NIPSCO Submission of MSFRs

STATE OF INDIANA

INDIANA UTILITY REGULATORY COMMISSION

PETITION OF NORTHERN INDIANA PUBLIC

SERVICE COMPANY LLC PURSUANT TO IND.

CODE §§ 8‐1‐2‐42.7, 8‐1‐2‐61 AND IND. CODE § 8‐

1‐2.5‐6 FOR (1) AUTHORITY TO MODIFY ITS

RATES AND CHARGES FOR ELECTRIC UTILITY

SERVICE THROUGH A PHASE IN OF RATES; (2)

APPROVAL OF NEW SCHEDULES OF RATES

AND CHARGES, GENERAL RULES AND

REGULATIONS, AND RIDERS; (3) APPROVAL

OF REVISED COMMON AND ELECTRIC

DEPRECIATION RATES APPLICABLE TO ITS

ELECTRIC PLANT IN SERVICE; (4) APPROVAL

OF NECESSARY AND APPROPRIATE

ACCOUNTING RELIEF; AND (5) APPROVAL OF

A NEW SERVICE STRUCTURE FOR

INDUSTRIAL RATES.

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CAUSE NO. 45159

SUBMISSION OF MINIMUM STANDARD FILING REQUIREMENTS

Northern Indiana Public Service Company LLC (“NIPSCO”), by counsel,

respectfully submits the working papers required by the Indiana Utility

Regulatory Commission’s (“Commission”) Minimum Standard Filing

Requirements in connection with its Case‐In‐Chief.

loldham

New Stamp

Respectfully submitted:

Claudia J. Earls (No. 8468-49) NiSource Corporate Services - Legal 150 West Market Street, Suite 600 Indianapolis, Indiana 46204 Phone: (317) 684-4923 Fax: (317) 684-4918 Email: [email protected]

Attorney for Petitioner Northern Indiana Public Service Company LLC

CERTIFICATE OF SERVICE

The undersigned hereby certifies that the foregoing was served by email

transmission upon the following:

William Fine

Abby R. Gray

Randall C. Helmen

Indiana Office of Utility Consumer Counselor

115 W. Washington Street, Suite 1500 South

Indianapolis, Indiana 46204

[email protected]

[email protected]

[email protected]

[email protected]

A courtesy copy has also been provided by email transmission upon the

following:

Todd A. Richardson

Joseph P. Rompala

Lewis & Kappes, P.C.

One American Square, Suite 2500


trichardson@lewis‐kappes.com

jrompala@lewis‐kappes.com

Nikki G. Shoultz

Kristina K. Wheeler

Bose McKinney & Evans LLP

111 Monument Circle, Suite 2700


[email protected]

[email protected]

Bette J. Dodd

Lewis & Kappes, P.C.

One American Square, Suite 2500


bdodd@lewis‐kappes.com

Jennifer A. Washburn

Citizens Action Coalition

603 East Washington Street, Suite 502


[email protected]

Robert M. Glennon Robert Glennon & Assoc., P.C. 3697 N. Co. Rd. 500 E Danville, Indiana 46122

[email protected]

James W. Brew Stone Mattheis Xenopoulos & Brew, PC 1025 Thomas Jefferson St., N.W. 8th Floor, West Tower Washington, DC 20007

[email protected]

Dated this 31st day of October, 2018. 1 /l CU<Jc::Y/

Claudia J. Earls

NORTHERN INDIANA PUBLIC SERVICE COMPANY LLC

ELECTRIC RATE CASE

Forward Looking Test Year: Twelve months ending December 31, 2019

Base Year: Twelve months ending December 31, 2017

MINIMUM STANDARD FILING REQUIREMENTS (MSFR)

TABLE OF CONTENTS

170 IAC Description Part

‐1‐

Filing of Case‐in‐Chief

1‐5‐6 Filing of Case‐in‐Chief 1

1‐5‐6(1) Comparative Financial Statements including the

following: 1

1‐5‐6(1)(A) (A) Balance sheets as of the last day of the test

year and of the twelve (12) month period preceding

the test year.

1

1‐5‐6(1)(B) (B) a statement of cash flow for the test year 1

1‐5‐6(1)(C)

(C) Income statements for the test year and for

the twelve (12) month period immediately prior to

the test year

1

1‐5‐6(2) Revenue requirement calculation 1

1‐5‐6(3) Net operating income on a jurisdictional basis as: 1

1‐5‐6(3)(A) (A) as set forth in the utilityʹs operating financial

statements; and 1

1‐5‐6(3)(B) (B) as adjusted for ratemaking purposes under

present and proposed rates. 1

1‐5‐6(4) Jurisdictional rate base as: 1

1‐5‐6(4)(A) (A) as set forth in the utilityʹs operating financial

statements; and 1

1‐5‐6(4)(B) (B) as adjusted for ratemaking purposes 1

1‐5‐6(5) Capital structure and cost of capital, including

supporting schedules. 1

1‐5‐6(6) Gross revenue conversion factor. 1

1‐5‐6(7) Effective income tax rate for the utility. 1


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1‐5‐7 Working Papers and data; general information 2

1‐5‐7(1)

A chart of accounts that: (A) details the types of

charges incurred in specific subaccounts and (B)

describes the utilityʹs format for: (i) account

numbering; and (ii) coding.

