Current through Register Vol. XLI, No. 50, December 13, 2024
Section 150-7-4 - Records, Reports and Other Information to be Supplied to the Commission4.1. Records and reports.4.1.1. Preservation of records. -- All records required by these rules shall be preserved by the utility in the manner prescribed by the Commission.4.1.2. Location of records. 4.1.2.a. Required records shall be kept at the office(s) of the utility in West Virginia, and shall be available during the utility's regular business hours for examination by the Commission or its duly authorized representative.4.1.2.b. If kept outside the State, records shall be brought to the utility's office in West Virginia upon request of the Commission, or the utility may be required to pay the reasonable traveling expenses of Commission employees assigned to examine the records.4.1.3. Reports to Commission. -- Upon Commission request, a utility shall furnish to the Commission the results of any test or tests required to be made, or the information contained in any records required to be kept by the utility, or any further information in its possession, respecting its rates, charges, or practices, without formal order of the Commission requiring the release of such information.4.2. Filing of rate schedules. 4.2.1. Tariffs containing rates and rules of each utility shall be filed in the manner prescribed by the Commission in "Rules and Regulations for the Construction and Filing of Tariffs" 150CSR2 (Tariff_Rules) effective as amended or modified by the Commission.4.2.2. Municipal rates. -- Rates for municipal water and combined water and sewer utilities shall be adopted, and tariffs shall be filed, in accordance with the Commission's Tariff Rules, effective as amended or modified by the Commission.4.3. Utility's special rules. 4.3.1. A utility desiring to establish any rule(s) supplementing the rules of the Commission shall first make application to the Commission for authority to establish such a rule(s), clearly stating the reasons for the rule(s).4.3.2. On and after ninety (90) days from the effective date of these Rules, any utility's special rules and regulations now on file with the Commission which conflict with these rules, will become null and void, unless they have been refiled after the effective date of these rules and approved by the Commission.4.3.3. Exemption. -- A customer who has complied with the rules of the Commission shall not be denied service for failure to comply with the rules of the utility that have not been approved by the Commission.4.4. Financial and statistical report. 4.4.1. Every utility shall file annually a financial and statistical report with the Commission. The report shall be based upon the accounts set up in conformity with Water Rule 4.5. The report shall be filed on or before three (3) months following the end of the utility's fiscal year or on such date as the Commission may direct. The form requirement will be specified in the annual letter sent by the Commission to utilities. The report shall be filed utilizing the form template and filing instructions that can be found on the Commission web site.4.4.2. Upon written request and for good cause shown, the Commission may approve or disapprove, through its Executive Secretary, by letter, a reasonable extension of time to file the financial and statistical report. A utility shall apply for an extension before the expiration of the time for filing the report.4.5. Uniform system of accounts. 4.5.1. All water utilities shall maintain all accounts and records in compliance with the Uniform System of Accounts as promulgated in 1996 by the National Association of Regulatory Utility Commissioners for Class A, B, and C Water Utilities.4.5.2. All persons having direct charge of the books and accounts of the utility must observe the_system of accounts applicable to the water utility by appropriate class. For the purpose of securing uniformity in the applications of this system all questions of doubtful interpretation of accounting rules are to be submitted to the Commission for consideration and decision.4.5.3. The classification of water utilities for purposes of keeping accounts in accordance with the Uniform System of Accounts shall be as follows: Classification | Revenue Level |
A | $1,000,000 or more |
B | $200,000 - $999,999 |
C | less than $200,000 |
4.6. Maps and records. 4.6.1. Each utility shall keep on file suitable maps, plans and records showing the entire layout of every pumping station, filter plant, reservoir, transmission and distribution system, with the location, size and capacity of each plant, size of each transmission and distribution line, fire hydrant, valve and customer's service, reservoirs, tanks and other facilities used in the production and delivery of water.4.6.2. In the case of new construction or property acquired from others, a utility shall reflect the changes in the maps and records by the end of the next calendar year following the year the construction is done or property acquired. All drawings shall have the scale clearly shown and be of sufficient detail to accurately depict the project or property.4.6.3. In general, where present maps of existing facilities are not entirely up to date, special surveys to locate any plant or facilities will not be required immediately, but maps must be updated as prescribed by the Commission.4.7. Management audits.4.7.1. Scope. -- To establish a procedure for examination of management practices