807 KAR 5:011. Tariffs.

RELATES TO: KRS 278.010, 278.030, 278.160, 278.170, 278.180, 278.185, 278.190, 369.102(8)

STATUTORY AUTHORITY: KRS 278.160(1)

NECESSITY, FUNCTION, AND CONFORMITY: KRS 278.160(1) requires the commission to promulgate an administrative regulation to establish requirements for each utility to file schedules showing all rates and conditions established by it and collected or enforced. This administrative regulation establishes requirements for utility tariffs.

Section 1. Definitions. (1) "Commission" is defined by KRS 278.010(15).

(2) "Date of issue" means the date the tariff sheet is signed by the representative of the utility authorized to issue tariffs.

(3) "Nonrecurring charge" means a charge or fee assessed to customers to recover the specific cost of an activity, which:

(a) Is due to a specific request for a certain type of service activity for which, once the activity is completed, additional charges are not incurred; and

(b) Is limited to only recover the specific cost of the specific service.

(4) "Person" is defined by KRS 278.010(2).

(5) "Rate" is defined by KRS 278.010(12).

(6) "Sewage utility" means a utility that meets the requirements of KRS 278.010(3)(f).

(7) "Signature" means an original signature or an "electronic signature" as defined by KRS 369.102(8).

(8) "Statutory notice" means notice made in accordance with KRS 278.180.

(9) "Tariff" means a utility’s schedule of each of its rates, charges, tolls, maps, terms, and conditions of service over which the commission has jurisdiction.

(10) "Utility" is defined by KRS 278.010(3).

(11) "Utility’s office or place of business" means a location at which the utility regularly employs and stations one (1) or more employees and is open to the public for customer service.

Section 2. General. (1) Beginning January 1, 2013, each tariff sheet and supporting document filed with the commission shall be electronically submitted to the commission using the commission’s electronic Tariff Filing System located at https://psc.ky.gov/psc_portal/.

(2) Each utility shall maintain a complete tariff with the commission.

(3) A utility furnishing more than one (1) type of service (water and electricity for example) shall file a separate tariff for each type of service.

(4) A utility shall make available a paper or electronic copy of the utility’s current tariff for public inspection in the utility’s office or place of business.

(5) A utility that operates a public Web site for its utility operations shall:

(a) Make available on that Web site for public viewing and downloading a copy of the utility’s current tariff for each type of service that it provides; or

(b) Place on its Web site a hyperlink to the commission’s Web site where the tariff has been posted.

Section 3. Format. (1) A new tariff or revised sheet of an existing tariff filed with the commission shall be:

(a) Printed or typewritten;

(b) Eight and one-half (8 1/2) by eleven (11) inches in size; and

(c) In type no smaller than nine (9) point font, except headers and footers, which shall be in type no smaller than eight (8) point font.

(2) Tariff Form-1. The first sheet of a tariff shall be on Tariff Form-1 or reasonable facsimile, shall be used as the tariff’s cover page, and shall contain:

(a) The utility’s name, mailing address, street address of the utility’s principal office if different from the mailing address, and Web site if applicable;

(b) In the upper right-hand corner, the commission tariff number and, if applicable, the cancelled commission tariff number; (Example: PSC Tariff No. 2, Cancelling PSC Tariff No. 1);

(d) A statement of the area served;

(e) The date of issue and date on which the tariff is to become effective;

(f) The signature of the representative of the utility authorized to issue tariffs; and

(g) The signatory’s title or position.

(3) Tariff Form-2. With the exception of the first sheet of the tariff which shall be on Tariff Form-1, all other tariff sheets shall be on Tariff Form-2 or reasonable facsimile and shall contain:

(a) The utility’s name and territory served;

(b) In the upper right-hand corner, the commission tariff number and, if applicable, the cancelled commission tariff number; (Example: PSC Tariff No. 2, Cancelling PSC Tariff No. 1);

(c) In the upper right-hand corner, the tariff sheet number and, if applicable, the cancelled tariff sheet number; (Example: First Revised Sheet No. 1, Cancelling Original Sheet No. 1);

(d) The date of issue and date on which the tariff is to become effective;

(e) The signature of the utility representative authorized to issue tariffs;

(f) The signatory’s title or position; and

(g) If applicable, a statement that the tariff is "Issued by authority of an Order of the Public Service Commission in Case No. _______ Dated_________, 20____".

