Every rate-regulated public utility equaling or exceeding the
filing threshold in any calendar year shall file with the board a cost allocation
manual on or before September 1 of the following year; however, a letter so
stating may be filed if the utility has not changed its cost allocation manual
since the last filing. In the event the utility has made only minor changes to
its manual to reflect new accounts or new affiliates or has modified language,
the utility may file only the pages affected together with a cover letter
explaining the pages being filed. A utility excused from filing a cost allocation
manual for any of the foregoing reasons must comply with the other requirements
of this rule.
(1)
Contents of
manuals. Each cost allocation manual shall contain the following
information:
a.
Nonutility
services. A list, the location, and a description of all nonutility
services.
b.
Incidental
activities. A summary of incidental activities conducted by the
utility.
c.
Resource
identification. An identification of the assets and expenses involved
directly or indirectly, in whole or in part, in the provision of nonutility
services as identified in subrules 33.4(1) and 33.4(2).
d.
Allocation methodology. A
description of the cost allocation methodology, including an overview,
explanation, and justification of the details provided in response to paragraphs
33.5(1)"e" through "h" below.
e.
Allocation rationale. A
statement identifying, for each asset and expense account and subaccount
identified in compliance with subrules 33.4(1) and 33.4(2), the basis for
allocating costs in the account or subaccount to utility and nonutility
operations, including any allocation factor used by the utility for this
purpose.
f.
Accounts and
records. A description of each account and record used by the utility
for financial recordkeeping for nonutility services, including all
subaccounts.
g.
Allocation
factors. A paragraph containing, for each allocation factor identified
in compliance with paragraph 33.5(1)"e," an explanation of how
the allocation factor is calculated, a description of each study and analysis
used in developing the allocation factor, and the frequency with which each
allocation factor is recalculated.
h.
Time reporting methods. A paragraph indicating the type of time
reporting (positive, exception, or study) used for each reporting organization
(e.g., executive, residential sales, and external affairs) and providing a
description of how the identified type of time reporting is performed in that
reporting organization.
i.
Training. A description of the training programs used by the utility to
implement and maintain its cost allocation process.
j.
Update process. A
description of the procedures used by the utility to:
(1) Determine when an update is
needed;
(2) Develop the update;
and
(3) Provide the update to the
board.
(2)
Annual filing and acceptance of manuals. The following procedure
is used for the annual filing and acceptance of manuals.
a.
Notice. At the time of the
initial filing and whenever a manual is updated, each utility mails or delivers a
written notice to consumer advocate, local trade associations, and customers who
have notified the utility in writing of their interest in the cost allocation
manual. The notice will state that an objection may be filed with the board
within 60 days of the filing of the manual with the board. The utility shall
promptly provide copies of the manual upon request.
b.
Docketing. If the board
finds that reasonable grounds exist to investigate the manual, the board will
docket the filing for investigation. At the time of docketing, the board will set
a procedural schedule that includes a date for an oral presentation and an
opportunity to file comments. If the board finds that there is no reason to
investigate, the board will issue an order stating the reasons for the board's
decision within 90 days of the date of filing.
c.
Acceptance of manuals. The
board may accept, reject, or modify a utility's manual. However, any board
decision is for accounting purposes only and is not binding in any other
proceeding.
(3)
Updating of manuals. All affected sections and pages of a
utility's manual are updated and filed with the board within 60 days of any of
the following conditions:
a. A new nonutility
business is commenced or acquired, or an existing nonutility business is
eliminated or divested;
b. An
affiliate relationship changes;
c.
Operations affecting nonutility businesses change sufficiently to warrant a new
allocation method; or
d. Accounting
practices change.
(4)
Reporting requirements-accounting tables. Companies filing cost
allocation manuals shall include in their annual reports tables showing for each
account identified in compliance with subrules 33.4(1) and 33.4(2) the following:
(a) the account total;
(b) the amount allocated to nonutility
services;
(c) the amount allocated to
utility services; and
(d) the value of
the allocation factors used to allocate costs to utility and nonutility services.
Such tables are to be accompanied by a signed statement by an officer of the
utility and an independent auditor certifying that, for the year covered by the
report, the utility has complied with its cost allocation manual and that the
data reported fairly reflect the actual operations of the
utility.
Notes
Iowa Admin. Code r. 199-33.5
Amended by
IAB
February 14, 2018/Volume XL, Number 17, effective
3/21/2018
Amended by
IAB
December 28, 2022/Volume XLV, Number 13, effective
2/1/2023
Adopted by
IAB
March 6, 2024/Volume XLVI, Number 18, effective
4/10/2024