Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 61.870-884, 61.931-934,
65.810,
Chapter 74, 278.010, 278.020(3), 278.100, 278.180, 278.300, 278.410, 322.340,
365.015, 369.102, 424.300,
45
C.F.R. 160.103, 47 C.F.R. 36,
20 U.S.C.
1232g
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
278.040(3) authorizes the
commission to promulgate reasonable administrative regulations to implement the
provisions of KRS Chapter 278.
KRS
278.310 requires that all hearings and
investigations before the commission shall be governed by rules promulgated by
the commission. This administrative regulation establishes requirements with
respect to formal and informal proceedings before the commission.
Section 1. Definitions.
(1) "Affiliate" means an entity:
(a) That is wholly owned by a
utility;
(b) In which a utility has
a controlling interest;
(c) That
wholly owns a utility;
(d) That has
a controlling interest in a utility; or
(e) That is under common control with the
utility.
(2) "Case"
means a matter coming formally before the commission.
(3) "Commission" is defined by
KRS
278.010(15).
(4) "Controlling interest in" and "under
common control with" mean a utility or other entity if the utility or entity:
(a) Directly or indirectly has the power to
direct, or to cause the direction of, the management or policies of another
entity; and
(b) Exercises that
power:
1. Alone or through one (1) or more
intermediary companies;
2. In
conjunction with, or pursuant to an agreement;
3. Through ownership of ten (10) percent or
more of the voting securities;
4.
Through common directors, officers, stockholders, voting or holding trusts, or
associated companies;
5. By
contract; or
6. Through direct or
indirect means.
(5) "Electronic mail" means an electronic
message that is sent to an electronic mail address and transmitted between two
(2) or more telecommunication devices, computers, or electronic devices capable
of receiving electronic messages.
(6) "Electronic mail address" means a
destination, commonly expressed as a string of characters, to which electronic
mail can be sent or delivered, and consists of a user name or mailbox and a
reference to an Internet domain.
(7) "Electronic signature" is defined by
KRS
369.102(8).
(8) "Executive director" means the person
appointed to the position established in
KRS 278.100 or
a person that he or she has designated to perform a duty or duties assigned to
that position.
(9) "Paper" means,
regardless of the medium on which it is recorded, an application, petition, or
other initiating document, motion, complaint, answer, response, reply, notice,
request for information, or other document that this administrative regulation
or the commission directs or permits a party to file in a case.
(10) "Party" means a person who:
(a) Initiates action through the filing of a
formal complaint, application, or petition;
(b) Files a tariff or tariff sheet with the
commission pursuant to
KRS
278.180 and
807 KAR 5:011 that the
commission has suspended and established a case to investigate or
review;
(c) Is named as a defendant
in a formal complaint filed pursuant to Section 20 of this administrative
regulation;
(d) Is granted leave to
intervene pursuant to Section 4(11) of this administrative regulation;
or
(e) Is joined to a commission
proceeding.
(11)
"Person" is defined by
KRS
278.010(2).
(12) "Signature" means a manual, facsimile,
conformed, or electronic signatures.
(13) "Tariff" means the schedules of a
utility's rates, charges, regulations, rules, tolls, terms, and conditions of
service over which the commission has jurisdiction.
(14) "Utility" is defined by
KRS
278.010(3).
(15) "Water district" means a special
district formed pursuant to
KRS
65.810 and Chapter 74.
(16) "Web site" means an identifiable site on
the internet, including social media, which is accessible to the
public.
Section 2.
Hearings. The commission shall provide notice of hearing in a case by order
except if a hearing is not concluded on the designated day and the presiding
officer verbally announces the date for continuation of the hearing. A verbal
announcement made by the presiding officer shall be deemed proper notice of the
continued hearing.
Section 3.
Duties of Executive Director.
(1) Upon
request, the executive director shall:
(a)
Advise as to the form of a paper desired to be filed;
(b) Provide general information regarding the
commission's procedures and practices; and
(c) Make available from the commission's
files, upon request, a document or record pertinent to a matter before the
commission unless
KRS
61.878 expressly exempts the document or
record from inspection or release.
(2) The executive director shall reject for
filing a document that on its face does not comply with 807 KAR Chapter
5.
Section 4. General
Matters Pertaining to All Cases.
(1) Address
of the commission. All communications shall be addressed to: Public Service
Commission, 211 Sower Boulevard, Post Office Box 615, Frankfort, Kentucky
40602.
(2) Case numbers and styles.
Each case shall receive a number and a style descriptive of the subject matter.
The number and style shall be placed on each subsequent paper filed in the
case.
(3) Signing of papers.
(a) A paper shall be signed by the submitting
party or attorney and shall include the name, address, telephone number,
facsimile number, and electronic mail address, if any, of the attorney of
record or submitting party.
(b) A
paper shall be verified or under oath if required by statute, administrative
regulation, or order of the commission.
(4) A person shall not file a paper on behalf
of another person, or otherwise represent another person, unless the person is
an attorney licensed to practice law in Kentucky or an attorney who has
complied with SCR 3.030(2). An attorney who is not licensed to practice law in
Kentucky shall present evidence of his or her compliance with SCR 3.030(2) if
appearing before the commission.
(5) Amendments. Upon motion of a party and
for good cause shown, the commission shall allow a complaint, application,
answer, or other paper to be amended or corrected or an omission supplied.
Unless the commission orders otherwise, the amendment shall not relate back to
the date of the original paper.
(6)
Witnesses and subpoenas.
(a) Upon the written
request of a party to a proceeding or commission staff, subpoenas requiring the
attendance of witnesses for the purpose of taking testimony may be signed and
issued by a member of the commission.
(b) Subpoenas for the production of books,
accounts, documents, or records (unless directed to issue by the commission on
its own authority) may be issued by the commission or a commissioner, upon
written request, stating as nearly as possible the books, accounts, documents,
or records desired to be produced.
(c) A party shall submit a completed subpoena
form with its written request as necessary.
(d) Every subpoena shall be served, in the
manner prescribed by subsection (8) of this section, on a person whose
information is being requested.
(e)
Copies of all documents received in response to a subpoena shall be filed with
the commission and furnished to all other parties to the case, except on motion
and for good cause shown. Any other tangible evidence received in response to
the subpoena shall be made available for inspection by the commission and all
other parties to the action.
(7) Computation of time.
(a) In computing a period of time prescribed
or allowed by order of the commission or by 807 KAR Chapter 5 or KRS Chapter 74
or 278, the day of the act, event, or default after which the designated period
of time begins to run shall not be included.
(b) The last day of the period so computed
shall be included, unless it is a Saturday, a Sunday, a legal holiday, or other
day commission offices are legally closed, in which event the period shall run
until the end of the next day that is not a Saturday, a Sunday, a legal
holiday, or other day commission offices are legally closed.
(8) Service.
(a) Unless the commission orders service upon
a party and the party's attorney, service shall be made upon the party's
attorney if the party is represented by an attorney.
(b) Service upon an attorney or upon a party
by the commission shall be made by sending a copy by electronic mail to the
electronic mail address listed on papers that the attorney or party has
submitted in the case. A paper that is served via electronic mail shall comply
with Section 8(4) of this administrative regulation and shall include the
sending of an electronic mail message that contains an electronic version of
the commission order or a hyperlink that enables the recipient to access, view,
and download an electronic copy of the commission order from the commission's
Web site.
(c) If good cause exists,
and upon the filing of a motion by a party to excuse a party from receiving
service by electronic mail from the commission, the commission shall order
service of papers on the party to be made in accordance with paragraph (d)1. or
2. of this subsection.
(d) Service
upon an attorney or upon a party by the parties in a case shall be made by:
1. Delivering a copy to the attorney or
party;
2. Mailing a copy by United
States mail or other recognized mail carrier to the attorney or party at the
last known address; or
3. Sending a
copy by electronic mail to the electronic mail address listed on papers that
the attorney or party has submitted in the case. A paper that is served via
electronic mail shall comply with Section 8(4) of this administrative
regulation.
(e) Service
shall be complete upon mailing or electronic transmission. If a serving party
learns that the mailing or electronic transmission did not reach the person to
be served, the serving party shall take reasonable steps to immediately
re-serve the party to be served, unless service is refused, in which case the
serving party shall not be required to take additional action.
(9) Filing.
(a) Unless electronic filing procedures
established in Section 8 of this administrative regulation are used, a paper
shall not be deemed filed with the commission until the paper:
1. Is physically received by the executive
director at the commission's offices during the commission's official business
hours; and
2. Meets all applicable
requirements of KRS Chapter 278 and KAR Title 807.
(b) The executive director shall endorse upon
each paper or document accepted for filing the date of its filing. The
endorsement shall constitute the filing of the paper or document.
(10) Privacy protection for
filings.
