Kansas Administrative Regulations
Agency 82 - KANSAS CORPORATION COMMISSION
Article 1 - RULES OF PRACTICE AND PROCEDURE
Section 82-1-231 - Filing requirements for rate proceedings
Universal Citation: KS Admin Regs 82-1-231
Current through Register Vol. 43, No. 39, September 26, 2024
(a) Each electric, gas, telecommunications, or water utility whose rates are under review by the commission at the request of the utility shall comply with this regulation and shall be prepared to establish, by appropriate schedules and competent testimony, all relevant facts and data pertaining to its business and operations that will assist the commission in arriving at a determination of rates that are fair, just, and reasonable both to the utility and the public. However, a telecommunications utility subject to price cap regulation pursuant to K.S.A. 66-2005(b), and amendments thereto, shall not be required to file the information described in this regulation with applications requesting a change in rates pursuant to K.S.A. 66-2005(g), (i), (j), (n), (o), (p), (r), and (s), and amendments thereto. Electric, gas, telecommunications, or water utilities whose rates are under review as a result of an investigation, complaint, or any other procedure may be required by the commission, on its own motion or by party request, to submit the same information described in subsection (c) of this regulation.
(b) Procedures for different classes of utilities.
(1) For filing purposes, each
utility shall be classified according to K.A.R. 82-1-204a.
(2) Each class A electric, gas, water, and
telecommunications utility that files a major rate application, on its own
initiative or as directed by the commission, shall prepare and submit its
application and schedules in conformity with subsection (c) of this regulation.
Any rural electric cooperative distribution system providing service to fewer
than 15,000 customers may elect to follow the procedures outlined in K.A.R.
82-1-231a. Electric, gas, water, and telecommunications utilities, other than
class A, may elect to follow the procedures outlined in K.A.R. 82-1-231b.
(3) Any utility that proposes a
change in rates within 12 months after a commission order following a general
rate proceeding and investigation may submit schedules eliminating data that
duplicates information provided in the original schedules if both of the
following conditions are met:
(A) The utility
is willing to adopt all the regulatory procedures, principles, and rate of
return established by the commission in that order.
(B) The utility receives prior approval from
the commission.
(4) An
application by a class A utility shall be construed to be a major rate
application if any of the following conditions is met:
(A) The application relates to a general
increase in revenues for the purpose of obtaining an alleged fair rate of
return.
(B) Material changes in
operations, facilities, or cost of service occur subsequent to the test year
employed in any major rate decision, except for proposals that are for the sole
purpose of compensating for the increased production or purchase cost of a
principal product.
(C) The
application will, in the opinion of the commission, materially affect the
public interest if it is granted.
(c) Class A utility rate proceedings: application and evidence.
(1) Each major rate
application by a class A utility shall be accompanied by schedules that will
indicate to the commission the nature and extent of the relief requested.
(2) Each application shall be
based upon data submitted for a test year. The test year selected by the
applicant may be disapproved by the commission for cause.
(3) The original, nine photocopies, and one
electronic copy of the application and supporting schedules shall be filed with
the commission. The supporting schedules shall be organized by topical sections
with page numbers for each schedule. Negative numbers shall be shown in
parentheses. Amounts included in the application shall be cross-referenced
between the appropriate summary schedule and supporting schedules as well as
between the various sections. Referencing shall include allocation ratios. All
items shall be self-explanatory, or additional information, cross-references or
explanatory footnotes shall be presented on the schedule.
(A) Original and photocopies. The original
and each photocopy of the application and schedule shall be bound together
under one loose-leaf binder. If the bulk of the material would make such
handling impractical, two or more volumes in loose-leaf form shall be filed.
The size of print used in the application and schedules shall not be smaller
than elite type reduced 25 percent. The application shall be assembled with
index tabs for each section.
(B)
Electronic copy. The electronic application and schedules shall be submitted in
a format and type of disk that the applicant and staff have agreed upon. All
formulas shall be imbedded in the schedule, and all schedules shall be linked
where appropriate. Reports required by paragraphs (c)(4)(A), (B), (M) and (P)
shall be exempted from the electronic filing requirement. A waiver may be
granted from all or any part of the electronic filing requirement.
