Chapter 205. Rules Governing Utility Rate Applications and Annual Informational Filings of Investor-Owned Gas Utilities
20VAC5-205-5. Purpose and applicability.
This chapter sets forth minimum filing requirements for Virginia's investor-owned gas utilities related to annual informational filings, rate case filings, and other filings under Chapter 10 (§ 56-232 et seq.), Chapter 25 (§ 56-600 et seq.), Chapter 26 (§ 56-603 et seq.), Chapter 27 (§ 56-605 et seq.), Chapter 28 (§ 56-610 et seq.), and Chapter 30 (§ 56-625) of Title 56 of the Code of Virginia. Forms are prescribed or adopted for purposes of implementing Chapter 10 (§ 56-232 et seq.), Chapter 25 (§ 56-600 et seq.), Chapter 26 (§ 56-603 et seq.), Chapter 27 (§ 56-605 et seq.), Chapter 28 (§ 56-610 et seq.), and Chapter 30 (§ 56-625) of Title 56 of the Code of Virginia. When so prescribed or adopted, use of the forms is mandatory. This chapter should not be construed as limiting the ability of the State Corporation Commission or its staff to evaluate information in addition to or beyond that identified in this chapter.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-10. General filing instructions.
A. An applicant shall provide a notice of intent to file an application pursuant to 20VAC5-205-20, 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-75, and 20VAC5-205-85 to the State Corporation Commission (commission) 60 days prior to the application filing date.
B. Applications pursuant to 20VAC5-205-20, 20VAC5-205-30, 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-70, 20VAC5-205-75, and 20VAC5-205-85 shall include:
1. The name and post office address of the applicant and the name and post office address of the applicant's counsel.
2. A full clear statement of the facts that the applicant is prepared to prove by competent evidence.
3. A statement of details of the objectives sought and the legal basis therefore. In addition, the application shall reference any open cases or issues that the commission directed to be adjudicated in the new proceeding.
4. All direct testimony by which the applicant expects to support the objectives sought. Each testimony shall include a summary not to exceed one page for applications pursuant to 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-70, 20VAC5-205-75, or 20VAC5-205-85 and not to exceed two pages for applications pursuant to 20VAC5-205-20.
5. Information or documentation conforming to the following general instructions:
a. Attach a table of contents of the company's application, including exhibits.
b. Each exhibit shall be labeled with the name of the applicant and the initials of the sponsoring witness in the upper right-hand corner as follows:
Exhibit No. (Leave Blank)
Witness: (Initials)
Statement or
Schedule Number
c. The first page of all exhibits shall contain a caption that describes the subject matter of the exhibit.
d. If the accounting and statistical data submitted differ from the books of the applicant, then the applicant shall include in its filing a reconciliation schedule for each account or subaccount that differs, together with an explanation describing the nature of the difference.
e. The required accounting and statistical data shall include all work papers and other information necessary to ensure that the items, statements, and schedules are not misleading.
6. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements pursuant to the code section under which the application is filed. This summary shall include references and page numbers to each supporting item referenced.
7. Provide a written narrative describing how the proposals contained in the application are consistent with the goals in the Environmental Justice Act (§ 2.2-234 et seq. of the Code of Virginia). Provide any documents or workpapers that support the assertions contained in the narrative, as applicable. Such documentation may include information from any federal, state, regional, or local agency or other source related to population, median income, and any other factors that determine whether a community impacted by the proposals in the application is an "environmental justice community" or "fenceline community," as those terms are defined in § 2.2-234 of the Code of Virginia.
C. This chapter does not limit the commission staff or parties from raising issues for commission consideration that have not been addressed in the applicant's filing before the commission. Except for good cause shown, issues specifically decided by commission order entered in the applicant's most recent rate case may not be raised by staff or interested parties in earnings tests made pursuant to 20VAC5-205-20 or 20VAC5-205-30.
D. An application filed pursuant to 20VAC5-205-20, 20VAC5-205-30, 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-70, 20VAC5-205-75, or 20VAC5-205-85 shall not be deemed filed pursuant to Chapter 10 (§ 56-232 et seq.), Chapter 25 (§ 56-600 et seq.), Chapter 26 (§ 56-603 et seq.), Chapter 27 (§ 56-605 et seq.), Chapter 28 (§ 56-610 et seq.), or Chapter 30 (§ 56-625) of Title 56 of the Code of Virginia unless it is in full compliance with this chapter.
E. The commission may waive any part or all of this chapter for good cause shown.
F. Where a filing contains information that the applicant claims to be confidential, the filing may be made under seal provided it is simultaneously accompanied by both a motion for protective order or other confidential treatment and an original and one copy of a redacted version of the filing to be available for public disclosure. Unredacted filings containing the confidential information shall, however, be immediately available to the commission staff for internal use at the commission.
G. Filings containing confidential (or redacted) information shall so state on the cover of the filing, and the precise portions of the filing containing such confidential (or redacted) information, including supporting material, shall be clearly marked within the filing.
H. Applicants shall provide a searchable PDF version of the application and direct testimony electronically to the Divisions of Utility Accounting and Finance and Public Utility Regulation on the application filing date. Applicants shall also provide a searchable PDF of the public version of the application and direct testimony electronically to the Division of Consumer Counsel of the Office of the Attorney General of Virginia on the application filing date.
Additionally, all schedules containing calculations derived from formulas shall be provided electronically to the Divisions of Utility Accounting and Finance and Public Utility Regulation in an electronic spreadsheet, including all underlying formulas and assumptions on the application filing date. Such electronic spreadsheet shall be commercially available and have common use in the utility industry.
All schedules that do not contain calculations derived from formulas shall be provided electronically to the Divisions of Utility Accounting and Finance and Public Utility Regulation in a searchable PDF version. Additional versions of such schedules shall be made available to parties upon request.
I. All applications, including direct testimony and Schedules 1 through 9, 11, 12, 14 through 19, 21, 22, 24 through 28, 30, 31, 34 through 39, 41 through 44, 46, and 48 through 52, as applicable, shall be filed in an original, and 12 copies with the Clerk of the Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218. One copy of Schedules 29 and 40 shall be filed with the Clerk of the Commission. Applicants may omit filing Schedule 29 with the Clerk of the Commission in Annual Informational Filings. Additional copies of such schedules shall be made available to parties upon request.
One copy of Schedules 29 and 40 shall be submitted to the Division of Utility Accounting and Finance. Four copies of Schedule 40 shall be submitted to the Division of Public Utility Regulation.
J. For any application made pursuant to 20VAC5-205-20, 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-70, 20VAC5-205-75, and 20VAC5-205-85, the applicant shall serve a copy of the information required in subsection A of this section at the same time that it is filed with the commission upon (i) the chairman of the board of supervisors of each county (or equivalent officials in the counties having alternate forms of government) in this Commonwealth affected by the proposed increase; (ii) the mayor or manager of every city and town (or equivalent officials in towns and cities having alternate forms of government) in this Commonwealth affected by the proposed increase; and (iii) the Division of Consumer Counsel of the Office of the Attorney General of Virginia. Such service shall be made electronically to the extent the applicant has official email addresses for such officials. If not, such service shall be made either by (i) personal delivery or (ii) first class mail to the customary place of business or to the residence of the person served.
For applications pursuant to 20VAC5-205-20, 20VAC5-205-40, 20VAC5-205-50, 20VAC5-205-60, 20VAC5-205-65, 20VAC5-205-70, 20VAC5-205-75, and 20VAC5-205-85, the applicant shall also serve each official listed in this subsection with the following within five business days of the issuance of the commission's procedural order regarding the application: (i) the information required in subdivisions B 1, B 2, and B 3 of this section; (ii) a statement that a copy of the complete public version of the application may be obtained at no cost by making a request therefor in writing to a specified company official; and (iii) the commission's procedural order regarding the application. Such service shall be made electronically to the extent the applicant has official email addresses for such officials. If not, such service shall be made either by (i) personal delivery or (ii) first class mail to the customary place of business or to the residence of the person served.
In addition, the applicant shall serve a copy of the complete public version of its application upon the Division of Consumer Counsel of the Office of the Attorney General of Virginia at the same time it is filed with the commission. Such service shall be made either by personal delivery or first class mail to the customary place of business.
K. Nothing in this chapter shall be interpreted to apply to applications for temporary reductions of rates pursuant to § 56-242 of the Code of Virginia.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-20. General and expedited rate increase applications.
A. An application for a base rate increase pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia shall conform to the following requirements:
1. Exhibits consisting of Schedules 1 through 9, 11, 12, 14 through 19, 21, 22, 24 through 30, 31, and 34 through 44 and the utility's direct testimony shall be submitted. Such schedules shall be identified with the appropriate schedule number and shall be prepared in accordance with the instructions contained in 20VAC5-205-90.