(a) If a person files a paper
containing personal information, the person shall encrypt or redact the paper
so that personal information cannot be read. Personal information shall include
a business name; an individual's first name or first initial and last name;
personal mark; or unique biometric or genetic print or image, in combination
with one (1) or more of the following data elements:
1. The digits of a Social Security number or
taxpayer identification number;
2.
The month and date of an individual's birth;
3. The digits of an account number, credit
card number, or debit card number that, in combination with any required
security code, access code, or password, would permit access to an
account;
4. A driver's license
number, state identification card number, or other individual identification
number issued by any agency;
5. A
passport number or other identification number issued by the United States
government;
6. "Individually
identifiable health information" as defined by
45
C.F.R. 160.103, except for education records
covered by the Family Educational Rights and Privacy Act, as amended,
20 U.S.C.
1232g; or
7. The address, phone number, or email
address of an individual who is not a party and has not requested to be a
party.
(b) To redact the
paper, the filing party shall replace the identifiers with neutral placeholders
or cover the identifiers with an indelible mark that so obscures the
identifiers that the identifiers cannot be read.
(c) The responsibility to review for
compliance with this section and redact a paper shall rest with the party that
files the paper.
(11)
Intervention and parties.
(a) A person who
wishes to become a party to a case before the commission may, by timely motion,
request leave to intervene.
1. The motion
shall include the movant's full name, mailing address, and electronic mail
address and shall state his or her interest in the case and how intervention is
likely to present issues or develop facts that will assist the commission in
fully considering the matter without unduly complicating or disrupting the
proceedings.
2. The motion may
include a request by movant for delivery of commission orders by United States
mail and shall state how good cause exists for that means of delivery to
movant.
(b) The
commission shall grant a person leave to intervene if the commission finds that
he or she has made a timely motion for intervention and that he or she has a
special interest in the case that is not otherwise adequately represented or
that his or her intervention is likely to present issues or to develop facts
that assist the commission in fully considering the matter without unduly
complicating or disrupting the proceedings.
(c) Unless electronic filing procedures
established in Section 8 of this administrative regulation are used in the
case, a party shall serve a person granted leave to intervene with all papers
that the party submits in the case after the order granting intervention, but
the party is not required to provide any papers submitted prior to the issuance
of that order unless the commission otherwise orders.
(d) Unless the commission finds good cause to
order otherwise, a person granted leave to intervene in a case shall, as a
condition of his or her intervention, be subject to the procedural schedule in
existence in that case when the order granting the person's intervention is
issued.
(e) A person who the
commission has not granted leave to intervene in a case may file written
comments regarding the subject matter of the case.
1. These comments shall be filed in the case
record.
2. A person filing written
comments shall not be deemed a party to the proceeding and need not be named as
a party to an appeal.
(12) Requests for information.
(a) If permitted by administrative regulation
or by order of the commission, a party may in accordance with this section
request information from another party to the case. The requesting party shall
serve its request upon the party from which it seeks the requested information
and shall also file its request with the commission.
(b) Commission staff, through the
commission's executive director, may request information from any party to a
case on the commission's behalf.
(c) Unless otherwise established in
administrative regulation, the commission shall establish by order in a case
the time for parties to issue and to respond to requests for
information.
(d) Responses to
requests for information.
1. Responses to
requests for information shall be appropriately bound, tabbed, and
indexed.
2. Each response shall:
a. Include the name of the witness
responsible for responding to the questions related to the information
provided; and
b. Be answered under
oath or, for representatives of a public or private corporation, a partnership,
an association, or a governmental agency, be accompanied by a signed
certification of the preparer or person supervising the preparation of the
response on behalf of the person that the response is true and accurate to the
best of that person's knowledge, information, and belief formed after a
reasonable inquiry.
3.
If the requested information has previously been provided in the case, a
responding party may, in lieu of providing the requested information, provide a
reference to the specific location of the requested information in the case
record.
4. A responding party shall
make timely amendment to its prior response if the party obtains information
that indicates that the response was incorrect when made or, though correct
when made, is subsequently incorrect in any material respect.
5. If a party served with a request for
information fails or refuses to furnish all or part of the requested
information, the party shall provide a written explanation of the specific
grounds for the failure to completely and precisely respond.
6. The responding party shall file with the
commission the party's response to a request for information and shall serve it
upon all parties to a case.
(e) A party shall compel compliance with the
party's request for information by motion to the commission, which shall
include:
1. A description of the information
requested;
2. The reasons why it is
relevant to the issues in the case; and
3. The efforts taken to resolve any
disagreement over the production of the requested information.
(13) Each report,
specification, drawing, and plan that a professional engineer or professional
land surveyor prepared and that is filed with the commission shall contain the
seal or stamp and signature of that professional engineer or land surveyor in
accordance with
KRS
322.340.
(14) Consolidation of cases.
(a) The commission may order two (2) or more
proceedings involving a similar question of law or fact to be consolidated if
rights of the parties or the public interest will not be prejudiced.
(b) Upon ordering the consolidation of cases,
the commission shall specify into which case the other case shall be
consolidated.
(c) All papers
received after the order of consolidation has been issued shall be filed in the
record of the designated case.
(d)
Papers filed prior to the order of consolidation shall remain in their
respective case files.
Section 5. Motion Practice.
(1) All requests for relief that are not
required to be made in an application, petition, or written request shall be by
motion. A motion shall state precisely the relief requested.
(2) Unless the commission orders otherwise, a
party to a case shall file a response to a motion no later than seven (7) days
from the date of filing of a motion.
(3) Unless the commission orders otherwise, a
party shall file a reply no later than five (5) days of the filing of the most
recent response to the party's motion. The reply shall be confined to points
raised in the responses to which they are addressed, and shall not reiterate an
argument already presented.
Section
6. Proof of Service.
(1) Except
as provided in Section 8 of this administrative regulation, all papers filed in
a case shall contain proof of the date and manner of service of the papers on
all parties.
(2) Proof shall be
made by certificate of the filer's attorney, by affidavit of the person who
served the papers, or by a comparable proof.
(3) The certificate or affidavit shall
identify by name the person served and the date and method of
service.
(4) Proof of electronic
service shall state the electronic notification address of the person
served.
Section 7.
Filing Procedures.
(1) Unless the commission
orders otherwise or the electronic filing procedures established in Section 8
of this administrative regulation are used, if a paper is filed with the
commission, an original unbound and ten (10) additional copies in paper medium
shall be filed.
(2) Each paper
filed with the commission shall conform to the requirements established in this
subsection.
(a) Form. Each filing shall be
printed or typewritten, double spaced, and on one (1) side of the page
only.
(b) Size. Each filing shall
be on eight and one-half (8 1/2) inches by eleven (11) inches paper.
(c) Font. Each filing shall be in type no
smaller than twelve (12) point, except footnotes, which may be in type no
smaller than ten (10) point.
(3) Except as provided for in Section 8 of
this administrative regulation, a filing made with the commission outside its
business hours shall be considered as filed on the commission's next business
day.
(4) A paper submitted by
facsimile transmission shall not be accepted.
Section 8. Electronic Filing Procedures.
(1) Upon an applicant's timely election of
the use of electronic filing procedures or upon order of the commission in a
case that the commission has initiated on its own motion, the procedures
established in this section shall be used in lieu of other filing procedures
established in this administrative regulation.
(2) At least seven (7) days prior to the
submission of its application, an applicant shall:
(a) File with the commission written notice
of its election to use electronic filing procedures using the Notice of
Election of Use of Electronic Filing Procedures form; and
(b) If the applicant does not have an account
for electronic filing with the commission, register for an account at
http://psc.ky.gov/Account/Register.
(3) All papers shall be filed with
the commission by uploading an electronic version using the commission's
E-Filing System at
http://psc.ky.gov. In
addition, the filing party shall file one (1) copy in paper medium with the
commission as required by subsection (12)(a)2. of this section.
(4)
(a)
Audio or video files.
1. A file containing
audio material shall be submitted in MP3 format.
2. A file containing video material shall be
submitted in MPEG-4 format.
(b) Except as established in paragraph (a) of
this subsection, each file in an electronic submission shall be:
1. In portable document format;
2. Search-capable;
3. Optimized for viewing over the
Internet;
4. Bookmarked to
distinguish sections of the paper, except that documents filed in response to
requests for information need not be individually bookmarked; and
5. If scanned material, scanned at a
resolution of 300 dots per inch.
(c) If, pursuant to Section 4(12) of this
administrative regulation, a party is requested to provide information in the
form of an electronic spreadsheet, the file containing the spreadsheet shall be
submitted in an Excel spreadsheet format.
