STATE OF ALASKA THE ALASKA PUBLIC UTILITIES COMMISSION

Transcription

1 STATE OF ALASKA THE ALASKA PUBLIC UTILITIES COMMISSION Before Commissioners: Sam Cotten, Chairman Alyce A. Hanley Dwight D. Ornquist Tim Cook James M. Posey In the Matter of the Establishment ) of Regulatory Cost Charge Rates for ) U Fiscal Year 1999 for Regulated ) Public Utilities ) ORDER NO. 2 ) In the Matter of the Establishment ) ) P-98-5 of Regulatory Cost Charge Rates for ) Fiscal Year 1999 for Pipeline ) ORDER NO. 2 Carriers ) ) BY THE COMMISSION: ORDER ESTABLISHING REGULATORY COST CHARGE RATES FOR FISCAL YEAR 1999; ALLOCATING COSTS; AND CLOSING DOCKETS Background AS and AS require regulated public utilities and pipeline carriers operating in Alaska to pay regulatory cost charges (RCCs) not to exceed.8 percent of their adjusted gross regulated operating revenues. (AS , AS ) Program receipts from the RCCs have been the Commission's budget source since Fiscal Year (FY) The FY98 RCC rates currently in effect are.568 percent of adjusted gross regulated operating revenue for pipeline carriers and regulated public utilities (except electric utilities) and $ per kilowatt-hour (kwh) for regulated electric utilities. Page 1 of 7

2 These statutes also directed the Commission to adopt regulations to establish a method to determine annually the amount of the RCC and to administer the RCC. The Commission's RCC regulations are set out in 3 AAC AAC The RCC regulations establish formulae and procedures for calculating and setting RCC rates for regulated utilities and pipeline carriers. The provisions of 3 AAC require that RCC rates be established annually by Commission order, using the formulas in 3 AAC This proceeding was opened for the purpose of establishing RCC rates for FY 1999 (FY99). The Commission s FY99 operating budget was appropriated by the Legislature in ch 137 SLA Proposed FY99 RCC rates were noticed to the public on August 2, 1998, by Order 2 U (1)/P-98-5(1), dated July 31, By that Order, the Commission, among other things, provided notice of the proposed FY99 RCC rates to all Alaska regulated utilities and pipeline carriers and provided a list of pipeline carriers and regulated utilities to which the FY99 RCC rates would be applicable. That Order also established a procedural schedule for the submission of written comments, for a public hearing, and for taking oral comments at hearing. A public hearing was convened in this proceeding on September 3, 1998, as scheduled. At hearing, oral comments were 2 The Commission also issued notice of the proposed FY99 RCC rates in seven newspapers published throughout the state. Page 2 of 7

3 taken from the Alaska Rural Electric Cooperative Association, Inc., as well as inquiries from the Commission and responses from the Commission Staff (Staff). At hearing, Staff suggested that in order to collect the RCC at the annual rate of percent to meet the Commission's approved annual budget for FY99, it would be necessary to collect the RCC at the rate of percent from all regulated utilities and pipeline carriers over the nine-month period from October 1, 1998, through June 30, A special public hearing was convened in this proceeding on September 10, 1998, the Commission allowed additional public comment on this matter. At that Meeting, Staff proposed a revised annual rate of percent for collection in a nine-month period. The resulting assessment is an RCC rate for October 1, 1998, through June 30, 1999, of percent for regulated public utilities (except electric utilities) and pipeline carriers effective October 1, In order to effect the.639 percent annual RCC rate for electric utilities, the rate will be $ per kwh for electric utilities gross revenues effective October 1, No comments were filed on the designation of pipeline carriers and utilities as regulated for purposes of paying the FY99 RCC rates. 3 The higher collection rate is required because the currently effective rate, which has been collected for the first quarter of FY99, is lower, at percent. Page 3 of 7

