Administrative Code

Virginia Administrative Code
3/3/2024

Chapter 201. Rules Governing Utility Rate Applications and Annual Informational Filings of Investor-Owned Water Utilities

20VAC5-201-10. General filing instructions.

A. An applicant shall provide a notice of intent to file an application pursuant to 20VAC5-201-20 to the State Corporation Commission (commission) 60 days prior to the application filing date.

B. Applications pursuant to 20VAC5-201-20, 20VAC5-201-30, and 20VAC5-201-70 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.

4. All direct testimony by which the applicant expects to support the objectives sought.

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.

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 Test Filings made pursuant to 20VAC5-201-20 or 20VAC5-201-30.

D. An application filed pursuant to 20VAC5-201-20, 20VAC5-201-30, or 20VAC5-201-70 shall not be deemed filed per Chapter 10 (§ 56-232 et seq.) 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 additional five copies 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 file electronic media containing an electronic spreadsheet version of Schedules 1 through 5, 8 through 28, 36, 40, and 50, as applicable, with the commission's Division of Utility Accounting and Finance and the Division of Public Utility Regulation. Such electronic media containing calculations derived from formulas shall be provided in an electronic spreadsheet, including all underlying formulas and assumptions. Such electronic spreadsheet shall be commercially available and have common use in the utility industry. Additional versions of such schedules shall be made available to parties upon request.

I. All applications, including direct testimony and Schedules 1 through 28, 30 through 39, and 41 through 50, 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.

Two copies of Schedules 29 and 40 shall be submitted to the Division of Utility Accounting and Finance. Two copies of Schedule 40 shall be submitted to the Division of Public Utility Regulation.

J. For any application made pursuant to 20VAC5-201-20 and 20VAC5-201-70, the applicant shall serve a copy of the information required in subsection A and subdivisions B 1, B 2, and B 3 of this section, upon the attorney and 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 and upon the mayor or manager and the attorney 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. The applicant shall also serve each such official with a statement that a copy of the complete application may be obtained at no cost by making a request therefor orally or in writing to a specified company official or location. In addition, the applicant shall serve a copy of its complete application upon the Division of Consumer Counsel of the Office of the Attorney General of Virginia. All such service specified by this section 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.

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 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 29, Issue 23, eff. July 1, 2013; Volume 37, Issue 9, eff. January 1, 2021; Volume 40, Issue 7, eff. January 1, 2024.

20VAC5-201-15. Applicability to applications of investor-owned electric utilities.

This chapter shall not apply to applications filed by investor-owned electric utilities on or after January 1, 2021.

Statutory Authority

§ 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-16. Applicability to applications of investor-owned gas utilities.

This chapter shall not apply to applications filed by investor-owned gas utilities on or after January 1, 2024.

Statutory Authority

§ 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 40, Issue 7, eff. January 1, 2024.

20VAC5-201-20. General and expedited rate increase applications.

A. An application for a general or expedited rate increase pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia for a public utility having annual revenues exceeding $1 million, shall conform to the following requirements:

1. Exhibits consisting of Schedules 1 through 43 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 20VAC5-201-90.

2. An exhibit consisting of additional schedules may be submitted with the utility's direct testimony. Such exhibit shall be identified as Schedule 50 (this exhibit may include numerous subschedules labeled 50A et seq.).

B. The selection of a historic test period is up to the applicant. However, the use of overlapping test periods will not be allowed.

C. Applicants meeting each of the following criteria may omit Schedules 9 through 18 in rate applications: (i) the applicant has no Virginia jurisdictional regulatory assets on its books and (ii) the applicant is not seeking to establish a regulatory asset.

D. 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 20VAC5-201-90, 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 20VAC5-201-90.

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.

E. 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 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 29, Issue 12, eff. February 1, 2013; Volume 37, Issue 9, eff. January 1, 2021; Volume 40, Issue 7, eff. January 1, 2024.

20VAC5-201-30. 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 19, 21, 22, 24, 25, 27, 28, and 40 a and b as identified in 20VAC5-201-90. 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 (commission) within 120 days after the end of the test period. Accounting adjustments reflected in Column (2) of Schedule 21 shall incorporate the ratemaking treatment approved by the commission in the utility's last rate case and shall be calculated in accordance with the Expedited Rules of Schedule 25. Requirements found in 20VAC5-201-10 B 2, B 3, and B 4 may be omitted in Annual Informational Filings.

Applicants meeting each of the following criteria may omit Schedules 9, 11, 12, 14, and 15 through 18 in Annual Informational Filings: (i) the applicant has no Virginia jurisdictional regulatory assets on its books; and (ii) the applicant is not seeking to establish a regulatory asset.

Statutory Authority

§ 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2000; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021; Volume 40, Issue 7, eff. January 1, 2024.

20VAC5-201-40. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021; repealed, Virginia Register Volume 40, Issue 7, eff. Janaury 1, 2024.

20VAC5-201-50. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 29, Issue 12, eff. February 1, 2013; repealed, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-60. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; repealed, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-70. 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 20VAC5-201-90.

Statutory Authority

§§ 12.1-13 and of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-80. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; repealed, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-85. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; repealed, Virginia Register Volume 40, Issue 7, eff. January 1, 2024.

20VAC5-201-90. Instructions for schedules and exhibits for Chapter 201.

The following instructions for schedules and exhibits including those specifically set forth in 20VAC5-201-95 (Schedules 1 through 14), 20VAC5-201-100 (Schedules 15 through 22), and 20VAC5-201-110 (Schedules 24 through 28 and 40) are to be used in conjunction with this chapter:

Schedule 1 - Historic Profitability and Market Data

Instructions: Using the format of the attached schedule and the following definitions, provide the data for the test year and four prior fiscal years. The information shall be compatible with the latest stockholder's annual report (including any restatements). Information in Sections A and B shall be compiled for the corporate entity that raises equity capital in the marketplace. Information in Section C 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 & 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

Average Market Price** = (Yearly High + Yearly Low Price)/2

Dividend Yield = Dividends Per Share /Average Market Price**

Price Earnings Ratio = Average Market Price**/ Earnings Per Share

*Job Development Credits shall not be included as part of equity capital nor shall a deduction be made from earnings for a capital charge on these Job Development Credits in Schedule 1.