(5)
(a)
Each electronic submission shall include an introductory file in portable
document format that is named "Read1st" and that contains:
1. A general description of the
filing;
2. A list of all material
to be filed in paper or physical medium but not included in the electronic
submission; and
3. A statement that
the materials in the electronic submission are a true representation of the
materials in paper medium.
(b) The "Read1st" file and any other material
that normally contains a signature shall contain a signature in the
electronically submitted document.
(c) The electronic version of the cover
letter accompanying the paper medium filing may be substituted for a general
description.
(6)
(a) An uploading session shall not exceed
twenty (20) files or 100 megabytes.
(b) An individual file shall not exceed
thirty (30) megabytes.
(c) If a
submission exceeds the limitations established in paragraph (a) of this
subsection, the filer shall make electronic submission in two (2) or more
consecutive uploading sessions.
(7) If filing a paper with the commission,
the filing party shall certify that:
(a) The
electronic version of the paper is a true and accurate copy of each paper filed
in paper medium;
(b) The electronic
version of the paper has been submitted to the commission; and
(c) A copy of the paper in paper medium has
been mailed to all parties that the commission has excused from electronic
filing procedures.
(8)
(a) Upon completion of an uploading session,
the commission shall notify all parties of record by electronic mail that an
electronic submission has been made.
(b) Upon a party's receipt of this
notification, each party shall be solely responsible for accessing the
commission's Web site at
http://psc.ky.gov to view or download the
submission.
(9) Unless a
party objects to the use of electronic filing procedures in the party's motion
for intervention, the party shall:
(a) Be
deemed to have consented to the use of electronic filing procedures and the
service of all papers, including orders of the commission, by electronic means;
and
(b) File with the commission
within seven (7) days of the date of an order of the commission granting the
party's intervention a written statement that the party, or the party's
authorized agent, possesses the facilities to receive electronic
transmissions.
(10) In
cases in which the commission has ordered the use of electronic filing
procedures on its own motion, unless a party files with the commission an
objection to the use of electronic filing procedures within seven (7) days of
issuance of the order directing the use of electronic filing procedures, the
party shall:
(a) Be deemed to have consented
to the use of electronic filing procedures and the service of all papers,
including orders of the commission, by electronic means; and
(b) File with the commission within seven (7)
days of the date of an order directing the use of electronic filing procedures
a written statement that the party, or the party's authorized agent, possesses
the facilities to receive electronic transmissions.
(11) If a party objects to the use of
electronic filing procedures and good cause exists to excuse the party from the
use of electronic filing procedures, service of papers on and by it shall be
made by mailing a copy by United States mail or other recognized mail carrier
to the attorney or party at the last known address.
(12)
(a) A
paper shall be considered timely filed with the commission if:
1. It has been successfully transmitted in
electronic medium to the commission within the time allowed for filing and
meets all other requirements established in this administrative regulation and
any order of the commission; and
2.
The paper, in paper medium, is filed at the commission's offices no later than
the second business day following the successful electronic
transmission.
(b) Each
party shall attach to the top of the paper medium submission a copy in paper
medium of the electronic notification from the commission confirming receipt of
its electronic submission.
(13) Except as established in this section, a
party making a filing in accordance with the procedures established in this
section shall not be required to comply with Section 4(8) of this
administrative regulation.
Section
9. Hearings and Rehearings.
(1)
Unless a hearing is not required by statute, is waived by the parties in the
case, or is found by the commission to be unnecessary for protection of
substantial rights or not in the public interest, the commission shall conduct
a hearing if:
(a) An order to satisfy or
answer a complaint has been made and the person complained of has not satisfied
the complaint; or
(b) A request for
hearing has been made.
(2) Publication of notice.
(a) Upon the filing of an application, the
commission may order an applicant to give notice on all persons who may be
affected by serving a copy of the application upon those persons or by
publishing notice of the filing.
1. The
applicant shall bear the expense of providing the notice.
2. If the notice is provided by publication,
the commission may designate the contents of the notice, the number of times
and the time period in which the notice shall be published, and the newspaper
in which the notice shall be published.
(b)
1. The
commission may order an applicant to give notice to the public of any hearing
on the applicant's application, and shall order an applicant for a general
adjustment of rates or reduction or discontinuance of service to give notice of
any hearing on its application.
2.
If notice of a hearing is published by the applicant in a newspaper, it shall
be published at least one (1) time and not less than seven (7) nor more than
twenty-one (21) days prior to the hearing in a newspaper of general circulation
in the areas that will be affected.
3. Notice by mail shall be mailed not less
than fourteen (14) days nor more than twenty-one (21) days prior to the
hearing.
4. Notice of hearing shall
state the purpose, time, place, and date of hearing.
5. The applicant shall bear the expense of
providing the notice.
6. Proof of
publication shall be filed at or before the hearing.
(3) Investigation on commission's
own motion.
(a) The commission may, on its own
motion, conduct investigations and order hearings into any act or thing done or
omitted to be done by a utility, which the commission believes is in violation
of an order of the commission or KRS Chapters 74 or 278 or 807 KAR Chapter
5.
(b) The commission may, through
its own experts, employees, or otherwise, obtain evidence the commission finds
necessary or desirable in a formal proceeding in addition to the evidence
presented by the parties.
(4) Conferences with commission staff. The
commission, on its own motion, through its executive director or upon a motion
of a party, may convene a conference in a case for the purpose of considering
the possibility of settlement, the simplification or clarification of issues,
or any other matter that may aid in the handling and disposition of the case.
Unless the commission directs otherwise or the parties otherwise agree,
participation in conferences with commission staff shall be limited to parties
of the subject proceeding and their representatives.
(5) Conduct of hearings. Hearings shall be
conducted before the commission or a commissioner or before a person designated
by the commission to conduct a specific hearing.
(6) Stipulation of facts. By a stipulation in
writing filed with the commission, the parties to a case may agree among
themselves or with commission staff upon the facts or any portion of the facts
involved in the controversy, which stipulation shall be regarded and used as
evidence at the hearing.
(7)
Testimony. All testimony given before the commission shall be given under oath
or affirmation.
(8) Objections and
exceptions. A party objecting to the admission or exclusion of evidence before
the commission shall state the grounds for objection. Formal exceptions shall
not be necessary and shall not be taken to rulings on objection.
(9) Record of evidence.
(a) The commission shall cause to be made a
record of all hearings. Unless the commission orders otherwise, this record
shall be a digital video recording.
1. A party
to a case may, by motion made prior to the hearing, request that a stenographic
transcript be made by a qualified reporter.
2. The commission shall grant the
motion.
3. The requesting party
shall bear the cost of the stenographic transcript and shall file a copy of the
transcript with the commission within a reasonable time after completion of the
hearing.
(b) The
executive director shall cause to be made a written exhibit list, a written
hearing log, and a written log listing the date and time of where each witness'
testimony begins and ends on the digital video recording.
(c) If a party introduces an exhibit that is
neither a document nor a photograph, the commission may direct a photograph of
the exhibit be substituted for the exhibit.
Section 10. Briefs. Each brief shall be filed
within the time fixed. A request for extension of time to file a brief shall be
made to the commission by written motion.
Section 11. Documentary Evidence.
(1) If documentary evidence is offered, the
commission, in lieu of requiring the originals to be filed, may accept
certified or otherwise authenticated copies of the documents or relevant
portions, or may require evidence to be entered as a part of the
record.
(2)
(a) If relevant and material matter offered
in evidence by any party is part of a book, paper, or document containing other
matter not material or relevant, the party shall plainly designate the matter
so offered.
(b) If immaterial
matter unnecessarily encumbers the record, the book, paper, or document shall
not be received in evidence, but may be described for identification, and if
properly authenticated, the relevant and material matter may be read into the
record.
(3)
(a) The sheets of each exhibit shall be
numbered.
(b) If practical, the
lines of each sheet shall also be numbered.
(c) If the exhibit consists of two (2) or
more sheets, the first sheet or title page shall contain a brief statement of
what the exhibit purports to show, with reference by sheet and line to
illustrative or typical examples contained in the exhibit.
(d) Rate comparisons and other evidence shall
be condensed into tables.
(4) Unless so ordered by the commission, the
commission shall not receive in evidence or consider as a part of the record a
book, paper, or other document for consideration in connection with the
proceeding after the close of the testimony.
(5) Upon motion of a party to a proceeding,
or upon the commission's own motion, the record of a case in the commission's
files or any document on file with the commission may be made a part of the
record by "reference only."
(a) The case or
document made a part of the record by reference only shall not be physically
incorporated into the record.
(b)
Upon action in the Franklin Circuit Court, excerpts from the record of a case
or part of a document may be made a part of the record before the court, at the
request of a party.
Section 12. Financial Exhibit.
