1002 Minimum Filing Requirements for All Regulated Companies Subject to the Jurisdiction of the Public Service Commission

4.2.2 Indicate on schedule 2 in the column titled "26 Del.C. §102(3) Letter Ref." the appropriate letter reference designating the Section of the Code upon which the applicant relies for the inclusion of each item in Rate Base as set forth in subsection 4.1.

4.3 Used and Useful Utility Plant

4.3.1 Complete Schedule 2A showing total utility plant in service by major plant categories, as allocated to this jurisdiction with adjustments, if any are proposed.

4.3.2 Where rate base is computed using a 12-month or 13-month average, provide the data for the end of each month included in the calculation. Please provide the calculation for either the 12-month or 13-month average used.

4.3.3 Where rate base is allocated among jurisdictions, identify the allocation factors used and the basis for using those allocation factors.

4.3.4 Adjustments to the test year data must be fully identified and explained.

4.3.5 Utilities permitted by law to collect a Distribution System Improvement Charge ("DSIC") shall not include post-test period projected DSIC-eligible plant in their proposed used and useful utility plant. All DSIC-eligible plant shall be collected through the DSIC as provided in 26 Del.C. §§314 and 315 and 26 DE Admin.Code 1009.

4.4 Intangible Assets

4.4.1 If intangible assets are claimed in rate base, complete Schedule No. 2B.

4.4.2 Provide a statement of the specific reasons for inclusion in rate base.

4.5 Accumulated Depreciation and Amortization

4.5.1 Complete Schedule 2C showing accumulated reserve for depreciation by major plant categories if records permit.

4.5.2 When rate base is computed using a 12-month average, provide the data for the end of each month included in the calculation.

4.5.3 When rate base is allocated among jurisdictions, identify the allocation factors used and the basis for using those allocation factors.

4.5.4 Adjustments to test year data must be fully identified and explained.

4.6 Unrefunded Customer Advances and/or Contributions in Aid of Construction

4.6.1 Provide a schedule showing the actual amounts at the beginning and end of the test year and test period.

4.6.2 If estimated amounts are included, explain the basis of such estimate.

4.7 Accumulated Deferred Income Taxes and Unamortized Investment Credit

4.7.1 Complete Schedule 2D providing complete analysis of all deferred income taxes. Provide 1 schedule each for Federal Income Taxes and State Income Taxes.

4.7.2 The specific deferred income taxes shown on Schedule 2D lists some but not necessarily all deferred income taxes that may be applicable to a particular utility, hence the accounts shown should be modified as appropriate.

4.7.3 Provide a statement which fully explains the utility's deferred tax accounting practices, i.e., the basis upon which annual tax deferrals are determined and the basis upon which deferred tax reserves are charged or credited to current period.

4.7.4 Identify and provide an itemization of each tax credit balance and amortization included in the utility's rate application.

4.7.5 Provide the amount of tax or other credits available but not utilized as of the end of the test year.

4.8 Accumulated Depreciation of Customer Advances and Contributions in Aid of Construction

4.8.1 Provide a statement which describes the accounting procedures used to segregate depreciation reserves between investor provided and contributed property.

4.8.2 Provide a schedule showing the actual amounts at the beginning and end of the test year and test period.

4.8.3 If estimated amounts are included, explain the basis of such estimates.

4.9 Material and Supplies

4.9.1 If a claim is made for Material and Supplies, provide a schedule showing the balance in each of the major groupings of material and supplies for each of the 12 months preceding the test year, for the test year and for the test period.

4.9.2 If estimated balances are included, explain the basis for such estimates.

4.9.3 Explain any variances greater than $500,000 for utilities with Total Gross Revenue equal or greater than $100,000,000 and 5% for utilities with Total Gross Revenue less than $100,000,000 for the period of time for which average Materials and Supplies total balances are included.

4.9.4 When materials and supplies are computed using an average, provide the balances for the end of the month included in the calculation.

4.10 Investor Supplied Cash Working Capital

4.10.1 Complete Schedule 2E showing the components of investor supplied cash working capital included in the rate base claim.