**An average based on monthly highs and lows is also acceptable. If this alternative is chosen, provide monthly market prices and sufficient data to show how the calculation was made.

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 the attached schedule. 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, 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 may need to be allocated from the parent's total preferred dividends. Specify the allocation factor and the methodology used in a footnote.

- Construction expenditures (Line 15) are net of AFUDC.

- Common dividends (Line 16) for a subsidiary shall be stated per books. If the subsidiary's dividend payout ratio differs from the consolidated company's payout ratio, show in a footnote the subsidiary's common dividends based on the consolidated company's payout ratio.

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 the attached schedule. 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 Stockholders' Annual Report (including any restatements). 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 short-term debt and revolving credit agreements (and similar arrangements) in Part B shall be based where possible 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 Job Development Credits cost is equal to the weighted cost of permanent capital (long-term debt, preferred stock, and common equity).

Schedule 4 - Schedules of Long-Term Debt, Preferred and Preference Stock, Job Development 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, its percentage of the total capital component, and effective cost based on the embedded 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 job development credits should be provided that reconciles to the per books balance of investment tax credits. These schedules should reflect 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.

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.

Schedule 6 - Public Financial Reports

Instructions: Provide copies 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 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.

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 of each component of the proposed capital structure, and explain all assumptions used.

Schedule 9 - Rate of Return Statement - Earnings Test - Per Books

Instructions: Use format of attached schedule.

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 attached schedule.

Schedule 11 adjustments in Column (2) shall reflect any financial differences between Generally Accepted Accounting Principles (GAAP) 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 Job Development Credit (JDC) Capital Expense shall be reflected in Schedule 11 Column (2), if applicable. Column (3) JDC Capital Expense shall be calculated as follows:

JDC Capital Expense = Rate Base (line 25) * weighted cost of JDC 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 JDC capital (Sch. 3) * weighted cost of debt component of the JDC 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 attached schedule.

Applicants with jurisdictional per books operating revenues of more than $150 million shall calculate cash working capital allowance using a lead/lag study. Schedules 17 and 18 shall be provided detailing the cash working capital computation for Schedule 12 Columns (1) and (3). Applicants with jurisdictional per books operating revenues between $20 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 $20 million may use a formula method to calculate cash working capital.


Schedule 14 - Rate Base Statement - Earnings Test - Adjusted to Regulatory Accounting Basis

Instructions: Use format of attached schedule.

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 Generally Accepted Accounting Principles and regulatory accounting as prescribed by the State Corporation Commission.

Schedule 15 - Schedule of Regulatory Assets and Per Books Deferral Pursuant to Enactment Clause 5 of Chapter 3 of the 2004 Acts of Assembly, Special Session I

Instructions: If applicable per Schedules 9 and 12 instructions. Use format of attached schedule.

All regulatory assets shall be individually listed with associated deferred income tax. Indicate whether the regulatory asset is included in financial reporting or is currently recognized for ratemaking purposes only.

Schedule 16 - Detail of Regulatory Accounting Adjustments

Instructions: If applicable per Schedules 9 and 12 instructions.

Use format of attached schedule.

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 attached schedule.

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 attached schedule.

All uses and sources of cash working capital shall be detailed in this schedule. The associated accumulated deferred income tax 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, or (iv) excluded from cost of service.

Schedule 19 - Rate of Return Statement - Per Books

Instructions: Use format of attached schedule.

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 attached schedule.

Schedule 21 Column (2) adjustments shall be separately identified and reflected in Schedule 25.

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, JDC capital expense shall be calculated as follows:

Total rate base (line 29) * weighted cost of JDC capital in Schedule 3 or Schedule 8

Applicants filing pursuant to 20VAC5-201-30 may omit Columns (4) and (5).

Schedule 22 - Rate Base Statement - Per Books

Instructions: Use format of attached schedule.

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 $20 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 $20 million may use a formula method to calculate cash working capital.

Schedule 24 - Rate Base Statement - Adjusted - Reflecting Ratemaking Adjustments

Instructions: Use format of attached schedule.

Cash working capital allowance shall be calculated using instructions in Schedule 22.

Schedule 25 - Detail of Ratemaking Adjustments

Instructions: Use format of attached schedule.

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. 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.

Detailed workpapers substantiating each adjustment shall be provided in Schedule 29.

Schedule 26 - Revenue Requirement Reconciliation

Instructions: Use format of attached lead schedule. An example of a supporting schedule is provided.

Provide a revenue reconciliation of each topic or subject that affects the revenue requirement. All components of each topic or subject shall be detailed (i.e., payroll and related = payroll, benefits, payroll taxes, and related tax effect) on a supporting schedule. Cash working capital shall be considered a separate topic or subject rather than as a component of each topic or subject.

Schedule 27 - Lead/Lag Cash Working Capital Calculation - Adjusted

Instructions: Use format of attached schedule.

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 attached schedule.

All uses and sources of cash working capital shall be detailed in this schedule. The associated accumulated deferred income tax 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 27.

Support for this schedule should 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, or (iv) excluded from cost of service. Include a brief description of the costs included in each account.

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 prefiled testimony. Such explanation shall reference any relevant Financial Accounting Standards Board ("FASB") statement or State Corporation 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 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 (O&M) expenses by primary account as specified by the appropriate federal or state Uniform System of Accounts (Federal Energy Regulatory Commission, Federal Communications Commission, National Association of Regulatory Commissioners) (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. Additionally, the applicant shall have an accounts payable ledger or schedule of all accounts payable for review at the applicant's office as of the date of the applicant's filing.

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 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

Instructions: For purposes of this schedule affiliate services shall be defined to include those services between regulated and nonregulated divisions of an incumbent utility. 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 narrative description of each affiliated service received or provided during the test period.