(1) If this administrative regulation
requires that a financial exhibit be annexed to the application, the exhibit
shall:
(a) For a utility that had $5,000,000
or more in gross annual revenue in the immediate past calendar year, cover
operations for a twelve (12) month period, the period ending not more than
ninety (90) days prior to the date the application is filed; or
(b) For a utility that had less than
$5,000,000 in gross annual revenue in the immediate past calendar year, comply
with paragraph (a) of this subsection or cover operations for the twelve (12)
month period contained in the utility's most recent annual report on file with
the commission, and contain a statement that:
1. Material changes have not occurred since
the end of that twelve (12) month period; or
2. Identifies all material changes that have
occurred since the end of that twelve (12) month period.
(2) The exhibit shall disclose the
following information in the order indicated:
(a) The amount and kinds of stock
authorized;
(b) The amount and
kinds of stock issued and outstanding;
(c) Terms of preference of preferred stock,
cumulative or participating, or on dividends or assets or otherwise;
(d) A brief description of each mortgage on
property of applicant, giving date of execution, name of mortgagor, name of
mortgagee or trustee, amount of indebtedness authorized to be secured, and the
amount of indebtedness actually secured, together with sinking fund provisions,
if applicable;
(e) The amount of
bonds authorized and amount issued, giving the name of the public utility that
issued the same, describing each class separately and giving the date of issue,
face value, rate of interest, date of maturity, and how secured, together with
amount of interest paid during the last fiscal year;
(f) Each note outstanding, giving date of
issue, amount, date of maturity, rate of interest, in whose favor, together
with amount of interest paid during the last fiscal year;
(g) Other indebtedness, giving same by
classes and describing security, if any, with a brief statement of the
devolution or assumption of a portion of the indebtedness upon or by person or
corporation if the original liability has been transferred, together with
amount of interest paid during the last fiscal year;
(h) The rate and amount of dividends paid
during the five (5) previous fiscal years, and the amount of capital stock on
which dividends were paid each year; and
(i) A detailed income statement and balance
sheet.
Section
13. Confidential Material.
(1)
All material on file with the commission shall be available for examination by
the public unless the material is confidential.
(2) Procedure for determining confidentiality
of material submitted in a case.
(a) A request
for confidential treatment of material shall be made by motion that:
1. Establishes specific grounds pursuant to
KRS
61.878 for classification of that material as
confidential;
2. States the time
period for the material to be treated as confidential and the reasons for this
time period; and
3. Includes ten
(10) copies of the material in paper medium with those portions redacted for
which confidentiality is sought, and, in a separate sealed envelope marked
confidential, one (1) copy of the material in paper medium which identifies by
underscoring, highlighting with transparent ink, or other reasonable means only
those portions that unless redacted would disclose confidential material.
a. Text pages or portions thereof that do not
contain confidential material shall not be included in this
identification.
b. If confidential
treatment is sought for an entire document, written notification that the
entire document is confidential may be filed with the document in lieu of the
required highlighting.
(b) The motion and one (1) copy of the
material in paper medium, with only those portions for which confidentiality is
sought redacted, shall be served on all parties.
(c) The burden of proof to show that the
material falls within the exclusions from disclosure requirements established
in
KRS
61.878 and to demonstrate the time period for
the material to be considered as confidential shall be upon the moving
party.
(d) Unless the commission
orders otherwise, a party may respond to a motion for confidential treatment
within seven (7) days after the motion is filed with the commission.
(e) If the case is being conducted using
electronic filing procedures established in Section 8 of this administrative
regulation, the parties shall comply with those procedures except that an
unredacted copy of the material for which confidentiality is sought shall not
be transmitted electronically.
(3) Procedure for determining confidentiality
of material submitted outside of a case.
(a)
A person who requests confidential treatment of material filed with the
commission outside of a case shall submit a written request to the executive
director that:
1. Establishes specific
grounds pursuant to
KRS
61.878 for classification of that material as
confidential;
2. States the time
period for the material to be treated as confidential and the reasons for this
time period; and
3. Includes one
(1) copy of the material in paper medium with those portions redacted for which
confidentiality is sought, and, in a separate sealed envelope marked
confidential, one (1) copy of the material in paper medium which identifies by
underscoring, highlighting with transparent ink, or other reasonable means only
those portions that unless redacted would disclose confidential material.
a. Text pages or portions thereof that do not
contain confidential material shall not be included in this
identification.
b. If confidential
treatment is sought for an entire document, written notification that the
entire document is confidential may be filed with the document in lieu of the
required highlighting.
(b) The burden of proof to show that the
material falls within the exclusions from disclosure requirements established
in
KRS
61.878 and to demonstrate the time period for
the material to be considered as confidential shall be upon the person
requesting confidential treatment.
(c) The executive director, as official
custodian of the commission's records, shall determine if the material is
within an exclusion established in
KRS
61.878 and the time period for the material
to be considered as confidential and shall advise the requestor of the
determination by letter.
(d) A
person whose request for confidential treatment is denied, in whole or in part,
by the executive director may make application within twenty (20) days of the
executive director's decision to the commission for confidential treatment of
the material in accordance with the procedures established in subsection (2) of
this section.
1. The commission shall
establish a case and shall review the application without regard to the
executive director's determination and in the same manner as it would review a
motion for confidential treatment made pursuant to subsection (2) of this
section.
2. The application shall
comply with the requirements of subsection (2)(a) of this section.
(e) If the executive director
denies a request for confidential treatment, the material for which
confidential treatment was sought shall not be placed in the public record for
twenty (20) days following the decision.
(4) Pending action by the commission on a
motion for confidential treatment or by its executive director on a request for
confidential treatment, the material specifically identified shall be accorded
confidential treatment.
(5) If the
motion for confidential treatment of material is denied, the material shall not
be placed in the public record for the period permitted pursuant to
KRS
278.410 to bring an action for
review.
(6) Procedure for a party
to request access to confidential material filed in a case.
(a) A party to a case before the commission
shall not fail to respond to a request for information by the commission,
commission staff, or another party on grounds of confidentiality.
1. A party seeking confidential treatment for
its response to information requests shall follow the procedures for requesting
confidentiality established in this administrative regulation.
2. A party's response to requests for
information shall be served upon all parties, with only those portions for
which confidential treatment is sought redacted.
(b) If the commission grants confidential
protection to the responsive material and if parties have not entered into
protective agreements, then a party may, by motion, request access to the
material on the grounds that it is essential to the party's meaningful
participation in the proceeding.
1. The motion
shall include a description of efforts to enter into a protective agreement and
unwillingness, if applicable, to enter into a protective agreement shall be
fully explained.
2. A party may
respond to the motion within seven (7) days after it is filed with the
commission.
3. The commission shall
determine if the movant is entitled to the material, and the manner and extent
of the disclosure necessary to protect confidentiality.
(7) Requests for access to records
pursuant to
KRS
61.870 to
61.884.
(a) A time period prescribed in subsection
(10)(a) of this section shall not limit the right of a person to request access
to commission records pursuant to
KRS
61.870 to
61.884.
(b) Upon a request filed pursuant to
KRS
61.870 to
61.884,
the commission shall respond in accordance with the procedure established in
KRS
61.880.
(8) Procedure for request for access to
confidential material. A person denied access to records requested pursuant to
KRS
61.870 to
61.884
or to material deemed confidential by the commission in accordance with the
procedures established in this section, may obtain this information only
pursuant to
KRS
61.870 to
61.884
and other applicable law.
(9) Use
of confidential material.
(a) A person who
files any paper that contains material that has previously been deemed
confidential or for which a request or motion for confidential treatment is
pending shall submit one (1) copy of the paper with the adjudged or alleged
confidential material underscored or highlighted, and ten (10) copies of the
paper with those portions redacted; and
1. If
the confidential status of the material has been determined previously, a
written notice identifying the person who originally submitted the material,
the date on which a determination on the materials confidentiality was made
and, if applicable, the case number in which the determination was made;
or
2. If a request for confidential
treatment of the material is pending, a written notice identifying the person
who made the request and the date on which the request was submitted.
(b) Material deemed confidential
by the commission may be addressed and relied upon during a formal hearing by
the procedure established in this paragraph.
1. The party seeking to address the
confidential material shall advise the commission prior to the use of the
material.
2. A person other than
commission employees not a party to a protective agreement related to the
confidential material shall be excluded from the hearing room during testimony
directly related to confidential material.
3. Any portion of the record directly related
to the confidential material shall be sealed.
(10) Material granted confidentiality that
later becomes publicly available or otherwise no longer warrants confidential
treatment.
(a) Except as provided for in
paragraphs (c) and (d) of this subsection, confidential treatment shall be
afforded to material for the period specified in the commission's order or
executive director's written decision.
1. At
the end of this period, the material shall be placed in the public record
without notice to the person who originally requested confidential
treatment.
