38.5.506    CRITERIA FOR APPROVAL OF REQUEST

(1) Consideration of an application to increase rates on an interim basis in a general rate increase proceeding will be guided by generally established principles of utility rate regulation.

(2) The Commission shall calculate all interim rate increase requests in a general rate increase proceeding in the following manner:

(a) Test year booked net utility operating income and test year average rate base will be normalized and annualized, when such test year data is available.

(b) Any adjustments that were made in the most recent Commission general rate order of the utility will also be made using the methodology and rate of return on equity from that order, and applied to the filed test year amounts. These adjustments may be modified and other adjustments made as deemed appropriate by the Commission.

(3) Consideration of an application to increase rates on an interim basis in a tracking case will be guided by:

(a) A showing that the expense item concerned is a clearly identifiable cost to the utility;

(b) A clear showing that the proposed rate increase precisely matches the known increased expenses;

(c) A clear showing that deferred rate relief would result in irreparable financial harm to the petitioning utility; and

(d) Supporting material as enumerated in ARM 38.5.505(3) .

(4) All interim rate increase requests must be accompanied by a revenue increase figure calculated in accordance with ARM 38.5.506(2) .

History: Sec. 69-3-103, MCA; IMP, Sec. 69-3-304, MCA; NEW, 1979 MAR p. 324, Eff. 3/30/79; AMD, 1982 MAR p. 857, Eff. 4/30/82.