2. An exhibit consisting of additional schedules may be submitted with the utility's direct testimony. Such exhibit shall be identified as Schedule 52 (this exhibit may include numerous subschedules labeled 52A et seq.).
B. The selection of a historical test period is up to the applicant. However, the use of overlapping test periods will not be allowed.
C. If not otherwise constrained by law or regulatory requirements, an applicant who has not experienced a substantial change in circumstances may file an expedited rate application as an alternative to a general rate application. Such application need not propose an increase in regulated operating revenues. If, upon timely consideration of the expedited application and supporting evidence, it appears that a substantial change in circumstances has taken place since the applicant's last rate case, then the State Corporation Commission (commission) may take appropriate action, such as directing that the expedited application be dismissed or treated as a general rate application. Prior to public hearing and subject to applicable provisions of law, an application for expedited rate increase may take effect within 30 days after the date the application is filed. Expedited rate increases may also take effect in less than 12 months after the applicant's preceding rate increase so long as rates are not increased as a result thereof more than once in any calendar year. An applicant making an expedited application shall also comply with the following rules:
1. In computing its cost of capital, as prescribed in Schedule 3 in 20VAC5-205-90, the applicant shall use the equity return rate approved by the commission and used to determine the revenue requirement in the utility's most recent rate proceeding.
2. An applicant, in developing its rate of return statement, shall make adjustments to its test period jurisdictional results only in accordance with the instructions for Schedule 25 in 20VAC5-205-90.
3. The applicant may propose new allocation methodologies, rate designs, and new or revised terms and conditions, provided such proposals are supported by appropriate cost studies. Such support shall be included in Schedule 40.
D. Rates authorized to take effect 30 days following the filing of any application for an expedited rate increase shall be subject to refund in a manner prescribed by the commission. Whenever rates are subject to refund, the commission may also direct that such refund bear interest at a rate set by the commission.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-30. Annual informational filings.
Unless modified per a State Corporation Commission-approved alternative regulatory plan, each utility not requesting a base rate increase shall make an annual informational filing consisting of Schedules 1 through 7, 9, 11, 12, 14 through 18, 29, 36, and 40 a as identified in 20VAC5-205-90. The test period shall be the current 12 months ending in the same month used in the utility's most recent rate application. This information shall be filed with the State Corporation Commission within 120 days after the end of the test period. Requirements found in 20VAC5-205-10 B 2, B 3, B 4 , and B 7 may be omitted in annual informational filings.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-40. Optional performance-based applications.
An applicant that files an application for performance-based regulation pursuant to § 56-235.6 of the Code of Virginia shall file Schedules 1 through 32 and 34 through 43 as identified in 20VAC5-205-90.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-50. Upstream natural gas supply infrastructure plans.
An applicant that files an initial or amended upstream natural gas supply infrastructure plan pursuant to Chapter 27 (§ 56-605 et seq.) of Title 56 of the Code of Virginia, shall file Schedule 49 as identified and described in 20VAC5-205-90, which shall be submitted with the utility's direct testimony. Additionally, applications in which the utility seeks a return on investment based on the last authorized cost of capital shall include Schedule 3, Parts B through E. Applications in which the utility seeks an updated return on investment shall include Schedules 3, 4, 5, and 8 for only the year requested. If Schedule 8 is filed, the application shall provide schedules that support the amount and cost rate of each component of the proposed capital structure and explain all assumptions used.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-60. System expansion plans.
An applicant that files an initial or amended system expansion plan pursuant to Chapter 28 (§ 56-610 et seq.) of Title 56 of the Code of Virginia, shall file Schedule 50 as identified and described in 20VAC5-205-90, which shall be submitted with the utility's direct testimony. Additionally, applications in which the utility seeks a return on investment based on the last authorized cost of capital shall include Schedule 3, Parts B through E. Applications in which the utility seeks an updated return on investment shall include Schedules 3, 4, 5, and 8 for only the year requested. If Schedule 8 is filed, the application shall provide schedules that support the amount and cost rate of each component of the proposed capital structure and explain all assumptions used.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-65. Biogas supply investment plans.
An applicant that files an initial or amended biogas supply investment plan pursuant to Chapter 30 (§ 56-625) of Title 56 of the Code of Virginia, shall file Schedule 51 as identified and described in 20VAC5-205-90, which shall be submitted with the utility's direct testimony. Additionally, applications in which the utility seeks a return on investment based on the last authorized cost of capital shall include Schedule 3, Parts B through E. Applications in which the utility seeks an updated return on investment shall include Schedules 3, 4, 5, and 8 for only the year requested. If Schedule 8 is filed, the application shall provide schedules that support the amount and cost rate of each component of the proposed capital structure and explain all assumptions used.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-70. Temporary increases of rates.
Applicants that file a request for a temporary increase in rates pursuant to § 56-245 of the Code of Virginia, shall include Schedules 1 through 9, 11, 12, 14, 16, 17, and 18 as identified and described in 20VAC5-205-90.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-75. Steps to Advance Virginia's Energy Plan filings.
An application filed pursuant to Chapter 26 (§ 56-603 et seq.) of Title 56 of the Code of Virginia for a new or amended Steps to Advance Virginia's Energy (SAVE) Plan or SAVE Rider, shall include Schedule 46 as identified and described in 20VAC5-205-90, which shall be submitted with the utility's direct testimony. Additionally, applications in which the utility seeks a return on investment based on the last authorized cost of capital shall include Schedule 3, Parts B through E. Applications in which the utility seeks an updated return on investment shall include Schedules 3, 4, 5, and 8 for only the year requested. If Schedule 8 is filed, the application shall provide schedules that support the amount and cost rate of each component of the proposed capital structure and explain all assumptions used. Applications limited to requesting an accounting update to an existing SAVE Rider may omit the requirements of 20VAC5-205-10 B 7.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-85. Conservation and ratemaking efficiency plans.
An applicant that files a conservation and ratemaking efficiency plan pursuant to Chapter 25 (§ 56-600 et seq.) of Title 56 of the Code of Virginia, shall file Schedule 48 as identified and described in 20VAC5-205-90, which shall be submitted with the utility's direct testimony. Additionally, applications in which the utility seeks a return on investment based on the last authorized cost of capital shall include Schedule 3, Parts B through E. Applications in which the utility seeks an updated return on investment shall include Schedules 3, 4, 5, and 8 for only the year requested. If Schedule 8 is filed, the application shall provide schedules that support the amount and cost rate of each component of the proposed capital structure and explain all assumptions used.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
20VAC5-205-90. Instructions for schedules and exhibits for this chapter.
The following instructions for schedules and exhibits are to be used in conjunction with this chapter:
Schedule 1 - Historical Profitability and Market Data
Instructions: Using the format of Form Schedule 1 and the following definitions, provide the data for the test period and four prior fiscal years. The information shall be compatible with the latest SEC Form 10-K consolidated financial statements (including any restatements) or annual report if an SEC Form 10-K is not available. Information in Sections A and B shall be compiled for the corporate entity that raises equity capital in the marketplace. Information in Section C of Schedule 1 shall be compiled for the subsidiary company that provides regulated utility service in Virginia.
Definitions for Schedule 1
Return on Year End Equity = Earnings Available for Common Shareholders/Year End Common Equity
Return on Average Equity = Earnings Available for Common Shareholders/The Average of Year End Equity for the Current and Previous Year
Earnings Per Share = Earnings Available for Common Shareholders/Average Number Common Shares Outstanding
Dividends Per Share = Common Dividends Paid per Share During the Year
Payout Ratio = Dividends Per Share/Earnings Per Share
Dividend Yield = Dividends Per Share/ Year End Price
Price Earnings Ratio = Average Market Price/Earnings Per Share
Schedule 2 - Interest and Cash Flow Coverage Data
Instructions: This schedule shall be prepared using the following definitions and instructions and presented in the format of Form Schedule 2. The information shall be provided for the test year and the four prior fiscal years based on information for the applicant and for the consolidated company if the applicant is a subsidiary.
- Interest (Lines 3, 4, and 5) shall include amortization of expenses, hedging gains and losses, discounts, and premiums on debt without deducting an allowance for borrowed funds used during construction.
- Income taxes (Line 2) shall include federal and state income taxes.
- Allowance for Funds Used During Construction (AFUDC) (Line 8), where applicable, is total AFUDC -- for borrowed and other funds.
- Preferred dividends (Line 13) for a subsidiary shall be stated per books.
- Construction expenditures (Line 15) are net of AFUDC.
