[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR35.13]

[Page 217-241]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 35--FILING OF RATE SCHEDULES--Table of Contents
 
           Subpart B--Documents To Be Submitted With a Filing
 
Sec. 35.13  Filing of changes in rate schedules.

                                Contents

(a) General rule.
    (1) Filing for any rate schedule change not otherwise excepted.
    (2) Abbreviated filing requirements.
    (3) Cost of service data required by letter.
(b) General information.
(c) Information relating to the effect of the rate schedule change.
(d) Cost of service information.
    (1) Filing of Period I data.
    (2) Filing of Period II data.
    (3) Definitions.
    (4) Test period.
    (5) Work papers.
    (6) Additional information.
    (7) Attestation.
(e) Testimony and exhibits.
    (1) Filing requirements.
    (2) Case in chief.
    (3) Burden of proof.
(f) Filing by parties concurring in coordination and interchange 
          arrangements.
(g) Commission precedents and policy.
(h) Cost of service statements.
    (1) AA--Balance sheets.
    (2) AB--Income statements.
    (3) AC--Retained earnings statements.
    (4) AD--Cost of plant.
    (5) AE--Accumulated depreciation and amortization.
    (6) AF--Specified deferred credits.
    (7) AG--Specified plant accounts (other than plant in service) and 
deferred debits.
    (8) AH--Operation and maintenance expenses.
    (9) AI--Wages and salaries.
    (10) AJ--Depreciation and amortization expenses.
    (11) AK--Taxes other than income taxes.
    (12) AL--Working capital.
    (13) AM--Construction work in progress.
    (14) AN--Notes payable.
    (15) AO--Rate for allowance for funds used during construction.
    (16) AP--Federal income tax deductions--interest.
    (17) AQ--Federal income tax deductions--other than interest.
    (18) AR--Federal tax adjustments.
    (19) AS--Additional state income tax deductions.
    (20) AT--State tax adjustments.
    (21) AU--Revenue credits.
    (22) AV--Rate of return.
    (23) AW--Cost of short-term debt.
    (24) AX--Other recent and pending rate changes.
    (25) AY--Income and revenue tax rate data.
    (26) BA--Wholesale customer rate groups.
    (27) BB--Allocation demand and capability data.
    (28) BC--Reliability data.
    (29) BD--Allocation energy and supporting data.
    (30) BE--Specific assignment data.
    (31) BF--Exclusive-use commitments of major power supply facilities.
    (32) BG--Revenue data to reflect changed rates.
    (33) BH--Revenue data to reflect present rates.
    (34) BI--Fuel cost adjustment factors.
    (35) BJ--Summary data tables.
    (36) BK--Electric utility department cost of service, total and as 
allocated.
    (37) BL--Rate design information.
    (38) Statement BM--Construction program statement.

    (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 Sec. 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 Sec. 35.1. Any petition filed 
under Sec. 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.

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    (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 small rate 
increases. Any utility that files a rate increase for power or 
transmission services not covered by paragraph (a)(2)(ii) of this 
section may elect to file under this paragraph instead of paragraph 
(a)(1) of this section, if the proposed increase for the Test Period, as 
defined in paragraph (a)(2)(i)(A) of this section, is equal to or less 
than $200,000, regardless of customer consent, or equal to or less than 
$1 million if all wholesale customers that belong to the affected rate 
class consent.
    (A) Definition: The Test Period, for purposes of paragraph (a)(2)(i) 
of this section, means the most recent calendar year for which actual 
data are available, the last day of which is no more than fifteen months 
before the date of tender for filing under Sec. 35.1 of the notice of 
rate schedule.
    (B) Any utility that elects to file under this subparagraph must 
file the following information, conforming its submission to any rule of 
general applicability and to any Commission order specifically 
applicable to such utility:
    (1) A complete cost of service analysis for the Test Period, 
consistent with the requirements of paragraph (h)(36), Statement BK, of 
this section.
    (2) A complete derivation and explanation of all allocation factors 
and special assignments, consistent with the information required in 
Sec. 35.12(b)(5).
    (3) A complete calculation of revenues for the Test Period and for 
the first 12 months after the proposed effective date, consistent with 
the requirements of paragraph (c)(1) of this section.
    (4) If the proposed rates contain a fuel cost or purchased economic 
power adjustment clause, as defined in Sec. 35.14, the company must 
provide the derivation of its base cost of fuel (Fb) and its monthly 
fuel factors (Fm) for the Test Period and the resulting fuel adjustment 
clause revenues. If any pro forma adjustments affect the fuel clause in 
any way, the company must show the impact on Fm, kWh sales in the base 
period (Sm), Fb and kWh sales in the current period (Sb), as well as on 
fuel adjustment clause revenues.
    (5) Rate design calculations and narrative consistent with the 
information required in paragraph (h)(37) of this section and in 
Sec. 35.12(b)(5).
    (6) The information required in paragraphs (b), (c)(2) and (c)(3) of 
this section and in Sec. 35.12(b)(2).
    (C) Data shall be reconciled with the utility's most recent FERC 
Form 1. If the utility has not yet submitted Form 1 for the Test Period, 
the utility shall submit the relevant Form 1 pages in draft form.
    (D) The utility may make pro forma adjustments for post-Test Period 
changes that occur before the proposed effective date and that are known 
and measurable at the time of filing. The utility shall provide a 
narrative statement explaining all pro forma adjustments.
    (E) If the utility models its filing in whole or in part on retail 
rate decisions or settlements, the utility must provide detailed 
calculations and a narrative statement showing how all retail rate 
treatments are factored into the cost of service.
    (F) If the Commission sets the filing for hearing, the Commission 
will allow the company a specific time period in which to file 
testimony, exhibits, and supplemental workpapers to complete its case-
in-chief. While not required under this subpart, a utility may elect to 
submit Statements AA through BM for the Test Period in accord with the 
requirements of paragraphs (d), (g) and (h) of this section.
    (ii) Rate increases for service of short duration or for interchange 
or coordination service. Any utility that files a rate increase 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 for service that is an integral part of a coordination and 
interchange arrangement, may submit with its filing only the information 
required in paragraphs (b), (c) and (h)(37) of this section and in 
Sec. 35.12(b)(2) and

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(b)(5), conforming its submission to any rule of general applicability 
and to any Commission order specifically applicable to such utility.
    (iii) 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, must submit with its filing only the 
information required in paragraphs (b) and (c) of this section.
    (iv) 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.
    (b) General information. Any utility subject to paragraph (a) of 
this section shall file the following general information:
    (1) A list of documents submitted with the rate schedule change;
    (2) The date on which the utility proposes to make the rate schedule 
change effective;
    (3) The names and addresses of persons to whom a copy of the rate 
schedule change has been mailed;
    (4) A brief description of the rate schedule change;
    (5) A statement of the reasons for the rate schedule change;
    (6) A showing that all requisite agreement to the rate schedule 
change, or to the filing of the rate schedule change, including any 
agreement required by contract, has in fact been obtained;
    (7) A statement showing any expenses or costs included in the cost 
of service statements for Period I or Period II, as defined in paragraph 
(d)(3) of this section, that have been alleged or judged in any 
administrative or judicial proceeding to be illegal, duplicative, or 
unnecessary costs that are demonstrably the product of discriminatory 
employment practices; and
    (8) A form of notice suitable for publication in the Federal 
Register in accordance with Sec. 35.8 of this part.
    (c) Information relating to the effect of the rate schedule change. 
Any utility subject to paragraph (a) of this section shall also file the 
following information or materials:
    (1) A table or statement comparing sales and services and revenues 
from sales and services under the rate schedule to be superseded or 
supplemented and under the rate schedule change, by applying the 
components of each such rate schedule to the billing determinants for 
each class of service, for each customer, and for each delivery point or 
set of delivery points that constitutes a billing unit:
    (i) Except as provided in clause (ii), for each of the twelve months 
immediately before and each of the twelve months immediately after the 
proposed effective date of the rate schedule change, and the total for 
each of the two twelve month periods; or
    (ii) At the election of the utility:
    (A) If the utility files Statements BG and BH under paragraph (h) 
for Period I, for each of the twelve months of Period I instead of for 
the twelve months immediately before the proposed effective date of the 
rate schedule change; and
    (B) If Period II is the test period, for each of the twelve months 
of Period II instead of for the twelve months immediately after the 
proposed effective date of the rate schedule change;
    (2) A comparison of the rate schedule change and the utility's other 
rates for

