§ 53.53. Information to be furnished with proposed general rate increase filings in excess of $1 million.
(a) When a public utility, other than a canal, turnpike, tunnel, bridge or wharf company, files a tariff or tariff supplement seeking a general rate increase within the meaning of 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates), and the general rate increase exceeds $1 million in gross annual revenues, in addition to the data required by other provisions of this chapter, the tariff or tariff supplement shall be accompanied by responses to the data requests contained in the following exhibits which apply to the utility types indicated.
(1) Exhibit A—Utilities except communications, electric, water and wastewater utilities.
(2) Exhibit B—Communications utilities.
(3) Exhibit C—Electric utilities.
(4) Exhibit D—Water and wastewater utilities.
(b) In providing responses to these data requests, if the requested data have been previously filed with the Commission, they may be incorporated by reference. Also, the term ‘‘historic test year’’ as used in these exhibits refers to the test year chosen by the utility to support its filing, that is, presumably future test year data would be supplied in most cases. ‘‘Historic test year,’’ as referred to in Exhibit D, is defined as book figures for the base test year. The term ‘‘future test year,’’ as used in Exhibit D, refers to the adjusted historic test year for known and measurable changes 12 months beyond the book figures for the base year, or the utility’s final claimed supporting data.
(c) Initial utility direct testimony of a witness who shall testify in support of the utility’s position shall be provided as part of the filing materials. The testimony of the filing utility shall include a complete explanation and justification of claims which depart from the unadjusted test year results of operations, including the methodology and rationale. The testimony shall be accompanied by supporting worksheets, if necessary, and shall refer to supporting exhibits to which the testimony relates. The explanation and documentation of the proposed adjustments shall enable a reasonably informed party to determine how the amount was calculated and to understand why the amount is being claimed.
Exhibit A
I. VALUATION
A. ALL UTILITIES
1. Provide a corporate history (include the dates of original incorporation, subsequent mergers and/or acquisitions). Indicate all counties and cities and other governmental subdivisions to which service is provided (including service areas outside the state), and the total population in the area served.
2. Provide a schedule showing the measures of value and the rates of return at the original cost and trended original cost measures of value at the spot, three-year and five-year average price levels. All claims made on this exhibit should be cross-referenced to appropriate exhibits. Provide a schedule similar to the one listed above, reflecting respondent’s final claim in its previous rate case.
3. Provide a description of the depreciation methods utilized in calculating annual depreciation amounts and depreciation reserves, together with a discussion of all factors which were considered in arriving at estimates of service life and dispersion by account. Provide dates of all field inspections and facilities visited.
4. Set forth, in exhibit form, charts depicting the original and estimated survivor curves and a tabular presentation of the original life table plotted on the chart for each account where the retirement rate method of analysis is utilized.
a. If any utility plant was excluded from the measures of value because it was deemed not to be ‘‘used and useful’’ in the public service, supply a detailed description of each item of property.
b. Provide the surviving original cost at test year end by vintage by account and include applicable depreciation reserves and annuities.
(i) These calculations should be provided for plant in service as well as other categories of plant, including, but not limited, to contributions in aid of construction, customers’ advances for construction, and anticipated retirements associated with any construction work in progress claims (if applicable).
5. Provide a comparison of respondent’s calculated depreciation reserve v. book reserve by account at the end of the test year.
6. Supply a schedule by account and depreciable group showing the survivor curve and annual accrual rate estimated to be appropriate:
a. For the purposes of this filing.
b. For the purposes of the most recent rate increase filing prior to the current proceedings.
(i) Supply a comprehensive statement of any changes made in method of depreciation and in the selection of average service lives and dispersion.
7. Provide a table, showing the cumulative depreciated original cost by year of installation for utility plant in service at the end of the test year (depreciable plant only) as claimed in the measures of value, in the following form:
a. Year installed.
b. Original cost—the total surviving cost associated with each installation year from all plant accounts.
c. Calculated depreciation reserve—the calculated depreciation reserve associated with each installation year from all plant accounts.
d. Depreciated original cost—(Column B minus Column C).
e. Total—cumulation year by year of the figures from Column D.
f. Column E divided by the total of the figure in Column D.
8. Provide a description of the trending methodology which was utilized. Identify all indexes which were used (include all backup workpapers) and the reasons particular indexes were chosen. If indexes were spliced, indicate which years were utilized in any splices. If indexes were composited, show all supporting calculations. Include any analysis made to ‘‘test’’ the applicability of any indexes.
a. Supply a comprehensive statement of any changes made in the selection of trend factors or in the methodology used in the current rate filing compared to the most recent previous rate filing.
9. Provide an exhibit indicating the spot trended original cost at test year end by vintage by account and include applicable depreciation reserves. Include totals by account for all other trended measures of value.
10. Supply an exhibit indicating the percentages of undepreciated original cost which were trended with the following indexes:
a. Boeckh
b. Handy-Whitman
c. Indexes developed from suppliers’ prices.
d. Indexes developed from company records and company price histories.
e. Construction equipment.
f. Government statistical releases.
