In the Matter of the Regulation |
Establishing the Minimum Filing |
Requirements for All Regulated | PSC Regulation
Companies Subject to the Juris- | Docket No. 4
Diction of the Public Service |
Commission (Reopened May 26, 1999) |
PSC Regulation Docket No. 4, Establishing the Minimum Filing Requirements for all Regulated Companies Subject to the Jurisdiction of the Public Service Commission
ORDER NO. 5410
AND NOW, this 11th day of April, 2000, the Commission having considered the record as described in Order No. 5349 herein, along with the comments filed by Chesapeake Utilities Corporation (dated March 28, 2000), and the comments filed by Delmarva Power & Light Co. and United Water Delaware (both dated March 31, 2000);
IT IS ORDERED THAT:
1. As and for its summary of the evidence pursuant to 29 Del. C. § 10118(b)(1), the Commission incorporates by reference the summary of evidence set forth in Order No. 5349 herein.
2. Pursuant to 29 Del. C. § 10118(b), the Commission adopts the following findings of fact and conclusions of law.
3. Part "A," Section I(C). Staff proposed changes to this section of the Minimum Filing Requirements ("MFRs") for the principal purpose of curtailing the alleged practice, by some utilities, of modifying test period data late in the rate review process. With one non-substantive exception, the Hearing Examiner recommended the adoption of Staff's proposal in its entirety.
4. By its Order No. 5349, the Commission adopted the Hearing Examiner's recommendation; but it directed Staff to propose additional language that would vest in the Hearing Examiner the discretion to permit utilities to offer modifications in evidence simultaneously with the filing of rebuttal evidence, where extraordinary circumstances and the interests of justice so warrant.
5. In response to the Commission's directive, Staff proposed the following language:
Modifications in test period data occasioned by reasonably known and measurable changes in current or future rate base items, expenses (i.e., labor costs, tax expenses, insurance, etc.) or revenues may be offered in evidence by the utility at any time prior to its filing of rebuttal evidence; provided, however, that if any party makes timely objection to the proffered modifications, such objections shall be promptly presented to the Commission, the Presiding Officer or Hearing Examiner for a decision on due consideration of the parties' respective positions. For purposes of this Section I(C), an objection shall be timely if made within five (5) business days of the utility's proffer of modifications.
Notwithstanding anything to the contrary in this Section I(C), the Commission, Presiding Officer or Hearing Examiner may permit the utility to offer in evidence the modifications contemplated hereunder simultaneously with the filing of rebuttal evidence, where extraordinary circumstances and the interests of justice so warrant.
6. The Commission finds that Staff's proposal, as quoted above, is consistent with the directive to which it responds. The Commission further finds that, if adopted, the quoted language will promote fairness and efficiency in rate proceedings; and that it should, therefore, be adopted pursuant to 26 Del. C. § 106. The Commission, therefore, finally adopts the quoted language for inclusion within the MFRs.
7. Parts "A" and "B," Section I(E). This section addresses Staff's review of rate increase applications for compliance with the MFRs, and the consequences of non-compliance. Staff proposed that it be changed to permit Staff to reject defective applications where the defects are "so numerous or serious as to materially impair Staff's timely review of the application . . . ." Delmarva, Chesapeake, and others opposed Staff's proposal on due process and other grounds.
8. The Hearing Examiner rejected Staff's proposal, concluding that because "Staff is akin to a party prosecutor in all rate proceedings[,]" it would be unfair to permit Staff to reject rate applications on its own discretion. Report of the Hearing Examiner at ¶ 36. The Hearing Examiner agreed with Staff, however, that an amendment to this section is needed to allow Staff "sufficient time to fully review and investigate all of the complexities that are so typical of rate cases." Id. at ¶ 38. Accordingly, the Hearing Examiner recommended changes to this section that were (in large part) similar to those proposed by Staff, but which did not confer discretion on Staff to reject defective applications under any circumstances.
9. The Hearing Examiner's recommendation also added a new feature to the debate: It effectively provided that no rate application would be deemed finally filed with the Commission (for the purposes contemplated under the Public Utilities Act) until the completion by Staff of a review-and-notification process. Under the terms proposed by the Hearing Examiner, that process could take as long as fifteen days for non-defective applications, and as long as thirty days for defective applications.
