Current through Register Vol. 18, September 20, 2024
(1)
Two simplified regulatory treatment options are available to a small water or
sewer utility that allow it to propose rates by a method other than filing a
rate application in accordance with the minimum rate case filing standards of
ARM
38.5.101,
et seq. Option (b) is only available to establish a utility's initial tariff
rates with the commission; a utility that has previously had rates on file with
the commission is not eligible for this rate. The options are:
(a) filing an operating ratio rate
application in accordance with the operating ratio methodology as described in
ARM
38.5.2529;
or
(b) filing a standard rate
application requesting adoption of the Montana Department of Natural Resources
and Conservation's most recent water and sewer rate study's monthly water
average and/or monthly wastewater average for populations less than
500.
(c) filing a rate application
requesting adoption of the Montana Department of Natural Resources and
Conservation's most recent water and sewer rate study's monthly water average
and/or monthly wastewater average for populations less than 500.
(2) A small water or sewer utility
is not required to elect any of the simplified regulatory treatment options. It
may elect to file a rate application in accordance with ARM 38.5.101, et
seq.
(3) If a utility's election of
either of the two simplified regulatory options described in ARM
38.5.2527(1)(a) or (1)(b) would result in increased rates to customers, it may
request, or the commission may require the utility to implement the rates in
increments over a reasonable time period.
(4) A simplified regulatory treatment option
rate application shall contain, at a minimum, the following information:
(a) The full legal name and title of the
owner of the utility, its principal place of business and mailing address, the
date that it began providing service to customers, and contact information
(i.e., name, address, telephone number and email) of the individual(s)
representing the utility before the commission;
(b) A detailed description of the utility
system and its potential for expansion, including the number of wells, feet of
main, and filtration system;
(c) The
total number of existing water service connections and meters and existing
sewer service connections and meters, and the billing frequency for each type
of service;
(d) The total number of
potential water service connections and meters and potential sewer service
connections and meters;
(e) The
number of existing and potential multi-residence dwellings (e.g., apartments or
condos) served by a single service connection or meter, and the number of units
in each multi-residence dwelling;
(f) The current rates being charged for each
type of service, when the current rates went into effect, and whether the
current rates have been approved by the commission;
(g) The rates proposed for each type of
service;
(h) If known, the date that
utility assets were first placed in service, the date of any sales or transfers
that have occurred since utility assets were first placed in service, and the
full legal name and title of any previous owner(s);
(i) In the event that the utility is not a
new utility, two years of income statements and balance sheets, separately for
water and sewer utilities, indicating how these statements were prepared (i.e.,
cash basis or accrual basis) and who prepared them;
(j) In the event that the utility is not a
new utility, a list of any revenue generated during the two years referenced in
(i) from sources other than the rates charged to customers, including the
source and amount of revenue;
(k) In
the event that a utility is not a new utility, a list of each transaction that
occurred with an affiliate or related party during the two years referenced,
involving more than $750, the amount paid, service(s) provided, and
counterparty;
(l) If a utility is
requesting the standard rate tariff, it must file an annual report with the
commission; if the utility is requesting the operating ratio tariff, it must
file a copy of each annual report for the last three calendar years;
(m) Copies of any water rights owned or
leased by the utility, percentage usage of the available water right, and any
documentation from the Department of Natural Resources and Conservation
involving water right usage or violations;
(n) An affidavit from an owner or manager of the
utility attesting to the accuracy of the information provided;
(o) The original cost of utility plant in
service, an accounting of any capital improvements made, the amount of
depreciation that has been taken on plant in service, and the depreciation
schedule(s) used for the different utility asset accounts; and
(p) A complete copy of the information
regarding the utility's financial capacity that the utility provided to the
Montana Department of Environmental Quality as part of that agency's public
water system review process.
(5) Minimum filing requirement forms are
available from the commission upon request or on the commission's web site at
www.psc.mt.gov.
(6) The commission will determine whether a
simplified regulatory treatment option application satisfies the minimum filing
requirements in (4)(a) through (p) of this rule, no later than 30 days after it
is received by the commission. If the commission determines that the rate
application satisfies the minimum filing requirements, it will notice the
public for comment or protest.
(7)
The commission may deny a rate application requesting simplified regulatory
treatment or only grant it in part if the commission determines, based on
comments or protest that it would be unjust or unreasonable to allow simplified
regulatory treatment or approve the rates proposed by the utility.
(8) A small water or sewer utility's
simplified regulatory treatment tariffs may be revoked if the utility is not in
compliance with the commission's annual report requirement.
AUTH:
69-2-101,
69-3-103,
69-3-301,
MCA; IMP:
69-2-101,
69-3-103,
69-3-301,
MCA
