Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
65.810, Chapter 74, 278.010, 278.030,
278.160, 278.170, 278.180, 278.190, 369.102
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
278.160(1) requires the
commission to promulgate an administrative regulation to establish requirements
for each utility to file schedules showing all rates and conditions established
by it and collected or enforced. This administrative regulation establishes
requirements for utility tariffs.
Section
1. Definitions.
(1) "Commission"
is defined by
KRS
278.010(15).
(2) "Date of issue" means the date the tariff
sheet is signed by the representative of the utility authorized to issue
tariffs.
(3) "Electronic signature"
is defined by
KRS
369.102(8).
(4) "Nonrecurring charge" means a charge or
fee assessed to a customer to recover the specific cost of an activity, which:
(a) Is due to a specific request for a
service activity for which, once the activity is completed, additional charges
are not incurred; and
(b) Is
limited to recovery of an amount no greater than the cost of the specific
service.
(5) "Person" is
defined by
KRS
278.010(2).
(6) "Rate" is defined by
KRS
278.010(12).
(7) "Signature" means any manual, facsimile,
conformed, or electronic signatures.
(8) "Statutory notice" means notice made in
accordance with
KRS
278.180.
(9) "Tariff" means the schedules of a
utility's rates, charges, regulations, rules, tolls, terms, and conditions of
service over which the commission has jurisdiction.
(10) "Tariff filing" means the revised or new
tariff sheets and all supporting documents that a utility submits to revise its
rate schedules.
(11) "Utility" is
defined by
KRS
278.010(3).
(12) "Utility's office or place of business"
means a location at which the utility regularly employs and stations one (1) or
more employees and is open to the public for customer service.
(13) "Water district" means a special
district formed pursuant to
KRS
65.810 and KRS Chapter 74.
(14) "Web site" means an identifiable site on
the internet, including social media, which is accessible by the
public.
Section 2.
General.
(1) Each tariff sheet and supporting
document filed with the commission shall be electronically submitted to the
commission using the commission's electronic Tariff Filing System located at
https://psc.ky.gov/psc_portal.
(2) Each utility shall maintain a complete
tariff with the commission.
(3) A
utility furnishing more than one (1) type of service (water and electricity for
example) shall file a separate tariff for each type of service.
(4) A utility shall make available a paper or
electronic copy of the utility's current tariff for public inspection in the
utility's office or place of business.
(5) A utility that maintains a Web site for
its utility operations shall:
(a) Make
available on that Web site for public viewing and downloading a copy of the
utility's current tariff for each type of service that it provides;
or
(b) Place on that Web site a
hyperlink to the location on the commission's Web site where the tariff has
been posted.
Section
3. Format.
(1) A new tariff or
revised sheet of an existing tariff filed with the commission shall be:
(a) Printed or typewritten;
(b) Eight and one-half (8 1/2) by eleven (11)
inches in size; and
(c) In type no
smaller than nine (9) point font, except headers and footers, which shall be in
type no smaller than eight (8) point font.
(2) Tariff Form-1. The first sheet of a
tariff shall be on Tariff Form-1, shall be used as the tariff's cover page, and
shall contain:
(a) The utility's name, mailing
address, street address of the utility's principal office if different from the
mailing address, and Web site if applicable;
(b) In the upper right-hand corner, the
commission tariff number and, if applicable, the cancelled commission tariff
number (Example: PSC Tariff No. 2, Cancelling PSC Tariff No. 1);
(c) A statement of the type of service
offered;
(d) A statement of the
area served;
(e) The date of issue
and date on which the tariff is to become effective;
(f) The signature of the representative of
the utility authorized to issue tariffs; and
(g) The signatory's title or
position.
(3) Tariff
Form-2. With the exception of the first sheet of the tariff, which shall be on
Tariff Form-1, all other tariff sheets shall be on Tariff Form-2 and shall
contain:
(a) The utility's name and territory
served;
(b) In the upper right-hand
corner, the commission tariff number and, if applicable, the cancelled
commission tariff number (Example: PSC Tariff No. 2, Cancelling PSC Tariff No.
