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of subpart B of these regulations. The Commission may take any of the following actions:

(1) Confirm and approve the rate schedules for the period beginning with the date such rates where placed in effect on an interim basis or the effective date requested in the application to the expiration date requested in the application but not to exceed a five-year period, or for such lesser period, as the Commission deems appropriate;

(2) Remand the filing for further development of the record to support the filed rate schedules;

(3) Order an evidentiary hearing if there are questions of fact which can not be resolved from the record or through staff evaluation;

(4) Disapprove the filed rates; or (5) Take such other action that the Commission considers appropriate.

(f) Procedures upon disapproval. If the Commission disapproves the rates, the Administrator will be provided a 120day period, or other period as the Commission may deem appropriate, to prepare substitute rates that resolve the Commission's concerns. If the filed rates have been approved on an interim basis, the rates will continue in effect on an interim basis until the Commission takes final action.

(g) Refund and interest-(1) Refund. If a rate collected by any power marketing administration on an interim basis exceeds the rate which is confirmed and approved by the Commission as a final rate, the Administrator, pursuant to any conditions established by the Commission, must refund with interest any portion of the rate increase collected during the interim period which exceeds the final rate. The Administrator may make refunds by means of a net energy billing which reflects the value of any overcharge or other appropriate methods.

(2) Interest. Except as otherwise provided by the Commission, the Administrator must compute any amount of interest based on the revenues collected subject to refund and required to be refunded under this paragraph by using:

(i) With respect to the rates of the Bonneville Power Adminstration, the rate of interest or a weighted average of all rates of interest charged to the Bonneville Power Administration by

the U.S. Treasury during the period for which the computation is made;

(ii) With respect to the rates of other Power Marketing Administrations, the rates of interest computed in accordance with the formula contained in DOE Order No. RA 6120.2, available from the Department of Energy (Office of Power Marketing Coordination) and the Power Marketing Administrations.

(h) Notice of action on final approval. The Commission's Secretary will publish in the FEDERAL REGISTER a notice of any action taken under paragraph (e) of this section and will mail the notice to the persons on the Commission's service list.

[Order 382, 49 FR 25235, June 20, 1984, as amended by Order 323-B, 52 FR 20709, June 3, 1987]

PART 301-AVERAGE SYSTEM COST METHODOLOGY FOR SALES FROM UTILITIES TO BONNEVILLE POWER ADMINISTRATION UNDER NORTHWEST POWER ACT

AUTHORITY: Pacific Northwest Electric Power Planning and Conservation Act, 16 U.S.C. 839 839h.

§ 301.1 Average system cost methodology.

(a) Applicability. This section applies to the sales of electric power by any public utility to the Bonneville Power Administration pursuant to section 5(c) of the Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act), 16 U.S.C. 839– 839h.

(b) Definitions. For purposes of this section the following definitions apply:

(1) Average system cost (ASC) means for each jurisdiction and each exchange period the quotient obtained by dividing Contract Systems Costs by Contract System Load.

(2) Contract system costs means the Utility's Costs for production and transmission resources, including power purchases and conservation measures, which Costs are includable in, jurisdictionally allocated by, and subject to the provisions of Appendix 1. Contract System Costs do not include Costs excluded from ASC by section 5(c)(7) of the Northwest Power Act.

(3) Contract system load means the firm energy load used by the State Commission for the purpose of establishing retail rates, adjusted pursuant to the Average System Cost Methodology rule.

(4) Costs means the aggregate dollar amount or any portion of the amount allowed or relied upon by the State Commission to determine the test period revenue requirement for the Utility in a Jurisdiction.

(5) Exchange period means the period of time during which a Utility's jurisdictional retail rate schedules are in effect, commencing with the effective date of these schedules and ending with the effective date of new retail rate schedules in the Jurisdiction; provided that no Exchange Period shall commence prior to or extend beyond the term of the Utility's Residential Purchase and Sales Agreement. For the purposes of any initial Appendix 1 filing, the Exchange Period shall commence on the date such Appendix 1 is filed and end with the effective date of the next retail rate change.

(6) Jurisdiction means the service territory of the exchanging Utility within which a State Commission has authority to approve the retail rates.

(7) New large single load means that load defined in section 3(13) of the Northwest Power Act, and as determined by BPA as specified in power sales contracts with its customers.

(8) Regional power sales customer means any entity that contracts directly with BPA for the purchase of power delivery in the region as defined by section 3(14) of the Northwest Power Act.