4.10.2 Other items. If any other items are included in the working capital claim, provide a full and complete explanation in support thereof including the calculation which demonstrates the amounts so included as investor-provided funds with reference to 26 Del.C. §102(3).

4.11 Other Element of Property

4.11.1 Complete Schedule 2F to provide the amount, description, and justification for inclusion in rate base.

4.11.2 Provide a statement of the specific reasons for inclusion in rate base with reference to 26 Del.C. §102(3).

4.11.3 If a rate base claim is made for non-DSIC property under construction but not used and useful in whole or in part during the test period, provide a schedule showing each major project and indicate whether or not the project will add capacity or replace existing capacity or both. If major units of capacity are being added, show in calculation the additional revenue expected to be realized. If major units of capacity are being retired, indicate the type of property, its original cost, accumulated reserves for depreciation and the expected date of retirement from service.

27 DE Reg. 117 (08/01/23)

5.0 Net Operating Income

5.1 Jurisdictional Summary of Net Operating Income

5.1.1 Complete Schedule 3 providing a jurisdictional summary of net operating income for the historic test year on an actual basis and for the test period.

5.2 Revenues

5.2.1 Complete Schedule 3A showing operating revenues by major revenue category, including other operating revenues and uncollectible operating revenues, for the test year, and for the test period.

5.2.2 Electric, Gas and Water Utilities. For each tariff rate, submit a schedule showing the volume of tariff unit sales for 2 years preceding the test year, the test year, and the test period. For the purpose of this section, the volume of tariff unit sales means:

Electric - KWH sold

Gas - MCF sold

Water - Gallons sold and hydrant fees.

5.2.3 If test period volumes of sales or tariff units are based on an estimate or forecast, provide a full and complete explanation of the basis and assumptions underlying such forecast, including weather assumptions and any price elasticity effects.

5.2.4 Test period revenues should be fully detailed and explained including all mathematical calculations related thereto. This information should follow Schedule 3A with appropriate adjustments referenced to the amounts shown on Schedule 3A.

5.3 Operating Expenses

5.3.1 Complete Schedule 3B showing operating expenses, by major expense category for the test year and for the test period.

5.3.2 Test period operating expenses should be fully detailed and explained including all mathematical calculations related thereto. This information should follow Schedule 3B with appropriate adjustments referenced to the adjustment amounts shown on Schedule 3B.

5.3.3 Complete Schedule 3C showing test year and test period payroll and employee benefit experience. The expense portion of the total payroll costs should equal the payroll and benefit expense included in the various categories of Schedule 3B.

5.3.4 Complete Schedule 3D for the 5 highest paid executives showing the most recently approved base salary and itemization of all other compensation (current and deferred) on an annual basis using the most recent actual data publicly available.

5.3.5 Provide a statement of procedures used for determining depreciation rates utilized to compute the depreciation expense claim (Schedule 3B). State whether the utility is basing its depreciation rates on a study conducted for this rate application, or whether the utility is using depreciation rates previously approved by the Commission or implicit in a rate determination approved by the Commission. If the latter, state when the most recent depreciation study was performed, the docket number of the case in which it was submitted, and the numbers and dates of the order(s) approving those depreciation rates.

5.3.6 Provide a schedule showing the current and proposed depreciation accrual rate and expense by individual plant account (if not provided in the detailed supporting adjustments in Schedule 2C.

5.3.7 If a change in depreciation rates is proposed, provide a copy of the most recent depreciation study that is relied on to support the depreciation rates used for the purpose of Schedule 3B.

5.3.8 Complete Schedule 3E providing a test year summary of sales promotion, advertising and miscellaneous sales expenses. Classify advertising expense by purpose, i.e., product or service promotion, service aids, personnel and institutional.

5.3.9 Complete Schedule 3F providing all test year contributions for educational or other charitable purposes included in the operating expense totals which applicant seeks to recover from rate payers. Provide the organization names, a description of the organization, tax status, and reason for inclusion in rates.

5.3.10 Submit a statement listing all test year and test period lobbying fees paid or to be paid influencing legislation both at the state and national levels that the utility seeks to recover from ratepayers. Where a utility employee performed this activity less than full time, furnish the basis for allocations of payroll and related costs.