- Common dividends (Line 16) for a subsidiary shall be stated per books.
Schedule 3 - Capital Structure and Cost of Capital Statement – Per Books and Average
Instructions: This schedule shall show the amount of each capital component per balance sheet, the amount for ratemaking purposes, the percentage weight in the capital structure, and the component cost and weighted cost, using the format in Form Schedule 3. The information shall be provided for the test period, the four prior fiscal years, and on a 13-month average or five-quarter average basis for the test period. The data shall be provided for the entity whose capital structure was approved for use in the applicant's last rate case.
In Part A, the information shall be compatible with the latest Securities and Exchange Commission Form 10-K consolidated financial statement (including any restatements) or annual report if an SEC Form 10-K is not available. In Parts B, C, and D, the methodology shall be consistent with that approved in the applicant's last rate case. Reconcile differences between Parts A and B for both end-of-test-period and average capital structures.
The amounts for all short-term debt, revolving credit agreements, and similar short-term financing arrangements in Part B shall be based on a daily average over the test year, or alternatively, on a 13-month average over the test year. Except for the Part B amount for short-term debt and average amounts in Column (6), all other accounts are end-of-year and end-of-test period.
The component weighted cost rates equal the product of each component's capital structure weight for ratemaking purposes times its cost rate. The weighted cost of capital is equal to the sum of the component weighted cost rates. The Investment Tax Credits (ITC) cost is equal to the weighted cost of permanent capital (long-term debt, preferred stock, and common equity).
Adjustments made to per books amounts shall be fully documented and explained.
In an application for a rate adjustment clause pursuant to any Code of Virginia section that allows the applicant to seek recovery of a return on investment, Schedule 3 information in Parts B through E shall be provided for each capital structure used to calculate the revenue requirement.
Schedule 4 - Schedules of Long-Term Debt, Preferred Stock, Investment Tax Credits, and Any Other Component of Ratemaking Capital
Instructions: For each applicable capital component, provide a schedule that shows, for each issue, the amount outstanding, and effective cost rate. This data shall support the amount and cost rate of the respective capital components contained in Schedule 3, consistent with the methodology approved in the applicant's last rate case. In addition, a detailed breakdown of all investment tax credits should be provided that reconciles to the per books balance of investment tax credits. These schedules should include disclosure of any associated hedging/derivative instruments, their respective terms and conditions (instrument type, notional amount and associated series of debt or preferred stock hedged, period in effect, etc.), and the impact of such instruments on the cost of debt or preferred stock.
In an application for a rate adjustment clause pursuant to any Code of Virginia section that allows the applicant to seek recovery of a return on investment, Schedule 4 information shall be provided for long-term debt, preferred stock, and investment tax credits in each capital structure used to calculate the revenue requirement if the applicant proposes a cost of capital that differs from the last authorized cost of capital.
Schedule 5 - Schedule of Short-Term Debt, Revolving Credit Agreements, and similar Short-Term Financing Arrangements
Instructions: Provide data and explain the methodology, which should be consistent with the methodology approved in the applicant's last rate case, used to calculate the cost and balance contained in Schedule 3 for short-term debt, revolving credit agreements, and similar arrangements.
This schedule should also provide detailed disclosure of any hedging/derivative instruments related to short-term debt, their respective terms and conditions (instrument type, notional amount and associated series of debt hedged, period in effect, etc.), and the impact of such instruments on the cost of short-term debt.
In an application for a rate adjustment clause pursuant to any Code of Virginia section that allows the applicant to seek recovery of a return on investment, Schedule 5 information shall be provided for short-term financing included in each capital structure used to calculate the revenue requirement if the applicant proposes a cost of capital that differs from the last authorized cost of capital.
Schedule 6 - Public Financial Reports
Instructions: Provide copies, or a link to where such copies can be found on the Internet, of the most recent Stockholder's Annual Report, Securities and Exchange Commission Form 10-K, and Form 10-Q for the applicant and the consolidated parent company if the applicant is a subsidiary. If published, provide a copy or a link to where such copy can be found on the Internet of the most recent statistical or financial supplement for the consolidated parent company.
Schedule 7 - Comparative Financial Statements
Instructions: If not provided in the public financial reports for Schedule 6, provide comparative balance sheets, income statements, and cash flow statements for the test year and the 12-month period preceding the test year for the applicant and its consolidated parent company if applicant is a subsidiary. In lieu of providing a copy, the applicant may provide a link to where such information can be found on the Internet.
Schedule 8 - Proposed Cost of Capital Statement
Instructions: Provide the applicant's proposed capital structure/cost of capital schedule. In conjunction, provide schedules that support the amount and cost rate of each component of the proposed capital structure, and explain all assumptions used.
In an application for a rate adjustment clause pursuant to any Code of Virginia section that allows the applicant to seek recovery of a return on investment, Schedule 8 information shall be provided for the proposed capital structure used to calculate the revenue requirement if different from Schedule 3.
Schedule 9 - Rate of Return Statement – Earnings Test – Per Books
Instructions: Use format of Form Schedule 9.
Schedule 9 shall reflect average rate base, capital, and common equity capital. Interest expense, preferred dividends, and common equity capital shall be calculated by using the average capital structure included in Schedule 3 B and average rate base.
Schedule 11 - Rate of Return Statement – Earnings Test – Adjusted to A Regulatory Accounting Basis
Instructions: Use format of Form Schedule 11.
Schedule 11 adjustments in Column (2) shall reflect any financial differences between per books and regulatory accounting as prescribed by the State Corporation Commission. Each Column (2) adjustment shall be separately identified and reflected in Schedule 16.
A per books regulatory accounting adjustment to reflect Investment Tax Credits (ITC) Capital Expense shall be reflected in Schedule 11 Column (2), if applicable. Column (3) ITC Capital Expense shall be calculated as follows:
ITC Capital Expense = Rate Base (line 25) * weighted cost of ITC Capital in Schedule 3
The associated income tax savings shall be reflected in lines 5 and 6, Column (2) as follows:
Associated income tax savings = total average rate base (line 25) * weight of ITC capital (Sch. 3) * weighted cost of debt component of the ITC cost component (Sch. 3) * (Federal and State Income Tax rate * -1)
Schedule 11 Line 15 other income/(expense) shown in Column (3) shall be the current amount of other income/(expense) categorized as jurisdictional in the applicant's last rate case.
Schedule 12 - Rate Base Statement – Earnings Test – Per Books
Instructions: Use format of Form Schedule 12.
Applicants must use the same methodology to calculate cash working capital allowance as was employed in the applicant's most recent base rate case.
Schedule 14 - Rate Base Statement – Earnings Test – Adjusted to Regulatory Accounting Basis
Instructions: Use format of Form Schedule 14.
Cash working capital allowance shall be calculated using the instructions in Schedule 12. Schedule 14 Column (2) shall reflect adjustments necessary to identify any financial differences between per books and regulatory accounting as prescribed by the State Corporation Commission. Each Column (2) adjustment shall be separately identified and reflected in Schedule 16.
Schedule 15 - Schedule of Regulatory Assets
Instructions: If applicable per Schedules 9 and 12 instructions. Use format of Form Schedule 15.
All regulatory assets shall be individually listed with associated deferred income tax. Indicate whether the regulatory asset (i) is proposed in the current proceeding; (ii) was previously approved by the State Corporation Commission; (iii) is not subject to an earnings test; or (iv) is for financial purposes only. Also include Eligible Safety Activity Cost deferrals pursuant to § 56-235.10 of the Code of Virginia.
Schedule 16 - Detail of Regulatory Accounting Adjustments
Instructions: If applicable per Schedules 9 and 12 instructions.
Use format of Form Schedule 16.
Each regulatory accounting adjustment shall be numbered sequentially beginning with ET-1 and listed under the appropriate description category (Operating Revenues, Interest Expense, Common Equity Capital, etc.).
Each regulatory accounting adjustment shall be fully explained in the description column of this schedule. Regulatory accounting adjustments shall adjust from a financial accounting basis to a regulatory accounting basis. Adjustments to reflect going-forward operations shall not be included on this schedule.
Detailed workpapers substantiating each adjustment shall be provided in Schedule 29.
Schedule 17 - Lead/Lag Cash Working Capital Calculation – Earnings Test
Instructions: Use format of Form Schedule 17.
Total Balance Sheet Net Source/Use of Average Cash Working Capital determined in Schedule 18 shall be included in the Total Cash Working Capital amount in this schedule.
The Total Cash Working Capital amount determined in this schedule shall be included in Schedules 12 and 14.