11. Provide a table, showing the cumulative trended depreciated original cost (at the spot price level) by year of installation for utility plant in service at the end of the test year (depreciable plant only) as claimed in the measures of value, in the following form:
a. Year installed.
b. Trended original cost (at the spot price level)—the total surviving cost associated with each installation year from all plant accounts.
c. Trended calculated depreciation reserve—the calculated depreciation reserve associated with each installation year from all plant accounts.
d. Depreciated trended original cost—(Column B minus Column C).
e. Total—cumulation year by year of the figures from Column D.
f. Column E divided by the total of the figures in Column D.
12. If a claim is made for construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page from the work order. Include final completion date and estimated total amounts to be spent on each project.
[These exhibits should be updated at the conclusion of these proceedings.]
13. If a claim is made for non-revenue producing construction work in progress, include, in the form of an exhibit, the summary page from all work orders, amount expended at the end of the test year and anticipated in-service dates. Indicate if any of the construction work in progress will result in insurance recoveries, reimbursements, or retirements of existing facilities. Describe in exact detail the necessity of each project claimed if not detailed on the summary page from the work order. Include final completion date and estimated total amounts to be spent on each project.
[These exhibits should be updated at the conclusion of these proceedings.]
14. If a claim is made for plant held for future use, supply the following:
a. A brief description of the plant or land site and its cost.
b. Expected date of use for each item claimed.
c. Explanation as to why it is necessary to acquire each item in advance of its date of use.
d. Date when each item was acquired.
e. Date when each item was placed in plant held for future use.
15. If materials and supplies comprise part of the cash working capital claim, attach an exhibit showing the actual book balances for materials and supplies by month for the thirteen months prior to the end of the test year. Explain any abrupt changes in monthly balances.
[Explain method of determining claim if other than that described above.]
16. If fuel stocks comprise part of the cash working capital claim, provide an exhibit showing the actual book balances (quantity and price) for the fuel inventories by type of fuel for the thirteen months prior to the end of the test year by location, station, etc.
[Explain the method of determining claim if other than that described above.]
17. Regardless of whether a claim for net negative or positive salvage is made, attach an exhibit showing gross salvage, cost of removal, and net salvage for the test year and four previous years by account.
18. Explain in detail by statement or exhibit the appropriateness of claiming any additional items, not previously mentioned, in the measures of value.
B. [Reserved]
C. GAS UTILITIES ONLY, IN
ADDITION TO PROVIDING THE
INFORMATION REQUESTED IN ‘‘A.’’
HEREINABOVE:
1. Provide, with respect to the scope of operations of the utility, a description of all property, including an explanation of the system’s operation, and all plans for any significant future expansion, modification, or other alteration of facilities.
This description should include, but not be limited to the following:
a. If respondent has various gas service areas, indicate if they are integrated, such that the gas supply is available to all customers.
b. Provide all pertinent data regarding company policy related to the addition of new consumers in the company’s service area.
c. Explain how respondent obtains its gas supply, as follows:
(i) Explain how respondent stores or manufactures gas; if applicable.
(ii) State whether the company has peak shaving facilities.
(iii) Provide details of coal-gasification programs, if any.
(iv) Describe the potential for emergency purchases of gas.
(v) Provide the amount of gas in MCF supplied by various suppliers in the test year (include a copy of all contracts).
(vi) Provide the amount of gas in MCF supplied from company-owned wells during the test year.
d. Provide plans for future gas supply, as follows:
(i) Supply details of anticipated gas supply from respondent’s near-term development of gas wells, if any.
(ii) Provide gas supply agreements and well development ventures and identify the parties thereto.
e. Indicate any anticipated curtailments and explain the reasons for the curtailments.
f. Provide current data on any Federal Power Commission action or programs that may affect, or tend to affect, the natural gas supply to the gas utility.
2. Provide an overall system map, including and labeling all measuring and regulating stations, storage facilities, production facilities, transmission and distribution mains, by size, and all interconnections with other utilities and pipelines.
D. [Reserved]
E. [Reserved]
II. RATE OF RETURN
A. ALL UTILITIES
1. Provide capitalization and capitalization ratios for the last five-year period and projected through the next two years. (With short-term debt and without short-term debt.) (Company, Parent and System (consolidated)).
a. Provide year-end interest coverages before and after taxes for the last three years and at latest date. (Indenture and SEC Bases.) (Company, Parent and System (consolidated)).
b. Provide year-end preferred stock dividend coverages for last three years and at latest date (Charter and SEC bases).
2. Provide latest quarterly financial report (Company and Parent).
3. Provide latest Stockholder’s Report (Company and Parent).
4. Provide latest Prospectus (Company and Parent).
5. Supply projected capital requirements and sources of Company, Parent and System (consolidated) for each of future three years.