2

1‐5‐7(2) A listing of standard monthly journal entries. 2

1‐5‐7(3)

All annual and quarterly reports to shareowners of

the utility and its ultimate parent corporation, if any,

or, if public information, the web address where the

reports can be viewed for the: (A) last two (2) years;

and (B) year subsequent to the test year, as available.

2

1‐5‐7(4)

All reports of the utility and its parent corporation,

if any, filed with the Securities and Exchange

Commission for the: (A) test year; (B) year preceding

the test year; and (C) year following the test year, as

available. In lieu of hard copies, the utility may

provide a listing of the reports filed, entity filing

name, and web address where the reports may be

viewed.

2

1‐5‐7(5)

The results of the latest FERC staff audit of the utility

for compliance with the FERC Uniform System of

Accounts.

2

1‐5‐7(6)

The utilityʹs operating and construction budgets for

the following: (A) the test year; and (B) the year

following the test year.

2

1‐5‐7(7) A statement of the budgeting assumptions included

in the budgets listed in subdivision (6) 2

1‐5‐7(8)

For an electric utility, the current system

interconnection or operating agreement governing

system power operations between affiliates.

2


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1‐5‐8 Working Papers and data; revenues, expenses, and

taxes 3

1‐5‐8(a) An electing utility shall submit the following: 3

1‐5‐8(a)(1) Operating income statements as follows: 3

1‐5‐8(a)(1)(A) (A) An unadjusted operating income statement

for the test year 3

1‐5‐8(a)(1)(B)

(B) An income statement for the test year under

the utilityʹs present rates after adjustments for

ratemaking purposes to (i) revenues, (ii) expenses,

and (iii) taxes

3

1‐5‐8(a)(1)(C)

An income statement for the test year under the

rates being proposed by the electing utility with

expenses summarized by the following

classifications:

3

1‐5‐8(a)(1)(C)(i) Operating expenses 3

1‐5‐8(a)(1)(C)(ii) Depreciation 3

1‐5‐8(a)(1)(C)(iii) Taxes other than income taxes 3

1‐5‐8(a)(1)(C)(iv) Operating income before income taxes 3

1‐5‐8(a)(1)(C)(v) Current federal income taxes 3

1‐5‐8(a)(1)(C)(vi) Current state income taxes 3

1‐5‐8(a)(1)(C)(vii) Deferred federal income taxes 3

1‐5‐8(a)(1)(C)(viii) Deferred state income taxes 3

1‐5‐8(a)(1)(C)(ix) Income tax credits 3

1‐5‐8(a)(1)(C)(x) Other charges and credits 3


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1‐5‐8(a)(1)(C)(xi) Net utility operating income 3

1‐5‐8(a)(2)

All supporting working papers for each pro forma

adjustment listed in subdivision (1), including the

following:

3

1‐5‐8(a)(2)(A) (A) Actual test year expenses 3

1‐5‐8(a)(2)(B) (B) Adjustments to test year expenses 3

1‐5‐8(a)(2)(C) (C) A description of adjustment methodology 3

1‐5‐8(a)(3) The following monthly information by rate class

for the test year: 3

1‐5‐8(a)(3)(A) (A) Operating revenues 3

1‐5‐8(a)(3)(B) (B) Sales or deliveries 3

1‐5‐8(a)(3)(C) (C) Number of customers 3

1‐5‐8(a)(3)(D) (D) Unbilled revenues 3

1‐5‐8(a)(4)

Pro forma (A) revenue; (B) sales or deliveries; and

(C) numbers of customers; for the test year,

including detailed calculations supporting

adjustments, if any, for annualization.

