16 Tex. Admin. Code § 24.315 - Determination of Cost of Service
(a)
The commission shall follow the mandates of the TWC, Chapters 12 and 13, to
calculate the annual cost of service. The commission shall rely on any
reasonable methodologies set by contract which identify costs of providing
service and/or allocate such costs in calculating the cost of
service.
(b) When the protested
rate was calculated using the cash basis or the utility basis, and the rate
which the protested rate supersedes was not based on the same methodology, the
commission may calculate cost of service using the superseded methodology
unless the seller establishes a reasonable basis for the change in
methodologies. Where the protested rate is based in part upon a change in
methodologies the seller must show during the evidentiary hearing the
calculation of revenue requirements using both the methodology upon which the
protested rate is based, and the superseded methodology. When computing revenue
requirements using a new methodology, the commission may allow adjustments for
past payments.
Notes
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