Fla. Admin. Code R. 25-30.434
Current through Reg. 50, No. 235-239, December 10, 2024
Section 25-30.434 - Application for Allowance for Funds Prudently Invested (AFPI) Charges(1) An Allowance for Funds Prudently Invested (AFPI) charge is a mechanism which allows a utility the opportunity to earn a fair rate of return on prudently constructed plant held for future use from the future customers to be served by that plant in the form of a charge paid by those customers.(2) Each application for AFPI charges shall comply with the notice requirements specified in Rule 25-30.4345, F.A.C.(3) Each application for AFPI charges shall provide the following information. If any of the following items do not apply to the applicant, the applicant shall state the reason it does not apply. (a) The applicant's name and address.(b) A statement describing how the noticing requirements have been complied with, including a copy of the actual notice(s).(c) The numbers of all Commission order(s) that:1. Previously established customer rates for the applicant either in a rate case or a reverse make-whole proceeding; and2. Established AFPI charges for the applicant.(d) The charge shall be calculated for one equivalent residential connection (ERC) on a monthly basis up to the time the utility reaches the designed capacity of the plant for which the charge applies. The charges shall cease when the plant has reached its designed capacity.(e) A statement explaining the basis for the requested charges and conditions.(f) The dollar amount of the non-used and useful plant and the accumulated depreciation, and the methodology used to determine these amounts. The net of these two amounts shall be considered the cost of qualifying assets. Separate balances for plant and for accumulated depreciation shall be reported for the water treatment plant, wastewater treatment plant, water transmission and distribution system and wastewater collection system.(g) The plant capacity related to each of the systems in (f) above and the methodology used to determine the amount.(h) The number of future customers in number of ERCs related to the non-used and useful plant by system.(i) The amount of depreciation expense and composite depreciation rate related to the non-used and useful plant by system.(j) The overall rate of return requested for the AFPI charge and the workpapers supporting the calculation.(k) The last authorized rate of return on equity and references to the docket number of the last rate case and the resulting order.(l) The state and federal income tax rates requested for calculating the AFPI charge.(m) All other costs such as non-used and useful property taxes and operation and maintenance expenses removed in the last rate case.(n) The test year to be used in the calculation, the month that the utility expects the charge to go into effect and the number of years the utility expects to collect the charge. Provide a detailed explanation of why the number of years to collect the charge represents a reasonable and prudent management decision in the construction of plant.(o) The workpapers and calculations used to develop the proposed AFPI charge. The utility may obtain a diskette that outlines the calculation and schedules to be used by calling or writing the Division of Accounting and Finance, (850) 413-6410. The required schedules that shall be submitted are "AFPI Filing Schedules", Commission Form PSC/AFD 26 (11/93), incorporated by reference into this rule, and are as follows: Schedule 1 - List of Information Imputed Into Calculation
Schedule 2 - Calculation Of Carrying Costs Per ERC
Schedule 3 - Calculation Of Carrying Costs Per ERC Per Year
Schedule 4 - Calculation Of Carrying Costs Per ERC Per Month
The form may be obtained from the Commission's Division of Accounting and Finance, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850.
(p) The revised or original tariff sheets necessary to incorporate the AFPI charge into the tariff.(4) The beginning date for accruing the AFPI charge shall agree with the month following the end of the test year that was used to establish the amount of non-used and useful plant. If any connections have been made between the beginning date and the effective date of the charge, no AFPI will be collected from those connections.(5) Unless the utility demonstrates that the 5-year period is inappropriate, it is prudent for a utility to have an investment in future use plant for a period of no longer than 5 years beyond the test year.(6) For utilities that have non-used and useful plant to be held for periods longer than what is determined to be prudent, the AFPI charge will cease accruing charges and will remain constant after the accrual period, established by the Commission, has expired. The utility can continue to collect the constant charge until all ERCs projected in the calculation have been added.Fla. Admin. Code Ann. R. 25-30.434
Rulemaking Authority 350.127(2), 367.121 FS. Law Implemented 367.081, 367.121 FS.