3

1‐5‐8(a)(5)

Pro forma revenue adjustment and support

therefor relating to the proposed change in any

nonrecurring charge, including, but not limited to,

the following, as applicable:

3

1‐5‐8(a)(5)(A) (A) Insufficient funds check charge 3

1‐5‐8(a)(5)(B) (B) Reconnect charge 3

1‐5‐8(a)(5)(C ) (C) Disconnect charge 3


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1‐5‐8(a)(5)(D) (D) Records charge 3

1‐5‐8(a)(5)(E ) (E) Collection charge 3

1‐5‐8(a)(5)(F) (F) Meter testing charge 3

1‐5‐8(a)(5)(G) (G) Meter reading charge 3

1‐5‐8(a)(5)(H) (H) Meter tampering charge 3

1‐5‐8(a)(5)(I) (I) Connection or tap fee 3

1‐5‐8(a)(6)

The utilityʹs written policies and procedures, if any,

related to the write‐off of any customer accounts as

uncollectible

3

1‐5‐8(a)(7) The utilityʹs actual operating expenses by account

and sub‐account for the test year 3

1‐5‐8(a)(8)

A schedule detailing purchases for resale of gas,

electricity, and water, including costs and volumes

purchased during the test year

3

1‐5‐8(a)(9)

The number of employees by month for the test year

categorized by the following (A) bargaining unit, (B)

exempt status, and (C) nonexempt status

3

1‐5‐8(a)(10)

Actual payroll dollars charged for the test year to

accounts for the following: (A) construction, (B)

operation, (C) maintenance, and (D) other

3

1‐5‐8(a)(11)

The following information by employee category

identified in subdivision (9) for each payroll

increase during the test year:

3

1‐5‐8(a)(11)(A) (A) The date 3

1‐5‐8(a)(11)(B) (B) The percentage increase 3

1‐5‐8(a)(12) A description of the utilityʹs other employee

compensation programs paid or granted by the 3


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utility during the test year, including, but not

limited to, the following:

1‐5‐8(a)(12)(A) (A) Performance bonuses 3

1‐5‐8(a)(12)(B) (B) Incentive payments 3

1‐5‐8(a)(12)(C) (C) Stock and stock options 3


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1‐5‐8(a)(13) Regarding benefits provided by the utility to

employees, the following: 4

1‐5‐8(a)(13)(A) (A) A list of the categories of benefits 4

1‐5‐8(a)(13)(B) (B) The associated cost of each category 4

1‐5‐8(a)(13)(C)

(C) The amount charged to operation and

maintenance expense during the test year with

respect to each category

4

1‐5‐8(a)(13)(D) (D) The amount of payroll benefits capitalized

during the test year with respect to each category 4

1‐5‐8(a)(14) The utilityʹs pension expense for the test year and an

identification of any unfunded amounts 4

1‐5‐8(a)(15) The latest pension actuarial study used by the utility

for determining pension accrual 4

1‐5‐8(a)(16) The latest actuarial study for other postretirement

employee benefits 4

1‐5‐8(a)(17)

Schedules of net charges by category or account for

each affiliated company for services rendered

during the test year, including the following:

4

1‐5‐8(a)(17)(A) (A) An explanation of the nature of services

provided 4

1‐5‐8(a)(17)(B) (B) An explanation of the basis or pricing

methodology for charges 4

1‐5‐8(a)(17)(C)

(C) If charges are allocated, for each type of

charge allocated, the following: (i) a detailed

explanation of the allocation methodology used, and

(ii) the specific allocation factors used.

4

1‐5‐8(a)(18) The monthly amounts of injury and damage for the

test year, including the following: 4

1‐5‐8(a)(18)(A) (A) Claims paid by the utility 4


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1‐5‐8(a)(18)(B) (B) Expense accrued 4

1‐5‐8(a)(19) If applicable, test year data applicable to each DSM

program of the utility, including the following: 4

1‐5‐8(a)(19)(A) (A) a description of the DSM program conducted 4

1‐5‐8(a)(19)(B) (B) costs related to the program 4

1‐5‐8(a)(19)(C) (C) the accounting treatment of the costs 4

1‐5‐8(a)(19)(D) (D) reference to the applicable commission

orders, if any, regarding each DSM program 4

1‐5‐8(a)(20)

Expenditures incurred by the utility during the test

year and amounting to more than ten thousand

dollars ($10,000) to an individual payee for (A)

outside services, (B) consulting services, or (C) legal

services.

4

1‐5‐8(a)(21) A schedule of all charitable and civic contributions

recorded to utility operations during the test year 4

1‐5‐8(a)(22)

A schedule of all research and development

expenditures incurred during the test year and

recorded to utility operations

4

1‐5‐8(a)(23)

A schedule of (A) trade, (B) social, and (C) service

organization memberships paid during the test year

and recorded to utility operations.

4

1‐5‐8(a)(24)

A schedule of estimated rate case expenses,

including supporting detail, for the following: (A)

outside services to be rendered and (B) the expected

costs of those services

4


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1‐5‐8(a)(25)

Regarding advertising recorded to utility operations

during the test year, the following: (A) a schedule of

expenditures by the utility, and (B) representative

samples of the advertising by major media category,

including, but not limited to, the following: (i)

television; (ii) radio; (ii) newspaper.

