W. Va. Code R. § 150-4-2 - Authorization, Application, Definitions, and Records, Reports and Other Information to be Supplied to the Commission

2.1 Authorization of rules.

2.1.1. These rules are intended to define good operating practices, which can normally be expected.

2.1.2. They are intended to ensure adequate service and to prevent unfair charges to the public, and to protect the utilities from unreasonable demands.

2.1.3. The adoption of these rules shall in no way preclude the Public Service Commission from altering or amending them in whole or in part, or from requiring any other additional service, equipment, facility, or standard either upon complaint or upon its own motion, or upon the application of any utility.

2.1.4. These rules shall not relieve in any way a utility from any of its duties under the laws of this State.

2.2. Application of rules.

2.2.1. These rules apply to public utilities as defined in Rule 2.3.11.

2.2.2. If hardship results from the application of any rule herein prescribed, or if unusual difficulty is involved in immediately complying with any rule, application may be made to the Commission for the modification of the rule or for temporary or permanent exemption from its provisions: Provided, that no utility shall submit application for such modification or exemption without submitting therewith a full and complete justification for such action.

2.3. Definitions.

2.3.1. Commission -- Whenever in these rules the words "Commission" or "Public Service Commission" occur, such word or words shall, unless a different intent clearly appears from the context, mean the Public Service Commission of West Virginia.

2.3.2. Company service -- The term "company service" shall mean the utility's pipe and appurtenances which connect any gas main in a public highway, street, alley or private right-of-way with the inlet connection of a customer's service piping at or near the property line, right-of-way, or easement line. The company service piping shall be installed at the utility's expense, regardless of the side of the road on which the customer is located in reference to the main.

2.3.3. Cubic foot of gas -- The term "cubic foot of gas" or "cubic foot" shall have the following meanings:

2.3.3.a. Testing -- For the purpose of testing gas under these rules, a cubic foot of gas shall be that amount of gas which occupies a volume of one (1) cubic foot when saturated with water vapor at a temperature of sixty (60) degrees Fahrenheit and an absolute pressure equal to thirty (30) inches of mercury at thirty-two (32) degrees Fahrenheit.

2.3.3.b. Distribution pressure measurement -- For the purpose of measurement of gas at standard distribution pressure, a cubic foot of gas shall be the amount of gas which occupies a volume of one (1) cubic foot under the conditions existing in the customer's meter where installed.

2.3.3.c. High or intermediate pressure measurement -- In cases where gas is supplied through orifice or other type meters at other than standard distribution pressure, a cubic foot of gas shall be that volume of gas which, at an absolute pressure of 14.73 pounds per square inch, occupies a volume of one (1) cubic foot. The temperature of the gas shall be determined and corrected to sixty (60) degrees Fahrenheit where necessary and practical. This definition of cubic foot of gas does not affect contract or other provisions.

2.3.4. Customer -- The word "customer" used in these rules shall mean any person, group of persons, firm, corporation, institution, municipality or other service body who purchases gas, service or facilities by a gas utility.

2.3.5. Customer service piping -- The term "customer service piping" shall mean the segment of the piping extending from a point at the property line, right of way or easement line to the inlet of the meter serving the customer, where the meter is not located at the property line, right of way or easement line.

2.3.6. Customer buried piping -- The term "customer buried piping" shall mean the underground piping, if any, between the outlet of the meter and the outside of the customer's foundation.

2.3.7. High or intermediate pressure distribution system -- A "high or intermediate pressure distribution system" shall mean one in which the gas in the mains is maintained at a pressure higher than standard distribution pressure.

2.3.8. House piping -- The term "house piping" shall mean the piping and fittings extending from the outside of the customer's foundation to the customer's gas appliances. The customer shall furnish, install and maintain the house piping in accordance with the utility's safety requirements for such installation as set forth in the utility's tariff as required pursuant to Rule 8.3, infra.

2.3.9. Low pressure distribution system -- "A low pressure distribution system" shall be that portion of the utility's system in which standard distribution pressure is maintained, and from which the gas is introduced from the mains into the customer service or house piping without passing through a pressure regulating device.

2.3.10. Main -- The term "main" shall mean the pipe of any utility's gas system, located in a public highway, street, alley, or private right-of-way, and used to transport gas.

