ML20003F001
| ML20003F001 | |
| Person / Time | |
|---|---|
| Site: | Comanche Peak  |
| Issue date: | 10/03/1980 |
| From: | Cowden G, Morris G, Rollins H TEXAS, STATE OF |
| To: | TEXAS ELECTRIC SERVICE CO. |
| Shared Package | |
| ML19240B984 | List:
|
| References | |
| 3250, NUDOCS 8104170650 | |
| Download: ML20003F001 (7) | |
Text
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00CXET NO. 3250 O
A7PL! CATION CF TEXAS ELECTRIC P';ELIC t;T LI Y CC'->!ss:03 SERY!CE CC"PaNY FCR A RATE INCREASE CF TEXA5 CRCER In public meeting at its Offices in Austin, Texas, tee Public 'Jtility Ccemission of Texas finds that, after statut:rily required notice was provided to the public and to interested parties, the above-styled and -decketed matter was heard by a Cocrnission Hearings Exminer who prepared and filed a Report c:ntaining Findings of Fact and Cenclusions of Law, whien Report, nith the following changes, is ad::ted and made a part of this Orc'er:
1.
The Titus County water rignts included by the Examinee in TESCO's rate base shall be excluded from rate base as rec:c= ended by the Comission Staff.
2.
The Examiner's recocinendations on the Insurance and Casualty Reserve are rejected and this item shall be given the rate base and cost of service treat:,ent precosed by the ccernission Staff. TPa Ccenissica expressly finds that this a:: unting enly treatment Of auen insurance -
and casualty reserves is a:pr:griate at this time for this particular utility.
3.
TE!CO's preposed electric sga:e Pesti ig rider for residential custome s (Rider ESH) and the lic:itatien en asp 11 cation included therein are accreved and shall be included in TESCO's revised tariff.
The recocntadation of the Examiner on this tariff rider is rejected.
4 TESC3's precosed tariff service rules and regulations en distributien line extensions are approved and the reccer:endatiens of the Examiner on such line extensions are rejected in their entirety.
5.
TESCO's proposed charges for field collection of delincuent ac::unts and meter reading are approved and the Exaniner's rec:cs endations en such fees are rejected.
6.
TESCO's autt.crized return on equity shall be establisned at a level of
- 15. !C':. This return on equity sna11 be substituted for the Exniner's 15.225% rec:c= ended return :n equity in the calculaticn of a return :n TEIC3's adjusted value of invested capital and return on TEIC3's invested capital.
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Docket 30. 3253 Page 2 of 020!2 7.
The Examiner's recorcendation on construction work in progress (CWIP) is approved and this level of CWIP sna11 be incluced in TESCO's rate base.
8.
The allowable fuel oil inventory to be included in TESCO's rate base shall be set at a level of 1.50 million barrels and the Exet.ner's recc: mended 1.00 million barrel inventory level is rejected.
9.
Finding of Fact Number 3 is am,enced as follows; TESCO has invested capital of $1,373,310.322, the components of wnich are:
s Plant in Service
$1,483,200,353 Accumulated Depreciation (382,214.394)
Net Plant
$1.100,955,464 CWIP 259,039.930 4
Plant Held for Future Use 3,694,185 I
Nuclear Fuel in Process 25,531,796 Working Capital 57,195.758 Customer Deposits (3,920.772)
Accumulated Deferred FIT (69,758,408)
Reserve for Insurance and Casualty (1,302,321)
Otner f7,175,350)
TOTAL INVESTE0 CAPITAL
$1,373.910.32?
10.
Finding of Fact Numter 13 is amended as follows:
TESCO re;uires a rate base working capital allowance of $57,195,753, the components of which are:
Materials and Supplies
$ 9.577.417 Mercha@ise (292.514)
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Net Materials and Supplies
$ 9,234,303 i
Fuel Stock 25,034,596 l
Precapents 4,688,502 Working Funds 4,241,093 Cash Working Capital 12,946,659 TOTAL WORKING CAPITAL
$57,195,758 11.
The last sentence of Finding of Fact Numeer 14 is ameaded as follows:
I Using this mil, TE5CO's adfusted value of invested cacital is
$1,583,081,070, the comoonents of which are:
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Oceket No. 3250 Page 3 cf OROER Net Plant - Original Cost 11,100,955,262 Percentage Mix 53.375%
$ 703,235,303
' Net Plant - Current Cost 31,957,C63,251 Percentage Mix 13.125%
7C6,99C,9C1 CWIP 259,039,950 Plant Held fer Future Use 3,694,135 Nuclear Fuel in Process 25.531,796 Working Casital 57,195,753 Customer Oeposits (3,920,772)
AccJaulated Deferred FIT (69,753,aC3)
Reserve for Insurance and Casualties (1,302,321)
Other f7,175.?!01 A3JUST!3 VALUE CF INVESTE3 CAPITAL
$1,623.091,070 12.