4

1‐5‐8(a)(26)

The schedule required by subdivision (25) shall

identify expenditures by the following subject

matters:

4

1‐5‐8(a)(26)(A) (A) Public health and safety 4

1‐5‐8(a)(26)(B) (B) Conservation 4

1‐5‐8(a)(26)(C) (C) an Explanation of rates, billing practices, and

other administrative matters 4

1‐5‐8(a)(26)(D) (D) Other advertising programs 4

1‐5‐8(a)(27)

A description of the utilityʹs methodology for

capitalizing construction overheads during the test

year

4

1‐5‐8(a)(28)

A description of the allocation methodology of

multiutility common expenses that are allocated to

the utility in the rate proceeding covered by this rule

4

1‐5‐8(a)(29)

A schedule of amounts of taxes other than income

taxes recorded to utility operations during the test

year for the following categories:

4

1‐5‐8(a)(29)(A) (A) Social Security 4

1‐5‐8(a)(29)(B) (B) Unemployment 4

1‐5‐8(a)(29)(C) (C) Public utility fee 4

1‐5‐8(a)(29)(D) (D) Property 4


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1‐5‐8(a)(29)(E) (E) Utility receipts tax 4

1‐5‐8(a)(29)(F) (F) other revenue related 4

1‐5‐8(a)(29)(G) (G) other 4

1‐5‐8(a)(30)

A schedule of book value and taxing authority

assessed value for the determination of real and

personal property tax for the following: (A) the test

year and, (B) to the extent reasonably available, the

latest information subsequent to the test year

4

1‐5‐8(a)(31)

A schedule of the following: (A) deferred tax

balances of the utility at the (i) beginning and (ii) end

of the test year, and (B) net provisions and paybacks

during the test year

4

1‐5‐8(a)(32)

Computations showing the deferred income taxes of

the utility derived by using accelerated tax

depreciation with separate computations provided

for the following: (A) state income taxes and (B)

federal income taxes

4

1‐5‐8(a)(33)

A reconciliation of any difference between (A) the

deferred tax balance, as shown as (i) a reduction to

rate base or (ii) cost‐free capital; and (B) the deferred

tax balance of the utility as shown on the balance

sheet

4

1‐5‐8(a)(34)

A schedule showing the breakdown of accumulated

investment tax credits of the utility, including a

description of the methodology used to write off the

unamortized balances

4

1‐5‐8(a)(35)

Supporting working papers for the development of

the state and federal composite income tax rate used

by the utility during the test year to defer income tax

expense.

4


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1‐5‐8(a)(36) The calculation of the interest deduction used by the

utility to compute income taxes. 4

1‐5‐8(b)

In addition to the information listed in subsection

(a), an electric utility shall submit the following

information related to electric generating facility

maintenance by station:

4

1‐5‐8(b)(1) (1) actual and budgeted maintenance costs

during the test year 4

1‐5‐8(b)(2) (2) budgeted maintenance schedule for the test

year and any future period or periods as available 4


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1‐5‐9 Working Papers and data; rate base and general

information 5


1‐5‐9(a)(1)

A summary schedule showing the utilityʹs

proposed rate base. The schedule shall show the

following:

5

1‐5‐9(a)(1)(A) (A) beginning balances per the utilityʹs books 5

1‐5‐9(a)(1)(B) (B) proposed pro forma adjustments 5

1‐5‐9(a)(2) The following data for each regulatory asset for

which the utility seeks rate base treatment: 5

1‐5‐9(a)(2)(A) (A) Beginning test year balance 5

1‐5‐9(a)(2)(B) (B) End of test year balance 5

1‐5‐9(a)(2)(C) (C) Proposed balance to be included in rates 5

1‐5‐9(a)(2)(D)

The following data for each regulatory asset for

which the utility seeks rate base treatment: Where

applicable, any:

5

1‐5‐9(a)(2)(D)(i) (i) commission order 5

1‐5‐9(a)(2)(D)(ii) (ii) accounting pronouncement 5

1‐5‐9(a)(2)(D)(iii) or (iii) other authorization establishing the asset 5

1‐5‐9(a)(3) A schedule showing the fair value of the utilityʹs

proposed rate base 5

1‐5‐9(b)

If a utility proposes to add investment in

qualified pollution control properties as defined in

IC 8‐1‐2‐6.6 to the value of its electric property, the

utility shall also submit a filing that complies with

the requirements of 170 IAC 4‐6

5


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1‐5‐10 Working Papers and data; rate base, utility plant in

service 6

1‐5‐10(1)

Any valuation study performed by or for the utility,

including all assumptions used in that study, that

serves as the basis for the utilityʹs proposed fair

value of its utility plant in service, including any

supporting working papers

6

1‐5‐10(2) A schedule showing end of test year balances for

the following: 6

1‐5‐10(2)(A) (A) a utilityʹs plant in service; and 6

1‐5‐10(2)(B) (B) accumulated depreciation by subaccount 6

1‐5‐10(3) The utilityʹs construction budget for the following: 6

1‐5‐10(3)(A) (A) the test year; and 6

1‐5‐10(3)(B)