[[Page 220]]

similar wholesale for resale and transmission services; and
    (3) If any specifically assignable facilities have been or will be 
installed or modified in order to supply service under the rate schedule 
change, an appropriate map or sketch and single line diagram showing the 
additions or changes to be made.
    (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 exceptions 
in paragraphs (a)(2)(i) and (a)(2)(ii) of this section but elects to 
file such information, shall submit Statements AA through BM under 
paragraph (h) of this section using:
    (i) Unadjusted Period I data; or
    (ii) Period I data adjusted to reflect changes that affect revenues 
and costs prior to the proposed effective date of the rate schedule 
change and that are known and measurable with reasonable accuracy at the 
time the rate schedule change is filed, if such utility:
    (A) Is not required to and does not file Period II data;
    (B) Adjusts all Period I data to reflect such changes; and
    (C) Fully supports the adjustments in the appropriate cost of 
service statements.
    (2) Filing of Period II data. (i) Except as provided in clause (ii) 
of this subparagraph, any utility that is required under paragraph 
(a)(1) of this section to submit cost of service information shall 
submit Statements AA through BM described in paragraph (h) using 
estimated costs and revenues for Period II;
    (ii) A utility may elect not to file Period II data if:
    (A) The utility files a rate increase that is less than one million 
dollars for Period I; or
    (B) All wholesale customers that belong to the affected rate class 
have consented to the rate increase.
    (3) Definitions. For purposes of this section:
    (i) Period I means the most recent twelve consecutive months, or the 
most recent calendar year, for which actual data are available, the last 
day of which is no more than fifteen months before the date of tender 
for filing under Sec. 35.1 of the notice of rate schedule change;
    (ii) Period II means any period of twelve consecutive months after 
the end of Period I that begins:
    (A) No earlier than nine months before the date on which the rate 
schedule change is proposed to become effective; and
    (B) No later than three months after the date on which the rate 
schedule change is proposed to become effective.
    (4) Test period. If Period II data are not submitted for Statements 
AA through BM, Period I shall be the test period. If Period II data are 
submitted for Statements AA through BM, Period II shall be the test 
period.
    (5) Work papers. A utility that files adjusted Period I data or that 
files Period II data shall submit all work papers relating to such data. 
The utility shall provide a comprehensive explanation of the bases for 
the adjustments or estimates and, if such adjustments or estimates are 
based on a regularly prepared corporate budget, shall include relevant 
excerpts from such budget. Work papers and documents containing 
additional explanatory material shall be cut or folded to letter size, 
shall be assigned page numbers, and shall be marked, organized and 
indexed according to:
    (A) Subject matter;
    (B) The cost of service statements to which they apply; and
    (C) Witness.
    (6) Attestation. A utility shall include in its filing an 
attestation by its chief accounting officer or another of its officers 
that, to the best of that officer's knowledge, information, and belief, 
the cost of service statements and supporting data submitted under this 
paragraph are true, accurate, and current representations of the 
utility's books, budgets, or other corporate documents.
    (e) Testimony and exhibits--(1) Filing requirements. (i) A utility 
subject to paragraph (a)(1) of this section shall file Statements AA 
through BM under paragraph (h) as exhibits with its rate schedule change 
and may file any other exhibits in support of its rate schedule change.
    (ii) A utility subject to paragraph (a)(1) of this section shall 
file prepared

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testimony. Such testimony shall include an explanation of all exhibits, 
inlcuding Statements AA through BM, and shall include support for all 
adjustments to book or budgeted data relied on in preparing the 
exhibits.
    (iii) To the extent that testimony and exhibits other than 
Statements AA through BM duplicate information required to be submitted 
in such statements, the testimony and exhibits may incorporate such 
information by referencing the specific statement containing such 
material.
    (2) Case in chief. In order to avoid delay in processing rate 
filings, such cost of service statements, testimony, and other exhibits 
described in paragraph (e)(1) of this section shall be the utility's 
case in chief in the event the matter is set for hearing.
    (3) Burden of proof. Any utility that files a rate increase shall be 
prepared to go forward at a hearing on reasonable notice on the data 
submitted under this section, to sustain the burden of proof under the 
Federal Power Act of establishing that the rate increase is just and 
reasonable and not unduly discriminatory or preferential or otherwise 
unlawful within the meaning of the Act.
    (f) Filing by parties concurring in coordination and interchange 
arrangements. For coordination and interchange arrangements in the 
nature of power pooling transactions, all information required to be 
submitted in support of a rate schedule change under paragraphs (a)(1), 
(2), and (3) of this section shall be submitted by each party filing a 
certificate of concurrence under Sec. 35.1. If a representative is 
designated and authorized in accordance with Sec. 35.1 to file 
supporting information on behalf of all parties to a rate schedule 
change, such filing shall fulfill the requirement in this paragraph for 
individual submittals by each party.
    (g) Commission precedents and policy. If a utility submits cost of 
service data under paragraph (d) of this section, it shall conform all 
such submissions to any rule of general applicability and to any 
Commission order specifically applicable to such utility.
    (h) Cost of service statements. Any utility subject to paragraph 
(a)(1) of this section shall submit the following Statements AA through 
BM in accordance with the requirements of paragraphs (d) and (g) of this 
section.
    (1) Statement AA--Balance sheets. Statement AA consists of balance 
sheets as of the beginning and the end of both Period I and Period II, 
and the most recently available balance sheet, including any applicable 
notes, and an explanation of any significant accounting changes since 
the most recent filing by the utility under this section that involves 
the same wholesale customer rate class. Balance sheets shall be 
constructed in accordance with the annual report form for electric 
utilities specified in part 141.
    (2) Statement AB--Income statements. Statement AB consists of income 
statements for both Period I and Period II, and the most recently 
available income statement, including any applicable notes, and an 
explanation of any significant accounting changes since the most recent 
filing by the utility under this section that involves the same 
wholesale customer rate class. Income statements shall be prepared in 
accordance with the annual report form for electric utilities specified 
in part 141.
    (3) Statement AC--Retained earnings statements. Statement AC 
consists of retained earnings statements for both Period I and Period 
II, and the most recently available retained earnings statement, 
including any notes applicable thereto. Retained earnings statements 
shall be prepared in accordance with the annual report form for electric 
utilities specified in part 141.
    (4) Statement AD--Cost of plant. Statement AD is a statement of the 
original cost of total electric plant in service according to functional 
classification for Period I and Period II. If the plant functions and 
subfunctions for Period I and Period II are different, the utility shall 
explain and justify the differences.
    (i) For each separately identified function and subfunction of 
production plant or transmission plant, the utility shall state the 
original cost 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. If any of the Period I or Period II thirteen

[[Page 222]]

monthly balances is not available or is unrepresentative of the current 
plan of the utility for plant in service, the utility shall provide an 
explanation of the relevant circumstances.
    (ii) For each separately identified function and subfunction of 
plant other than production or transmission, the utility shall state the 
original cost 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 of the Period I or Period II balances is not available or 
is unrepresentative of the current plan of the utility for plant in 
service, the utility shall provide an explanation of the relevant 
circumstances.
    (iii) The utility shall show the electric plant in service in 
accordance with each of the following five major functional 
classifications:
    (A) Production;
    (B) Transmission;
    (C) Distribution;
    (D) General and Intangible; and
    (E) Common and Other.
    (iv) To the extent feasible, the utility shall show completed 
construction not classified in accordance with clause (iii) in 
accordance with tentative classification to major functional accounts. 
If this is not feasible, the utility shall describe such facilities as 
other plant under clause (iii)(E).
    (v) If a utility designs its rate change so that subdivision of the 
major functional classifications is necessary to support the changed 
rate, the utility shall supply the original cost information for any of 
the five major functional plant classifications in clause (iii) that are 
divided into subfunctional categories. If subfunctional original cost 
information is provided, the utility shall explain the importance of 
providing such information to support the changed rate. The utility 
shall describe each subfunctional category in substantive terms, such as 
steam electric production or high voltage transmission.
    (vi) The utility shall select any subfunctional categories, as 
appropriate, under the following criteria:
    (A) Production plant categories shall be established as necessary to 
segregate costs for production services with special characteristics, 
such as base, intermediate or peaking load. The utility shall provide a 
description of each such service and shall list a brief descriptive 
title for each corresponding subfunctional category.
    (B) Transmission plant categories shall be chosen to reflect the 
extent to which the facilities are proposed to be allocated on a common 
basis among all or specific segments of utility services. For 
descriptive purposes, plant may also be categorized according to 
accounting or engineering terminology, such as high voltage overhead 
lines. The utility shall provide brief descriptive transmission category 
titles and explain the basis for the titles. If a utility allocates all 
transmission plant among utility services on the basis of a single set 
of allocation data, the utility may show original cost in total without 
subfunctionalization.
    (C) Distribution plant categories shall be selected according to 
engineering or use characteristics meaningful for allocations or 
assignments to wholesale services such as substations, overhead lines, 
meters, or non-wholesale. The utility shall provide brief descriptive 
distribution category titles and shall explain the basis for the titles.
    (D) If the utility divides any general, intangible, common, and 
other plant functional classifications into subfunctional categories, 
the subfunctional categories shall be chosen to group together 
facilities that share a common basis for allocation between wholesale 
and other electric services. The utility shall provide a brief 
descriptive title for each general and intangible subfunctional 
category, and for each common and other subfunctional category, with an 
explanation of the basis of each category selection. A utility need not 
divide the functional classifications of plant into subfunctional 
categories if these functions of plant are allocated in Statement BK on 
the basis of utility labor expenses.
    (E) A separate category shall be provided for each specific 
assignment of plant reported in Statement BE. Such assignments are 
applicable principally but not necessarily exclusively to distribution 
facilities. The utility shall provide brief descriptive titles 
consistent with Statement BE.

