 shall
				  reflect average rate base, capital, and common equity capital. Interest
				  expense, preferred dividends, and common equity capital shall be calculated by
				  using the average capital structure included in Schedule 3 B and average rate
				  base.
Revenues presented in Schedule 10 shall include separate line
				  items for each type of revenue (e.g., base rates and § 56 585.1 A 4, A 5, and A
				  6 rate adjustment clauses, fuel factor, late payment fees, and miscellaneous
				  revenue).
Schedule 10 Columns (2) and (3) shall reflect revenues,
				  expenses, and rate base for commission approved rate adjustment clauses
				  pursuant to §
									56-585.1A
				  5 or A 6 of the Code of Virginia, respectively. Schedule 10 Column (4) shall
				  include revenues, expenses, and rate base intended to be recovered through
				  prospective rate adjustment clauses.
Schedule 11 - Rate of Return Statement - Earnings Test
				  - Adjusted to a Regulatory Accounting Basis
Instructions: Use the format of Form Schedule 11.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 11 shall reflect combined generation and
				  distribution operations. Such utilities shall file Schedule 11A, reflecting
				  generation only operations, and Schedule 11B, reflecting distribution only
				  operations, using the same format as Schedule 11. Additionally, such utilities
				  shall file Schedule 11C reflecting the fully-adjusted results of its generation
				  and distribution operation for each test period under review and the combined
				  results for all test periods.
Revenues presented in Schedule 11 shall include separate line
				  items for each type of revenue (e.g., base rates and §
									56-585.1A
				  4, A 5, and A 6 rate adjustment clauses, fuel factor, late payment fees, and
				  miscellaneous revenue).
Schedule 11 adjustments in Column (2) shall reflect any
				  financial differences between per books and regulatory accounting as prescribed
				  by the commission. Each Column (2) adjustment shall be separately identified
				  and reflected in Schedule 16.
A per books regulatory accounting adjustment to reflect
				  Investment Tax Credit (ITC) Capital Expense shall be reflected in Schedule 11
				  Column (2), if applicable. Column (3) ITC Capital Expense shall be calculated
				  as follows:
ITC Capital Expense = Rate Base (line 25) * weighted cost of
				  ITC Capital in Schedule 3
The associated income tax savings shall be reflected in lines
				  5 and 6, Column (2) as follows:
Associated income tax savings = total average rate base (line
				  25) * weight of ITC capital (Sch. 3) * weighted cost of debt component of the
				  ITC cost component (Sch. 3) * (Federal and State Income Tax rate * -1)
Schedule 11 Line 15 other income/(expense) shown in Column
				  (3) shall be the current amount of other income/(expense) categorized as
				  jurisdictional in the applicant's last rate case.
Schedule 12 - Rate Base Statement - Earnings Test - Per
				  Books
Instructions: Use the format of Form Schedule 12.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia shall file only Columns (1), (2), and (3) on Schedule
				  12.
Applicants with jurisdictional per books operating revenues
				  of more than $150 million shall calculate cash working capital allowance using
				  a lead/lag study. Applicants with jurisdictional per books operating revenues
				  between $20 and $150 million may include a zero cash working capital
				  requirement rather than perform a lead/lag study.
Schedule 13 - Rate Base Statement - Earnings Test -
				  Generation and Distribution Per Books
Instructions: Use the format of Form Schedule 13.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia may omit Schedule 13.
For utilities subject to §
									56-585.1,
				  Schedule 13 shall reflect combined generation and distribution operations.
				  Additionally, such utilities shall file Schedule 13A, reflecting generation
				  only operations, and Schedule 13B, reflecting distribution only operations,
				  using the same format as Schedule 13.
Schedule 13 Columns (2) and (3) shall reflect rate base
				  information for commission-approved rate adjustment clauses pursuant to §
									56-585.1A
				  5 or A 6 of the Code of Virginia. Column (4) shall reflect rate base
				  information for amounts intended to be recovered through prospective rate
				  adjustment clauses.
Cash working capital allowance shall be calculated using a
				  lead/lag study.
Schedule 14 - Rate Base Statement - Earnings Test -
				  Adjusted to Regulatory Accounting Basis
Instructions: Use the format of Form Schedule 14.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 14 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 14A,
				  reflecting generation only operations, and Schedule 14B, reflecting
				  distribution only operations, using the same format as Schedule 14.