2. The person who sought
confidential treatment for the material may request that the material continue
to be treated as confidential but shall demonstrate that the material still
falls within the exclusions from disclosure requirements established in
KRS
61.878.
(b) The person who sought confidential
protection shall inform the commission in writing if material granted
confidentiality becomes publicly available.
(c) If the commission becomes aware that
material granted confidentiality is publicly available or otherwise no longer
qualifies for confidential treatment, it shall by order so advise the person
who sought confidential protection, giving ten (10) days to respond. If that
material has been disclosed by someone other than the person who requested
confidential treatment, in violation of a protective agreement or commission
order, the information shall not be deemed to be publicly available and shall
not be placed in the public record.
(d) If a request to inspect material granted
confidential treatment is made during the period specified in the commission's
order or executive director's written decision, the commission shall notify in
writing the person who originally sought confidential treatment for the
material and direct that party to demonstrate within twenty (20) days of
receipt of the notice that the material still falls within the exclusions from
disclosure requirements established in
KRS
61.878.
1.
If the party is unable to make the demonstration, the commission shall make the
requested materials available for public inspection; or
2. If the party is able to make the
demonstration, the commission shall deny the request for inspection.
(e) The material shall not be
placed in the public record for twenty (20) days following an order finding
that the material no longer qualifies for confidential treatment to allow the
petitioner to seek a remedy afforded by law.
Section 14. Applications.
(1) Each application shall state the full
name, mailing address, and electronic mail address of the applicant, and shall
contain fully the facts on which the application is based, with a request for
the order, authorization, permission, or certificate desired and a reference to
the particular law requiring or providing for the information.
(2) If a corporation, the applicant shall
identify in the application the state in which it is incorporated and the date
of its incorporation, attest that it is currently in good standing in the state
in which it is incorporated, and, if it is not a Kentucky corporation, state if
it is authorized to transact business in Kentucky.
(3) If a limited liability company, the
applicant shall identify in the application the state in which it is organized
and the date on which it was organized, attest that it is in good standing in
the state in which it is organized, and, if it is not a Kentucky limited
liability company, state if it is authorized to transact business in
Kentucky.
(4) If the applicant is a
limited partnership, a certified copy of its limited partnership agreement and
all amendments, if any, shall be annexed to the application, or a written
statement attesting that its partnership agreement and all amendments have been
filed with the commission in a prior proceeding and referencing the case number
of the prior proceeding.
Section
15. Applications for Certificates of Public Convenience and
Necessity.
(1) Application to bid on a
franchise pursuant to
KRS
278.020(3).
(a) Upon application to the commission by the
utility for a certificate of convenience and necessity authorizing the
applicant to bid on a franchise, license, or permit offered by a governmental
agency, the applicant shall submit with its application:
1. The information required pursuant to
Section 14 of this administrative regulation;
2. The name of the governmental agency
offering the franchise;
3. The type
of franchise offered; and
4. A
statement showing the need and demand for service.
(b) If an applicant is successful in
acquiring the franchise, license, or permit, the applicant shall file a copy
with the commission using the commission's electronic tariff filing
system.
(2) New
construction or extension. Upon application for a certificate that the present
or future public convenience or necessity requires, or will require, the
construction or extension of any plant, equipment, property, or facility, the
applicant, in addition to complying with Section 14 of this administrative
regulation, shall submit with its application:
(a) The facts relied upon to show that the
proposed construction or extension is or will be required by public convenience
or necessity;
(b) Copies of
franchises or permits, if any, from the proper public authority for the
proposed construction or extension, if not previously filed with the
commission;
(c) A full description
of the proposed location, route, or routes of the proposed construction or
extension, including a description of the manner of the construction and the
names of all public utilities, corporations, or persons with whom the proposed
construction or extension is likely to compete;
(d) One (1) copy in portable document format
on electronic storage medium and two (2) copies in paper medium of:
1. Maps to suitable scale showing the
location or route of the proposed construction or extension, as well as the
location to scale of like facilities owned by others located anywhere within
the map area with adequate identification as to the ownership of the other
facilities; and
2. Plans and
specifications and drawings of the proposed plant, equipment, and
facilities;
(e) The
manner in detail in which the applicant proposes to finance the proposed
construction or extension; and
(f)
An estimated annual cost of operation after the proposed facilities are placed
into service.
(3)
Extensions in the ordinary course of business. A certificate of public
convenience and necessity shall not be required for extensions that do not
create wasteful duplication of plant, equipment, property, or facilities, or
conflict with the existing certificates or service of other utilities operating
in the same area and under the jurisdiction of the commission that are in the
general or contiguous area in which the utility renders service, and that do
not involve sufficient capital outlay to materially affect the existing
financial condition of the utility involved, or will not result in increased
charges to its customers.
(4)
Renewal applications. An application for a renewal of a certificate of
convenience and necessity shall be treated as an original
application.
Section 16.
Applications for General Adjustments of Existing Rates.
(1) Each application requesting a general
adjustment of existing rates shall:
(a) Be
supported by:
1. A twelve (12) month
historical test period that may include adjustments for known and measurable
changes; or
2. A fully forecasted
test period; and
(b)
Include:
1. A statement of the reason the
adjustment is required;
2. A
certified copy of a certificate of assumed name as required by
KRS
365.015 or a statement that a certificate is
not necessary;
3. New or revised
tariff sheets, if applicable in a format that complies with
807 KAR 5:011 with an
effective date not less than thirty (30) days from the date the application is
filed;
4. New or revised tariff
sheets, if applicable, identified in compliance with
807 KAR 5:011, shown
either by providing:
a. The present and
proposed tariffs in comparative form on the same sheet side by side or on
facing sheets side by side; or
b. A
copy of the present tariff indicating proposed additions by italicized inserts
or underscoring and striking over proposed deletions; and
5. A statement that notice has been given in
compliance with Section 17 of this administrative regulation with a copy of the
notice.
(2)
Notice of intent. A utility with gross annual revenues greater than $5,000,000
shall notify the commission in writing of its intent to file a rate application
at least thirty (30) days, but not more than sixty (60) days, prior to filing
its application.
(a) The notice of intent
shall state if the rate application will be supported by a historical test
period or a fully forecasted test period.
(b) Upon filing the notice of intent, an
application may be made to the commission for permission to use an abbreviated
form of newspaper notice of proposed rate increases provided the notice
includes a coupon that may be used to obtain a copy from the applicant of the
full schedule of increases or rate changes.
(c) Upon filing the notice of intent with the
commission, the applicant shall mail to the Attorney General's Office of Rate
Intervention a copy of the notice of intent or send by electronic mail in a
portable document format, to rateintervention@ag.ky.gov.
(3) Notice given pursuant to Section 17 of
this administrative regulation shall satisfy the requirements of
807 KAR
5:051, Section 2.
(4) Each application supported by a
historical test period shall include the following information or a statement
explaining why the required information does not exist and is not applicable to
the utility's application:
(a) A complete
description and quantified explanation for all proposed adjustments with proper
support for proposed changes in price or activity levels, if applicable, and
other factors that may affect the adjustment;
(b) If the utility has gross annual revenues
greater than $5,000,000, the written testimony of each witness the utility
proposes to use to support its application;
(c) If the utility has gross annual revenues
less than $5,000,000 the written testimony of each witness the utility proposes
to use to support its application or a statement that the utility does not plan
to submit written testimony;
(d) A
statement estimating the effect that each new rate will have upon the revenues
of the utility including, at minimum, the total amount of revenues resulting
from the increase or decrease and the percentage of the increase or
decrease;
(e) If the utility
provides electric, gas, water, or sewer service, the effect upon the average
bill for each customer classification to which the proposed rate change will
apply;
(f) If the utility is an
incumbent local exchange company, the effect upon the average bill for each
customer class for the proposed rate change in basic local service;
(g) A detailed analysis of customers' bills
whereby revenues from the present and proposed rates can be readily determined
for each customer class;
(h) A
summary of the utility's determination of its revenue requirements based on
return on net investment rate base, return on capitalization, interest
coverage, debt service coverage, or operating ratio, with supporting
schedules;
(i) A reconciliation of
the rate base and capital used to determine its revenue requirements;
(j) A current chart of accounts if more
detailed than the Uniform System of Accounts;
(k) The independent auditor's annual opinion
report, with written communication from the independent auditor to the utility,
if applicable, which indicates the existence of a material weakness in the
utility's internal controls;
(l)
The most recent Federal Energy Regulatory Commission or Federal Communication
Commission audit reports;
(m) The
most recent FERC Financial Report FERC Form No.1, FERC Financial Report FERC
Form No. 2, or Public Service Commission Form T (telephone);
(n) A summary of the utility's latest
depreciation study with schedules by major plant accounts, except that
telecommunications utilities that have adopted the commission's average
depreciation rates shall provide a schedule that identifies the current and
test period depreciation rates used by major plant accounts. If the required
information has been filed in another commission case, a reference to that
case's number shall be sufficient;
(o) A list of all commercially available or
in-house developed computer software, programs, and models used in the
development of the schedules and work papers associated with the filing of the
utility's application. This list shall include:
1. Each software, program, or
model;
2. What the software,
program, or model was used for;
3.
