[33 Pa.B. 1106]
[Continued from previous Web Page]
VII. RATE OF RETURN 1. Provide capitalization and capitalization ratios for the last 5-year period and projected through the next two years (with short-term debt and without short-term debt for the company, parent and system (consolidated).
a. Provide year-end interest coverages before and after taxes for the last three years and at the latest date (indenture and SEC bases) for the company, parent and system (consolidated).
b. Provide year-end preferred stock dividend coverages for last three years and at latest date (charter and SEC bases).
2. Provide latest prospectus (company and parent).
3. Supply projected capital requirements and sources of company, parent and system (consolidated) for the test year and each of three comparable future years.
4. Provide a schedule of debt and preferred stock of company, parent and system (consolidated) as of test year-end and latest date, detailing for each issue (if applicable):
a. Date of issue.
b. Date of maturity.
c. Amount issued.
d. Amount outstanding.
e. Amount retired.
f. Amount required.
g. Gain on reacquisition.
h. Coupon rate.
i. Discount or premium at issuance.
j. Issuance expenses.
k. Net proceeds.
l. Sinking fund requirements.
m. Effective interest rate.
n. Dividend rate.
o. Effective cost rate.
p. Total average weighted effective cost rate.
5. Supply financial data of company and/or parent for last five years:
a. Earnings-price ratio (average).
b. Earnings-book value ratio (per share basis) (avg. book value).
c. Dividend yield (average).
d. Earnings per share (dollar).
e. Dividends per share (dollars).
f. Average book value per share yearly.
g. Average yearly market price per share (monthly high-low basis).
h. Pre-tax funded debt interest coverage.
i. Post-tax funded debt interest coverage.
j. Market price-book value ratio.
6. Provide AFUDC charged by company at test year-end and latest date, explain method by which rate was calculated and provide workpaper showing derivation of the company's current AFUDC rate.
7. Set forth provisions of company's and parent's charter and indentures (if applicable) which describe coverage requirements, limits on proportions of types of capital outstanding, and restrictions on dividend payouts.
8. Attach copies of the summaries of the company's projected budgets for the next two years (revenues, expenses and capital).
9. Describe long-term debt reacquisitions by company and parent as follows:
a. Reacquisitions by issue by year.
b. Total gain on reacquisitions by issue by year.
c. Accounting of gain for income tax and book purposes.
10. Provide the following information concerning compensating bank balance requirements for actual test year:
a. Name of each bank.
b. Address of each bank.
c. Type of accounts with each bank (checking, savings, escrow, other services, etc.).
d. Average daily balance in each account.
e. Amount and percentage requirements for compensating bank balances at each bank.
f. Average daily compensating bank balance at each bank.
g. Documents from each bank explaining compensating bank balance requirements.
h. Interest earned on each type of account.
11. Provide the following information concerning bank notes payable for actual test year:
a. Line of credit at each bank.
b. Average daily balances of notes payable to each bank, by name of bank.
c. Interest rate charged on each bank note (prime rate, formula).
d. Purpose of each bank note (e.g., construction, fuel storage, working capital, debt retirement).
e. Prospective future need for this type of financing.
12. Submit details on company or parent common stock offerings (past five years to present) as follows:
a. Date of prospectus.
b. Date of offering.
c. Record date.
d. Offering period--dates and number of days.
e. Amount and number of shares of offering.
f. Offering ratio (if rights offering).
g. Percent subscribed.
h. Offering price.
i. Gross proceeds per share.
j. Expenses per share.
k. Net proceeds per share (i--j).
l. Market price per share.
(1) At record date.
(2) At offering date.
(3) One month after close of offering.
m. Average market price during offering.
(1) Price per share.
(2) Rights per share--average value of rights.
n. Latest reported earnings per share at time of offering.
o. Latest reported dividends at time of offering.
13. Attach chart explaining company's corporate relationship to its affiliates (system structure).
14. If the utility plans to make a formal claim for a specified allowable rate of return, provide the following data in statement or exhibit form:
a. Claimed capitalization and capitalization ratios with supporting data.
b. Claimed cost of long-term debt with supporting data.
c. Claimed cost of short-term debt with supporting data.
d. Claimed cost of total debt with supporting data.
e. Claimed cost of preferred stock with supporting data.
f. Claimed cost of common equity with supporting data.
15. Supply copies of the following documents for the company and, if applicable, its parent:
a. Most recent annual report to shareholders including any statistical supplements.
b. Most recent SEC form 10K.
c. All SEC form 10Q reports issued within last year.
16. Supply copies of the company's balance sheets for each month/quarter for the last two years.
17. Provide the bond rating history for the company and, if applicable, its parent from the major credit rating agencies for the last five years.