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    (F) A separate category shall be provided for each exclusive-use 
commitment of major power supply facilities as required to be reported 
at Statement BF. The utility shall provide brief descriptive titles 
consistent with Statement BF.
    (5) Statement AE--Accumulated depreciation and amortization. 
Statement AE is a statement of the accumulated provision for 
depreciation and amortization of electric plant for Period I and Period 
II, provided according to major functional classifications selected by 
the utility in Statement AD under paragraph (h)(4) and divided into the 
subfunctional categories selected by the utility in Statement AD, to the 
extent that subfunctionalized data are available.
    (i) For each function and subfunction of electric production and 
transmission plant in service identified in Statement AD, the utility 
shall set forth the accumulated depreciation and amortization as of the 
beginning of the first month and the end of each month of both Period I 
and Period II. The utility shall state an average for each period 
computed as the average of the thirteen balances.
    (ii) For each function and subfunction of electric plant in service 
other than production or transmission, identified in Statement AD, the 
utility shall state the accumulated depreciation and amortization 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.
    (iii) If any of the Period I or Period II balances is not available 
or is unrepresentative of the current plan of the utility for 
depreciation reserves, the utility shall provide an explanation of the 
relevant circumstances.
    (iv) If accumulated depreciation and amortization data are not 
available for any subfunction selected in Statement AD, the utility 
shall:
    (A) Provide a comparison of the current depreciation rate of the 
major functional classification and the depreciation rate estimated to 
be appropriate to the subfunctional category; and
    (B) State and explain the estimation techniques which the utility 
proposes to utilize in the absence of subfunctional data, such as the 
proration of accumulated depreciation and amortization data among the 
subfunctional categories according to the data for electric plant in 
service in Statement AD. If any of the proposed estimation techniques 
require data that are not provided elsewhere in the cost of service 
statements in paragraph (h) of this section, the utility shall supply 
the necessary data in Statement AE.
    (6) Statement AF--Specified deferred credits. Statement AF consists 
of balances of specified accounts and items which are to be considered 
in the determination of the net original cost rate base. All required 
balances are to be stated as of the beginning and end of both Period I 
and Period II, with an average of the beginning and end balances for 
each period. If any of the Period I and Period II balances is not 
available or is unrepresentative of the current operating plan of the 
utility, the utility shall include an explanation of the relevant 
circumstances. If subaccounts are maintained to reflect differences in 
ratemaking treatment among regulatory authorities that have 
jurisdiction, balances shall be provided in accordance with such 
subaccounts, with detailed explanations of the bases upon which the 
subaccounts were established and are maintained. The balances of 
deferred credits required to be filed in this statement are described in 
paragraph (h)(6) (i) through (v) of this section. All references to 
numbered accounts refer to the Commission's Uniform System of Accounts, 
18 CFR part 101.
    (i) The utility shall state total electric balances for accumulated 
deferred investment tax credits Account 255, and shall separate the 
credits into balances applicable to pre-1971 and post-1970 qualifying 
property additions. If the utility maintains records to show Account 255 
component balances according to the major functional classifications 
identified in Statement AD under paragraph (h)(4), the utility shall 
provide the component balances by function. If the data are not 
available by function, the utility shall describe the procedure by which 
the utility believes it can reasonably estimate the portion of the total 
electric balances

[[Page 224]]

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 AF the necessary data, such as historical functional 
patterns of plant additions eligible for the tax credits. The utility 
shall state whether the Internal Revenue Code General Rule, 
Sec. 46(f)(1), is applicable with respect to restrictions on credit 
treatment for ratemaking purposes. If the General Rule is not 
applicable, the utility shall state which election it has made with 
respect to special rules for ratable or immediate flow-through for 
ratemaking purposes.
    (ii) The utility shall state the total electric component balances 
for accumulated deferred income tax Account 281 pertaining to 
accelerated amortization property. The utility shall show separate 
components for defense, pollution control, and other facilities. The 
utility shall show balances for each component and totaled for the 
electric utility department. If the utility maintains records to show 
Account 281 component balances according to the major functional 
classifications identified in Statement AD under paragraph (h)(4), the 
utility shall provide such component balances. If data are not available 
by function, the 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 AF the necessary data.
    (iii) The utility shall state the total electric component balances 
for accumulated deferred income tax Account 282 pertaining to electric 
utility property other than accelerated amortization property. The 
utility shall itemize the balances in Account 282, to the extent data 
are available, in detail sufficient to identify the specific major 
properties involved and shall list the balances according to the 
accounting entries, such as liberalized depreciation, for which 
interperiod tax allocation was used and included in this account. 
Component balances shall be shown individually and in total for the 
electric utility department. If the utility maintains records to show 
account 282 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 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 AF the necessary data, such as 
historical functional patterns of plant additions.
    (iv) The utility shall state the total electric component balances 
for accumulated deferred income tax Account 283 pertaining to 
interperiod income tax allocations not related to property. The utility 
shall itemize in detail balances in Account 283, to the extent data are 
available, and shall list the balances according to the accounting 
entries for which interperiod tax allocation was used and included in 
this account. Component balances shall be shown individually and in 
total for the electric utility department. If the utility maintains 
records to show Account 283 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 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

[[Page 225]]

in this paragraph, the filing shall supply in Statement AF the necessary 
data.
    (v) The utility shall show electric utility balances for every other 
item that the utility believes should be included in Statement AF. The 
utility shall explain the reasons for inclusion of each item.
    (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 full 
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 Accounts 107 and 120.1, individually and in total, for each item of 
construction work in progress for pollution control facilities, fuel 
conversion facilities, or any other facilities that qualify for 
inclusion in rate base under Sec. 35.26. The utility shall state such 
balances for each major functional and subfunctional classification 
under Statement AD 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 13 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) 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.
    (v) 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.
    (8) Statement AH--Operation and maintenance expenses. Statement AH 
is a statement of electric utility operation and maintenance expenses 
for Period I and Period II provided according to the

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accounts prescribed by the Commission's Uniform System of Accounts, 18 
CFR part 101.
    (i) For Period I and Period II, the utility shall itemize and 
subtotal all operation and maintenance expenses according to the major 
functional classifications of Statement AD in paragraph (h)(4) and the 
subfunctional categories of those classifications. The utility shall 
further divide the operation and maintenance expenses itemized under the 
production classification and each of its subfunctional categories to 
reflect expenses relating to the energy component (list each item by 
account number and compute fuel costs on an as-burned basis), the demand 
component, and any other production expenses.
    (ii) For Period I and Period II, the utility shall report production 
operation and maintenance expenses according to appropriate account 
numbers. The utility shall apply the following principles in developing 
Period I and Period II production operation and maintenance data for 
this statement:
    (A) Total production operation and maintenance expenses shall be 
segregated into energy, demand, and other components. The utility shall 
specifically state and support its criteria for classifications between 
energy and demand, and for use of the production other classification, 
such as specific assignments related to sales from particular generating 
units.
    (B) Fuel expense for cost of service purposes shall be the total as-
burned expense incurred. If the utility defers a portion of such expense 
for accounting purposes, the deferral amount shall be separately stated 
and accompanied by material that shows computational detail in support 
of such amount. If claimed nuclear fuel expense reflects a change in the 
estimated net salvage value of nuclear fuel, the utility shall show the 
amounts involved and explain the relevant circumstances.
    (C) If the amount of production fuel expense is significantly 
affected by abnormal Period I water availability for hydroelectric 
generation, the utility shall explain how water availability was taken 
into account in developing projected Period II production fuel expenses.
    (iii) For Period I and Period II, the utility shall report operation 
and maintenance expenses attributable to the transmission and 
distribution functions according to appropriate account numbers. If 
Period II transmission and distribution plant data are not provided by 
subfunctional category in Statement AD, the utility need only provide 
for Period II total operation and maintenance expenses for each 
function.
    (iv) For Period I and Period II, the utility shall report in total 
for each period, operation and maintenance expenses incurred under each 
of the categories of customer accounting, customer service and 
information, and sales.
    (v) For Period I and Period II, the utility shall itemize 
administrative and general expenses by groups that are directly 
assignable, such as regulatory Commission expenses, or that are related 
to selected plant or expense items for which an allocation to wholesale 
services is independently determinable, such as items related to labor 
expense or to a category of production plant in service. Administrative 
and general expenses shall include a detailed itemization of the general 
advertising Account 930.1 and the miscellaneous general expenses Account 
930.2. If Account 930 data are not projected on a detailed basis for 
Period II, the utility shall provide its best estimate of the Account 
930.1 expense items and a descriptive list of expense items anticipated 
as miscellaneous general expenses in Account 930.2. Where applicable, 
separate items shall be shown for general plant maintenance, and for 
common and other plant maintenance.
    (vi) In addition to annual production data for Period I and Period 
II, the utility shall provide monthly expense data by accounts for fuel 
in Accounts 501, 518, and 547 and purchased power in Account 555. For 
each type of transaction, such as firm power or economy interchange 
power, monthly purchased power expense data shall be subtotaled 
separately for interchange receipts and deliveries. For monthly fuel 
Accounts 501, 518, and 547, and for each type of purchased power 
transaction, the

