Rule 515-7-5-.07 - Applications for Disbursements from a Universal Service Fund: Electing Distribution Company(1) An EDC seeking a distribution from the USF shall file with the Commission an Annual USF Facilities Expansion Plan ("Annual Plan") by September 1st of each year for the anticipated USF expansion projects for the 12-month period of January 1 through December 31 of the following year. USF funds shall only be available to aid in the construction of the approach main line-extension, service main, natural gas fueling infrastructure for motor vehicles, or compressed natural gas ("CNG") station, or Liquefied Natural Gas ("LNG") facilities for any proposed facilities expansion. The filing for Annual Plan projects will use engineering estimates as part of the cost review. The Commission shall determine if the projects are in the public interest and may accept, reject, modify the proposed projects. The disbursements to the EDC for completed projects will be for actual costs that are below the EDC's 5% budget cap for that Annual Plan year. The disbursements for completed projects will be limited to unencumbered funds in the USF. For any amounts that exceed the 5% budget cap or the unencumbered USF funds, those amounts will go into the EDC's rate base for ratemaking purposes. Any Plant recovered through USF disbursements shall not be recovered in the EDC's rate base for ratemaking purposes. The EDC may file revisions to its Annual Plan as necessary during the year. The Commission shall determine whether any such revisions are in the public interest, and may accept, reject, or modify the proposed projects. In establishing its Annual Plan, the EDC shall consider the following: (a) The facility needs of the system to ensure the reliability of the distribution system and service to customers;(b) The facility needs of the system to ensure the availability of a diversity of gas supply and interstate capacity options to serve the system;(c) The forecasted growth requirements of the EDC's system based on historical growth trends;(d) The forecasted growth requirements of the EDC's system based on input from developers and builders regarding their future development plans; and(e) The forecasted growth requirements of the EDC's system based on input from state and local community officials regarding economic development needs and the forecasted growth of local communities.(2) This application shall contain the following minimum filing requirements ("MFR"): (a) MFR-1 will contain a detailed written technical description of the project (s). The technical description will include, but not be limited to, a discussion of the type, size, and length of the proposed facilities and the proposed route and the community and/or company that will be served. The technical description will affirmatively state if a proposed approach main line-extension is new main or an extension or expansion of existing main as defined in 515-7-5-.01(j)(k). There will be a discussion of the type and size of main proposed to be replaced. The technical description will affirmatively state if the EDC is or is not certificated to serve in the counties where the facilities will be constructed.(b) MFR-2 will provide the EDC's capital budget for the relevant fiscal year. If the capital budget for the relevant fiscal year of the Annual Plan is not available, then the current fiscal year's capital budget will be provided. When the capital budget for the relevant Annual Plan fiscal year is available, it will be filed in the docket number for the relevant Annual Plan.(c) MFR-3 the EDC will set up a link on its website with a description of the Annual Plan and use an online public stakeholder process to help identify potential projects across the State of Georgia. The public survey will begin April 1st and close June 30th each year. As part of the Annual Plan filing, the EDC will include stakeholder information as an electronic Excel spreadsheet that will list the following, if available: ii. Date Responded to Surveyiii. Company/Organization Address, Phone #, and Email Addressvii. Project Address (If Known)viii. Project Closest Intersectionix. Year Natural Gas Service Neededx. Economic Development Details in Project Area(d) MFR-4 will provide a detailed map of the project(s) that includes, but is not limited to, the location of the project, route of the line-extension, or location of the CNG station(s).(e) MFR-5 will provide economic development data related to the project(s) to include, if available, capital investment by a natural gas customer or potential customers in land, builders, equipment, natural gas equipment, and training, the number of jobs that will be created as a result of natural gas service, and the estimated annual payroll of the new customer. The economic development data can discuss known growth in the project area(s), such as known residential and commercial developments.(f) MFR-6 will provide a Project Financial Analysis ("PFA") electronic Excel spreadsheet with live cells and formulas intact. The PFA spreadsheet will include multiple worksheets with the following:i. Separate worksheets for each proposed project to include a detailed estimated engineering breakout of construction costs.ii. The last worksheet will provide a Cost to Serve table with each project name, the total estimated engineering costs, the gross up for income taxes, the gross up for financing costs, and the total estimated project cost. The total estimated project cost for all projects will be totaled. The proposed projects will be listed alphabetically.iii. The EDC may use either estimated engineering costs when calculating cost to serve for an approach main corridor project or CNG station or filed costs when supplementing a Tariff Rule 7 request or Tariff Rule 8 request.