18. Provide copies of all bond rating reports relating to the company and, if applicable, its parent for the past two years.
19. Supply copies of all presentations by the company's and, if applicable, its parent's management to securities analysts during the past two years. This would include presentations of financial projections.
20. Provide a listing of all securities issuances for the company and, if applicable, its parent projected for the next two years. The response should identify for each projected issuance the date, dollar amount, type of security, and effective cost rate.
21. Identify any plan by the company to refinance high cost long-term debt or preferred stock.
22. Provide copies of all securities analysts reports relating to the company and/or its parent issued within the past two years.
23. If applicable, supply a listing of all common equity infusions from the parent to the company over the past five years. In each case, identify date and dollar amount.
24. If applicable, identify the company's common dividend payments to its parent for each of the last five years.
25. Provide the latest year-by-year financial projections for the company for the next five years. Also, please indicate the date these projections were prepared; whether approved by management; and whether the projections have been submitted to bond rating agencies. The information will be treated in a confidential manner, if requested.
26. Provide the company's 5-year construction budget.
27. Identify the company's and, if applicable, its parent's capital structure targets (percentages of capital types). Provide the complete basis for the capital structure targets.
28. For each month, of the most recent 24 months, supply the company's
a. Short-term debt balance.
b. Short-term debt interest rate.
c. Balance of construction work in progress.
d. Balance of construction work in progress which is eligible for AFUDC accrual:
29. Fully identify all debt (other than instruments traded in public markets) owed to all shareholders, corporate officers, or members of the board of directors, its affiliates, parent company, or subsidiaries.
30. Provide a summary statement of all stock dividends, splits, or par value changes during the 2- year calendar period preceding the rate case filing.
31. If a claim of the filing utility is based on utilization of the capital structure or capital costs of the parent company and system (consolidated), the reasons for this claim must be fully stated and supported.
32. To the extent not provided elsewhere, supply financial data of company and/or parent for the last five years.
a. Times interest earned ratio--pre and post tax basis.
b. Preferred stock dividend coverage ratio--post tax basis.
c. Times fixed charges earned ratio--pre tax basis.
d. Dividend payout ratio.
e. AFUDC as a percent of earnings available for common equity.
f. Construction work in progress as a percent of net utility plant.
g. Effective income tax rate.
h. Internal cash generations as a percent of total capital requirements.
VIII. RATE STRUCTURE AND COST OF SERVICE 1. Provide a complete (fully allocated) cost of service study if an interval of approximately three years has passed between a previous cost of service study and the historic test year date of the current filing. The cost of service study shall provide the necessary data to determine if the water rate structure is fair and equitable to all classifications of water users (including public and private fire protection customers) and reflects, as nearly as possible, the cost of providing the service. The study shall correspond to the test year proposed revenue requirements (future test year only, if used). Summaries of conclusions and all back-up calculations shall be made part of the submission of the cost of service study, and shall include the following:
a. A description of the allocation methods used. A comparison of the allocated cost of service by class with the present and proposed revenues. A cost of service schedule showing the rate of return produced by present and proposed rates by class of service.
b. Indicate if the method used for establishing the allocation factors in the cost of service study deviates from the previous study submitted in the last rate case. If yes, indicate which allocation factors were changed and discuss the reason for the changes.
c. Supply the average day, the maximum day and the maximum hour deliveries to the system adjusted for storage for the test year and two prior years. Also provide workpapers, analyses, comparative data or other documentation supporting the estimated maximum day and peak hour demands by customer class reflected in the company's cost of service study.
d. Explain thoroughly the methodology employed if the company distinguishes between transmission and distribution mains in its allocation of costs.
e. Provide a detailed explanation of how storage is utilized to meet base, maximum day and maximum hour demands.
f. Provide workpapers, calculations and supporting documentation which develop the equivalent meters and equivalent service line weights reflected in the company's cost of service study.
g. Provide all workpapers and supporting documentation for the fire flow requirement and duration utilized in the cost of service study.
h. Provide a breakdown of the number and size of private fire services according to the general water service class of customer.
i. Provide a calculation of the company's base cost of water per unit of consumption.
j. Provide a detailed cost analysis that supports the company's customer charges, by meter size, showing all direct and indirect costs included.
2. Provide a listing of negotiated special rate contracts which includes a comparison of revenues under special rate contracts and under tariff rates. Provide the cost of service treatment of any deficiency in revenues resulting from the negotiated special rate contracts.
IX. QUALITY OF SERVICE 1. Indicate whether the company is in violation of any provision of the Pennsylvania Safe Drinking Water Act (SDWA) or any rule, regulation or order, or any condition of any permit, variance or exemption granted by the Department of Environmental Protection (DEP), or its predecessor.
a. Provide information indicating whether the company is in compliance with SDWA provisions at 25 Pa. Code, § 109.401 regarding general public notification requirements:
(i) Provide a copy of each public notification given in accordance with this section, since the last rate proceeding.