The capital structure tacle in Finding of Fact Numter 15 is amended as follows:
Comoenent Weighted Cost item A, mount
% of Total Cost Of Cacital Long Term Debt
$ 690,195,916 41.79%
8.324%
3.179%
Netes Payaole 859,097
.05 6.139%
0.003 Preferred Stock 209,623,359 12.69 8.11C%
1.029 Cemsca Ecuity 653,793,504 39.53 15.!CC:
6.135 Acc.0ef.Inv. Tax Credit 97,352.227 5.39 11.312%
.!!5 TOTAL
$1,551,929.703 100.C0%
11.3125 13.
Finding of Fact Nu=cer 16 is amended as fo11cus:
A return cf 9.233% on T!!CO's adjusted value of invested casital, er
$155,4C5,42: is reasonable and should be adcoted because it provides a return sufficient to maintain Ti3C3's financial inte;rity and provides a reasonable return on steckholders' and bendhelders' investrents withcut being unduly burdensome on consumers.
14 Finding cf Fact Number 17 is amandad as fo11ews:
A return of 11.312% on TESCO's in' rested casital is ressenable and should be adopted for the reasons set forth in Finding of Fact Murter 16.
15.
Finding of Fact Numter la is amended as follows:
TESCO has an adjusted cost of service of $755,097,330, the cce;enents of which are set ferth belcw. Given this cost of service and TEIC3's
$270,708.509 fuel and other revenues, TESCO has a base rate revenue recuirement cf $454,339,200.
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Docket *:o. 3250 Page 4 cf CR:ER Fuel
$ 256.321.953 Ccerations and daintenance 145,029,131 Decreciat;cn 50.935,049 Taxes Otner Than :nexe 49,415,*21 Federal Ine: e Taxes 25,545,951 Interest en Cast zer Ce:osits.
232,325
- Return 155.4C5,224 Total C:st of Se*vice 1 755,097.323 Fuel and Other Revenue (270.7Ca.609)-
Base Rate Revenues 3 434,239,2:3 Test Period Sa:e Rate Revenues (414 ?99,505)
EASE RATE REVE':::E OEFI !EMOY
$ 69,3!9.715 16.
The first seatence of Finding of Fact Meter 19 is e ended as follows:
The c st of se vice adjust =ents re: mended by the Examiner, except as expressly accified herein, and utilized it sariving Finding cf Fact Nr:er 17 are reascnacle and shculd be adcoted fcr the reascns set forth -
in this Re: Ort. The f.hanges in the Exasiner's ree:cr:endations expressly ordered herein are reascnable and are su scrted by a pre enderance of the credible evidence in this record.
17.
Finding of Fact Meter 20 is amended as fo11cws:
Given TE!*3's adjusted c st of service and revenues set f:rth in Finding cf Fact 'tecer 18.TE!CO has a base rate revenue deficiency cf
$59.339,715. This revenue deficiency is $53,514.626 less than TESCO's pr: osed rate increase as set forth in its statut:ry statement cf intent and is !!!,331,707 less than TESCO's preposed rate increase as that increase was calculated by the Staff.
13.
The first s'entence of Fincing of Fact Nu:.ter 21 is cended as fo11cws:
i The c:st allecatiens and rate structures pr:;csed by TE503, if pec erly rended.to confers to the c st allocati:n and rate design reexanendatiens and guidelines stated by the Examiner in 5 IV cf this Repor*., as =odified in this Crder, will be based on scund ratemaking principles and shculd be accoted.
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19.
The first sentence cf Finding of Fact 1ecer 22 is rended as folicws:
feea.eents to TESCO's preposed service rules and re;ulations which c nfer i with the recnendaticns and guidelines stated by the Ixamirer l
in s :v of tais Re: ort, as m dified in this Orce, will result in condiscri= inst:ry and nerereferential se-vice ts all TE::3 c;st zers.
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Occket ?io. 3250 Page 5 of CRCER i
20.
Ccnclusion of Law Number 3 is amenced as follows:
PURA 5 27(b) charges the Cc=itssion with fixing pMaer and acequate rates and methods of depreciation, amortizatien, or depletion of the-several classes of property of each public utility.