[[Page 227]]

monthly data shall identify components to be claimed under the fuel 
adjustment clause of the utility.
    (9) Statement AI--Wages and salaries. Statement AI consists of 
statements of the electric utility wages and salaries, for Period I and 
Period II, that are included in operation and maintenance expenses 
reported in Statement AH.
    (i) For Period I and Period II, the utility shall show the 
distribution of wages and salaries by function according to the form 
prescribed for operation and maintenance expenses by the Commission's 
Uniform System of Accounts, 18 CFR part 101. The statement shall also 
include by function additional wages and salaries attributable to common 
and other plant classifications identified in Statement AD in paragraph 
(h)(4).
    (ii) For Period I and Period II, the utility shall show total 
production wages and salaries, itemized and subtotaled into energy and 
demand related components in accordance with classifications of 
Statement AH operation and maintenance production expenses of which 
production wages and salaries are a part.
    (10) Statement AJ--Depreciation and amortization expenses. Statement 
AJ consists of statements of depreciation and amortization expenses for 
Period I and Period II.
    (i) For Period I and Period II, the utility shall show the 
depreciation and amortization expenses and the depreciable plant 
balances of the filing utility, in accordance with major functional 
classifications selected by the utility in Statement AD under paragraph 
(h)(4).
    (ii) The utility shall divide the major functional classifications 
of depreciation and amortization expenses shown in clause (i) into the 
subfunctional categories selected by the utility for electric plant in 
service in Statement AD, to the extent such data are available.
    (iii) If depreciation and amortization expense data are not 
available for any subfunctional category selected in Statement AD, the 
utility shall:
    (A) Provide a comparison of the current depreciation rate of the 
major functional classification and the depreciation rate estimated to 
be appropriate to the subfunctional category; and
    (B) State and explain the estimation techniques that the utility 
utilized in developing each estimated subfunctional depreciation rate. 
If utilization of such estimation techniques requires data that are not 
provided elsewhere in the cost of service statements in this paragraph, 
the utility shall supply such data in Statement AJ.
    (iv) For Period I and Period II, the utility shall show the annual 
depreciation rate applicable to each function and subfunction for which 
depreciation expense is reported. The utility shall indicate the bases 
upon which the depreciation rates were established. If the depreciation 
rates used for Period I or Period II data differ from those employed to 
support the utility's prior approved jurisdictional electric rate, the 
utility shall include in or append to Statement AJ detailed studies in 
support of such changes. These detailed studies shall include:
    (A) Copies of any reports or analyses prepared by any independent 
consultant or utility personnel to support the proposed depreciation 
rates; and
    (B) A detailed capital recovery study showing by primary account the 
depreciation base, accumulated provision for depreciation, cost of 
removal, net salvage, estimated service life, attained age of survivors, 
accrual rate, and annual depreciation expense.
    (11) Statement AK--Taxes other than income taxes. Statement AK 
consists of statements of taxes other than income taxes for Period I and 
Period II.
    (i) For Period I and Period II, the utility shall itemize and total 
any taxes other than income taxes according to clauses (i) (A) through 
(D).
    (A) Revenue taxes. The utility shall show total revenue taxes levied 
by each taxing authority and identify the revenue taxes, under both the 
present and changed rate, applicable to wholesale services for which a 
rate change is filed. The utility shall identify revenue taxes 
associated with each revenue credit item reported in Statement AU under 
paragraph (h)(21).
    (B) Real estate and property taxes. The utility shall itemize and 
total all real estate and property taxes. If the utility

[[Page 228]]

maintains records to show tax component balances according to the major 
functional classifications identified in Statement AD under paragraph 
(h)(4), the utility shall supply the component balances by function. If 
the data are not available by function, the 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 the necessary data in Statement 
AK.
    (C) Payroll taxes. The utility shall itemize and total all payroll 
taxes. If the utility maintains records to show tax component balances 
according to the major functional classifications identified in 
Statement AD in paragraph (h)(4), the utility shall provide the 
component balances by function. If the data are not available by 
function, the 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 provide 
the necessary data in Statement AK.
    (D) Miscellaneous taxes. The utility shall itemize and total all 
miscellaneous taxes which are directly assignable or which are related 
to any selected plant or expense item for which an allocation to 
wholesale services is independently determinable, such as items related 
to transmission plant in service or to net distribution plant.
    (ii) If any of the taxes itemized under clause (11)(i) are levied by 
a taxing authority that is a customer, or is related to a customer, 
whose services would be affected by the changed rate schedule, the 
utility shall show amounts of such taxes according to the taxing 
authority, identify the related customer, and provide an explanation of 
the relevant circumstances.
    (12) Statement AL--Working capital. Statement AL consists of 
statements for Period I and Period II designed to establish the need for 
working capital to maintain adequate levels of operating supplies, to 
meet required prepayments, and to meet ongoing cash disbursements that 
must be made at a time different than related revenue receipts for 
utility services rendered.
    (i) Supplies and prepayments. The utility shall supply statements to 
show monthly balances of operating supplies and prepayments itemized 
under clauses (i) (A) through (C). The utility shall state all required 
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. If any of the Period I or Period II balances 
is not available or is unrepresentative of the current operating plan of 
the utility for supplies or prepayments, the utility shall include an 
explanation of the relevant circumstances. Operating supply and 
prepayment balances shall be itemized under the following categories:
    (A) Fuel supplies. The utility shall state the fuel supply balances 
for each type of electric utility production plant, except hydraulic. 
The utility shall describe its overall fossil fuel supply objectives for 
Period I and Period II, in terms of projected average days of burn for 
major fossil fuel generating stations, if feasible. The utility shall 
explain substantial differences, if any, between actual Period I 
inventories and the target objectives, or between Period II objectives 
and Period I objectives. Nuclear fuel balances shall include fuel in 
stock, fuel in the reactor and spent fuel in the process of cooling in 
Accounts 120.2, 120.3, 120.4, less accumulated provisions for 
amortization of nuclear fuel assemblies in Account 120.5.
    (B) Plant materials and operating supplies. The utility shall state 
materials and operating supply balances for each of the major electric 
utility operating functions of production, transmission, and 
distribution, and for each significant type of miscellaneous operating 
supplies. Miscellaneous supplies shall

[[Page 229]]

be grouped to facilitate suitable allocations or assignments among 
utility services.
    (C) Prepayments. The utility shall indicate prepayment balances for 
each major prepayment item, with a brief description of the item. 
Balances shall be grouped and subtotaled to facilitate suitable 
allocations or assignments among utility services.
    (ii) Cash working capital. The utility shall indicate average 
monthly working cash requirements that reflect the extent to which day-
to-day operational utility service revenues are received later or 
earlier than cash disbursements necessary to provide the services, with 
an explanation of how such requirements are derived.
    (13) Statement AM--Construction work in progress. Statement AM is a 
statement of the amount 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 13 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 facilities, fuel conversion facilities, 
or other construction amounts reported in Statement AG shall be excluded 
from amounts reported in this Statement.
    (14) Statement AN--Notes payable. Statement AN is a statement of the 
electric utility portion of average notes payable for Period I and 
Period II. The utility shall indicate 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. If any of 
the Period I or Period II balances is not available or is 
unrepresentative of the current financing plan of the utility, the 
utility shall provide an explanation of the relevant circumstances. If a 
utility has operations other than electric, the utility shall also show 
allocations between electric and other utility departments on an 
appropriate basis, such as the average amount of construction work in 
progress and net plant.
    (15) Statement AO--Rate for allowance for funds used during 
construction. Statement AO is a statement of the basis of the rate for 
computing the allowance for funds used during construction (AFUDC) for 
Period I and Period II.
    (i) The utility shall show the computations of the maximum rates for 
the construction allowances computed in accordance with plant 
instructions of the Commission's Uniform System of Accounts, 18 CFR part 
101. The utility shall show the rates computed annually, and shall 
provide the rates for each annual period that includes any part of 
Period I or Period II. If the utility proposes to use a net-of-tax rate, 
the utility shall show the derivation for both the gross-of-tax and net-
of-tax rates.
    (ii) If the book allowance amounts of AFUDC do not reflect the 
maximum rates for allowances for funds computed in accordance with 
clause (i), the utility shall show the derivation for the actual rates 
utilized in computing AFUDC, including derivation of any net-of-tax rate 
utilized by the utility.
    (16) Statement AP--Federal income tax deductions--interest. 
Statement AP is a statement of electric utility interest charges for 
Period I and Period II. For each period, the utility shall state the 
total electric utility interest in terms of three or more component 
items described in clauses (i) through (iv).
    (i) The utility shall state the allowance for borrowed funds used 
for electric utility construction Account 432 as a separate component. 
The utility shall show supporting detail, including computation of the 
amounts on the basis of AFUDC rates claimed in Statement AO.
    (ii) The utility shall state interest for borrowed funds used for 
electric utility construction Account 431 as a separate component. If 
applicable, the utility shall also show all elements of Account 431 
related to purposes other

[[Page 230]]

than electric utility construction, with detailed supporting material, 
such as a computation of allocations between electric and other utility 
departments with explanatory material to support the bases of such 
allocations.
    (iii) The utility shall state the interest on long-term debt 
required for electric rate base investment as a separate component. The 
interest amount shall be consistent with that shown and utilized in 
Statement BK under paragraph (h)(36) of this section.
    (iv) The utility shall show other interest items appropriate in the 
determination of net taxable income allocable to the wholesale services 
at issue. The utility shall describe and support each item and shall 
accompany each item with a statement of the basis on which the item is 
allocable to the wholesale services. The utility shall also list a short 
descriptive title for each item.
    (17) Statement AQ--Federal income tax deductions--other than 
interest. Statement AQ is a statement of other deductions from net 
operating income before Federal income taxes, for Period I and Period 
II, which deductions are appropriate in determining the net taxable 
income allocable to the wholesale services subject to the changed rate. 
The utility shall show unallowable deductions as negative entries in 
this statement. The utility shall itemize deductions in accordance with 
clause (i) through (iii) and individually identify each by a brief 
descriptive title.
    (i) The utility shall report, as a separate component of this 
statement, the difference between tax and book depreciation, in total, 
or in individual amounts based on the Internal Revenue Code provisions 
that permit the utility to use various methods of computing depreciation 
for tax purposes, such as liberalized depreciation or the asset 
depreciation range. If the utility reports the differences in total 
only, it shall list the specific Internal Revenue Code provisions that 
result in the difference.
    (ii) The utility shall state taxes and pensions capitalized as a 
separate component.
    (iii) The utility shall describe and support other deduction items 
appropriate in the determination of net taxable income allocable to the 
wholesale services. Each item shall be accompanied by a brief 
explanation of the basis on which the item is allocable to the wholesale 
services.
    (18) Statement AR--Federal tax adjustments. Statement AR is a 
statement of adjustments to Federal income taxes for Period I and Period 
II. If subaccounts are maintained to reflect differences in ratemaking 
treatment among regulatory authorities having jurisdiction, the utility 
shall provide adjustment amounts in accordance with such subaccounts. 
The utility shall report detailed explanations of the bases upon which 
the subaccounts were established and are maintained.
    (i) For each major function of plant identified in Statement AD 
under paragraph (h)(4), the utility shall state the electric utility 
component adjustment for the Federal portions of the provision for 
deferred income tax Account 410.1. If the data are not available by 
function, the utility shall state the amounts for the total electric 
utility and 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 AR the necessary data. The utility shall provide the 
adjustment amounts for total electric and, to the extent available for 
each such major functional component, accompanied by summary totals 
segregated in accordance with related balance sheet Accounts 281, 282, 
283, and 190 [see Statements AF and AG]. Account 190 items require a 
negative sign for entries in Statement AR. The utility shall identify 
the summarized items by account number.
    (ii) The utility shall provide for the Federal portions of the 
provision for deferred income tax-credit Account 411.1 the data required 
by clause (i) for Account 410.1.
    (iii) For each major functional classification of plant identified 
in Statement AD under paragraph (h)(4), the utility shall provide the 
electric utility