(4) Each tariff sheet shall contain a blank space at its bottom right corner that measures at least three and one-half (3.5) inches from the right of the tariff sheet by two and one-half (2.5) inches from the bottom of the tariff sheet to allow space for the commission to affix the commission’s stamp.

Section 4. Contents of Schedules. (1) In addition to a clear statement of all rates, each rate schedule shall state the city, town, village, or district in which rates are applicable.

(a) If a schedule is applicable in a large number of communities, the schedule shall be accompanied by an accurate index so that each community in which the rates are applicable may be readily ascertained.

(b) If a utility indicates the applicability of a schedule by reference to the index sheet, the utility shall use language indicating "Applicable within the corporate limits of the City of ________," or "see Tariff Sheet No. ____ for applicability."

(2) The following information shall be shown in each rate schedule under the following captions in the order listed:

(a) Applicable: show the territory covered;

(b) Availability of service: show the classes of customers affected, including residential, commercial, and other groups of customers;

(d) Minimum charge: state the amount of the charge, the quantity allowed (if volumetrically based), and if it is subject to a late payment charge;

(e) Late payment charge: state the amount or reference the tariff section containing the amount;

(f) Term: if contracts are made for certain periods, give the length of the term; and

(g) Special rules: list special rules or requirements, if applicable, that are in effect covering this tariff.

(3) Each rate schedule shall state the type or class of service available pursuant to the stated rates, by using language similar to "available for residential lighting" or "available for all purposes."

(4) For a tariff in which a number of rate schedules are shown available for various uses, each rate schedule shall be identified either by:

(a) A number in the format "Schedule No. ___"; or

(b) A group of letters, with the designation indicative of the type or class of service for which the rate schedule is available. The format for use of a group of letters shall be in the format "Tariff R.S." indicating that the rate schedule states residential service rates.

(5) A tariff may be further divided into sections.

Section 5. Filing Requirements. (1) Each tariff filing shall include a cover letter and conform to the requirements established in this subsection.

(a) Each document shall be submitted in portable document format ("PDF") and be capable of viewing with Adobe Acrobat Reader.

(b) Each document shall be search-capable and optimized for viewing over the internet.

(d) A document may be bookmarked to distinguish different sections of the filing.

(2) A document shall be considered filed with the commission if it has:

(a) Been successfully transmitted using the commission’s electronic tariff filing system; and

(b) Met all other requirements specified in this administrative regulation.

Section 6. Tariff Addition, Revision, or Withdrawal. (1) A tariff, tariff sheet, or tariff provision shall not be changed, cancelled, or withdrawn except as provided by this section and Section 9 of this administrative regulation.

(2) A new tariff or revised sheet of an existing tariff shall be issued and placed into effect:

(a) By order of the commission; or

(b) By issuing and filing with the commission a new tariff or revised sheet of an existing tariff and providing notice to the public in accordance with Section 8 of this administrative regulation and statutory notice to the commission.

(3) Each revised tariff sheet shall contain one (1) of the following symbols in the margin indicating the change made:

(a) "(D)" to signify deletion;

(b) "(I)" to signify increase;

(d) "(R)" to signify reduction; or

(e) "(T)" to signify a change in text.

Section 7. Tariff Filings Pursuant to Orders. If the commission has ordered a change in the rates or rules of a utility, the utility shall file a new tariff or revised sheet of an existing tariff establishing:

(1) The revised rate, classification, charge, or rule;

(2) The applicable case number;

(3) The date of the commission order; and

(4) The margin symbols required by Section 6(3) of this administrative regulation.

Section 8. Notices. A utility shall give notice to the public as required by this section if a charge or fee is changed, revised, or initiated or a condition of service or a rule regarding the provision of service is changed, revised, or initiated and the change will affect the amount that a customer pays for service or the quality, delivery, or rendering of a customer’s service. (1) Public postings.

(a) A utility shall post at its place of business a copy of the required notice no later than the date the filing is made with the commission. The notice shall not be removed until the filing has become effective.

(b) A utility that maintains a public Web site shall, within two (2) business days of filing, post a copy of the public notice as well as a hyperlink to its filing on the commission’s Web site. The notice shall not be removed until the filing has become effective or the commission issues a final decision on the filing.

(2) Manner of notification.

(a) If the utility has twenty (20) or fewer customers or is a sewage utility, it shall mail written notice in accordance with subsection (3) of this section to each customer no later than the date on which the filing is submitted to the commission.