6. Provide a schedule of debt and preferred stock of Company, Parent and System (consolidated) as of test year-end and latest date, detailing for each issue (if applicable):
a. Date of issue
b. Date of maturity
c. Amount issued
d. Amount outstanding
e. Amount retired
f. Amount reacquired
g. Gain on reacquisition
h. Coupon rate
i. Discount or premium at issuance
j. Issuance expenses
k. Net proceeds
l. Sinking Fund requirements
m. Effective interest rate
n. Dividend rate
o. Effective cost rate
p. Total average weighted effective Cost Rate
7. Supply financial data of Company and/or Parent for last five years:
a. Earnings-price ratio (average)
b. Earnings-book value ratio (per share basis) (avg. book value)
c. Dividend yield (average)
d. Earnings per share (dollars)
e. Dividends per share (dollars)
f. Average book value per share yearly
g. Average yearly market price per share (monthly high-low basis)
h. Pre-tax funded debt interest coverage
i. Post-tax funded debt interest coverage
j. Market price-book value ratio
8. State amount of debt interest utilized for income tax calculations, and details of debt interest computations, under each of the following rate case bases:
a. Actual test year
b. Annualized test year-end
c. Proposed test year-end
9. State amount of debt interest utilized for income tax calculations which has been allocated from the debt interest of an affiliate, and details of the allocation, under each of the following rate case bases:
a. Actual test year
b. Annualized test year-end
c. Proposed test year-end
10. Under Section 1552 of the Internal Revenue Code and Regulations 1.1552-1 thereunder, if applicable, Parent Company, in filing a consolidated income tax return for the group, must choose one of four options by which it must allocate total income tax liability of the group to the participating members to determine each member’s tax liability to the federal government. (If this interrogatory is not applicable, so state.)
a. State what option has been chosen by the group.
b. Provide, in summary form, the amount of tax liability that has been allocated to each of the participating members in the consolidated income tax return.
c. Provide a schedule, in summary form, of contributions, which were determined on the basis of separate tax return calculations, made by each of the participating members to the tax liability indicated in the consolidated group tax return. Provide total amounts of actual payments to the tax depository for the tax year, as computed on the basis of separate returns of members.
d. Provide annual income tax return for group, and if income tax return shows net operating loss, provide details of amount of net operating loss allocated to the income tax returns of each of the members of the consolidated group.
11. Provide AFUDC charged by company at test year-end and latest date, and explain method by which rate was calculated.
12. Set forth provisions of Company’s and Parent’s charter and indentures (if applicable) which describe coverage requirements, limits on proportions of types of capital outstanding, and restrictions on dividend payouts.
13. Attach copies of the summaries of the projected 2 year’s Company’s budgets (revenue, expense and capital).
14. Describe long-term debt reacquisitions by Company and Parent as follows:
a. Reacquisitions by issue by year.
b. Total gain on reacquisitions by issue by year.
c. Accounting of gain for income tax and book purposes.
15. Set forth amount of compensating bank balances required under each of the following rate base bases:
a. Annualized test year operations.
b. Operations under proposed rates.
16. Provide the following information concerning compensating bank balance requirements for actual test year:
a. Name of each bank.
b. Address of each bank.
c. Types of accounts with each bank (checking, savings, escrow, other services, etc.).
d. Average Daily Balance in each account.
e. Amount and percentage requirements for compensating bank balance at each bank.
f. Average daily compensating bank balance at each bank.
g. Documents from each bank explaining compensating bank balance requirements.
h. Interest earned on each type of account.
17. Provide the following information concerning bank notes payable for actual test year:
a. Line of Credit at each bank.
b. Average daily balances of notes payable to each bank, by name of bank.
c. Interest rate charged on each bank note (Prime rate, formula rate or other).
d. Purpose of each bank note (e.g., construction, fuel storage, working capital, debt retirement).
e. Prospective future need for this type of financing.
18. Set forth amount of total cash (all cash accounts) on hand from balance sheets for last 24-calendar months preceding test year-end.
19. Submit details on Company or Parent common stock offerings (past 5 years to present) as follows:
a. Date of Prospectus
b. Date of offering
c. Record date
d. Offering period—dates and number of days
e. Amount and number of shares of offering
f. Offering ratio (if rights offering)
g. Per cent subscribed
h. Offering price
i. Gross proceeds per share
j. Expenses per share
k. Net proceeds per share (i-j)
l. Market price per share
1. At record date
2. At offering date
3. One month after close of offering
m. Average market price during offering
1. Price per share
2. Rights per share—average value of rights
n. Latest reported earnings per share at time of offering
o. Latest reported dividends at time of offering
20. Provide latest available balance sheet and income statement for Company, Parent and System (consolidated).
21. Provide Original Cost, Trended Original Cost and Fair Value rate base claims.
22. Provide Operating Income claims under:
(i) Present rates
(ii) Pro forma present rates (annualized & normalized)
(iii) Proposed rates (annualized & normalized)
b. Provide Rate of Return on Original Cost and Fair Value claims under:
(i) Present rates
(ii) Pro forma present rates
(iii) Proposed rates
23. List details and sources of ‘‘Other Property and Investment,’’ ‘‘Temporary Cash Investments’’ and ‘‘Working Funds’’ on test year-end balance sheet.
