KRS 278.2205: Cost allocation manual for nonregulated activity -- Contents --

Maintenance.

(1) Any utility that engages in a nonregulated activity whose revenue exceeds the

amount provided for incidental nonregulated activities under KRS 278.2203(4)(a),

shall deve lop and maintain a CAM as described in subsections (2) to (5) of this

section.

(2) A CAM shall contain the following information for a utility's jurisdictional

operations in the Commonwealth:

(a) A list of regulated and nonregulated divisions within the utility;

(b) A list of all regulated and nonregulated affiliates of the utility to which the

utility provides services or products and where the affiliates provide

nonregulated activities as defined in KRS 278.010(21);

(c) A list of services and products provided by the utility, an identification of each

as regulated or nonregulated, and the cost allocation method generally

applicable to each category;

(d) A list of incidental, nonregulated activities that are subject to the provisions of

KRS 278.2203(4);

(e) A description of the nature of transactions between the utility and the affiliate;

and

(f) For each USoA account and subaccount, a report that identifies whether the

account contains costs attributable to regulated operations and nonregulated

operations. The report shall also identify whether the costs are joint costs that

cannot be directly identified. A description of the methodology used to

apportion each of these cost shall be included and the allocation methodology

shall be consistent with the provisions of KRS 278.2203.

(3) Within two hundred seventy (270) days of July 14, 2000, the utility shall file:

(a) A statement with the commission that certifies the CAM has been developed

and will be adopted by the management, effective with the beginning of th e

next calendar year. The statement shall be signed by an officer of the utility;

and

(b) One (1) copy of the CAM.

(4) Within sixty (60) days of any material change in matters required to be listed in the

CAM, the utility shall amend the CAM to reflect the change.

(5) The CAM shall be available for public inspection at the utility and at the

commission.

(6) The CAM shall be filed as part of the initial filing requirement in a proceeding

involving an application for an adjustment in rates pursuant to KRS 278.190.