1);
(c) In the upper right-hand
corner, the tariff sheet number and, if applicable, the cancelled tariff sheet
number (Example: First Revised Sheet No. 1, Cancelling Original Sheet No.
1);
(d) The date of issue and date
on which the tariff is to become effective;
(e) The signature of the utility
representative authorized to issue tariffs;
(f) The signatory's title or position;
and
(g) If applicable, a statement
that the tariff is "Issued by authority of an Order of the Public Service
Commission in Case No. _______ Dated _________, 20____".
(4) Each tariff sheet shall contain a blank
space at its bottom right corner that measures at least three and one-half
(3.5) inches from the right of the tariff sheet by two and one-half (2.5)
inches from the bottom of the tariff sheet to allow space for the commission to
affix the commission's stamp.
Section
4. Contents of Schedules.
(1) In
addition to a clear statement of all rates, each rate schedule shall state the
city, town, village, or district in which rates are applicable.
(a) If a schedule is applicable in a large
number of communities, the schedule shall be accompanied by an accurate index
so that each community in which the rates are applicable may be readily
ascertained.
(b) If a utility
indicates the applicability of a schedule by reference to the index sheet, the
utility shall use language indicating "Applicable within the corporate limits
of the City of ________ ," or "see Tariff Sheet No. ____ for
applicability."
(2) The
following information shall be shown in each rate schedule, if applicable,
under the following captions in the order listed:
(a) Applicable: show the territory
covered;
(b) Availability of
service: show the classification of customers affected;
(c) Rates: list all rates offered;
(d) Minimum charge: state the amount of the
minimum charge, the quantity allowed (if volumetrically based), and if it is
subject to a late payment charge;
(e) Late payment charge: state the amount or
reference the tariff section containing the amount;
(f) Term: if a tariff provision or a contract
will be effective for a limited period, state the term; and
(g) Special rules: list special rules or
requirements that are in effect covering this tariff.
(3) Each rate schedule shall state the type
or classification of service available pursuant to the stated rates, by using
language similar to "available for residential lighting" or "available for all
purposes."
(4) For a tariff in
which a number of rate schedules are shown available for various uses, each
rate schedule shall be identified either by:
(a) A number in the format "Schedule No.
___"; or
(b) A group of letters,
with a designation indicating the type or classification of service for which
the rate schedule is available. (Example: Tariff R.S. for residential service
rates.)
(5) A tariff may
be further divided into sections.
Section 5. Filing Requirements.
(1) Each tariff filing shall include a cover
letter and conform to the requirements established in this subsection.
(a) With the exception of supporting
documents, which may be submitted in an Excel spreadsheet in.xls format, each
document shall be submitted in portable document format ("PDF") capable of
being viewed with Adobe Acrobat Reader.
(b) Each document shall be search-capable and
optimized for viewing over the internet.
(c) Each scanned document shall be scanned at
a resolution of 300 dots per inch (dpi).
(d) A document may be bookmarked to
distinguish different sections of the filing.
(2) A document shall be considered filed with
the commission if it has:
(a) Been
successfully transmitted using the commission's electronic tariff filing
system; and
(b) Met all other
requirements established in this administrative regulation.
Section 6. Tariff
Addition, Revision, or Withdrawal.
(1) A
tariff, tariff sheet, or tariff provision shall not be changed, cancelled, or
withdrawn except as established by this section and Section 9 of this
administrative regulation.
(2) A
new tariff or revised sheet of an existing tariff shall be issued and placed
into effect by:
(a) Order of the commission;
or
(b) Issuing and filing with the
commission a new tariff or revised sheet of an existing tariff and providing
notice to the public in accordance with Section 8 of this administrative
regulation and statutory notice to the commission.
(3) The following symbols shall be placed in
the margin to indicate a change:
(a) "(D)" to
signify deletion;
(b) "(I)" to
signify increase;
(c) "(N)" to
signify a new rate or requirement;
(d) "(R)" to signify reduction; or
(e) "(T)" to signify a change in
text.
Section
7. Tariff Filings Pursuant to Orders. If the commission has
ordered a change in the rates or rules of a utility, the utility shall file a
new tariff or revised sheet of an existing tariff establishing:
(1) The revised rate, classification, charge,
or rule;
(2) The applicable case
number;
(3) The date of the
commission order; and
(4) The
margin symbols required by Section 6(3) of this administrative
regulation.