Utilities required to use a lead/lag study should perform a complete lead/lag analysis every five years. Major items, such as the revenue lag and balance sheet accounts, should be reviewed every year.
Schedule 18 - Balance Sheet Analysis – Earnings Test
Instructions: Use format of Form Schedule 18.
All uses and sources of cash working capital shall be detailed in this schedule. The associated accumulated deferred income tax (ADIT) shall also be included as a use or source.
The Net Source/Use of Average Cash Working Capital determined in this schedule shall be included in Schedule 17.
Support for Schedule 18 shall include a list of all balance sheet subaccounts and titles. Indicate whether the account's impact is included in (i) the balance sheet analysis; (ii) the capital structure; (iii) the income statement portion of the lead/lag study; (iv) elsewhere in rate base; or (v) excluded from cost of service. Applicants shall also include a brief description of the costs in each account.
Schedule 19 - Rate of Return Statement – Per Books
Instructions: Use format of Form Schedule 19.
Column (1) interest expense, preferred dividends and common equity capital shall be calculated by using the capital structure included in Schedule 3 or Schedule 8 and end of test year level rate base.
Schedule 21 - Rate of Return Statement – Reflecting Ratemaking Adjustments
Instructions: Use format of Form Schedule 21 and Form Supporting Steps to Advance Virginia's Energy (SAVE) Roll-in Schedule 21, as appropriate.
Schedule 21 Column (2) adjustments shall be separately identified and reflected in Schedule 25.
Applicants not proposing a Roll-in of a SAVE Rider may omit Supporting SAVE Roll-in Schedule 21.
Interest expense, preferred dividends, and common equity capital shall be calculated by using the capital structure included in Schedule 3 or Schedule 8 and an adjusted level of rate base.
After ratemaking adjustments, ITC capital expense shall be calculated as follows:
Total rate base (line 29) * weighted cost of ITC capital in Schedule 3 or Schedule 8
Applicants filing pursuant to 20VAC5-205-30 may omit Columns (4) through (7).
Schedule 22 - Rate Base Statement – Per Books
Instructions: Use format of Form Schedule 22.
Applicants with jurisdictional per books operating revenues more than $150 million shall calculate cash working capital allowance using a lead/lag study. Schedules 27 and 28 shall be provided detailing the cash working capital computation for Columns (1), (3), and (7). Applicants with jurisdictional per books operating revenues between $30 million and $150 million may include a zero cash working capital requirement rather than perform a lead/lag study. Applicants with jurisdictional per books operating revenues less than $30 million may use a formula method to calculate cash working capital.
Schedule 24 - Rate Base Statement – Adjusted – Reflecting Ratemaking Adjustments
Instructions: Use format of Form Schedule 24 and Form Supporting SAVE Roll-in Schedule 24, as appropriate.
Cash working capital allowance shall be calculated using instructions in Schedule 22.
Applicants not proposing a Roll-in of a SAVE Rider may omit Supporting SAVE Roll-in Schedule 24.
Schedule 25 - Detail of Ratemaking Adjustments
Instructions: Use format of Form Schedule 25.
Each adjustment shall be numbered sequentially and listed under the appropriate description category (Operating Revenues, Interest Expense, Common Equity Capital, etc.).
Ratemaking adjustments shall reflect a rate year level of revenues and expenses in accordance with applicable rules and laws governing utility rate changes. Rate base adjustments may reflect no more than a rate year average. In Expedited Filings, Column (4) Ratemaking Adjustments shall reflect a rate year level of only those types of adjustments previously approved for the applicant. In addition, separate adjustments shall be made for the purpose of identifying SAVE components. Examples of these adjustments include (i) removing the rate year level of SAVE-related depreciation expense and property taxes, (ii) removing the rate year 13-month average level of SAVE-related rate base (including ADIT), and (iii) eliminating SAVE-related revenues.
Detailed workpapers substantiating each adjustment shall be provided in Schedule 29.
Schedule 26 - Revenue Requirement Reconciliation
Instructions: Use format of Form Schedule 26 for lead schedule. An example of a supporting schedule is provided.
Provide a reconciliation showing the revenue requirement impact of (i) each adjustment (including its income tax effects), (ii) the proposed capital structure, (iii) the proposed ROE, (iv) the proposed cost of debt, and (v) each other proposal impacting the requested revenue requirement.
Schedule 27 - Lead/Lag Cash Working Capital Calculation – Adjusted
Instructions: Use format of Form Schedule 27.
Total Balance Sheet Net Source/Use of Average Cash Working Capital determined in Schedule 28 shall be included in the Total Cash Working Capital amount in this schedule.
The Total Cash Working Capital amount determined in this schedule shall be included in Schedules 22 and 24.
Utilities required to use a lead/lag study should perform a complete lead/lag analysis every five years. Major items such as the revenue lag and balance sheet accounts should be reviewed every year.
Schedule 28 - Balance Sheet Analysis – Adjusted
Instructions: Use format of Form Schedule 28.
All uses and sources of cash working capital shall be detailed in this schedule. The associated ADIT shall also be included as a use or source.
Support for Schedule 28 should include a list of all balance sheet subaccounts and titles. Additionally, support for Schedule 28 should include a brief description of the cost in each balance sheet subaccount, whether the cost is presented on an end-of-period or 13-month average basis, and the reasons why such cost is presented on an end-of-period or 13-month average basis. Indicate whether the account's impact is included in (i) the balance sheet analysis; (ii) the capital structure; (iii) the income statement portion of the lead/lag study; (iv) elsewhere in rate base; or (v) excluded from cost of service. Include a brief description of the costs included in each account. Whether the cost is presented on an end-of-period or 13-month average basis, applicants shall provide the monthly balances making up the 13-month average.
The Net Source/Use of Average Cash Working Capital determined in this schedule shall be included in Schedule 27.
Schedule 29 - Workpapers for Earnings Test and Ratemaking Adjustments
Instructions: Include a table of contents listing the work papers included in this schedule.
a. Provide a narrative explaining the purpose and methodology used for each adjustment identified in subsections b and d of these instructions that have not been addressed in the applicant's direct testimony. Such explanation shall reference any relevant Financial Accounting Standards Board (FASB) statement or commission precedent if known or available.
b. Provide a summary calculation of each earnings test adjustment included in Schedule 16. Each summary calculation shall identify the source documents used to prepare such calculation.
c. Provide all relevant documents, references, and information necessary to support the summary calculation required in subsection b of these instructions for each proposed earnings test adjustment. Amounts identified as per books costs shall include any documentation or references necessary to verify such amount to Schedule 40A. Working papers shall be indexed and tabbed for each adjustment and include the name of the primary employee responsible for the adjustment. All documents and information as referenced in these instructions should include general ledgers, payroll distributions, billing determinants, invoices, and actuarial reports. Supporting documentation that is voluminous may be made available at the applicant's office.
d. Provide a summary calculation of each rate year adjustment included in Schedule 25. Each summary calculation shall identify the source documents used to prepare such calculation.
e. Provide all relevant documents and information necessary to support the summary calculation required in subsection d of these instructions for each proposed rate year adjustment. Amounts identified as per books costs shall include any documentation necessary to verify such amount to Schedule 40b. Working papers shall be indexed and tabbed for each adjustment and include the name of the primary employees responsible for the adjustment. All documents and information as referenced in subsections a through e of these instructions should include general ledgers, payroll distributions, billing determinants, invoices, and actuarial reports.
Schedule 30 - Revenue and Expense Variance Analysis
Instructions: Applicant shall quantify jurisdictional operating revenues and system operating and maintenance expenses by primary account as specified by the Federal Energy Regulatory Commission Uniform System of Accounts (USOA account) during the test period and the preceding 12 months. Also, provide jurisdictional sales volumes by customer class for the test period.
Applicants shall file a schedule detailing all revenue and expense accounts by month for the test period. Applicants shall provide a detailed explanation of all jurisdictional revenue and system expense increases or decreases of more than 10% during the test period compared to the previous 12-month period. The expense variance analysis applies to test period expense items greater than one-tenth of one percent (.001) of Operating & Maintenance expenses excluding purchased gas adjustment costs. Additionally, the applicant shall provide an electronic spreadsheet version of the accounts payable ledger or schedule of all accounts payable electronically to the Division of Utility Accounting and Finance within five business days of the application filing date.
Schedule 31 - Advertising Expense
Instructions: A schedule detailing advertising expense by USOA account and grouped according to the categories identified in § 56-235.2 of the Code of Virginia shall be provided. Advertising costs that are not identifiable to any of those categories shall be included in a separate category titled "other." If the applicant seeks rate relief, demonstrate that the applicant's advertising meets the criteria established in § 56-235.2.
