65- 407 C.M.R. ch. 120, § 5

Current through 2024-25, June 19, 2024

Section 407-120-5 - CONTENT OF GENERAL RATE CASES

A.Generally. Every public utility filing a general rate case must provide the information specified in this section. Information previously filed with Commission may be incorporated in the filing by reference.

B.Order and Numbering. All information required to be filed for a general rate case must be organized and numbered as described in this Section.

C.Particular Contents of Each Filing. Every general rate case must contain the following:

1.Cover sheet. A cover sheet showing:

a. The name of the public utility;

b. The proposed effective date of the new rates;

c. The adjusted gross revenue subject to Commission jurisdiction for the test year;

d. The amount of the increase or decrease in gross revenues subject to Commission jurisdiction; and

e. The percent change in gross revenues subject to Commission jurisdiction.

2.Schedules. The schedule pages implementing the new rates, which must be in accordance with Section 3 of this Rule.

3.Test year.

a. A statement of the test year to be used;

b. An annual report for the test year, or the equivalent compilation in the same form and detail if the test year is a period other than a calendar year;

c. Expenses, revenues, and rate base during the test year, itemized by account number or functional grouping;

d. Uncollectible revenues for the test year, including bad debt expense, gross write-offs, and recoveries of prior write-offs;

e. Number of units of service billed for each rate element of service; and

f. For telecommunications utilities:

(1) Local Service revenues for the test year;

(2) Inter-LATA and intra-LATA toll service revenues for the test year; and

(3) Miscellaneous revenues for the test year.

4.Adjustments to Test Year.

a. Proposed adjustments to test year expenses, revenues, and rate base; and

b. Statements, exhibits, or work papers showing the basis for each adjustment.

5.Regulatory Proceeding Expenses. For those utilities seeking recovery of regulatory proceeding expenses, a detailed description and accounting of those expenses, including identification of the proceeding(s), hours spent and fees charged pursuant to Chapter 850 of the Commission's Rules and Regulations (65-407 C.M.R. 850).

6.Comparative Revenue Statement. A Comparative revenue statement showing operating results for the test year and for the test year as adjusted.

7.Computation of Rate of Return.

a.Rate of Return.

(i) An exhibit showing the proposed rate of return and the capitalization ratios for each component of the capital structure; and

(ii) An exhibit showing the computation of the return requested on rate base.

b.Proposed Revenue Requirements. An exhibit showing the computation of the total proposed revenue requirements of the public utility.

8.Attrition and Elasticity Adjustments.

a. Any adjustment proposed by the utility to compensate for attrition or erosion of earnings, and exhibits showing the basis for the adjustment.

b. Any adjustments proposed by the public utility to compensate for the effects of elasticity of demand, and exhibits showing the basis for the adjustment.

9.Rate Design Changes.

a. A description of any significant changes in rate design, and exhibits showing the basis for the changes.

b. An exhibit showing the effect of the proposed rate changes on the various classes of customers and categories of service provided by the public utility, including:

(1) the total annual revenue change for each class of customers and category of service, expressed in dollars and as a percentage; and

(2) the change in typical bills for each class and category, expended in dollars and as a percentage.

10.Policy statement. A concise statement of any positions, proposals, and adjustments to be offered in support of the rate filing which are known or believed by the public utility to be:

a. Contrary to the established policy of the Commission;

b. Matters as to which various decisions of the Commission are in conflict; or

c. Matters not previously resolved by Commission decisions.

11.Significant Changes in Operations. A brief description of any significant changes in the operations of the public utility since the time of its last general rate case.

12.Notice to Customers. Copies of any notices sent or to be sent to the customers of the public utility in connection with the proposed general rate case pursuant to Chapter 110(6)(B)(1)(b) of the Commission's Rules (65-407 C.M.R. 110(6)(B)(1)(b)), with a description of the classes or groups of customers receiving each notice.

13.Additional Contents Required by Prior Orders. Any information which the Commission has specifically ordered a particular public utility to provide for use in its next general rate case.

D.Basis for Omissions. If the public utility submitting the general rate case contends that any of the information required by this section is not applicable, the public utility must state the basis for that contention. Failure to supply an adequate basis for any omission shall cause the filing to be treated as a defective filing.

65- 407 C.M.R. ch. 120, § 5