The supplier of each software, program, or model;
4. A brief description of the software,
program, or model; and
5. The
specifications for the computer hardware and the operating system required to
run the program;
(p)
Prospectuses of the most recent stock or bond offerings;
(q) The annual report to shareholders or
members and statistical supplements covering the two (2) most recent years from
the utility's application filing date;
(r) The monthly managerial reports providing
financial results of operations for the twelve (12) months in the test
period;
(s) A copy of the utility's
annual report on Form 10-K as filed with the Securities and Exchange Commission
for the most recent two (2) years, any Form 8-K issued during the past two (2)
years, and any Form 10-Q issued during the past six (6) quarters updated as
current information becomes available;
(t) If the utility had amounts charged or
allocated to it by an affiliate or general or home office or paid monies to an
affiliate or general or home office during the test period or during the
previous three (3) calendar years, the utility shall file:
1. A detailed description of the method and
amounts allocated or charged to the utility by the affiliate or general or home
office for each charge allocation or payment;
2. An explanation of how the allocator for
the test period was determined; and
3. All facts relied upon, including other
regulatory approval, to demonstrate that each amount charged, allocated, or
paid during the test period was reasonable;
(u) If the utility provides gas, electric,
water, or sewage utility service and has annual gross revenues greater than
$5,000,000, a cost of service study based on a methodology generally accepted
within the industry and based on current and reliable data from a single time
period; and
(v) Local exchange
carriers with more than 50,000 access lines shall file:
1. A jurisdictional separations study
consistent with 47 C.F.R. Part 36 ; and
2. Service specific cost studies to support
the pricing of all services that generate annual revenue greater than
$1,000,000 except local exchange access:
a.
Based on current and reliable data from a single time period; and
b. Using generally recognized fully
allocated, embedded, or incremental cost principles.
(5) Upon good cause
shown, a utility may request pro forma adjustments for known and measurable
changes to ensure fair, just, and reasonable rates based on the historical test
period. The following information shall be filed with each application
requesting pro forma adjustments or a statement explaining why the required
information does not exist and is not applicable to the utility's application:
(a) A detailed income statement and balance
sheet reflecting the impact of all proposed adjustments;
(b) The most recent capital construction
budget containing at least the period of time as proposed for any pro forma
adjustment for plant additions;
(c)
For each proposed pro forma adjustment reflecting plant additions, the
following information:
1. The starting date of
the construction of each major component of plant;
2. The proposed in-service date;
3. The total estimated cost of construction
at completion;
4. The amount
contained in construction work in progress at the end of the test
period;
5. A schedule containing a
complete description of actual plant retirements and anticipated plant
retirements related to the pro forma plant additions including the actual or
anticipated date of retirement;
6.
The original cost and the cost of removal and salvage for each component of
plant to be retired during the period of the proposed pro forma adjustment for
plant additions;
7. An explanation
of differences, if applicable, in the amounts contained in the capital
construction budget and the amounts of capital construction cost contained in
the pro forma adjustment period; and
8. The impact on depreciation expense of all
proposed pro forma adjustments for plant additions and retirements;
(d) The operating budget for each
month of the period encompassing the pro forma adjustments; and
(e) The number of customers to be added to
the test period end level of customers and the related revenue requirements
impact for all pro forma adjustments with complete details and supporting work
papers.
(6) All
applications requesting a general adjustment in rates supported by a fully
forecasted test period shall comply with the requirements established in this
subsection.
(a) The financial data for the
forecasted period shall be presented in the form of pro forma adjustments to
the base period.
(b) Forecasted
adjustments shall be limited to the twelve (12) months immediately following
the suspension period.
(c)
Capitalization and net investment rate base shall be based on a thirteen (13)
month average for the forecasted period.
(d) After an application based on a
forecasted test period is filed, there shall be no revisions to the forecast,
except for the correction of mathematical errors, unless the revisions reflect
statutory or regulatory enactments that could not, with reasonable diligence,
have been included in the forecast on the date it was filed. There shall be no
revisions filed within thirty (30) days of a scheduled hearing on the rate
application.
(e) The commission may
require the utility to prepare an alternative forecast based on a reasonable
number of changes in the variables, assumptions, and other factors used as the
basis for the utility's forecast.
(f) The utility shall provide a
reconciliation of the rate base and capital used to determine its revenue
requirements.
(7) Each
application requesting a general adjustment in rates supported by a fully
forecasted test period shall include the following or a statement explaining
why the required information does not exist and is not applicable to the
utility's application:
(a) The written
testimony of each witness the utility proposes to use to support its
application, which shall include testimony from the utility's chief officer in
charge of Kentucky operations on the existing programs to achieve improvements
in efficiency and productivity, including an explanation of the purpose of the
program;
(b) The utility's most
recent capital construction budget containing at a minimum a three (3) year
forecast of construction expenditures;
(c) A complete description, which may be
filed in written testimony form, of all factors used in preparing the utility's
forecast period. All econometric models, variables, assumptions, escalation
factors, contingency provisions, and changes in activity levels shall be
quantified, explained, and properly supported;
(d) The utility's annual and monthly budget
for the twelve (12) months preceding the filing date, the base period, and
forecasted period;
(e) A statement
of attestation signed by the utility's chief officer in charge of Kentucky
operations, which shall provide:
1. That the
forecast is reasonable, reliable, made in good faith, and that all basic
assumptions used in the forecast have been identified and justified;
2. That the forecast contains the same
assumptions and methodologies as used in the forecast prepared for use by
management, or an identification and explanation for differences that exist, if
applicable; and
3. That
productivity and efficiency gains are included in the forecast;
(f) For each major construction
project that constitutes five (5) percent or more of the annual construction
budget within the three (3) year forecast, the following information shall be
filed:
1. The date the project was started or
estimated starting date;
2. The
estimated completion date;
3. The
total estimated cost of construction by year exclusive and inclusive of
allowance for funds used during construction ("AFUDC") or interest during
construction credit; and
4. The
most recent available total costs incurred exclusive and inclusive of AFUDC or
interest during construction credit;
(g) For all construction projects that
constitute less than five (5) percent of the annual construction budget within
the three (3) year forecast, the utility shall file an aggregate of the
information requested in paragraph (f)3 and 4 of this subsection;
(h) A financial forecast corresponding to
each of the three (3) forecasted years included in the capital construction
budget. The financial forecast shall be supported by the underlying assumptions
made in projecting the results of operations and shall include the following
information:
1. Operating income statement
(exclusive of dividends per share or earnings per share);
2. Balance sheet;
3. Statement of cash flows;
4. Revenue requirements necessary to support
the forecasted rate of return;
5.
Load forecast including energy and demand (electric);
6. Access line forecast
(telephone);
7. Mix of generation
(electric);
8. Mix of gas supply
(gas);
9. Employee level;
10. Labor cost changes;
11. Capital structure requirements;
12. Rate base;
13. Gallons of water projected to be sold
(water);
14. Customer forecast
(gas, water);
15. Sales volume
forecasts in cubic feet (gas);
16.
Toll and access forecast of number of calls and number of minutes (telephone);
and
17. A detailed explanation of
other information provided, if applicable;
(i) The most recent Federal Energy Regulatory
Commission or Federal Communications Commission audit reports;
(j) The prospectuses of the most recent stock
or bond offerings;
(k) The most
recent FERC Financial Report FERC Form No.1, FERC Financial Report FERC Form
No.2, or Public Service Commission Form T (telephone);
(l) The annual report to shareholders or
members and the statistical supplements covering the most recent two (2) years
from the application filing date;
(m) The current chart of accounts if more
detailed than the Uniform System of Accounts chart;
(n) The latest twelve (12) months of the
monthly managerial reports providing financial results of operations in
comparison to the forecast;
(o)
Complete monthly budget variance reports, with narrative explanations, for the
twelve (12) months immediately prior to the base period, each month of the base
period, and any subsequent months, as they become available;
(p) A copy of the utility's annual report on
Form 10-K as filed with the Securities and Exchange Commission for the most
recent two (2) years, and any Form 8-K issued during the past two (2) years,
and any Form 10-Q issued during the past six (6) quarters;
(q) The independent auditor's annual opinion
report, with any written communication from the independent auditor to the
utility that indicates the existence of a material weakness in the utility's
internal controls;
(r) The
quarterly reports to the stockholders for the most recent five (5)
quarters;
(s) The summary of the
latest depreciation study with schedules itemized by major plant accounts,
except that telecommunications utilities that have adopted the commission's
average depreciation rates shall provide a schedule that identifies the current
and base period depreciation rates used by major plant accounts. If the
required information has been filed in another commission case, a reference to
that case's number shall be sufficient;
(t) A list of all commercially available or
in-house developed computer software, programs, and models used in the
development of the schedules and work papers associated with the filing of the
utility's application. This list shall include:
1. Each software, program, or
model;
2. What the software,
program, or model was used for;
3.