5.3.11 Complete Schedule 3G listing test year and test period dues paid or to be paid by the company for social and service clubs that the utility seeks to recover from ratepayer. Include costs paid directly by the utility for any executive or employee recreational or "conference" facilities. Provide the organization name, a description of the organization, tax status, and reason for inclusion in rates.

5.3.12 Complete Schedule 3H providing an analysis of actual and projected rate case expenses. If the utility is using outside consultants and counsel and used a bidding process, provide copies of the utility's request for proposals and all bids received in response. Provide the amount paid to outside consultants and counsel that provided services in the utility's last rate case.

5.3.13 Provide a schedule by major expense category of all the amounts charged or credited from each affiliated company for the test year and the test period. Provide the basis of allocation or basis of charging. State whether there has been a change in allocation method or pricing formula since the last general rate case and, finally, describe the services or products provided in Delaware and the benefits of such arrangements.

5.3.14 Operating Taxes.

5.3.14.1 Complete Schedule 3I to agree with the amount shown on Schedule 3, line 4 titled Total Operating Taxes, for the test year and for the test period.

5.3.14.2 Complete Schedules 3J and 3K in support of the amount of current and deferred state and federal income tax claimed by the utility for ratemaking purposes as reflected in total on Schedule 3I.

5.3.14.3 Provide a statement of the utility's income tax accounting practice with respect to timing differences related to liberalized depreciation, the Asset Depreciation Range System, accelerated amortization and cost of removal and all other timing differences such as employee benefits and taxes capitalized.

5.3.14.4 . Provide a statement of the utility's accounting practice with respect to all federal tax credits applicable to this filing, including a copy of all elections filed with the Internal Revenue Service related thereto.

5.3.14.5 Utilities which "normalize" all or any portion of tax credits must complete Schedule 3L.

5.3.14.6 If the utility is part of an affiliated group of companies and its federal income tax return is filed as part of a consolidated federal income tax return, please provide a statement of the procedure used to allocate the consolidated federal income tax liability, the benefits of the consolidated return, and how those benefits are reflected on the utility's books.

5.3.14.7 Complete Schedule 3M for all other Federal, State and local taxes for the test year and for the test period

5.4 Allowance for Funds Used During Construction (AFUDC)

5.4.1 Provide a schedule showing the following:

5.4.1.1 The AFUDC rate employed by the Commission in the last rate Decision.

5.4.1.2 The AFUDC rate used in each month from the end of the test period in the last case through the end of the test year and test period.

5.4.2 Provide a statement describing the methodology employed to complete the AFUDC rates for all periods of time specified in subsection 5.4.1 above.

5.4.3 Provide a statement fully describing how the AFUDC is applied in the accounting procedures.

5.5 Other Income. Provide a schedule describing the nature and amount of each item of other income for the test year and test period.

27 DE Reg. 117 (08/01/23)

6.0 Rate of Return

6.1 Summary of Claimed Rate of Return

6.1.1 Complete Schedule 4 providing a summary report of the proposed rate of return, including a weighted cost of capital analysis.

6.1.2 Complete Schedule 4A providing the utility's actual and estimated capital structure for the end of the test year and test period. A capital structure based on a time period beyond the test year shall be accompanied by a statement of projected new issues and retirements.

6.2 Embedded Cost of Debt

6.2.1 Describe how short-term debt is allocated between rate base and non-rate base Construction Work in Progress. Describe compensating balance requirements of credit line banks and supply documentation in support of such requirements. If the compensating balance requirements exceed the cash and float included in working capital claim, give a statement explaining the excess.

6.2.2 Complete Schedules 4B and 4C to show the composition of the embedded cost of long-term debt. Use the debt costs most appropriate to the capital structure adopted, e.g., if a test year end capital structure is used, use a test year end embedded cost analysis.

6.2.3 Describe long-term debt reacquisitions by utility and parent company, if applicable, as follows: reacqusitions by issue by year; total gain by acquisitions by year; accounting of gain for income tax and book purposes.