Schedule 34 - Miscellaneous Expenses
Instructions: Provide a description of amounts paid and USOA accounts charged for each charitable and educational donation, each payment to associated industry organizations, and all other miscellaneous general expenses. Individual items aggregating to less than 5.0% of the total miscellaneous expense may be reflected in an "Other" line item. Advertising expenses included in Schedule 31 should be excluded from this schedule.
Schedule 35 - Affiliate Services Transactions
Instructions: For purposes of this schedule affiliate transactions shall be defined to include (i) goods exchanged between an applicant and its affiliates; (ii) services exchanged between an applicant and its affiliates; and (iii) transactions where a third party indirect affiliate provides goods or services on behalf of a direct affiliate that are passed through to applicant. If any portion of the required information has been filed with the State Corporation Commission (commission) as part of an applicant's Annual Report of Affiliate Transactions, the applicant may reference such report clearly identifying what portions of the required information are included in the Annual Report of Affiliate Transactions.
Provide a detailed narrative description of each type of affiliated good or service (i) received or (ii) provided by an applicant during the test period.
Provide detailed schedules for each approved affiliate transaction electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet, including all underlying formulas and assumptions on the application filing date, detailing costs by type of good or service (e.g. accounting, auditing, legal and regulatory, human resources, etc.) (i) received or (ii) provided, for each month of the test period. Show the final USOA account distribution of all costs billed to or by the regulated entity by month for the test period, as it is recorded on the regulated entity's books.
Identify all amounts billed to an affiliate and then billed back to the regulated entity.
Cost records and market analyses supporting all affiliated charges billed to or by the regulated entity/division shall be maintained and made readily available for commission staff review. This shall include supporting detail of costs (including the return component) incurred by the affiliated interest rendering the service and the allocation methodology. In situations when the pricing is required to be the higher (lower) of cost or market and market is unavailable, note each such transaction and have data supporting such a finding available for commission staff review.
If affiliate charges are booked per a pricing mechanism other than that approved by the commission, the regulated entity shall provide a reconciliation of books to commission-approved pricing, including an explanation of why the commission-approved pricing is not used for booking purposes.
Schedule 36 - Income Taxes
Instructions: Provide a schedule detailing the computation of test period current state and federal income taxes on a total company and Virginia jurisdictional basis. Such schedule should provide a complete reconciliation between book and taxable income showing all individual differences. Additionally, provide a schedule detailing the computation of fully adjusted, current state and federal income taxes applicable to the Virginia jurisdiction.
Provide a schedule detailing the individual items of deferred state and federal income tax expense for the test period on a total company and Virginia jurisdictional basis. Separately quantify excess deferred income taxes amortization on both a total company and Virginia jurisdictional basis. Also, differentiate between protected (subject to Internal Revenue Service normalization rules) and unprotected amortization and state the amortization method and period applicable to each. Additionally, provide a schedule detailing the computation of fully adjusted, deferred state and federal income tax applicable to the Virginia jurisdiction.
Provide a detailed reconciliation between the statutory and effective income tax rates for the test period on both a total company and Virginia jurisdictional basis. Such schedule should quantify individual reconciling items by dollar amount and percentage. Individual items should include permanent differences (itemize), flow-through depreciation, excess deferred FIT amortization, and deferred ITC amortization.
Provide a detailed listing of individual ADIT and accumulated deferred ITC amounts as of the end of test period. Separately identify those items affecting the computation of rate base on both a total company and Virginia jurisdictional basis. Additionally, provide a detailed listing of individual ADIT and accumulated deferred ITC amounts for the earnings test rate base (if applicable), the end of test period rate base, and the fully-adjusted rate base on a Virginia jurisdictional basis.
Provide a detailed reconciliation between the federal and state current tax expense on a stand-alone basis and the actual per book federal and state current tax expense for the test period on a total company and Virginia jurisdictional basis.
Provide a schedule depicting, by month, all federal and state income tax payments made during the test year. For each payment, identify the recipient.
Provide a detailed reconciliation between deferred federal and state income expense computed on a stand-alone basis and the actual per book deferred federal and state income tax expense, on a total company and Virginia jurisdictional basis.
Provide a detailed reconciliation between individual accumulated deferred federal and state income tax assets and liabilities computed on a stand-alone basis and the actual per book ADIT amounts as of the end of the test period, on a total company and Virginia jurisdictional basis. Additionally, provide a detailed listing of individual ADIT assets and liabilities computed on a stand-alone basis for the earnings test rate base (if applicable), the end of test period rate base, and the fully-adjusted rate base on a Virginia jurisdictional basis.
Schedule 37 - Organization
Instructions: Provide an organizational chart of the applicant and its parent company detailing subsidiaries and divisions. Provide details of any material corporate reorganizations since the applicant's last rate case. Explain the reasons for and any ratemaking impact of each such reorganization.
Schedule 38 - Changes in Accounting Procedures
Instructions: Detail any material changes in accounting procedures adopted by either the parent/service company or the utility since the applicant's last rate case. Explain any ratemaking impact of such changes.
Identify any write-offs or write-downs associated with assets (i.e., plant, tax accounts, etc.) that have been retained, transferred, or sold.
Schedule 39 - Out-of-Period Book Entries
Instructions: Provide a summary schedule prepared from an analysis of journal entries showing "out-of-period" items booked during the test period. Show the amount, USOA account, and explanation of charge.
Schedule 40 - Jurisdictional and Class Cost of Service Study
Instructions: Use format of Form Schedule 40.
a. Provide detailed calculations for all jurisdictional allocations for each revenue, expense, and rate base USOA account used to create Schedule 9. Allocations should be based on test period average data. Show the allocation basis for each primary USOA account and for any amount included therein with a unique allocation basis. Explain the methodology used and why such method is proposed. Discuss all changes in the applicant's operations that have materially changed any allocation factor as well as any significant changes in allocation methodology since the last rate case. For any change in allocation methodology used in the current rate case that has a material effect on the current test period cost of service study, provide Schedule 40a using both the new methodology used in the current rate case and the old methodology used in the last rate case.
b. Provide detailed calculations for all jurisdictional allocations for each revenue, expense, and rate base USOA account used to create Schedules 19 and 22. Show the allocation basis for each primary USOA account and for any amount included therein with a unique allocation basis. Explain the methodology used and why such method is proposed. Discuss all changes in the applicant's operations that have materially changed any allocation factor as well as any significant changes in allocation methodology since the last rate case. For any change in allocation methodology used in the current rate case that has a material effect on the current test period cost of service study, provide Schedule 40b using both the new methodology used in the current rate case and the old methodology used in the last rate case.
c. Provide a class cost of service study showing the allocation basis for each primary USOA account and for any amount included therein with a unique allocation basis. Explain the methodology used and why such method is proposed. Discuss all changes in the applicant's operations that have materially changed any allocation factor as well as any significant changes in allocation methodology since the last rate case. For any change in allocation methodology used in the current rate case that has a material effect on the current test period cost of service study, provide Schedule 40c using both the new methodology used in the current rate case and the old methodology used in the last rate case.
d. Provide appropriate supporting cost data for new allocation methodologies or rate design proposals in expedited rate applications.
Schedule 41 - Proposed Rates and Tariffs
Instructions: Provide a summary of the rates designed to effect the proposed revenue increase. Provide a redline copy of all tariff pages that the applicant proposes to revise in this proceeding.
Schedule 42 - Present and Proposed Revenues
Instructions:
a. Provide the detailed calculations supporting total per books revenues in Column (3) of Schedule 21. The present revenues from each of the applicant's services shall be determined by multiplying the current rates times the test period billing units (by rate block, if applicable).
b. Provide a detailed calculation supporting total adjusted revenues in Column (5) of Schedule 21. The proposed revenues from each of applicant's services shall be determined by multiplying the proposed rates by the adjusted billing units (by rate block, if applicable). Detail by rate schedule all miscellaneous charges and other revenues, if applicable. Reconcile per books billing units to adjusted billing units itemizing changes such as customer growth, weather, BTU content, and miscellaneous revenues. The revenue changes for applicant's services should be subtotaled into the applicant's traditional categories.
Schedule 43 - Sample Billing
Instructions: Provide a sample billing analysis detailing the effect on each rate schedule at representative levels of consumption.
Schedule 44 – Additional Information Required by Commission Order
To the extent not included in other schedules, provide all information and analyses that the State Corporation Commission has previously directed the applicant to include in its filing pursuant to Chapter 205.
