Okla. Admin. Code § 165:35-33-9 - Cost recovery
(a) Each
utility seeking cost recovery of expenditures outside of a general rate review
related to securing its Critical Infrastructure shall prepare and make
available for inspection, its Plan and any subsequent Plan Update Reports in
accordance with this Subchapter.
(b) A utility shall file an application with
the Commission for cost recovery as provided for within this Subchapter. Such
cost recovery shall only occur to the extent the utility has incurred all or a
portion of its actual security-related costs.
(c) Unless otherwise ordered by the
Commission , the utility shall have the burden of proving compliance with all of
the provisions of this Subchapter prior to obtaining any cost recovery for
security related measures.
(d) Upon
approval and Order of the Commission , a utility shall be allowed to recover a
return based on its weighted cost of long-term debt and equity on all capital
expenditures made for security measures. The utility shall also be allowed to
recover related depreciation expense and ad valorem taxes. Such recoveries
shall be based upon similar ratemaking treatment for corresponding cost
elements from the utility's most recent general rate case.
(e) Upon approval and Order of the
Commission , a utility shall be allowed to recover expenses typically classified
as operations and maintenance expenses for ratemaking purposes. The utility may
request inclusion of any such similar costs incurred as long as these costs are
directly associated with the security measures taken.
(f) The total costs incurred under this
Subchapter shall be combined for recovery purposes, for consideration by the
Commission .
(g) All costs approved
by the Commission for recovery, shall be recovered from the utility's customers
through a "Security Cost Rider" based on the projected annual billing units for
the utility and shall be subject to annual true-up.
(h) Unless otherwise ordered by the
Commission , a utility shall immediately discontinue recovery of the "Security
Cost Rider" when the earlier of the following occurs: natural expiration due to
the full recovery provided for in a Rider granted under this Subchapter or
forced expiration required pursuant to OAC 165:35-33-9(i) and/or OAC
165:35-33-9(j). Under no circumstances, shall the utility be permitted to
double recover Homeland Security and Critical Infrastructure related costs.
(i) Unless otherwise ordered by
the Commission , any utility with a "Security Cost Rider" currently in effect,
that files for a general rate change, shall include in the rate case, all
security-related costs and those costs shall be accorded standard ratemaking
treatment. A utility shall discontinue its "Security Cost Rider" when the
change in rates becomes effective upon Final Order in the rate case.
(j) Unless otherwise ordered by the
Commission , all "Security Cost Riders" approved by the Commission , shall expire
five years from the initial date of the "Security Cost Rider's" implementation.
(k) Upon the filing of a cost
recovery request by a utility , Commission Staff, the state Attorney General's
office (based upon that entity's statutory authority) and all other Authorized
Participants shall review the cost recovery proposal submitted by the utility
and file testimony in accordance with:
(1)
Any applicable protective orders issued by the Commission in the
security-related cost recovery cause;
(2) OAC
165:35-33-11(below);
(4) Any other
protective measures or requirements prescribed by law or the Commission .
(l) Testimony of
Commission Staff, the state Attorney General and all other Authorized
Participants, shall detail each of the parties' respective recommendations and
any objections to the utility's Plan and the utility's request for cost
recovery related to the Plan. Also in accordance with the Commission 's Rules of
Practice, Commission Staff, the state Attorney General and all other Authorized
Participants shall provide copies of their respective individual testimonies to
one another, with redacted versions of each individual testimony filed with the
Commission 's Court Clerk.
(m) Upon
notice and hearing, the Commission shall issue an Order regarding any requests
for security-related cost recovery.
Notes
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