2.3.11. Public utility -- Except where a different meaning clearly appears from the context, the word or words "utility" or "public utility" when used in these rules and regulations shall mean any person or persons, or association of persons, however associated, whether incorporated or not, including municipalities engaged in the business of producing, furnishing, transporting, distributing or selling gas for light, heat or other purposes which are now or may hereafter be held to be a public service.

2.3.12. Standard distribution pressure -- "Standard distribution pressure" shall be the distribution pressure established by the utility under the requirements of Rule 7.3.

2.4. Records and reports.

2.4.1. Preservation of records -- All records required by these rules shall be preserved by the utility in accordance with the "Regulations to Govern the Preservation of Records of Electric, Gas and Water Utilities" as prescribed by the National Association of Regulatory Utility Commissioners adopted by the Commission in its General Order No. 117-C of September 25, 1972, and effective December 1, 1972, except, as they may be hereinafter modified. No such record shall be destroyed without Commission approval. (NOTE: These regulations are published in separate pamphlet form and will be furnished upon request).

2.4.2. Location of records -- Such records shall be kept at the office or offices of the utility, and shall be open at all reasonable hours for examination by the Commission or its representative, or by others authorized by the Commission.

2.4.3. Reports to Commission

2.4.3.a. Each utility shall, at such times and in such form as the Commission may prescribe, report to the Commission the results of any test or tests required to be made or the information contained in any records required to be kept by the utility.

2.4.3.b. Each utility shall furnish to the Commission any information in its possession, respecting its rates, charges, or practices which may from time to time be required by the Commission, and without formal order of the Commission.

2.4.3.c. Special reports -- Each utility shall submit to the Commission duplicate copies of routine reports made by it to the Federal Energy Regulatory Commission pertaining to any phase of its business as a gas utility in West Virginia.

2.5. Filing of rate schedules.

2.5.1. Filing required -- No rules and regulations, or schedules of rates or charges, or modification of the same, shall be effective until filed with the Commission as provided by law.

2.5.2. Where filed -- Copies of all schedules of rates and other charges, and copies of all rules and regulations, covering the relation of customer and utility, shall be filed by every utility in the office of the Commission.

2.5.3. Manner of filing -- Tariffs containing all the rates, rules and regulations of each utility shall be filed in the manner prescribed by the Commission in "Rules for the Construction and Filing of Tariffs," and such other amendments or modifications that may hereinafter be adopted.

2.5.4. Forms for filing -- The Commission will, upon application, furnish proper blanks to be used for the filing of tariffs and any changes thereof and additions thereto.

2.5.5. Utility's special rules -- A utility desiring to establish any rule or requirement supplementing the rules of the Commission shall first make application to the Commission for authority for such rule or rules, clearly stating in its application the reason for such establishment.

2.6. Financial and statistical report.

2.6.1. Every utility shall file annually a financial and statistical report upon forms to be furnished by the Commission. Said report shall be based upon the accounts set up in conformity with the Commission's order and rule as set out in Rule 2.7. This report shall be filed on or before March 31st of each year, or at such date as the Commission may direct.

2.6.2. Each utility shall file, monthly, gas statistical reports upon forms to be furnished by the Commission. This report shall be filed not later than forty-five (45) days following the period covered by the report.

2.6.2.a. In reporting all gas volumes on statistical reports (Form furnished by the Commission), measurement made at pressure above normal distribution pressure shall be adjusted to a pressure base of 14.73 pounds per square inch absolute. This applies to produced, purchased, storage, and sales measurements.

2.7. Uniform system of accounts -- All gas utilities are required to maintain their books and records in accordance with the "Uniform System of Accounts" promulgated by the Federal Power Commission (now the Federal Energy Regulatory Commission) as published in Title 18 CFR Parts 201 and 204, and in effect as of January 1, 1977.

2.8. Maps and records.

2.8.1. Each utility shall keep on file suitable maps, plans, and records showing the entire layout of producing field or fields, and of each compressing or boosting station, with the location, size and character of each piece of plant equipment, pipelines, connections and other facilities used in the production and transmission of gas. Each utility shall keep similarly complete maps, plans, or records of the entire distribution system showing the size, character and location of each main, district regulator, street valve and drip, and each service connection, together with such other information as may be necessary.

2.8.2. The maps, plans and records required by the provisions of this rule shall be kept up-to-date so that the utility can furnish promptly and accurately any information regarding its facilities, or copies of its maps requested by the Commission.