The supplier of each software, program, or model;
4. A brief description of the software,
program, or model; and
5. The
specifications for the computer hardware and the operating system required to
run the program;
(u) If
the utility had amounts charged or allocated to it by an affiliate or a general
or home office or paid monies to an affiliate or a general or home office
during the base period or during the previous three (3) calendar years, the
utility shall file:
1. A detailed description
of the method and amounts allocated or charged to the utility by the affiliate
or general or home office for each allocation or payment;
2. The method and amounts allocated during
the base period and the method and estimated amounts to be allocated during the
forecasted test period;
3. An
explanation of how the allocator for both the base period and the forecasted
test period were determined; and
4.
All facts relied upon, including other regulatory approval, to demonstrate that
each amount charged, allocated, or paid during the base period is
reasonable;
(v) If the
utility provides gas, electric, sewage, or water utility service and has annual
gross revenues greater than $5,000,000 in the division for which a rate
adjustment is sought, a cost of service study based on a methodology generally
accepted within the industry and based on current and reliable data from a
single time period; and
(w)
Incumbent local exchange carriers with fewer than 50,000 access lines shall not
be required to file cost of service studies, except as directed by the
commission. Local exchange carriers with more than 50,000 access lines shall
file:
1. A jurisdictional separations study
consistent with 47 C.F.R. Part 36; and
2. Service specific cost studies to support
the pricing of all services that generate annual revenue greater than
$1,000,000 except local exchange access:
a.
Based on current and reliable data from a single time period; and
b. Using generally recognized fully
allocated, embedded, or incremental cost principles.
(8) Each application
seeking a general adjustment in rates supported by a forecasted test period
shall include:
(a) A jurisdictional financial
summary for both the base period and the forecasted period that details how the
utility derived the amount of the requested revenue increase;
(b) A jurisdictional rate base summary for
both the base period and the forecasted period with supporting schedules, which
include detailed analyses of each component of the rate base;
(c) A jurisdictional operating income summary
for both the base period and the forecasted period with supporting schedules,
which provide breakdowns by major account group and by individual
account;
(d) A summary of
jurisdictional adjustments to operating income by major account with supporting
schedules for individual adjustments and jurisdictional factors;
(e) A jurisdictional federal and state income
tax summary for both the base period and the forecasted period with all
supporting schedules of the various components of jurisdictional income
taxes;
(f) Summary schedules for
both the base period and the forecasted period (the utility may also provide a
summary segregating those items it proposes to recover in rates) of
organization membership dues; initiation fees; expenditures at country clubs;
charitable contributions; marketing, sales, and advertising expenditures;
professional service expenses; civic and political activity expenses;
expenditures for employee parties and outings; employee gift expenses; and rate
case expenses;
(g) Analyses of
payroll costs including schedules for wages and salaries, employee benefits,
payroll taxes, straight time and overtime hours, and executive compensation by
title;
(h) A computation of the
gross revenue conversion factor for the forecasted period;
(i) Comparative income statements (exclusive
of dividends per share or earnings per share), revenue statistics and sales
statistics for the five (5) most recent calendar years from the application
filing date, the base period, the forecasted period, and two (2) calendar years
beyond the forecast period;
(j) A
cost of capital summary for both the base period and forecasted period with
supporting schedules providing details on each component of the capital
structure;
(k) Comparative
financial data and earnings measures for the ten (10) most recent calendar
years, the base period, and the forecast period;
(l) A narrative description and explanation
of all proposed tariff changes;
(m)
A revenue summary for both the base period and forecasted period with
supporting schedules, which provide detailed billing analyses for all customer
classes; and
(n) A typical bill
comparison under present and proposed rates for all customer classes.
(9) The commission shall notify
the applicant of any deficiencies in the application within thirty (30) days of
the application's submission. An application shall not be accepted for filing
until the utility has cured all noted deficiencies.
(10) A request for a waiver from the
requirements of this section shall include the specific reasons for the
request. The commission shall grant the request upon good cause shown by the
utility. In determining if good cause has been shown, the commission shall
consider:
(a) If other information that the
utility would provide if the waiver is granted is sufficient to allow the
commission to effectively and efficiently review the rate
application;
(b) If the information
that is the subject of the waiver request is normally maintained by the utility
or reasonably available to it from the information that it maintains;
and
(c) The expense to the utility
in providing the information that is the subject of the waiver
request.
Section
17. Notice of General Rate Adjustment. Upon filing an application
for a general rate adjustment, a utility shall provide notice as established in
this section.
(1) Public postings.
(a) A utility shall post at its place of
business a copy of the notice no later than the date the application is
submitted to the commission.
(b) A
utility that maintains a Web site shall, within five (5) business days of the
date the application is submitted to the commission, post on its Web sites:
1. A copy of the public notice; and
2. A hyperlink to the location on the
commission's Web site where the case documents are available.
(c) The information required in
paragraphs (a) and (b) of this subsection shall not be removed until the
commission issues a final decision on the application.
(2) Customer Notice.
(a) If a utility has twenty (20) or fewer
customers, the utility shall mail a written notice to each customer no later
than the date on which the application is submitted to the
commission.
(b) If a utility has
more than twenty (20) customers, it shall provide notice by:
1. Including notice with customer bills
mailed no later than the date the application is submitted to the
commission;
2. Mailing a written
notice to each customer no later than the date the application is submitted to
the commission;
3. Publishing
notice once a week for three (3) consecutive weeks in a prominent manner in a
newspaper of general circulation in the utility's service area, the first
publication to be made no later than the date the application is submitted to
the commission; or
4. Publishing
notice in a trade publication or newsletter delivered to all customers no later
than the date the application is submitted to the commission.
(c) A utility that provides
service in more than one (1) county may use a combination of the notice methods
listed in paragraph (b) of this subsection.
(3) Proof of Notice. A utility shall file
with the commission no later than forty-five (45) days from the date the
application was initially submitted to the commission:
(a) If notice is mailed to its customers, an
affidavit from an authorized representative of the utility verifying the
contents of the notice, that notice was mailed to all customers, and the date
of the mailing;
(b) If notice is
published in a newspaper of general circulation in the utility's service area,
an affidavit from the publisher verifying the contents of the notice, that the
notice was published, and the dates of the notice's publication; or
(c) If notice is published in a trade
publication or newsletter delivered to all customers, an affidavit from an
authorized representative of the utility verifying the contents of the notice,
the mailing of the trade publication or newsletter, that notice was included in
the publication or newsletter, and the date of mailing.
(4) Notice Content. Each notice issued in
accordance with this section shall contain:
(a) The proposed effective date and the date
the proposed rates are expected to be filed with the commission;
(b) The present rates and proposed rates for
each customer classification to which the proposed rates will apply;
(c) The amount of the change requested in
both dollar amounts and percentage change for each customer classification to
which the proposed rates will apply;
(d) The amount of the average usage and the
effect upon the average bill for each customer classification to which the
proposed rates will apply, except for local exchange companies, which shall
include the effect upon the average bill for each customer classification for
the proposed rate change in basic local service;
(e) A statement that a person may examine
this application at the offices of (utility name) located at (utility
address);
(f) A statement that a
person may examine this application at the commission's offices located at 211
Sower Boulevard, Frankfort, Kentucky, Monday through Friday, 8:00 a.m. to 4:30
p.m., or through the commission's Web site at
http://psc.ky.gov;
(g) A statement that comments regarding the
application may be submitted to the Public Service Commission through its Web
site or by mail to Public Service Commission, Post Office Box 615, Frankfort,
Kentucky 40602;
(h) A statement
that the rates contained in this notice are the rates proposed by (utility
name) but that the Public Service Commission may order rates to be charged that
differ from the proposed rates contained in this notice;
(i) A statement that a person may submit a
timely written request for intervention to the Public Service Commission, Post
Office Box 615, Frankfort, Kentucky 40602, establishing the grounds for the
request including the status and interest of the party; and
(j) A statement that if the commission does
not receive a written request for intervention within thirty (30) days of
initial publication or mailing of the notice, the commission may take final
action on the application.
(5) Abbreviated form of notice. Upon written
request, the commission may grant a utility permission to use an abbreviated
form of published notice of the proposed rates, provided the notice includes a
coupon that may be used to obtain all of the required information.