(B) as available, the period that ends with the

plant cutoff date used to determine the plant in

service rate base proposed by the utility

6

1‐5‐10(4)

An annual summary by subaccount of actual net

plant additions to a utilityʹs plant in service used to

determine the plant in service rate base proposed

by the utility, showing

6

1‐5‐10(4)(A) (A) plant additions, 6

1‐5‐10(4)(B) (B) retirements, and 6

1‐5‐10(4)(C)

(C) other changes to plant in service for the test

year and, as available, for the period subsequent to

the test year ending with the plant cutoff date

6

1‐5‐10(5) A schedule of pro forma utility additions

subsequent to the test year ending with the 6


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proposed plant cutoff date, including the

following:

1‐5‐10(5)(A) (A) Estimated in service date of dates 6

1‐5‐10(5)(B) (B) Actual costs per books at the end of the test

year 6

1‐5‐10(5)(C)

(C) Estimated cost of utility additions based on

costs as defined by the applicable NARUC or FERC

Uniform System of Accounts

6

1‐5‐10(5)(D)

(D) Pro forma retirements, cost to retire, or net

proceeds received from the sale of property related

to the proposed addition to rate base

6

1‐5‐10(5)(E)

(E) For those utility additions that have received

CWIP ratemaking treatment, the utility shall show

AFUDC as a separate component of cost and include

an explanation of the allocation of AFUDC to retail

customers receiving service from the utility in

Indiana

6

1‐5‐10(6)

A narrative statement of the criteria used to select

projects included in the utilityʹs proposed pro forma

additions to the end of test year plant in service

6

1‐5‐10(7)

A narrative statement of all policies and

procedures used to account for the capitalization of

AFUDC

6

1‐5‐10(8)

A listing of cause numbers of all commission

orders that pre‐certify projects added to the end of

year period plant in service

6


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1‐5‐11 Working Papers and data; rate base, depreciation 7


1‐5‐11(a)(1)

If applicable, the cause number and order date of the

commissionʹs rate order authorizing the utilityʹs

current depreciation rates and the cause number

approving the last depreciation study

7

1‐5‐11(a)(2)

A description of each adjustment proposed by the

utility to its book accumulated provision for

depreciation and depreciation expense for the test

year

7

1‐5‐11(b)

If a utility is seeking a change in its depreciation

accrual rates, the utility shall also submit the

following information:

7

1‐5‐11(b)(1)

(1) The depreciation study performed by or for

the utility that serves as the basis for the requested

change in depreciation accrual rates

7

1‐5‐11(b)(2) (2) A copy of the dismantlement or demolition

studies performed by or for the utility 7

1‐5‐11(b)(3) (3) Supporting working papers for the documents

required in subdivisions (1) and (2) 7


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1‐5‐12 Working Papers and data; rate base, working

capital 8

1‐5‐12(1)

If the utility is requesting an allowance for cash

working capital, a copy of all studies, including

working papers, supporting the request.

8

1‐5‐12(2) For an electric utility, the following: 8

1‐5‐12(2)(A)

(A) a complete description of the fuel inventory

level policies used for planning purposes by the

utility

8

1‐5‐12(2)(B)

(B) Copies of all analyses completed within the

last three (3) years by or for the utility establishing

the optimal fuel inventory level for each generating

station

8

1‐5‐12(2)(C)

When determining the pro forma fuel inventory

level to be used for regulatory purposes based on a

daily burn concept, for each generating unit or

plant, or both, provide the following:

8

1‐5‐12(2)(C)(i) (i) Tons of fuel consumed for the test year or

applicable adjusted period 8

1‐5‐12(2)(C)(ii) (ii) The daily burn in (AA) tons, (BB) gallons, or

(CC) cubic feet 8

1‐5‐12(2)(C)(iii) (iii) The pro forma optimal number of days

supply required for each plant or unit 8

1‐5‐12(2)(C)(iv) (iv) The pro forma inventory of tons or gallons

burned by the generating unit or plant 8

1‐5‐12(2)(C)(v) (v) The fuel cost per ton or gallon 8

1‐5‐12(2)(C)(vi) (vi) The per books fuel inventory 8


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1‐5‐12(2)(D)

Any request for an adjustment to the utilityʹs

proposed fuel inventory level intended to meet

normal operations must include the following:

8

1‐5‐12(2)(D)(i) (i) a narrative discussion of the factors considered

in determining that an adjustment is warranted, and 8

1‐5‐12(2)(D)(ii) (ii) a detailed exhibit demonstrating the

development of the proposed adjustment 8

1‐5‐12(3) For a gas utility the following: 8

1‐5‐12(3)(A)

(A) the leased and contract storage balances at the

beginning of the first month and end of each month

of the test year with the average of thirteen (13)

monthly balances shown separately. If any of the

balances are not representative of the utilityʹs

current operating plan, the utility shall include an

explanation of relevant circumstances

8

1‐5‐12(3)(B)

(B) A complete description of the gas storage and

supply policies used for planning purposes by the

utility

8

1‐5‐12(3)(C)

(C) Copies of all analyses conducted by or for the

utility establishing the optimal storage and supply

level for the utilityʹs system.