(4) The form, order, and titles of
each section shall conform to the following requirements:
(A) Section 1: Application, letter of
transmittal, and authorization. This section shall contain a copy of the
application, a copy of the letter of transmittal, and the appropriate document
or documents authorizing the filing of the application, if any.
(B) Section 2: General information and
publicity. This section shall describe the means generally employed by the
utility to acquaint the general public that would be affected by the proposed
rate change with the nature and extent of the proposal. This section may
include statements concerning newspaper articles and advertisements, meetings
with public officials, civic organizations, and citizen groups, and shall
include general information concerning the application that will be of interest
to the public and suitable for publication. This information shall include the
following, if applicable:
(i) The aggregate
annual revenue increase that the application proposes;
(ii) the names of communities affected;
(iii) the number and
classification of customers to be affected;
(iv) the average, per customer increase
sought in dollars and cents;
(v) a
summary of the reasons for filing the application;
(vi) any other pertinent information that the
applicant may desire to submit or that the commission may require; and
(vii) copies of any press releases
issued by the applicant before or at the time of filing the application for a
rate review that relate to that review.
(C) Section 3: Summary of rate base,
operating income, and rate of return. This section shall contain schedules that
show the components of the test year rate base, operating revenues, expenses,
and income as well as the rate of return under the present and proposed tariff
or tariffs. The schedules shall be presented as follows:
(i) The first schedule shall summarize, for
each utility service for which the rate change is sought, the total Kansas and
commission jurisdictional components of the rate base, operating revenues,
expenses, net income, and rate of return.
(ii) Supporting schedules shall show the
unadjusted commission jurisdictional figures and shall further set out each
adjustment to arrive at the total adjustments. When added to the unadjusted
total, the adjusted commission jurisdictional figures shall correspond with the
commission jurisdictional figures presented on the first schedule of this
section.
(iii) Additional
schedules not applicable to other sections of the application may be set out in
this section.
(D)
Section 4: Plant investments. This section shall contain the items of plant
investment, presented in the following manner:
(i) The first schedule shall detail, by
functional classification, unadjusted amounts, adjustments to these amounts,
and jurisdictional allocations.
(ii) Supplemental schedules, by primary
account, shall set forth year-end plant investment for the three calendar years
preceding the test year, for the test year, and for the 12-month period
preceding the test year. Additional schedules setting forth pertinent
information related to the plant may be submitted under this section. "Primary
account," as utilized in this regulation, shall mean the account classification
provided in the uniform system of accounts prescribed by the commission for the
utility.
(E) Section 5:
Accumulated provision for depreciation, amortization, and depletion. This
section shall contain schedules that shall show by functional classification,
using dates corresponding with the dates of plant investment data submitted
under section 4, the balances of the reserve accounts in which the credits
representing provisions for depreciation, amortization, depletion, any
adjustments thereto, and jurisdictional allocations are accumulated. Upon
commission request, or if considered relevant by the utility, schedules may be
submitted showing analysis of the activities of the reserve accounts relating
to the plant in service, segregated by primary accounts, or other segregation
as is required by the uniform system of accounts prescribed by the commission
for that utility.
(F) Section 6:
Working capital. This section shall set forth in detail each component of the
working capital items the applicant proposes to submit as elements in the
composition of the rate base. This section shall be presented as follows:
(i) The first schedule shall contain the
components included in working capital, adjustments to this, and jurisdictional
allocations.
(ii) The method of
calculation for each component of working capital and a complete explanation of
any pro forma adjustments shall be included in supporting schedules.
(G) Section 7: Capital and cost of
money. This section shall contain the following:
(i) A schedule indicating the amounts of the
major components of the capital structures of the utility, including long-term
debt, preferred stock, and common equity, outstanding at the beginning and at
the end of the test year. This schedule shall contain the ratios of each
component to the total capital including the percentage cost and the requested
overall rate of return. If only a portion of the capital serves the utility
operations involved in the proceeding, as would be the case in a multiutility
or multistate operation, the schedule shall show an appropriate allocation of
the capital items;
(ii) a schedule
disclosing the cost of each issue of debt and preferred stock outstanding, with
due allowance for premiums, discounts, and issuance expense. Data relating to
the other components of capital as may be appropriate shall also be included;
(iii) a schedule displaying
historical interest coverage for at least the three calendar years preceding
the test year, the test year, and the 12-month period preceding the test year.