and policies to determine whether the utility being audited is operating with efficiency and utilizing sound management practices. The purpose of a management audit is to disclose operating areas that are efficient or inefficient, to identify areas for improvement, and to form recommendations for changes. The results of a management audit and the response of the utility to the recommendations and implementation plans developed pursuant to a management audit may be a factor in determining just and reasonable rates, as set out herein.4.7.2. Types of management audits. -- The following types of management audit, which vary in scope, may be directed and used by the Commission:4.7.2.a. Comprehensive. -- An investigation characterized by an extensive, detailed analysis of a utility's management and operations.4.7.2.b. Reconnaissance. -- A broad review, similar in scope to a comprehensive audit, but in less detail. The objective of this type of audit is to identify specific areas for more intensive investigation based upon the magnitude of the problem identified or the potential benefits to be derived.4.7.2.c. Focused. -- An in-depth investigation of one or several specific areas of a utility's management and operations.4.7.3. Frequency. -- The Commission shall order a management audit of any utility under its jurisdiction whenever the Commission deems it necessary to investigate the operational efficiency of the utility. Such factors as the cost of the management audit and the potential benefits of such audit may be taken into consideration. The Commission may accept or request a management audit performed under the rules of another jurisdiction in satisfaction of this rule when that audit is of the scope contemplated by the Commission, conforms to the standards herein set forth and covers the utility's service functions in its West Virginia jurisdiction.4.7.4. Conduct and control.4.7.4.a. The Commission may choose to have the audit performed by its Staff or contracted to a qualified outside auditing firm. In the latter case, the Commission may supervise the selection process. If the management audit is to be conducted by an auditing firm, the Commission's order initiating the audit shall include provision for the development of the request for proposal (RFP), the consultant selection process and Staff's assistance and supervision during the audit.4.7.4.b. The Commission may impose eligibility restrictions upon contractors relating to past, current and post-audit relationships with the utility.4.7.4.c. The utility is expected to cooperate to the fullest extent with the performer of a Commission ordered management audit. A responsible employee shall be appointed by the utility as its management audit coordinator, who shall be responsible to assist in the efficient performance of the management audit.4.7.5. Costs. -- The audited utility is responsible to pay for a contracted audit. The Commission shall include the reasonable cost of conducting the contracted management audit in the cost of service of the utility. The Commission may allow such costs to be recovered in the utility's next general rate case following completion of the audit, or the Commission may order such costs to be amortized over a reasonable period of years, considering the impact of these costs on both the utility and its customers.4.7.6. Implementation of recommendations.4.7.6.a. Draft report. 4.7.6.a.1. Upon completion of the audit the auditor will submit a draft report to the utility for comments.4.7.6.a.2. The auditor and utility representatives shall conduct a draft review meeting subsequent to the distribution of the draft review report.4.7.6.b. Final report. 4.7.6.b.1. The auditor will submit a final report to the Commission no later than thirty (30) days after the submission of the draft report to the utility.4.7.6.b.2. Within thirty (30) days of the final submission of the management audit report, the utility shall file a document detailing its position on each audit recommendation. This document must state which recommendations are acceptable to the utility and the nature of the utility's disagreement with any recommendations.4.7.6.c. The Commission may, after hearing, issue an order prescribing the recommendations that should be adopted by the utility.4.7.6.d. The utility shall file detailed implementation plans for Commission review and approval within the time specified in the Commission's order prescribing the recommendations that the utility should adopt. The utility shall not deviate from an approved implementation plan without prior notice to the Commission that specifically states the utility's reasons for departing from the approved plan. The utility shall obtain Commission approval prior to any deviation from the approved plan.4.7.6.e. At the direction of the Commission, a follow-up audit may be performed to review the progress of the utility in implementing the approved plans and the results of previously performed management audits.4.7.6.f. A management audit report, the resulting implementation plan and any follow-up audit may be used by parties in a general rate case subsequent to the management audit. Audits and implementation plans may be a factor in the determination of just and reasonable rates if introduced as an exhibit and subjected to normal due process procedures.4.7.6.g. The Commission may grant an extension of the time limits established in this section upon a showing of good cause for such extension.