Section 3.2 - (Rule 3.2) Authority to Increase Rates(a) Applications for authority to increase rates, or to implement changes that would result in increased rates, shall contain the following data, either in the body of the application or as exhibits annexed thereto or accompanying the application: (1) A balance sheet as of the latest available date, together with an income statement covering period from close of last year for which an annual report has been filed with the Commission to the date of the balance sheet attached to the application.(2) A statement of the presently effective rates, fares, tolls, rentals, or charges which are proposed to be increased, or of the classification, contract, practice, or rule proposed to be altered. Such statement need not be in tariff form.(3) A statement of the proposed increases or changes which will result in increases, which applicant requests authority to make effective. Such statement need not be in tariff form, but shall set forth the proposed rate structure with reasonable clarity. Except as to carriers, the statement shall also show the amount of proposed gross revenues, together with the percentage of increase, if in excess of one percent, estimated to result from the proposed rates. In the case of common carriers, where a general rate increase application is filed, the statement shall include an estimate of the amount of additional annual gross revenue estimated to result from the increase, which shall be based on the amount of involved traffic handled for the preceding calendar year and shall indicate the percentage by which such estimate exceeds the gross revenues on the involved traffic for the preceding calendar year, if more than one percent. In the case of gas, electric, telephone, telegraph, water and heat utilities, the proposed revenue increase, including the percentage of increase, if in excess of one percent, shall be shown by appropriate rate classifications. If the percentage of increase in revenue is one percent or less, applicant shall so state in its application.(4) A general rate increase application shall contain a general description of applicant's property and equipment, or reference to such description in a recent prior application, and a statement of the original cost thereof, together with a statement of the depreciation reserve applicable thereto. If it is impossible to state original cost, the facts creating such impossibility shall be set forth.(5) A summary of earnings (rate of return summary) on a depreciated rate base for the test period or periods upon which applicant bases its justification for an increase. If adjusted or estimated results are shown for successive periods, they should be on a consistent basis. Wherever adjusted results are shown, the recorded results for the same periods should also be shown.(6) In rate applications involving a utility having more than one department, district or exchange, the earnings results should be presented for the total utility operations for the company, as well as for the part of the operation for which rate increases are sought.(7) The application of a gas, electric, telephone, telegraph, water or heat utility for a general rate increase shall contain a statement by the applicant as to which of the optional methods provided in the Internal Revenue Code applicant has elected to employ in computing the depreciation deduction for the purpose of determining its federal income tax payments, and whether applicant has used the same method or methods in calculating federal income taxes for the test period for rate fixing purposes.(8) The application of a gas, electric, telephone, telegraph, water or heat utility for a general rate increase shall contain a statement corresponding to the statement required by Section 2 of General Order No. 104-A, as to all known matters designated by said section for inclusion in the annual report but occurring or proposed subsequent to the period covered by the last annual report filed by applicant; or, if no such matters are known to have so occurred or are known to be then proposed, a statement to that effect; provided, that an applicant whose capital stock, or that of its parent company, is listed on a "national securities exchange," as defined in the Securities Exchange Act of 1934 ( 15 U.S.C. 78(a) et seq.) in lieu of the statement required by this rule shall include in the application a copy of the latest proxy statement sent to stockholders by it or its parent company if not previously filed with the Commission, provided, further, that an applicant whose capital stock, or that of its parent company, is registered with the Securities and Exchange Commission (SEC) pursuant to the provisions of Section 12(g) of said Securities Exchange Act of 1934, in lieu of the statement required by this rule shall include in the application a copy of the latest proxy statement sent to stockholders by it or its parent company containing the information required by the rules of the SEC if not previously filed with the Commission.(9) In a general rate increase application involving a telephone utility having an annual operating revenue exceeding $25,000, the rate of return on a depreciated rate base shall be shown separately for its aggregate exchange operations, for its toll operations, and for the total telephone utility operations of applicant.