The method used in the calculation shall be indicated and shall be consistent
with the applicant's bond and indenture requirements; and
(iv) the consolidated capital structure, if
the applicant is a part of a consolidated group or a division of another
company.
(H) Section 8:
Financial and operating data. This section shall contain the following, for
each of the three calendar years immediately preceding the test year, the test
year, and the 12-month period preceding the test year:
(i) A balance sheet by primary account;
(ii) comparative income and
retained earnings statements. The primary account numbers shall be shown, and
dividends paid, by class of stock, shall be indicated;
(iii) operating revenue and expenses by
primary accounts;
(iv) operating
statistics appropriate to the type of utility, including kwh or mcf sales by
rate schedules and customer consumption, power cost per kwh, minutes of use
identified by access or toll and toll, and recurring and nonrecurring, and
maintenance cost per subscriber. The statistics shall be presented in at least
the same detail as is required in the annual reports to the commission; and
(v) annual payrolls by primary
account.
(I) Section 9:
Test year and pro forma income statements. The first schedule shall present an
operating income statement depicting the unadjusted test year operations, pro
forma test year operations, and allocations to jurisdictions. Supporting
schedules shall set forth a full and complete explanation of the purpose and
rationale for the pro forma adjustments. These pro forma adjustments may
include the following:
(i) Adjustments to
reflect the elimination or normalization of nonrecurring and unusual items; and
(ii) adjustments for known or
determinable changes in revenue and expenses.
(J) Section 10: Depreciation and
amortization. This section shall include the schedules indicating depreciation
rates by primary account, depreciation expense for the test year, and amounts
charged to operations, clearing accounts, and construction. If items of
amortization appear in the income statements, schedules showing the basis for
those items shall also be included in this section or made available. If new
depreciation rates are proposed, a copy of the depreciation study shall be
provided or made available.
(K)
Section 11: Taxes. This section shall contain the following information:
(i) The first schedule shall detail the
various taxes chargeable to operations, allocated jurisdictionally. Appropriate
supporting schedules for taxes other than income taxes shall be provided if pro
forma adjustments are presented.
(ii) A schedule disclosing the calculation of
taxable income shall be included.
(iii) A description of adjustments to arrive
at taxable income, including method of computation, shall be provided.
(iv) A schedule shall be provided
depicting the calculation of income taxes, the jurisdictional allocation of
those taxes, and a division of those taxes to reflect current and deferred
taxes.
(v) A schedule shall also
be included for deferred investment tax credits showing the annual charges,
credits, and the balance to that account for a period of not less than 10
years. Furthermore, those schedules shall show the accumulated investment tax
credits by the pertinent effective rate or rates for the test year and the
12-month period preceding the test year.
(vi) A schedule shall be included for
deferred income taxes showing the annual charges, credits, and balance to the
account for a period of not less than 10 years and for the test year and the
year preceding the test year. For both the investment tax credits and deferred
income tax schedules, the test year and the 12-month period preceding the test
year balances shall be allocated to the jurisdictions.
(L) Section 12: Allocation ratios. This
section shall contain a complete detail for all ratios used in the allocations
between jurisdictions, areas of operations, departments, classes of customers,
and other allocable items. In addition, this section shall include a narrative
description of the rationale for each allocation ratio, the components included
in the calculation of the ratio and their source, the allocation percentages
applicable to jurisdictions or departments, and what is being allocated by the
ratio.
(M) Section 13: Annual
report to stockholders and the U.S. securities and exchange commission. This
section shall contain the following:
(i) The
most recent annual report of the utility to its stockholders and, if the
utility is a subsidiary of a parent corporation, the most recent annual report
of the parent corporation to its stockholders; and
(ii) if applicable, a copy of the most recent
form 10-K filed with the U.S. securities and exchange commission.
