Section 287.10  Applicability

 

This Part shall apply to all public utilities as defined in Section 3-105 of the Public Utilities Act (Act) [220 ILCS 5/3-105] and to those telecommunications carriers as defined in Sec­tion 13-202 of the Act [220 ILCS 5/13-202] that are subject to the requirements of Section 9-201 of the Act [220 ILCS 5/9-201] and 83 Ill. Adm. Code 285. As used in this Part, "util­ity" shall include both public utilities and those telecommunications carriers to which this Part is applicable.

 

Section 287.20  Test Year Options

 

A utility, at its option, may propose either one of the following periods as its proposed test year:

 

a)         Historical. Any consecutive 12 month period, beginning no more than 24 months prior to the date of the utility's filing, for which actual data are avail­able at the time of filing new tariffs; or

 

b)         Future. Any consecutive 12 month period of forecasted data beginning no earlier than the date new tariffs are filed and ending no later than 24 months after the date new tariffs are filed.

 

Section 287.30  Updates to Future Test Year Data

 

a)         During the suspension period, the assigned Administrative Law Judge may require or allow the utility to update its schedules and workpapers, if a utility has proposed a future test year, according to the schedule established in the proceeding when evidence has been introduced that a significant and mate­rial change affecting the revenue requirement as defined in subsection (c) of this Section has occurred. In establishing this schedule, the Administrative Law Judge shall consider the timing and scope of the updated filing. A utility shall not be allowed or required to submit more than one updated filing, or to submit an updated filing during the final 150 days of the resuspension period. When data are updated, the utility shall also provide updated infor­mation for any affected schedules and work papers originally submitted as a requirement of 83 Ill. Adm. Code 285.

 

b)         A determination to require or allow the submission of an update shall include, but not be limited to, the consideration of:

 

1)         Whether the changes significantly and materially affect the revenue requirement;

 

2)         Whether the changes could have been reflected in the initial tariff filing; and

 

3)         Whether the Illinois Commerce Commission staff and other partici­pants will have an adequate opportunity to review the updated infor­mation.

 

c)         Examples of "significant and material" changes would include changes since the original filing of tariffs to factors including, but not limited to:

 

1)         Contractual obligations;

 

2)         Revenue requirements;

 

3)         Additions or losses of customers served; and

 

4)         Governmental requirements or levies, such as tax rates or environ­mental requirements.

 

d)         Whenever the utility updates projected data in its selected test year, it shall provide a reconciliation of original and updated data and identify and support the changes in its testimony and exhibits.

 

e)         Nothing in this Section shall be construed as a limitation on updates to the rate of return on rate base during the rebuttal phase of the rate proceeding.

 

Section 287.40  Pro Forma Adjustments to Historical Test Year Data

 

A utility may propose pro forma adjustments (estimated or calculated adjustments made in the same context and format in which the affected information was provided) to the selected historical test year for all known and measurable changes in the operating results of the test year. These adjustments shall reflect changes affecting the ratepayers in plant investment, operating revenues, expenses, and cost of capital where such changes occurred during the selected historical test year or are reasonably certain to occur sub­sequent to the historical test year within 12 months after the filing date of the tariffs and where the amounts of the changes are determinable. Attrition or inflation factors shall not be substituted for a specific study of individual capital, revenue, and expense components. Any proposed known and measurable adjustment to the test year shall be individually identified and sup­ported in the direct testimony of the utility. Each adjustment shall be submitted according to the standard information requirement schedules prescribed in 83 Ill. Adm. Code 285.