6.2.4 In the event that the utility believes the true or economic cost of debt exceeds the nominal costs shown in Schedule 4C because of convertible features, sale with warrants or for any other reason, a full statement of the basis for this claim should be provided.

6.3 Embedded Cost of Preferred Stock

6.3.1 Complete Schedules 4D and E to show the cost of preferred stock. Use the preferred stock cost rates most appropriate to the capital structure adopted for cost of capital computations, i.e., if a test year end capital structure is used, use a test year end embedded cost analysis.

6.3.2 Describe preferred stock reacquisitions by the utility over the past 5 years.

6.3.3 In the event that the utility claims a true or economic cost higher than the nominal rate shown in Schedule 4E due to convertibility or for any other reason, provide a full statement of the basis for this claim.

6.4 Common Equity Cost Rates

6.4.1 Complete Schedule 4F providing data on all common equity public stock offerings (including registered secondary offerings) for the current year and for the previous 5 calendar years.

6.4.2 Provide a summary statement of all stock dividends, splits or par value changes in last 5 years.

6.4.3 Provide comparative financial data on Schedules 4G and 4H for the test period without rate increase for the test year, for the most recent calendar year and for the next most recent calendar year.

6.4.4 Provide complete analysis and support for the utility's claimed common equity return rate.

6.4.5 State what coverage requirements or capital structure ratios are required in the most restrictive of applicable indentures and how these measures are computed.

6.5 Parent-Subsidiary Relationship

6.5.1 Where the utility is a subsidiary of a parent corporation, the data in Schedules 4A, B, C and D shall also be provided for the parent company or on a consolidated basis.

6.5.2 If the utility proposes to utilize the parent company's capital structure or capital costs, or to provide such data on a consolidated basis, the reasons for this claim must be fully stated and supported.

27 DE Reg. 117 (08/01/23)

7.0 Gross Revenue Conversion Factor

Complete Schedule 5 to show how many dollars of gross revenue increase are required to realize $1.00 of net return increase.

27 DE Reg. 117 (08/01/23)

8.0 Rates and Tariffs

8.1 Provide a copy of proposed Tariff Schedules

8.2 By appropriate marginal designation, in the proposed Tariff Schedules, classify proposed changes in accordance with code shown below:

C Changed Regulation

D Discontinued Rate or Regulation

I Increased Rate

N New Rate or Regulation

R Reduced Rate

S Reissued Matter

T Change in text without change in rate or regulation

8.3 Provide the rationale for proposed tariff changes (other than across the board percentage increases).

8.4 Provide a cost of service study, showing rates of return by customer class or type of service rendered for the test year and for the test period, if available, at present and proposed rates. The months used in the cost of service study shall correspond to the months used in the utility's test period.

8.5 For test period only, provide schedule showing present revenues, pro forma adjustments, proposed increases and percent of increase for each rate schedule.

8.6 If applicable, provide detailed calculation substantiating the adjustment for additional revenues from annualizing changes in customers and growth in use per customer during test year.

27 DE Reg. 117 (08/01/23)

Part B - Rate Increase Applications - Small Utilities

1.0 Instructions

1.1 Prefiling Announcement. In order for the Commission to schedule its future workload in an efficient manner, every public utility shall file with the Commission a Notice of Intent to file a general rate increase application not less than 2 months prior to filing its application or notice of increase. If a regulated company cancels, changes or delays a proposed general rate increase application previously reported to the Commission, an amended report must be filed promptly reflecting such change of plans.

1.2 Test Year

1.2.1 The test year is the actual historical period of time for which operating and financial data will be required. The test year must include the actual "Per Books" results of operation for a 12 month period ending no more than 4 months prior to the filing of the application for increased rates. In addition, the 12-month period must end no later than 7 months prior to the filing of the application, but no sooner than 1 month after the final closing of the test year (post reversal of accrual entries), so that actual expenditures are reflected in the books of account. For example, if the actual results of operations for the 12 months ending March 30, 200x are used for purposes of the test year, the application must be filed no sooner than April 30, 200x, but no later than October 31, 200x.