Schedule 46 – Initial or Amended SAVE Plans and SAVE Rider Adjustments
Instructions: Use the format of Form Schedule 46a-q.
a. Instructions for initial and amended Steps to Advance Virginia's Energy (SAVE) Plan applications. For any initial or amended SAVE Plan pursuant to § 56-603 et seq. of the Code of Virginia, the applicant shall provide the following information:
1. A schedule that includes, to the extent known: (i) a detailed narrative describing each distribution asset class replacement program (e.g., cast iron replacement program, copper replacement program, first-generation plastic replacement program, etc.); (ii) the estimated timeline, to the extent known, for each distribution asset class replacement program; and (iii) a detailed explanation of the justification for the proposed replacement activities and costs associated with each distribution asset class replacement program.
2. A schedule that includes, to the extent known, the following information about projects that fall outside item a 1 of these instructions (e.g., gate station replacements, regulator station replacements, transmission pipeline replacements, etc.): (i) a detailed narrative describing each project; (ii) the estimated timeline, to the extent known, for each project that falls outside of the distribution asset class replacement programs; and (iii) a detailed explanation of the justification for the proposed replacement activities and costs associated with each project that falls outside of distribution asset class replacement programs.
The narrative requested in a 2 (i) of these instructions shall include detailed specific project descriptions, to the extent known, of the following: (i) gate station replacements; (ii) regulator station replacements; (iii) replacements of transmission pipelines or pipeline facilities associated with transmission pipelines (e.g., valves); (iv) replacements of distribution pipelines that exceed $1 million in project cost that are not part of a distribution asset class replacement program (i.e., specific, discrete projects that cost more than $1 million and involve pipeline facilities that are not part of a distribution asset class replacement program); (v) replacements of distribution pipelines that are 12 inches or greater in nominal outside diameter and have a Maximum Allowable Operating Pressure in excess of 60 psig; and (vi) replacements of any storage or peak shaving facilities. The detailed project descriptions provided for projects that fall under a 2 of these instructions shall also include comparisons between existing infrastructure and the proposed replacement infrastructure, to the extent known, to cover known material attributes, including diameter, wall thickness, yield strength, and equipment configurations, as applicable.
3. A detailed description of exactly which of the safety or reliability system integrity risks identified in clause (i) of the definition of "eligible infrastructure replacement" in § 56-603 are addressed by (i) each of the distribution asset class replacement programs included in the filing and (ii) to the extent known, each of the projects identified under item a 2 of these instructions.
4. A detailed description of how the applicant intends to prioritize replacement activities under (i) distribution asset class replacement programs and (ii) projects under a 2 of these instructions over the life of the proposed SAVE Plan or the life of the proposed Save Plan amendment. The explanation must also identify any and all pipeline facilities proposed for replacements that are not located within the Commonwealth of Virginia.
5. A detailed description of how proposed replacements either will reduce or have the potential to reduce greenhouse gas emissions.
6. A narrative describing how the applicant plants for adequate internal employees and contractor resources so that identified projects are completed within the life of the proposed SAVE Plan or SAVE Plan amendment.
7. A schedule showing, to the extent known, by year (i) tentative miles of main, by material type, anticipated to be replaced under each distribution asset class replacement program; (ii) tentative number of service lines, by material type, anticipated to be replaced under each distribution asset class replacement program; and (iii) tentative amount of infrastructure to be replaced under item a 2 of these instructions (e.g., number of regulator stations to be replaced, number of gate stations to be replaced, transmission mileage to be replaced, etc.).
8. A schedule of all projected and actual costs by type of cost and year, and by month to the extent available. The applicant shall provide such information by program if applicable, for the specific SAVE Plan filing.
9. A detailed schedule of the applicant's projections to facilitate the review of projected costs, electronically to the Division to Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions. The applicant shall provide these projections grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
10. The estimated lifetime revenue requirement of the proposed eligible infrastructure replacement costs, by year, on a jurisdictional basis, including all supporting calculations and assumptions. The applicant shall provide such information by program if applicable for the specific SAVE Plan filing.
11. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in this section. This summary shall include references and page numbers to each supporting item referenced.
12. Any SAVE plan application that is also seeking recovery through a SAVE Rider shall also provide the information required in section b of these instructions, as applicable and to the extent known.
b. Instructions for initial and adjusted SAVE Rider applications. For any SAVE Rider pursuant to § 56-603 et seq. of the Code of Virginia, the applicant shall provide the following information:
1. A schedule of all projected and actual costs by type and by month to the extent available. The applicant shall provide such information by program if applicable for the specific SAVE Rider.
2. A schedule supporting all ADIT balances included in the SAVE Rider filing. The applicant shall provide such information in a manner that separately identifies the types of book/tax differences included in these supporting ADIT balances and include a separate written narrative describing the nature of each identified book/tax difference.
3. Provide a transaction-level summary to facilitate the audit of actual costs, electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions on the application filing date. If the SAVE Rider Adjustment includes a true-up, provide such information for costs incurred during the true-up period. If the SAVE Rider Adjustment does not include a true-up, provide the information based on the most current actual costs available to date. The applicant shall provide these transactions grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
4. A schedule that includes, to the extent known, the projected costs that the applicant seeks to recover through the SAVE Rider, including any and all project costs, by year, identified for distribution asset class replacement programs under item a 1 of these instructions and projects that fall outside of distribution asset class replacement programs under item a 2 of these instructions.
5. Detailed information relative to the applicant's methodology for allocating the revenue requirement among rate classes and the design of class rates.
6. The applicant shall provide an illustrative journal entry example for each the following items: (i) costs; (ii) recoveries; (iii) deferrals; (iv) carrying charges; (v) current taxes; (vi) deferred taxes; and (vii) any other items included in the applicant's SAVE Rider filing. In addition, the company shall provide a separate accompanying description for each type of journal entry provided.
7. A detailed explanation of the applicant's proposed regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes. The applicant shall provide a separate explanation for each of the items included in the applicant's SAVE Rider filing and discuss any proposed regulatory treatments that differ from the applicant's per book method of accounting.
8. A detailed explanation of any recent or proposed changes in the per books accounting or regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes that have occurred since the applicant's previous SAVE Rider filing. The applicant shall provide a separate explanation for each of these items included in the applicant's SAVE Rider filing.
9. Identification (in the application or supporting testimony) of the estimated impact on a typical affected customer's monthly bill from the proposed revenue requirement. The applicant should provide a billing analysis based on the average annualized bill for a typical customer for each class that details (i) the proposed customer bill impact and (ii) the current bill impact. The applicant should provide both the dollar amount increase as well as percentage increase. This should be provided in an electronic file with the underlying calculations and supporting information.
10. A supporting schedule that shows the historical costs, including carrying charges, and customer collections, by year. This schedule should include calculations that support any deferral balances included in the applicant's calculations and the deferral balances at the end of the time period for which the applicant is requesting recovery of actual costs.
11. A schedule that shows a comparison of actual and projected SAVE capital expenditures to State Corporation Commission approved spending amounts, as of the end of the applicant's requested rate year. The applicant shall identify these amounts separately by case number.
12. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in this section. This summary shall include references and page numbers to each supporting item referenced.
Schedule 48 - Conservation and ratemaking efficiency plans
Instructions: Applications made pursuant to § 56-602 A and B or § 56-602 A and C of the Code of Virginia shall file the following:
a. Provide the revenue study or class cost of service study relied upon to establish annual per-customer fixed costs on an intra-class basis.
b. Provide detailed calculations supporting determinations of current class, normalized class, or proposed class revenues. Such calculations should clearly show current, normalized, or proposed annual billing determinants (by rate block and class). Reconcile per books billing units to adjusted billing units itemizing changes such as customer growth, weather, and BTU content and miscellaneous revenues.
c. Provide detailed calculations supporting the revenues produced by the rates, tariff design, or mechanism designed to effect the proposed conservation and ratemaking efficiency plan. Provide illustrative examples if necessary. Detail by rate schedule all miscellaneous charges and other revenues, if applicable. To the extent any of the information requested in this subsection of these instructions has been provided in subsection b of these instructions, it does not need to be restated.
d. Clearly identify (in the application or supporting testimony) the estimated impact on a typical affected customer's monthly bill from the proposed revenue requirement. The applicant should provide a billing analysis based on the average annualized bill for a typical customer for each class that details (i) the proposed customer bill impact and (ii) the current bill impact. The applicant should provide both the dollar amount increase as well as percentage increase. This should be provided in an electronic file with the underlying calculations and supporting information.
e. Provide the detailed calculations showing that the rates, tariff design, or mechanism designed to effect the proposed conservation and ratemaking plan is revenue neutral as defined in Chapter 25 (§ 56-600 et seq.) of Title 56 of the Code of Virginia.
