04 N.C. Admin. Code 11 R06-89 - DEFERRAL ACCOUNTING FOR NATURAL GAS EXPANSION
(a) An LDC
may request Commission approval to create a regulatory asset account for the
purpose of accruing a return on its investment in transmission lines
constructed as part of a Project of the type that would be eligible for use of
an expansion fund pursuant to
G.S.
62-158. Such a request may be filed with the
Commission as part of a request for approval of a Project pursuant to Rule
R6-84 but in no event less than 45 days prior to the date the accrual is to
begin. AFUDC will accrue during construction; however, the accrual under this
Rule shall begin no sooner than the date construction is completed and continue
until the date new rates become effective in the LDC's next general rate case
in which the investment in the Transmission Facilities are included in the
LDC's rate base. The Commission, however, may terminate the accrual upon the
motion of any interested party and after notice to the LDC and opportunity for
hearing. The accrual under this Rule for a particular project shall not exceed
five (5) years unless so authorized by the Commission upon a showing by the LDC
of good cause.
(b) For the purposes
of this Rule, "Transmission Facilities" shall include the gas pipeline and all
appurtenant related facilities, including land, mains, valves, meters,
boosters, regulators, compressors and their driving units and appurtenances,
and other related equipment constructed as part of the Project, the purpose of
which is to facilitate the transportation of natural gas from an interstate
pipeline, other portions of the LDC's system including existing transmission
mains, or other suppliers of gas for ultimate delivery to a distribution
system(s). Transmission Facilities shall end at the inlet side of the equipment
which meters or regulates the entry of gas into one or more distribution
systems.
(c) In determining whether
to approve a request under this rule, the Commission will consider the
desirability of providing gas service to the new area covered by the Project,
the size and relative infeasibility of the Project for which deferral
accounting is sought, the LDC's overall expansion plans as reported pursuant to
G.S.
62-36A, the LDC's currently earned return on
equity, the amount of the investment as a percentage of the LDC's rate base and
the amount of the anticipated accrual as a percentage of the LDC's revenues,
the estimated impact of the accrual on rates when the investment is included in
the LDC's rate base in a general rate case, and any other factors affecting the
public interest.
(d) The
anticipated accrual under this Rule shall not affect the calculation of the net
present value of a Project for the purpose of the use of an expansion fund
pursuant to
G.S.
62-158 and Rule R6-84. Approval of the use of
expansion funds as partial funding for a Project pursuant to
G.S.
62-158 is not required for the Project to be
eligible for Commission approval of the deferral accounting treatment under
this Rule.
(e) Upon receiving
Commission approval, the LDC may, on a monthly basis, debit the account in an
amount equal to the LDC's currently authorized overall rate of return on its
investment in Transmission Facilities constructed as part of Projects that have
been completed but not included in rate base.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.