Current through Register Vol. 35, No. 18, September 24, 2024
In addition to the requirements of Section 15 of this rule,
base period, adjusted base period, linkage data and future test year period
results and expectations shall be presented as set forth in this section. If
budget estimates are used, the results and expectations shall be presented by
cost center and elements of cost. In addition, the base period, the adjusted
base period, the linkage data and the future test year period shall be
presented by cost categories in at least the following detail set forth in this
section.
A.
Revenues.
Revenues shall be detailed by the accounts prescribed in the applicable
commission rate classes by month. The utility shall also provide a breakdown of
sales revenue by service classification and related volumes. For electric,
water and sewer utilities, as has been the history in New Mexico, base period
revenue shall not be weather normalized.
B.
Operating expenses.
Operation and maintenance expenses shall be broken down at least by USOA
accounts and elements of cost, on both a total company and jurisdictional
basis. In providing linkage data, the utility shall provide summary information
using the future test year period jurisdictional allocators to provide a
reasonable approximation of jurisdictional amounts for appropriate comparison
purposes.
(1) The USOA accounts shall be
further subdivided to the level necessary to identify the appropriate cost
drivers and adequately demonstrate where the variations between base period and
future test year period occur.
(2)
Each subdivision-level estimate shall then be detailed into elements of
cost.
(3) Any expenses for which
the utility is not seeking recovery or which are excluded from recovery by the
commission's data rules or commission order shall be clearly
identified.
(4) Depreciation,
operating taxes and income taxes shall be detailed in schedules breaking these
items down into sufficient detail to be useful for making
projections.
C.
Rate base. Rate base shall be presented on both a total company and
jurisdictional basis.
(1) For a future test
year period that begins at least 12 months after the end of the base period,
the average rate base shall be used, utilizing the projected 13-month average
of the future test year period. In providing linkage data, the utility shall
provide summary information using the future test year period jurisdictional
allocators to provide a reasonable approximation of jurisdictional amounts for
appropriate comparison purposes.
(2) Rate base shall be shown in the detail
required by the commission's data rules for base period
presentations.
(3) Major plant
additions and retirements from the end of the base period shall be separately
identified, indicating actual or estimated in-service dates.
D.
Cost of capital.
(1) The required information shall be
supplied at least for the base period, the linkage data, the future test year
period and the adjusted base period.
(2) There shall also be comparable data for
two subsequent calendar years; for example, if the future test year period
ended December 31, 2010, projections shall be made for calendar years 2011 and
2012 ("forward-looking data").
(a) If the
utility determines the forward-looking data needs to be protected to comply
with SEC requirements, the filing shall clearly state the utility has made this
determination.
(b) The
forward-looking data shall be provided by the utility in discovery if requested
to persons who have signed a confidentiality agreement in accordance with the
protective order.
(3) To
ensure that a complete and useful record is compiled, the following information
shall be submitted at the time of the filing:
(a) estimated short-term debt balances and
available lines of credit;
(b)
external financing requirements, including:
(i) projected issues of debt; and
(ii) preferred and common equity, including
sources such as dividend reinvestment and employee stock purchase plans as well
as public offerings; and
(c) projected capitalized ratios and a
statement of the utility's objectives.
(4) The equity and debt amounts for the
future test year period shall be based upon an average calculated in the same
manner as the rate base.
(5)
Estimates of interest and preferred dividend coverages shall be computed in
accordance with the applicable bond indenture or certificate of
incorporation.
(6) The computations
of ratios of earnings to fixed charges (or earnings to fixed charges and
preferred dividends) normally found in SEC registration statements for public
security issues shall be included.