1.2.2 It is suggested but not required that the test year selected correspond with the company's financial year.

1.2.3 The test year may be adjusted to reflect changes that are known and measurable at the time of the filing.

1.3 Due Date. The information required in subsequent sections of Part B is to be filed with the Commission at the time of the utility's application for an increase in rates.

1.4 Testimony and Exhibits. If the utility plans to submit prepared testimony and exhibits, they must be filed coincident with the filing of the application for rate relief.

1.5 Penalty for Non-Compliance

1.5.1 The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within 15 days after the date of filing, specifically identify any non-compliance with such format and instructions, and immediately request the Commission Secretary to promptly notify the utility of the alleged defects in compliance. Following such notification by the Commission's Secretary, the utility shall have 15 days within which to correct the alleged defects; and only upon the utility's filing of the corrected application shall such application be deemed filed with the Commission for the purposes contemplated under the Public Utilities Act. In the event the alleged defects are not corrected within the time provided hereunder, Staff may move the Commission to reject the utility's application for non-compliance with these Minimum Filing Requirements.

1.5.2 Nothing in this subsection 1.5 shall prevent a utility from filing an application in draft form for Staff's informal review and approval without prejudice, such informal review and approval not to be unreasonably withheld by Staff, nor shall subsection 1.5 affect or delay the filing date, for the purposes contemplated under the Public Utilities Act, of rate applications that comply with the format and instructions furnished herein, or whose non-compliance with such format and instructions is deemed minor by the Commission or its Staff.

1.6 General Guidelines

1.6.1 Schedules shown are for illustrative purposes and may be modified to fit the individual company as long as the data intent is complied with. The burden of proof remains by Statute on the utility; therefore, if applicant utility believes that additional information is necessary to support its case or is proposing a position which requires a departure from the basic schedules, the utility should supplement the standard filing requirements as required to support its position.

1.6.2 The Commission may require utilities to supply information to supplement these minimum requirements during the course of the Staff investigation of a specific case. The utility will be required to provide a duplicate copy of any such information requested by Staff to all intervenors to the proceeding as directed by the Commission. It is, however, the intent of the Commission in establishing minimum filing requirements to minimize the subsequent interrogatories and data requests.

1.6.3 All schedules submitted to the Commission shall be typed and shall contain the name of the person responsible for the preparation of the data.

1.6.4 Supportive work papers must be made available for Staff inspection upon request subsequent to the filing.

1.6.5 If required data has been previously filed, it may be incorporated by reference.

1.6.6 All data, statements and exhibits filed pursuant to these minimum filing requirements shall be identified by paragraph designation for which they are submitted.

2.0 General Information

2.1 Description of Company (If presently not on file with Commission or if it has been submitted in a prior proceeding, it can be incorporated by reference and only include updates).

2.1.1 Provide a corporate history including dates of incorporation, subsequent acquisitions and/or mergers.

2.1.2 Describe completely the ownership of the utility and all relationships between applicant utility and its parent, subsidiaries, and affiliates. Furnish a chart or charts which depict(s) the intercompany relationships.

2.1.3 Provide a system map indicating all cities and counties and other government subdivisions to which service is provided.

2.1.4 Provide a statement of reasons for the proposed increase including an explanation of the major factors which gave rise to the decision to seek a rate adjustment. Also include an estimate of the dollars associated with each such major factor.

3.0 Financial Results of Operations

3.1 An overall financial summary must be provided on Schedule 1. The information needed to complete Schedule 1 is obtained from subsequent Schedules.

3.2 Supporting Documents - Submit internally prepared financial statements or those prepared by an outside accountant or CPA for the most recent 12-month period available to correspond with the historical test year selected by the utility.

4.0 Rate Base

4.1 Rate Base Defined

26 Del.C. §102(3) defines Rate Base as follows:

"(3) "Rate base" means:

c. The actual amount received and unrefunded as customer advances or contributions in aid of construction of utility plant, and less;

d. Any accumulated deferred and unamortized income taxes and investment credits related to plant included in paragraph a. above, plus;

e. Accumulated depreciation of customer advances and contributions in aid of construction related to plant included in paragraph a above and plus;

f. Materials and supplies necessary to the conduct of the business and investor supplied cash working capital, and plus;

g . Any other element of property which, in the judgment of the Commission, is necessary to the effective operation of utility."

