W. Va. Code R. § 150-2-14

Current through Register Vol. XLI, No. 38, September 20, 2024

Section 150-2-14 - Accelerated Rate Procedure for Gas, Water, Sewer, Electric Utilities, and Transfer Stations

14.1. (Historical Rule 30-B). The following accelerated procedure may be used by a natural gas, water, or electric utility for changing rates because of changes in die cost of natural gas, water, or electricity, purchased and/or transported for resale (hereinafter referred to as qualified costs). The following procedure is likewise available to a sewer utility for changing rates because of changes in costs of transportation and/or treatment of sewage (qualified costs). The following procedure is also available to a transfer station for increased tipping fees at a landfill.

14.1.1. Tariff Rule 14.1 et seq. does not apply to Exempt Muni Power Systems, municipal and cooperative utilities and LRR Public Service Districts.

14.1.2. If any natural gas, water, electric or sewer utility or transfer station incurs increased qualified costs because of a rate change subject to die rate making jurisdiction of this commission, a federal regulatory commission, a municipality, or a county commission, such utility or transfer station may file amended tariff sheets, or, in the alternative, file a request for Commission Staff to recommend amended tariffs, to recover these increased costs. The effective date of any amended tariff sheets filed may not be prior to the date that die filing utility incurs such increased costs.

14.1.3. (Reserved)

14.1.4. As soon as possible after the filing of amended tariff sheets by the utility or transfer station pursuant to Tariff Rule 14.1.2., die Commission may issue an order allowing die amended tariff sheets to go into effect immediately, on an interim basis, subject to refund, on the condition that die utility or transfer station publish the notice attached to the Commission's Order in die form of Tariff Form No. 8-Bl, as a Class I legal advertisement, in a qualified newspaper of general circulation in each of the counties where it provides service. If substantial protests are received in response to die publication and the Commission finds, upon further review, that the interim rates are not justified, refunds will be ordered.

14.1.5. Following expiration of the notice period, the Commission will issue a further order adopting final rates

14.1.6. The Commission's investigation of the reasonableness of die rate increase shall be limited to the increased qualified costs, and the level of rates necessary to recover such increased costs.

14.1.7. Any utility or transfer station invoking this procedure shall agree that any future reductions in qualified costs shall require a comparable reduction in rates effective with the date of the reduced costs. Any such reduction in qualified costs and/or any refunds received related to such costs shall be promptly reported to the Commission along with a proposed rate reduction and/or schedule of refunds to customers. The Commission shall investigate the reasonableness of the proposed rate reduction and/or schedule of refunds. Such investigation will be limited to the changes in qualified costs, die effective date of those changes, the level of rates necessary to reflect the changes in qualified costs and the amount and schedule for refunds to die utility's or transfer station's customers.

14.2. (Historical Rule 30-C). Purchased Gas Costs - This rule sets forth a procedure for changing rates per Mcf charged to customers by natural gas distribution utilities based exclusively on the cost of purchased gas including gas purchased by a utility and related transportation for delivery to its customers adjusted for net current gas stored, net exchange gas, shrinkage due to processing, excessive unaccounted for gas and over or under cost recoveries. The Public Service Commission of West Virginia may interpret this rule if necessary and may require appropriate action based upon any such interpretation. The Commission reserves the authority under its general power to review any information filed under this rule and to order appropriate changes based on applications before die Commission. If any provision of this rule would result in undue hardship for a utility or its customers, die Commission may modify the application of this rule appropriately.

14.2.1. Application

14.2.1.a. Any change under this rule in the rates charged by a gas utility shall apply for a twelve-month period from November 1 through October 31. Each gas utility that requests an adjustment in its rates to reflect purchased gas costs shall submit a duly verified application on or before August 1. The application shall include proposed purchased gas cost recovery rates that reflect estimated purchased gas costs for the annual period beginning on November 1. The application shall also include a comparison chart showing current purchased gas cost recovery rates for each rate schedule, current purchased gas cost recovery rates, increment of increase or (decrease) in rates and the percentage of increase or (decrease) in rates. Further more, die application shall include a statement of actual purchased gas costs, cost over and under recovery and refund data for die twelve (12) months ending June 30, and such other supporting information as the Commission may require. The utility shall state separately the quantity and cost of each source of gas.

14.2.1.b. A gas utility that submits application under Tariff Rule 14.2.1. shall continue to submit a duly verified application in each subsequent year until the Commission orders otherwise. Each ratemaking division of a utility shall submit a separate application under this rule.