Cash working capital allowance shall be calculated using a
				  lead/lag study. Schedule 14 Column (2) shall reflect adjustments necessary to
				  identify any financial differences between per books and regulatory accounting
				  as prescribed by the commission. Each Column (2) adjustment shall be separately
				  identified and reflected in Schedule 16.
Schedule 15 - Schedule of Regulatory
				  Assets
Instructions: Use the format of Form Schedule 15.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 15 shall reflect combined generation and
				  distribution operations as well as generation only operations and distribution
				  only operations.
All regulatory assets shall be individually listed with
				  associated deferred income tax. Indicate whether the regulatory asset (i) is
				  included in financial reporting or is currently recognized for ratemaking
				  purposes only; and (ii) is subject to an earnings test.
Schedule 16 - Detail of Regulatory Accounting
				  Adjustments
Instructions: If applicable per Schedules 9 and 12
				  instructions.
Use the format of Form Schedule 16.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 16 shall reflect combined generation and
				  distribution operations as well as generation only operations and distribution
				  only operations.
Each regulatory accounting adjustment shall be numbered
				  sequentially beginning with ET-1 and listed under the appropriate description
				  category (Operating Revenues, Interest Expense, Common Equity Capital,
				  etc.).
Each regulatory accounting adjustment shall be fully
				  explained in the description column of this schedule. Regulatory accounting
				  adjustments shall adjust from a financial accounting basis to a regulatory
				  accounting basis. Adjustments to reflect going-forward operations shall not be
				  included on this schedule.
Detailed workpapers substantiating each adjustment shall be
				  provided in Schedule 29.
Schedule 17 - Lead/Lag Cash Working Capital Calculation
				  - Earnings Test
Instructions: Use the format of Form Schedule 17.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 17 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 17A,
				  reflecting generation only operations, and Schedule 17B, reflecting
				  distribution only operations, using the same format as Schedule 17.
Total Balance Sheet Net Source/Use of Average Cash Working
				  Capital determined in Schedule 18 shall be included in the Total Cash Working
				  Capital amount in this schedule.
The Total Cash Working Capital amount determined in this
				  schedule shall be included in Schedules 12, 13, and 14.
Utilities should perform a complete lead/lag analysis every
				  five years. Major items, such as the revenue lag and balance sheet accounts,
				  should be reviewed every year.
Schedule 18 - Balance Sheet Analysis - Earnings
				  Test
Instructions: Use the format of Form Schedule 18.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 18 shall reflect combined generation and
				  distribution operations as well as generation only operations and distribution
				  only operations.
All uses and sources of cash working capital shall be
				  detailed in this schedule. The associated accumulated deferred income tax shall
				  also be included as a use or source.
The Net Source/Use of Average Cash Working Capital determined
				  in this schedule shall be included in Schedule 17.
Support for Schedule 18 shall include a list of all balance
				  sheet subaccounts and titles. Indicate whether the account's impact is included
				  in (i) the balance sheet analysis; (ii) the capital structure; (iii) the income
				  statement portion of the lead/lag study; (iv) elsewhere in rate base; or (v)
				  excluded from cost of service. Applicants shall also include a brief
				  description of the costs in each account.
Schedule 19 - Rate of Return Statement - Per
				  Books
Instructions: Use the format of Form Schedule 19.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 19 shall reflect combined generation and
				  distribution operations.
Utilities not subject to §
									56-585.1
				  shall file only Columns (1), (2), and (3) on Schedule 19.
Revenues presented in Schedule 19 shall include separate line
				  items for each type of revenue (e.g., base rates and §
									56-585.1A
				  4, A 5, and A 6 rate adjustment clauses, fuel factor, late payment fees, and
				  miscellaneous revenue).
Column (1) interest expense, preferred dividends, and common
				  equity capital shall be calculated by using the capital structure included in
				  Schedule 3 or Schedule 8 and end of test year level rate base.
Schedule 20 - Rate of Return Statement - Generation and
				  Distribution Per Books
Instructions: Use the format of Form Schedule 20.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia may omit Schedule 20.
Schedule 20 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 20A,
				  reflecting generation only operations, and Schedule 20B, reflecting
				  distribution only operations, using the same format as Schedule 20.