Provide a summary of affiliate transactions detailing costs by type of service provided (e.g., accounting, auditing, legal and regulatory, human resources, etc.) 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.

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. 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. 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 Investment Tax Credit (ITC) amortization.

Provide a detailed listing of individual accumulated deferred income tax 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 accumulated deferred income tax 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 accumulated deferred income tax amounts as of the end of the test period, on a total company and Virginia jurisdictional basis. Additionally, provide a detailed listing of individual accumulated deferred income tax 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 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 journal entry number, amount, USOA account, and explanation of charge.

Schedule 40 - Jurisdictional and Class Cost of Service Study

Instructions: Use format of attached schedule.

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 year 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 since 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 since 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 since the last rate case.

d. Applicant shall 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 copy of all tariff pages that the applicant proposes to revise in this proceeding, with revisions indicated by a dashed line (--) through proposed deletions and by underlining proposed additions.

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: Water or sewer utilities shall provide a sample billing analysis detailing the effect on each rate schedule at representative levels of consumption.

Schedule 50 - Additional Schedules

Reserved for additional exhibits presented by the applicant to be labeled Schedule 50 et seq.

Statutory Authority

§ 12.1-13 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; Errata, 25:12 VA.R. 2293 February 16, 2009; amended, Virginia Register Volume 29, Issue 12, eff. February 1, 2013; Volume 37, Issue 9, eff. January 1, 2021; Volume 40, Issue 7, eff. Janaury 1, 2024.

20VAC5-201-95. Schedules 1 through 14 and exhibits for Chapter 201.

The following schedules and exhibits are to be used in conjunction with this chapter.

COMPANY NAME
HISTORIC PROFITABILITY AND MARKET DATA
CASE NO. PUE------

Exhibit No.: ___________
Witness: _____________
Schedule 1

Consolidated Company Profitability and Capital Market Data

4th Year Prior

3rd Year Prior

2nd Year Prior

1st Year Prior

Test Period

A. Ratios

Return on Year End Equity

Return on Average Equity

Earnings Per Share

Dividends Per Share

Payout Ratio

Market Price of Common Stock:

Year's High

Year's Low

Average Price

Dividend Yield on Common Stock:

Price Earnings Ratio

B. External Funds Raised

External Funds Raised - Debt:

Dollar Amount Raised

Coupon Rate

Bond Rating(s)

(Rating Service)

External Funds Raised - Preferred Stock:

Dollar Amount Raised

Dividend Rate

Preferred Stock Rating(s)

(Rating Service)

External Funds Raised - Common Equity

Dollar Amount from Public Offering

Number Shares Issued

Average Offering Price

C. Subsidiary Data

Return on Year End Equity

Return on Average Equity

External Funds Raised - Bonds:

Dollar Amount Raised

Coupon Rate

Bond Rating(s)

(Rating Service)

External Funds Raised - Preferred Stock

Dollar Amount Raised

Dividend Rate

Preferred Stock Rating(s)

(Rating Service)

Equity Capital Transfer

From Parent

(Dollar Amount-Net)

COMPANY NAME
INTEREST AND CASH FLOW COVERAGE DATA
CASE NO. PUE------

Exhibit No.: ___________
Witness: _____________
Schedule 2

Coverage Ratios and Cash Flow Profile Data

4th Year Prior

3rd Year Prior

2nd Year Prior

1st Year Prior

Test Period

A. Consolidated Company Data

Interest Coverage Ratio

Pre-Tax

Cash Flow Coverage Ratios

a. Common Dividend Coverage

b. Cash Flow Coverage of Construction Expenditures

c. Cash After Dividends Coverage of Construction Expenditures

Data for Interest Coverage

1 Net Income

2 Income Taxes

3 Interest on Mortgages

4 Other Interest

5 Total Interest

6 Earnings Before Interest and Taxes (Lines 1+2+5)

Data for Cash Flow Coverage

7 Net Income

8 AFUDC

9 Amortization

10 Depreciation

11 Change in Deferred Taxes

12 Change in Investment Tax Credits

13 Preferred Dividends Paid

14 Cash Flow Generated (Lines 1-8+9+10+11+12-13)

15 Construction Expenditures

16 Common Dividends Paid

B. Subsidiary Data

Interest Coverage Ratio

Pre-Tax (Line 6 / Line 5)

Cash Flow Coverage Ratios

a. Common Dividend Coverage (Line 14 / 16)

b. Cash Flow Coverage of Construction Expenditures (Line 14 / 15)

c. Cash After Dividends Coverage of Construction Expenditures ((Lines 14-16) / 15)

Data for Interest Coverage

1 Net Income

2 Income Taxes

3 Interest on Mortgages

4 Other Interest

5 Total Interest

6 Earnings Before Interest and Taxes

Data for Cash Flow Coverage

7 Net Income

8 AFUDC

9 Amortization

10 Depreciation

11 Change in Deferred Taxes

12 Change in Investment Tax Credits

13 Preferred Dividends Paid

14 Cash Flow Generated

15 Construction Expenditures

16 Common Dividends Paid

COMPANY NAME
CAPITAL STRUCTURE AND COST OF CAPITAL STATEMENT - PER BOOKS AND AVERAGE
CASE NO. PUE------

Exhibit No.:______
Witness:______
Schedule 3

(1)

(2)

(3)

(4)

(5)

(6)

4th Year Prior

3rd Year Prior

2nd Year Prior

1st Year Prior

Test Period

Five-Quarter or 13-Month Ave

A. Capital Structure Per Balance Sheet ($)

Short-Term Debt
Customer Deposits
Other Current Liabilities
Long-Term Debt
Preferred & Preference Stock
Common Equity
Investment Tax Credits
Other Tax Deferrals
Other Liabilities
Total Capitalization

B. Capital Structure Approved for Ratemaking Purposes ($)

Short-Term Debt
Long-Term Debt
Preferred & Preference Stock
Job Development Credits
Common Equity
Other (specify)
Total Capitalization

