Section 170 IAC 4-10-5 - Petition and case-in-chiefAuthority: IC 8-1-1-3; IC 8-1.5-3-8.3
Affected: IC 8-1-40.5-10; IC 8-1-40.5-12; IC 8-1.5-3-8.1; IC 8-1.5-3-8.3
Sec. 5.
(a) An electric utility seeking to securitize costs for retired electric utility generation assets shall file its petition and case-in-chief on the same day. The two hundred forty (240) day timeline in IC 8-1-40.5-10(b) does not start until the case-in-chief is filed.(b) The electric utility's petition shall contain at least the following:(1) The best estimate of the amount and terms of the proposed securitization.(2) The best estimate of the proposed term in years of the securitization bonds.(3) The best estimate of the total jurisdictional rate base at time synchronized with the best estimate of qualified costs at time of bond issuance.(4) An executive summary of the request.(c) The electric utility's case-in-chief shall contain at least the following: (1) An estimate of the electric utility's total proposed qualified costs, together with descriptions and schedules of the proposed qualified costs to be subject to the securitization, including linking or mapping the proposed qualified costs to the costs currently included in utility rates, as applicable. Excel worksheets are also be submitted with the formulas intact.(2) The schedule or schedules comparing the net present value of the total of the proposed securitization charges with the net present value of the recovery of the qualified costs through traditional ratemaking, over a period not exceeding twenty (20) years. The schedules shall:(A) identify the assumption or assumptions used in the net present value analysis; and(B) include evidence supporting the assumption or assumptions. Excel worksheets are also submitted with the formulas intact.
(3) Identification and list of the specific electric utility generation assets to be retired for which securitization is being requested, together with a calculation of the net original cost of the assets adjusted for depreciation to be incurred until the facility is retired.(4) Proposed process to accomplish the requirements of IC 8-1-40.5-12(c), including a demonstration that the proposed securitization charges are expected to be enough to timely provide payments on: (B) other required amounts and charges in connection with the securitization bonds.(5) Evidence describing: (A) the use of the securitization bonds proceeds; and(B) accounting entries; at receipt of bond proceeds. (6) Description of the proposed mechanism to reduce the electric utility's base rates and charges after assessing the securitization charges on customer bills in order to remove costs associated with the qualified costs reflected in the electric utility's retail rates at the time the petition is filed.(7) Tariffs for: (A) securitization charges; and(B) credits or rate reductions required to remove qualified costs from existing rates. Work papers used in determining these tariffs are submitted to the commission and provided to participating parties.
(8) Description of: (A) current and anticipated market conditions; and(B) expected bond structure, including a sensitivity analysis showing various bond rates and maturities, along with the corresponding estimated savings for ratepayers.(9) Evidence of the anticipated costs incurred to: (B) maintain; the securitization bonds.(10) Proposed plan for capital investment in Indiana, justifying plan investments not identified as a clean energy resource.(11) Schedules and supporting documentation for estimated numbers relied on to support the case-in-chief, including assumptions used in net present value calculations.(12) A description of: (A) debt or equity securities to be refinanced or retired; and(B) estimated redemption premiums, if applicable; including previously issued securitization bonds.(13) A copy of: (C) an arrangement; proposed or has been made, or examples of those documents, for the sale of the securitization bonds proposed to be issued. (14) Demonstration of the proposed process to be used to correct over collections or under collections of securitization charges.(15) Proposed financing order.(16) Proposed issuance advice letter for securitization bonds, if the utility plans to use that letter.Indiana Utility Regulatory Commission; 170 IAC 4-10-1; emergency rule filed 12/20/2021, 9:30 a.m.: 20211229-IR-170210538ERA, eff 1/1/2022 Filed 8/6/2024, 12:06 p.m.: 20240904-IR-170240090FRA