(g) MFR-7 will provide a Project Technical Analysis ("PTA") electronic Excel spreadsheet with live cells and formulas intact. The PTA spreadsheet will include multiple worksheets with the following: i. Separate worksheets for each project to include the engineering details of each project that will include, but not be limited to, the name of the project, type, size, maximum allowable operating pressure ("MAOP"), and length of approach main and service main in feet.ii. For a CNG station, the details will include the name of the project, location, and a list of equipment to include, but not be limited to, the following: (h) No later than forty-five days after the end of each quarter, the EDC shall make filings on the status of each open USF project. The filings shall be provided in paper and electronic format as an Excel spreadsheet with active and unlocked cells and shall include the following: 3. Authorization for Expenditure ("AFE") Number5. Dollar Amount Approved6. Costs Incurred for the Quarter7. Percentage of Completion8. Total Costs Incurred to Date9. Project Completion Date(3) Upon both the completion of a project that is part of the Annual Plan, and that project being placed in service, the following shall occur: (a) For each project, the EDC shall file an Annual Plan Notice of Completion Report ("APNOC") with the following items. i. A cover letter that requests recovery of actual capital expenditures incurred and discusses significant cost increases that exceed the EDC's 5% capital budget cap. The cover letter will discuss how the actual project altered from the originally filed project.ii. An electronic Excel project costing ledger for all cost activities.iii. An electronic copy of all invoices associated with the project.(b) Upon receipt of the APNOC, the Commission through its Staff or agent, may audit all expenditures; however, previously audited expenditures need not be audited again.(c) The Commission has the authority to audit information related to filed APNOC's. Within thirty (30) days of the acceptance of the audit findings, the Commission may authorize payment up to the actual costs or the adjusted audit amount, unless challenged in a proceeding.(4) An EDC seeking a distribution from the USF related to its Tariff Rule 7 or 8 line-extensions, to include CNG projects, shall file with the Commission an USF Distributions related to a USF Project Application ("Application") that can be filed for consideration anytime during the EDC's fiscal year. The purpose of the Application is to provide substitute funding for an Applicant's Tariff Rule 7(B)(2) or Rule 8(B)(2) Contribution in Aide of Construction ("CIAC") payment. The USF Application funds shall only be available to aid in the construction of the approach main line-extension and service main line-extension as contemplated in the EDC's Tariff Rule 7 and 8. The disbursements to the EDC for completed Applications will be below the EDC's 5% budget cap for that Annual Plan year. The Commission shall determine if any Application is in the public interest and may accept, reject, or modify the proposed projects. The disbursements for completed Applications will be limited to unencumbered funds in the USF. For any Application Project amounts that exceed the 5% budget cap or the unencumbered USF funds, those amounts will go into the EDC's rate base. Any Plant recovered through USF disbursements shall not be recovered in the EDC's rate base for ratemaking purposes. The EDC may file revisions to an Application as necessary during the year. The Commission shall determine whether any such revisions are in the public interest, and may accept, reject, or modify the proposed projects. When filing an Application, the EDC shall provide the following MFR's:(a) Application Excel Worksheet that shall contain the following related to the Allowable Investment calculation in Tariff Rule 7 and 8: i. Section-1: Name and Address of Requesting Organization.ii. Section-2: Name and Address of Service Location.iii. Section-3: Applicant Contact Information.iv. Section-4: Loads Information: Existing and Requested.v. Section-5: Usage & Revenues: Calculate Expected Revenues.vi. Section-6: Existing Facilities & Proposed Facilities for Mains & Servicesvii. Section-7: Investment Factorviii. Section-8: Allowable Investment Calculation (Investment Factor x Estimated Revenues)ix. Section-9a: Cost to Serve (Total Mains & Services based on File Costs (Rule 7) or Engineering Estimates (Rule 8)x. Section-9b: Total Allowable Investment (Includes 125 Feet of Free Main).xi. Section-9c: (Excess Allowable)/Excess Costs, or CIAC (Section-9a - Section-9b).xii. Section-10a: Customer Contribution Towards Project.xiii. Section-11: Total Customer CIAC (Becomes USF Proposed Portion).(b) The EDC shall include a map(s) of the service location and the route of the project from existing facilities.(c) The EDC shall maintain detailed records of all expenditures for which reimbursement is requested and shall make those records available to the Commission and its Staff for audit and verification.