8

1‐5‐12(4)

The materials and supplies balances at the

beginning of the first month and end of each month

of the test year with the average of thirteen (13)

monthly balances shown separately. If any of the

balances are not representative of the utilityʹs

current operating plan, the utility shall include an

explanation of relevant circumstances

8


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1‐5‐13 Working Papers and data; rate of return and capital

structure 9


1‐5‐13(a)(1)

Capitalization and capitalization ratios at the end

of the test year and at the end of the year beginning

twelve (12) months prior to the test year,

respectively, including the following information:

9

1‐5‐13(a)(1)(A)

(A) Year‐end interest coverage ratios for the test

year and the year ended twelve (12) months prior to

the end of the test year, and a pro forma interest

coverage under the rates proposed by the utility

9

1‐5‐13(a)(1)(B)

(B) Year‐end preferred stock dividend coverage

ratios for the test year and the year ended twelve (12)

months prior to the end of the test year

9

1‐5‐13(a)(1)(C) (C) The supporting calculations for the

information described in clauses (A) and (B) 9

1‐5‐13(a)(2) The following financial data relating to the utility

as of the end of the most recent five (5) fiscal years: 9

1‐5‐13(a)(2)(A) (A) Annual price earnings ratio 9

1‐5‐13(a)(2)(B) (B) Earnings‐book value ratio on a per share basis,

using average book value 9

1‐5‐13(a)(2)(C) (C) Annual dividend yield 9

1‐5‐13(a)(2)(D) (D) Annual earnings per share in dollars 9

1‐5‐13(a)(2)(E) (E) Annual dividends per share in dollars 9

1‐5‐13(a)(2)(F) (F) A book value per share yearly 9

1‐5‐13(a)(2)(G)

(G) Average annual market price per share

calculated using monthly high and low share market

prices

9


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1‐5‐13(a)(2)(H) (H) Pretax interest coverage ratio 9

1‐5‐13(a)(2)(I) (I) Post tax interest coverage ratio 9

1‐5‐13(a)(2)(J) (J) Market price‐book value ratio average 9

1‐5‐13(a)(2)(K) (K) The supporting calculations for the

information described in this subdivision 9

1‐5‐13(a)(3)

The utilityʹs capital structure and weighted average

cost of capital as of the test year end, including the

following information:

9

1‐5‐13(a)(3)(A) (A) Common equity 9

1‐5‐13(a)(3)(B) (B) Long term debt, including that maturing with

one (1) year 9

1‐5‐13(a)(3)(C) (C) Other debt, with specificity 9

1‐5‐13(a)(3)(D) (D) Preferred or preference stock 9

1‐5‐13(a)(3)(E) (E) Customer deposits 9

1‐5‐13(a)(3)(F)

(F) Sources of cost free capital, including the

following: (i) pre‐1971 investment tax credit, (ii)

deferred taxes for ratemaking, and (iii) FAS 106

nonexternally funded liabilities

9

1‐5‐13(a)(3)(G) (G) Post‐1970 investment tax credit and other

components as appropriate 9

1‐5‐13(a)(4)

If an electing utility is asking for special treatment

because of the provisions of any of the following

documents of the utility or its parent company, or

both, then copies of the document or documents

with the affecting provision or provisions must

also

9


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1‐5‐13(a)(4)(A) (A) Articles of Incorporation or a similar

document 9

1‐5‐13(a)(4)(B) (B) Indentures 9

1‐5‐13(a)(4)(C) (C) Other loan documents 9

1‐5‐13(a)(4)(D)

(D) Other documents that describe the following:

(i) coverage requirements, (ii) limits on proportions

of types of capital outstanding, and (iii) restrictions

on dividend payouts

9

1‐5‐13(a)(5)

A schedule of preferred stock outstanding by

series, including current maturities, for the end of

the test year and the latest date reasonably available

9

1‐5‐13(a)(6)

A schedule of long term debt outstanding by

series, including current maturities, for the end of

the test year and the latest date reasonably available

9

1‐5‐13(a)(7)

A schedule of the following information for the

utility as of the end of the test year and as of the

latest date reasonably available prior to the post‐

filing date respectively:

9

1‐5‐13(a)(7)(A)

(A) A computation of the embedded cost rate of

long term debt, including the amount maturing

within twelve (12) months

9

1‐5‐13(a)(7)(B) (B) Computation of the embedded cost rates of

other debt 9

1‐5‐13(a)(7)(C)

