Iowa Admin. Code r. 199-20.21 - Transmission cost adjustment (TCA)
(1)
Transmission cost
adjustment. Pursuant to Iowa Code section
476.6(8)"b," public utilities may automatically adjust rates
and charges to recover transmission-related costs incurred by or charged to the
public utility consistent with a tariff or agreement that is subject to the
jurisdiction of the Federal Energy Regulatory Commission, provided that a
schedule showing the automatic adjustment of rates and charges is first filed
with and approved by the board. Transmission cost adjustments shall be computed
and tracked separately for each customer classification or grouping previously
approved by the board and shall use the same unit of measure as the utility's
tariffed rates. Changes in the customer classification and grouping on file are
not automatic and require prior approval by the board. If any eligible cost is
recovered outside of the TCA, the cost may not be recovered through the TCA
until the cost is removed from its current recovery mechanism. If any eligible
cost is recovered outside of the TCA, the cost may not be recovered through the
TCA until the cost is removed from base rates during a utility's rate case. The
TCA factor shall be included as a separate line item on the customer's
bill.
(2)
TCA annual
factor. An annual TCA factor update shall be filed as a TF docket at
least 30 days prior to the beginning of the utility's TCA year. The TCA update
shall include information describing which eligible TCA costs are being
recovered through the TCA and, if not recovered through the TCA, where eligible
costs are being recovered. The annual TCA factors for each customer
classification or grouping shall be based upon forecasted transmission costs
allocated to Iowa retail customers, forecasted Iowa sales or demand, and
allocation factors approved by the board. The forecasted allocation factors
shall be based on a three-year average of the actual allocation factors for
each of the three previous calendar years. For customers billed by
kilowatt-hours, the factors shall be developed on a kilowatt-hour basis. For
customers billed by kilowatt, the factors shall be developed on a kilowatt
basis. In addition, the following is required to be included with this filing:
a. A listing of all transmission costs that
are incurred by or charged to the public utility and are consistent with a
tariff or agreement that is subject to the jurisdiction of the Federal Energy
Regulatory Commission, detailing where each transmission cost is currently
being recovered (e.g., base rates, TCA).
b. A time series chart of each transmission
cost eligible for inclusion in the TCA for the previous three calendar years.
(3)
Annual
reconciliation. Within four months after the effective date of annual
TCA factors, a utility shall file an annual reconciliation based upon actual
costs and revenues attributed to Iowa customers for the prior calendar year.
The annual reconciliation shall be filed in the same TF docket identified for
the annual filing required in subrule 20.21(2). The reconciliation shall
include updated allocators for each customer classification or grouping based
on actual load data from the prior calendar year. The actual costs for the
prior calendar year shall be allocated to each customer class based upon the
updated allocation factors. The utility shall compare the actual transmission
costs allocated to each customer class with the actual revenue billed through
the TCA by customer class net of the prior year's reconciliation dollar amount
for each customer class. Any resulting overcollection or undercollection for
each class shall be divided by the forecasted sales or demand for each customer
class for the remainder of the TCA period. The resulting adjustments shall be
added to the effective TCA factors which were approved in the TCA annual factor
filing under subrule 20.21(2). The adjusted TCA factor for customers billed by
kilowatt-hours shall be developed on a kilowatt-hour basis, and for customers
billed on a kilowatt basis, the adjusted TCA factor shall be developed on a
kilowatt basis.
(4)
Other
adjustments to the TCA factor. A utility may propose other adjustments
to the TCA factor throughout the 12-month TCA period to assist with accurate
recovery of forecasted costs and revenues, subject to board approval. Any
midyear adjustments shall be filed in the same TF docket as the annual filing.
If a utility proposes an adjustment to the TCA factor, other than the
reconciliation required in subrule 20.21(3), the utility shall provide an
explanation for the proposed adjustment and provide information to support the
proposed adjustment. For any customer billed by kilowatt-hours, the proposed
adjustment shall be developed on a kilowatt-hour basis. For any customer billed
on a kilowatt basis, the proposed adjustment shall be developed on a kilowatt
basis.
(5)
Quarterly
informational filings. By the end of the month following the end of
each calendar quarter, the utility shall file a report containing, at minimum,
the current cumulative overcollection or undercollection balance, support for
the overcollection or undercollection calculation, the total transmission cost
for the current calendar year by category, and the supporting invoices and
documentation for the most recent calendar quarter. The reports shall be filed
in the same TF docket as the annual TCA filing.
(6)
Semiannual transmission
reports. Each year at the beginning, and midpoint of a utility's TCA
year, each utility shall file a report detailing the utility's
transmission-related activities. These reports shall detail the utility's
recent efforts to mitigate transmission costs and influence policy to the
benefit of the utility and its ratepayers.
(7)
Midcontinent Independent System
Operator, Inc. (MISO) refunds. Any utility utilizing a TCA mechanism
that receives transmission-related refunds from MISO shall file a refund plan
for board approval, detailing how the utility will distribute the refund to
customers. The refund plan must be filed once the amount and timing of the
refund is known to the utility. The refund plan shall include an applicable
interest rate for refund amounts held more than 30 days, the method of
distributing the refund to customers, and the timing of distributing the refund
to customers.
Notes
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