Iowa Admin. Code r. 199-33.4 - Costing methodology
Costs shall be allocated between utility and nonutility operations using fully distributed cost consistent with this rule. The utility shall do the following:
(1)
Cost causation for utility assets. Identify for each asset
utilized directly or indirectly, in whole or in part, in the provision of
nonutility services:
a. The type of
asset;
b. The use of the
asset;
c. The proportional
utilization of the asset between utility operations and nonutility operations;
and
d. The characteristics of the
asset that allow proper allocation.
(2)
Cost causation for utility
expenses. Identify for each expense account wherein any expense
related, directly or indirectly, to the provision of nonutility services is
recorded:
a. The function causing the expense
to be incurred;
b. The procedure
used in performing the function;
c.
The proportional utilization of the function between utility operations and
nonutility operations; and
d. The
characteristics of the cost that allow proper allocation.
(3)
Time reporting. Use
positive time reporting whenever possible; when it is not possible, exception
time reporting or study time reporting may be used. Allocate nonproductive work
time between utility and nonutility operations in proportion to the allocation
of productive work time.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
Costs shall be allocated between utility and nonutility operations using fully distributed cost.
(1) Cost causation for utility assets. Each utility shall identify for each asset utilized directly or indirectly, in whole or in part, in the provision of nonutility services:
(a) the type of asset;
(b) the use of the asset;
(c) the proportional utilization of the asset between utility operations and nonutility operations; and
(d) the characteristics of the asset that allow proper allocation.
(2) Cost causation for utility expenses. Each utility shall identify for each expense account wherein any expense related, directly or indirectly, to the provision of nonutility services is recorded:
(a) the function causing the expense to be incurred;
(b) the procedure used in performing the function;
(c) the proportional utilization of the function between utility operations and nonutility operations; and
(d) the characteristics of the cost that allow proper allocation.
(3) Time reporting. Positive time reporting shall be used whenever possible. In situations where positive time reporting cannot be used, exception time reporting or study time reporting may be used. Nonproductive work time shall be allocated between utility and nonutility operations in proportion to the allocation of productive work time.