4.2 Jurisdictional Rate Base Summary

4.2.1 A Rate Base Summary must be provided on Schedule 2. The rate base elements set forth on Schedule 2 correspond with the definition of Rate Base set forth on IV above. Utilities are not required to use all of these elements or may wish to include others not shown under the category of "Other Elements of Property" (line 10).

4.2.2 Indicate on Schedule 2 in the column titled "26 Del.C. §102 (3) Letter Ref." the appropriate letter reference designating the Section of the Code upon which the applicant relies for the inclusion of each item in Rate Base as set forth in Item 4.2.1 above.

4.2.3 The column on Schedule 2 "Actual at Test Year End" means "per books" with the exception of Investor Supplied Cash Working Capital, line 8. For "Actual Test Year End" Investor Supplied Cash Working Capital, use the same procedures used for developing "claimed rate base" but applied to test year actual results of operations.

4.2.4 Proposed adjustments to or computations of rate base elements (i.e., Investor Supplied Cash Working Capital) must be fully explained on Schedule 2A.

4.2.5 Detailed description of Utility Plant in Service and related depreciation reserves must be provided on Schedule 2B. The totals must agree with the column titled "Actual Test Year End" on Schedule 2.

4.3 Please provide a narrative statement covering the following points for monopoly services not subject to competition:

4.3.1 Please explain any physical deficiencies in the present property and an estimate of the cost to correct such deficiencies. If plans are underway, disclose the nature of such plans.

4.3.2 Provide an estimate of customer or usage growth for 2 years following the end of the test year and how the utility plans to meet such growth and provide the estimated cost of providing additional facilities to meet expected growth.

4.3.3 Gas and water utilities must provide a narrative description of their respective sources of supply.

5.0 Net Operating Income Summary

5.1 A summary of net operating income must be provided on Schedule 3.

5.1.1 The "Actual for Test Year" column means actual "per books"revenue and expense for the historical test year selected without exception.

5.1.2 Operating revenues and expenses should be set forth by type of service or customer class and operating expenses by type. Supplemental schedules may be used for this purpose so long as they conform to the format of Schedule 3.

5.1.3 Proposed adjustments to test year operating revenues or experience must be fully explained on schedule 3A. Supporting documentation should be provided when available such as formal wage agreements, copies of invoices reflecting higher prices for materials purchased, tax notices, etc.

5.1.4 A calculation of Federal and State Income Taxes must be submitted on Schedule 3B.

5.1.5 Provide a narrative explanation of any Schedule "M" items (items included in determining Federal and State Income Taxes not included in Income Available for Return e.g. capitalized portion of Social Security taxes and relief and pensions (line 8), depreciation on IDC, S/S taxes and R/P capitalized (line 6), also any surplus items affecting taxable income not included in line 1) and if deferred taxes are provided on the utility's books, explain the nature of the deferred taxes and the amounts related to the test year periods as set forth on Schedule 3B.

5.1.6 Provide a calculation of present annual revenues based on test year volume of sales at present tariff rates and also showing the revenues expected to be derived from proposed rates on Schedule 3C. Utilities which have "block" rates are to base this calculation on a bill analysis for the test year selected.

5.2 Provide a narrative statement covering cost increases expected to be incurred over a 2-year period following the end of the test year, but not included in the operating expense claim for monopoly services not subject to competition.

6.0 Cost of Capital Summary

6.1 A Cost of Capital Summary must be provided on Schedule 4 based on actual test year data and on the basis of the utility's fair rate of return claim.

6.1.1 If the fair rate of return claim is based on a capital structure different from test year actual, explain the reasons for such differences. If the difference is related to planned new financings or refinancing, please provide the detail with respect to such planned financing including the amount, cost rate, terms, etc.

6.1.2 Provide an explanation, with supporting calculations, of the methodology used to arrive at the cost rate for common equity. If a rate of return study was performed, provide a copy of such study.

