Indiana Administrative Code
Title 170 - INDIANA UTILITY REGULATORY COMMISSION
Article 1 - GENERAL PROVISIONS
Rule 5 - Minimum Standard Filing Requirements for an Expedited Rate Case
Section 5-13 - Working papers and data; rate of return and capital structure
Universal Citation: 170 IN Admin Code 5-13
Current through September 18, 2024
Authority: IC 8-1-1-3
Affected: IC 8-1-2-42
Sec. 13.
(a) An electing utility shall submit the following information:
(1) Capitalization and capitalization ratios
at the end of the test year and at the end of the year beginning twelve (12)
months prior to the test year, respectively, including the following
information:
(A) Year-end interest coverage
ratios for the test year and the year ended twelve (12) months prior to the end
of the test year and a pro forma interest coverage under the rates proposed by
the utility.
(B) Year-end preferred
stock dividend coverage ratios for the test year and the year ended twelve (12)
months prior to the end of the test year.
(C) The supporting calculations for the
information described in clauses (A) and (B).
(2) The following financial data relating to
the utility as of the end of the most recent five (5) fiscal years:
(A) Annual price earnings ratio.
(B) Earnings-book value ratio on a per share
basis, using average book value.
(C) Annual dividend yield.
(D) Annual earnings per share in
dollars.
(E) Annual dividends per
share in dollars.
(F) A book value
per share yearly.
(G) Average
annual market price per share calculated using monthly high and low share
market prices.
(H) Pretax interest
coverage ratio.
(I) Posttax
interest coverage ratio.
(J) Market
price-book value ratio average.
(K)
The supporting calculations for the information described in this
subdivision.
(3) The
utility's capital structure and weighted average cost of capital as of the test
year end, including the following information:
(A) Common equity.
(B) Long-term debt, including that maturing
within one (1) year.
(C) Other
debt, with specificity.
(D)
Preferred or preference stock.
(E)
Customer deposits.
(F) Sources of
cost free capital, including the following:
(i) Pre-1971 investment tax credit.
(ii) Deferred taxes for ratemaking.
(iii) FAS 106 nonexternally funded
liabilities.
(G)
Post-1970 investment tax credit and other components as appropriate.
(4) If an electing utility is
asking for special treatment because of the provisions of any of the following
documents of the utility or its parent company, or both, then copies of the
document or documents with the affecting provision or provisions must also be
submitted:
(A) Articles of incorporation or a
similar document.
(B)
Indentures.
(C) Other loan
documents.
(D) Other documents that
describe the following:
(i) Coverage
requirements.
(ii) Limits on
proportions of types of capital outstanding.
(iii) Restrictions on dividend
payouts.
(5)
A schedule of preferred stock outstanding by series, including current
maturities, for the end of the test year and the latest date reasonably
available.
(6) A schedule of
long-term debt outstanding by series, including current maturities, for the end
of the test year and the latest date reasonably available.
(7) A schedule of the following information
for the utility as of the end of the test year and as of the latest date
reasonably available prior to the postfiling date, respectively:
(A) A computation of the embedded cost rate
of long-term debt, including the amount maturing within twelve (12)
months.
(B) Computation of the
embedded cost rates of other debt.
(C) Computation of the embedded cost rates of
preferred or preference stock, including amounts maturing within twelve (12)
months.
(8) Schedules
required by this subsection should contain all relevant information, including,
but not limited to, the following:
(A) The
date of issue.
(B) The maturity
date.
(C) The dollar
amount.
(D) The coupon or dividend
rate.
(E) The net proceeds,
including discounts and premiums.
(F) The annual interest or dividend paid and
balance of principal.
(G) The
calculations in this section.
(9) The following information regarding the
utility's plans regarding debt, common stock, and preferred stock during the
year following the test year end:
(A) Issues
that are to be retired or refinanced.
(B) If a refinancing is planned, the
following:
(i) The manner in which the
refinancing will proceed, that is, sinking fund or refinancing.
(ii) The source of the capital to be used to
implement the refinancing.
(iii)
The estimated cost rate of new capital, the estimated overall cost of each
refinancing operation, and any costbenefit analyses performed relating to each
refinancing.
(10) All relevant reports in the utility's
possession by rating agencies on the utility and its parent company for the
test year, and thereafter up to the date of the final hearing. The reports
should be based on the debt:
(A) used in
calculations in the electing utility's filing; or
(B) of a parent company or proxy company
whose debt is rated.
(11) Average monthly balance of short-term
debt for the test year and the most recently available twelve (12) month period
and the utility's current cost for short-term debt.
(b) With respect to the electing utility's proposed cost of equity and proposed fair rate of return, an electing utility shall provide the following:
(1) If an
electing utility used a risk premium model to establish its cost of equity, all
documents the electing utility used to estimate the risk premium.
(2) If an electing utility used any other
cost of equity models, all documents used by the utility to derive its
estimate.
(3) If an electing
utility used a comparable earnings model and the proxy group contains more than
twenty (20) companies, an electronic copy of the analysis used by the utility
in whatever format or program was used to derive the electing utility's
estimated cost of equity or fair rate of return.
(c) To the extent the electing utility is prohibited from producing copies of the documentation listed in subsection (b)(1) through (b)(3) due to the documentation being licensed or proprietary material by agreement or by copyright law, the electing utility shall provide the following:
(1) A list of which documents
may not be copied and the reasons therefor.
(2) Access to the documents listed in
subdivision (1) to all parties to the proceeding under this rule at a mutually
convenient time and place.
Disclaimer: These regulations may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