24. Attach chart explaining Company’s corporate relationship to its affiliates (System Structure).
25. If the utility plans to make a formal claim for a specific allowable rate of return, provide the following data in statement or exhibit form:
a. Claimed capitalization and capitalization ratios with supporting data.
b. Claimed cost of long-term debt with supporting data.
c. Claimed cost of short-term debt with supporting data.
d. Claimed cost of total debt with supporting data.
e. Claimed cost of preferred stock with supporting data.
f. Claimed cost of common equity with supporting data.
26. Provide the following income tax data:
a. Consolidated income tax adjustments, if applicable.
b. Interest for tax purposes (basis).
B. TELEPHONE UTILITIES ONLY, IN ADDITION
TO PROVIDING THE INFORMATION REQUESTED
IN ‘‘A.’’ HEREINABOVE, PROVIDE THE
FOLLOWING ADDITIONAL INFORMATION IF YOU
PROCURE MATERIALS, SUPPLIES, OR SERVICES
FROM A MANUFACTURING SUBSIDIARY:
1. Submit schedules on inter-company profits for last 7 years as follows:
a. Manufacturing subsidiaries’ sales to the company.
(i) Manufactured
(ii) Purchased
b. Manufacturing subsidiaries’ profit, before and after taxes, on such sales:
(i) Manufactured
(ii) Purchased
c. Income tax refunds to the Company due to such sales:
(i) Manufactured
(ii) Purchased
d. Breakdown as to amounts capitalized and expensed by Company with respect to such sales.
(i) Manufactured
(ii) Purchased
e. Detailed explanation of the income tax deferral on such sales, and how it was handled on the books of the Company and on the books of the Manufacturing Subsidiaries.
2. Submit schedules on inter-company profits for the last 7 years as follows:
a. Manufacturing subsidiaries’ income available for common equity, after debt interest:
(i) Manufactured
(ii) Purchased
b. Manufacturing subsidiaries’ year-end amounts of common equity:
(i) Manufactured
(ii) Purchased
c. Manufacturing subsidiaries’ rate of return on average of beginning and ending common equity amounts:
(i) Manufactured
(ii) Purchased
3. Provide the following:
a. Manufacturing subsidiares’ sales to:
(i) Other Parent Company operating telephone subsidiaries:
(a) Manufactured
(b) Purchased
b. Income Statement of Manufacturing Subsidiaries:
(i) Manufactured
(ii) Purchased
c. Balance Sheet of the Manufacturing Subsidiaries at year-end:
(i) Manufactured
(ii) Purchased
d. Net investment of Manufacturing Subsidiaries, and details of its computation:
(i) Manufactured
(ii) Purchased
e. Summary of total sales to each of the Operating Telephone Subsidiaries, showing amount of sales and profit ratios thereon by the following categories:
(i) Apparatus and Equipment
(a) Manufactured
(b) Purchased
(ii) Cable and Wire
(a) Manufactured
(b) Purchased
(iii) Supplies
(a) Manufactured
(b) Purchased
4. Submit the following data for affiliated companies which provided a service during the test year (directory, computer, management, or other):
a. Balance Sheet, detailing individual debt issues outstanding, preferred stock issues outstanding, and common equity for the test year.
b. Income statement, detailing debt interest, preferred stock dividends, and net income available for common equity for the test year.
c. Dollar total for each of the services provided during the test year.
5. Supply a copy of each of the service contracts, which define the contractual agreements as to revenues, expenses, and profits apportionments.
C. GAS UTILITIES ONLY, IN
ADDITION TO PROVIDING THE
INFORMATION REQUESTED IN ‘‘A.’’
HEREINABOVE:
1. Provide test year monthly balances for ‘‘Current Gas Storage’’ and notes financing such storage.
III. BALANCE SHEET AND OPERATING STATEMENT
A. ALL UTILITIES
BALANCE SHEET
1. Provide a comparative balance sheet for the test year and the preceding year which corresponds with the test year date.
2. Set forth the major items of Other Physical Property, Investments in Affiliated Companies and Other Investments.
3. Supply the amounts and purpose of Special Cash Accounts of all types, such as:
a. Interest and Dividend Special Deposits.
b. Working Funds other than general operating cash accounts.
c. Other special cash accounts and amounts (Temporary cash investments).
4. Describe the nature and/or origin and amounts of notes receivable, accounts receivable from associated companies, and any other significant receivables, other than customer accounts, which appear on balance sheet.
5. Provide the amount of accumulated reserve for uncollectible accounts, method and rate of accrual, amounts accrued, and amounts written-off in each of last three years.
6. Provide a list of prepayments and give an explanation of special prepayments.
7. Explain in detail any other significant (in amount) current assets listed on balance sheet.
8. Explain in detail, including the amount and purpose, the deferred asset accounts that currently operate to effect or will at a later date effect the operating account supplying:
a. Origin of these accounts.
b. Probable changes to this account in the near future.
c. Amortization of these accounts currently charged to operations or to be charged in the near future.
d. Method of determining yearly amortization for the following accounts:
—Temporary Facilities
—Miscellaneous Deferred Debits
—Research and Development
—Property Losses
—Any other deferred accounts that effect operating results.