14.2.1.c. At the same time die Applicant files its application, it shall give notice to its customers in the form of Tariff Form No. 8-C by publication by Class II legal advertisement in a newspaper of general circulation in each of the counties where a majority of its customers reside. Provided, however, that when not more than twenty (20) customers will be so affected by the proposed change, it shall be sufficient within the meaning of this rule, if type written or printed notice is mailed by the utility to each of its customers so affected.

14.2.2. Estimated Purchased Gas Costs --

14.2.2.a. The Commission shall determine for the annual period for which a rate change is computed under this rule;

14.2.2.a.1. The estimated amount of purchased gas costs (Volume of purchased gas times average cost of purchased gas);

14.2.2.a.2. The estimated volume of purchased gas;

14.2.2.a.3. The estimated volume of sales;

14.2.2.a.4. The estimated total gas supply available (Total gas supply includes all purchased gas whether natural synthetic, liquefied natural, propane or other manufactured gas, net storage, net exchange or net borrowed gas, and gas produced by the utility).

14.2.2.b. Definitions.

14.2.2.b.1. "Unaccounted for gas" means the difference between total gas supply, net of measured company use and measured free gas, and total gas sales.

14.2.2.b.2. "Percentage of allowable unaccounted for gas" means for each utility or each rate making division of a utility the ratio of unaccounted for gas to total gas supply not in excess of die lesser of;

14.2.2.b.2.A. Actual percentage of unaccounted for gas for the twelve (12) month period ending June 30; or

14.2.2.b.2.B. 8% for utilities or rate making divisions of utilities with more than 2,000,000 Mcf annual sales, and 10% for all other utilities;

14.2.2.c. Reduction For Estimated Excess Unaccounted For Gas. The Commission shall reduce the amount of purchased gas costs by die cost of excess unaccounted for gas. The cost of excess unaccounted for gas shall be computed as follows;

14.2.2.c.1. Subtract the estimated volume of sales from estimated total supply available, net of measured company use and free gas, to obtain the total volume of estimated unaccounted for gas;

14.2.2.c.2. Divide the estimated volume of unaccounted for gas by die total supply available, net of measured company use and free gas, to obtain the percentage of unaccounted for gas;

14.2.2.c.3. Subtract the allowable percentage of unaccounted for gas from die estimated percentage of unaccounted for gas obtained in Tariff Rule 14.2.2.c.2. to obtain die percentage of excess unaccounted for gas (If the estimated percentage of unaccounted for gas is equal to or less than die percentage of allowable unaccounted-accounted for gas, no adjustment in the amount of purchased gas costs is made under this division);

14.2.2.c.4. Multiply the percentage of excess unaccounted for gas obtained in Tariff Rule 14.2.2.C.3. by the amount of purchased gas costs in Tariff Rule 14.2.2.a.1. to obtain the amount of excess unaccounted for gas costs by which such purchased gas costs must be reduced.

14.2.2.c.5. The difference between purchased gas costs and the amount of excess unaccounted for gas costs equals the amount of allowable purchased gas costs.

14.2.3. Over or Under Recovery of Purchased Gas Costs. The amount of allowable purchased gas costs determined in Tariff Rule 14.2.2. shall be increased or decreased by die amount of over or under recovery of purchased gas costs in die preceding period. Over or under recovery of purchased gas costs shall be computed as follows;

14.2.3.a. Actual Gas Cost. Within sixty (60) days after the end of each calendar month, each gas utility whose rates are adjusted under this rule shall report the following information for that month:

14.2.3.a.1. Actual quantity and cost of purchased gas received from suppliers;

14.2.3.a.2. Actual quantity and cost of all gas transferred to storage;

14.2.3.a.3. Actual quantity and cost of all gas withdrawn from storage;

14.2.3.a.4. Actual net settlement cost of exchange gas;

14.2.3.a.5. Actual cost of gas shrinkage (product of shrinkage volume multiplied by average unit cost of purchased gas processed);

14.2.3.a.6. Total gas sold in Mcf.

14.2.3.a.7. Add or subtract the cost amounts stated in Tariff Rule 14.2.2.c.1 through 5 to obtain the net cost of gas. Divide the net cost of gas for the month by the total Mcf sold during that month to obtain die actual cost of gas per billing unit (Met).

14.2.3.b. Gross Over or Under Recovery of Purchased Gas Costs. Within sixty (60) days after the end of each calendar month, each gas utility whose rates are adjusted under this rule shall report its over or under recovery of purchased gas costs to the Commission. Over or under recovery of purchased gas costs shall be computed as follows;

14.2.3.b.1. Subtract the actual cost of gas per billing unit, as determined under Tariff Rule 14.2.3.a. during the month from die estimated cost per Mcf embedded in the rates authorized to be charged during that month under this rule;

14.2.3.b.2. Multiply die difference obtained in A. by die total sales in Mcf to which the rates authorized under this rule were applied in that month.