(b) If the utility has more than twenty (20) customers and is not a sewage utility, it shall:

1. Include notice with customer bills mailed by the date the filing is submitted;

2. Publish notice in a trade publication or newsletter going to all customers by the date the filing is submitted; or

3. Publish notice once a week for three (3) consecutive weeks in a prominent manner in a newspaper of general circulation in the utility’s service area, the first publication to be made by the date the filing is submitted.

(c) A utility that provides service in more than one (1) county and is not a sewage utility may use a combination of the notice methods listed in paragraph (b) of this subsection.

(3) Notice requirements. Each notice shall contain the following information:

(a) The present rates and proposed rates for each customer class to which the proposed rates will apply;

(b) The amount of the change requested in both dollar amounts and percentage change for each customer classification to which the proposed rate change will apply;

(c) The amount of the average usage and the effect upon the average bill for each customer class to which the proposed rate change will apply;

(d) A statement that the rates contained in this notice are the rates proposed by (name of utility) but that the Public Service Commission may order rates to be charged that differ from the proposed rates contained in this notice;

(e) A statement that a person may within thirty (30) days after the initial publication or mailing of notice of the proposed rate changes submit a written request to intervene to the Public Service Commission, 211 Sower Boulevard, P.O. Box 615, Frankfort, Kentucky 40602 that establishes the grounds for the request including the status and interest of the party;

(f) A statement that a person may examine this filing and any other documents the utility has filed with the Public Service Commission at the offices of (the name of the utility) located at (the utility’s address) and on the utility’s Web site at (the utility’s Web site address), if the utility maintains a public Web site;

(g) A statement that this filing and related documents are available on the Public Service Commission’s Web site at http://psc.ky.gov; and

(h) A statement that written comments regarding the proposed rate may be submitted to the Public Service Commission by mail or through the Public Service Commission’s Web site.

(4) Proof of notice. A utility shall file with the commission no later than forty-five (45) days from the date of the initial filing:

(a) If its notice is published in a newspaper of general circulation in the utility’s service area, an affidavit from the publisher verifying the notice was published, including the dates of the publication with an attached copy of the published notice;

(b) If the utility’s notice is published in a trade publication or newsletter going to all customers, an affidavit from an authorized representative of the utility verifying the trade publication or newsletter was mailed; or

(c) If the notice is mailed, an affidavit from an authorized representative of the utility verifying the notice was mailed.

(5) Compliance by electric utilities with rate schedule information required by 807 KAR 5:051. Notice given pursuant to subsection (2)(a) or (b) of this section shall substitute for the notice required by 807 KAR 5:051, Section 2, if the notice contained a clear and concise explanation of the proposed change in the rate schedule applicable to each customer.

(6) Periodic recalculation of a formulaic rate that does not involve a revision of the rate and that is performed in accordance with provisions of an effective rate schedule, special contract, or administrative regulation does not require notice in accordance with this section.

Section 9. Statutory Notice to the Commission. (1) A new tariff or revised sheet of an existing tariff shall become effective on the date stated on the tariff sheet if:

(a) Proper notice was given to the public in accordance with Section 8 of this administrative regulation and the commission; and

(b) The tariff is not suspended by an order of the commission pursuant to KRS 278.190.

(2) All information and notices required by this administrative regulation shall be furnished to the commission at the time of the filing of the proposed rate revision. If there is a substantial omission, which is prejudicial to full consideration by the commission or to an intervenor, the statutory notice to the commission shall not commence to run and shall not be computed until the omitted information and notice is filed.

Section 10. Nonrecurring Charges. Notwithstanding 807 KAR 5:001, a utility may revise a nonrecurring charge pursuant to this section and Sections 6 and 9 of this administrative regulation.

(1) Each requested rate revision shall be accompanied by:

(a) A specific cost justification for the proposed rates;

(b) A copy of the public notice of each requested rate revision and verification that it has been made pursuant to Section 8 of this administrative regulation;

(c) A detailed statement explaining why the proposed changes were not included in the most recent general rate case and why current conditions prevent deferring the proposed changes until the next general rate case;

(d) A statement identifying the group of potential or existing customers affected by the rate revision; and

(e) A copy of the utility's income statement and balance sheet for a recent twelve (12) month period or an affidavit from an authorized representative of the utility attesting that the utility’s income statement and balance sheet are on file with the commission.

(2) The proposed rate shall relate directly to the service performed or action taken and shall yield only enough revenue to pay the expenses incurred in rendering the service.