[[Page 231]]

component for investment tax credits generated for Period I and Period 
II, credits utilized for each period, and the allocations to current 
income for each period. If the data are not available by function, the 
utility shall state the amounts for total electric utility and 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 balance 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 AR 
the necessary data. If itemized in detail, balances shall be subtotaled 
for each major function, and totaled for the electric utility 
department. Detailed data shall be consistent with that provided in 
Statement AF under paragraph (h)(6) of this section.
    (iv) The utility shall list and designate as other adjustment items 
any additional Federal income tax adjustments and shall provide a brief 
descriptive title for each item. The utility shall explain the reasons 
for inclusion of each item, and shall indicate the basis on which each 
will be assigned or allocated to the wholesale services subject to the 
changed rate and to the other electric utility services.
    (19) Statement AS--Additional state income tax deductions. Statement 
AS is a listing of state income tax deductions for Period I and Period 
II, in addition to those listed at Statements AP and AQ for Federal tax 
purposes. The utility shall explain the reasons for inclusion of each 
item. The utility shall indicate the basis on which each item is to be 
assigned or allocated to the wholesale services at issue and to the 
other electric utility services. If applicable, the utility shall show 
unallowable deductions as negative entries in this statement. The 
utility shall provide the percentage of Federal income tax payable which 
is deductible for state income tax purposes, if applicable. [See also 
Statement AY, dealing with tax rate data.]
    (20) Statement AT--State tax adjustments. Statement AT is a 
statement of adjustments to state income taxes for Period I and Period 
II. The utility shall prepare and present the data in statement AT as 
prescribed for Federal tax adjustments in Statement AR. The utility 
shall annotate Statement At data as necessary to identify state tax 
adjustments that are not properly deductible for Federal tax purposes.
    (21) Statement AU--Revenue credits. Statement AU is, for Period I 
and Period II, a statement of the operating revenue balances in Accounts 
450 through 456, and other revenue items, such as short-term sales in 
Account 447, that are appropriately credited to the cost of service for 
determinations of costs allocable to the wholesale services subject to 
the changed rate. The utility shall include revenue credits proposed for 
exclusive-use commitment of major power supply facilities according to 
instructions for preparation of Statement BF under paragraph (h)(31) of 
this section. When applicable, the utility shall state revenue taxes for 
each revenue credit item. The utility shall explain the reasons for 
inclusion of each item, and shall indicate the basis for assigning or 
allocating each item to the wholesale services subject to the changed 
rate and to the other electric utility services.
    (22) Statement AV--Rate of return. Statement AV is a statement and 
explanation of the percentage rate of return requested by the utility. 
The utility shall provide the complete capital structure, including 
ratios, component costs and weighted component costs claimed by the 
utility. The utility shall submit additional data where any component of 
the capital of the utility is not primarily obtained through its own 
financing, but is primarily obtained from a company by which the utility 
is controlled, as defined in the Commission's Uniform System of 
Accounts, 18 CFR part 101. The utility shall submit the additional data, 
if required with respect to the debt capital, preferred stock capital 
and common stock capital of such controlling company or any intermediate 
company through which such funds have been secured.
    (i) General. The utility shall show, based on the capitalization of 
the utility, the cost of debt capital and preferred stock capital, the 
claimed rate

[[Page 232]]

of return on the common equity of the utility and the resulting overall 
rate of return requested.
    (A) For Period I and, if applicable, Period II, the utility shall 
show in tabular form the following:
    (1) Cost of each capital element, including claimed rate of return 
on equity capital;
    (2) Capitalization amounts and ratios;
    (3) Weighted cost of each capital element; and
    (4) Overall claimed rate of return.
    (B) When a Period II filing is submitted the utility shall provide:
    (1) A full explanation of, and supporting work papers for, the pro 
forma adjustments to the actual capitalization data to arrive at the 
Period II capitalization; and
    (2) The pro forma adjustment to Period I data to arrive at the 
Period II amount for unappropriated undistributed subsidiary earnings in 
Account 216.1.
    (C) If not included elsewhere in the filing, the utility shall 
submit the amount for Account 216.1 for Period I as part of this 
statement.
    (ii) Debt capital. (A) The utility shall show the weighted cost for 
all issues of long-term debt capital as of the end of Period I, as 
expected on the date the changed rate is filed, and, if applicable, as 
estimated for the end of Period II. The weighted cost is calculated by: 
(1) Multiplying the cost of money for each issue under clause (B)(6) 
below by the principal amount outstanding for each issue, which yields 
the annualized cost for each issue; and (2) adding the annual cost of 
each issue to obtain the total for all issues, which is divided by the 
total principal amount outstanding for all issues to obtain the weighted 
cost for all issues.
    (B) The utility shall show the following for each class and series 
of long-term debt outstanding as of the end of Period I, as expected on 
the date the changed rate is filed, and, if applicable, as estimated to 
be outstanding as of the end of Period II.
    (1) Title;
    (2) Date of offering and date of maturity;
    (3) Interest rate;
    (4) Principal amount of issue;
    (5) Net proceeds to the utility;
    (6) Cost of money, which is the yield to maturity at issuance based 
on the interest rate and net proceeds to the utility determined by 
reference to any generally accepted table of bond yields;
    (7) Principal amount outstanding;
    (8) Name and relationship of issuer and if the debt issue was issued 
by an affiliate; and
    (9) If the utility has acquired at a discount or premium some part 
of the outstanding debt which could be used in meeting sinking fund 
requirements, or for some other reason, the annual amortization of the 
discount or premium for each issue of debt from the date of the 
reacquisition over the remaining life of the debt being retired. The 
utility shall show separately the total discount and premium to be 
amortized, and the amortized amount applicable to Period I and, if 
applicable, Period II.
    (C) The utility shall show the before-tax interest coverage, for the 
twelve months of Period I based on the indenture requirements. The 
utility shall provide a copy of the work papers used to make the 
calculations, with explanations appropriate to understand the 
calculations.
    (iii) Preferred stock and preference stock capital. (A) This 
statement shall show the weighted cost for all issues of preferred and 
preference stock capital as of the end of Period I, as expected on the 
date the changed rate is filed, and, if applicable, as estimated for the 
end of Period II. The weighted cost is calculated by: (1) Multiplying 
the cost of money for each issue under clause (B)(9) by the par amount 
outstanding for each issue, which yields the annualized cost for each 
issue; and (2) adding the annual cost of each issue to obtain the total 
for all issues, which is divided by the total par amount outstanding for 
all issues to obtain the weighted cost for all issues.
    (B) The statement shall show for each class and issue of preferred 
and preference stock outstanding as of the end of Period I, as expected 
on the date the changed rate is filed, and, if applicable, as estimated 
to be outstanding as of the end of Period II:
    (1) Title;
    (2) Date of offering;

[[Page 233]]