Revenues presented in Schedule 20 shall include separate line
				  items for each type of revenue (e.g., base rates and §
									56-585.1A
				  4, A 5, and A 6 rate adjustment clauses, fuel factor, late payment fees, and
				  miscellaneous revenue).
Schedule 20 Columns (2) and (3) shall reflect revenues,
				  expenses, and rate base for commission approved rate adjustment clauses
				  pursuant to §
									56-585.1A
				  5 or A 6 of the Code of Virginia, respectively. Schedule 20 Column (4) shall
				  reflect revenues, expenses, and rate base intended to be recovered through
				  prospective rate adjustment clauses.
Interest expense, preferred dividends, and common equity
				  capital shall be calculated by using the capital structure included in Schedule
				  3 or Schedule 8 and end of test year level rate base.
Schedule 21 - Rate of Return Statement - Reflecting
				  Ratemaking Adjustments
Instructions: Use the format of Form Schedule 21.
Revenues presented in Schedule 21 shall include separate line
				  items for each type of revenue (e.g., base rates and §
									56-585.1A
				  4, A 5, and A 6 of the Code of Virginia rate adjustment clauses, fuel factor,
				  late payment fees, and miscellaneous revenue).
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 21 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 21A,
				  reflecting generation only operations, and Schedule 21B, reflecting
				  distribution only operations, using the same format as Schedule 21.
Schedule 21 Column (2) adjustments shall be separately
				  identified and reflected in Schedule 25.
Interest expense, preferred dividends, and common equity
				  capital shall be calculated by using the capital structure included in Schedule
				  3 or Schedule 8 and an adjusted level of rate base.
After ratemaking adjustments, ITC capital expense shall be
				  calculated as follows:
Total rate base (Line 29) * weighted cost of ITC capital in
				  Schedule 3 or 8
Applicants filing pursuant to 20VAC5-204-30 may omit Columns
				  (4) and (5).
Schedule 22 - Rate Base Statement - Per
				  Books
Instructions: Use the format of Form Schedule 22.
Utilities not subject to §
									56-585.1
				  of the Code of Virginia shall file only Columns (1), (2), and (3) on Schedule
				  22.
Applicants with jurisdictional per books operating revenues
				  more than $150 million shall calculate cash working capital allowance using a
				  lead/lag study. Applicants with jurisdictional per books operating revenues
				  between $20 million and $150 million may include a zero cash working capital
				  requirement rather than perform a lead/lag study.
Schedule 23 - Rate Base Statement - Generation and
				  Distribution Per Books
Instructions: Use the format of Form Schedule 23.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 23 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 23A,
				  reflecting generation only operations, and Schedule 23B, reflecting
				  distribution only operations, using the same format as Schedule 23.
Utilities not subject to §
									56-585.1
				  may omit Schedule 23.
Schedule 23 Columns (2) and (3) shall reflect rate base
				  information for commission-approved rate adjustment clauses pursuant to §
									56-585.1A
				  5 or A 6 of the Code of Virginia, respectively. Schedule 23 Column (4) shall
				  reflect rate base information for amounts intended to be recovered through
				  prospective rate adjustment clauses.
Cash working capital allowance shall be calculated using a
				  lead/lag study.
Schedule 24 - Rate Base Statement - Adjusted -
				  Reflecting Ratemaking Adjustments
Instructions: Use the format of Form Schedule 24.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 24 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 24A,
				  reflecting generation only operations, and Schedule 24B, reflecting
				  distribution only operations, using the same format as Schedule 24.
Cash working capital allowance shall be calculated using a
				  lead/lag study.
Schedule 25 - Detail of Ratemaking
				  Adjustments
Instructions: Use the format of Form Schedule 25.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 25 shall reflect combined generation and
				  distribution operations as well as generation only operations and distribution
				  only operations.
Each adjustment shall be numbered sequentially and listed
				  under the appropriate description category (Operating Revenues, Interest
				  Expense, Common Equity Capital, etc.).
Ratemaking adjustments shall reflect an annual level of
				  revenues and expenses in accordance with applicable rules and laws governing
				  utility rate changes. Rate base adjustments may reflect no more than a rate
				  year average. Detailed workpapers substantiating each adjustment shall be
				  provided in Schedule 29.
