Okla. Admin. Code § 165:70-5-4

Current through Vol. 42, No. 7, December 16, 2024

Section 165:70-5-4 - Application package

(a) An application package shall be comprised of exhibits, schedules, testimony and evidence as set out in this Part. These exhibits, schedules, testimony and evidence shall be assembled under sections with index tabs for referencing convenience.

(b) All exhibits and schedules required in this Part 3, unless otherwise noted, shall contain the following:

(1) Columns in one of the following formats, unless otherwise negotiated with Staff before the application package is filed:

(A) Columns entitled:

(i) Total Company Per Books

(ii) Pro Forma Adjustment

(iii) Total Company Pro Forma

(iv) Separation/Allocation Factor

(v) Oklahoma Jurisdiction

(B) Columns entitled:

(i) Total Company Per books

(ii) Separation Factor

(iii) Oklahoma Jurisdiction

(iv) Pro Forma Adjustment

(v) Oklahoma Pro Forma Jurisdiction

(C) Columns entitled:

(i) Total Company Per Books Oklahoma Jurisdiction

(ii) Pro Forma Adjustment

(iii) Total Company Pro Forma Oklahoma Jurisdiction

(D) Formats other than s

(2) References by schedule number and title.

(3) A reference to subsequent schedules which are the source of amounts presented.

(4) A reference to the applicable testimony for each adjustment presented.

(c) Any multijurisdictional company shall not be required to provide total company information on any schedule where the utility provides Oklahoma-jurisdictional information.

(d) All sections shall reflect the form, order, and titles as follows:

(1) Index of sections: This is to contain a listing of the application and all exhibits, schedules and testimony contained in the application package.

(2) Section A - Application and testimony: This section shall contain a copy of the application and testimony of witnesses supporting all exhibits, schedules and other documents contained in the application package.

(3) Section B - Rate base and revenue requirement: This section shall contain schedules which present the elements of rate base for the test year and revenue requirement.

(A) Schedule B-1 - Revenue Requirement: This schedule shall have lines reflecting pro forma rate base, rate of return, revenue requirement, pro forma operating income, return deficiency, the applicable income tax gross-up factor, other applicable gross-up factors and change in revenue. The lines shall contain a reference from the succeeding schedules which are the source of the amounts presented.

(B) Schedule B-2 - Oklahoma Jurisdictional Pro Forma Rate Base/Rate of Return: This schedule shall present the following applicable components of rate base as described in (i) through (iii) of this subparagraph. This schedule shall have columns as defined in 165:70-5-4(b)(1) which reflect the pro forma Oklahoma jurisdictional rate base. (The amounts on this schedule shall correspond to the amounts on succeeding schedules. This schedule shall also reflect the rate of return under present rates, the rate of return after pro forma adjustments and the rate of return after pro forma adjustments utilizing proposed rates.

(i) Plant in service.

(I) Plant in service.

(II) Construction work in progress.

(III) Accumulated depreciation.

(IV) Plant held for future use.

(V) Net plant.

(ii) Working capital.

(I) Cash working capital.

(II) Prepayments.

(III) Materials, supplies and fuel inventories.

(IV) Gas in storage.

(V) Other.

(iii) Additions and deductions.

(I) Accumulated deferred income taxes.

(II) Regulatory assets.

(III) Regulatory liabilities.

(IV) Other.

(C) Schedule B-3 - Adjustments to Rate Base: This schedule shall reflect the classifications of the components of rate base as presented in the preceding schedule (Schedule B-2, Adjustment Column) and contain columns as defined in 165:70-5-4(b)(1). Each proposed adjustment will be numbered and a total of all adjustments included.

(D) Schedule B-4 - Explanation of Adjustments to Rate Base: This schedule shall detail each adjustment by number and provide a brief explanation of the adjustment, the affected classifications as used in the preceding schedules, the workpaper and testimony reference which sponsors or supports the adjustment. (When using format option B or option C in Section 165:70-5-4(b)(1) the explanation shall also present the total adjustment multiplied by the applicable jurisdictional factor and the resulting jurisdictional adjustment.)

(4) Section C - Plant investment: This section shall contain schedules which present the items and amounts of plant investment by the classification appropriate to the utility's industry and by primary account for the test year end.

(A) Schedule C-1 - Plant in Service: This schedule shall contain columns presenting the balances of the utility's plant investment accounts by the industry-applicable primary accounts or by sub-accounts, with functional account or subaccount subtotals, at the test year end, total adjustments and adjusted total amounts.

