OAR 860-037-0630
Use of Deferred Accounting as it Applies to Wastewater Operations by Wastewater Utilities
(1)
Definitions: The following definitions shall be used in this rule:(a)
“Amortization” means the inclusion in rates of an amount that has been deferred under ORS 757.259 (Amounts includable in rate schedule) and which is designed to eliminate, over time, the balance in an authorized deferred account. Amortization does not include the normal positive and negative fluctuations in a balancing account;(b)
“Deferred Accounting” means the recording in a balance sheet account, with Commission authorization under ORS 757.259 (Amounts includable in rate schedule), of a current expense or revenue associated with current service for later reflection in rates.(2)
Expiration: Any authorization to use a deferred account expires 12 months from the date the deferral is authorized to begin. If a deferral under ORS 757.259 (Amounts includable in rate schedule) is reauthorized, the reauthorization expires 12 months from the date the reauthorization becomes effective.(3)
Contents of Application: Application for deferred accounting by a wastewater utility, a ratepayer, or other applicant shall include:(a)
A description of the wastewater utility expense or revenue for which deferred accounting is requested;(b)
The reason(s) deferred accounting is being requested and a reference to the section(s) of ORS 757.259 (Amounts includable in rate schedule) under which deferral can be authorized;(c)
The account proposed for recording of the amounts to be deferred and the account which would be used for recording the amounts in the absence of approval of deferred accounting;(d)
An estimate of the amounts to be recorded in the deferred account for the 12-month period subsequent to the application; and(e)
A copy of the notice of application for deferred accounting and list of persons served with the notice.(4)
Reauthorization: Application for reauthorization to use a deferred account shall be made not more than 60 days prior to the expiration of the previous authorization for the deferral. Application for reauthorization shall include the requirements set forth in subsections (3)(a) through (3)(e) of this rule and, in addition, the following information:(a)
A description and explanation of the entries in the deferred account to the date of the application for reauthorization; and(b)
The reason(s) for continuation of deferred accounting.(5)
Exceptions: Authorization under ORS 757.259 (Amounts includable in rate schedule) to use a deferred account is necessary only to add amounts to an account, not to retain an existing account balance and not to amortize amounts which have been entered in an account under an authorization by the Commission. Interest, once authorized to accrue on unamortized balances in an account, may be added to the account without further authorization by the Commission, even though authorization to add other amounts to an account has expired.(6)
Notice of Application: The applicant shall serve a notice of application upon all persons who were parties in the wastewater utility’s last general rate case. If the applicant is other than a wastewater utility, the applicant shall serve a copy of the application upon the affected wastewater utility. A notice of application shall include:(a)
A statement that the applicant has applied to the Commission for authorization to use deferred accounting; or for an order requiring that deferred accounting be used by a wastewater utility;(b)
A description of the wastewater utility expense or revenue for which deferred accounting is requested;(c)
The manner in which an interested person can obtain a copy of the application;(d)
A statement that any person may submit to the Commission written comment on the application by the date set forth in the notice, which date can be no sooner than 25 days from the date of the application; and(e)
A statement that the granting of the application does not authorize a change in rates, but permits the Commission to consider allowing such deferred amounts in rates in a subsequent proceeding.(7)
Public Meetings: Unless otherwise ordered by the Commission, applications for use of deferred accounting will be considered at the Commission’s public meetings.(8)
Reply comments: Within 10 days of the due date for comments on the application from interested persons, the applicant and the wastewater utility, if the wastewater utility is not the applicant, may file reply comments with the Commission. Those comments shall be served on persons who have filed the initial comments on the application.(9)
Amortization: Amortization in rates of a deferred amount shall only be allowed in a proceeding, whether initiated by the wastewater utility or another party. The Commission may authorize amortization of such amounts only for wastewater utility expenses or revenues for which the Commission previously has authorized deferred accounting. Upon request for amortization of a deferred account, the wastewater utility shall provide the Commission with its financial results for a 12-month period or for multiple 12-month periods to allow the Commission to perform an earnings review. The period selected for the earnings review encompasses all or part of the period during which the deferral took place or must be reasonably representative of the period of deferral. Unless authorized by the Commission to do otherwise:(a)
A wastewater utility shall request that amortizations of wastewater deferred accounts commence no later than one year from the date that deferrals cease for that particular account; and(b)
In the case of ongoing balancing accounts, the wastewater utility shall request amortization at least annually, unless amortization of the balancing account is then in effect.
Source:
Rule 860-037-0630 — Use of Deferred Accounting as it Applies to Wastewater Operations by Wastewater Utilities, https://secure.sos.state.or.us/oard/view.action?ruleNumber=860-037-0630.