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

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Alan C. Heintz
Docket ERlO-_-OOO
Page 21 of28
Exhibit No. SCE-8
165, a net plant FCR is calculated by dividing line 163 by net transmission plant (line
2
3
4
164). A second calculation at line 166 modifies the FCR to exclude transmission
depreciation (the "FCR-incentive") for application in the event a customer makes a lumpsum
payment like a CIAC.
5
6
Attachment 7 identifies the FCR-incentive
Investment Incentive without Depreciation".
as "Net Plant Carrying Charge with New
The new investment incentive is used as the
7
basis for calculating an incentive annual revenue requirement for each incentive project.
8
Each project's
incentive revenue requirement may reflect a different FERC-approved
9
level of ROE incentive than the new investment incentive developed at line 159 of the
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formula as shown on Attachment 7.
While Attachment 4 calculates a 100 basis point
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12
13
adder for new investment, Attachment 7 is designed such that the actual new investment
incentive is a separate input for each project, allowing (1) different adders to be approved
by the Commission for discrete projects, or (2) no adder if none is sought or approved.
14 Q-
PLEASE EXPLAIN ATTACHMENT 5 - COST SUPPORT.
15 A.
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18
19
20
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Notes A through Q of Appendix A provide additional detail or instructions concerning
formula input data. This data often cannot be taken directly from FERC Form 1 without
modification, which requires additional details to reconcile formula inputs to the reported
data. Attachment 5 performs the same role in calculating the formula as is performed by
Statements AA-BL in supporting the calculations on a Statement BK in a traditional rate
filing. Since FERC Form I is publicly available electronically and the majority of inputs
are from FERC Form I, the data required in Statements AA-BL beyond that found in
FERC Form I is limited. The complete, populated formula, from Attachment H,