(N) and O) Sections 14 and 15:
Additional evidence. These sections shall include all other schedules,
exhibits, and data deemed pertinent to the application that may not be properly
included under the preceding sections. This additional evidence may be
submitted at the option of the applicant and shall be submitted upon the
direction of the commission.
(P)
Section 16: Financial statements. This section shall include a copy of the
financial statements for the most recent fiscal year. These financial
statements shall have been audited by an independent certified public
accountant and an opinion rendered thereupon.
(Q) Section 17: This section shall be
applicable only to applications and schedules filed by or pertaining to the
operations of gas or electric utilities. This section shall contain a summary
schedule that provides, by general customer classification, the test year
revenues utilizing the existing and proposed tariffs. The test year revenues
under existing tariffs shall be adjusted if pro forma normalization or
annualization adjustments are appropriate. Also, this section shall include a
schedule detailing the following data for the test year, by tariff schedule:
(i) The tariff number;
(ii) a narrative description of that tariff
number;
(iii) the average number
of customers served during the test year;
(iv) the units sold;
(v) the base revenue;
(vi) the revenue from riders, fuel, or
purchased power clauses;
(vii) the
total revenue, utilizing the existing tariff. The total revenue shall be shown
as adjusted, if appropriate;
(viii) revenue per unit sold;
(ix) the proposed tariff revenue;
(x) the proposed revenue per unit;
(xi) the dollar increase; and
(xii) the percentage increase.
(R) Section 18: This section shall
contain the proposed rate change schedules. All new language or figures shall
be designated by underlining or in another appropriate manner. All deleted
language or figures shall be designated in a different manner, such as italics.
Upon request, and within the time limits determined by the commission, filing
of the proposed rate schedule, or other materials required to be filed under
this regulation, separate from the filing of the application and schedules may
be permitted by the commission.
(d) Revisions of applications and schedules. If the applicant desires to make revisions to its application and schedules, other than minor corrections and insertions that require only interlineation and do not unduly prolong the hearing with respect to the application or schedules, the applicant shall file with the commission those revised schedules that are necessary to reflect the desired revisions, as follows:
(1) Each page of any such revised section or
schedule shall bear the same section letter designation, schedule number, and
page number as the original page with the word "Revised" and the date of the
revision immediately below the original section, schedule, or page designation.
(2) The same number of copies of
any revised sections, schedules, or pages shall be filed as the number of
copies originally required to be filed.
(3) A copy of each revised section, schedule,
or page shall also be served upon each party whose intervention has previously
been permitted by the commission pursuant to
K.S.A.
77-521, and amendments thereto, and K.A.R.
82-1-225.
(4) All revised
sections, schedules, and pages shall be filed in accordance with the provisions
of K.A.R. 82-1-221, unless otherwise ordered by the commission for good cause
shown.
(5) Substantial revisions
of the schedules, including changing to a different test year, may constitute
grounds for a continuance of a scheduled hearing to a later date to be granted
by the commission.
(e) Prefiled testimony shall be required in all utility rate proceedings filed according to subsection (c) of this regulation. The prefiled testimony shall be filed simultaneously with the filing of the application.
(f) Any data request issued by the technical staff shall be answered by the applicant within the time period stated on the data request. If the data request cannot be answered within the time period stated on the data request, applicant shall, before the due date, provide technical staff with a written explanation of the failure to comply.
(g) In any docket that constitutes a major rate application or that the commission determines is of sufficient public concern, one or more public information hearings may be ordered by the commission to be held in the service territory affected by the application. The order shall require publication notice of the filing of the application. The publication notice shall give a concise description of the filing and advise the public of the date and location of each public information hearing. The public information hearing shall provide an opportunity for the applicant to explain its application and shall provide an opportunity for the public to address the commission concerning the application. A transcript shall be made of the public information hearing, but the transcript shall not become a part of the record in the proceeding.
(h) This regulation shall not apply to a change in rates for services by telecommunications utilities that are not subject to price regulation pursuant to K.S.A. 66-2005(v), and amendments thereto.
(i) For good cause shown, any of the requirements of this regulation may be waived by the commission.
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