2.8.3. Each gas utility shall file with the Commission a map or maps showing the lines in its system which it designates and operates as transmission lines. The utility shall, on or before April 1st of each year, file a new map; recall, revise and resubmit its old map, or advise the Commission, in writing, that no changes to the transmission lines have been made during the year.

2.9. Management audits.

2.9.1. Scope -- To establish a procedure for examination of management practices and policies to determine whether the entity being audited is operating with efficiency and utilizing sound management practices. The purpose of a management audit is to disclose operating areas that are efficient or inefficient, to identify areas for improvement, and to form recommendations for changes. The results of a management audit and the response of the utility to the recommendations and implementation plans developed pursuant to a management audit may be a factor in determining just and reasonable rates, as set out herein.

2.9.2. Types of management audits -- The following types of management audits, which vary in scope, may be directed and utilized by the Commission.

2.9.2.a. Comprehensive -- An investigation characterized by an extensive, detailed analysis of a utility's management and operations.

2.9.2.b. Reconnaissance -- A broad review, similar in scope to a comprehensive audit, but in less detail. The objective of this type of audit is to identify specific areas for more intensive investigation based upon the magnitude of the problem identified or the potential benefits to be derived.

2.9.2.c. Focused -- An in-depth investigation of one or several specific areas of a utility's management and operations.

2.9.3. Frequency -- The Commission shall order a management audit of any utility under its jurisdiction whenever the Commission deems it necessary to investigate the operational efficiency of the utility. Such factors as the cost of the management audit and the potential benefits of such audit may be taken into consideration. The Commission may accept or request a management audit performed under the rules of another jurisdiction in satisfaction of this rule when that audit is of the scope contemplated by the Commission, conforms to the standards herein set forth and covers the utility's service functions in its West Virginia jurisdiction.

2.9.4. Conduct and control

2.9.4.a. The Commission may choose to have the audit performed by its Staff or contracted to a qualified outside auditing firm. In the latter case, the Commission may supervise the selection process. If the management audit is to be conducted by an auditing firm, the Commission's order initiating the audit shall include provision for the development of the request for proposal (RFP), the consultant selection process and Staff's assistance and supervision during the audit.

2.9.4.b. The Commission may impose eligibility restrictions upon contractors relating to past, current and post-audit relationships with the utility.

2.9.4.c. The utility is expected to cooperate to the fullest extent with the performer of a Commission ordered management audit. A responsible employee shall be appointed by the utility as its management audit coordinator, who shall be responsible to assist in the efficient performance of the management audit.

2.9.5. Costs -- It shall be the responsibility of the audited utility to pay for a contracted audit. The Commission shall include the reasonable cost of conducting the contracted management audit in the cost of service of the utility. The Commission may allow such costs to be recovered in the utility's next general rate case following completion of the audit, or the Commission may order such costs to be amortized over a reasonable period of years, considering the impact of these costs on both the utility and its customers.

2.9.6. Implementation of recommendations

2.9.6.a. Draft report.

2.9.6.a.1. Upon completion of the audit a draft report shall be submitted to the utility for comments.

2.9.6.a.2. The auditor and Company representatives shall conduct a draft review meeting subsequent to the distribution of the draft review report.

2.9.6.b. Final report.

2.9.6.b.1. A final report shall be submitted to the Commission no later than thirty (30) days after the submission of the draft report to the utility.

2.9.6.b.2. Within thirty days of the final submission of the management audit report, the utility shall file a document detailing its position on each audit recommendation. This document must state which recommendations are acceptable to the utility and the nature of the utility's disagreement with any recommendations.

2.9.6.c. The Commission may, after hearing, issue an order prescribing the recommendations which should be adopted by the utility.

2.9.6.d. The utility shall file detailed implementation plans for the Commission's review and approval within the time specified in the Commission's order prescribing which recommendations the utility should adopt. The utility shall not deviate from an approved implementation plan without prior notice to the Commission which specifically states the utility's reasons for departing from the approved plan.

2.9.6.e. At the direction of the Commission, a follow-up audit may be performed to review the progress of the utility in implementing the approved plans and the results of previously performed management audits.

2.9.6.f. A management audit report and implementation plan adopted pursuant thereto and any follow-up audit may be used by parties in a general rate case subsequent to the management audit. Such audits and implementation plans may be a factor in the determination of just and reasonable rates if introduced as an exhibit and subjected to normal due process procedures.

2.9.6.g. The Commission may grant an extension of the time limits established in this section upon a showing of good cause for such extension.

Notes

W. Va. Code R. § 150-4-2