    (3) If callable, call price;
    (4) If convertible, terms of conversion;
    (5) Dividend rate;
    (6) Par or stated amount of issue;
    (7) Net proceeds to the filing utility;
    (8) Ratio of net proceeds to gross proceeds received by the filing 
utility;
    (9) Cost of money (dividend rate divided by the ratio of net 
proceeds to gross proceeds for each issue);
    (10) Par or stated amount outstanding; and
    (11) If issue is owned by an affiliate, name and relationship of 
owner.
    (iv) Common stock capital. This statement shall show the following 
information for each sale of common stock during the five-year period 
preceding the date of the balance sheet for the end of Period I and for 
each sale of common stock between the end of Period I and the date that 
the changed rate is filed:
    (A) Number of shares offered;
    (B) Date of offering;
    (C) Gross proceeds at offering price;
    (D) Underwriters' commissions;
    (E) Dividends per share;
    (F) Net proceeds to company;
    (G) Issuance expenses; and
    (H) Whether issue was offered to stockholders through subscription 
rights or to the public and whether common stock was issued for property 
or for capital stock of others.
    (v) Supplementary financial data. The utility shall submit a 
statement indicating the sources and uses of funds for Period I and as 
estimated for Period II and a copy of the utility's most recent annual 
report to the stockholders. The utility shall also supply a prospectus 
for its most recent issue of securities and a copy of the latest 
prospectus issued by any subsidiary of the filing utility or by any 
holding company of which the filing utility is a subsidiary.
    (23) Statement AW--Cost of short-term debt. In Statement AW, the 
utility shall provide a statement of the cost of capital rate for short-
term debt of the utility as of the end of Period I, as expected on the 
date the proposed rate is filed, and, if applicable, as estimated for 
the end of Period II, with details supporting each stated cost. The 
short-term debt rate shown in Statement AW shall include only the short-
term debt that appears on the income statement as interest expense and 
shall not include nominal forms of financing, such as trust agreements.
    (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 body that 
has jurisidiction. The utility shall list and submit any orders in which 
applications for a rate increase have been acted on by any regulatory 
body during Period I, Period II, or the interval between Period I and 
Period II, and a copy of each transmittal letter or equivalent written 
document by which a utility summarized and submitted any pending 
applications that have not been acted on. Statement AX shall reflect 
information available at the time of submittal under this paragraph. 
Notwithstanding any other provision of this section, Statement AX is 
required to be filed only if the proposed rate design tracks retail 
rates.
    (25) Statement AY--Income and revenue tax rate data.
    (i) Statement AY is a statement of tax rate data for Period I and 
Period II arranged as follows:
    (A) Nominal Federal income tax rate;
    (B) Nominal state income tax rate;
    (C) Proportion of Federal income taxes payable which is deductible 
for state income tax purposes. If an allowable deduction is stated in 
other terms, the utility shall provide an estimate of the effective 
deduction as a percentage of Federal tax payable; and
    (D) Revenue tax rate. If the revenue tax rate is scaled, the utility 
shall show approximate weighted average rates for relevant revenue 
levels and full supporting data.
    (ii) If the utility serves in more than one jurisdiction for revenue 
or state income tax purposes, the utility shall state the appropriate 
tax rates for each wholesale customer group at issue and for all other 
customers as a composite group. [See, Statement BA under paragraph 
(h)(26) for wholesale customer grouping criteria.] If there are any 
changes in tax rates that occur in Period I or that may occur in Period 
II,

[[Page 234]]

the utility shall describe such changes and the effective date of the 
changes.
    (26) Statement BA--Wholesale customer rate groups. (i) Statement BA 
is a list of wholesale customers by group for the purpose of:
    (A) Allocating the allowable costs of the utility to such customer 
groups on the basis of electric utility services rendered; and
    (B) Comparing proposed revenues from each customer group with the 
cost of service as allocated to that group.
    (ii) The utility shall limit the number of wholesale customer groups 
listed to the minimum required under the following criteria:
    (A) At least one customer group shall be specified for each separate 
wholesale rate subject to the changed rate filing.
    (B) In general, all customers proposed to be served on the same rate 
shall be included in a common group. If the utility believes that there 
are significant differences in services provided under the same rate, 
the utility shall subdivide the common group served by the same rate 
into separate customer groups characterized by the type of service 
provided each group and shall demonstrate whether the common rate is 
cost-based by means of cost-justification for each service group. 
Certain customer groupings, such as cooperatives or municipals, may also 
be utilized to facilitate purchaser evaluations of the changed rate.
    (C) In all cases, the utility shall select customer groupings on a 
basis consistent with rate design information provided in Statement BL 
under paragraph (h)(37) of this section.
    (iii) The utility shall enumerate all wholesale customer rate 
groups, together with a brief descriptive title for each group. For 
example:
    Group 1. Full Requirements Tariff

FR-1.
    Group 2. Partial Requirements Tariff PR-1.
    (27) Statement BB--Allocation demand and capability data. Statement 
BB is a statement of electric utility demand and capability data for 
Period I and Period II to be considered as a basis for allocating 
related costs to the wholesale services subject to the changed rate.
    (i) For each month of Period I and Period II, with an average for 
each period, the utility shall show the maximum peak firm kilowatt 
demand on the power supply system of the utility, and the kilowatt 
demands of the wholesale services that coincide with the system monthly 
maximum power supply demand, including for Period I the date and hour 
for such coincidental peak demands. The utility shall state these 
kilowatt demands in terms of 60-minute intervals or other intervals 
adjusted to the equivalent of 60 minutes. The utility shall not include 
in the data the demands associated with interruptible power supply 
services, firm or nonfirm transmission wheeling services, or demands 
associated with other services the revenues from which are shown as 
revenue credits in Statement AU under paragraph (h)(21). The utility 
shall provide wholesale service demand data as follows:
    (A) The wholesale service data for each individual customer delivery 
point or set of delivery points that constitutes an individual wholesale 
customer billing unit shall include demands at delivery. The individual 
customer wholesale service data shall be summarized and subtotaled in 
accordance with Statement BA customer groupings.
    (B) The data supplied for each wholesale customer group under clause 
(A) shall be adjusted for losses to reflect demand at the power supply 
level. The data shall be totaled to show total customer group demand at 
power supply level for each month of Period I and Period II.
    (ii) To the extent such data are available, the utility shall state 
Period I and Period II monthly maximum demand data for interruptible 
power supply services, firm wheeling services, and nonfirm wheeling 
services. The utility shall also provide, to the extent data are 
available, firm wheeling demand data for any of the 60-minute periods 
that coincide with the times of power supply peak demands shown under 
clause (i). The utility shall indicate the basis of all demands, such as 
metered demands or contract demands, reported under this clause. For 
interruptible services, the utility shall provide a description of the 
conditions

[[Page 235]]

under which service may be interrupted or curtailed. The utility shall 
include available information on actual interruptions or curtailments 
during a three-year period that includes Period I. If any of the 
wholesale rates at issue are for interruptible or curtailable service, 
the utility shall provide any demand data specifically relevant to such 
service.
    (iii) If a utility establishes plant categories in Statement AD 
under paragraph (h)(4) of this section for the purpose of supporting 
wholesale rates for firm power supply services with special 
characteristics, such as base load, intermediate, or peaking, the 
utility shall provide in Statement BB the demand data required by clause 
(i) in total and in separate corresponding demand values consistent with 
the service characteristics. Corresponding values shall be stated for 
the system demand of the utility, and for each applicable wholesale 
service group.
    (iv) If a utility establishes plant categories in Statement AD under 
paragraph (h)(4) of this section for the purpose of supporting wholesale 
rates for nonfirm power supply services, such as capacity sales, the 
utility shall include in Statement BB for each month of Period I and 
Period II the monthly capability data relied on by the utility in 
developing costs allocable to such rates, with an explanation of the 
underlying cost allocation rationale.
    (v) If a utility establishes production plant categories in 
Statement AD under paragraph (h)(4) of this section for the purpose of 
supporting wholesale rates based on specialized ratemaking theories such 
as marginal cost pricing, time-of-day pricing, or base, intermediate, 
and peaking characteristics, the utility shall include in Statement BB 
all demand and capability data relied on by the utility in developing 
support on a cost of service basis, with appropriate explanatory 
material.
    (vi) For each month of Period I and Period II, the utility shall 
provide any additional demand data that the utility believes to be 
relevant to the allocation of electric utility costs to the wholesale 
services at issue. The utility shall fully support all such data and 
shall explain the rationale and the specific application proposed.
    (vii) Based upon information reported in Statements BB and BC, the 
utility shall list selected months that are normally the months of 
greatest significance in determining the need of the utility for power 
supply capability throughout the year. All twelve months may be 
selected, if appropriate. In its selection, the utility shall take into 
account any effects of local weather seasons and, particularly, the 
extent to which peak demands may tend to be similar in magnitude in two 
or more months of a weather season. The utility shall explain the 
reasons for the selections and describe the significance for the 
selections of seasonal variations in the weather.
    (28) Statement BC--Reliability data. Statement BC is a statement 
relating to reference standards of the filing utility for electric power 
supply reliability, and to information designed to reflect monthly 
availability of generating capacity reserves.
    (i) For Period II, Period I, and each of the three calendar years 
preceding Period I, the utility shall state and briefly explain its 
objective reference standard of production power supply reliability and 
the rationale underlying its choice of a reliability standard, including 
whether it participates with other electric utilities in the selection 
of a common standard on an area or pool basis. The utility shall 
identify any such participating utilities, and provide a general 
explanation of the basis upon which the reliability standard was jointly 
developed.
    (ii) The utility shall describe how its objective standard for 
production power supply reliability affects its electric generating 
facility construction planning and purchased power planning.
    (iii) For the peak day of each month of Period II, Period I, and, to 
the extent data are available, for the peak day of each month of the 
three calendar years preceding Period I, the utility shall include 
tabular schedules designed to show the following:
    (A) Net peak load in megawatts, itemized to show:
    (1) Gross peak firm load, including all firm sales assured available 
by the reserve capacity of the utility;

[[Page 236]]