4 Discussion As discussed and concluded at its Public Meeting of September 10, 1998, the RCC annual rate for FY99 is set at.639 percent for regulated utilities (except electric utilities) and pipeline carriers. In order to collect the full amount of the FY99 annual RCC rate assessment, the Commission has determined that the amount collected should continue at the lower currently effective RCC rate of.568 percent for the period July 1, 1998, through September 30, To offset that collection for three months at the lower rate, the FY99 RCC must be increased for the remaining nine months of FY99. With this increase, the RCC rate, effective October 1, 1998, is set at.663 percent of revenues subject to RCCs of regulated utilities (except electric utilities) and pipeline carriers and at $ per kwh for electric utilities' gross revenues subject to the RCCs for billings rendered on and after October 1, Staff will prepare the tariff revisions necessary to implement the changes in the RCC rates for all regulated utilities and pipeline carriers that have currently tariffed RCCs. However, if a regulated utility or pipeline carrier prefers to prepare its own RCC tariff revision, it may do so but should notify Staff of 4 The Commission reduced the amount to be collected from RCC to cover its authorized budget by the amount of the FY98 carryover balance ($198,049). The Legislature appropriated such carryover to the Commission for its FY99 operating costs in 4, ch 137, SLA Page 4 of 7

5 that preference. The Commission will assume that regulated utilities and pipeline carriers will begin to bill the new RCC rates for billings rendered on and after October 1, Staff will use that effective date on all tariff sheets unless other arrangements have been made. If a regulated utility or pipeline carrier does not currently have a tariffed RCC provision and it wishes to recover the RCC from its customers or shippers, it may request Staff to prepare such a filing on its behalf or submit a tariff advice filing in accordance with 3 AAC (c) under the procedures set out in 3 AAC With the preceding determinations, the only matter remaining in this proceeding is the allocation of costs in accordance with currently applicable law. (AS , AS , and 3 AAC ) The costs directly assignable to these proceedings consist solely of court reporting costs of $94.40 for the public hearing held in this matter. Since this is a generic 5 proceeding involving entities who pay RCC rates, the allocable costs of this proceeding will be borne by the Commission. With that final determination, all outstanding substantive and procedural matters have been disposed of in this proceeding. Therefore, Dockets U and P-98-5 should be closed. 5 In allocating costs, the Commission must consider the payment of RCC rates by the entities involved. (AS and AS ) Page 5 of 7

6 ORDER THE COMMISSION FURTHER ORDERS: 1. As more fully delineated in the body of this Order, the FY99 regulatory cost charge rate for regulated utilities (excluding electric utilities) and pipeline carriers is established at an annual rate of.639 percent to be collected at the lower rate of.568 percent July 1, 1998, through September 30, 1998, and at the rate of.663 percent of revenues subject to regulated cost charges, effective for billings rendered on and after October 1, 1998, until changed by the Commission. 2. The FY99 regulatory cost charge rate for regulated electric utilities is established at $ per kilowatt-hour, based on the regulatory cost charge annual rate of.639 percent, effective for billings rendered on and after October 1, 1998, until changed by the Commission, as more fully set forth in Ordering Paragraph No. 1 of this Order. 3. All regulated utilities and pipeline carriers who wish to recover the regulatory cost charge from their customers or shippers must have an appropriately worded provision to that effect in their tariffs. The Commission Staff shall prepare the tariff revisions necessary to implement the changes in the regulatory cost charge rates set forth in Ordering Paragraph Nos. 1 and 2 above for all regulated public utilities and pipeline carriers that have currently tariffed regulatory cost charges. Page 6 of 7

7 The changes are effective for billings rendered on and after October 1, If a regulated public utility or pipeline carrier does not currently have a tariffed regulatory cost charge provision and it wishes to recover the regulatory cost charge from its customers or shippers, it may request the Commission Staff to prepare such a filing or submit a tariff advice filing in accordance with 3 AAC (c). 4. The allocable costs of these proceedings will be borne by the Commission. 5. Dockets U and P-98-5 are closed. DATED AND EFFECTIVE at Anchorage, Alaska, this 24th day of September, BY DIRECTION OF THE COMMISSION ( S E A L ) Page 7 of 7