Section 8.
Notice. A utility shall provide notice if a charge, fee, condition of service,
or rule regarding the provision of service is changed, revised, or initiated
and the change will affect the amount that a customer pays for service or the
quality, delivery, or rendering of a customer's service.
(1) Public postings.
(a) A utility shall post at its place of
business a copy of the notice no later than the date the tariff filing is
submitted to the commission.
(b) A
utility that maintains a Web site shall, within five (5) business days of the
date the tariff filing 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 tariff filing is available.
(c) The information required in
subsection (1)(a) and (b) of this section shall not be removed until the tariff
filing has become effective or the commission issues a final decision on the
tariff filing.
(2)
Customer Notice.
(a) If a utility has twenty
(20) or fewer customers, it shall mail a written notice to each customer no
later than the date the tariff filing 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 tariff
filing is submitted to the commission;
2. Mailing a written notice to each customer
no later than the date the tariff filing 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 tariff filing 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 tariff filing 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
established 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 tariff
filing 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 a 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;
(e) A
statement that a person may examine this tariff filing at the offices of
(utility name) located at (utility address);
(f) A statement that a person may examine
this tariff filing 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 this
tariff filing 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 the
initial publication or mailing of the notice, the commission may take final
action on the tariff filing.
(5) Compliance by electric utilities with
rate schedule information required by
807 KAR
5:051. Notice given pursuant to subsection (2)(a) or
(b) of this section shall substitute for the notice required by
807 KAR
5:051, Section 2, if the notice contained a clear and
concise explanation of the proposed change in the rate schedule applicable to
each customer.
(6) Periodic
recalculation of a formulaic rate that does not involve a revision of the rate
and that is performed in accordance with provisions of an effective rate
schedule, special contract, or administrative regulation does not require
notice in accordance with this section.
Section 9. Statutory Notice to the
Commission.
(1) The proposed rates on a new
tariff or revised sheet of an existing tariff shall become effective on the
date stated on the tariff sheet if:
(a) Proper
notice was provided to the public in accordance with Section 8 of this
administrative regulation;
(b)
Statutory notice was provided; and
(c) The commission does not suspend the
proposed rates pursuant to
KRS
278.190.
(2) All information and notices required by
this administrative regulation shall be furnished to the commission with the
filing of the proposed rate. If a substantial omission occurs, which is
prejudicial to full consideration by the commission or to the public, the
statutory notice period to the commission shall not commence until the omitted
information and notice is filed.
Section 10. Nonrecurring Charges. A utility
may revise a nonrecurring charge. The revision shall be performed pursuant to
this section and Sections 6 and 9 of this administrative regulation.
(1) Each request to revise a current
nonrecurring charge or to implement a new nonrecurring charge shall be
accompanied by:
(a) A specific cost
justification for the proposed nonrecurring charge, including all supporting
documentation necessary to determine the reasonableness of the proposed
non-recurring charge;
(b) A copy of
the public notice of each requested nonrecurring charge and verification that
it has been made pursuant to Section 8 of this administrative
regulation;
(c) A detailed
statement explaining why the proposed revisions were not included in the
utility's most recent general rate case and why current conditions prevent
deferring the proposed revisions until the next general rate case;
(d) A statement identifying each
classification of potential or existing customers affected by the rate
revision; and
(e) A copy of the
utility's income statement and balance sheet for a recent twelve (12) month
period or an affidavit from an authorized representative of the utility
attesting that the utility's income statement and balance sheet are on file
with the commission.
(2)
The proposed rate shall relate directly to the service performed or action
taken and shall yield only enough revenue to pay the expenses incurred in
rendering the service.
(3)
(a) If the revenue to be generated from the
proposed rate revision exceeds by five (5) percent the total revenues provided
by all nonrecurring charges for a recent period of twelve (12) consecutive
calendar months ending within ninety (90) days of submitting the tariff filing,
the utility shall, in addition to the information established in subsection (1)
of this section, file an absorption test.
