SCEG OATT Formula Transmission Rate Filing.pdf - SCANA ...

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Alan C. Heintz
Docket ER 10- -000
Page 11 of28
This component of the fonnula includes several calculations.
Exhibit No. SCE-8
If specifically authorized
2 by FERC, CWIP (sourced from Attachment 6) is included on lines 39 through 40.
3 Accumulated Deferred Income Taxes net of FASB 106 and 109 ("ADIT") shown on line
4 41 is incorporated from Attachment 1 (a negative value). Attachment 1 provides a
5 detailed development of the ADIT total, including functionalization of ADIT components
6 by direct assignment or by a plant or labor allocator, as appropriate. Deferred income
7 taxes arise when items are included in taxable income in different periods than they are
8 included in rates. As a result, with respect to items giving rise to ADIT that are not
9 included in the fonnula, the associated ADIT amounts are excluded as required by the
10 Commission in Northwest Pipeline Corp., 87 FERC ~ 61,266 (1999). I note that the
11 functionalization of ADlT to transmission on Attachment 1 is a familiar process,
12 employing the same methodology used by many companies that prepare Statements AA-
13 BM as required by the FERC's regulations for filings supporting increases in rates. It is
14 also the same process used by many companies to support changes in retail rates.
15 SCE&G elected to amortize tax credits against taxable income (lines 132 through 135),
16 so there is no rate base deduction for Account No. 255 in the ADIT balance carried
17 forward from Attachment 1.
18 Plant Held for Future Use (transmission-related) (if any) is included at line 43, as
19 specified on Attachment 5.
20 Transmission-related prepayments are detailed on Attachment 5 and included on lines 44
21 through 45. Prepayments are identified as either labor or plant related for