Section 810-RICR-00-00-5.6 - Test Year and Rate Year FilingA. Test Year. The filing shall present cost of service and rate base schedules for a test year period. The test year constitutes a historic year of actual data for a period ending within nine (9) months of the filing date. The test year may be for such other period as the Commission may allow.B. Rate Year. The rate year is the twelve-month period for which new rates are designed to recover the proposed cost of service. The rate year period shall be the filed test year or such other yearly period which commences no later than eight (8) months after the proposed effective date of the new tariffs.C. Adjustments to the Test Year. Where a rate year is filed for a period different from the test year, supporting schedules or workpapers shall be filed to disclose the manner in which the rate year amounts were calculated. The adjustments to the test year shall be fully explained in written testimony, and the source of the data in support of the adjustments shall be presented, or disclosed, as appropriate. 1. Normalization Adjustments. These adjustments shall be made to the test year to present a reasonable/normal amount for one full year of operations. The test year must be normalized to reflect expected results for a typical future year. All items of unusual magnitude which occurred during the test year, but which are not expected to recur to a significant degree beyond the test year, should be adjusted to reflect what is reasonably to be expected in the future. Correspondingly, adjustments should be made to reflect items that are fixed, determinable, and likely to occur in the future, but did not occur to a significant degree during the test year.2. Proforma Adjustments. These adjustments serve to walk-up the normalized test year amounts to the balances presented for the rate year.3. Accounting Change Adjustments. Any change in the manner of recording accounting data on the company's books shall be explained and the financial impact shown.4. Inflationary adjustments. These adjustments are based upon projected cost increases.810 R.I. Code R. 810-RICR-00-00-5.6