26 Del. Admin. Code § 1002-B-5.0

Current through Register Vol. 27, No. 12, June 1, 2024

Section 1002-B-5.0 - Net Operating Income Summary

5.1 A summary of net operating income must be provided on Schedule 3.

5.1.1 The "Actual for Test Year" column means actual "per books"revenue and expense for the historical test year selected without exception.

5.1.2 Operating revenues and expenses should be set forth by type of service or customer class and operating expenses by type. Supplemental schedules may be used for this purpose so long as they conform to the format of Schedule 3.

5.1.3 Proposed adjustments to test year operating revenues or experience must be fully explained on schedule 3A. Supporting documentation should be provided when available such as formal wage agreements, copies of invoices reflecting higher prices for materials purchased, tax notices, etc.

5.1.4 A calculation of Federal and State Income Taxes must be submitted on Schedule 3B.

5.1.5 Provide a narrative explanation of any Schedule "M" items (items included in determining Federal and State Income Taxes not included in Income Available for Return e.g. capitalized portion of Social Security taxes and relief and pensions (line 8), depreciation on IDC, S/S taxes and R/P capitalized (line 6), also any surplus items affecting taxable income not included in line 1) and if deferred taxes are provided on the utility's books, explain the nature of the deferred taxes and the amounts related to the test year periods as set forth on Schedule 3B.

5.1.6 Provide a calculation of present annual revenues based on test year volume of sales at present tariff rates and also showing the revenues expected to be derived from proposed rates on Schedule 3C. Utilities which have "block" rates are to base this calculation on a bill analysis for the test year selected.

5.2 Provide a narrative statement covering cost increases expected to be incurred over a two-year period following the end of the test year, but not included in the operating expense claim for monopoly services not subject to competition.

26 Del. Admin. Code § 1002-B-5.0