(b) The absorption test shall show that the
additional net income generated by the tariff filing shall not result in an
increase in the rate of return (or other applicable valuation method) to a
level greater than that allowed in the most recent general rate case.
(c) As part of the absorption test, a general
rate increase received during the twelve (12) month period shall be
annualized.
(4) Upon a
utility submitting the tariff filing to the commission, the utility shall
transmit by electronic mail a copy in PDF to rateintervention@ag.ky.gov or mail
a paper copy to the Attorney General's Office of Rate Intervention, 1024
Capital Center Drive, Suite 200, Frankfort, Kentucky 40601-8204.
Section 11. Adoption Notice.
(1) A utility shall file an adoption notice
on Tariff Form-3 if:
(a) A change of ownership
or control of a utility occurs;
(b)
A utility or a part of its business is transferred from the operating control
of one (1) company to that of another;
(c) A utility's name is changed; or
(d) A receiver or trustee assumes possession
and operation of a utility.
(2) Unless otherwise authorized by the
commission, the person operating the utility business going forward shall
adopt, ratify, and make as its own the predecessor's rates, classifications,
and requirements on file with the commission and effective at the time of the
change of ownership or control.
(3)
An adoption notice may be filed and made effective without previous
notice.
(4) An adoption notice
filed with the commission shall be in consecutive numerical order, beginning
with Public Service Commission adoption notice No. 1.
(5) Within ten (10) days after the filing of
an adoption notice by a utility that had no tariff on file with the commission,
the utility shall issue and file in its own name the tariff of the predecessor
utility then in effect and adopted by it, or a tariff it proposes to place into
effect in lieu thereof, in the form established in Sections 2 through 4 of this
administrative regulation with proper identifying designation.
(6) Within ten (10) days after the filing of
an adoption notice by a utility that had other tariffs on file with the
commission, the utility shall issue and file one (1) of the following:
(a) A complete reissue of its existing tariff
that establishes the rates and requirements:
1. Of the predecessor utility then in effect
and adopted by the successor utility; or
2. The utility proposes to place into effect
for the customers served by the predecessor utility; or
(b) New or revised tariff sheets that
establish the rates and requirements:
1. Of
the predecessor utility then in effect and adopted by the successor utility;
or
2. The utility proposes to place
into effect for the customers served by the predecessor utility.
(7)
(a) If a new tariff or a revised sheet of an
existing tariff states the rates and requirements of the predecessor utility
without change, the successor utility shall not be required to provide notice
of the filing.
(b) If a new tariff
or a revised sheet of an existing tariff changes or amends the rates or
requirements of the predecessor utility, the successor utility shall provide
notice pursuant to
KRS
278.180 and Section 8 of this administrative
regulation.
Section
12. Posting Tariffs, Administrative Regulations, and Statutes.
(1) Each utility shall display a suitable
placard, in large type, that states that the utility's tariff and the
applicable administrative regulations and statutes are available for public
inspection.
(2) Each utility shall
provide a suitable table or desk in its office or place of business on which it
shall make available for public viewing:
(a) A
copy of all effective tariffs and supplements establishing its rates,
classifications, charges, rules, and requirements, together with forms of
contracts and applications applicable to the territory served from that office
or place of business;
(b) A copy of
all proposed tariff revisions that the utility has filed and are pending before
the commission and all documents filed in a commission proceeding initiated to
review the proposed tariff revisions;
(c) A copy of KRS Chapter 278; and
(d) A copy of 807 KAR Chapter 5.
(3) The information required in
subsection (2) of this section shall be made available in an electronic or
nonelectronic format.
Section
13. Special Contracts. Each utility shall file a copy of each
special contract that establishes rates, charges, or conditions of service not
contained in its tariff.
Section
14. Confidential Materials. A utility may request confidential
treatment for materials filed pursuant to this administrative regulation.
Requests for confidential treatment shall be made and reviewed in accordance
with
807 KAR 5:001,
Section 13(3).
Section 15.
Deviations from Rules. In special cases, for good cause shown, the commission
shall permit deviations from this administrative regulation.
Section 16. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Tariff Form-1", July
2013;
(b) "Tariff Form-2", July
2013; and
(c) "Tariff Form-3",
Adoption Notice, July 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
278.160(1)