Rules & Regulations of the State of Tennessee
Title 1220 - Tennessee Public Utility Commission
Subtitle 1220-04 - Division of Public Utilities
Chapter 1220-04-14 - Utility Acquisitions
Section 1220-04-14-.04 - ACQUISITION ADJUSTMENT

Universal Citation: TN Comp Rules and Regs 1220-04-14-.04

Current through September 24, 2024

(1) The Commission may order an acquisition adjustment to be incorporated into the acquired rate base if the Commission determines such adjustment is warranted under the circumstances and will not result in unjust or unreasonable rates and charges for the acquiring utility or for customers.

(2) The Commission may consider the following factors when determining whether any acquisition adjustment should be incorporated into the acquired rate base:

(a) Cost savings or increases resulting from consolidation of the selling utility's system into the acquiring utility's operations;

(b) Improvements in public utilities services resulting from the acquisition;

(c) Remediation of public health, safety and welfare concerns of the selling utility's system resulting from the acquisition;

(d) Incentives for acquisition of a financially or operationally troubled system, which may be demonstrated by bankruptcy, receivership, financial distress, notice of violation, order of abatement, or inability to continue as a going concern of the selling utility;

(e) Amount of any assets contributed or donated to the selling utility included in the proposed acquisition transaction; and

(f) Any other measurable benefits, costs, or service changes affecting acquired and/or existing customers resulting from the acquisition.

(3) The Commission shall allow the acquiring utility to amortize any acquisition adjustment incorporated into the acquired rate base over a reasonable period of time not to exceed 20 years.

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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