N.M. Admin. Code § 17.1.3.16

Current through Register Vol. 35, No. 20, October 22, 2024

Section 17.1.3.16 - BASE PERIOD, ADJUSTED BASE PERIOD, LINKAGE DATA AND FUTURE TEST YEAR PERIOD REQUIRED DATA

In addition to the requirements of Section 15 of this rule, base period, adjusted base period, linkage data and future test year period results and expectations shall be presented as set forth in this section. If budget estimates are used, the results and expectations shall be presented by cost center and elements of cost. In addition, the base period, the adjusted base period, the linkage data and the future test year period shall be presented by cost categories in at least the following detail set forth in this section.

A. Revenues. Revenues shall be detailed by the accounts prescribed in the applicable commission rate classes by month. The utility shall also provide a breakdown of sales revenue by service classification and related volumes. For electric, water and sewer utilities, as has been the history in New Mexico, base period revenue shall not be weather normalized.

B. Operating expenses. Operation and maintenance expenses shall be broken down at least by USOA accounts and elements of cost, on both a total company and jurisdictional basis. In providing linkage data, the utility shall provide summary information using the future test year period jurisdictional allocators to provide a reasonable approximation of jurisdictional amounts for appropriate comparison purposes.

(1) The USOA accounts shall be further subdivided to the level necessary to identify the appropriate cost drivers and adequately demonstrate where the variations between base period and future test year period occur.

(2) Each subdivision-level estimate shall then be detailed into elements of cost.

(3) Any expenses for which the utility is not seeking recovery or which are excluded from recovery by the commission's data rules or commission order shall be clearly identified.

(4) Depreciation, operating taxes and income taxes shall be detailed in schedules breaking these items down into sufficient detail to be useful for making projections.

C. Rate base. Rate base shall be presented on both a total company and jurisdictional basis.

(1) For a future test year period that begins at least 12 months after the end of the base period, the average rate base shall be used, utilizing the projected 13-month average of the future test year period. In providing linkage data, the utility shall provide summary information using the future test year period jurisdictional allocators to provide a reasonable approximation of jurisdictional amounts for appropriate comparison purposes.

(2) Rate base shall be shown in the detail required by the commission's data rules for base period presentations.

(3) Major plant additions and retirements from the end of the base period shall be separately identified, indicating actual or estimated in-service dates.

D. Cost of capital.

(1) The required information shall be supplied at least for the base period, the linkage data, the future test year period and the adjusted base period.

(2) There shall also be comparable data for two subsequent calendar years; for example, if the future test year period ended December 31, 2010, projections shall be made for calendar years 2011 and 2012 ("forward-looking data").

(a) If the utility determines the forward-looking data needs to be protected to comply with SEC requirements, the filing shall clearly state the utility has made this determination.

(b) The forward-looking data shall be provided by the utility in discovery if requested to persons who have signed a confidentiality agreement in accordance with the protective order.

(3) To ensure that a complete and useful record is compiled, the following information shall be submitted at the time of the filing:

(a) estimated short-term debt balances and available lines of credit;

(b) external financing requirements, including:

(i) projected issues of debt; and

(ii) preferred and common equity, including sources such as dividend reinvestment and employee stock purchase plans as well as public offerings; and

(c) projected capitalized ratios and a statement of the utility's objectives.

(4) The equity and debt amounts for the future test year period shall be based upon an average calculated in the same manner as the rate base.

(5) Estimates of interest and preferred dividend coverages shall be computed in accordance with the applicable bond indenture or certificate of incorporation.

(6) The computations of ratios of earnings to fixed charges (or earnings to fixed charges and preferred dividends) normally found in SEC registration statements for public security issues shall be included.

N.M. Admin. Code § 17.1.3.16

17.1.3.16 NMAC - N, 2-14-13