f. Provide a clean and redline copy of all tariff pages that the applicant proposes to revise in this proceeding.
g. Provide a detailed narrative description and an analysis of the proposed conservation program and a cost benefit assessment of the program using the Total Resource Cost Test, the Program Administrator Test, the Participant Test, and the Rate Impact Measure Test. Detail and support all assumptions utilized in the cost benefit assessments.
h. Provide a detailed narrative describing the proposed normalization component that removes the effect of weather from the determination of conservation and energy efficiency results. Additionally, provide any supporting calculation of such component.
i. Provide a detailed narrative describing the proposed decoupling mechanism. Provide calculations and documentation that supports the applicant's actual or proposed decoupling rate. Identify the source for the authorized distribution revenues per customer from the applicant's most recent rate case and where that amount is utilized in the applicant's conservation and ratemaking efficiency plans (CARE) application.
j. Provide a detailed narrative describing the provisions addressing the needs of low-income or low-usage residential customers.
k. Provide a detailed narrative describing provisions ensuring that rates and services to nonparticipating classes of customers are not adversely impacted. Additionally, provide all studies or calculations supporting such conclusions.
l. Provide a detailed explanation of any recent or proposed changes in the per books accounting or regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes. Provide a separate explanation for each of the items that the applicant is proposing to recover through any applicant CARE Rider.
m. Provide a description of the accounting procedures and internal controls in place for each energy efficiency program that is administered by either a third party or by the applicant, including: (i) a description of the internal controls and procedures for rebate, incentive, and vendor payments for each newly approved energy efficiency program; (ii) a discussion of any changes in internal controls and procedures since the previous filing for existing energy efficiency programs; and (iii) support for how the applicant is ensuring that internal controls and procedures for all energy efficiency programs are functioning correctly.
n. Provide a detailed narrative and supporting workpapers showing how portfolio-level or plan-level costs are allocated to each program. For portfolio-level or plan-level costs that are unattributable to each program, provide a description of the cost and a narrative of the reasoning or justification of the cost being unattributable to each program.
o. Provide a schedule supporting all the income tax amounts included in the application, including tax credits, deferred taxes, and tax expense. For any ADIT balances included in the application, the applicant shall provide such information in a manner that separately identifies the types of book/tax differences included in these supporting ADIT balances and include a separate written narrative describing the nature of each identified book/tax difference.
p. If the application is for an amendment of an existing conservation and ratemaking efficiency plan, provide a schedule that summarizes , for each existing program for which cost recovery is sought, the following: (i) actual participation data , (ii) actual energy savings, and (iii) actual demand savings, as reflected in the applicant's most recent Evaluation, Measurement, and Verification (EM&V) report as filed. Also provide , for continuing programs, revised cost-benefit tests that incorporate actual utility-specific energy and demand savings and cost data , as reflected in the applicant's most recent EM&V report as filed.
q. Provide a transaction-level summary to facilitate the audit of actual costs electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions. If the CARE Rider includes a true-up, provide such information for costs incurred during the true-up period. Provide these costs grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
r. Provide a supporting schedule that shows the historical costs and customer collections by month for any applicant CARE Rider. This schedule should include calculations that support any deferral balance included in the applicant's calculations.
s. Provide an itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in this section. This summary shall include references and page numbers to each supporting item referenced.
Schedule 49 - Upstream natural gas supply infrastructure plans
Instructions: For any application made pursuant to § 56-609 of the Code of Virginia, the applicant shall provide the following information:
a. A detailed description, analysis, and quantification of the proposed eligible natural gas supply infrastructure projects and the timeline for the investment and completion of the proposed eligible natural gas supply infrastructure projects.
b. A detailed description, analysis, and quantification of the anticipated benefits of the proposed eligible natural gas supply infrastructure projects, including how such projects will result in (i) savings in the delivered cost of gas versus long-term forward market projections available to the applicant at the time of the capital investment or other alternatives; (ii) a reduction in the applicant's overall portfolio price volatility; (iii) reduction in the applicant's overall supply risk; or (iv) any combination thereof.
c. An estimated schedule for recovery of the related eligible natural gas supply infrastructure costs through the gas cost component of the applicant's rate structure or other mechanism, including proposed depreciation rates for investments in nondistribution asset classes.
d. A detailed description and analysis of how any revenue gains from the use of the pipelines by third parties will be used to offset eligible natural gas supply infrastructure costs.
e. Provide a schedule supporting all the income tax amounts included in the application, including tax credits, deferred taxes, and tax expense. For any ADIT balances included in the application, the applicant shall provide such information in a manner that separately identifies the types of book/tax differences included in these supporting ADIT balances and include a separate written narrative describing the nature of each identified book/tax difference.
f. The applicant's weather-normalized Virginia-jurisdictional firm sales demand for the calendar year preceding the application.
g. Each project's annual volume of natural gas and the resulting percentage of the applicant's weather-normalized Virginia-jurisdictional firm sales demand for the calendar year preceding the application.
h. The applicant's forecast of future expected base gas requirements for the applicant's Virginia jurisdiction over the effective period of the proposed plan.
i. The base gas purchases the applicant expects will be replaced with the natural gas acquired from the upstream project during the first year of the plan and for any additional years of the plan thereafter for which the applicant has estimates.
j. A calculation of the anticipated savings on a nominal and a present value basis. Provide the basis of and support for the energy price forecasts utilized in calculating anticipated savings.
k. Identification (in the application or supporting testimony) of the estimated impact on a typical affected customer's monthly bill from the proposed revenue requirement. The applicant should provide a billing analysis based on the average annualized bill for a typical customer for each class that details (i) the proposed customer bill impact and (ii) the current bill impact. The applicant should provide both the dollar amount increase as well as percentage increase. This should be provided in an electronic file with the underlying calculations and supporting information.
l. A Virginia-jurisdictional lifetime revenue requirement of the proposed plan by year, including all supporting calculations and assumptions. The applicant shall provide such information by program if applicable for the specific natural gas supply infrastructure plan filing.
m. A schedule of all projected and actual costs by type of cost and year, and by month to the extent available. The applicant shall provide such information by program if applicable, for the specific natural gas supply infrastructure plan filing.
n. Provide a transaction-level summary to facilitate the audit of actual costs electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions. If the application includes a true-up, provide such information for costs incurred during the true-up period. Provide these costs grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
o. Detailed information relative to the applicant's methodology for allocating the revenue requirement among rate classes and the design of class rates.
p. The applicant shall provide an illustrative journal entry example for each the following items: (i) costs; (ii) recoveries; (iii) deferrals; (iv) carrying charges; (v) current taxes; (vi) deferred taxes; and (vii) any other items included in the applicant's natural gas supply infrastructure plan filing. In addition, the company shall provide a separate accompanying description for each type of journal entry provided.
q. A detailed explanation of the applicant's proposed regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes. The applicant shall provide a separate explanation for each of the items included in the applicant's natural gas supply infrastructure plan filing and discuss any proposed regulatory treatments that differ from the applicant's per book method of accounting.
r. A detailed explanation of any recent or proposed changes in the per books accounting or regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes that have occurred since the applicant's previous natural gas supply infrastructure plan filing. The applicant shall provide a separate explanation for each of these items included in the applicant's natural gas supply infrastructure plan filing.
s. A clean and redline copy of all tariff pages that the applicant proposes to revise in this proceeding.
t. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in these instructions. This summary shall include references and page numbers to each supporting item referenced.
