Pennsylvania Code
Title 52 - PUBLIC UTILITIES
Part I - Public Utility Commission
Subpart C - Fixed Service Utilities
Chapter 69 - GENERAL ORDERS, POLICY STATEMENTS AND GUIDELINES ON FIXED UTILITIES
INCLUSION OF STATE TAXES AND GROSS RECEIPTS TAXES IN BASE RATES
Section 69.55 - Inclusion of State taxes in base rates
Current through Register Vol. 54, No. 38, September 21, 2024
Compliance with § 69.53 (relating to zeroing of State tax adjustment surcharge) or § 69.54 (relating to zeroing of gross receipts tax rider) shall be accomplished in one of the following manners:
(1) Rate case method. If a utility has on file a State tax adjustment surcharge or gross receipts tax rider at a rate other than zero, the State tax adjustment surcharge and gross receipts tax rider shall be zeroed and the tax expense recovered by the surcharge and rider shall be rolled into base rates in the next general rate increase filed by the utility. If the utility files a cost of service study with its proposed rate increase, the tax expense previously recovered through the surcharge and rider shall be allocated to the various classes of service in a manner consistent with the cost of service study. If a cost of service study is not provided with the rate filing, the surcharge and rider revenues shall be rolled into base rates by applying the same percentage rate to each class of service so that there will be no effective change in total revenues recovered from each service classification as a result of the roll-in.
(2) Nonrate case method. The State tax adjustment surcharge and gross receipts tax rider shall be zeroed, and the tax expenses recovered through application of the surcharge and rider shall be rolled into base rates by filing a tariff or tariff supplement and supporting data on 60-days' statutory notice to the Commission. The transfer of revenues to base rates shall be accomplished so that there will be no effective change in total revenues recovered from each service classification as a result of the roll-in. The supporting data shall include calculations showing the development of the new tariff rates as well as the revenues which they will produce on an annual basis. Customers shall be advised of the roll-in of the surcharge and rider revenues by bill insert to be mailed during the normal monthly or quarterly billing cycle.
The provisions of this §69.55 issued under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); and 52 Pa. Code § 69.51 (relating to definitions).
