Iowa Admin. Code r. 199-26.11 - Rate proceedings for small utilities
For purposes of this rule, a small utility shall mean a utility subject to rate regulation that serves fewer than 10,000 customers. A small utility that has had a rate case before the commission within the past ten years shall be eligible to file an application for a rate increase under this rule no more frequently than once every 24 months.
(1) At least 60 days prior to filing an
application under this rule, a utility shall participate in a public technical
conference with commission staff and the consumer advocate at which the utility
shall provide an overview of its planned rate increase application.
(2) A utility filing under this rule is
subject to the notice requirements of subrule 26.4(1) and the temporary rate
provisions of subrule 26.4(3).
(3)
A utility's filing under this rule will take the form of a proposed tariff with
a 30-day effective date along with supporting testimony and exhibits. The
commission will docket the proposed tariff for further review.
(4) A utility shall file information showing
the revenue requirement and revenue deficiency for Iowa jurisdictional
operations, a template for which can be found on the commission's website at
iuc.iowa.gov. If the utility is applying for a gas
rate increase, the utility shall file information utilizing the weather
normalization model preferred by the commission, which is available on the
commission's website.
(5) The
filing shall be based upon the following assumptions:
a. Adjustments to book values shall be
limited to 400 series accounting entries that are required to be excluded from
rates.
b. Return on equity (ROE)
will be based on ROEs approved for utilities by the commission in the prior 24
months, or if the commission has not approved an ROE in the past 24 months, the
utility shall use the average of the ROEs approved by other jurisdictions for
the same utility service for the year preceding the date of filing, provided
there was a minimum of five such approvals. If there was not a minimum of five
such approvals, the commission may extend the one-year period as necessary to
increase the number of approvals to five or more, or may make such other
provision of ROE as the commission may determine to be just and
reasonable.
c. Utility and parent
capital structures will be the same as those approved in the utility's last
rate case.
(6) The
proposed overall rate increase will be applied uniformly to all rates and
charges so that no changes in class cost-of-service allocations
occur.
(7) No new rates, charges,
or riders shall be proposed.
(8)
The commission establishes a rebuttable presumption that rate case expense in
excess of $150,000 for a filing under this rule is unreasonable.
(9) The recovery mechanism for rate case
expense shall be determined by the commission. Recovery may be through base
rates, by means of a rider, or otherwise. The applicable recovery period will
be determined in the rate proceeding. Recovery through a rider will end once
the expense is fully recovered.
(10) The commission shall issue an order
granting, modifying, or rejecting the proposed rate increase within 90 days of
the tariff required in subrule 26.11(3).
Notes
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