Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 7 - Regulatory Commission of Alaska
Chapter 47 - Regulatory Cost Charges for Public Utilities and Pipeline Carriers
Article 2 - Regulatory Cost Charges for Regulated Public Utilities and Pipeline Carriers
3 AAC 47.040 - Formulae for determination of regulatory cost charge rates
Current through February 27, 2024
(a) The formula for determining individual regulatory cost charge rates for each regulated public utility or pipeline carrier, as a percentage of adjusted gross regulated operating revenue is
RCC = A1 + A2
__________
GR
where,
RCC equals the regulatory cost charge rate applicable to a regulated sector's adjusted gross operating revenue;
A1 equals the portion of the commission's total requirement from regulatory cost charges that is allocated to the regulated sector;
A2 equals the portion of the Department of Law's public advocacy function costs certified under AS 42.05.254(h), that is allocated to the regulated sector;
and
GR equals the regulated sector's annual adjusted gross regulated operating revenue in the preceding calendar or annual reporting year.
(b) The formula for determining the portion of the commission's total requirement from regulatory cost charges that is allocated to a regulated sector is
A1 = D + N
where,
A1 equals portion of the commission's total requirement from regulatory cost. charges that is allocated to the regulated sector;
D is the portion of the commission's total requirement from regulatory cost charges that is directly assignable to the regulated sector; and
N is the portion of the commission's total requirement from regulatory cost that is not directly assignable to the regulated sector, but is allocated to the regulated sector; the allocation of the commission's total requirement from regulatory cost charges that is not directly assignable to a regulated sector is based on allocating factors developed to reflect the relative amount of direct hours spent by the commission regulating each sector during the preceding fiscal year.
(c) The formula for determining the commission's total requirement from regulatory cost charges is
R = B - E + X
where,
R equals the commission's total requirement from regulatory cost charges;
B equals the commission's authorized budget for a state fiscal year;
E equals the amount expected to be collected from exempt utilities, from other sources in that fiscal year, and any carryover balance of the regulatory cost charge program receipts account appropriated for that fiscal year; and
X equals an allowance for regulatory cost charges due under this chapter for that fiscal year that the commission or the Department of Revenue is unable to collect.
(d) Notwithstanding (c) of this section, the commission's total requirement from regulatory cost charges may not exceed the maximum percentage of total adjusted gross revenue prescribed in AS 42.05.254(a).
(e) For the purpose of developing the allocating factors used in (b) of this section, the commission staff engaged in substantive matters shall maintain records of direct hours worked on each regulated sector on a per pay period basis.
(f) For electric utilities,
RCC e = RCC x GR __________ kWhT
where,
RCCe equals the regulatory cost charge rate applicable to kilowatt-hours;
RCC equals the regulatory cost charge rate applicable to electric adjusted gross regulated operating revenue determined under (a) of this section;
GRe equals the total annual adjusted gross regulated operating revenue of electric utilities in the preceding calendar year;
and
kWhT equals the total annual kilowatt-hour sales of regulated electric utilities in the preceding calendar year, modified by subtracting wholesale kilowatt-hour sales in that year;
Effective 12/1/95 (Register 136) the Alaska Public Utilities Commission readopted and amended the preceding section under AS 42.05 and AS 42.06 as changed by ch. 1, SLA 1995.
Authority:AS 42.05.141
AS 42.05.151
AS 42.05.254
AS 42.06.140
AS 42.06.286