(C) Computation of the embedded cost rates of

preferred or preference stock, including amounts

maturing within twelve (12) months

9

1‐5‐13(a)(8)

Schedules required by this subsection should

contain all relevant information, including, but not

limited to, the following:

9


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1‐5‐13(a)(8)(A) (A) Date of issue 9

1‐5‐13(a)(8)(B) (B) Maturity date 9

1‐5‐13(a)(8)(C) (C) Dollar amount 9

1‐5‐13(a)(8)(D) (D) Coupon or dividend rate 9

1‐5‐13(a)(8)(E) (E) Net proceeds, including discounts and

premiums 9

1‐5‐13(a)(8)(F) (F) Annual interest or dividend paid and balance

of principal; and 9

1‐5‐13(a)(8)(G) (G) The calculations in this section 9

1‐5‐13(a)(9)

The following information regarding the utilityʹs

plans regarding debt, common stock, and preferred

stock during the year following the test year end:

9

1‐5‐13(a)(9)(A) (A) Issues that are to be retired or refinanced 9

1‐5‐13(a)(9)(B)

(B) If a refinancing is planned, the following: (i)

the manner in which the refinancing will proceed,

that is, sinking fund or refinancing, (ii) the source of

the capital to be used to implement the refinancing,

and (iii) the estimated cost rate of new ca

9

1‐5‐13(a)(10)

All relevant reports in the utilityʹs possession by

rating agencies on the utility and its parent

company for the test year, and thereafter up to the

date of the final hearing. The reports should be

based on the debt:

9

1‐5‐13(a)(10)(A) (A) used in calculations in the electing utilityʹs

filing; or 9

1‐5‐13(a)(10)(B) (B) of a parent company or proxy company whose

debt is rated 9


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1‐5‐13(a)(11)

Average monthly balance of short‐term debt for

the test year and the most recently available twelve

(12) month period, and the utilityʹs current cost for

short term debt

9

1‐5‐13(b)

With respect to the electing utilityʹs proposed cost

of equity and proposed fair rate of return, an

electing utility shall provide the following:

9

1‐5‐13(b)(1)

(1) If an electing utility used a risk premium

model to establish its cost of equity, all documents

the electing utility used to estimate the risk premium

9

1‐5‐13(b)(2)

(2) If an electing utility used any other cost of

equity models, all documents used by the utility to

derive its estimate

9

1‐5‐13(b)(3)

(3) If an electing utility used a comp earnings

model and the proxy group has more than 20 comps,

an electronic copy of the analysis used by the uty in

a format or program that was used to derive the

electing utilityʹs estimated cost of equity or fair rate

of return

9

The requested information is provided on the

attached CD‐Rom. We have also included a printout

of the contents of the CD‐Rom.

9

1‐5‐13(c)

To the extent the electing utility is prohibited from

producing copies of the doc listed in subs (b)(1)

through (b)(3) due to the documentation being

licensed or proprietary material by agreement or

by copyright law, the electing utility shall provide:

9

1‐5‐13(c)(1) (1) A list of which documents may not be copied

and the reasons therefore 9


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1‐5‐13(c)(2)

(2) Access to the documents listed in subdivision

(1) to all parties to the proceeding under this rule at

a mutually convenient time and place

9


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1‐5‐14 Working Papers and data; other 10

1‐5‐14(1)

Monthly unaudited financial reports for the test year

and for each month subsequent to the test year

through the date of the final hearing in the

proceeding

10

1‐5‐14(2)

The utilityʹs latest FERC rate case filing, if any, and

latest rate order issued by the FERC, if any,

regarding wholesale or interstate rate changes

10

1‐5‐14(3)

The minutes of the board of directorʹs meetings held

during the test year and for the year following the

test year

10

1‐5‐14(4) Internal audit reports prepared during the test year 10

1‐5‐14(5) Contracts regarding the following: 10

1‐5‐14(5)(A) (A) Gas supply 10

1‐5‐14(5)(B) (B) Gas Storage 10

1‐5‐14(5)(C) (C) Purchased electric, water, and coal 10

1‐5‐14(5)(D) (D) Transportation and rail contracts 10

1‐5‐14(6)

Accounting information documenting monthly

charges applicable to the proposed posttest year

utility additions and related retirement projects.