(B) Schedule C-2 - Adjustments to Plant in Service: This schedule shall reflect the plant investment account classifications as presented in the preceding schedule and contain a column for the adjustment number, a brief description of the adjustment, total of all plant in service adjustments and a reference to the testimony and schedules(s) which support the adjustment. The adjustment totals shall correspond to the applicable plant classifications on Schedule C-1.

(5) Section D - Accumulated provision for depreciation, amortization and depletion: This section shall contain schedules which present the balances in reserve accounts representing provisions for depreciation, amortization and depletion corresponding with the dates of plant investment data submitted under (d)(4) of this Section.

(A) Schedule D-1 - Accumulated Provision for Depreciation, Amortization and Depletion: This schedule shall provide the test year end reserve for plant in service listed on Schedule C-1, the total adjustments by plant in service classification and the total adjusted balances.

(B) Schedule D-2 - Adjustments to Accumulated Depreciation: This schedule shall reflect the plant in service classifications as presented in the preceding schedule and contain a column for the adjustment by number, a brief description of the adjustment, the total of all accumulated depreciation adjustments and a reference to the testimony and schedule(s) which support the adjustment. The total of all adjustments shall correspond to the applicable adjustments on Schedule D-1.

(6) Section E - Cash working capital: This section shall contain Schedule E-1 - Cash Working Capital Calculation. Schedule E-1 shall present the calculation of the allowance for cash working capital being requested.

(7) Section F - Capital and cost of money: This section shall contain Schedule F-1 - Components of Capital. This schedule shall show the components of the capital of the utility outstanding as of the end of the test year. Such schedule shall show the ratios of the various components to the total capital and the effective cost of each component under present and proposed rates. The utility shall provide testimony and all calculations detailing the utility's determination of a fair return on stockholders' equity and support for the capital structure and debt cost claimed.

(8) Section G - Financial and general data: No schedules are required to be included in the application package under this section. However, supplemental data is requested in the supplemental package under Section G. See 165:70-5-27.

(9) Section H - Test year and pro forma income statements: This section shall contain schedules setting forth test year revenues, expenses and net operating income.

(A) Schedule H-1 - Test Year Actual and Pro Forma Operating Income Statement: This schedule shall contain industry-specific functional classifications of operating revenues and expenses consistent with the format option chosen in 165:70-5-4(b)(1) with additional columns for proposed revenue change and proposed Oklahoma jurisdictional results incorporating the revenue change.

(B) Schedule H-2 - Adjustments to Operating Income Statement: This schedule shall reflect the revenue and expense classifications as presented in the preceding schedule and contain a column for the adjustment number and a descriptive title of the adjustment along with the total of all adjustments.

(C) Schedule H-3 - Explanation of Adjustments to Operating Income Statement: This schedule shall detail each adjustment contained in Schedule H-2 by number, provide a brief explanation of the adjustment, the affected revenue and expense classifications as used in the preceding schedules and workpaper reference, and reference to the testimony which sponsors or supports the adjustment. (When using format option B or option C in 165:70-5-4(b)(1) the explanation shall also present the total adjustment multiplied by the applicable jurisdictional factor and the resulting jurisdictional adjustment.)

(10) Section I - Depreciation and amortization: This section shall contain a schedule showing depreciation rates by the applicable industry-specific classes of plant, depreciation accruals for the test year showing amount charged to operations, clearing accounts, construction, etc. When amortizations appear in the income statements, the source of such amortizations shall also be included in this section. The schedule contained in this section shall be Schedule I-1 - Depreciation Expense. This schedule shall contain the same plant in service classifications as presented in Schedule D-1 and by subaccount where appropriate to allow for depreciation calculation, by jurisdictional amount if applicable, any nondepreciable items if applicable, depreciable plant, rates by classes of plant and total depreciation expense.

(11) Section J - Taxes: This section shall contain the following information:

(A) Schedule J-1 - Calculation of Federal and State Income Taxes: This schedule shall provide the calculations of federal and state income taxes for the test year and the pro forma income based on taxable income determined in Schedule J-2. The calculation shall include itemization of adjustments to tax expense such as investment tax credit amortization and amortization of tax rate changes.

(B) Schedule J-2 - This schedule shall show the determination of state and federal taxable pro forma income itemizing permanent differences. Taxable income determined in this schedule shall be used for the tax expense calculation in Schedule J-1.

(C) Schedule J-3 - This schedule shall provide the current tax component for the cash working capital calculation in Section E, if a lead lag study is performed.

(12) Section K - Jurisdictional separations and allocations/cost of service: This section shall include a summary explanation of the methodologies used to allocate rate base, revenues, expenses and other allocable items among jurisdictions, areas of operation, utility departments, states or other recipients of such allocations.