Schedule 26 - Revenue Requirement
				  Reconciliation
Instructions: Use the format of Form Schedule 26 for lead
				  schedule. An example of a supporting schedule is provided.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 26 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 26A,
				  reflecting generation only operations, and Schedule 26B, reflecting
				  distribution only operations, using the same format as Schedule 26.
Provide a revenue reconciliation of each topic or subject
				  that affects the revenue requirement. All components of each topic or subject
				  shall be detailed (i.e., payroll and related = payroll, benefits, payroll
				  taxes, and related tax effect) on a supporting schedule. Cash working capital
				  shall be considered a separate topic or subject rather than as a component of
				  each topic or subject.
Schedule 27 - Lead/Lag Cash Working Capital Calculation
				  - Adjusted
Instructions: Use the format of Form Schedule 27.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 27 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 27A,
				  reflecting generation only operations, and Schedule 27B, reflecting
				  distribution only operations, using the same format as Schedule 27.
Total Balance Sheet Net Source/Use of Average Cash Working
				  Capital determined in Schedule 28 shall be included in the Total Cash Working
				  Capital amount in this schedule.
The Total Cash Working Capital amount determined in this
				  schedule shall be included in Schedules 22, 23, and 24.
Utilities required to use a lead/lag study should perform a
				  complete lead/lag analysis every five years. Major items such as the revenue
				  lag and balance sheet accounts should be reviewed every year.
Schedule 28 - Balance Sheet Analysis -
				  Adjusted
Instructions: Use the format of Form Schedule 28.
For utilities subject to §
									56-585.1
				  of the Code of Virginia, Schedule 28 shall reflect combined generation and
				  distribution operations as well as generation only operations and distribution
				  only operations.
All uses and sources of cash working capital shall be
				  detailed in this schedule. The associated accumulated deferred income tax shall
				  also be included as a use or source.
The Net Source/Use of Average Cash Working Capital determined
				  in this schedule shall be included in Schedule 27.
Support for the Schedule 28 should include a list of all
				  balance sheet subaccounts and titles. Additionally, support for Schedule 28
				  should include a brief description of the cost in each balance sheet
				  subaccount, whether the cost is presented on an end-of-period or 13-month
				  average basis, and the reasons why such cost is presented on an end-of-period
				  or 13-month average basis. Indicate whether the account's impact is included in
				  (i) the balance sheet analysis; (ii) the capital structure; (iii) the income
				  statement portion of the lead/lag study; (iv) elsewhere in rate base; or (v)
				  excluded from cost of service. Include a brief description of the costs
				  included in each account. Whether the cost is presented on an end-of-period or
				  13-month average basis, applicants shall provide the monthly balances making up
				  the 13-month average.
Schedule 29 - Workpapers for Earnings Test and
				  Ratemaking Adjustments
Instructions: Include a table of contents listing the work
				  papers included in this schedule.
a.
				Provide a narrative explaining the purpose and methodology used for each
				adjustment identified in subsections b and d of these instructions that have
				not been addressed in the applicant's direct testimony. Such explanation shall
				reference any relevant Financial Accounting Standards Board ("FASB") statement
				or commission precedent if known or available.
b. Provide a summary calculation of each
				earnings test adjustment included in Schedule 16. Each summary calculation
				shall identify the source documents used to prepare such calculation.
c. Provide all relevant documents references
				and information necessary to support the summary calculation required in
				subsection b of these instructions for each proposed earnings test adjustment.
				Amounts identified as per books costs shall include any documentation or
				references necessary to verify such amount to Schedule 40a. Working papers
				shall be indexed and tabbed for each adjustment and include the name of the
				primary employee or employees responsible for the adjustment. All documents and
				information as referenced above should include general ledgers, payroll
				distributions, billing determinants, invoices, and actuarial reports.
				Supporting documentation that is voluminous may be made available at the
				applicant's office.
d. Provide a
				summary calculation of each rate year adjustment included in Schedule 25. Each
				summary calculation shall identify the source documents used to prepare such
				calculation.
e. Provide all
				relevant documents and information necessary to support the summary calculation
				required in subsection d of these instructions for each proposed rate year
				adjustment. Amounts identified as per books costs shall include any
				documentation necessary to verify such amount to Schedule 40b. Working papers
				shall be indexed and tabbed for each adjustment and include the name of the
				primary employees responsible for the adjustment. All documents and information
				as referenced in subsections a through f of these instructions should include
				general ledgers, payroll distributions, billing determinants, invoices, and
				actuarial reports.
f.