Under this provision of the Act, TESCO's pre:osed decreciation, amertiration, and depletion rates, except where the see differs frxi, the Exaailner's recommencations or where modified by this Order, are preper and must be
. adopted.
21.
The second sentence of Conclusion of Law Number 4 is amended as follows:
To the extent approved by the terms of this Order, TESCO has met this burden of proof.
22.
Conclusion of Law Number 6 is amended as folicws:
The Examiner's reconnendations herein, as modified by this Order, will allow TESCO to recover its reasonable and precer operating expenses -
together with a ressenable return on its invested capital pursuant to PURA, 5 39, but will not yelid more than a f air return on TESCO's adjusted value of invested capital as required by PURA, t 40(a).
23.
Cenclusion of Law Number 7. is amended as fo11cws:
Ratet designed according to the guidelines rec:::vnended by the Examiner, as modified herein, if preserly implemented, are reasonable and nendiscriminat:ry and should be ac: roved by the Cormiission fer complying with the ratemaking criteria of Article VI cf the Act.
I 24 The fourth sentence of Conclusion cf Law 'lumoer 9 is amended as follows:
Acc:rdingly, the reccernended changes to TESCO's service rules and regulations found in 5 V of this Recert, except as excressly rejected in this Order, are preper for the reasons cited therein.
f The cer=itssion further issues the following Order:
1.
The petition of Texas Electric Service Ceccany (TESCO) is hereoy granted in part and denied in part, as set out in the Examiner's Report.
I 2.
TESCO is hereby ordered to rerun its cost of service study, ss modified to reflect the C:st of service and cost allocation changes rec: mended by the Examiner, and using the revenue adjust ents a:pr:ved herein.
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i Doctet no! 2250 Page 6 of CROER TESCO shall within 20 days frem the date hereof sutmit the results of this study to the Ccemission for its review, showing how revenues wl.1 be allocated eeng rate classes: The cost of service study, wnen rerun, snall incerscrate all changes in rates, schedules, and service rules ordered herein. A ccpy of the study shall be served upon each of the parties hereto at the time it is filed with the Cornmission.
3.
TESCO shall file five c: pies of its tariff, revised in accordance with the Examiner's Report and the terms of this Order, and sufficient to generate revenues no greater thaa those prescribed in that Report and this Order, with the Commission Secretary and cne copy with each of the Intervenors within 20 days of the date hereof. The Cocnission Staff shall have 20 days frem the date of the filing to review and to aopreve or reject the tariff. All parties to this docket shall have 10 days fr::m the date of that filing to. file their objections, if any, to the revised tariff. The tariff shall be deced approved and sna11 beccee effective u;cn the expiration of 20 days after filing, or scener upon notification of aoproval by the Comission Secretary. In the event of rejection, TESCO shall have 15 additional days to file an amended tariff, with the same review precedures to again apply.
4 The revised and a: proved rates shall be charged only for service rendered in areas over which this Connission is exercising its original and ap;ellate jurisdiction as of the adjeurtz:Ent of the heafing on the zerits herein, and said rates may be charged only fer service rende-ed -
af ter the tariff approval date.
5.
This Order is deced to be. final upon the date of rendition. Approval cf the revised tariff in compliance with this Order shall be deced to be final on the date of its effectiveness either by operation of this Order or by, notification from the Comiission Secretary, whichever shall first occur.
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TEICO is expressly ordered to moniter the Connissien's holding in Occkets No. 3198 and and 3234 and to file modifications to its tariff, if necessary, as rec z ended by the Examiner.
7.
The Comission expressly finds that there is insufficient evidence in this record to make findings under the Public Utility Re2ulatory Policy Act of 1973 as it applies to TESCO. For this reason, the Cc= mission finds that no party herein f s entitled to retraurscent of its rate casa exOenses under that Act.
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s Do:xst.10, 3233' Pa;e 7 cf CRDER 8.
All otions eequests, a:clicaticns and pr:::csed Findings of Fact er Conclusions of L,aw not expressly granted herein are denied for want'Of me-it and for being unsu;scrted by the precendeatoce of the credible eviderce in the record of this docket. The Cenission egressly fleds that each and every one of the ten preposed Findings of Fact fcund in the Brief cf ACORN at 13-19 are unsuc;crted by the presenterance of the credible evidence in the recced of this dectet. For this reason, eac1 and every are of ACORN's 10 pre osed Findings of Fact is denied.
RENDERE3ATAUSTIN, TEXAS,onthisthe3<-
day of ba4.3(er, 1920.
PUBLIC UTILITY CO.? !$3 ION CF TEXA5
$!GNE3:
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SIGNE3:
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