C. Capital Structure Weights for Ratemaking Purposes

Short-Term Debt
Long-Term Debt
Preferred & Preference Stock
Job Development Credits
Common Equity
Other (specify)
Total Capitalization (100%)

D. Component Capital Cost Rates (%)

Short-Term Debt
Long-Term Debt
Preferred & Preference Stock
Job Development Credits
Common Equity (Authorized)
Other (specify)

E. Component Weighted Cost Rates (%)

Short-Term Debt
Long-Term Debt
Preferred & Preference Stock
Job Development Credits
Common Equity (Authorized)
Other (specify)
Weighted Cost of Capital

COMPANY NAME
RATE OF RETURN STATEMENT - EARNINGS TEST - PER BOOKS FOR THE TEST YEAR ENDED --/--/--
USING THIRTEEN MONTH AVERAGE RATE BASE AND COMMON EQUITY

Exhibit No.: ___________
Witness: _____________
Schedule 9

(1)

(2)

(3)

LINE NO.

Total Company

Non-Jurisdictional

Virginia Cost of Service Amount
(1)-(2)

1

OPERATING REVENUE

2

OPERATING REVENUE DEDUCTIONS

3

OPERATION & MAINTENANCE EXPENSE

4

DEPRECIATION & AMORTIZATION

5

FEDERAL INCOME TAXES

6

STATE INCOME TAXES

7

TAXES OTHER THAN INCOME TAXES

8

(GAIN)/LOSS ON DISPOSITION OF PROPERTY

9

TOTAL OPERATING REVENUE DEDUCTIONS

10

OPERATING INCOME

11

PLUS:

AFUDC

12

LESS:

CHARITABLE DONATIONS

13

INTEREST EXPENSE ON CUSTOMER DEPOSITS

14

INTEREST ON SUPPLIER REFUNDS

15

OTHER INTEREST EXPENSE/(INCOME)

16

ADJUSTED OPERATING INCOME

17

PLUS:

OTHER INCOME/
(EXPENSE)

18

LESS:

INTEREST EXPENSE-BOOKED

19

PREFERRED DIVIDENDS

20

JDC CAPITAL EXPENSE

n/a

n/a

n/a

n/a

n/a

n/a

n/a

21

INCOME AVAILABLE FOR COMMON EQUITY

22

ALLOWANCE FOR WORKING CAPITAL

23

PLUS:

NET UTILITY PLANT

24

LESS:

OTHER RATE BASE DEDUCTIONS

25

TOTAL AVERAGE RATE BASE

26

TOTAL AVERAGE CAPITAL

27

AVERAGE COMMON EQUITY CAPITAL

28

% RATE OF RETURN EARNED ON AVG. RATE BASE

29

% RATE OF RETURN EARNED ON AVG. COMMON EQ.

DEDUCTIONS

COMPANY NAME
RATE OF RETURN STATEMENT - EARNINGS TEST
ADJUSTED TO A REGULATORY ACCOUNTING BASIS FOR THE TEST YEAR ENDED --/--/--
USING THIRTEEN MONTH AVERAGE RATE BASE AND COMMON EQUITY

Exhibit No.: ____
Witness: ______
Schedule 11

(1)

(2)

(3)

LINE NO.

Per Books Virginia Juris. Cost of Service

Regulatory Accounting Adjustments

Virginia Jurisdictional Cost of Service after Adjustments
(1) (2)

1

OPERATING REVENUE

2

OPERATING REVENUE DEDUCTIONS

3

OPERATION & MAINTENANCE EXPENSE

4

DEPRECIATION & AMORTIZATION

5

FEDERAL INCOME TAXES

6

STATE INCOME TAXES

7

TAXES OTHER THAN INCOME TAXES

8

(GAIN)/LOSS ON DISPOSITION OF PROPERTY

9

TOTAL OPERATING REVENUE DEDUCTIONS

10

OPERATING INCOME

11

PLUS:

AFUDC

12

LESS:

CHARITABLE DONATIONS

13

INTEREST EXPENSE ON CUSTOMER DEPOSITS

14

INTEREST ON SUPPLIER REFUNDS

15

OTHER INTEREST EXPENSE/(INCOME)

16

ADJUSTED OPERATING INCOME

17

PLUS:

OTHER INCOME/(EXPENSE)

18

LESS:

INTEREST EXPENSE-BOOKED

19

PREFERRED DIVIDENDS

20

JDC CAPITAL EXPENSE

21

INCOME AVAILABLE FOR COMMON EQUITY

22

ALLOWANCE FOR WORKING CAPITAL

23

PLUS:

NET UTILITY PLANT

24

LESS:

OTHER RATE BASE DEDUCTIONS

25

TOTAL AVERAGE RATE BASE

26

TOTAL AVERAGE CAPITAL

27

AVERAGE COMMON EQUITY CAPITAL

28

% RATE OF RETURN EARNED ON AVG. RATE BASE

29

% RATE OF RETURN EARNED ON AVG. COMMON EQ.

COMPANY NAME
RATE BASE STATEMENT - EARNINGS TEST - PER BOOKS
THIRTEEN-MONTH AVERAGE PER BOOKS RATE BASE

Exhibit No.: _______
Witness: _________
Schedule 12

(1)

(2)

(3)

LINE NO.