14.2.3.b.3. The over or under recovery amounts so obtained for each month shall be accumulated for the twelve (12) months ending June 30 to obtain an annual total over or under recovery of purchased gas cost.

14.2.3.c. Net Over Or Under Recovery Of Purchased Gas Costs. The cumulative over or under recovery obtained in Tariff Rule 14.2.3.b.3 shall be reduced by an amount computed as follows;

14.2.3.c.1. Divide die actual cost of purchased gas during die period by the total Mcf purchased during that period to obtain the average cost per Mcf of purchased gas;

14.2.3.c.2. Multiply die average cost obtained in A. by die total Mcf of unaccounted for gas in excess of the allowable percentage of unaccounted for gas for the period to obtain the total cost of excess unaccounted for gas;

14.2.3.c.3. Divide the volume of purchased gas by die total gas supply volume to obtain the percentage of purchased gas to total supply for the period.

14.2.3.c.4. Multiply the amount obtained in B. by the percentage obtained in C. to obtain the cost of excess unaccounted for gas attributable to purchased gas.

14.2.3.c.5. Subtract the amount obtained in D. from the gross over or under recovery for the period obtained in Tariff Rule 14.2.3.b.3. to obtain the net amount of cost over or under recovery in the preceding period to be recovered in the current period.

14.2.4. Purchased Gas Rate. The Commission shall divide the estimated cost of purchased gas as adjusted for excess unaccounted for gas and over or under recovery of costs, as provided in Tariff Rules 14.2.2. and 14.2.3., by die estimated total sales (Mcf) for the annual period for which a rate change is computed. The quotient so obtained shall be multiplied by (ITl-lax)). where "Tax" equals the West Virginia B & O Tax rate effective on November 1 of the current period. The product so obtained shall equal the rate per Mcf to be rolled into die base rates of the utility for the current period. Purchased gas charges shall not be included in service charges or rates for zero usage.

14.2.5. Refunds. When any utility which has received an increase in its rates under this rule receives a refund of the charges of a supplier whose charges were the basis for die increased rates under this rule, the utility shall provide a credit on each customer's bill within 120 days after receipt of die refund. The credit shall return to the utility's customers the full amount of the supplier's refund including any interest received. The amount of credit for each customer shall be based upon that customer's consumption during the period for which the refund was awarded. Utilities shall report monthly by docket numbers the refunds received, refunds made, and current balances.

14.3. (Historical Rule 30-D). FERC Approved Wholesale Power Increases - This rule sets forth a procedure for changing the rates per kilowatt hour (Kwh) charged to retail customers by non-generating electric utilities based exclusively on fuel cost allowances for suppliers of wholesale power approved by the Federal Energy Regulatory Commission. The Public Service Commission of West Virginia may interpret this rule if necessary and may require appropriate action based upon such interpretations. The Commission reserves the authority under its general power to review any information filed under this rule and to order appropriate changes based upon applications before the Commission.

14.3.1. Definitions

14.3.1.a. "FERC" means the Federal Energy Regulatory Commission.

14.3.1.b. "Non-generating electric utility" means an electric utility subject to die jurisdiction of this Commission whose sole source of electric power is the purchase of power from one or more wholesale suppliers.

14.3.1.c. "Adjustment period" means the twelve (12) consecutive calendar months during which a non-generating electric utility must charge the adjusted rate determined under this rule.

14.3.1.d. "Wholesale rate" means the rate per kilowatt hour charged by a wholesale supplier of electric power to a non-generating electric utility as approved by FERC.

14.3.1.e. "Fuel cost" means that portion of a supplier's wholesale rate specifically attributed by FERC to changes in the supplier's cost of fuel under the provisions of the federal fuel adjustment clause.

14.3.2. Application - A non-generating electric utility which has not already filed an initial application under this rule may apply to the Commission for permission to change its rate per kilowatt hour based upon changes in the fuel portion of the wholesale rate charged by a supplier of power. The application shall be filed no later than 120 days prior to the first day of the adjustment period. The application shall state the actual fuel cost rate charged to die utility by each supplier of power in each of die six (6) months preceding the month in which die application is filed, the actual volume of power purchased from each supplier and die amount of power sold during such months, and such other information as the Commission may require.

14.3.3. Continuing Application - If the Commission approves an initial application filed under this rule, the non-generating electric utility that filed die application shall file a similar application not later than 120 days preceding the first day of die next succeeding adjustment period and each succeeding adjustment period. A utility may cease filing applications for succeeding adjustment periods only with the prior approval of the Commission.

