(a) A narrative statement describing and justifying the objectives of the design of the proffered rate. If the purpose of the rate design is to reflect costs, the narrative should state how that objective is achieved, and should be accompanied by a summary cost analysis that would justify the rate design. If the rate design is not intended to reflect costs (whether fully distributed, incremental or other) a statement should be furnished justifying the departure from cost-based rates.

(b) Where the billing determinants (quantities of demand, energy, delivery points, etc.) are on different bases than the cost allocation determinants supporting such charges, an explanation shall be submitted setting forth the economic or other considerations which warrant such departure. The information should include, but need not be limited to, the following:

(1) For rate schedules so structured, where the individual rates for the demand, energy, and customer charges do not correspond to the comparable cost classifications supporting such charges, a detailed explanation shall be submitted stating the reasons for the differences.

(2) For rate schedules so structured, where the rates being charged contain more than one demand or energy block, a detailed explanation shall be submitted indicating the rationale for the blocking and the considerations upon which such blocking is based, together with adequate cost support for the specific blocking. (iv) [Reserved]

(v) To the extent that testimony and exhibits required to be filed pursuant to subparagraph (5) of this paragraph duplicate information required to be submitted pursuant to this subparagraph, such information need only be submitted with the testimony and exhibits filed pursuant to subparagraph (5) of this paragraph.

(5)(i) A utility filing for an increase in rates and charges shall be prepared to go forward at a hearing on reasonable notice on the data which have been submitted and sustain the burden of proof, imposed by the Federal Power Act, of establishing that its proposed charges are just and reasonable and not unduly discriminatory or preferential or otherwise unlawful within the meaning of the Act. The Commission is desirous of avoiding delay in processing rate filings. To this end, if the rate schedule provides for an increase in rate which exceeds $50,000 in revenues for the test period, the filing utility shall submit with its rate increase filing testimony and exhibits of such composition, scope and format that they would serve as the company's case-in-chief in the

¶ 13,963 § 35.13

event the matter is set for hearing. In addition to whatever material the utility chooses to submit as part of its case, except for increases resulting from changes made in fuel clauses and increases of rates comprising an integral part of coordination and interchange arrangements in the nature of power pooling transactions, the exhibits shall include full cost of service data, as identified in subparagraph (4)(iii) of this paragraph, statements A through O, and the accompanying testimony should include an explanation of these exhibits.

(c) If a rate schedule required to be on file with this Commission is not required to be supported by cost of service data as set forth in this section but such data may be needed for Commission analysis, these regulations contemplate that each filing public utility may be required, by letter of the Secretary, to submit specified cost data.

(d) Filing public utilities in completing the supporting cost of service data herein required should be guided by applicable Commission precedents and policy statements considered in the light of their respective operating conditions and sales and services subject to this Commission's regulatory jurisdiction.

The Table of Contents for Section 35.13, appearing in 45 F. R. 46352 (7/10/80), effective 12/14/80, as corrected in 47 F. R. 6826 (2/17/82), was amended in 48 F. R. 24323 (6/1/83), effective 7/1/83, by adding Statement No. 38.

Subsection (a), appearing in 45 F.R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F.R. 6826 (2/17/82), was amended in 47 F.R. 19014 (5/3/82), effective 8/26/82, in the second sentence by removing "§ 1.7" and adding in lieu thereof "§ 385.207".

Subsection (a), appearing in 47 F. R. 19014 (5/3/82), effective 8/26/82, read as follows until it was amended in 48 F. R. 24323 (6/1/83), effective 7/1/83:

(a) General rule. Every public utility shall file the information required by this section, as applicable, at the time it files with the Commission under § 35.1 of this part all or part of a rate schedule to supersede, supplement, or otherwise change the provisions of a rate schedule filed with the Commission under §35.1. Any petition filed under § 385.207 of this chapter for waiver of any provision of this section shall specifically identify the requirement that the applicant wishes the Commission to waive.

(1) Filing for any rate schedule change not otherwise excepted. Except as provided in

Federal Energy Guidelines

(ii) For rate schedule changes other than rate increases. Any utility that files a rate schedule change that does not provide for a rate increase, or that provides for a rate increase that is based solely on a change in delivery points, a change in delivery voltage, or a similar change in service, shall submit with its filing only the information required in paragraphs (b) and (c) of this section.

(iii) Computing rate increases. For purposes of this subparagraph and paragraph (d)(2)(ii) of this section, the amount of any rate increase shall be the difference between the total revenues recovered or recoverable under the rate schedule to be superseded or supplemented and shall be determined by:

(A) Applying the components of the rate schedule to be superseded or supplemented to the billing determinants for the twelve months of Period I;

(B) Applying the components of the rate schedule change to the billing determinants for the twelve months of Period I; and

(C) Subtracting the total revenues under subclause (A) from the total revenues under subclause (B).

(3) Cost of service data required by letter. The Director of the Office of Electric Power Regulation may, by letter, require a utility that is not required under paragraph (a)(1) of this section to submit cost of service data to submit such specified cost of service data as are needed for Commission analysis of the rate schedule change.

