§ 49-05-04.3 — Rate adjustment - Transmission facility costs

North Dakota § 49-05-04.3

• Jurisdiction: North Dakota
• Title 49: Public Utilities
• Ch. 49-05: Procedure on Regulation of Public Utilities

Text

1. The commission may approve, reject, or modify a tariff filed under section 49-05-06
which provides for an adjustment of rates to recover jurisdictional capital and operating
costs incurred by a public utility for new or modified electric transmission facilities. For
purposes of this section, an electric transmission facility includes an electric
transmission line as defined in chapter 49-21.1 and other transmission line equipment,
including substations, transformers, and other equipment constructed to improve the
power delivery capability or reliability of the electric transmission system; and
operating costs include federally regulated costs charged to or incurred by the public
utility to increase regional transmission capacity or reliability. The tariff must:
a. Allow the public utility to recover on a timely basis its investment and associated
costs for new or modified electric transmission facilities not reflected in the utility's
general rate schedule;
b. Allow a return on the public utility's investment made for new or modified electric
transmission facilities at the level approved in the utility's most recent general rate
case;
c. Provide a current return on construction work in progress for new or modified
electric transmission facilities, provided the cost recovery from retail customers of
the allowance for funds used during construction is not sought through any other
means; and
d. Terminate cost recovery after the public utility's costs for new or modified electric
transmission facilities have been recovered fully or have been reflected in the
utility's general rate tariffs.
2. Rate adjustments filed under the tariff must be accompanied by:
a. A description and quantification of the costs incurred by the public utility for new
or modified electric transmission facilities which are subject to recovery;
b. A schedule for implementation of the applicable transmission facility projects;
c. Calculations to establish that the rate adjustment is consistent with the terms of
the tariff; and
d. An application fee in the amount of one hundred thousand dollars. Upon request
of the commission and with the approval of the emergency commission, the
applicant shall pay such additional fees as are reasonably necessary for
completion of the application process by the commission. The commission may
waive or reduce the fee.

3. Upon receipt of a rate adjustment filed under the tariff, the commission shall approve
the rate adjustment to become effective unless, after notice and opportunity for
hearing and comment, the commission determines the rate adjustment does not
comply with the tariff or the incurred costs for new or modified electric transmission
facilities are not reasonable and prudent. The commission shall pay the expenses of
investigating a rate adjustment for recovery of transmission facility costs under this
section from the application fee paid by the public utility in accordance with section
49-02-02.