(9) Test period means the time period (not less than 12 months) used by the State Commission to determine Cost for retail ratemaking.

(10) State Commission means a State regulatory body, preference utility governing body, or other entity authorized to establish retail electric rates in a Jurisdiction.

(11) File or filed means that the Appendix 1 has been:

(1) Hand delivered to the Division of Financial Requirements; Bonneville Power Administration; Portland, Oregon; or

(ii) Mailed to BPA by certified mail, return receipt requested, to the following address:

Bonneville Power Administration, Division of Financial Requirements, Routing: DN, P.O. Box 3621, Portland, Oregon 97208

and has been received by BPA. An Appendix 1 shall be considered to be filed as of the date of the postmark on the certified mailing.

(12) Review period means that period of time during which a Utility's Appendix 1 is under review by the Administrator. The review period begins when an Appendix 1 is filed and ends two hundred and ten (210) days after the Utility filed its Appendix 1.

(c) Phase-in. For the period beginning with the effective date of this rule and ending June 30, 1985, a utility's ASC will be the average of the ASC in effect on July 1, 1984 and the ASC calculated under this section. Beginning July 1, 1985, each utility's ASC will be calculated exclusively under this section. (d) Filing procedures. The procedures established by the Administrator provide the filing requirements for all utilities that file an Appendix 1.

(1) Appendix 1 is a form that identifies Contract System Costs and Contract System Load and permits the calculation of ASC.

(2) For each Exchange Period and for each regional Jurisdiction in which a Utility provides service, the Utility shall complete and file three copies of Appendix 1, in accordance with the Administrator's procedures and §35.30 of this chapter.

APPENDIX I TO § 301.1—AVERAGE
SYSTEMS COST METHODOLOGY

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Schedule 3-Expenses

Schedule 4-Average System Cost

The filing Utility shall reference and attach workpapers that support Costs, including details of allocation

functionalization.

and

All references to the Commission accounts are to the Commission Uniform System of Accounts as of July 1, 1984. The Costs includable in the attached schedules are those includable by reason of the definitions in the Commission accounts. If the Commission accounts are later revised or renumbered, any changes shall be incorporated into this form by reference, except to the extent that BPA determines that a particular change results in a change in the type of Costs allowable for exchange purposes. If the Utility does not follow the Commission accounts, its filing must include a reconciliation between its accounts and the items allowed as Contract System Costs.

BPA may require the Utility to account for purchased power transactions with affiliated entities as though the affiliated entities were owned in whole or in part by the Utility, if necessary to properly determine and/ or functionalize the Utility's Costs.

A utility operating in more than one Jurisdiction shall allocate its total system Costs among Jurisdictions in accord with the same allocation methods and procedures used by the State Commission to establish jurisdictional Costs and resulting revenue requirements. Appendix 1 shall include details of the allocation. This allocation also accomplishes the exclusion of the Costs of additional resources to meet loads outside the region, as required by section 5(c)(7) of the Northwest Power Act.

All schedule entries and supporting data shall be in accord with generally accepted accounting principles and practices as these principles and practices apply to the electric utility industry.

SCHEDULE 1-BONNEVILLE POWER ADMINISTRATION, RESIDENTIAL PURCHASE AND SALE
AGREEMENT-AVERAGE SYSTEM COST METHODOLOGY TEST PERIOD
[Plant investment rate base/rate of return (thousands)]

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SCHEDULE 2-BONNEVILLE POWER ADMINISTRATION, RESIDENTIAL PURCHASE AND SALE
AGREEMENT― AVERAGE SYSTEM COST METHODOLOGY, TEST PERIOD

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SCHEDULE 3-BONNEVILLE POWER ADMINISTRATION, RESIDENTIAL PURCHASE AND SALE
AGREEMENT-AVERAGE SYSTEM COST METHODOLOGY TEST PERIOD

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SCHEDULE 3-BONNEVILLE POWER ADMINISTRATION, RESIDENTIAL PURCHASE AND SALE
AGREEMENT-AVERAGE SYSTEM COST METHODOLOGY TEST PERIOD-Continued

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SCHEDULE 3A-BONNEVILLE POWER ADMINISTRATION, RESIDENTIAL PURCHASE AND SALE AGREEMENT-AVERAGE SYSTEM COST METHODOLOGY TEST PERIOD

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179-058 0-98--24

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