9. Explain the nature of accounts payable to associated companies, and note amounts of significant items.
10. Provide details of other deferred credits as to their origin and disposition policy (e.g.—amortization).
11. Supply basis for Injury and Damages reserve and amortization thereof.
12. Provide details of any significant reserves, other than depreciation, bad debt, injury and damages, appearing on balance sheet.
13. Provide an analysis of unappropriated retained earnings for the test year and three preceding calendar years.
14. Provide schedules and data in support of the following working capital items:
a. Prepayments—List and identify all items
b. Federal Excise Tax accrued or prepaid
c. Federal Income Tax accrued or prepaid
d. Pa. State Income Tax accrued or prepaid
e. Pa. Gross Receipts Tax accrued or prepaid
f. Pa. Capital Stock Tax accrued or prepaid
g. Pa. Public Utility Realty Tax accrued or prepaid
h. State sales tax accrued or prepaid
i. Payroll taxes accrued or prepaid
j. Any adjustment related to the above items for ratemaking purposes.
Cash Working Capital
15. Supply an exhibit supporting the claim for working capital requirement based on the lead-lag method.
a. Pro forma expenses and revenues are to be used in lieu of book data for computing lead-lag days.
b. Respondent must either include sales for resale and related expenses in revenues and in expenses or exclude from revenues and expenses. Explain procedures followed (exclude telephone).
16. Provide detailed calculations showing the derivation of the tax liability offset against gross cash working capital requirements.
INCOME STATEMENT
17. Prepare a Statement of Income for the various time frames of the rate proceeding including:
Col. 1—Book recorded statement for the test year.
2—Adjustments to book record to annualize and normalize under present rates.
3—Income statement under present rates after adjustment in Col. 2
4—Adjustment to Col. 3 for revenue increase requested.
5—Income statement under requested rates.
a. Expenses may be summarized by the following expense classifications for purposes of this statement:
Operating Expenses (by category)
Depreciation
Amortization
Taxes, Other than Income Taxes
Total Operating Expense
Operating Income Before Taxes
Federal Taxes
State Taxes
Deferred Federal
Deferred State
Income Tax Credits
Other Credits
Other Credits and Charges, etc.
Total Income Taxes
Net Utility Operating Income
Other Income & Deductions
Other Income
Detailed listing of Other Income used in Tax Calculation
Other Income Deduction
Detailed Listing
Taxes Applicable to Other Income and Deductions
Listing
Income Before Interest Charges
Listing of all types of Interest Charges and all amortization of Premiums and/or Discounts and Expenses on Debt issues
Total Interest
Net Income After Interest Charges
(Footnoteeach adjustment to the above statements with explanation in sufficient clarifying detail.)
18. Provide comparative operating statements for the test year and the immediately preceding 12 months showing increases and decreases between the two periods. These statements should supply detailed explanation of the causes of the major variances between the test year and preceding year by detailed account number.
Operating Expenses
19. List extraordinary property losses as a separate item, not included in operating expenses or depreciation and amortization. Sufficient supporting data must be provided.
20. Supply detailed calculations of amortization of rate case expense, including supporting data for outside services rendered. Provide the items comprising the rate case expense claim (include the actual billings or invoices in support of each kind of rate case expense), the items comprising the actual expenses of prior rate cases and the unamortized balances.
21. Submit detailed computation of adjustments to operating expenses for salary, wage and fringe benefit increases (union and non-union merit, progression, promotion and general) granted during the test year and six months subsequent to the test year. Supply data showing for the test year:
a. Actual payroll expense (regular and overtime separately) by categories of operating expenses, i.e., maintenance, operating transmission, distribution, other.
b. Date, percentage increase, and annual amount of each general payroll increase during the test year.
c. Dates and annual amounts of merit increases or management salary adjustments.
d. Total annual payroll increases in the test year.
e. Proof that the actual payroll plus the increases equal the payroll expense claimed in the supporting data (by categories of expenses).
f. Detailed list of employe benefits and cost thereof for union and non-union personnel. Any specific benefits for executives and officers should also be included, and cost thereof.
g. Support the annualized pension cost figures.
(i) State whether these figures include any unfunded pension costs. Explain.
(ii) Provide latest actuarial study used for determining pension accrual rates.
h. Submit a schedule showing any deferred income and consultant fee to corporate officers or employees.
22. Supply an exhibit showing an analysis, by functional accounts, of the charges by affiliates (Service Corporations, etc.) for services rendered included in the operating expenses of the filing company for the test year and for the 12-month period ended prior to the test year:
a. Supply a copy of contracts, if applicable.
b. Explain the nature of the services provided.
c. Explain basis on which charges are made.
d. If charges allocated, identify allocation factors used.
e. Supply the components and amounts comprising the expense in this account.
f. Provide details of initial source of charge and reason thereof.
23. Describe costs relative to leasing equipment, computer rentals, and office space, including terms and conditions of the lease. State method for calculating monthly or annual payments.
