Iowa Admin. Code r. 199-29.3

Current through Register Vol. 47, No. 8, October 30, 2024

Rule 199-29.3 - Management efficiency evaluation

The commission may evaluate a utility's management efficiency based upon the utility's particular circumstances and considering a range of factors that may differ among utilities. In evaluating a utility's management efficiency, the commission may consider any of the factors listed in this chapter and any additional relevant factors. No single factor will be deemed conclusive evidence of efficiency or inefficiency. In performing the evaluation, the commission may collect data to compare a utility to other rate-regulated utilities providing the same service within the state of Iowa. The commission may consider data for time periods outside a rate case test year.

(1)Factors. The commission may consider the following factors:

a. Price per unit of service (including amounts collected subject to refund) by customer class and type of service.

b. Operation and maintenance costs per unit of service. Low operations and maintenance costs may not support a finding of efficiency if quality of service is substandard.

c. Quality of service, as reflected in objective measures of service quality, customer complaints shown in company and commission records, findings made in complaint proceedings, penalties assessed, and measures of customer satisfaction.

d. Customer mix.

e. Total compensation for each officer of the utility.

f. Company's bad debt ratio.

g. Innovative practices implemented by utility management that result in improved service or that control costs.

h. Geographic service territory.

i. Economic conditions in the areas served.

j. Weather patterns and disasters.

k. Development and implementation of energy efficiency programs.

(2)Electric utilities. When evaluating an electric utility, in addition to considering the factors listed in subrule 29.3(1), the commission may consider factors specific to electric utilities, including the following:

a. Fuel cost per kilowatt-hour.

b. Availability for each generating unit with 2,000 or more service hours per year.

c. Company wide load factor.

(3)Natural gas utilities. When evaluating a natural gas utility, in addition to considering the factors listed in subrule 29.3(1), the commission may consider factors specific to natural gas utilities, including the following:

a. Total cost per unit of gas purchased from a pipeline (to be considered separately from operations and maintenance costs).

b. Total cost per unit of gas purchased from other sources (to be considered separately from operations and maintenance costs).

c. Residential and commercial sales volume in relation to investment in the system (rate base).

d. Unaccounted-for gas as a percentage of total sales volume.

Iowa Admin. Code r. 199-29.3

Amended by IAB October 24, 2018/Volume XLI, Number 9, effective 11/28/2018

Editorial change: IAC Supplement 7/24/2024

Adopted by IAB August 21, 2024/Volume XLVII, Number 5, effective 9/25/2024