				Investor-owned electric utilities subject to §
									56-585.1
				of the Code of Virginia shall separately identify functional information for
				each earnings test and proposed rate year adjustment required in subsections b
				and d of these instructions.
Schedule 30 - Revenue and Expense Variance
				  Analysis
Instructions: Applicant shall quantify jurisdictional
				  operating revenues and system operating and maintenance expenses by primary
				  account as specified by the Federal Energy Regulatory Commission Uniform System
				  of Accounts (hereinafter referred to as "USOA account") during the test period
				  and the preceding 12 months. Also, provide jurisdictional sales volumes by
				  customer class for the test period.
Applicants shall file a schedule detailing all revenue and
				  expense accounts by month for the test period. Applicants shall provide a
				  detailed explanation of all jurisdictional revenue and system expense increases
				  or decreases of more than 10% during the test period compared to the previous
				  12-month period. The expense variance analysis applies to test period expense
				  items greater than one-tenth of one percent (.001) of Operating &
				  Maintenance expenses excluding fuel factor costs. Additionally, the applicant
				  shall provide an electronic spreadsheet version of the accounts payable ledger
				  or schedule of all accounts payable electronically to the Division of Utility
				  Accounting and Finance within five business days of the application filing
				  date.
Schedule 31 - Advertising Expense
Instructions: A schedule detailing advertising expense by
				  USOA account and grouped according to the categories identified in §
										56-235.2
				  of the Code of Virginia shall be provided. Advertising costs that are not
				  identifiable to any of those categories shall be included in a separate
				  category titled "other." If applicant seeks rate relief, demonstrate that the
				  applicant's advertising meets the criteria established in §
										56-235.2
				  of the Code of Virginia.
Schedule 32 - Storm Damage
Instructions: Provide a schedule identifying major storm
				  damage expense by month, Federal Energy Regulatory Commission account, and
				  internal or third-party cost for the test year. Include a detailed description
				  of the damage sustained, the length of outages associated with the storm
				  damage, and work necessary to restore service. Applicants filing a base rate
				  increase application pursuant to Chapter 10 (§
										56-232
				  et sec.) of Title 56 of the Code of Virginia shall provide such schedule for
				  the test year and previous three years. Applicants filing a base rate review
				  application pursuant to §
										56-585.1
				  of the Code of Virginia shall indicate whether each major storm is considered a
				  severe weather event pursuant to §
										56-585.1A
				  8 of the Code of Virginia.
Schedule 33 - Generating Unit Performance
Instructions: This schedule applies to applicants subject to
				  §
										56-585.1
				  of the Code of Virginia. Provide a detailed schedule of each generating unit
				  outage orderate identifying whether the outage or derate was planned, due to
				  maintenance, or forced; start and end dates; cause; and cost. Additionally,
				  provide the heat rate, equivalent availability factor, equivalent forced outage
				  rate, and net capacity factor for each unit.
Schedule 34 - Miscellaneous Expenses
Instructions: Provide a description of amounts paid and USOA
				  accounts charged for each charitable and educational donation, each payment to
				  associated industry organizations, and all other miscellaneous general
				  expenses. Individual items aggregating to less than 5.0% of the total
				  miscellaneous expense may be reflected in an "Other" line item. Advertising
				  expenses included in Schedule 31 should be excluded from this schedule.
Schedule 35 - Affiliate Services
Instructions: For purposes of this schedule affiliate
				  services shall be defined to include those services between regulated and
				  nonregulated divisions of an incumbent utility. If any portion of the required
				  information has been filed with the commission as part of an applicant's Annual
				  Report of Affiliate Transactions, the applicant may reference such report
				  clearly identifying what portions of the required information are included in
				  the Annual Report of Affiliate Transactions.
Provide a narrative description of each affiliated service
				  received or provided during the test period.
