Section 15-3904. COST ALLOCATION AND ACCOUNTING

 

3904.1 Within four (4) months of the close of the energy utility’s fiscal year, an energy utility must file annually a Cost Allocation Manual (“CAM”) with the Commission explaining how it will allocate and account for shared services between the energy utility and any affiliate. 

3904.2The CAM must include the following:

 

(a) An explanation of the corporate organization;

 

(b) A description of each corporate entity, including location, list of officers and the statement of the business of each entity;

 

(c)A listing of each type of cost which is allocated or charged direct between entities and the factor(s) which is (are) used in the allocation;

 

(d)An explanation and calculation of each of the cost allocation factors used for transfers between and among corporate entities; and

 

(e)A listing of the total amount of each cost allocated or charged direct between or among corporate entities during the annual period. 

 

3904.3When changes occur to the CAM prior to the next annual filing period, the energy utility must file amendment(s) to the CAM within thirty (30) days from the effective date of the change.

 

3904.4An affiliate and an energy utility must maintain such separate books and records as required by the Public Utility Holding Company Act of 2005 (“PUHCA 2005”) and the Commission and, upon written request by the Commission, provide timely access to the books and records. 

 

3904.5 The energy utility and all affiliates to or from which assets included in rate base have been transferred by or to the energy utility and all affiliates that provide services to, or share costs with, the energy utility through any allocation method, must make available for inspection and review by the Commission books relating to the foregoing pursuant to PUHCA 2005 so that the Commission may determine compliance with the Code of Conduct. Books shall be maintained for inspection and review for at least five (5) calendar years. 

 

3904.6Biennially, the energy utility shall cause a limited engagement report to be prepared by an independent accountant of its books and the books of any affiliate that has entered into a transaction with the energy utility within the period of the limited engagement review to ensure compliance with the Commission’s Code of Conduct.  The energy utility shall select an independent accountant and shall seek approval by the Commission of the selection at least sixty (60) days prior to the beginning of the limited engagement review.

 

authority

The Public Service Commission of the District of Columbia (Commission), pursuant to its authority under D.C. Code § 34-301 (2010 Supp.) and D.C. Code §§ 34-802 and 34-1513(c) (2001).

source

Notice of Final Rulemaking published at 58 DCR 1109, 1113 (February 4, 2011).