14.3.4. Notice and Authorized Tariff Changes - The Commission shall require the utility to provide notice of the application. Following such notice, die Commission may hold a hearing and may authorize a change in the utility's tariff necessary to reflect fuel cost related changes in the wholesale rate paid by the utility for purchased power and shall reflect any cumulative under recovery or over recovery of fuel expense experienced by the utility in past periods under this rule, taking into consideration taxes and line losses as appropriate. Such authorization shall apply to rates charged by the utility during the adjustment period.

14.3.5. Exclusive Remedy - Anon-generating electric utility shall use the procedure provided in this rule rather than the procedure provided in Tariff Rule 14.1. (Historical Rule 30-B) to obtain interim changes in its tariff reflecting fuel cost related portions of the wholesale rate paid by the utility for purchased power.

14.4. SB 234 Cash Working Capital Fund. This rule sets forth die procedure for establishing a surcharge to replenish a cash working capital fund of a public service district. This method of replenishing the reserve is not mandatory and a public service district may follow normal procedures for obtaining a change in rates.

14.4.1. Public service districts that have previously established a SB 234 cash working capital reserve account may apply for a surcharge on an expedited basis to replenish the cash working capital reserve that has been depleted by extraordinary expenditures. The Commission will accept a proposed rate application requesting a cash working capital replenishment surcharge that contains:

(i) a statement that the cash working capital reserve has been depleted by one or more extraordinary expenditures to less than die minimum required by statute;

(ii) a description of the extraordinary expenditure(s);

(iii) a schedule showing the most recently available working cash balance and balances for the preceding twelve months; and

(iv) the basis for the calculation of the requested surcharge including die minimum reserve balance based on one-eighth of actual annual operation and maintenance expenses.

14.4.2. A public service district filing a rate application pursuant to this expedited procedure will be required by a Commission Notice of Filing Order to publish Tariff Form No. 8-B, as a Class I legal advertisement, in a qualified newspaper of general circulation in die county(ies) where the utility provides service. The surcharge will not go into effect until approved by the Commission.

14.5. The following accelerated procedure may be used by a qualified water utility for changing rates to recover operating costs necessary to comply with 42 U.S.C. §§ 300f, 300g, 300g-1 to g-6, 300h, 30011-1 to h-7, 300i, 300i-l, 300j and 300j-l to j-9 (hereinafter the Safe Drinking Water Act or Act) or by a qualified sewer utility for changing rates to recover operating costs necessary to comply with W. Va. Code § 22-15-1, et seq. and regulations promulgated under W. Va. Code § 22-15-20(b), the Sludge Management Regulations, and subsequent amendments thereto.

14.5.1. For purposes of this rule, a qualified water or sewer utility shall be defined as a water or sewer utility which is subject to the rate setting requirements of W. Va. Code § 24-2-4a and which is either a Non-LRR public service district, or a small utility qualifying for treatment under Tariff Rule 8.2. (Historical Rule 19-A), or that serves 3,300 or fewer people.

14.5.2. If a qualified water or sewer utility incurs increased operating costs which are directly related to compliance with provisions of the Safe Drinking Water Act or the Sludge Management Regulations and the current rates of die utility are insufficient to cover such costs, die utility may petition for Commission approval of rates and charges designed to produce additional revenues to offset such increased operating costs. The utility shall be required to attest at die time of petitioning that its current rates are insufficient to cover such costs.

14.5.3. The Commission may investigate the justness and reasonableness of the new rates so sought by the utility and die issues in such investigation shall be limited to:

14.5.3.a. Whether die increase in operating costs is required due to provisions of the Safe Drinking Water Act or tire Sludge Management Regulations;

14.5.3.b. Whether die current rates of die utility are insufficient to cover such increased operating costs.

14.5.3.c. Whether the increase in rates filed by die utility is no more than sufficient to offset such increased costs;

14.5.3.d. The effective date of such increased costs and the nature and permanency thereof; and

14.5.3.e. The possibility that the costs underlying the rate increase may decrease in the future, to the point that the utility should file, or be required to file, a subsequent decrease in rates.

14.5.4. The filing requirements of Tariff Rule 20.1. (Historical Rule 42) are waived for a rate filing under this rule, and die utility will not be required to provide information in its initial filing pertaining to any element of cost of service except the change in operating costs related to die Safe Drinking Water Act or Sludge Management Regulations. Any party to a proceeding implemented pursuant to this rule, other than the utility, may present evidence pertaining to any element of the utility's cost of service not related to the Safe Drinking Water Act or Sludge Management Regulations to demonstrate that die utility's current rates are sufficient to cover operating costs related to the Safe Drinking Water Act or Sludge Management Regulations. Nothing herein shall be construed as shifting the burden of proof as set forth in W. Va. Code § 24-2-4b. If the utility has received a Safe Drinking Water Act facilities sanitary survey or engineering report from the Department of Healdi, the report must be filed with the utility's petition under this rule. Further, any utility petitioning the Commission pursuant to this rule must have on file with die Commission a properly completed current annual report.

