Section 291-9-016 - MUNICIPAL RATE NEGOTIATIONS REVOLVING LOAN FUND016.01Application for Loan: Only one loan shall be made for each rate filing made by a jurisdictional utility, as set forth in Neb. Rev. Stat. § 66-1839. No loan monies shall be distributed until the Commission has certified a rate case for negotiation pursuant to Neb. Rev. Stat. § 66-1838(6). Applications will only be accepted from cities which have adopted a resolution evidencing the intent to negotiate with the jurisdictional utility. The application form attached to these rules must be completed and filed with the Commission.
016.02Joint Application for Loan: Municipalities may jointly apply for loan funds.
016.03 Fund-use Monitoring and Quarterly Accounting of Fund Use016.03A Once a loan has been approved under the Municipal Rate Negotiations Revolving Loan Fund, the following requirements must be followed by the city or cities and the jurisdictional utility: 016.03A1 The loan proceeds may only be used for the costs and expenses incurred to analyze the rate filing and negotiate a settlement that establishes new area-wide rates;016.03A2 The costs and expenses may include the cost of rate consultants, attorneys, other advisors, and other necessary costs related to the negotiation and preparation of a settlement agreement;016.03A3 Every thirty days following the Commission certification of the negotiation, the borrowing city or cities must provide a report to the Commission, in a format to be specified by the Commission, which details the funds expended and the uses of such funds;016.03A4 Within thirty days after a settlement agreement is filed with the Commission, the borrowing city or cities must provide a final report to the Commission which details the funds expended and uses of such funds;016.03A5 If the borrowing city or cities and the jurisdictional utility fail to reach a settlement, the borrowing city or cities must file with the Commission, within thirty days of notification to the Commission that such settlement could not be reached, a final report which details the funds expended and the uses of such funds;016.03A6 A city which receives a loan from the fund shall be responsible to provide for the opportunity for all other cities engaged in the same negotiations with the same jurisdictional utility to participate in the negotiations. Such city shall not exclude any other city from the information or benefits accruing from the use of loan funds;016.03A7 Upon the conclusion of negotiations, regardless of the result, the loan approved by the Commission after audit shall be repaid by the jurisdictional utility to the Commission within thirty days after the date upon which it is billed by the Commission. The jurisdictional utility shall recover the amount paid on the loan by a special surcharge on customers who are or will be affected by the rate increase request. These customers may be billed on their monthly statements for a period not to exceed twelve months, and the surcharge may be shown as a separate item on the statements as a charge for rate negotiation expenses. 016.03BCommission Audit: The Commission will audit each request for payment from the Municipal Rate Negotiations Revolving Loan Fund. In such audit, the Commission shall allow only such fees incurred for professional work reasonably necessary to analyze a utility's rate filing or in the effort to negotiate new area-wide rates for the utility, and such out-of-pocket expenses as are reasonably incurred in the conduct of such activities. Activities that are not subject to financing through a loan include, but are not limited to: activities related to obtaining a loan and disbursements related thereto; activities occurring prior to the utility's rate filing; and activities occurring prior to formal retention of an individual or firm to participate in the negotiation process. The service provider's invoices must detail, at a minimum, a daily description of the work performed by each individual involved in the negotiation process, the hourly rate of such person, and must provide documentation of all expenses included with such invoice.016.04Signature of Verification of Loan: Any applicant municipality must sign, under oath, a verification that it will comply with the provisions of the State Natural Gas Regulation Act and applicable rules and regulations. A form affidavit is attached to these rules.
016.05Travel, Lodging and Meal Expenses: Any travel, lodging or meal expenses reimbursed or paid by the proceeds from a loan from the Municipal Rate Negotiations Revolving Loan Fund must conform to the Nebraska State Accounting Manual published by the Nebraska Department of Administrative Services.
016.06Multiple Applicants: If more than one loan application is filed on a given rate case, all applicants for funds will be notified of the identity and contact information of other applicants and will be given a limited number of days to coordinate and determine whether to make a joint application.
016.07Application Scoring: If all applicants do not reach a mutual agreement, the Commission will evaluate applications based upon a budget statement identifying all costs for which loan funds will be used and a proposed timeline for progression of negotiations. Applications will be scored on the following scale:
016.07A Total points possible: 25.016.07A1Budget Statement: 15 points total, allocated as follows: 016.07A1aThoroughness: 10 points; and016.07A1bReasonableness: 5 points.016.07A2Timeline: 10 points total, allocated as follows: 016.07A2aThoroughness: 5 points; and 016.07A2aReasonableness: 5 points.291 Neb. Admin. Code, ch. 9, § 016