(3)(a) If the additional revenue to be generated from the proposed rate revision exceeds by five (5) percent the total revenues provided by all nonrecurring charges for a recent twelve (12) month period, the utility shall, in addition to the information established in subsection (1) of this section, file an absorption test.

(b) The absorption test shall show that the additional net income generated by the tariff filing shall not result in an increase in the rate of return (or other applicable valuation method) to a level greater than that allowed in the most recent general rate case.

(c) As part of the absorption test, a general rate increase received during the twelve (12) month period shall be annualized.

(4) Upon a utility’s submitting the filing to the commission, the utility shall transmit by electronic mail an electronic copy in PDF to rateintervention@ag.ky.gov or mail a paper copy to the Attorney General’s Office of Rate Intervention, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601-8204.

Section 11. Adoption Notice. (1) A utility shall file an adoption notice on Tariff Form-3 if:

(a) A change of ownership or control of a utility occurs;

(b) A utility or a part of its business is transferred from the operating control of one (1) company to that of another;

(d) A receiver or trustee assumes possession and operation of a utility.

(2) Unless otherwise authorized by the commission, the person operating the utility business going forward shall adopt, ratify, and make its own the former operating utility’s rates, classifications and requirements on file with the commission and effective at the time of the change of ownership or control.

(3) An adoption notice may be filed and made effective without previous notice.

(4) An adoption notice filed with the commission shall be in consecutive numerical order, beginning with Public Service Commission adoption notice No. 1.

(5) Within ten (10) days after the filing of an adoption notice by a utility that had no tariff on file with the commission, the utility shall issue and file in its own name the tariff of the predecessor utility then in effect and adopted by it, or a tariff it proposes to put into effect in lieu thereof, in the form established in Sections 2 through 4 of this administrative regulation with proper identifying designation.

(6) Within ten (10) days after the filing of an adoption notice by a utility that had other tariffs on file with the commission, the utility shall issue and file one (1) of the following:

(a) A complete reissue of its existing tariff that establishes the rates and requirements:

1. Of the predecessor utility then in effect and adopted by the successor utility; or

2. The utility proposes to place into effect for the customers served by the predecessor utility;

(b) New additional pages or revised current pages of its existing tariffs that establish the rates and requirements:

1. Of the predecessor utility then in effect and adopted by the successor utility; or

2. The utility proposes to place into effect for the customers served by the predecessor utility.

(7)(a) If a new tariff or revised sheet of an existing tariff states the rates and requirements of the predecessor utility without change, the tariff or revised sheet of an existing tariff may be filed without notice.

(b) If a new tariff or revised sheet of an existing tariff states a change in the effect of the rates or requirements of the predecessor utility, the new tariff or revised sheet of an existing tariff shall be subject to Sections 9 and 10 of this administrative regulation.

Section 12. Posting Tariffs, Administrative Regulations, and Statutes. (1) Each utility shall display a suitable placard, in large type, that states that the utility’s tariff and the applicable administrative regulations and statutes are available for public inspection.

(2) Each utility shall provide a suitable table or desk in its office or place of business on which it shall make available for public viewing:

(a) A copy of all effective tariffs and supplements establishing its rates, classifications, charges, rules, and requirements, together with forms of contracts and applications applicable to the territory served from that office or place of business;

(b) A copy of all proposed tariff revisions that the utility has filed and are pending before the commission and all documents filed in a commission proceeding initiated to review the proposed tariff revisions;

(d) A copy of 807 KAR Chapter 5.

(3) The information required in subsection (2) of this section shall be made available in an electronic or nonelectronic format.

Section 13. Special Contracts. Each utility shall file a copy of all special contracts entered into governing utility service that establish rates, charges, or conditions of service not included in its general tariff.

Section 14. Confidential Materials. A utility may request confidential treatment for materials filed pursuant to this administrative regulation. Confidential material shall be treated in accordance with the procedures established in 807 KAR 5:001, Section 13(3).

Section 15. Deviations from Rules. In special cases, for good cause shown and upon application to and approval by the commission, deviations from the rules in this administrative regulation may be permitted.

Section 16. Incorporation by Reference. (1) The following material is incorporated by reference:

(a) "Tariff Form-1", July 2012;

(b) "Tariff Form-2", July 2012; and

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the commission’s offices located at 211 Sower Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m., or through the commission’s Web site at http://psc.ky.gov. (8 Ky.R. 797; Am. 1148; eff. 6-2-82; 11 Ky.R. 69; eff. 8-4-84; 39 Ky.R. 312; 1032; 1152; eff. 1-4-13.)