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 23 of28
Exhibit No. SCE-8
2009 actual costs and investment. Differences. if any, between the ATRR estimate
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initially calculated and that ATRR based on actual cost will be handled as a true-up
adjustment (pro-rated for the number of days the rate was in effect for the initial period).
4 Q.
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PLEASE EXPLAIN THE ESTIMATE AND TRUE-UP MECHANICS OF THE
FORMULA_
6 A.
The true-up mechanics are set out as protocols in Attachment H, Appendix B.
The
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calculation of the true-up with interest is accomplished on Attachment 6 -- Estimate and
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True-up Worksheet.
Each May beginning in 2010, SCE&G will complete the formula
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using the data contained in the prior calendar year's FERC Form I and will prepare the
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cost support schedules contained in the formula.
The estimated ATRR in effect prior to
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June 1, 2010 will first be adjusted by multiplying it by the ratio of the current year 12 CP
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divided by the prior year 12 CPo
This adjustment compensates for any growth (or
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decrease) in billing determinants that occurred during the Rate Year.
(See Step 9 on
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IS
Attachment 6.) The adjusted prior year ATRR is then subtracted from the ATRR
calculation using actual costs for 2009, and the difference (with interest) will be added to
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(subtracted from) the estimated ATRR that will be effective on June 1, 2010.
process will be repeated each year subsequent to 2010.
This
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The formula templates, exhibits and cost support will be posted on SCE&G's website.
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Consistent with the Commission's
recent Duquesne order, SCE&G will also make an
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informational filing at FERC.
Thus, the Commission and SCE&G's customers have an
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opportunity to review the formula calculations and supporting data before the changes
take effect, and to challenge the rate recalculations.