(A) For telephone companies:

(i) Schedule K-1 - Basis of Allocations: This schedule shall reflect the basis for the jurisdictional separation of rate base, revenue and expense items from total company to the Oklahoma jurisdiction.

(ii) Schedule K-2 - Basis of Allocations: This document shall apply to utilities with allocations other than inter/intrastate separations, i.e. allocations from holding company to utility. For each level of allocations, this document shall include the basis for allocating items of rate base, revenue and expense to the Oklahoma jurisdiction.

(B) For all other regulated utilities:

(i) Schedule K-1 - Total Company Cost of Service: This schedule is required of utilities with Oklahoma jurisdictional operations and shall contain columns presenting the total company pro forma cost of service and the total Oklahoma jurisdictional pro forma cost of service.

(ii) Schedule K-2 - Basis of Allocations: This schedule shall reflect the basis for the jurisdictional separation of rate base, revenue and expense items from pro forma total company to pro forma Oklahoma jurisdiction.

(iii) Schedule K-3 - Basis of Allocations: This document shall apply to utilities with allocations other than inter/intrastate separations, i.e. allocations from holding company to utility. For each level of allocations, this document shall include the basis for allocating items of rate base, revenue and expense to the Oklahoma jurisdiction.

(13) Section L - Rate design cost of service information: This section shall include the summaries and methodologies of the cost of service studies to support rates and charges.

(A) For telephone companies: This section shall include summaries and methodologies of cost studies, as indicated below, which shall be valid for consideration in the process of establishing prices. For tariff services other than those listed below, the most recent available cost studies, if any, shall be provided to the Commission upon request. This section shall include cost studies for the following list of services in addition to any services for which the utility requests a change in rates and such studies shall be no older than thirty-six (36) months from the date of the Notice of Intent:

(i) Local exchange service.

(ii) IntraLATA toll (DDD).

(iii) Switched access for local switching and transport.

(iv) Digital special access servlce.

(v) Service connection charges.

(vi) Directory assistance.

(vii) All other tariff services that generate one percent (1%) or more of total annual jurisdictional revenues.

(B) For gas and electric utilities and RECs: Cost of service studies may utilize accounting and load research data other than the test year provided such studies were completed within twenty-four (24) months of the end of the test year.

(C) For all utilities and telephone companies: Unless requested by the Director, miscellaneous charges (e.g., returned check charges, meter tampering charges, etc.) do not require cost of service studies pursuant to this Section.

(14) Section M - Proof of revenue/rate design: This section shall provide supporting data to show that the proposed rates will produce the revenues that the utility states in previous sections by presenting a usage analysis or other analyses.

(A) Schedule M-1 - Oklahoma Jurisdictional Pro Forma Revenue Summary (for gas and electric utilities and RECs): This schedule shall provide revenue information for the system for the test year in the following tabular form by rate class or service category:

Column A Base rate revenue Oklahoma pro forma.

Column B Base rate revenue under proposed rates.

Column C Fuel and purchased energy factor revenue Oklahoma pro forma.

Column D Fuel and purchased energy factor under proposed rates.

Column E Total revenues Oklahoma pro forma.

Column F Total revenues under proposed rates.

Column G Dollar difference between Oklahoma pro forma and proposed revenues.

Column H Percentage difference between Oklahoma pro forma and proposed revenues.

(B) Schedule M-1 - Revenue Summary (for telephone companies):

(i) This schedule shall provide revenue information for the system for the test year in the following tabular form:

Column A Revenue under current rates.

Column B Revenue under proposed rates.

Column C Dollar difference between current and proposed revenues.

Column D Percentage difference between current and proposed revenues.

(ii) This schedule shall have lines for each category of revenue clearly labeled.

(15) Section N - Proposed rate schedules: This section shall contain the proposed rate and/or charges schedules.

(16) Section O - Notice: The utility shall provide the exact text of the notice to be published in compliance with the Commission's Rules of Practice OAC 165:5-7-51(a) and a copy of the notice to be provided to customers by mail in compliance with OAC 165:5-7-51(a).

(17) Section P - Affiliate information: This section shall contain information relating to a utility's affiliates and/or subsidiaries to the extent that such affiliates and/or subsidiaries provide a service for which the utility seeks cost recovery in its rate application.

(18) Section Q - Additional evidence (and Subsequent Sections): These subsequent sections shall be lettered sequentially from Q and referenced to data deemed pertinent to the application which may not be properly included under the preceding sections. Such additional evidence may be submitted at the option of the applicant or upon the request or order of the Commission.

Okla. Admin. Code § 165:70-5-4

Amended at 11 Ok Reg 3753, eff 7-11-94