    (2) All firm purchases assured available by the reserve capacity of 
the supplier; and
    (3) Net peak load, computed as gross peak load under clause (1) 
minus all firm purchases under clause (2).
    (B) Net available dependable capacity, that is, the load-carrying 
ability of the electric production facilities determined for the purpose 
of scheduling capacity in day-to-day operations, provided in megawatts 
and itemized to show:
    (1) The owned dependable capacity of the utility for each production 
plant category selected in Statement AD under paragraph (h)(4);
    (2) Scheduled maintenance of owned dependable capacity of the 
utility;
    (3) Purchased dependable capacity of the utility;
    (4) Scheduled maintenance of purchased dependable capacity of the 
utility; and
    (5) Net available dependable capacity, computed as the owned 
dependable capacity under clause (1), minus scheduled maintenance of 
owned capacity under clause (2), plus purchased dependable capacity 
under clause (3), minus scheduled maintenance of purchased capacity 
under clause (4).
    (C) Available reserves in megawatts, which is the net available 
dependable capacity under clause (iii)(B) minus net peak load under 
clause (iii)(A).
    (D) Available reserves as a percent of peak load, which is the 
available reserves under clause (iii)(C) divided by net peak load under 
clause (iii)(A).
    (29) Statement BD--Allocation energy and supporting data. Statement 
BD is a statement of electric utility energy data for Period I and 
Period II to be considered as bases for allocating related costs to the 
wholesale services subject to the changed rate.
    (i) For each month of Period I and Period II, and as totaled for the 
twelve months of each period, the utility shall show the megawatt-hours 
of firm power supply energy required by the system of the utility and 
the magawatt-hour energy requirements of the wholesale customer groups 
whose services will be subject to the changed rate. The wholesale 
service data for each individual customer delivery point or set of 
delivery points that constitutes an individual wholesale customer 
billing unit shall include megawatt-hours at delivery. The utility shall 
summarize and subtotal these individual customer data in accordance with 
Statement BA customer groupings under paragraph (h)(26). The utility 
shall show a loss adjustment for each wholesale customer group to 
reflect energy at the power supply level. The utility shall total the 
data to show total customer group energy requirements at power supply 
level for each month of Period I and Period II.
    (ii) Data provided under clause (i) shall not include energy 
associated with interruptible or curtailable services, or energy 
associated with other services, the revenues from which are shown as 
revenue credits in Statement AU under paragraph (h)(21) of this section. 
The utility shall separately state Period I and Period II monthly and 
total energy data for any such services provided by the utility. If any 
of the proposed wholesale rates at issue are for interruptible or 
curtailable service, the utility shall provide descriptive material and 
energy data specifically relevant to such services.
    (iii) If a utility selects subfunctional categories in Statement AD 
under paragraph (h)(4) of this section for the purpose of supporting any 
changed wholesale rate for firm power supply services with special 
characteristics, such as base load, intermediate, and peaking services, 
the utility shall separate the energy data required by clause (i) into 
corresponding energy values consistent with the service characteristics 
and consistent with energy-related expense categories utilized in 
Statement AH under paragraph (h)(8) of this section. The utility shall 
state the corresponding values for the utility's system energy and for 
each applicable wholesale service group.
    (iv) If a utility establishes plant categories in Statement AD under 
paragraph (h)(4) of this section for the purpose of supporting any 
changed wholesale rate for nonfirm production services, or the changed 
wholesale rate based on specialized ratemaking theories [see paragraph 
(h)(27)(v) of this section], the utility shall include in Statement BD 
all energy data relied on by the utility in developing the support

[[Page 237]]

on a cost of service basis and relevant explanatory material. Energy 
data provided under this clause shall be consistent with related expense 
categories utilized in Statement AH under paragraph (h)(8) of this 
section.
    (v) For each month of Period I and Period II, and as totaled for the 
twelve months of each period, the utility shall show the megawatt-hours 
generated, itemized in accordance with Statement AD production 
subfunctional categories, and the megawatt-hours purchased or 
interchanged, itemized to show each type of transaction, such as firm 
energy or economy interchanged energy. The utility shall quantitatively 
reconcile such data with the system allocation energy reported in this 
statement, and with energy data underlying the fuel and purchased power 
expense reported in Statement AH.
    (30) Statement BE--Specific assignment data. (i) Statement BE is a 
statement of specific components of the electric costs of service of the 
utility for Period I and Period II. Statement BE costs of service are 
those apportioned among wholesale services subject to the rate change 
and other utility services, on a basis other than:
    (A) Demand, capability, or energy data provided in Statements BB and 
BD;
    (B) A proportional relationship based on a selected plant category 
or expense item for which an allocation to wholesale services is to be 
independently determined; or
    (C) Exclusive-use commitment in Statement BF under paragraph (h)(31) 
of this section.
    (ii) The utility shall include specific assignments considered 
appropriate by the utility. Typical cost of service components that 
could be specifically assigned are distribution plant [see examples 
listed in Statement AD under paragraph (h)(4) of this section], certain 
total electric wages and salaries provided in Statement AI under 
paragraph (h)(9) of this section, such as wages and salaries for 
customer accounting and for customer service and information, and 
certain administrative and general expense items. [See examples listed 
in Statement AH under paragraph (h)(8) of this section.]
    (iii) The utility shall limit specific assignments to the minimum 
required to adequately provide for costs not otherwise appropriately 
allocable.
    (iv) For each specific assignment, the utility shall include at 
least the following information:
    (A) Brief descriptive component title, such as distribution 
substations or rate case expenses;
    (B) Total electric amount in dollars;
    (C) Wholesale customer group dollar amounts stated individually for 
each wholesale customer rate group identified in Statement BA under 
paragraph (h)(26), and stated in total for all such groups; and
    (D) Explanation of the basis on which assignments were made, 
accompanied by supporting detailed computations.
    (31) Statement BF--Exclusive-use commitments of major power supply 
facilities. Statement BF is a statement describing and justifying the 
commitment to exclusive-use for particular services of all or a stated 
portion of electric utility generation units or plants, or major 
transmission facilities.
    (i) For Period I and Period II, the utility shall list each 
transaction in which all or a stated portion of the output of a 
specified filing utility-owned generating unit or group of units was 
committed exclusively to a particular customer or group of customers, or 
to a power pool or similar power supply entity. For each such 
transaction, the utility shall provide the following information:
    (A) Brief descriptive title for each commitment;
    (B) Name of plant and unit designation;
    (C) Name of the purchaser or power pool or other similar power 
supply entity;
    (D) Duration of the transaction;
    (E) Basis of rates or charges, stated in terms of whether a 
transaction reflects marginal, incremental, or fully distributed costs, 
the specific overall and common equity rates of return included in 
costs, provided on both a claimed and earned basis to the extent such 
information is available, the approximate date of the cost analysis on 
which the rates and charges were based, and any other considerations 
significant to the transaction;

[[Page 238]]

    (F) Revenue received for each month of Period I and Period II or, if 
applicable, monthly quantities of power and energy received or available 
from power pools as consideration for commitment to a pool; and
    (G) Proposed treatment in the cost of service determinations for the 
wholesale services at issue. For example, a credit of revenue to the 
total electric cost of service, in Statement AU under paragraph (h)(21), 
could be proposed to account for unit capacity sales based upon 
incremental capital costs. The utility shall include explanatory 
material and support for the proposed procedures.
    (ii) For Period I and Period II, the utility shall list each 
transaction in which all, or a portion, of a major transmission facility 
owned by the filing utility was committed exclusively to a particular 
customer or group of customers. For each such transaction, the utility 
shall provide information similar to that required by clause (i).
    (32) Statement BG--Revenue data to reflect changed rates. Statement 
BG is a statement of revenues for Period I and Period II, including 
those under the changed rate for the wholesale services at issue.
    (i) For each month of Period I and Period II, and in total for each 
of the two periods, the utility shall show all billing determinants and 
metered quantities for each delivery point or set of delivery points 
that constitutes an individual wholesale customer billing unit, and the 
result of applying each specific rate component to the billing 
determinants for each billing unit stated with the total of the computed 
monthly bill for the customer. If the rates include a fuel clause, the 
utility shall compute and total the revenues under the fuel clause to 
reflect fuel costs incurred during each month of Period I and Period II. 
That is, the fuel clause revenues for the first month of Period I shall 
reflect fuel costs incurred for that month, and so on for each month of 
Period I and Period II. In computing fuel clause revenues, the utility 
shall determine fuel cost according to Sec. 35.14 of this chapter.
    (ii) If the form of the proposed fuel clause would produce revenues 
different from those computed in accordance with clause (i), the utility 
shall separately compute and state such fuel clause revenues for each 
customer for each month of Period I and Period II.
    (iii) The utility shall summarize separately revenue data computed 
in accordance with clauses (i) and (ii) above for each month and in 
total for Period I and Period II, in accordance with wholesale rate 
groups specified in Statement BA under paragraph (h)(26) of this 
section. The utility shall show total electric department revenues for 
each period to include revenues under the changed rate for all such 
wholesale customer rate groups.
    (iv) For Period I and as estimated for Period II, the utility shall 
summarize all billing determinants and revenues received from 
interruptible or curtailable services. Billing determinants and revenue 
data shall be consistent with interruptible demand and energy data in 
Statements BB and BD. The utility shall include an explanation of the 
extent to which interruptible or curtailable service revenues are or are 
not included in revenue credits in Statement AU under paragraph (h)(21) 
of this section.
    (33) Statement BH--Revenue data to reflect present rates. Statement 
BH is a statement of revenues for Period I and Period II, including 
those under present rates for wholesale services at issue, and for total 
electric service to reflect such revenues for wholesale services. The 
utility shall prepare this statement to include data consistent with 
criteria specified for presentation of revenue under the changed rate in 
Statement BG under paragraph (h)(32) of this section.
    (34) Statement BI--Fuel cost adjustment factors. Statement BI is a 
statement of monthly fuel cost adjustment factors under the changed rate 
and under the present rates, for Period I and Period II.
    (i) If the changed rate schedule embodies a fuel cost adjustment 
clause, the utility shall show detailed derivations of fuel cost 
adjustment factors computed to reflect fuel cost incurred during each 
month of Period I and Period II. Fuel cost adjustment factors are those 
required for revenue determinations in accordance with paragraph 
(h)(32)(i) of Statement BG.