Provide a summary of affiliate transactions detailing costs
				  by type of service provided (e.g., accounting, auditing, legal and regulatory,
				  human resources, etc.) for each month of the test period. Show the final USOA
				  account distribution of all costs billed to or by the regulated entity by month
				  for the test period, as it is recorded on the regulated entity's books.
Identify all amounts billed to an affiliate and then billed
				  back to the regulated entity.
Cost records and market analyses supporting all affiliated
				  charges billed to or by the regulated entity/division shall be maintained and
				  made readily available for commission staff review. This shall include
				  supporting detail of costs (including the return component) incurred by the
				  affiliated interest rendering the service and the allocation methodology. In
				  situations when the pricing is required to be the higher (lower) of cost or
				  market and market is unavailable, note each such transaction and have data
				  supporting such a finding available for commission staff review.
If affiliate charges are booked per a pricing mechanism other
				  than that approved by the commission, the regulated entity shall provide a
				  reconciliation of books to commission-approved pricing, including an
				  explanation of why the commission-approved pricing is not used for booking
				  purposes.
Schedule 36 - Income Taxes
Instructions: Provide a schedule detailing the computation of
				  test period current state and federal income taxes on a total company and
				  Virginia jurisdictional basis. Such schedule should provide a complete
				  reconciliation between book and taxable income showing all individual
				  differences. Additionally, provide a schedule detailing the computation of
				  fully adjusted, current state and federal income taxes applicable to the
				  Virginia jurisdiction.
Provide a schedule detailing the individual items of deferred
				  state and federal income tax expense for the test period on a total company and
				  Virginia jurisdictional basis. Separately quantify excess deferred income taxes
				  amortization on both a total company and Virginia jurisdictional basis. Also,
				  differentiate between protected (subject to Internal Revenue Service
				  normalization rules) and unprotected amortization and state the amortization
				  method and period applicable to each. Additionally, provide a schedule
				  detailing the computation of fully adjusted, deferred state and federal income
				  tax applicable to the Virginia jurisdiction.
Provide a detailed reconciliation between the statutory and
				  effective income tax rates for the test period on both a total company and
				  Virginia jurisdictional basis. Schedule should quantify individual reconciling
				  items by dollar amount and percentage. Individual items should include
				  permanent differences (itemize), flow-through depreciation, excess deferred FIT
				  amortization, and deferred Investment Tax Credit amortization.
Provide a detailed listing of individual accumulated deferred
				  income tax and accumulated deferred Investment Tax Credit amounts as of the end
				  of test period. Separately identify those items affecting the computation of
				  rate base on both a total company and Virginia jurisdictional basis.
				  Additionally, provide a detailed listing of individual accumulated deferred
				  income tax and accumulated deferred Investment Tax Credit amounts for the
				  earnings test rate base (if applicable), the end of test period rate base, and
				  the fully-adjusted rate base on a Virginia jurisdictional basis.
Provide a detailed reconciliation between the federal and
				  state current tax expense on a stand-alone basis and the actual per book
				  federal and state current tax expense for the test period on a total company
				  and Virginia jurisdictional basis.
Provide a schedule depicting by month all federal and state
				  income tax payments made during the test year. For each payment identify the
				  recipient.
Provide a detailed reconciliation between deferred federal
				  and state income expense computed on a stand-alone basis and the actual per
				  book deferred federal and state income tax expense on a total company and
				  Virginia jurisdictional basis.
Provide a detailed reconciliation between individual
				  accumulated deferred federal and state income tax assets and liabilities
				  computed on a stand-alone basis and the actual per book accumulated deferred
				  income tax amounts as of the end of the test period on a total company and
				  Virginia jurisdictional basis. Additionally, provide a detailed listing of
				  individual accumulated deferred income tax assets and liabilities computed on a
				  stand-alone basis for the earnings test rate base (if applicable), the end of
				  test period rate base, and the fully-adjusted rate base on a Virginia
				  jurisdictional basis.
Provide a detailed reconciliation between individual
				  accumulated deferred federal and state income tax assets and liabilities
				  computed on a stand-alone basis and the actual per book accumulated deferred
				  income tax amounts as of the end of the test period on a total company and
				  Virginia jurisdictional basis. Additionally, provide a detailed listing of
				  individual accumulated deferred income tax assets and liabilities computed on a
				  stand-alone basis for the earnings test rate base (if applicable), the end of
				  test period rate base, and the fully-adjusted rate base on a Virginia
				  jurisdictional basis.
