54-7-12 - Rate increase or decrease -- Procedure -- Effective dates -- Electrical or telephone cooperative.
54-7-12. Rate increase or decrease -- Procedure -- Effective dates -- Electrical ortelephone cooperative.
(1) As used in this section:
(a) (i) "Base rates" means those charges included in a public utility's generally applicablerate tariffs, including:
(A) a fare;
(B) a rate;
(C) a rental;
(D) a toll; or
(E) any other charge generally applicable to a public utility's rate tariffs.
(ii) Unless included by a commission order, "base rates" does not include chargesincluded in:
(A) a deferred account;
(B) a balancing account;
(C) a major plant addition surcharge;
(D) a major plant addition surcredit;
(E) a special contract; or
(F) a public utility program offering.
(b) (i) "Complete filing" means an application filed by a public utility that substantiallycomplies with minimum filing requirements established by the commission, by rule, for a generalrate increase or decrease.
(ii) The commission shall within 180 days after March 25, 2009 create and finalize rulesconcerning the minimum requirements to be met for an application to be considered a completefiling.
(c) "General rate decrease" means:
(i) any direct decrease to a public utility's base rates; or
(ii) any modification of a classification, contract, practice, or rule that decreases a publicutility's base rates.
(d) "General rate increase" means:
(i) any direct increase to a public utility's base rates; or
(ii) any modification of a classification, contract, practice, or rule that increases a publicutility's base rates.
(2) (a) A public utility that files for a general rate increase or general rate decrease shallfile a complete filing with the commission setting forth the proposed rate increase or decrease.
(b) (i) For purposes of this Subsection (2), a public utility's application for a general rateincrease or decrease shall be considered a complete filing unless within 30 days after the day onwhich the commission receives the public utility's application, the commission issues an orderdescribing information that the public utility must provide for the application to be considered acomplete filing.
(ii) Subject to Subsection (2)(b)(iii) and within 14 days after the day on which theapplication is received by the commission, a party or a person may file a motion to challengewhether an application for a general rate increase or decrease is a complete filing.
(iii) A party or a person may not file a motion described in Subsection (2)(b)(ii) unlessthe person or party has first filed a motion to intervene with the commission.
(c) If, in accordance with Subsection (2)(b)(i), the commission issues an order that an
application is not a complete filing, the commission shall:
(i) determine the materiality of an application deficiency; and
(ii) (A) if the deficiencies are not material, issue an order that the 240-day perioddescribed in Subsection (3)(a) shall continue without delay or be suspended and resume when thepublic utility files the required information; or
(B) if the deficiencies are material, issue an order that the 240-day period described inSubsection (3)(a) shall start over when the public utility files the required information.
(d) (i) The commission shall, after reasonable notice, hold a hearing to determinewhether the proposed rate increase or decrease, or some other rate increase or decrease, is justand reasonable.
(ii) If a rate decrease is proposed by a public utility, the commission may waive a hearingunless it seeks to suspend, alter, or modify the rate decrease.
(e) Except as otherwise provided in Subsection (2)(d), (3), or (4), a proposed rateincrease or decrease is not effective until after completion of the hearing and issuance of a finalorder by the commission concerning the proposed increase or decrease.
(3) (a) Within 240 days after a public utility submits a complete filing, the commissionshall issue a final order to:
(i) grant the proposed general rate increase or decrease;
(ii) grant a different general rate increase or decrease; or
(iii) deny the proposed general rate increase or decrease.
(b) If the commission does not issue a final written order within 240 days after the publicutility submits a complete filing in accordance with Subsection (3)(a):
(i) the public utility's proposed rate increase or decrease is final; and
(ii) the commission may not order a refund of any amount already collected or returnedby the public utility under Subsection (4)(a).
(4) (a) (i) A request for interim rates shall be made within 90 days after the day on whicha public utility files a complete filing for a general rate increase or a general rate decrease.
(ii) The commission, on its own initiative or in response to an application by a publicutility or other party, may, after a hearing, allow any rate increase or decrease proposed by apublic utility, or a reasonable part of the rate increase or decrease, to take effect on an interimbasis within 45 days after the day on which the request is filed, subject to the commission's rightto order a refund or surcharge.