(10) The application of electrical, gas, heat, telephone, water, or sewer system corporations shall separately state whether or not the increase reflects and passes through to customers only increased costs to the corporation for the services or commodities furnished by it.(b) Applicants for authority to increase rates shall, within 20 days after filing the application with the Commission, serve notice to the following stating in general terms the proposed increases in rates or fares: (1) the Attorney General and the Department of General Services, when the State is a customer or subscriber whose rates or fares would be affected by the proposed increase;(2) the County Counsel (or District Attorney if the county has no County Counsel) and County Clerk, and the City Attorney and City Clerk, listed in the current Roster published by the Secretary of State in each county and city in which the proposed increase is to be made effective; and(3) any other persons whom applicant deems appropriate or as may be required by the Commission.(c) Gas, electric, telephone, telegraph, water or heat utilities, within 20 days after the filing of the application, shall publish at least once in a newspaper of general circulation in the county in which the increases are proposed to be made effective a notice, in general terms, of the proposed increases in rates. Such notice shall state that a copy of said application and related exhibits may be examined at the offices of the California Public Utilities Commission in San Francisco and in such offices of the applicant as are specified in the notice, and shall state the locations of such offices. Applicants shall maintain documentation of compliance with this subsection, and shall provide it to any person upon request.(d) Electric, gas, heat, telephone, water, or sewer system corporations, within 45 days, if the corporation operates on a 30-day billing cycle, or within 75 days, if the corporation operates on a 60-day or longer billing cycle, after the filing of an application to increase any rate of charge, other than a change reflecting and passing through to customers only new costs to the corporation which do not result in changes in revenue allocation, for the services or commodities furnished by it, shall furnish to its customers affected by the proposed increase notice of its application either by electronically linking to such notice for customers that receive their bills electronically or, for customers that receive their bills by mail, by mailing such notice postage prepaid or including such notice with the regular bill. The notice shall state the amount of the proposed rate change expressed in both dollar and percentage terms for the entire rate change as well as for each customer classification, a brief statement of the reasons the change is required or sought, and the mailing, and if available, the e-mail, address of the Commission to which any customer inquiries may be directed regarding how to participate in, or receive further notices regarding the date, time, and place of any hearing on the application, and the mailing address of the corporation to which any customer inquiries may be directed.(e) Applicants shall file proof of compliance with the notice requirements of subsections (b), (c) and (d) within 20 days after compliance with the last of these subsections that is applicable. Proof of compliance with subsection (c) shall include a sworn verification listing the newspapers and publication dates, and a sample of each different notice.Cal. Code Regs. Tit. 20, § 3.2
1. Renumbering of former section 8.13 to new section 3.2 filed 10-19-98; designated effective 1-1-98 by Decision 97-12-043. Submitted to OAL for printing only (Register 98, No. 43).
2. Renumbering of former section 3.2 to new section 1.14 and renumbering of former sections 23 and 24 to section 3.2, including amendment of section heading, section and NOTE filed 9-13-2006; operative 9-13-2006 pursuant to Government Code section 11351(a) (Register 2006, No. 37).
3. Amendment of subsection (c) filed 6-4-2009; operative 7-4-2009 (Register 2009, No. 23). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h).
4. Change without regulatory effect amending NOTE filed 6-23-2009 pursuant to section 100, title 1, California Code of Regulations (Register 2009, No. 26).
5. Amendment of subsections (b)-(d) and new subsection (e) filed 5-9-2011; operative 6-8-2011. Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2011, No. 19). Note: Authority cited: Section 1701, Public Utilities Code. Reference: Section 454, Public Utilities Code.
1. Renumbering of former section 8.13 to new section 3.2 filed 10-19-98; designated effective 1-1-98 by Decision 97-12-043. Submitted to OAL for printing only (Register 98, No. 43).
2. Renumbering of former section 3.2 to new section 1.14 and renumbering of former sections 23 and 24 to section 3.2, including amendment of section heading, section and Note filed 9-13-2006; operative 9-13-2006 pursuant to Government Code section 11351(a) (Register 2006, No. 37).
3. Amendment of subsection (c) filed 6-4-2009; operative 7-4-2009 (Register 2009, No. 23). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h).
4. Change without regulatory effect amending Note filed 6-23-2009 pursuant to section 100, title 1, California Code of Regulations (Register 2009, No. 26).
5. Amendment of subsections (b)-(d) and new subsection (e) filed 5-9-2011; operative 6-8-2011. Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2011, No. 19).