Subsection (a), appearing in 52 F.R. 24987 (7/2/87), effective 6/26/87 read as follows until its amendment in 60 F. R. 48318 (1/25/95), effective 2/24/95:

(a) General rule. Every public utility shall file the information required by this section, as applicable, at the time it files with the Commission under § 35.1 of this part all or part of a rate schedule to supersede, supplement, or otherwise change the provisions of a rate schedule filed with the Commission under § 35.1. Any petition filed under § 385.207 of this chapter for waiver of any provision of this section shall specifically identify the requirement that the applicant wishes the Commission to waive.

(1) Filing for any rate schedule change not otherwise excepted. Except as provided in paragraph (a)(2) of this section, any utility that files a rate schedule change shall submit with its filing the information specified in paragraphs (b), (c), (d), (e), and (h) of this section, in accordance with paragraph (g) of this section.

(2) Abbreviated filing requirements. (i) For certain rate increases. Any utility that files a rate schedule change that provides for a rate increase may submit with its filing only the information required in paragraphs (b), (c), and (h)(37) of this section and in § 35.12(b)(2) and (5) of this part and, for any rate increase described in clause (B) of this subparagraph, the information required in paragraph (h)(38) of this section, in accordance with paragraph (g) of this section, if the rate increase is:

(A) Less than $200,000 for Period I, as defined in paragraph (d)(3)(i) of this section;

(B) One to which all wholesale customers that belong to the affected rate class consent and that is less than one million dollars for Period I;

(C) For any service of short duration and of a type for which the need and usage cannot be reasonably forecasted, such as emergency or short-term power; or

(D) An integral part of a coordination and interchange arrangement. This exception to the requirements of subparagraph (1) of this paragraph does not apply to interchange schedules providing for firm services (services furnished on an assured basis).

(ii) For rate schedule changes other than rate increases. (A) Except as provided in paragraph (a)(2)(ii)(B) of this section, any utility that files a rate schedule change that does not provide for a rate increase or that provides for a rate increase that is based solely on change in delivery points, a change in delivery voltage, or a similar change in service, must submit with its filing only the information required in paragraphs (b) and (c) of this section.

(B) Any utility that files a rate schedule change that provides for a rate decrease under §35.27 of this part must submit with its filing only the information required by § 35.27 of this part.

(iii) Computing rate increases. For purposes of this subparagraph and paragraph (d)(2)(ii) of this section, the amount of any rate increase shall be the difference between the total revenues to be recovered under the rate schedule change and the total revenues recovered or recoverable under the rate schedule to be superseded or supplemented and shall be determined by:

(A) applying the components of the rate schedule to be superseded or supplemented to the billing determinants for the twelve months of Period I;

(B) Applying the components of the rate schedule change to the billing determinants for the twelve months of Period I; and

(C) Subtracting the total revenues under subclause (A) from the total revenues under subclause (B).

(3) Cost of service data required by letter. The Director of the Office of Electric Power Regulation may, by letter, require a utility that is not required under paragraph (a)(1) of this section to submit cost of service data to submit such specified cost of service data as are needed for Commission analysis of the rate schedule change.

Subsection (d), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F. R. 6826 (2/17/82), was amended in 48 F. R. 24323 (6/1/83), effective 7/1/83, by replacing the references to Statement BL that appeared in paragraphs (d)(1), (2), and (4) with references to Statement BM.

Subsection (d)(6), appearing in 12/24/80, read as follows until its removal in 57 F. R. 53985 (11/16/92), effective 12/16/92 read as follows until its amendment in 60 F. R. 48318 (1/25/95), effective 2/24/95:

(d) Cost of service information. (1) Filing of Period I data. Any utility that is required under paragraph (a)(1) of [this] section to submit cost of service information, or that is subject to the exception in paragraph (a)(2)(i) of this section but elects to file such information, shall submit Statements AA through BM under paragraph (h) using:

Subsection (d)(6), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, read as follows until its removal in 57 F. R. 53985 (11/16/92), effective 12/16/92:

(6) Additional information. If the Commission orders an investigation of a rate schedule change, the utility shall submit all of the following information not previously submitted to the Commission, for the first full calendar quarter beginning after issuance of the order initiating the investigation and shall submit such information for each subsequent calendar quarter until the Commission issues a final order concluding the investigation. The utility shall submit such information during the first month of the calendar quarter following that to which the information applies. The following

information shall be submitted:

(i) Information concerning any actions involving significant changes in the utility's financial condition, accounting methods, or operations, including the following:

(A) Issuance of any securities, reported in the form required in Statement AV under paragraph (h)(22);

(B) Significant increases or decreases in proposed construction program expenditures;

(C) Mergers, consolidations or other major changes in the utility's corporate organization; and

(D) Changes in the utility's capital struc

ture.

(ii) A copy of each order issued by any regulatory agency approving, rejecting or otherwise disposing of an application for an increase in the electric rates of the utility and a copy of each transmittal letter or equivalent written document by which a utility summarizes and submits a new application, for each rate increase pending before a state regulatory agency.