Total Company

Non-Jurisdictional

Virginia Cost of Service Amount
(1)-(2)

1

ALLOWANCE FOR WORKING CAPITAL

2

MATERIAL AND SUPPLIES

3

CASH WORKING CAPITAL (LEAD LAG STUDY)

4

DEFERRED FUEL/DEFERRED GAS NET OF FIT

5

OTHER WORKING CAPITAL

6

TOTAL ALLOWANCE FOR WORKING CAPITAL

7

NET UTILITY PLANT

8

UTILITY PLANT IN SERVICE

9

ACQUISITION ADJUSTMENTS

10

CONSTRUCTION WORK IN PROGRESS

11

PLANT HELD FOR FUTURE USE

12

LESS:

ACCUMULATED PROVISION FOR DEPRECIATION

13

AND AMORTIZATION

14

CUSTOMER ADVANCES FOR CONSTRUCTION

15

TOTAL NET UTILITY PLANT

16

RATE BASE DEDUCTIONS

17

CUSTOMER DEPOSITS

18

SUPPLIER REFUNDS

19

ACCUMULATED DEFERRED INCOME TAXES

20

OTHER COST FREE CAPITAL

21

TOTAL RATE BASE DEDUCTIONS

22

TOTAL AVERAGE RATE BASE

COMPANY NAME
RATE BASE STATEMENT - EARNINGS TEST
ADJUSTED TO A REGULATORY ACCOUNTING BASIS
THIRTEEN-MONTH AVERAGE PER BOOKS RATE BASE

Exhibit No.: _______
Witness: _________
Schedule 14

(1)

(2)

(3)

LINE NO.

Per Books Virginia Juris. Cost of Service

Regulatory Accounting Adjustments

Virginia Jurisdictional Cost of Service after Adjustments
(1) (2)

1

ALLOWANCE FOR WORKING CAPITAL

2

MATERIAL AND SUPPLIES

3

CASH WORKING CAPITAL (LEAD LAG STUDY)

4

DEFERRED FUEL/DEFERRED GAS NET OF FIT

5

OTHER WORKING CAPITAL

6

TOTAL ALLOWANCE FOR WORKING CAPITAL

7

NET UTILITY PLANT

8

UTILITY PLANT IN SERVICE

9

ACQUISITION ADJUSTMENTS

10

CONSTRUCTION WORK IN PROGRESS

11

PLANT HELD FOR FUTURE USE

12

LESS:

ACCUMULATED PROVISION FOR DEPRECIATION

13

AND AMORTIZATION

14

CUSTOMER ADVANCES FOR CONSTRUCTION

15

TOTAL NET UTILITY PLANT

16

RATE BASE DEDUCTIONS

17

CUSTOMER DEPOSITS

18

SUPPLIER REFUNDS

19

ACCUMULATED DEFERRED INCOME TAXES

20

OTHER COST FREE CAPITAL

21

TOTAL RATE BASE DEDUCTIONS

22

TOTAL AVERAGE RATE BASE

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-100. Schedules 15 through 22 and exhibits for Chapter 201.

The following schedules and exhibits are to be used in conjunction with this chapter.

COMPANY NAME
SCHEDULE OF REGULATORY ASSETS
AS OF --/--/--

Exhibit No.: ___
Witness: _____
Schedule 15

(1)

(2)

(3)

(4)

(5)

(6)

Account Number

Description

Start of Year Date System Amount

Year Juris. Factor

Start of Year Date Juris. Amount

Test Year Amorti-zation Expense

Test Year Accruals

End of Year Date Adjusted Amount

_____

Individual Regulatory Asset

_____

Related Deferred Income Tax

_____

_____

Individual Regulatory Asset

_____

Related Deferred Income Tax

_____

_____

Individual Regulatory Asset

_____

Related Deferred Income Tax

Totals

COMPANY NAME
DETAIL OF REGULATORY ACCOUNTING ADJUSTMENTS
REFLECTED IN COL. (--) OF SCHEDULES -- AND --

Exhibit No.: _________
Witness: ___________
Schedule 16

ADJ. NO.

ADJUSTMENT

AMOUNT

INCOME ADJUSTMENTS

OPERATING REVENUE ADJUSTMENTS

OPERATION AND MAINTENANCE EXPENSE ADJUSTMENTS

DEPRECIATION EXPENSE ADJUSTMENTS

INCOME TAXES ADJUSTMENTS

TAXES OTHER THAN INCOME ADJUSTMENTS

GAIN ON PROPERTY DISPOSITION ADJUSTMENTS

CHARITABLE DONATIONS ADJUSTMENTS

OTHER INTEREST EXPENSE/(INCOME) ADJUSTMENTS

INTEREST EXPENSE ADJUSTMENTS

PREFERRED DIVIDENDS ADJUSTMENTS

JDC CAPITAL EXPENSE ADJUSTMENTS

ALLOWANCE FOR WORKING CAPITAL ADJUSTMENTS

ELECTRIC PLANT IN SERVICE ADJUSTMENTS

PLANT HELD FOR FUTURE USE ADJUSTMENTS

CONSTRUCTION WORK IN PROGRESS ADJUSTMENTS

ACCUMULATED DEPRECIATION AND AMORTIZATION ADJUSTMENTS

OTHER RATE BASE DEDUCTIONS ADJUSTMENTS

COMMON EQUITY CAPITAL ADJUSTMENTS

COMPANY NAME
LEAD/LAG CASH WORKING CAPITAL CALCULATION - EARNINGS TEST
FOR THE YEAR ENDED --/--/--
SUPPORTING COLUMN -- OF SCHEDULE --

Exhibit No.:____
Witness:_______
Schedule 17

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Virginia Juris. Per Books Amounts

Per Books Regulatory Accounting Adjustments

Amounts After Adj.

Average Daily Amount

Expense (Lead)/Lag Days

Revenue Lag

Net (Lead)/Lag Days

Working Capital (Provided)/
Required

OPERATING EXPENSES

O&M Expenses:

Account # - Fuel Clause

Account # - Fuel Clause

Account # - Fuel Clause

Account # - Deferred Fuel

Payroll Expense

Benefits and Pension Expense

OPEB Expense

Regulatory Asset Amortization Expense

Uncollectible Expense

Stores Issues

Stored Undistributed

Accrued Vacation Expense

Prepaid Insurance Amortization Expense

Worker's Compensation Expense

Directors' Deferred Compensation Exp.

