3 AAC 47.070 - Billing of regulatory cost charges

(a) A regulated utility or pipeline carrier may implement a separate charge on its bills to retail customers and shippers, including bills rendered by a local exchange carrier on behalf of an interexchange carrier, to collect the regulatory cost charge, subject to the following limitations:

(1) in the case of a regulated electric utility, the amount billed to customers may be no more than the regulatory cost charge rate per kilowatt-hour times the number of kilowatt-hours billed;

(2) in the case of a local exchange carrier, the amount billed to customers may be no more than the regulatory cost charge rate times the amount billed for all local services;

(3) in the case of an interexchange carrier, including bills rendered by a local exchange carrier on behalf of an interexchange carrier, the amount billed to the customers may be no more than the regulatory cost charge rate times the amount billed for intrastate interexchange service;

(4) in the case of all other regulated utilities and pipeline carriers, the amount billed may be no more than the regulatory cost charge rate times the amount billed for all services; and

(5) if the commission requires payment of the regulatory cost charge in a single annual payment under 3 AAC 47.030(e),

(A) at the beginning of the complete billing period after a regulated utility or pipeline carrier has billed for the full amount of the charge imposed by the commission plus the net cost of capital resulting from the time between the date the regulatory cost charge is paid to the state and the date the regulatory cost charge is collected by the regulated utility or pipeline carrier from its customers or shippers, the utility or carrier shall discontinue billing its regulatory cost charge, including the net cost of capital;

(B) a regulated utility or pipeline carrier may, without prior commission approval, reduce the regulatory cost charge, including the net cost of capital, it bills its customers or shippers for the final month of collection to minimize the amount that would otherwise be overcollected; and

(C) if the regulatory cost charge, including the net cost of capital, collected by a regulated utility or pipeline carrier from its customers or shippers exceeds the amount imposed by the commission by more than two percent, that utility or pipeline carrier shall propose to the commission a method of returning to its customers or shippers the excess amount.

(b) A separate charge implemented by a regulated utility or pipeline carrier in accordance with (a) of this section must be entitled "Regulatory Cost Charge" on bills to customers or shippers.

(c) A regulated utility or pipeline carrier may implement a charge in accordance with (a) of this section, without prior commission approval, after the commission has implemented the initial or revised regulatory cost charge. Within 15 days after implementing a charge under (a) of this section, a regulated utility or pipeline carrier shall submit a tariff filing under the procedures set out in 3 AAC 48.220, and 3 AAC 48.270.

(d) A regulated utility or pipeline carrier may not include regulatory cost charges in rates or charges to customers or shippers except as provided in (a) of this section.

(e) The failure of a regulated utility or pipeline carrier to implement a separate charge on its bills to customers or shippers to collect the regulatory cost charge does not affect the obligation of the regulated utility or pipeline carrier to pay the regulatory cost charge to the state.

Notes

3 AAC 47.070

Eff. 10/21/92, Register 124; am 12/1/94, Register 132; am/readopt 12/1/95, Register 136; am 6/13/2006, Register 178; am 11/6/2016, Register 220, January 2017; am 10/27/2017,Register 224, January 2018

Effective 12/1/95 (Register 136), the Alaska Public Utilities Commission readopted and amended the preceding section under AS 42.05 and AS 42.06 as changed by ch. 1, SLA 1995.

Authority:AS 42.05.141

AS 42.05.151

AS 42.05.254

AS 42.06.140

AS 42.06.286