The board may evaluate a utility's management efficiency
based upon the utility's particular circumstances and considering a range of
factors that may differ among utilities. In evaluating a utility's management
efficiency, the board may consider any of the factors listed in subrule 29.3(1)
and any additional relevant factors. No single factor will be deemed conclusive
evidence of efficiency or inefficiency. In performing the evaluation, the board
may collect data to compare a utility to other rate-regulated utilities
providing the same service within the state of Iowa. The board may consider
data for time periods outside a rate case test year.
(1)
Factors.
The board may consider the following factors:
a. The price per unit of service (including
amounts collected subject to refund) by customer class and type of
service.
b. Operation and
maintenance costs per unit of service. Low operations and maintenance costs may
not support a finding of efficiency if quality of service is
substandard.
c. Quality of service,
as reflected in objective measures of service quality, customer complaints
shown in company and board records, findings made in complaint proceedings,
penalties assessed, and measures of customer satisfaction.
d. Customer mix.
e. The total compensation for each officer of
the utility.
f.The company's bad
debt ratio.
g. Innovative practices
implemented by utility management that result in improved service or that
control costs.
h. Geographic
service territory.
i. Economic
conditions in the areas served.
j.
Weather patterns and disasters.
(2)
Electric utilities. When
evaluating an electric utility, in addition to considering the factors listed
in subrule 29.3(1), the board may consider factors specific to electric
utilities including the following:
a. Fuel
cost per kwh.
b. Availability for
each generating unit with 2,000 or more service hours per year.
c. Companywide load factor.
d. Development and implementation of energy
efficiency programs.
(3)
Natural gas utilities. When evaluating a natural gas utility,
in addition to considering the factors listed in subrule 29.3(1), the board may
consider factors specific to natural gas utilities including the following:
a. Total cost per unit of gas purchased from
a pipeline (to be considered separately from operations and maintenance
costs).
b. Total cost per unit of
gas purchased from other sources (to be considered separately from operations
and maintenance costs).
c.
Residential and commercial sales volume in relation to investment in the system
(rate base).
d. Unaccounted-for gas
as a percentage of total sales volume.
e. Development and implementation of energy
efficiency programs.