Storm Damage Expense

Transition Cost Expense

Restructuring Expense

Contingent Liabilities

Other O&M Expenses

Depreciation Expense:

Depreciation Expense

Amortization Expense

Amortization Expense

Amortization of Regulatory Assets

Federal Income Taxes:

Current

Deferred

DFIT on items excluded from Rate Base

Deferred ITC

State Income Tax Expense

Taxes Other Than Income:

Property Tax Expense

Valuation Tax Expense

Business and Occupation Tax Expense

Payroll Tax Expense

Other Taxes

AFUDC

Gain/Loss of Disposition of Property

Charitable Donations

Interest on Customer Deposits

Other Expense/Income (A-t-l)

Other Income/Expense (B-t-l)

Interest Expense

Preferred Dividends

JDC Expense

Income Available for Common Equity

Totals

Plus: Customer Utility Taxes

BALANCE SHEET ITEMS

TOTAL CASH WORKING CAPITAL

COMPANY NAME
BALANCE SHEET ANALYSIS - EARNINGS TEST
FOR THE THIRTEEN MONTHS ENDED --/--/--

Exhibit No.:
Witness:___
Schedule 18

Additional Uses of Average Cash Working Capital

Month Prior to Test Yr.

First Month of Test Yr.

Second Month of Test Yr.

Third Month of Test Yr.

Fourth Month of Test Yr.

Fifth Month of Test Yr.

Sixth Month of Test Yr.

Seventh Month of Test Yr.

Eighth Month of Test Yr.

Ninth Month of Test Yr.

Tenth Month of Test Yr.

Eleventh Month of Test Yr.

Twelfth Month of Test Yr.

Thirteen Month Average

Account
Number

Account Title

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Total Additional Uses of Average Cash Working Capital

Additional Sources of Average Cash Working Capital

Account
Number

Account Title

Thirteen Month Average

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Total Additional Sources of Average Cash Working Capital

Net (Source)/Use of Average Cash Working Capital

COMPANY NAME
RATE OF RETURN STATEMENT - PER BOOKS
FOR THE TEST YEAR ENDED --/--/--

Exhibit No.: _______
Witness:__________
Schedule 19

(1)

(2)

(3)

Line No.

Total Company

Non-Jurisdictional

Virginia Cost of Service Amount
(1)-(2)

1

OPERATING REVENUES

2

BASE RATE REVENUES

3

FUEL REVENUES

4

LATE PAYMENT FEES

5

OTHER OPERATING REVENUES

6

TOTAL OPERATING REVENUES

7

OPERATING REVENUE DEDUCTIONS

8

OPERATION & MAINTENANCE EXPENSE

9

DEPRECIATION & AMORTIZATION

10

FEDERAL INCOME TAXES

11

STATE INCOME TAXES

12

TAXES OTHER THAN INCOME TAXES

13

GAIN)/LOSS ON DISPOSITION OF PROPERTY

14

TOTAL OPERATING REVENUE DEDUCTIONS

15

OPERATING INCOME

16

PLUS:

AFUDC

17

LESS:

CHARITABLE DONATIONS

18

INTEREST EXPENSE ON CUSTOMER DEPOSITS

19

OTHER INTEREST EXPENSE/(INCOME)

20

ADJUSTED OPERATING INCOME

21

PLUS:

OTHER INCOME/(EXPENSE)

22

LESS:

INTEREST EXPENSE

23

PREFERRED DIVIDENDS

24

JDC CAPITAL EXPENSE

25

INCOME AVAILABLE FOR COMMON EQUITY

26

ALLOWANCE FOR WORKING CAPITAL

27

PLUS:

NET UTILITY PLANT

28

LESS:

OTHER RATE BASE DEDUCTIONS

29

TOTAL RATE BASE

30

TOTAL CAPITAL

31

COMMON EQUITY CAPITAL

32

% RATE OF RETURN EARNED ON RATE BASE

33

% RATE OF RETURN EARNED ON COMMON EQUITY

34

% EQUITY RETURN AUTHORIZED

COMPANY NAME
RATE OF RETURN STATEMENT
REFLECTING RATEMAKING ADJUSTMENTS
FOR THE TEST YEAR ENDED --/--/--

Exhibit No.:
Witness:___
Schedule 21

(1)

(2)

(3)

(4)

(5)

LINE NO.

Virginia Juris. Cost of Service

Ratemaking Adjustments

Virginia Jurisdictional Cost of Service after Adjustments
(1) (2)

Revenue Requirement for a --% ROE

Amounts after Revenue Requirement
(3) (4)

1

OPERATING REVENUES

2

BASE RATE REVENUES

3

FUEL REVENUES

4

LATE PAYMENT FEES

5

OTHER OPERATING REVENUES

6

TOTAL OPERATING REVENUES

7

OPERATING REVENUE DEDUCTIONS

8

OPERATION & MAINTENANCE EXPENSE

9

DEPRECIATION & AMORTIZATION

10

FEDERAL INCOME TAXES

11

STATE INCOME TAXES

12

TAXES OTHER THAN INCOME TAXES

13

(GAIN)/LOSS ON DISPOSITION OF PROPERTY

14

TOTAL OPERATING REVENUE DEDUCTIONS

15

OPERATING INCOME

16

PLUS:

AFUDC

17

LESS:

CHARITABLE DONATIONS

18

INTEREST EXPENSE ON CUSTOMER DEPOSITS

19

OTHER INTEREST EXPENSE/(INCOME)

20

ADJUSTED OPERATING INCOME

21

PLUS:

OTHER INCOME/(EXPENSE)

22

LESS:

INTEREST EXPENSE

23

PREFERRED DIVIDENDS

24

JDC CAPITAL EXPENSE

25

INCOME AVAILABLE FOR COMMON EQUITY

26

ALLOWANCE FOR WORKING CAPITAL

27

PLUS: NET UTILITY PLANT

28

LESS: OTHER RATE BASE DEDUCTIONS

29

TOTAL RATE BASE

30

TOTAL CAPITAL

31

COMMON EQUITY CAPITAL

32

% RATE OF RETURN EARNED ON RATE BASE

33

% RATE OF RETURN EARNED ON COMMON EQUITY

34

% EQUITY RETURN AUTHORIZED

COMPANY NAME
RATE BASE STATEMENT - PER BOOKS
AS OF --/--/--

Exhibit No.:
Witness:___
Schedule 22

(1)

(2)

(3)

LINE NO.