24. Submit detailed calculations (or best estimates) of the cost resulting from major storm damage.
25. Submit details of expenditures for advertising (National and Institutional and Local media). Provide a schedule of advertising expense by major media categories for the test year and the prior two comparable years with respect to:
a. Public health and safety
b. Conservation of energy
c. Explanation of Billing Practices, Rates, etc.
d. Provision of factual and objective data programs in educational institutions
e. Other advertising programs
f. Total advertising expense
26. Provide a list of reports, data, or statements requested by and submitted to the Commission during and subsequent to the test year.
27. Prepare a detailed schedule for the test year showing types of social and service organization memberships paid for by the Company and the cost thereof.
28. Submit a schedule showing, by major components, the expenditures associated with Outside Services Employed, Regulatory Commission Expenses and Miscellaneous General Expenses, for the test year and prior two comparable years.
29. Submit details of information covering research and development expenditures, including major projects within the company and forecasted company programs.
30. Provide a detailed schedule of all charitable and civic contributions by recipient and amount for the test year.
31. Provide a detailed analysis of Special Services—Account 795.
32. Provide a detailed analysis of Miscellaneous General Expense—Account No. 801.
33. Provide a labor productivity schedule.
34. List and explain all non-recurring abnormal or extraordinary expenses incurred in the test year which will not be present in future years.
35. List and explain all expenses included in the test year which do not occur yearly but are of a nature that they do occur over an extended period of years. (e.g.—Non-yearly maintenance programs, etc.)
[Responses shall be submitted and identified as exhibits.]
36. Using the adjusted year’s expenses under present rates as a base, give detail necessary for clarification of all expense adjustments. Give clarifying detail for any such adjustments that occur due to changes in accounting procedure, such as charging a particular expense to a different account than was used previously. Explain any extraordinary declines in expense due to such change of account use.
37. Indicate the expenses that are recorded in the test year, which are due to the placement in operating service of major plant additions or the removal of major plant from operating service, and estimate the expense that will be incurred on a full-year’s operation.
38. Submit a statement of past and anticipated changes, since the previous rate case, in major accounting procedures.
39. Identify the specific witness for all statements and schedules of revenues, expenses, taxes, property, valuation, etc.
40. Adjustments which are estimated shall be fully supported by basic information reasonably necessary.
41. Submit a statement explaining the derivation of the amounts used for projecting future test year level of operations and submit appropriate schedules supporting the projected test year level of operations.
42. If a company has separate operating divisions, an income statement must be shown for each division, plus an income statement for company as a whole.
43. If a company’s business extends into different states or jurisdictions, then statements must be shown listing Pennsylvania jurisdictional data, other state data and federal data separately and jointly (Balance sheets and operating accounts).
44. Ratios, percentages, allocations and averages used in adjustments must be fully supported and identified as to source.
45. Provide an explanation of any differences between the basis or procedure used in allocations of revenues, expenses, depreciation and taxes in the current rate case and that used in the prior rate case.
46. Supply a copy of internal and independent audit reports of the test year and prior calendar year, noting any exceptions and recommendations and disposition thereof.
47. Submit a schedule showing rate of return on facilities allocated to serve wholesale customers.
Taxes, Other than Income Taxes
48. Provide a copy of the latest capital stock tax report and the latest capital stock tax settlement.
49. Submit details of calculations for Taxes, Other than Income where a company is assessed taxes for doing business in another state, or on its property located in another state.
50. Provide a schedule of federal and Pennsylvania taxes, other than income taxes, calculated on the basis of test year per books, pro forma at present rates, and pro forma at proposed rates, to include the following categories:
a. social security
b. unemployment
c. capital stock
d. public utility realty
e. P.U.C. assessment
f. other property
g. any other appropriate categories
Income Taxes
51. Submit a schedule showing for the last five years the income tax refunds, plus interest (net of taxes), received from the federal government due to prior years’ claims.
52. Provide detailed computations showing the deferred income taxes derived by using accelerated tax depreciation applicable to post-1969 utility property increases productive capacity, and ADR rates on property. (Separate between state and federal; also, rate used)
a. State whether tax depreciation is based on all rate base items claimed as of the end of the test year, and whether it is the annual tax depreciation at the end of the test year.
b. Reconcile any difference between the deferred tax balance, as shown as a reduction to measures of value (rate base), and the deferred tax balance as shown on the balance sheet.
53. Submit a schedule showing a breakdown of the deferred income taxes by state and federal per books, pro-forma existing rates, and under proposed rates.
54. Submit a schedule showing a breakdown of accumulated investment tax credits (3 percent, 4 percent, 7 percent, 10 percent and 11 percent), together with details of methods used to write-off the unamortized balances.
55. Submit a schedule showing the adjustments for taxable net income per books (including below-the-line items) and pro-forma under existing rates, together with an explanation of any difference between the adjustments. Indicate charitable donations and contributions in the tax calculation for rate making purposes.
56. Submit detailed calculations supporting taxable income before state and federal income taxes where the income tax is subject to allocation due to operations in another state, or due to operation of other taxable utility or non-utility business, or by operating divisions or areas.
57. Submit detailed calculations showing the derivation of deferred income taxes for amortization of repair allowance if such policy is followed.