Subsection (e), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F. R. 6826 (2/17/82), was amended in 48 F. R. 24323 (6/1/83), effective 7/1/83, by replacing the references to Statement BL that appeared in paragraphs (eX1Xi), (ii), and (iii) with references to Statement BM.

Subsection (h), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F. R. 6826 (2/17/82), was amended in its introductory sentence in 48 F. R. 24323 (6/1/83), effective 7/1/83, by replacing the reference to Statement BL with a reference to Statement BM.

Subsection (h)(7), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F. R. 6826 (2/17/82), read as follows until it was amended in 48 F. R. 24323 (6/1/83), effective 7/1/83:

(7) Statement AG-Specified plant accounts (other than plant in service) and deferred debits. Statement AG is a statement of balances of specified accounts and items that are to be considered in the determination of the net original cost rate base. Except as prescribed in clause (ii), the utility shall state all required balances as of the beginning and the end of Period I and Period II, with an average of the beginning and end balances for each period. If any of the Period I or Period II balances is not available or is unrepresentative of the current operating plan of the utility, the utility shall provide a All explanation of the relevant circumstances. If subaccounts are maintained to reflect differences in ratemaking treatment among regulatory authorities having jurisdiction, the utility shall provide balances in accordance with such subaccounts, with detailed explanations of the bases upon which the subaccounts were established and are maintained. The balances required to be submitted

under Statement AG are described in clauses (7)(i) through (vi).

(i) For each separately identified major functional classification selected by the utility in Statement AD, the utility shall state the electric utility land and land rights balances for electric plant held for future use in Account 105. If itemized in detail, balances shall be totaled for each major functional classification.

(ii) The utility shall state the electric utility component balances in Account 107 individually and in total, for each item of construction work in progress for pollution control or fuel conversion facilities that qualifies for inclusion in rate base. The utility shall state such balances as of the beginning of the first month and the end of each month of Period I and Period II, with an average of the thirteen balances for each period.

(iii) For each major functional classification under Statement AD and with respect to property otherwise includable in plant in service, the utility shall state the balances for extraordinary property losses Account 182. If itemized in detail, balances shall be totaled for each major functional classification. The utility shall provide information about Commission authorization for any loss included in Account 182 and shall state when the loss was claimed for tax purposes.

(iv) For each major functional classification under Statement AD, the utility shall state the component balances for research, development and demonstration (RD&D) expenditures Account 188. The data shall include both the amounts charged to Account 188 and the amounts transferred to each expense account for each RD&D project.

(v) The utility shall state the total electric component balances for accumulated deferred income taxes Account 190. The component balances in Account 190 shall be itemized in detail and listed according to the accounting entries for which interperiod tax allocation was used. Component balances shall be shown individually and in total for the electric utility department. If the utility maintains records to show Account 190 component balances according to the major functional classifications identified in Statement AD under paragraph (h)(4), the utility shall provide such component balances by function. If the data are not available by function, the filing utility shall describe the procedure by which the utility believes it can reasonably estimate the portion of the total electric balances for each major functional classification. The utility may show by function the component balances obtained by applying the procedure. If such estimation

requires data that are not provided elsewhere in the cost of service statements in this paragraph, the utility shall supply in Statement AG the necessary data.

(vi) Balances shall be shown for every other item that the utility believes should be included in Statement AG. The utility shall provide support for inclusion of each item, and a brief descriptive title for each such item.

Subsection (h)(7)(iv), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, read as follows until its removal in 57 F.R. 53985 (11/16/92), effective 12/16/92:

(iv) For each major functional classification under Statement AD, the utility shall state the component balances for research, development and demonstration (RD&D) expeditures Account 188. The data shall include both the amounts charged to Account 188 and the amounts transferred to each expense account for each RD&D project.

Subsection (h)(13), appearing in 45 F. R. 46352 (7/10/80), effective 12/24/80, as corrected in 47 F. R. 6826 (2/17/82/, read as follows until it was amended in 48 F. R. 64323 (6/1/83), effective 7/1/83:

(13) Statement AM-Construction work in progress. Statement AM is a statement of the amounts of construction work in progress described according to functional classification for Period I and Period II. For production plant and transmission plant, the utility shall state the balances as of the beginning of the first month and the end of each month of both Period I and Period II, with an average of the thirteen balances for each period. For each function of plant identified in Statement AD other than production or transmission, the utility shall state the balances as of the beginning and the end of both Period I and Period II, with an average of the beginning and end balances for each period. If any Period I or Period II balance is not available, the utility shall include monthly estimates and an explanation of the relevant circumstances. Pollution control or fuel conversion facility amounts reported in Statement AG shall be excluded from amounts reported in this statement.

Subsection (h)(24), appearing in 48 F. R. 64323 (6/1/83), effective 7/1/83, read as follows until it was amended in 60 F. R. 48318 (1/25/95), effective 2/24/95:

(24) Statement AX-Other recent and pending rate changes. Statement AX is a statement describing the extent to which operating revenues are subject to refund for Period I and, if applicable, Period II, for each rate change filed with any Federal, state, or other regulatory