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 12 of28
functionalization purposes.
Exhibit No. SCE-8
The fonner are functionalized by the W&S allocator and the
2 latter are functionalized by the net plant allocator (lines 46 through 48).
3 Materials and supplies at line 53 consist of transmission-related balances at line 52, plus
4 undistributed stores expenses functionalized to transmission by the W&S allocator at
5 lines 49 through 51.
6 Cash working capital is listed at lines 54 through 56 as one-eighth (12.5 percent) of total
7 transmission O&M expense, which is listed at line 84.
8 Line 57 contains the rate base adjustment identified as "Unrecovered Deferred GridSouth
9 Costs", which is the unamortized balance of GridSouth costs. This entry will be
10 discussed in more detail later in my testimony.
II
Network Credits (line 60) is a reduction to rate base equal to the net plant value of certain
12 transmission facilities that may be built by SCE&G with funds advanced by customers to
13 which credits will apply in the future. If applicable, this is calculated on Attachment 5.
14 Note M explains that outstanding Network Credits "is the balance of Network Facilities
15 Upgrades Credits due to Transmission Customers who have made lump sum payments
16 (net of accumulated depreciation) towards the construction of Network Transmission
17 Facilities consistent with Paragraph 657 of Order 2003-A."
18 Finally, Rate Base is calculated at line 62 as the sum of Net Plant (line 38) and Total
19 Adjustment to Rate Base (line 61).
20 (d) Operations and Maintenance Expense