[Note: Submit additional schedules if the company has more than one ac- counting area.]
58. Furnish a breakdown of major items comprising prepaid and deferred income tax charges and other deferred income tax credits and reserves by accounting areas.
59. Provide details of the Federal Surtax Credit allocated to the Pennsylvania jurisdictional area, if applicable.
60. Explain the reason for the use of cost of removal of any retired plant figures in the income tax calculations.
61. Submit the corresponding data applicable to Pennsylvania Corporate Income Tax deferment.
a. Show the amounts of straight line tax depreciation and accelerated tax depreciation, the difference between which gave rise to the normalizing tax charged back to the test year operating statement.
b. Show normalization for both Federal and State Income Taxes.
c. Show tax rates used to calculate tax deferment amount.
62. Provide the accelerated tax depreciation and the book depreciation used to calculate test year deferrals in amounts segregated as follows:
For:
a. Property installed prior to 1970
b. Property installed subsequent to 1969 (indicate increasing capacity additions and nonincreasing capacity additions).
63. State whether all tax savings due to accelerated depreciation on property installed prior to 1970 have been passed through to income. (If not, explain).
64. Show any income tax loss/gain carryovers from previous years that may effect test year income taxes or future year income taxes. Show loss/gain carryovers by years of origin and amounts remaining by years at the end of the test year.
65. State whether the company eliminates any tax savings by the payment of actual interest on construction work in progress not in rate base claim.
If response is affirmative:
a. Set forth amount of construction claimed in this tax savings reduction. Explain the basis for this amount.
b. Explain the manner in which the debt portion of this construction is determined for purposes of the deferral calculations.
c. State the interest rate used to calculate interest on this construction debt portion, and the manner in which it is derived.
d. Provide details of calculation to determine tax saving reduction. State whether state taxes are increased to reflect the construction interest elimination.
66. Provide a detailed analysis of Taxes Accrued per books as of the test year date. Also supply the basis for the accrual and the amount of taxes accrued monthly.
67. For the test year as recorded on test year operating statement:
a. Supply the amount of federal income taxes actually paid.
b. Supply the amount of the federal income tax normalizing charge to tax expense due to excess of accelerated tax depreciation over book depreciation.
c. Supply the normalizing tax charge to federal income taxes for the 10% Job Development Credit during test year.
d. Provide the amount of the credit of federal income taxes due to the amortization or normalizing yearly debit to the reserve for the 10% Job Development Credit.
e. Provide the amount of the credit to federal income taxes for the normalizing of any 3% Investment Tax Credit Reserve that may remain on the utility books.
68. Provide the debit and credit in the test year to the Deferred Taxes due to Accelerated Depreciation for federal income tax, and provide the debit and credit for the Job Development Credits (whatever account) for test year.
69. Reconcile all data given in answers to questions on income taxes charged on the test year operating statement with regard to income taxes paid, income taxes charged because of normalization and credits due to yearly write-offs of past years’ income tax deferrals, and from normalization of investment tax and development credits. (Both state and federal income taxes.)
70. With respect to determination of income taxes, federal and state:
a. Show income tax results of the annualizing and normalizing adjustments to the test year record before any rate increase.
b. Show income taxes for the annualized and normalized test year.
c. Show income tax effect of the rate increase requested.
d. Show income taxes for the normalized and annualized test year after application of the full rate increase.
[It is imperative that continuity exists between the income tax calculations as recorded for the test year and the final income tax calculation under proposed rates. If the company has more than one accounting area, then additional separate worksheets must be provided in addition to those for total company.]
71. In adjusting the test year to an annualized year under present rates, explain any changes that may be due to book or tax depreciation change and to debits and credits to income tax expense due to accelerated depreciation, deferred taxes, job development credits, tax refunds or other items.
(The above refers only the adjustments going from recorded test year to annualized test year.)
B. [Reserved]
C. [Reserved]
D. [Reserved]
E. GAS UTILITIES, IN ADDITION TO
PROVIDING THE INFORMATION
REQUESTED IN ‘‘A.’’ HEREINABOVE:
Balance Sheet
1. If Unrecovered Fuel Cost policy is implemented, provide the following:
a. State manner in which amount of Unrecovered Fuel Cost on balance sheet at the end of the test year was determined, and the month in test year in which such fuel expense was actually incurred. Provide amount of adjustment made on the rate case operating account for test year-end unrecovered fuel cost. (If different than balance sheet amount, explain.)
b. Provide amount of Unrecovered Fuel Cost that appeared on the balance sheet at the opening date of the test year, and the manner in which it was determined. State whether this amount is in the test year operating account.
2. Provide details of items and amounts comprising the accounting entries for Deferred Fuel Cost at the beginning and end of the test year.
REVENUES
OPERATING REVENUES
3. Submit a schedule showing a reconciliation of test year MCF sales and line losses. List all amounts of gas purchased, manufactured and transported.
4. Provide detailed calculations substantiating the adjustment to revenues for annualization of changes in number of customers and annualization of changes in volume sold for all customers for the test year.
a. Break down changes in number of customers by rate schedules.
b. If an annualization adjustment for changes in customers and changes in volume sold is not submitted, please explain.