Total Company

Non-Jurisdictional

Virginia Cost of Service Amount
(1)-(2)

1

ALLOWANCE FOR WORKING CAPITAL

2

MATERIAL AND SUPPLIES

3

CASH WORKING CAPITAL (LEAD LAG STUDY)

4

DEFERRED FUEL/DEFERRED GAS NET OF FIT

5

OTHER WORKING CAPITAL

6

TOTAL ALLOWANCE FOR WORKING CAPITAL

7

NET UTILITY PLANT

8

UTILITY PLANT IN SERVICE

9

ACQUISITION ADJUSTMENT

10

CONSTRUCTION WORK IN PROGRESS

11

PLANT HELD FOR FUTURE USE

12

LESS:

ACCUMULATED PROVISION FOR DEPRECIATION

13

AND AMORTIZATION

14

CUSTOMER ADVANCES FOR CONSTRUCTION

15

TOTAL NET UTILITY PLANT

16

RATE BASE DEDUCTIONS

17

CUSTOMER DEPOSITS

18

SUPPLIER REFUNDS

19

ACCUMULATED DEFERRED INCOME TAXES

20

OTHER COST FREE CAPITAL

21

TOTAL RATE BASE DEDUCTIONS

22

TOTAL RATE BASE

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

20VAC5-201-110. Schedules 24 through 28 and 40 and exhibits for Chapter 201.

The following schedules and exhibits are to be used in conjunction with this chapter.

COMPANY NAME
RATE BASE STATEMENT REFLECTING RATEMAKING ADJUSTMENTS AS OF --/--/--

Exhibit No.:
Witness:
Schedule 24

(1)

(2)

(3)

LINE NO.

Per Books Virginia Juris. Cost of Service

Ratemaking Adjustments

Virginia Jurisdictional Cost of Service after Adjustments
(1)+(2)

1

ALLOWANCE FOR WORKING CAPITAL

2

MATERIAL AND SUPPLIES

3

CASH WORKING CAPITAL (LEAD LAG STUDY)

4

DEFERRED FUEL/DEFERRED GAS NET OF FIT

5

OTHER WORKING CAPITAL

6

TOTAL ALLOWANCE FOR WORKING CAPITAL

7

NET UTILITY PLANT

8

UTILITY PLANT IN SERVICE

9

ACQUISITION ADJUSTMENT

10

CONSTRUCTION WORK IN PROGRESS

11

PLANT HELD FOR FUTURE USE

12

LESS:

ACCUMULATED PROVISION FOR DEPRECIATION

13

AND AMORTIZATION

14

CUSTOMER ADVANCES FOR CONSTRUCTION

15

TOTAL NET UTILITY PLANT

16

RATE BASE DEDUCTIONS

17

CUSTOMER DEPOSITS

18

SUPPLIER REFUNDS

19

ACCUMULATED DEFERRED INCOME TAXES

20

OTHER COST FREE CAPITAL

21

TOTAL RATE BASE DEDUCTIONS

22

TOTAL RATE BASE

Notes:
Column (1) amounts for utilities subject to § 56-585.1 of the Code of Virginia shall come from Schedule 23 Column (4) and shall exclude Rate Adjustment Clauses.

Column (1) amounts for utilities not subject to § 56-585.1 of the Code of Virginia shall come from Schedule 22 Column (3).

COMPANY NAME
DETAIL OF RATEMAKING ADJUSTMENTS
REFLECTED IN COL. (--) OF SCHEDULES -- AND --

Exhibit No.: __
Witness:___
Schedule 25

ADJ. NO.

ADJUSTMENT

AMOUNT

INCOME ADJUSTMENTS

OPERATING REVENUE ADJUSTMENTS

OPERATION AND MAINTENANCE EXPENSE ADJUSTMENTS

DEPRECIATION EXPENSE ADJUSTMENTS

INCOME TAX ADJUSTMENTS

TAXES OTHER THAN INCOME ADJUSTMENTS

GAIN ON PROPERTY DISPOSITION ADJUSTMENTS

CHARITABLE DONATION ADJUSTMENTS

OTHER INTEREST EXPENSE/(INCOME) ADJUSTMENTS

INTEREST EXPENSE ADJUSTMENTS

PREFERRED DIVIDENDS ADJUSTMENTS

JDC CAPITAL EXPENSE ADJUSTMENTS

ALLOWANCE FOR WORKING CAPITAL ADJUSTMENTS

ELECTRIC PLANT IN SERVICE ADJUSTMENTS

PLANT HELD FOR FUTURE USE ADJUSTMENTS

CONSTRUCTION WORK IN PROGRESS ADJUSTMENTS

ACCUMULATED DEPRECIATION AND AMORTIZATION ADJUSTMENTS

OTHER RATE BASE DEDUCTIONS ADJUSTMENTS

COMMON EQUITY CAPITAL

COMPANY NAME
REVENUE REQUIREMENT RECONCILIATION

Schedule 26

Revenue Requirement

Per Books Revenue Deficiency

Capital Structure Changes

Rate Base Update

Other Rate Base Adjustments

Payroll, Benefits and Payroll Taxes

Other Business and Affiliate Charges

Storm Damage

Decommissioning

Other Revenue Adjustments

Other Miscellaneous Adjustments

Company Proposed Revenue Requirement

Note: The topics or subjects listed above are included for illustrative purposes. Applicant's schedule should include company specific topics/subjects.

