Section 16-601-87 - Requirements for general rate increase applications by a public utility with annual gross operating revenues of $2,000,000 or moreFor an application by a public utility with annual gross revenues from its public utility business of $2,000,000 or more for a general rate increase or to alter any classification, contract, practice, or rule as to result in a general rate increase to be considered a completed application under section 269-16, HRS, in addition to meeting the requirements in section 16-601-86, must contain the following:
(1) A general description of the applicant's property and equipment or a reference to that description in a recent prior application;(2) A statement of the original cost of the applicant's property and equipment, together with a statement of the applicable depreciation reserve. If it is impossible to state original cost, the facts creating the impossibility shall be set forth;(3) The total increase requested, expressed in terms of dollars and by percentage. The increase to the different classes of service shall be expressed both in terms of dollars and by percentage;(4) A summary of estimated earnings (rate of return summary) on a depreciated rate base for a twelve month period (test year). The adjusted or estimated results shown for the test year shall be on a consistent basis reflecting normalized conditions to the very best estimate possible. The test year shall be a forward test year, determined as follows:(A) If an application is filed within the first six months of any year, the test year shall be from July 1 of the same year through June 3 0 of the following year; or(B) If an application is filed within the last six months of any year, the test year shall be from January 1 through December 31 of the following year;(5) Schedules for changed rates showing actual recorded results of operations for the last calendar year ending December 31, the latest actual recorded results, and the projected test year results. The schedules for the latest recorded results and the test year must reflect any significant changes (actual and projected) in plant-in-service revenues and expenses since the last calendar year ending December 31;(6) If an applicant has more than one division or county to serve in the State, the earnings results for the total utility operations as well as for the particular division or county for which rate changes are sought. If an applicant cannot comply with this rule, it shall state the reasons why it cannot comply;(7) Which of the optional methods provided in the Internal Revenue Code of 1986 the applicant has elected to employ in computing deferred taxes, investment tax credit, and depreciation deduction in determining its federal income tax payments and whether the applicant has used the same method or methods in calculating federal income taxes for the test year for ratemaking purposes;(8) A copy of:(A) The last annual report to stockholders;(B) The latest proxy statement sent to stockholders by it or its parent company; and(C) The latest form 10(k), Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, filed with the Securities and Exchange Commission;(9) If the applicant is a telephone utility, separated showings of the rate of return on a depreciated rate base for its intrastate operations and for its total telephone utility operations;(10) A statement whether or not the increase reflects and passes through to customers only increased costs to the applicant for the services or commodities furnished by it; and(11) Written direct testimony justifying the increase requested and supporting exhibits and workpapers.[Eff 1/1/2019] (Auth: HRS §§ 91-2, 269-6) (Imp: HRS §§ 91-2, 269-16)