5. Submit a schedule showing the sources of gas supply associated with annualized MCF sales.
6. Supply, by classification, Operating Revenues—Miscellaneous for test year.
7. Provide details of respondent’s attempts to recover uncollectible and delinquent accounts.
8. Describe how the net billing and gross billing is determined. For example, if the net billing is based on the rate blocks plus FCA and STA, and the gross billing is determined by a percentage increase (1, 3 or 5 percent), then state whether the percentage increase is being applied to all three items of revenue—rate blocks plus FCA and STA.
9. Describe the procedures involved in determining whether forfeited discounts or penalties are applied to customer billing.
10. Provide annualization of revenues as a result of rate changes occuring during the test year, at the level of operations as of end of the test year.
11. Provide a detailed billing analysis supporting present and proposed rates by customer classification and/or tariff rate schedule.
12. Provide a schedule showing residential and commercial heating sales by unit (MCF) per month and degree days for the test year and three preceding twelve month periods.
13. Provide a schedule of present and proposed tariff rates showing dollar change and percent of change by block. Also, provide an explanation of any change in block structure and the reasons therefor.
14. Provide the following statements and schedules. The schedules and state ments for the test year portion should be reconciled with the summary operating statement.
a. An operating revenues summary for the test year and the year preceding the test year showing the following (Gas MCF):
(i) For each major classification of customers
(a) MCF sales
(b) Dollar Revenues
(c) Forfeited Discounts (Total if not available by classification)
(d) Other and Miscellaneous revenues that are to be taken into the utility operating account along with their related costs and expenses.
(ii) A detailed explanation of all annualizing and normalizing adjustments showing method utilized and amounts and rates used in calculation to arrive at adjustment.
(iii) Segregate, from recorded revenues from the test year, the amount of revenues that are contained therein, by appropriate revenue categories, from:
(a) Fuel Adjustment Surcharge
(b) State Tax Surcharge
(c) Any other surcharge being used to collect revenues.
(d) Provide explanations if any of the surcharges are not applicable to respondent’s operations.
[The schedule should also show number of customers and unit of sales (Mcf), and should provide number of customers by service classification at beginning and end of test year.]
b. Provide details of sales for resale, based on periods five years before and projections for five years after the test year, and for the test year. List customers, Mcf sold, revenues received, source of Mcf sold (storage gas, pipeline gas, manufactured gas, natural or synthetic), contracted or spot sales, whether sales are to affiliated companies, and any other pertinent information.
15. State manner in which revenues are being presented for ratemaking purposes:
a. Accrued Revenues
b. Billed Revenues
c. Cash Revenues
Provide details of the method followed.
16. If revenue accruing entries are made on the books at end of each fiscal period, give entries made accordingly at the end of the test year and at the beginning of the year. State whether they are reversed for ratemaking purposes.
17. State whether any adjustments have been made to expenses in order to present such expenses on a basis comparable to the manner in which revenues are presented in this proceeding (i.e.—accrued, billed or cash).
18. If the utility has a Fuel Adjustment Clause:
a. State the base fuel cost per MCF chargeable against basic customers’ rates during the test year. If there was any change in this basic fuel charge during the test year, give details and explanation thereof.
b. State the amount in which the fuel adjustment clause cost per MCF exceeds the fuel cost per MCF charged in base rates at the end of the test year.
c. If fuel cost deferment is used at the end of the test year, give
(i) The amount of deferred fuel cost contained in the operating statement that was deferred from the 12-month operating period immediately preceding the test year.
(ii) The amount of deferred fuel cost that was removed from the test period and deferred to the period immediately following the test year.
d. State the amount of Fuel Adjustment Clause revenues credited to the test year operating account.
e. State the amount of fuel cost charged to the operating expense account in the test year which is the basis of Fuel Adjustment Clause billings to customers in that year. Provide summary details of this charge.
f. From the recorded test year operating account, remove the Fuel Adjustment Clause Revenues. Also remove from the test year recorded operating account the excess of fuel cost over base rate fuel charges, which is the basis for the Fuel Adjustment charges. Explain any difference between FAC Revenues and excess fuel costs. [The above is intended to limit the operating account to existing customers’ base rate revenues and expense deductions relative thereto].
19. Provide growth patterns of usage and customer numbers per rate class, using historical and projected data.
20. Provide, for test year only, a schedule by tariff rates and by service classifications showing proposed increase and percent of increase.
21. If a gas company is affiliated with another utility segment, such as a water or electric segment, explain the effects, if any, upon allocation factors used in the gas rate filing of current or recent rate increases allowed to the other utility segment (or segments) of the company.
22. Provide supporting data detailing curtailment adjustments, procedures and policies.
OPERATING EXPENSES
23. Submit a schedule showing fuel cost in excess of base compared to fuel cost recovery for the period two months prior to test year and the test year.
24. Supply a detailed analysis of Purchased Gas for the test year and the twelve month period prior to the test year.
25. Submit calculations supporting energy cost per M