(ii) Provide a detailed explanation of all actions taken to remedy an acute violation, and/or to comply with the requirements prescribed by a variance or exemption.
(iii) State whether any fines or penalties were assessed by DEP, and indicate the amounts paid by the company.
b. Provide the most recent copies of all annual consumer confidence reports issued pursuant to SDWA Amendments of 1996 since the last rate proceeding.
(i) Provide any annual consumer confidence reports which reflect violations of state and federal safe drinking water requirements.
(ii) Explain how these violations were resolved.
2. Indicate whether the company is in compliance with 52 Pa. Code, § 65.5(a) regarding normal operating pressure standards, and with 52 Pa. Code, § 65.6(d) regarding pressure surveys at regular intervals.
a. Provide details on any major water pressure problems which had occurred since the last rate proceeding in any part of the water distribution system.
b. Describe any action taken on a temporary basis, and the long term solutions developed to address any major water pressure problems.
3. Provide support to demonstrate that water service is being furnished on a continuous basis by supplying a summary of the company's records of each service interruption greater than 24 hours since the last rate proceeding.
4. Provide a discussion of the company's policy, or provide a copy of the policy if in written form, on tracking and responding to customer complaints.
a. Provide a summary report demonstrating the company's compliance with 52 Pa. Code, § 65.3 regarding the full and prompt investigation of service or facility complaints and the record keeping requirements of such complaints.
5. Indicate whether the company is in compliance with 52 Pa. Code, § 65.4(b) regarding complete and current mapping of the entire distribution system.
6. Provide a summary report demonstrating the company's efforts in water conservation, since the last rate proceeding, pursuant to 52 Pa. Code, § 65.20.
7. Provide a discussion of the company's policy regarding meter requirements, replacements and testing. State if the company's procedures are in compliance with 52 Pa. Code, § 65.8(b).
a. Provide meter test records as required in 52 Pa. Code, § 65.8(c) for the 50 meters most recently removed from service.
b. Provide a discussion of the company's policy and history of compliance with 52 Pa. Code, § 65.9 regarding adjustment of bills for meter error within the last year.
X. BALANCE SHEET 1. Provide a comparative balance sheet for the test year-end and the preceding year-end.
2. Provide a detail of other physical property, investments in affiliated companies and other investments.
3. Provide the amounts and purpose of special cash accounts as of the test-year end.
4. Describe the nature and amounts of notes receivable, accounts receivable from associated companies, and any other significant receivables, other than customers' accounts.
5. Provide the amount of accumulated reserve for uncollectible accounts, method and rate of accrual, amounts accrued and amounts written-off in each of the last three years.
6. Provide a list of prepayments and give an explanation of special prepayments.
7. Explain in detail any other significant (in amount) current assets listed on balance sheet.
8. Explain in detail, including the amount and purpose, the deferred asset accounts that currently operate to effect or will at a later date affect the operating account supplying:
a. Origin of these accounts.
b. Probable changes to this account in the near future.
c. Amortization of these accounts currently charged to operations or to be charged in the near future.
9. Explain the nature of accounts payable to associated companies, and note amounts of significant items.
10. Provide details of other deferred credits as to their origin and disposition policy (e.g., amortization).
11. Provide details of any significant reserves, other than depreciation and bad debt, appearing on balance sheet.
12. Provide an analysis of unappropriated retained earnings for the test year and two preceding years.
13. Describe the purpose of any advances made by the company to its parent corporation and describe all terms and conditions associated with such advances, including an estimate of future advances or repayments that are expected to occur.
XI. OTHER DATA 1. Provide the company's monthly balance sheets and income statements for each month of the historic and future test year.
2. Supply a copy of internal and independent audit reports of the test year and prior calendar year, noting any exceptions and recommendations and disposition thereof.
3. Provide all monthly and/or quarterly budget variance reports to management and/or the board of directors submitted during the past year. Please provide the most recent detailed budget variance report which the company compiled, and update as additional reports are issued.
4. Provide a copy of the company's most recent operating and capital budgets.
5. Provide a schedule that shows the percentage of unaccounted for water for the test year and two prior years. Describe how this amount was determined and explain any steps taken to reduce unaccounted for water.
6. Provide a corporate history (include the dates of original incorporation, subsequent mergers and/or acquisitions). Indicate all counties and cities and other governmental subdivisions to which service is provided (including service areas outside the state), and the total population in the area served.
[Pa.B. Doc. No. 03-348. Filed for public inspection February 28, 2003, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