10. Chesapeake and Delmarva took exception to the Hearing Examiner's recommendation, arguing (for example) that a non-defective application should be deemed filed ab initio. Chesapeake and Delmarva similarly alleged unfairness in the prospect that an application with only minor defects might be deemed filed a full thirty days after its actual filing date.
11. By its Order No. 5349, the Commission concluded that the Hearing Examiner's recommendation should be modified in two respects. First, the Commission concluded that non-defective applications should be deemed filed as of the date of their actual, initial filing. Second, the Commission concluded that where an application suffers from only minor defects, the presence of such defects should not affect the date on which it is deemed filed. Staff was, therefore, directed to propose new language that would effect these modifications.
12. In response to this directive, Staff proposed the following language:
The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within fifteen (15) days after the date of filing, specifically identify any noncompliance with such format and instructions, and immediately request the Commission's Secretary to promptly notify the utility of the alleged defects in compliance. Following such notification by the Commission's Secretary, the utility shall have fifteen (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 noncompliance with these Minimum Filing Requirements.
Nothing in this Section I(E) 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 this Section I(E) 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 noncompliance with such format and instructions is deemed minor by the Commission or its Staff.
13. The Commission finds that Staff's proposal, as quoted above, is consistent with the directive to which it responds. The Commission further finds that, if adopted, the quoted language will promote fairness and efficiency in rate proceedings; and that it should, therefore, be adopted pursuant to 26 Del. C. § 106. The Commission, therefore, finally adopts the quoted language for inclusion within the MFRs.
14. Summary of action taken. The Commission finally adopts, for inclusion within the MFRs, the amendments approved by this Order and by Order No. 5349.
15. Staff is directed to prepare a new and conformed version of the MFRs, consistent with the terms of this Order and Order No. 5349, and to submit the same promptly to the Registrar of Regulations consistent with 29 Del. C. §§ 1134 and 1135. The amendments shall be effective ten (10) days after the publication in the Register of Regulations.
16. The Commission retains jurisdiction in this matter, including the authority to make such further Orders as may be just or proper.
BY ORDER OF THE COMMISSION:
Robert J. McMahon, Chairman
Joshua M. Twilley, Vice Chairman
Arnetta McRae, Commissioner
Donald J. Puglisi, Commissioner
ATTEST:
Karen J. Nickerson, Secretary
* Please note that a full-text copy of Regulation Docket No. 4 can be obtained by contacting the Registrar of Regulations or the Public Service Commission.
Excerpts of Amendments to Minimum Filing Requirements Adopted in Psc Order No. 5410
(April 11, 2000)
(Altered Text Underlined)
State of Delaware
Public Service Commission
Minimum Filing Requirements For All Regulated Companies Subject to The Jurisdiction of the Commission
PSC Regulations Docket Nos. 4, 7, & 8:
As Originally Promulgated by PSC Order No. 2144 (Nov. 5, 1980);
As Amended by PSC Order No. 2587 (Sept. 25, 1984);
As Amended by PSC Order No. 2704 (Dec. 12, 1985); and
As Amended by PSC Order No. 5410 (April 11, 2000).
State of Delaware
Public Service Commission
Minimum Filing Requirements
General Information
Background
...
Purpose of Minimum Filing Requirements
...
Compliance With Minimum Filing Requirements
It is intended that the required information be furnished in accordance with the format and instructions furnished herein. If exceptions are requested or proposed, they should be fully explained and justified. Exceptions may be granted if good cause is shown by the utility. The Commission Staff will review all filings for compliance with the format and instructions furnished herein and notify the utility within 15 days after the date of filing of any defects in compliance. The utility after such notification by the Commission Staff will then have 15 days to correct these defects.
General Rate Increase Defined . . .
Part A – Rate Increase Applications – Major Utilities
Part A applies to utilities or divisions thereof with annual gross intra-State revenues of $1 million or more (at time of filing). When an application is made for a general rate increase, utilities with less than $1 million of annual intra-State revenues, but which would exceed $1 million if the proposed rates were to become effective, are subject to Part A of these regulations.
Part B – Rate Increase Applications – Small Utilities
. . .
Part C – Cost Adjustment Clauses – All Utilities
. . .
Part D – Issuance of Securities – All Utilities
. . .