Schedule 37 - Organization
Instructions: Provide an organizational chart of the
				  applicant and its parent company detailing subsidiaries and divisions. Provide
				  details of any material corporate reorganizations since the applicant's last
				  rate case. Explain the reasons for and any ratemaking impact of each such
				  reorganization.
Schedule 38 - Changes in Accounting
				  Procedures
Instructions: Detail any material changes in accounting
				  procedures adopted by either the parent/service company or the utility since
				  the applicant's last rate case. Explain any ratemaking impact of such
				  changes.
Identify any write-offs or write-downs associated with assets
				  (i.e., plant, tax accounts, etc.) that have been retained, transferred, or
				  sold.
Schedule 39 - Out-of-Period Book Entries
Instructions: Provide a summary schedule prepared from an
				  analysis of journal entries showing "out-of-period" items booked during the
				  test period. Show the amount, USOA account, and explanation of each
				  charge.
Schedule 40 - Jurisdictional and Class Cost of Service
				  Study
Instructions: Use the format of Form Schedule 40.
Investor-owned electric utilities subject to §
									56-585.1
				  of the Code of Virginia shall provide functionally separate schedules for
				  generation, transmission, and distribution information for subsections a, b,
				  and c of these instructions as well as bundled information. Each functional
				  schedule shall provide separate columns, as applicable, for each rate
				  adjustment clause approved by the commission under §
									56-585.1A
				  4, A 5, or A 6 of the Code of Virginia.
a. Provide detailed calculations for all
				jurisdictional allocations for each revenue, expense and rate base USOA account
				used to create Schedules 9 and 10. Allocations should be based on test period
				average data. Show the allocation basis for each primary USOA account and for
				any amount included therein with a unique allocation basis. Explain the
				methodology used and why such method is proposed. Discuss all changes in the
				applicant's operations that have materially changed any allocation factor as
				well as any significant changes in allocation methodology since the last rate
				case. For any change in allocation methodology used in the current rate case
				that has a material effect on the current test period cost of service study,
				provide Schedule 40a using both the new methodology used in the current rate
				case and the old methodology used in the last rate case.
b. Provide detailed calculations for all
				jurisdictional allocations for each revenue, expense and rate base USOA account
				used to create Schedules 19 and 22. Show the allocation basis for each primary
				USOA account and for any amount included therein with a unique allocation
				basis. Explain the methodology used and why such method is proposed. Discuss
				all changes in the applicant's operations that have materially changed any
				allocation factor as well as any significant changes in allocation methodology
				since the last rate case. Provide the calculations supporting the applicant's
				line loss percentages. Additionally, clearly show the derivation of the
				transmission cost components allocated to Virginia. For any change in
				allocation methodology used in the current rate case that has a material effect
				on the current test period cost of service study, provide Schedule 40b using
				both the new methodology used in the current rate case and the old methodology
				used in the last rate case.
c.
				Provide a class cost of service study showing the allocation basis for each
				primary USOA account and for any amount included therein with a unique
				allocation basis. Explain the methodology used and why such method is proposed.
				Class transmission allocations shall reflect the Virginia retail information
				that has been converted from the Federal Energy Regulatory Commission approved
				wholesale information. Provide a detailed calculation and explanation showing
				how the Federal Energy Regulatory Commission wholesale transmission information
				is converted to Virginia retail information. Discuss all changes in the
				applicant's operations that have materially changed any allocation factor as
				well as any significant changes in allocation methodology since the last rate
				case. For any change in allocation methodology used in the current rate case
				that has a material effect on the current test period cost of service study,
				provide Schedule 40c using both the new methodology used in the current rate
				case and the old methodology used in the last rate case.
Schedule 41 - Proposed Rates and Tariffs
Instructions: Provide a summary of the rates designed to
				  effect the proposed revenue increase. Provide a redline copy of all tariff
				  pages that the applicant proposes to revise in this proceeding.
Schedule 42 - Present and Proposed
				  Revenues
Instructions:
a.
