Utah Department of Administrative Services Division of Administrative Rules

Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since October 1, 2014, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.


R746. Public Service Commission, Administration.

Rule R746-407. Annualization of Test-year Data.

As in effect on October 1, 2014

Table of Contents

R746-407-1. Applicability.

A. This rule shall apply to each gas corporation, electrical corporation, wholesale electrical cooperative, telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation, and independent energy producer (except independent energy producers exempt from the jurisdiction of the Commission) operating as a public utility in the state of Utah under the jurisdiction of the Commission. This rule will enable the Commission to more accurately coordinate a utility's rates with the utility's anticipated revenues and costs by recognizing that some of the conditions which arise during a test period are ongoing and must be spread over the entire period.

R746-407-2. Definitions.

For purposes of this rule:

A. "Annualize" or "annualization" shall refer to adjustments made to test-year data to reflect the partial-period effects of events that occurred or were ongoing during only a portion of the test year and are either recurring or have terminated.

B. "Price-level change" shall mean a change in the utility's costs or revenues that occurs or would occur with no change in the level of the utility's operations.

C. "Volume-level change" shall mean a change in the utility's costs or revenues due to changes in the level of the utility's operations.

D. "Interdependent investment/revenue/cost relationships" shall mean relationships among investments, revenues, and costs such that a change in one produces a change in one or both of the others.

R746-407-3. Criteria.

An item of test-year data may be annualized in the determination of a utility's rates if it meets the following criteria:

A. Annualization of price-level changes will normally be allowed.

B. Annualization of volume-level changes with minimal interdependent investment/revenue/cost relationships will normally be allowed.

C. Annualization of volume-level changes with significant interdependent investment/revenue/cost relationships will be considered on a case-by-case basis, and annualization of such changes will not constitute precedent.

D. The change must be known to occur at a specific moment or moments in time.

E. The effects of the change must be measurable.

F. The change must occur on or before the effective date of a final Commission order setting rates.

G. The change must be expected to be ongoing after final rates become effective.

KEY

rules and procedures, rates, regulations, annualization*

Date of Enactment or Last Substantive Amendment

1990

Notice of Continuation

October 18, 2010

Authorizing, Implemented, or Interpreted Law

54-4-1; 54-4-4


Additional Information

Contact

For questions regarding the content or application of rules under Title R746, please contact the promulgating agency (Public Service Commission, Administration). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.