Subchapter D. ADJUSTMENT OF ELECTRIC DISTRIBUTION COMPANY RATES FOR CHANGES IN STATE TAX LIABILITY

 (a)  The Commission will permit an EDC to recover from customers changes in its State tax liability arising from sections 2806(g), 2809(c) and 2810 of the code (relating to implementation, pilot programs and performance-based rates; requirements for electric generation suppliers; and revenue-neutral reconciliation) and § §  69.51—69.56 (relating to inclusion of State taxes and gross receipts taxes in base rates) to the extent that the resulting rates do not exceed the rate or price cap.

 (b)  An EDC seeking recovery of changes in its State tax liability under this section shall provide the following information to the Commission:

   (1)  A description of the surcharge proposed by the EDC, and a statement of reasons for the proposed rate change.

   (2)  A statement that the surcharge becomes effective for service rendered beginning 60 days after the filing of the tariffs or tariff supplements.

   (3)  If applicable, the calculations supporting the amount of its tax liability arising from the RNR.

   (4)  If applicable, the amount of payments under sections 2806(g) and 2809(c) of the code for the immediately preceding 12-month period ending on June 30, plus interest accrued at 6% per year from the time of payment until the time the payments are reflected in customer rates, supported by a copy of the notification received from the Department assessing these taxes and related interest.

   (5)  If applicable, an affidavit which states that the EDC has not recovered the taxes through tariff indemnification tariff provisions or other means, and that the Department has assessed the taxes.

 (a)  An EDC proposing to increase its rates above the rate cap due to the RNR shall file a single issue rate proceeding under section 1308(a) of the code (relating to voluntary changes in rates).

 (b)  The EDC’s filing provides information which enables the Commission to determine if the filing is an accurate claim for the amount of its tax liability arising from the RNR and whether recovery of its RNR tax liability causes the resulting rates to exceed the rate cap.

 (c)  Within 30 days of receiving the Department’s notice of the change in the applicable tax rate established by the RNR, an EDC proposing to increase its rates as described in this section shall provide the following information to the Commission:

   (1)  A statement that the reason for the proposed rate increase is to permit the EDC to recover that portion of its RNR tax liability that produces rates above the rate cap.

   (2)  A proof of revenue calculation by rate class demonstrating the impact of the proposed rate increase upon each class of customers. The EDC shall, at a minimum, show both the dollar and percentage change being proposed for each tariffed rate.

   (3)  A description of the surcharge for recovering the increased tax liability.

   (4)  A notice that the surcharge becomes effective 60 days from the date the EDC files the proposed rate increase.

 (a)  The Commission will permit an EDC to recover, through its State Tax Adjustment Surcharge or other appropriate mechanism, changes in its State tax liability and related interest under sections 2806(g) and 2809(c) of the code (relating to implementation, pilot programs and performance-based rates; and requirements for electric generation suppliers) when that recovery produces rates above the rate cap, upon certification by affidavit that the following apply:

   (1)  The EDC has not recovered the taxes due pursuant to its tariff indemnification provisions.

   (2)  The Department has not collected the taxes due under the other means set forth in sections 2806(g)(3)(iii) and 2809(c)(2).

 (b)  In addition to the affidavit required under subsection (a), the EDC shall file with the Commission:

   (1)  A statement of the amount of payments under section 2806(g) or 2809(c) for the immediately preceding 12-month period ending on June 30, plus interest accrued at 6% per year from the time of payment until the time the payments are reflected in customer rates, supported by a copy of the notification received from the Department assessing these taxes and related interest.

   (2)  A proof of revenue calculation by rate class demonstrating the impact of the proposed rate increase upon each class of customers. The dollar and percentage changes shall be shown for each tariffed rate.

   (3)  A description of the surcharge for recovering the increased tax liability.

   (4)  A statement that the surcharge becomes effective for service rendered beginning 60 days after the filing of tariffs or tariff supplements.

 (a)  Surcharge calculation. Every EDC subjected to new or increased State taxes under sections 2806(g), 2809(c) and 2810 of the code (relating to implementation, pilot programs and performance-based rates; requirements for electric generation suppliers; and revenue-neutral reconciliation) and § §  69.51—69.56 (relating to inclusion of State taxes and gross receipts taxes in base rates) that proposes to modify its STAS to recover these taxes shall include the following information in its surcharge calculation:

   (1)  The amounts paid under sections 2806(g) and 2809(c) for the immediately preceding 12-month period ending on June 30, plus interest accrued at 6% per year from the time of payment until the time the payments are reflected in customer rates. The EDC shall also provide an affidavit that it has not recovered these taxes under the other means in sections 2806(g)(3)(iii) and 2809(c)(2) of the code.

   (2)  Adjustments to the gross receipts tax rate pursuant to the RNR.

   (3)  When applicable, paragraphs (1) and (2) shall be added to any other amounts recoverable under the STAS.

   (4)  The total of paragraph (3) divided by a factor which is the complement of the Gross Receipts Tax (GRT) rate (1 minus the GRT rate), adjusted by the RNR to the extent that recovery is approved by the Commission under section 2804(16) of the code (relating to standards for restructuring of electric industry).

   (5)  The quotient of paragraph (4) divided by gross intrastate operating revenues derived from service under rates subject to the jurisdiction of the Commission for the most recently completed calendar year, exclusive of the revenues produced by the surcharge permitted by subsection (a). This quotient shall be expressed as a percentage.

   (2)  If the EDC increased or decreased its rates under the Commission’s jurisdiction during or after the most recently completed calendar year, it shall include in its computation the appropriate adjustments to paragraphs (1)—(5), as if the increased or decreased rates had been in effect for all of that calendar year.

 (b)  For rate changes that require the STAS to be filed under this section, every EDC shall provide the following information to the Commission:

   (1)  For a change in an EDC’s RNR tax liability contained in a notice from the Department, the information described in §  54.94(b)(3) (relating to recovery of changes in State tax liability).

   (2)  For amounts paid by an EDC under sections 2806(g) and 2809(c) of the code, the information described in §  54.94(b)(4).

 (a)  An EDC proposing to increase its rates under §  54.94 or §  54.96 (relating to recovery of changes in State tax liability; and recovery of sections 2806(g) and 2809(c) tax liability producing rates above the rate cap) shall provide customer notice as provided in §  53.45(g) (relating to public notice of new tariffs and tariff changes).

 (b)  An EDC proposing to increase its rates under §  54.95 (relating to recovery of RNR tax liability producing rates above the rate cap) shall provide customer notice and follow the tariff posting procedures in § §  53.41—53.45 (relating to posting of tariffs and notices).