				Provide the detailed calculations supporting total per books revenues in Column
				(3) of Schedule 21. The present revenues from each of the applicant's services
				shall be determined by multiplying the current rates times the test period
				billing units (by rate block, if applicable).
b. Provide a detailed calculation supporting
				total adjusted revenues in Column (5) of Schedule 21. The proposed revenues
				from each of applicant's services shall be determined by multiplying the
				proposed rates by the adjusted billing units (by rate block, if applicable).
				Detail by rate schedule all miscellaneous charges and other revenues, if
				applicable. Reconcile per books billing units to adjusted billing units
				itemizing changes such as customer growth, weather, and miscellaneous revenues.
				The revenue changes for applicant's services should be subtotaled into the
				applicant's traditional categories.
Schedule 43 - Sample Billing
Instructions: Investor-owned electric utilities shall provide
				  a sample billing analysis detailing the effect on each rate schedule at
				  representative levels of consumption.
Schedule 44 - Rate Adjustment Clauses Pursuant to §
											56-585.1A
				  4, A 5, or A 6 of the Code of Virginia
Instructions: Use the format of Form Schedule 44.
Utilities not subject to §
										56-585.1
				  of the Code of Virginia may omit Schedule 44.
Provide a schedule that identifies each commission-approved
				  rate adjustment clause and each individual prospective rate adjustment clause
				  for which amounts have been removed from generation and distribution base rate
				  cost of service in Columns (2), (3), and (4) of Schedules 10, 13, 20, and 23 in
				  separate columns. Schedule 44 shall reflect combined generation and
				  distribution operations. Additionally, such utilities shall file Schedule 44A,
				  reflecting rate adjustment clauses and prospective rate adjustment clauses for
				  generation only operations, and Schedule 44B reflecting rate adjustment clauses
				  and prospective rate adjustment clauses for distribution only operations, using
				  the same format as Schedule 44.
Provide a narrative description for each individual
				  prospective rate adjustment clause for which amounts have been removed from
				  base rate cost of service in Column (4) of Schedules 10, 13, 20, and 23.
Provide support by general ledger account for each amount
				  shown in Schedule 44 electronically to the Division of Utility Accounting and
				  Finance within five business days of the application filing date in an
				  electronic spreadsheet with all underlying formulas and assumptions.
Schedule 45 - Return on Equity Peer Group
				  Benchmark
Investor-owned electric utilities subject to §
										56-585.1
				  of the Code of Virginia shall provide all documentation supporting the reported
				  and authorized return on equity benchmark proposed pursuant to §
										56-585.1A
				  2 a and A 2 b of the Code of Virginia. Such documentation shall include a
				  complete list of all potential peer group utilities with corresponding
				  authorized returns set by applicable regulatory commissions, applicable
				  regulatory commission documents, reported returns calculated for each of the
				  three years within the requisite three-year period, Securities and Exchange
				  Commission documents in which such peer group returns are reported for the
				  three-year period, a detailed explanation of why utilities were excluded from
				  the peer group, and a spreadsheet showing how such returns were
				  calculated.
Schedule 46 - Rate Adjustment Clauses and Prudency
				  Determinations Pursuant to Chapter 23 (§
										56-576 et
				  seq.) of the Code of Virginia
a.
				Instructions for transmission rate adjustment clause applications. For any rate
				adjustment clause pursuant to §
									56-585.1A
				4 of the Code of Virginia, the applicant shall provide the following
				information:
1. A schedule of all projected
				and actual costs, by type of cost and year.
2. Within five business days of the
				application filing date, the applicant shall provide transaction-level details
				to facilitate the sampling and audit of such actual costs electronically to the
				Division to Utility Accounting and Finance in an electronic spreadsheet with
				all underlying formulas and assumptions. Provide the information for the period
				covered by the most recently completed true-up of the Federal Energy Regulatory
				Commission wholesale transmission formula rate as of the application filing
				date.
3. The annual revenue
				requirement over the duration of the proposed rate adjustment clause by year
				and by class on a total company and Virginia jurisdictional basis, including
				all supporting calculations and assumptions.
4. Detailed information relative to the
				applicant's methodology for allocating the revenue requirement among rate
				classes and the design of class rates.
5. The docket or case number and Federal
				Energy Regulatory Commission ruling approving the wholesale transmission
				formula, rate, or cost for which the applicant is seeking recovery approval. In
				lieu of providing copies of such rulings, the applicant may provide a link to
				where such information can be found on the Internet.