(or sketch) and single line diagram the additions or changes to be made.

(4) (1) Except as provided in subdivision (ii) of this subparagraph, if the rate schedule provides for an increased rate, then 60 days prior to the date that such changed rate is proposed to become effective the filing public utility shall submit a statement showing its cost of the service to be supplied under the new rate schedule according to supporting statements A through O as described below. Simultaneously, the public utility shall submit the material on sales and revenues described in paragraph (a) of this section and, unless the rate schedule containing the proposed increased rate is likewise simultaneously filed, a summary statement of such proposed increased rate: Provided, however, That the submittal of such summary statement of the rate schedule shall not be in lieu of the rate schedule as required to be filed with the Commission pursuant to the regulations in this part.

(ii) No cost of service data shall be required in cases where the application of the proposed change in rate schedule effects rate increases of less than $50,000 annually resulting from, but incidental to, changes such as a rate design, delivery points and delivery voltage. Specifically designed rate increases of less than $50,000 annually (as opposed to incidental increases), increases resulting from changes made in fuel clauses, and increases of rates comprising an integral part of coordination and interchange arrangements in the nature of power pooling transactions, shall be supported by cost data as identified in § 35.12(b) (2).

(iii) The statement of the cost of service should contain an analysis of system costs for a test period of twelve consecutive months including return, taxes, depreciation, and operating expenses, and an allocation of such costs to the services rendered. The information submitted with the statement shall show the data itemized below for the test period, together with any significant changes in facilities, operations, or costs experience during that period, or which are known and are measurable with reasonable accuracy at the time of the filing, and which will become effective within eight months of the last month of available actual experience. Pursuant to application of the filing public utility made at the time of filing of a rate schedule, the Secretary may allow deviations from the data herein required.

(iv) The statement of cost of service shall include an attestation by the chief accounting officer or other authorized accounting representative of the filing public utility that the cost statements and supporting data submitted as a part of the filing which purport to reflect the books of the public utility do, in fact, set forth the results shown by such books. Following is a description of statements A through O required to be filed pursuant to this subparagraph.

Statement A-Balance sheet. Balance sheets in the form prescribed by the Commission's Uniform System of Accounts for Public Utilities and Licenses as of the beginning and the end of the test period, and the most recently available balance sheet, including therein the footnotes, if any, applicable thereto.

Statement B-Income statements. Income statements in the form prescribed by the Commission's Uniform System of Accounts for Public Utilities and Licensees for the test period, and the most recently available income statement, including therein footnotes, if any, applicable thereto.

Statement C-Earned surplus statement. Earned surplus statements for the test period, showing debits and credits according to descriptive captions, the balance as of the beginning and the end of the test period, and the most recently available earned surplus statement, including therein the footnotes, if any, applicable thereto.

Statement D-Cost of plant. A statement of the cost of plant by functional classification as of the beginning and the end of the test period.

Statement E-Accumulated depreciation. A statement of the accumulated provision for depreciation by functional classification as of the beginning and the end of the test period.

Statement F-Average working capital. A statement, by components, of the claimed working capital using averages of the amounts as of the beginning and the end of each month of the test period.

Statement G-Rate of return. Show the percentage rate of return claimed, with a brief statement of the basis therefor. Additionally, the following data should be furnished:

2 Functional classification refers to the classification as among production, transmission, distribution, and general functions. 3 Where fifty percent or more of the common stock of the public utility is not held by the public but is owned by another corporation, the information required by this section in respect of debt capital and preferred stock capital shall be submitted to the extent applicable, and in addition the data described shall be submitted with respect to the debt, preferred stock and common stock of the parent company.

of service, the cost of service related to such special facilities.

(2) Computations showing the energy responsibility of the service, based upon considerations of energy sales under the proposed rate schedules and the kwh delivered from the filing public utility's supply system.

(3) Computations showing the demand responsibility of the service, based upon considerations of the monthly maximum demands supplied from the seller's system, the maximum demands of the service under the proposed rate schedules, and the demands of the service at the time of the maximum system demand. Such non-coincident and coIncident demand data, including date and hour for the system and for the service, should be shown for each month of the test period together with a statement explaining how the demand ratio used in the filing party's cost study was derived.

