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Washington Administrative Code (Last Updated: November 23, 2016) |
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Title 480. Utilities and Transportation Commission |
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Chapter 480-07. Procedural rules. |
Section 480-07-530. General rate proceedings—Water companies.
Latest version.
- General rate increase filings by water companies must include the information described in this section. The commission may summarily reject a filing that fails to meet these minimum requirements, without prejudice to the company's right to refile its request in conformance with this section.(1) Cover letter. The cover letter must:(a) Provide a description of the filing, and the requested action, in understandable terms;(i) Technical terms are acceptable, but descriptions must use common terms so the public can easily understand the impact of the filing;(ii) Acronyms, if used, must be defined before they are used in the text of the letter;(b) State why the filing is being made (e.g., increased costs for water testing);(c) Describe each service that is impacted and the dollar and percentage change for each service as well as the net impact of all changes on the company's total regulated revenue.(2) Tariff. The proposed tariff must include explanatory markings.(3) Customer notice. A copy of the notice mailed to customers.(4) Work papers. The supporting work papers for the test period including:(a) A calculation of the revenue impact of proposed rates by each class affected;(b) Balance sheet and statement of revenues and expenses;(c) Depreciation schedule;(d) Adjustments proposed including a schedule showing adjustments to the statement of revenues and expenses, including any restating adjustments and/or pro forma adjustments including the effect of proposed rates;(e) Work papers that explain both restating and pro forma adjustments that the company proposes, specifying all relevant assumptions, and including specific references to charts of accounts, financial reports, studies, and all similar records relied on by the company in preparing its filing, and its supporting testimony and exhibits.(i) "Restating actual adjustments" adjust the booked operating results for any defects or infirmities in actual recorded results, which can distort test period earnings. Restating actual adjustments are also used to adjust from an as-recorded basis to a basis that is acceptable for rate making. Examples of restating actual adjustments are adjustments to remove prior period amounts, to eliminate below-the-line items that were recorded as operating expenses in error, to adjust from book estimates to actual amounts, and to eliminate or to normalize extraordinary items recorded during the test period.(ii) "Pro forma adjustments" give effect for the test period to all known and measurable changes that are not offset by other factors. The filing must identify dollar values and underlying reasons for each proposed pro forma adjustment.(f) Usage statistics verifying test year revenues and proposed revenues.(g) Public water system identification number assigned by the Washington department of health for each system that the new rates will affect.(h) Schedule showing separation of revenues and expenses between regulated and nonregulated operations.(i) Information about every transaction with an affiliated interest or subsidiary that directly or indirectly affects the proposed rates. This must include: A full description of the relationship, terms and amount of the transaction, the length of time the relationship has been ongoing, and an income statement and balance sheet for every affiliated entity.