14.5.5. This rule is not intended to provide utilities the opportunity to increase rates due to increased operating costs that are not directly related to the Safe Drinking Water Act or Sludge Management Regulations. Furthermore, this rule is not intended to provide direct funding or to cover increased debt service for major capital improvements which are necessary to satisfy requirements of the Safe Drinking Water Act or Sludge Management Regulations and which require the Commission's approval of a certificate of convenience and necessity pursuant to W. Va. Code § 24-2-11.

14.5.6. Any utility which has implemented increased rates pursuant to this rule shall fund a separate bank account which shall be used solely to pay for those increased operating costs which have been approved by the Commission in a final order issued pursuant to this rule. The utility shall maintain sufficient records to readily disclose, on a monthly basis, the amounts collected and deposited into said account and the withdrawals from said account. These records shall also readily disclose the purpose and ultimate disposition of withdrawn funds and shall be subject to review by Commission Staff. Any excess accumulated in said account shall not be used for purposes other than those specifically approved by die Commission.

14.5.7. Within the disposition of a rate case affecting any utility which has received a rate increase pursuant to this rule, the Commission, in its discretion, may release die utility from the obligation to fund the separate account as required by die preceding paragraph.

14.5.8. When any utility which has increased its rates pursuant to proceedings under this rule experiences a decrease in the costs which were the basis for the increase or has, in any year, collected revenues pursuant to this rule in excess of related expenditures for that year, said utility shall report promptly to die Commission the amount of the reduced costs and/or excess collections. Whereupon, this Commission will conduct an investigation and issue such further rate and/or refund order as is determined to be appropriate. Unless otherwise ordered by the Commission, the issues and evidence for such investigation will be limited to;

14.5.8.a. The amount of the cost reduction and/or excess collection;

14.5.8.b. The effective date of the cost reduction;

14.5.8.c. The extent to which the utility shall amend or adjust its tariff to give effect to cost reductions and/or past or continuing excess collections; and

14.5.8.d. The extent to which, or if, the utility shall make refunds of past excess collections.

14.5.9. Any utility which invokes the proceedings under Tariff Rule 14.5.2. hereof shall be deemed to have consented in advance to the proceedings and requirements of Tariff Rules 14.5.6. and 14.5.7.

14.6. Accelerated Rate Filing Procedures for Inter exchange Services - This rule sets forth a procedure for telecommunication carriers seeking to implement new interexchange rates, new interexchange charges, new interexchange service offerings or interexchange service changes.

14.6.1. A telecommunications carrier seeking to implement a new interexchange rate, new interexchange charge, interexchange change of service offering and/or new service interexchange offering shall file a proper tariff with proper tariff notations reflecting such changes.

14.6.2. A telecommunication carrier seeking any of die changes delineated in Tariff Rule 14.6.1. above, must provide a notice period of not less than fourteen (14) business days by billing inserts to customers or by Class 1 legal advertisement in the carrier's affected service area.

14.6.3. Absent public protest or protest by the Commission's Consumer Advocate Division, correctly filed, legally sufficient and properly noticed tariff changes shall not be docketed by die Executive Secretary's office unless Commission Staff finds that any proposed tariff change violates any of die following conditions;

14.6.3.a. Rates shall not be geographically deaveraged within a LATA;

14.6.3.b. Operator surcharges shall not exceed those of interexchange carriers having at least $1 million in annual gross revenues.

14.6.3.c. Surcharges shall not be permitted for carrier access by means of access code dialing.

14.6.3.d. All rules on terminations and liabilities shall be followed; or

14.6.3.e. Any other reason Staff finds sufficient to request that die filing be docketed.

14.6.4. When a filing seeking any of die changes delineated in Tariff Rule 14.6.1., above, is docketed, the docketing order shall suspend the filing for not longer than allowed by statute.

14.6.5. Promotions of less than ninety-one (91) days duration which affect interexchange services need not be tariffed.

14.6.6. Filings made pursuant to this section shall be accompanied by the following;

14.6.6.a. A cover letter giving a narrative description of the proposed tariff change(s);

14.6.6.b. A description of the notice given to the public. If a bill insert is used, it shall be included.

W. Va. Code R. § 150-2-14