Section 18. Application for
Authority to Issue Securities, Notes, Bonds, Stocks, or Other Evidences of
Indebtedness.
(1) An application for authority
to issue securities, notes, bonds, stocks, or other evidences of indebtedness
payable at periods of more than two (2) years from the date thereof shall
contain:
(a) The information required by
Section 14 of this administrative regulation;
(b) A general description of the applicant's
property and the field of its operation, together with a statement of the
original cost of the same and the cost to the applicant. If it is impossible to
state the original cost, the facts creating the impossibility shall be
stated;
(c) The amount and kinds of
stock, if any, which the applicant desires to issue, and, if preferred, the
nature and extent of the preference; the amount of notes, bonds, or other
evidences of indebtedness, if any, which the applicant desires to issue, with
terms, rate of interest, and if and how to be secured;
(d) The use to be made of the proceeds of the
issue of securities, notes, bonds, stocks, or other evidence of indebtedness
with a statement indicating how much is to be used for the acquisition of
property, the construction, completion, extension, or improvement of
facilities, the improvement of service, the maintenance of service, and the
discharge or refunding of obligations;
(e) The property in detail that is to be
acquired, constructed, improved, or extended with its cost, a detailed
description of the contemplated construction, completion, extension, or
improvement of facilities established in a manner whereby an estimate of the
cost may be made, a statement of the character of the improvement of service
proposed, and of the reasons why the service should be maintained from its
capital. If a contract has been made for the acquisition of property, or for
construction, completion, extension, or improvement of facilities, or for the
disposition of the securities, notes, bonds, stocks, or other evidence of
indebtedness that it proposes to issue or the proceeds thereof and if a
contract has been made, copies thereof shall be annexed to the
application;
(f) If it is proposed
to discharge or refund obligations, a statement of the nature and description
of the obligations including their par value, the amount for which they were
actually sold, the associated expenses, and the application of the proceeds
from the sales. If notes are to be refunded, the application shall show the
date, amount, time, rate of interest, and payee of each and the purpose for
which their proceeds were expended; and
(g) If the applicant is a water district, a
copy of the applicant's written notification to the state local debt officer
regarding the proposed issuance.
(2) The following exhibits shall be filed
with the application:
(a) Financial exhibit
(see Section 12 of this administrative regulation);
(b) Copies of trust deeds or mortgages, if
applicable, unless they have already been filed with the commission, in which
case reference shall be made by case number to the proceeding in which the
trust deeds or mortgages have been filed; and
(c) Maps and plans of the proposed property
and constructions together with detailed estimates in a form that they can be
reviewed by the commission's engineering division. Estimates shall be arranged
according to the commission-prescribed uniform system of accounts for the
various classes of utilities.
Section 19. Application for Declaratory
Order.
(1) The commission may, upon
application by a person substantially affected, issue a declaratory order with
respect to the jurisdiction of the commission, the applicability to a person,
property, or state of facts of an order or administrative regulation of the
commission or provision of KRS Chapter 278, or with respect to the meaning and
scope of an order or administrative regulation of the commission or provision
of KRS Chapter 278.
(2) An
application for declaratory order shall:
(a)
Be in writing;
(b) Contain a
complete, accurate, and concise statement of the facts upon which the
application is based;
(c) Fully
disclose the applicant's interest;
(d) Identify all statutes, administrative
regulations, and orders to which the application relates; and
(e) State the applicant's proposed resolution
or conclusion.
(3) The
commission may direct that a copy of the application for a declaratory order be
served on a person who may be affected by the application.
(4) Unless the commission orders otherwise,
responses, if applicable, to an application for declaratory order shall be
filed with the commission within twenty-one (21) days after the date on which
the application was filed with the commission and shall be served upon the
applicant.
(5) A reply to a
response shall be filed with the commission within fourteen (14) days after
service.
(6) Each application,
response, and reply containing an allegation of fact shall be supported by
affidavit or shall be verified.
(7)
The commission may dispose of an application for a declaratory order solely on
the basis of the written submissions filed.
(8) The commission may take any action
necessary to ensure a complete record, to include holding oral arguments on the
application and requiring the production of additional documents and materials,
and may extend the time for the filing of a reply or response under this
section.
Section 20.
Formal Complaints.
(1) Contents of complaint.
Each complaint shall be headed "Before the Public Service Commission," shall
establish the names of the complainant and the defendant, and shall state:
(a) The full name and post office address of
the complainant;
(b) The full name
and post office address of the defendant;
(c) Fully, clearly, and with reasonable
certainty, the act or omission, of which complaint is made, with a reference,
if practicable, to the law, order, or administrative regulation, of which a
failure to comply is alleged, and other matters, or facts, if any, as necessary
to acquaint the commission fully with the details of the alleged failure;
and
(d) The relief
sought.
(2) Signature.
The complainant or his or her attorney, if applicable, shall sign the
complaint. A complaint by a corporation, association, or another organization
with the right to file a complaint, shall be signed by its attorney.
(3) Number of copies required. Upon the
filing of an original complaint, the complainant shall also file two (2) more
copies than the number of persons to be served.
(4) Procedure on filing of complaint.
(a) Upon the filing of a complaint, the
commission shall immediately examine the complaint to ascertain if it
establishes a prima facie case and conforms to this administrative regulation.
1. If the commission finds that the complaint
does not establish a prima facie case or does not conform to this
administrative regulation, the commission shall notify the complainant and
provide the complainant an opportunity to amend the complaint within a
specified time.
2. If the complaint
is not amended within the time or the extension as the commission, for good
cause shown, shall grant, the complaint shall be dismissed.
(b) If the complaint, either as
originally filed or as amended, establishes a prima facie case and conforms to
this administrative regulation, the commission shall serve an order upon the
person complained of, accompanied by a copy of the complaint, directed to the
person complained of and requiring that the matter complained of be satisfied,
or that the complaint be answered in writing within ten (10) days from the date
of service of the order, provided that the commission may require the answer to
be filed within a shorter period if the complaint involves an emergency
situation or otherwise would be detrimental to the public interest.
(5) Satisfaction of the complaint.
If the defendant desires to satisfy the complaint, he or she shall submit to
the commission, within the time allowed for satisfaction or answer, a statement
of the relief that the defendant is willing to give. Upon the acceptance of
this offer by the complainant and with the approval of the commission, the case
shall be dismissed.
(6) Answer to
complaint. If the complainant is not satisfied with the relief offered, the
defendant shall file an answer to the complaint within the time specified in
the order or the extension as the commission, for good cause shown, shall
grant.
(a) The answer shall contain a specific
denial of the material allegations of the complaint as controverted by the
defendant and also a statement of any new matters constituting a
defense.
(b) If the defendant does
not have information sufficient to answer an allegation of the complaint, the
defendant may so state in the answer and place the denial upon that
ground.
Section
21. Informal Complaints.
(1) An
informal complaint shall be made to the commission's division of consumer
services in a manner that specifically states the complainant's concerns and
identifies the utility.
(2) The
commission's division of consumer services shall address by correspondence or
other means the complaint.
(a) If an informal
complaint is referred to a utility, the utility shall acknowledge to the
commission's division of consumer services referral of the complaint and shall
report on its efforts to contact the complainant within three (3) business days
of the referral, or a lesser period if the complaint involves an emergency
situation or otherwise would be detrimental to the public interest.
(b) If commission staff requires a period
less than three (3) business days for a response, that period shall be
reasonable under the circumstances.
(3) Upon resolution of the informal
complaint, the utility shall notify the commission's division of consumer
services.
(4) In the event of
failure to bring about satisfaction of the complaint because of the inability
of the parties to agree as to the facts involved, or from other causes, the
proceeding shall be held to be without prejudice to the complainant's right to
file and prosecute a formal complaint whereupon the informal proceedings shall
be discontinued.
Section
22. Deviations from Rules. In special cases, for good cause shown,
the commission may permit deviations from these rules.
Section 23. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "FERC Financial Report FERC
Form No. 1", March 2007;
(b) "FERC
Financial Report FERC Form No. 2", December 2007;
(c) "Notice of Election of Use of Electronic
Filing Procedures", June 2014;
(d)
"PSC Form-T (telephone)", August 2005;
(e) "Form 8-K", January 2012;
(f) "Form 10-K", January 2012;
(g) "Form 10-Q", January 2012; and
(h) "Subpoena Form", August 2013.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
commission's offices located at 211 Sower Boulevard, Frankfort, Kentucky 40601,
Monday through Friday, 8:00 a.m. to 4:30 p.m., or through the commission's Web
site at
http://psc.ky.gov.
STATUTORY AUTHORITY:
KRS
278.040(3),
278.260(2),
278.310