Indiana Administrative Code
Title 170 - INDIANA UTILITY REGULATORY COMMISSION
Article 4 - ELECTRIC UTILITIES
Rule 10 - Cost Securitization for Retired Electric Utility Assets
Section 10-5 - Petition and case-in-chief
Universal Citation: 170 IN Admin Code 10-5
Current through March 20, 2024
Authority: IC 8-1-1-3; IC 8-1-40.5-19
Affected: IC 8-1-40.5
Sec. 5.
(a) An electric utility seeking to securitize costs for retired electric utility generation assets shall file its petition and its case-in-chief on the same day. The 240 day timeline in IC 8-1-40.5-10(b) does not start until the case-in-chief is filed.
(b) The electric utility's petition shall contain, at a minimum, the following:
(1) The best estimate of the amount and terms
of the proposed securitization.
(2)
The best estimate of the proposed term in years of the securitization
bonds.
(3) The best estimate of the
total jurisdictional rate base at time synchronized with the best estimate of
qualified costs at time of bond issuance.
(4) An executive summary of the
request.
(c) The electric utility's case-in-chief shall contain, at a minimum, the following:
(1) An estimate of the electric utility's
total proposed qualified costs, together with descriptions and schedules of the
proposed qualified costs to be subject to the securitization, including linking
or mapping the proposed qualified costs to the costs currently included in
utility rates, as applicable. Any Excel worksheets shall also be submitted with
the formulas intact.
(2)
Schedule(s) comparing the net present value of the total of the proposed
securitization charges with the net present value of the recovery of the
qualified costs through traditional ratemaking, over a period not to exceed
twenty (20) years. Such schedules shall:
(A)
identify the assumption(s) utilized in the net present value analysis;
and
(B) include evidence supporting
the assumption(s).
Any Excel worksheets shall also be submitted with the formulas intact.
(3) Identification and list of the specific
electric utility generation assets to be retired for which securitization is
being requested, together with a calculation of the net original cost of the
assets adjusted for depreciation to be incurred until the facility is
retired.
(4) Proposed process to
accomplish the requirements of IC 8-1-40.5-12(c), including a demonstration
that the proposed securitization charges are expected to be sufficient to
timely provide all payments on:
(A) debt
service; and
(B) other required
amounts and charges in connection with the securitization bonds.
(5) Evidence describing:
(A) the use of the securitization bonds
proceeds; and
(B) accounting
entries; at receipt of bond proceeds.
(6) Description of the proposed mechanism to
reduce the electric utility's base rates and charges upon assessment of the
securitization charges on customer bills, so as to remove any costs associated
with the qualified costs that are reflected in the electric utility's retail
rates at the time the petition is filed.
(7) Tariffs for:
(A) securitization charges; and
(B) any credits or rate reductions required
to remove qualified costs from existing rates.
Work papers utilized in determining such tariffs shall be submitted to the commission and provided to participating parties.
(8) Description of:
(A) current and anticipated market
conditions; and
(B) expected bond
structure, including a sensitivity analysis showing various bond rates and
maturities, along with the corresponding estimated savings for
ratepayers.
(9) Evidence
of the anticipated costs incurred to:
(A)
issue; and
(B) maintain; the
securitization bonds.
(10) Proposed plan for capital investment in
Indiana, with justification of any plan investment that is not identified as a
clean energy resource.
(11)
Schedules and supporting documentation for estimated numbers relied upon to
support the case-in-chief, including assumptions used in any net present value
calculation.
(12) A description of:
(A) any debt or equity securities to be
refinanced or retired; and
(B)
estimated redemption premiums, if any; including previously issued
securitization bonds.
(13) A copy of any:
(A) contract;
(B) agreement; or
(C) arrangement; that is proposed or has been
made, or examples of such documents, for the sale of the securitization bonds
proposed to be issued.
(14) Demonstration of the proposed process to
be used to correct any over collections or under collections of securitization
charges.
(15) Proposed financing
order.
(16) Proposed issuance
advice letter for securitization bonds, if the utility plans to use such a
letter.
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