6.1.3 Provide a detailed calculation of the claimed cost of debt and preferred stock on Schedules 4A and 4B, respectively.

Part C - Cost Adjustment Clauses - All Utilities

[Reserved]

Part D - Issuance of Securities - All Utilities

1.0 Background Information

1.1 Purpose. By law the Commission must take formal action on an application by a regulated company to issue securities which are payable in more than 1 year within a 30-day period after filing. In the absence of formal action within that time frame, the application is automatically approved. Part D of the Minimum Filing Requirements is designed to keep the Commission informed at all times with respect to the funding plans of all regulated companies within its jurisdiction and have the required supporting information necessary to act on formal applications in an informed manner on a timely basis.

1.2 26 Del.C. §215. This Section provides that regulated companies subject to the jurisdiction of the Commission must obtain approval of the Commission before issuing new securities which mature more than 1 year from the date of issuance. For convenience, 26 Del.C. §215 is duplicated below:

§215. Merger, Mortgage or Transfer of Property: Issuance of Securities; Assumption of Obligation of Another: Exceptions

(a) No public utility, without having first obtained the approval of the Commission, shall (1) directly or indirectly merge or consolidate with any other person or company, or sell, lease, assign, or mortgage except by supplemental indenture in accordance with the terms of a mortgage outstanding September 1, 1949, or otherwise dispose of or encumber any essential part of its franchises, plant, equipment or other property, necessary or useful in the performance of its duty to the public; or (2) issue any stocks, stock certificates, or notes, bonds or other evidence of indebtedness payable in more than one year from the date thereof; or (3) assume any obligation or liability as guarantor, endorser, surety or otherwise in respect of any security of any other person or corporation, payable or maturing more than one year after the date of such issue or assumption of liability.

(b) Application for any such approval or authorization shall be made to the Commission in writing, verified by oath or affirmation, and be in such form and contain such information as the Commission requires.

(c ) The Commission shall approve of any such proposed merger, mortgage, transfer, issue or assumption when it finds that the same is to be made in accordance with law, for a proper purpose and is consistent with the public interest. The Commission may make such investigation and hold such hearings in the matter as it deems necessary, and thereafter may grant any application under this section in whole or in part and with such modification and upon such terms and conditions as it deems necessary or appropriate. The Commission shall grant, modify, refuse or prescribe appropriate terms and conditions with respect to every such application or proposed merger, mortgage, transfer, issue or assumption, within 30 days after the filing of the application therefor, and in the absence of any such action within such period of time, any such proposed merger, mortgage, transfer, issue or assumption shall be deemed to be approved.

(d) Nothing contained in this section shall be construed in any wise to prevent the sale or lease or other disposition by any public utility of any of its property in the ordinary course of its business."

1.3 Prior Orders of the Commission. Order No. 1318 in Docket No. 781 adopted by the Commission on April 24, 1974, set forth certain minimum requirements for regulated companies in connection with the issuance of securities. Order No. 1318 is superseded by the Commission's adoption of the Minimum Filing Requirements, Part D, set forth herein.

2.0 Notice

2.1 Notice of Financing Plans. On or before December 31 and June 30 of each year, all regulated companies subject to the jurisdiction of the Commission shall file a statement describing generally the securities offerings which are expected to be presented to the Commission during the ensuing 6-month period. Regulated companies which desire to file only 1 statement each year may do so if the statement is filed not later than December 31 of each year covering the ensuing 12-month period. Regulated companies with no plans to issue securities must file, at least annually, a statement to that effect. The annual or semi-annual notice shall contain, at a minimum, the following information:

2.1.1 A description of the securities expected to be issued, i.e., Common Stock, First Mortgage Debt, Long-Term Notes, Preferred Stock, etc.

2.1.2 The aggregate amount of such proposed security offering by type of security as in subsection 2.1.1 above.

2.1.3 The expected capitalization and capitalization ratios at the time of the security sale both before and after the issuance of the proposed new securities. This information is to be provided on Schedule No. 1.

2.1.4 A description of the purpose for the issuance of the proposed securities.