023-3 Wyo. Code R. §§ 3-26 - Pass-On Applications and Commodity Balancing Accounts (CBA) for Rate-Regulated Utilities

(a) Utilities may file an application to pass on known or projected commodity or commodity-related cost increases or decreases per tariff.

(i) Pass-on applications may be approved, subject to public notice, opportunity for hearing and refund, if the evidence shows recovery of the costs is in the public interest and the pass-on includes only prudent commodity or commodity-related cost increases or decreases not under the Commission's jurisdiction.

(ii) Pass-on applications shall:

(A) Be filed at least annually and shall at least annually include documentation comparing the utility's actual and normalized annual earnings to those last authorized by the Commission. The appropriate form and level of detail of the required supporting documentation shall be determined by the Commission on a case-by-case basis in consideration of the utility's size, complexity, nature of operations, corporate structure and other relevant factors;

(B) Provide documentation demonstrating that costs included in the application are the most reasonable option available to the utility for safe, adequate and reliable service. Utilities may file integrated resource plans or commodity acquisition plans for Commission review. After Commission acknowledgement, these plans may satisfy this requirement for pass-on applications; and

(C) Include all information necessary to support the requested rates.

(iii) Pass-on increases or decreases shall be allocated to all retail rate classes and contract customers on an equal or proportionate basis. The Commission may consider special proportionate class allocation if requested.

(iv) Pass-on rates may be consolidated with base rates in general rate case proceedings or as otherwise ordered by the Commission.

(b) A utility may file an application to establish a CBA tariff mechanism to account for the difference between commodity or commodity-related revenues collected, based on projected wholesale costs, and the actual, prudent commodity or commodity-related expenditures the utility incurred. The utility may apply to the Commission for approval to include other costs and revenues in the CBA. Records related to the CBA shall be available for audit by the Commission at any time.

(i) Interest shall be paid on over-collected balances. Interest may be collected on under-collected balances upon a showing that it is in the public interest. Interest shall be computed at the Commission Authorized Interest Rate.

(ii) The CBA tariff shall describe in detail how the utility accounts for the components of the CBA, including:

(A) The frequency of rate adjustments to reflect cost changes;

(B) The planned method, supporting basis and time period for projecting commodity or commodity-related costs;

(C) The procedure and recordkeeping measures for tracking the difference between commodity-related revenues and expenditures;

(D) The time period for amortizing the balance of any over- or under-collection;

(E) The procedure for calculating increases or decreases in commodity or commodity-related purchases, using a measurement unit consistent with the utility's billing practices and tariff provisions;

(F) The procedure for calculating and paying interest on over-collected balances and, if authorized, the procedure for calculating and collecting interest on under-collected balances; and

(G) The procedure and recordkeeping measures for tracking other expenditures authorized by the Commission to be included in the CBA.

(c) Utilities may apply for out-of-period adjustments.

Notes

023-3 Wyo. Code R. §§ 3-26

Adopted, Eff. 3/21/2016. Amended, Eff. 4/8/2019. Amended, Eff. 8/24/2020. Amended, Eff. 1/26/2021. Amended, Eff. 1/3/2022. Amended, Eff. 9/15/2022. Amended, Eff. 3/8/2023.