10

1‐5‐14(7) Calculations and source documents for any

affiliated transaction, including, but not limited to: 10

1‐5‐14(7)(A) (A) Parent company allocations 10

1‐5‐14(7)(B) (B) Direct charges 10


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1‐5‐15

Working Papers; cost of service study;

determination of revenue requirement by

customer class

11

1‐5‐15(a)

An electing utility shall submit a jurisdictional

separation study, if applicable, and a class cost of

service study to the commission, OUCC, and any

party to the proceeding

11

1‐5‐15(b) For an electing utility, the class of service shall

include the following information: 11

1‐5‐15(b)(1) (1) Allocation of rate base by rate class 11

1‐5‐15(b)(2) (2) Pro forma sales revenues at present rates by

rate class 11

1‐5‐15(b)(3) (3) Allocation of other operating revenues (or

miscellaneous revenue or other income) 11

1‐5‐15(b)(4) (4) Allocation of pro forma operating expenses by

(A) category or function; and (B) rate class 11

1‐5‐15(b)(5) (5) Rate of return by rate class at present rates 11

1‐5‐15(b)(6) (6) Revenues at equal rates of return by rate class

at present rates 11

1‐5‐15(b)(7) (7) Subsidy or excess at present rates by rate class 11

1‐5‐15(b)(8) (8) Revenues at equal rates of return by rate class

at proposed rates 11

1‐5‐15(b)(9) (9) The proposed dollar and percent subsidiary

or excess reduction by rate class 11

1‐5‐15(b)(10) (10) Revenues at proposed rates by rate class 11

1‐5‐15(e) Information submitted under this section shall: 11


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1‐5‐15(e)(1)

(1) be provided to the commission electronically

or through any other medium agreed to by the

commission; and

11

1‐5‐15(e)(2)

(2) include all formulas used in completing the

jurisdictional study and the class cost of service

study, which shall be confidential and protected

from disclosure to the public under IC 5‐14‐3‐4 and

IC 8‐1‐2‐29.

11

1‐5‐15(f)

If impossible or impractical for an electing utility to

provide information in the form described in

subsection (e), the electing utility shall make

available to the commission during normal business

hours, on the electing utilityʹs premises, a computer

and all software used to create and store the

information.

11

1‐5‐15(g)

The electing utility shall provide the information

submitted to the commission under this section, in

the form described in subsection (e), to any other

party to the proceeding if the other party and the

electing utility enter into a mutually acceptable

confidentiality agreement covering the information.

11

1‐5‐15(h)

If any party receiving information under to

subsection (g) wishes to propose data and

methodologies for use in the electing utilityʹs

jurisdictional separation study or cost of service

study, the party shall provide the information to

the following:

11

1‐5‐15(h)(1) (1) the commission in the form described in

subsection (e); 11

1‐5‐15(h)(2) (2) Any other party to the proceeding that enters

into a mutually acceptable confidentiality agreement 11


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covering the information among the following: (A)

the party, (B) the electing utility, and (C) the

recipient of the information.


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1‐5‐16 Working papers; written testimony; rate design

and tariff filing requirements 12

1‐5‐16(a)

(a) An electing utility that proposes to modify

the underlying structure of its rates shall submit

the following to the commission, OUCC, and any

party to the proceeding:

12

1‐5‐16(a)(1)

(1) Direct written testimony (A) detailing the

reason for; and (B) indicating the methods used in

developing; the proposed rate structure

12

1‐5‐16(a)(1)(A) (A) detailing the reason for; and 12

1‐5‐16(a)(1)(B) (B) indicating the methods used in developing;

the proposed rate structure 12

1‐5‐16(a)(2)

(2) The Billing determinants and derived rates

used to produce requested revenue requirement for

each proposed charge in a rate schedule or rate

group

12

1‐5‐16(a)(3)

(3) Cost justification for the establishment of or

a change to any nonrecurring charges, including,

but not limited to the following:

12

1‐5‐16(a)(3)(A) (A) Insufficient funds check charge 12

1‐5‐16(a)(3)(B) (B) Reconnect charge 12

1‐5‐16(a)(3)(C) (C) Disconnect charge 12

1‐5‐16(a)(3)(D) (D) Recharge (establish or change account) 12

1‐5‐16(a)(3)(E) (E) Collection charge 12

1‐5‐16(a)(3)(F) (F) Testing charge 12

1‐5‐16(a)(3)(G) (G) Meter reading charge 12


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1‐5‐16(a)(3)(H) (H) Meter tampering charge; and 12

1‐5‐16(a)(3)(I) (I) Connection or tap fee 12

1‐5‐16(b)

An electing utility that proposes to modify its: (1)

terms and conditions of service, (2) rules, (3)

regulations, (4) rates, (5) charges, or (6) other tariff

provisions, shall submit a complete set of tariffs with

the commission

12

1‐5‐16(c)

Additions to the prior tariff shall be shown (1) in

bold type, or (2) underlined; Deletions from the

current tariff shall be shown by striking through the

text.

12

1‐5‐16(d)

An electing utility shall submit bill comparisons to

the commission showing monetary and percentage

changes for a typical residential bill that would

result from a requested change in rates and charges.

12

NIPSCO Submission of MSFRs

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