FOR ILLUSTRATIVE PURPOSES ONLY

COMPANY NAME
REVENUE REQUIREMENT RECONCILIATION
Supporting Schedule

Supporting Schedule 26

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Amounts

Net of Tax Overall Cost of Capital

Required AOI
(1)*(2)

1-Fit Rate

Subtotal
(3)*(4)

Gross-up Factor

Revenue Requirement
(5)/(6)

Per Books Revenue Deficiency

Capital Structure Items:
ROE from 11.5% to 10.5% (midpoint of range)
Capital Structure Changes

Total Capital Structure Charges

Rate Base Update:

Rate Base Update
Customer Growth
Late Payment Revenues
Depreciation Expense
Property Tax Expense
Liberalized Depreciation
Liberalized Depreciation - New Rates
Clover Allocation Factor
Accumulated Depreciation - Current Rates

Total Rate Base Update

Other Rate Base Adjustments:

Deferred Fuel at 100%
Contra-AFC Connection
Cash Working Capital on Sch. D and E

Total other Rate Base Adjustments

Payroll, Benefits and Payroll Taxes:

Employee Payroll
Fringe Benefits
Incentive Pay
OPEB Expense
Payroll Taxes

Total Payroll, Benefits and Payroll Taxes

Storm Damage:

Storm Damage Expense & Related OT
Storm Damage Payroll Taxes

Total Storm Damage

Other Revenue Adjustments:

Transmission Service Revenues
Wholesale Contract Renegotiations

Total Other Revenue Adjustments

Other Miscellaneous Adjustments

FIT on per books JDC
FIT on other Interest and Preferred Dividends
Computer Leases
Obsolete Inventory Amortization
Nonoperating Expenses
Fuel Handling Expense
West Virginia State Income Taxes
Interest on Customer Deposits
Advertising Expense
Miscellaneous
Charitable Donations

Total Other Miscellaneous Adjustments

Company Proposed Revenue Requirement

COMPANY NAME
LEAD/LAG CASH WORKING CAPITAL CALCULATION - ADJUSTED
FOR THE YEAR ENDED --/--/--
SUPPORTING COLUMN -- OF SCHEDULE --

Exhibit No.:____
Witness:_______
Schedule 27

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Virginia Juris. Per Books Amounts

Rulemaking Adjustments

Amounts After Adj.

Average Daily Amount

Expense (Lead)/Lag Days

Revenue Lag

Net (Lead)/Lag Days

Working Capital (Provided)/ Required

OPERATING EXPENSES

O&M Expenses:

Account # - Fuel Clause
Account # - Fuel Clause
Account # - Fuel Clause
Account # - Deferred Fuel
Payroll Expense
Benefits and Pension Expense
OPEB Expense
Regulatory Asset Amortization Expense
Uncollectible Expense
Stores Issues
Stored Undistributed
Accrued Vacation Expense
Prepaid Insurance Amortization Expense
Worker's Compensation Expense
Directors' Deferred Compensation Exp.
Storm Damage Expense
Transition Cost Expense
Restructuring Expense
Contingent Liabilities
Other O&M Expenses

Depreciation Expense:

Depreciation Expense
Amortization Expense
Amortization Expense
Amortization of Regulatory Assets

Federal Income Taxes:

Current
Deferred
DFIT on items excluded from Rate Base
Deferred ITC

State Income Tax Expense

Taxes Other Than Income:

Property Tax Expense
Valuation Tax Expense
Business and Occupation Tax Expense
Payroll Tax Expense
Other Taxes

AFUDC

Gain/Loss of Disposition of Property

Charitable Donations

Interest on Customer Deposits

Other Expense/Income (A-t-l)

Other Income/Expense (B-t-l)

Interest Expense

Preferred Dividends

JDC Expense

Income Available for Common Equity

Totals

Plus: Customer Utility Taxes

BALANCE SHEET ITEMS

TOTAL CASH WORKING CAPITAL

COMPANY NAME
BALANCE SHEET ANALYSIS – ADJUSTED
AS OF --/--/--

Exhibit No.:
Witness:___
Schedule 28

First Month

Second Month

Third Month

Fourth Month

Fifth Month

Sixth Month

Seventh Month

Eighth Month

Ninth Month

Tenth Month

Eleventh Month

Twelfth Month

Thirteen Month Average

Additional Uses of Cash Working Capital

Account
Number

Account Title

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Individual Uses of Cash Working Capital

Total Additional Uses of Average Cash Working Capital

Additional Sources of Average Cash Working Capital

Account
Number

Account Title

Thirteen Month Average

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Individual Sources of Cash Working Capital

Total Additional Sources of Cash Working Capital

Net (Source)/Use of Cash Working Capital

COMPANY NAME
JURISDICTIONAL COST OF SERVICE STUDY
(METHODOLOGY) COST ALLOCATION STUDY
CASE NO. PUE------

Exhibit No.:
Witness:___
Schedule 40 A and B

(1)

(2)

(3)

Line No.

Description

Total System

Virginia Non-Juris.

Virginia Per Books Amount
(1)-(2)

10

Operating Revenues

20

30

Operating and Maintenance Expense

40

Depreciation Expense

50

Amortization

60

Federal Income Taxes

70

State Income Taxes

80

Taxes Other than Income

90

100

Total Operating and Maintenance Expense

110

120

Net Operating Income

130

140

Adjustments to Operating Income

150

160

Add:

AFUDC

170

Less:

Charitable Donations

180

Interest Exp. - Customer Dep.

190

200

Adjusted Net Operating Income

210

220

Rate Base

230

240

ROR Earned on Rate Base

COMPANY NAME
CLASS COST OF SERVICE STUDY (METHODOLOGY) COST ALLOCATION STUDY
CASE NO. PUE------

Exhibit No.:
Witness:
Schedule 40C

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Line No.

Description

Virginia Juris.

Class

Class

Class

Class

Class

Allocation Basis

10

Operating Revenues

20

30

Operating Expense

40

Depreciation Expense

50

Amortization

60

Federal Income Taxes

70

State Income Taxes

80

Taxes Other than Income

90

100

Total Operating and Maintenance Expense

110

120

Net Operating Income

130

140

Adjustments to Operating Income

150

160

Add:

AFUDC

170

Less:

Charitable Donations

180

Interest Exp. - Customer Dep.

190

200

Adjusted Net Operating Income

210

220

Rate Base

230

240

ROR Earned on Rate Base

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 25, Issue 9, eff. January 1, 2009; amended, Virginia Register Volume 37, Issue 9, eff. January 1, 2021.

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