(5) Upon both the completion of a project that is part of a Project Application, and that project being placed in service, the following shall occur: For each project in the USF Project Application docket, the EDC shall file an Application Notice of Completion Report ("ANOC") with the following items. (a) A cover letter that asks for the filed cost amount approved, and discuss if the project exceeded the EDC's 5% capital budget cap. The cover letter will discuss how the actual project altered from the originally filed project.(b) An electronic Excel project costing ledger for all cost activities.(c) An electronic copy of all invoices associated with the project.(d) The EDC shall maintain detailed records of all expenditures for which recovery is requested and shall make those records available to the Commission and its Staff for audit and verification.(e) Upon receipt of the ANOC, the Commission through its Staff or agent, may audit all expenditures; however, previously audited expenditures pursuant to (6) above need not be audited again.(f) The Commission has the authority to audit information related to filed ANOC's. Within thirty (30) days of the acceptance of the audit findings, the Commission may authorize payment up to the actual costs or the adjusted audit amount, unless challenged in a proceeding.(g) No later than forty-five days after the end of each quarter, the EDC shall make filings on the status of each open Application project in their dockets. The filings shall be provided in paper and electronic format as an Excel spreadsheet with active and unlocked cells and shall include the following: iii. Authorization for Expenditure ("AFE") Numberv. Dollar Amount Approvedvi. Costs Incurred for the Quartervii. Total Costs Incurred to Dateviii. Projected Completion Date(6) In reviewing the information contained in a USF Annual Plan or a Project Application of the EDC for a disbursement of money from its USF, the Commission shall take into account whether the facility that the EDC has proposed is in the public's interest. It shall be within the sole discretion of the Commission to make this determination based upon the EDC's application. The Commission may consider evidence regarding the economic justification of alternative energy sources.(7) Disbursements to an EDC from its USF for the expansion of facilities and service shall not exceed five percent (5%) of the EDC's capital budget for the fiscal year for which the application(s) or Annual Plan is approved. The disbursement may be further restricted based on available unencumbered USF funds. In the event the USF funds are not sufficient to cover the project costs in an Annual Plan, the unrecovered portion of facilities may be recovered through the EDC's normal ratemaking process(es) or as otherwise ordered by the Commission.(8) Any investment by an EDC in new facilities that are financed by the USF shall be accounted for as a contribution in aid of construction ("CIAC").(9) The Commission shall not grant any Project Application or Annual Plan projects of an EDC seeking a disbursement of money from its USF to operate, maintain, replace or repair existing natural gas transmission and distribution facilities.(10) In no event shall an EDC, who receives a distribution from the USF, sell or lease any facilities financed by the fund to an affiliate for less than the higher of the net book value or fair market value of such facility without approval by the Commission. All Excel spreadsheets will be provided with active and unlocked cells for formula evaluation and auditing.(11) The EDC shall maintain detailed records of all expenditures for which reimbursement is requested and shall make those records available to the Commission and its Staff for audit and verification.(12) In accepting any disbursement from the USF, an EDC shall agree as follows: (a) Without prior Commission approval, the EDC shall not sell, or otherwise dispose of or transfer, any facilities for which the EDC received a disbursement from the USF. In reviewing any such request, the Commission shall consider such factors as it may deem appropriate, including whether the sale, disposition, or transfer is in the public interest.(b) Prior to the approval of any such sale, disposition or transfer, the Commission shall require the EDC to return to its ratepayers, in such manner as the Commission may prescribe, the USF contribution to the cost of construction of the facility, plus a portion of the profit, if any, on such sale, disposition, or transfer.(13) Notwithstanding the provisions of 515-7-5-.07(1), an EDC may apply for a disbursement from the USF to fund natural gas fueling infrastructure for motor vehicles at the discretion of the Commission. Such filing shall include detail sufficient to allow the Commission to oversee the program operations and determine whether the proposed project is in the public interest.Ga. Comp. R. & Regs. R. 515-7-5-.07
O.C.G.A. §§ 46-2-20, 46-4-161.
Original Rule entitled "Applications for Disbursements from a Universal Service Fund: Electing Distribution Company" adopted. F. Nov. 13, 1998; eff. Dec. 2, 1998.Amended: F. June 3, 1999; eff. June 23, 1999.Repealed: New Rule, same title adopted. F. Nov. 28, 2001; eff. Dec. 18, 2001.Amended: F. Feb. 5, 2009; eff. Feb. 25, 2009.Amended: F. Sep. 7, 2011; eff. Sept. 27, 2011.Amended: F. Jan. 31, 2017; eff. Feb. 20, 2017.Note: The amendment filed on January 31, 2017 was re-filed on August 24, 2017 to reflect the correct amended rule as promulgated and adopted on January 17, 2017. The filing submitted on January 31, 2017 inadvertently contained the wrong rule, the same version of the rule that was currently in effect.Amended: F. Aug. 24, 2017; eff. Sept. 13, 2017.Amended: F. Nov. 24, 2020; eff. Dec. 14, 2020.