Part E – Quarterly Reporting Requirements – Major Utilities
All major utilities, except Bell Atlantic-Delaware, Inc., subject to the jurisdiction of the Commission (i.e., those with annual gross intra-State revenues of $1 million or more) are required to file quarterly information in accordance with the instructions in Part E. Such utilities should file the required financial data relative to the twelve months ended each calendar quarter not later than 60 days following the reporting quarter. No quarterly reporting is required for any utility whose annual gross intra-State revenues are less than $1 million.
Part F – Annual Reporting Requirements – Small Utilities
. . .
State Of Delaware
Public Service Commission
Minimum Filing Requirements - Part A
Rate Increase Application - Major Utilities
I. Instructions
A. Prefiling Announcement
. . .
B. Test Year and Test Periods
1. Test Year Defined. The test year is the actual historical period of time for which financial and operating data will be required. The test year data must include the actual “Per Books” results of operation for a 12-month period at the end of a reporting quarter. In addition, the twelve month period must end no later than seven months prior to the filing of the application , but no sooner than one 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 twelve months ending March 30, 200x, are used for the purposes of the test year, the application must be filed no sooner than April 30, 200x, but no later than October 31, 200x.
2. Test Period Defined.
. . .
Updating Projected Test Periods.
. . .
C. Testimony and Exhibits.
Prepared direct testimony and supporting exhibits must be filed coincident with the filing of the applications for rate relief. This filing requirement shall not prohibit the utility from subsequently submitting further testimony and exhibits in a timely fashion as necessary or proper to address issues raised during investigation of the application; nor shall it (or B.2., above) prohibit the utility from also proffering an exhibit or exhibits in the form of a fully projected test period (in addition to the test period described in I.B.2. above), provided (1) such period shall consist of twelve consecutive months ending not later than the end of the first year during which the proposed rates are to become effective; (2) it is supported by relevant testimony establishing a verifiable link between the test period defined in section B.2. and the projected test period; and (3) it is in format consistent with such test period.
Modifications in test period data occasioned by reasonably known and measurable changes in current or future rate base items, expenses (i.e., labor costs, tax expenses, insurance, etc.) or revenues may be offered in evidence by the utility at any time prior to its filing of rebuttal evidence; provided, however, that if any party makes timely objection to the proffered modifications, such objections shall be promptly presented to the Commission, the Presiding Officer or Hearing Examiner for a decision on due consideration of the parties' respective positions. For purposes of this Section I (C), an objection shall be timely if made within five (5) business days of the utility's proffer of modifications.
Notwithstanding anything to the contrary in this Section I(C), the Commission, Presiding Officer or Hearing Examiner may permit the utility to offer in evidence the modifications contemplated hereunder simultaneously with the filing of rebuttal evidence, where extraordinary circumstances and the interests of justice so warrant.
D. Due Date
. . .
E. Penalty for Non-Compliance
The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within fifteen (15) days after the date of filing, specifically identify any noncompliance with such format and instructions, and immediately request the Commission's Secretary to promptly notify the utility of the alleged defects in compliance. Following such notification by the Commission's Secretary, the utility shall have fifteen (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.
Nothing in this Section I(E) 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 this Section I(E) 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.
F. General Guidelines
. . .
Schedule No. 2 - B
INTANGIBLE ASSETS CLAIMED IN RATE BASE
Delaware Public Service Commission
Company:______________________
Docket No._____________________
Witness Responsible:____________________________
Line Description Date of Net
No. Location of Asset Acquisition Original
Cost
Allocation Jurisdictional Expected Expected
Percentages Net Original In Service Use of
Cost Date Asset
State Of Delaware
Public Service Commission
Minimum Filing Requirements - Part B
Rate Increase Application - Small Utilities
I. Instructions
A. Prefiling Announcement
. . .
B. Test Year
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 twelve month period ending no more than four months prior to the filing of the application for increased rates. In addition, the twelve-month period must end no later than seven months prior to the filing of the application, but no sooner than one 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 twelve 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.
. . .
. . .
C. Due Date
. . .
D. Testimony and Exhibits
. . .
E. Penalty for Non-Compliance
The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within fifteen (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 fifteen (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.
Nothing in this Section I(E) 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 this Section I(E) 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.
F. General Guidelines
. . .