[[Page 239]]

    (ii) If additional proposed fuel clause revenue data are reported in 
accordance with paragraph (h)(32)(ii) of Statement BG, the utility shall 
show detailed derivation of applicable monthly fuel adjustment factors.
    (iii) If the present rate includes a fuel cost adjustment change, 
the utility shall show detailed derivations of fuel cost adjustment 
factors for each month of Period I and Period II. The utility shall 
include in Statement BI derivations for all monthly factors required in 
the computation of present fuel clause revenues reported in Statement 
BH. The utility shall provide an explanation of the differences between 
the present and proposed fuel clauses.
    (iv) All fuel cost adjustment factors shall be cost-based. The 
utility shall make a computational showing that shall develop adjustment 
factors in a manner consistent with the requirements of Sec. 35.14 of 
this chapter. The utility shall provide supporting detail on cost by 
type of fuel, and shall show separately the allowable fuel clause cost 
component of purchased or interchanged energy. All fuel cost data shall 
be consistent with that included in operation and maintenance expenses 
in Statement AH under paragraph (h)(8) of this section.
    (35) Statement BJ--Summary data tables. Statement BJ is a tabular 
summary of portions of Period I and Period II data from specific cost of 
service statements in this paragraph. The utility shall summarize under 
descriptive titles the Period I and Period II data from the cost of 
service provisions listed in this subparagraph. The utility shall supply 
the data in the manner described for each cost of service statement and 
in this subparagraph.
    (i) If a utility provides in Statement BK information that is 
substantially equivalent to the information required in this statement, 
the utility may fulfill the requirements of this statement by 
specifically referring to the location in Statement BK of the 
information required in this subparagraph.
    (ii) The utility shall provide the information in the following 
statements as average total electric department monthly balances for 
each function and subfunction of plant:
    (A) Statement AD--(h)(4)(i) and (ii);
    (B) Statement AE--(h)(5)(i) and (ii);
    (C) Statement AF--(h)(6)(i) through (v);
    (D) Statement AG--(h)(7)(i) through (vi);
    (E) Statement AL--(h)(12)(i) and (ii);
    (F) Statement AM--(h)(13); and
    (G) Statement AN--(h)(14).
    (iii) The utility shall provide the information in the following 
statements as total electric department annual revenue and expense 
amounts:
    (A) Statement AH--(h)(8)(i), (iv) and (v);
    (B) Statement AI--(h)(9)(i) and (ii);
    (C) Statement AJ--(h)(10)(i);
    (D) Statement AK--(h)(11)(i);
    (E) Statement AP--(h)(16)(i) through (iv);
    (F) Statement AQ--(h)(17)(i) through (iii);
    (G) Statement AR--(h)(18)(i) through (iv);
    (H) Statement AS--(h)(19);
    (I) Statement AT--(h)(20); and
    (J) Statement AU--(h)(21).
    (iv) The utility shall provide all cost of capital amounts in the 
following statements.
    (A) Statement AV--(h)(22)(i)(A); and
    (B) Statement AW--(h)(23);
    (v) The utility shall provide all tax rate data in Statement AY, 
paragraph (h)(25)(i) of this section.
    (vi) The utility shall provide the information in the following 
statements as appropriate, for total electric department values and 
individual customer group values:
    (A) Statement BB--(h)(27)(i) through (vi);
    (B) Statement BD--(h)(29)(i) through (iv);
    (C) Statement BE--(h)(30)(iv) (A), (B), and (C);
    (D) Statement BG--(h)(32)(iii); and
    (E) Statement BH--(h)(33).
    (36) Statement BK--Electric utility department cost of service, 
total and as allocated. Statement BK is a statement of the claimed fully 
allocated cost of service of the utility developed and shown for Period 
I and Period II. The utility shall include analytical support for each 
rate proposed to be differentiated on a time-of-use basis. The utility 
shall also provide any marginal or incremental cost information that is 
required to support the changed rate

[[Page 240]]

developed on a marginal or incremental cost basis. The utility shall 
show allocations of fully distributed costs to the wholesale services 
subject to the changed rate accompanied by a comparison of allocated 
costs with revenues under the changed rate. Nothing in this subparagraph 
shall preclude use by any utility of any cost of service technique it 
believes reasonable and that is consistent with the requirements of 
paragraph (g) of this section.
    (i) The utility shall base the fully distributed cost of service and 
the allocations thereof upon data provided in the accompanying detailed 
statements required under this section and additional data which the 
utility may submit and support in connection with this statement. The 
cost of service data of the utility shall conform to the following 
requirements:
    (A) The total electric rate base and cost of service shall be 
itemized and summarized by major functions and in a format designed to 
facilitate review and analysis.
    (B) Based on the total electric rate base and cost of service, and 
on allocated or assigned component elements, the cost of service for 
each Statement BA wholesale customer rate group under paragraph (h)(26) 
shall be itemized and summarized by major functions in a format 
consistent with that shown for total electric.
    (C) The costs of service data for total electric and for each of the 
wholesale customer groups shall include data that show the return and 
the income taxes by components and in total, based upon the rate of 
return claimed by the utility in Statement AV under paragraph (h)(22). 
Individual components of income taxes shall include income taxes 
payable, provision for deferred income tax--debits and deferred income 
tax--credits, investment tax credits, or other adjustments.
    (D) The fully distributed cost of service study of the utility shall 
disclose the principal determinants for allocation of total electric 
costs among the wholesale customer groups, including but not limited to 
the following:
    (1) Computations showing the energy responsibilities of the 
wholesale services, with supporting detail;
    (2) Computations showing the demand responsibilities of the 
wholesale services, with supporting detail; and
    (3) Computations showing the specific assignment responsibilities of 
the wholesale services, with supporting detail.
    (ii) For the total electric service and for each wholesale customer 
rate group, the utility shall compare the fully distributed cost of 
service with the revenues under the changed rate. Based on the 
comparison, the utility shall show the revenue excess or deficiency and 
the earned rate of return computed for the total electric service and 
for each wholesale customer rate group.
    (iii) For any filing that contains Period II data, the utility shall 
supply any work papers and additional explanatory material necessary to 
support Statement BK, indexed, referenced and paginated as provided in 
paragraph (d)(5) of this section.
    (iv) The utility shall provide a tabular comparison of Period II 
total electric fully distributed cost items with those of Period I. The 
comparisons shall show item amounts for each of the two periods, and 
also shall show Period II item amounts as percentages of equivalent 
items for Period I. Comparisons shall include at least the following 
items, accompanied by explanatory notes with respect to significant 
variations among the comparative percentages:
    (A) Rate base;
    (B) Production expenses;
    (C) Transmission expenses;
    (D) Customer accounting, customer service and information, and sales 
expenses;
    (E) Depreciation expenses;
    (F) Taxes except income and revenue;
    (G) Income taxes;
    (H) Revenue taxes; and
    (I) Return claimed.
    (37) Statement BL--Rate design information. In support of the design 
of the changed rate, the utility shall submit the following material:
    (i) A narrative statement describing and justifying the objectives 
of the design of the changed rate. If the purpose of the rate design is 
to reflect costs, the utility shall state how that objective is 
achieved, and shall accompany

[[Page 241]]

it with a summary cost analysis that would justify the rate design, 
including any discounts or surcharges based on delivery voltage level or 
other specific considerations. Such summary cost analysis shall be 
consistent with, derived from, and cross-referenced to the data in cost 
of service Statement BK. If the rate design is not intended to reflect 
costs, whether fully distributed, marginal, incremental, or other, the 
utility shall provide a statement to justify the departure from cost-
based rates.
    (ii) If the billing determinants, such as quantities of demand, 
energy, or delivery points, are on different bases than the cost 
allocation determinants supporting such charges, the utility shall 
submit an explanation setting forth the economic or other considerations 
that warrant such departure. The information shall include at least the 
following:
    (A) If the individual rate for the demand, energy and customer 
charges do not correspond to the comparable cost classifications 
supporting such charges, a detailed explanation stating the reasons for 
the differences.
    (B) If the changed rate contains more than one demand or energy 
block, a detailed explanation indicating the rationale for the blocking 
and the considerations upon which such blocking is based, including 
adequate cost support for the specified blocking.
    (38) Statement BM--Construction program statement. Statement BM is a 
summary of data and supporting assumptions relating to the economics of 
any construction program to replace or expand the utility's power supply 
that shall be filed if the utility is filing for construction work in 
progress in rate base under Sec. 35.26(c)(3) of this chapter. The filing 
utility shall describe generally its program for providing reliable and 
economic power for the period beginning with the date of the filing and 
ending with the tenth year after the test period. The statement shall 
include an assessment of the relative costs of adopting alternative 
strategies including an analysis of alternative production plant, e.g., 
cogeneration, small power production, heightened load management and 
conservation efforts, additions to transmission plant or increased 
purchases of power, and an explanation of why the program adopted is 
prudent and consistent with a least-cost energy supply program.

(Federal Power Act, 16 U.S.C. 791-828c; Dept. of Energy Organization 
Act, 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46267, 3 CFR 142 (1978); 
Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))

[Order 91, 45 FR 46363, July 10, 1980, as amended at 47 FR 6826, Feb. 
17, 1982; Order 225, 47 FR 19056, May 3, 1982; Order 298, 48 FR 24354, 
June 1, 1983; 51 FR 7782, Mar. 6, 1986; Order 475, 52 FR 24993, July 2, 
1987; Order 545, 57 FR 53990, Nov. 16, 1992; Order 575, 60 FR 4854, Jan. 
25, 1995]