(iii) The evidence presented in the hearing held pursuant to this Subsection (4) need notencompass all issues that may be considered in a rate case hearing held pursuant to Subsection(2)(d), but shall establish an adequate prima facie showing that the interim rate increase ordecrease is justified.
(b) The commission may, after a hearing, issue a final order before the expiration of 240days after the day on which the public utility files a complete filing establishing the utility'srevenue requirement and fixing the utility's allowable rates before the commission determines thefinal allocation of the increase or decrease among categories of customers and classes of service.
(c) (i) If the commission in the commission's final order on a public utility's revenuerequirement finds that the interim increase ordered under Subsection (4)(a)(ii) exceeds theincrease finally ordered, the commission shall order the public utility to refund the excess tocustomers.
(ii) If the commission in the commission's final order on a public utility's revenue
requirement finds that the interim decrease ordered under Subsection (4)(a)(ii) exceeds thedecrease finally ordered, the commission shall order a surcharge to customers to recover theexcess decrease.
(5) (a) Notwithstanding any other provisions of this title, any schedule, classification,practice, or rule filed by a public utility with the commission that does not result in any rateincrease shall take effect 30 days after the date of filing or within any lesser time the commissionmay grant, subject to its authority after a hearing to suspend, alter, or modify that schedule,classification, practice, or rule.
(b) When the commission suspends a schedule, classification, practice, or rule, thecommission shall hold a hearing on the schedule, classification, practice, or rule before issuingits final order.
(c) For purposes of this Subsection (5), any schedule, classification, practice, or rule thatintroduces a service or product not previously offered may not result in a rate increase.
(6) Notwithstanding any other provision of this title, whenever a public utility files withthe commission any schedule, classification, practice, or rule that does not result in an increase inany rate, fare, toll, rental, or charge, the schedule, classification, practice, or rule shall take effect30 days after the date of filing or at any earlier time the commission may grant, subject to theauthority of the commission, after a hearing, to suspend, alter, or modify the schedule,classification, practice, or rule.
(7) This section does not apply to any rate changes of an electrical or telephonecooperative that meets all of the requirements of this Subsection (7).
(a) (i) The cooperative is organized for the purpose of either distributing electricity orproviding telecommunication services to its members and the public at cost.
(ii) "At cost" includes interest costs and a reasonable rate of return as determined by thecooperative's board of directors.
(b) The cooperative's board of directors and any appropriate agency of the federalgovernment have approved the rate increase or other rate change and all necessary tariff revisionsreflecting the increased rate or rate change.
(c) Before implementing any rate increases, the cooperative has held a public meeting forall its customers and members. The cooperative shall mail a notice of the meeting to all of thecooperative's customers and members not less than 10 days prior to the date that the meeting isheld.
(d) The cooperative has filed its tariff revisions reflecting the rate increase or other ratechange with the commission, who shall make the tariffs available for public inspection.
(8) Notwithstanding Subsections (2) and (4), the procedures for implementing aproposed rate increase by a telephone corporation having less than 30,000 subscriber access linesin the state are provided in this Subsection (8).
(a) (i) The proposed rate increase by a telephone corporation subject to this Subsection(8) may become effective on the day the telephone corporation files with the commission theproposed tariff revisions and necessary information to support a determination by thecommission that the proposed rate increase is just and reasonable.
(ii) The telephone corporation shall notify the commission and all potentially affectedaccess line subscribers of the proposed rate increase 30 days before filing the proposed rateincrease or change.
(b) (i) The commission may investigate whether the proposed rate increase is just and
reasonable.
(ii) If the commission determines, after notice and hearing, that the rate increase is unjustor unreasonable in whole or in part, the commission may establish the rates, charges, orclassifications that the commission finds to be just and reasonable.
(c) The commission shall investigate and hold a hearing to determine whether anyproposed rate increase is just and reasonable if 10% or more of the telephone corporation'spotentially affected access line subscribers file a request for agency action requesting aninvestigation and hearing.
Amended by Chapter 319, 2009 General Session