The commission may evaluate a utility's management efficiency
based upon the utility's particular circumstances and considering a range of
factors that may differ among utilities. In evaluating a utility's management
efficiency, the commission may consider any of the factors listed in subrule
29.3(1) and any additional relevant factors. No single factor will be deemed
conclusive evidence of efficiency or inefficiency. In performing the
evaluation, the commission may collect data to compare a utility to other
rate-regulated utilities providing the same service within the state of Iowa.
The commission may consider data for time periods outside a rate case test
year.
(1)
Factors.
The commission may consider the following factors:
a. The price per unit of service (including
amounts collected subject to refund) by customer class and type of
service.
b. Operation and
maintenance costs per unit of service. Low operations and maintenance costs may
not support a finding of efficiency if quality of service is
substandard.
c. Quality of service,
as reflected in objective measures of service quality, customer complaints
shown in company and commission records, findings made in complaint
proceedings, penalties assessed, and measures of customer
satisfaction.
d. Customer
mix.
e. The total compensation for
each officer of the utility.
f. The
company's bad debt ratio.
g.
Innovative practices implemented by utility management that result in improved
service or that control costs.
h.
Geographic service territory.
i.
Economic conditions in the areas served.
j. Weather patterns and disasters.
(2)
Electric
utilities. When evaluating an electric utility, in addition to
considering the factors listed in subrule 29.3(1), the commission may consider
factors specific to electric utilities including the following:
a. Fuel cost per kwh.
b. Availability for each generating unit with
2,000 or more service hours per year.
c. Companywide load factor.
d. Development and implementation of energy
efficiency programs.
(3)
Natural gas utilities. When evaluating a natural gas utility,
in addition to considering the factors listed in subrule 29.3(1), the
commission may consider factors specific to natural gas utilities including the
following:
a. Total cost per unit of gas
purchased from a pipeline (to be considered separately from operations and
maintenance costs).
b. Total cost
per unit of gas purchased from other sources (to be considered separately from
operations and maintenance costs).
c. Residential and commercial sales volume in
relation to investment in the system (rate base).
d. Unaccounted-for gas as a percentage of
total sales volume.
e. Development
and implementation of energy efficiency programs.