Schedule 50 – System expansion plans
Instructions: For any application made pursuant to § 56-610 et seq. of the Code of Virginia, the applicant shall provide the following information:
a. A detailed description and analysis of the proposed system expansion plan and the timeline for the investment and completion of the proposed system expansion plan.
b. A business rationale explaining that the system expansion plan is in the public interest and of benefit to the affected customers served under the plan.
c. The period the system expansion rider is proposed to be in effect.
d. The estimated eligible system expansion infrastructure costs and a maximum level of investment to be included.
e. The maximum level of investment per affected customer.
f. The projected number of customers by rate class that will be served.
g. A schedule for recovery of eligible system expansion infrastructure costs through a system expansion rider.
h. A methodology for deferral of unrecovered eligible system expansion infrastructure costs in accordance with § 56-612 of the Code of Virginia.
i. A description of each class of customers eligible to participate in the system expansion plan.
j. The period of time a customer will be considered an affected customer, as that term is defined in § 56-610 of the Code of Virginia.
k. Provide a schedule supporting all the income tax amounts included in the application, including tax credits, deferred taxes, and tax expense. For any ADIT balances included in the application, the applicant shall provide such information in a manner that separately identifies the types of book/tax differences included in these supporting ADIT balances and include a separate written narrative describing the nature of each identified book/tax difference.
l. Identification (in the application or supporting testimony) of the estimated impact on an affected customer's monthly bill from the proposed system expansion plan. The applicant should provide a billing analysis based on the average annualized bill for a typical customer for each class that details (i) the proposed customer bill impact and (ii) the current bill impact. The applicant should provide both the dollar amount increase as well as percentage increase. This should be provided in an electronic file with the underlying calculations and supporting information.
m. A Virginia-jurisdictional lifetime revenue requirement of the proposed plan by year, including all supporting calculations and assumptions. The applicant shall provide such information by program if applicable for the specific system expansion plan filing.
n. A schedule of all projected and actual costs by type of cost and year, and by month to the extent available. The applicant shall provide such information by program if applicable, for the specific system expansion plan filing.
o. Provide a transaction-level summary to facilitate the audit of actual costs electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions. If the application includes a true-up, provide such information for costs incurred during the true-up period. Provide these costs grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
p. Detailed information relative to the applicant's methodology for allocating the revenue requirement among rate classes and the design of class rates.
q. The applicant shall provide an illustrative journal entry example for each the following items: (i) costs; (ii) recoveries; (iii) deferrals; (iv) carrying charges; (v) current taxes; (vi) deferred taxes; and (vii) any other items included in the applicant's system expansion plan filing. In addition, the applicant shall provide a separate accompanying description for each type of journal entry provided.
r. A detailed explanation of the applicant's proposed regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes. The applicant shall provide a separate explanation for each of the items included in the applicant's system expansion plan filing and discuss any proposed regulatory treatments that differ from the applicant's per book method of accounting.
s. A detailed explanation of any recent or proposed changes in the per books accounting or regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes that have occurred since the applicant's previous system expansion plan filing. The applicant shall provide a separate explanation for each of these items included in the applicant's system expansion plan filing.
t. A clean and redline copy of all tariff pages that the applicant proposes to revise in this proceeding.
u. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in this section. This summary shall include references and page numbers to each supporting item referenced.
Schedule 51 – Biogas supply investment plans
Instructions: For any application made pursuant to § 56-625 of the Code of Virginia, the applicant shall file the following:
a. A detailed description and analysis of the proposed eligible biogas supply infrastructure projects and the timeline for the investment and completion of the proposed eligible biogas supply infrastructure projects.
b. A detailed description and analysis of the anticipated benefits of the proposed eligible biogas supply infrastructure projects, including how such projects will result in (i) a reduction in methane or carbon dioxide equivalent emissions from the biogas facility; (ii) an additional source of supply for the applicant; (iii) a beneficial use for the biogas; or (iv) any combination thereof. Provide calculations of the costs and benefits of each project.
c. An estimated schedule for recovery of the related eligible biogas supply infrastructure costs through the gas cost component of the applicant's rate structure or other mechanism, including proposed depreciation rates for investments in nondistribution asset classes.
d. A detailed description and analysis of how any revenue gains from the use of the pipelines by third parties will be used to offset eligible biogas supply infrastructure costs.
e. Provide a schedule supporting all the income tax amounts included in the application, including tax credits, deferred taxes, and tax expense. For any ADIT balances included in the application, the applicant shall provide such information in a manner that separately identifies the types of book/tax differences included in these supporting ADIT balances and include a separate written narrative describing the nature of each identified book/tax difference.
f. The applicant's weather-normalized Virginia-jurisdictional firm sales demand for the calendar year preceding the application.
g. Quantification of each project's annual volume of biogas and the resulting percentage of the applicant's weather-normalized Virginia-jurisdictional firm sales demand for the calendar year preceding the application.
h. Quantification of the base gas purchases the applicant expects will be replaced with the biogas acquired from the eligible biogas supply infrastructure projects during the first year of the plan and for any additional years of the plan thereafter for which the applicant has estimates.
i. If the proposed biogas supply investment plan includes the option for the applicant to receive the biogas or sell the biogas at market prices, provide a detailed description and analysis of how any revenue gains from the sale of the biogas will be used to reduce the cost of gas to the applicant's customers.
j. A Virginia-jurisdictional lifetime revenue requirement of the proposed plan by year, including all supporting calculations and assumptions. The applicant shall provide such information by program if applicable for the specific biogas supply investment plan filing.
k. Identification (in the application or supporting testimony) of the estimated impact on a typical affected customer's monthly bill from the proposed revenue requirement. The applicant should provide a billing analysis based on the average annualized bill for a typical customer for each class that details (i) the proposed customer bill impact and (ii) the current bill impact. The applicant should provide both the dollar amount increase as well as percentage increase. This should be provided in an electronic file with the underlying calculations and supporting information.
l. A schedule of all projected and actual costs by type of cost and year, and by month to the extent available. The applicant shall provide such information by program if applicable, for the specific biogas supply investment plan filing.
m. Provide a transaction-level summary to facilitate the audit of actual costs and the review of projected costs, electronically to the Division of Utility Accounting and Finance in an electronic spreadsheet with all underlying formulas and assumptions. If the application includes a true-up, provide such information for costs incurred during the true-up period. Provide these costs grouped separately by, but not limited to, the following categories: (i) program; (ii) project; (iii) work order; or (iv) cost type, if available.
n. If the applicant proposes to recover eligible biogas supply infrastructure costs through a recovery mechanism other than the gas cost component of the applicant's rate structure, provide detailed information relative to the applicant's methodology for allocating the revenue requirement among rate classes and the design of class rates.
o. The applicant shall provide an illustrative journal entry example for each the following items: (i) costs; (ii) recoveries; (iii) deferrals; (iv) carrying charges; (v) current taxes; (vi) deferred taxes; and (vii) any other items included in the applicant's biogas supply investment plan filing. In addition, the company shall provide a separate accompanying description for each type of journal entry provided.
p. A detailed explanation of the applicant's proposed regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes. The applicant shall provide a separate explanation for each of the items included in the applicant's biogas supply investment plan filing and discuss any proposed regulatory treatments that differ from the applicant's per book method of accounting.
q. A detailed explanation of any recent or proposed changes in the per books accounting or regulatory treatment of costs, recoveries, deferrals, carrying charges, current taxes, and deferred taxes that have occurred since the applicant's previous biogas supply investment plan filing. The applicant shall provide a separate explanation for each of these items included in the applicant's biogas supply investment plan filing.
r. A clean and redline copy of all tariff pages that the applicant proposes to revise in this proceeding.
s. An itemized summary that demonstrates how the applicant has fulfilled each of the filing requirements in this section. This summary shall include references and page numbers to each supporting item referenced.
Schedule 52 - Additional Schedules
Reserved for additional exhibits presented by the applicant to be labeled Schedule 52 et seq.
Statutory Authority
§ 12.1-13 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.
Forms (20VAC5-205)
Forms - Schedule 1 - Historical Profitability and Market Data (eff. 1/2024)
Forms - Schedule 2 - Interest and Cash Flow Coverage Data (eff. 1/2024)
Forms - Schedule 9 - Rate of Return Statement - Earnings Test - Per Books (eff. 1/2024)
Forms - Schedule 12 - Rate Base Statement - Earnings Test - Per Books (eff. 1/2024)
Forms - Schedule 15 - Schedule of Regulatory Assets (eff. 1/2024)
Forms - Schedule 16 - Detail of Regulatory Accounting Adjustments (eff. 1/2024)
Forms - Schedule 17 - Lead/Lag Cash Working Capital Calculation - Earnings Test (eff. 1/2024)
Forms - Schedule 18 - Balance Sheet Analysis - Earnings Test (eff. 1/2024)
Forms - Schedule 19 - Rate of Return Statement - Per Books (eff. 1/2024)
Forms - Schedule 21 - Rate of Return Statement - Reflecting Ratemaking Adjustments (eff. 1/2024)
Forms - Schedule 22 - Rate Base Statement - Per Books (eff. 1/2024)
Forms - Schedule 25 - Detail of Ratemaking Adjustments (eff. 1/2024)
Forms - Schedule 26 - Revenue Requirement Reconciliation (eff. 1/2024)
Forms - Schedule 27 - Lead/Lag Cash Working Capital Calculation - Adjusted (eff. 1/2024)
Forms - Schedule 28 - Balance Sheet Analysis - Adjusted (eff. 1/2024)
Forms – Schedule 40 a and b – Jurisdictional Cost of Service Study (eff. 1/2024)
Forms – Schedule 40c – Class Cost of Service Study (eff. 1/2024)
Forms - Schedule 46 - Initial or Amended SAVE Plans and SAVE Rider Adjustments (eff. 01/2024)