(4) Estimated peak hour and annual energy losses applicable to sales under the proposed rate schedule expressed as a percentage of system output.

Statement N—Comparison of cost of service. For the test period compare the allocated cost of service shown in Statement L above with revenues under the proposed rates. If the amount of revenue under the proposed new rates differs significantly from allocated cost of service including allowances for claimed return and income taxes, the filIng public utility shall show the amounts available for return and taxes on income, and shall show return expressed as a percentage of rate base allocated to the service concerned.

(1) In the event the filing public utility considers certain special facilities as being devoted entirely to the service involved, it shall show, in addition to the over-all cost of service, the cost of service related to such special facilities.

Statement O-Fuel cost adjustment factor. If the rate schedule embodies a fuel clause, show the derivation of the fuel cost adjustment factor as stated therein.

Statement P-Price stabilization exhibit. (a) All applications for rate increases shall be accompanied by a special Price Stabilization Exhibit. This exhibit shall contain by cross reference or otherwise all of the necessary information by the applicant to demonstrate that the applicant's filing is in compliance with the intent and purposes of the Economic Stabilization Act of 1970, as amended, Executive Orders Nos. 11615, 11627, 11640 and with the criteria as hereinafter set out in (b), except as provided in (c), (d), (e), and (f).

(b) These criteria are as follows:

(1) The increase is cost justified and does not reflect future inflationary expectations.

(2) The increase is the minimum required to assure continued, adequate, and safe service or to provide for necessary expansion to meet future requirements.

(3) The increase will achieve the minimum rate of return needed to attract capital at reasonable costs and will not impair the credit of the applicant.

(4) The increase does not reflect labor costs increases in excess of 5.5 percent per annum, unless the increase is required by a contract which becomes binding before November 8, 1972, or unless not allowing the excess cost would work an undue hardship on the employer.

(c) Whenever an applicant is of the opinion that a requested increase is in conformity with the Economic Stabilization Program even though any or all of the criteria in (b) are not met, the exhibit shall:

(1) Set forth the criteria in (b) to the extent possible,

(2) Contain a statement by the applicant justifying its position that the requested increase is in conformity with the goals of the Economic Stabilization Program.

(d) Justification for price increases in conformity with the above criteria shall not be required for price increases resulting from the pass-through of special allowable costs including taxes (except income tax), purchases gas costs, and fuel cost. However, the criteria shall apply to labor cost unless otherwise specified by this Commission.

(e) The requirements for this exhibit shall not apply to any applicant's price where the rate base-cost of service criteria are not the basis for assessing a price increase under the terms of the Federal Power Act and rules, regulations, and orders promulgated thereunder.

(v) To the extent that testimony and exhibits required to be filed pursuant to subparagraph (5) of this paragraph duplicate information required to be submitted pursuant to this subparagraph, such information need only be submitted with the testimony and exhibits filed pursuant to subparagraph (5) of this paragraph.

(5) (i) A utility filing for an increase in rates and charges shall be prepared to go forward at a hearing on reasonable notice on the data which have been submitted and sustain the burden of proof, imposed by the Federal Power Act, of establishing that its proposed charges are just and reasonable and not unduly discriminatory or preferential or otherwise unlawful within the meaning of the Act. The Commission is desirous of avoiding delay in processing rate filings. To this end, if the rate schedule provides for an increase in rate which exceeds $30,000 in revenues for the test period, the filing utility shall submit with its rate increase filing 60 days prior to the proposed effective date of such increased

rates, testimony and exhibits of such composition, scope and format that they would serve as the company's case-inchief in the event the matter is set for hearing. In addition to whatever material the utility chooses to submit as part of its case, except for increases resulting from changes made in fuel clauses and increases of rates comprising an integral part of coordination and interchange arrangements in the nature of power pooling transactions, the exhibits shall include full cost of service data, as identified in subparagraph (4) (iv) of this paragraph, statements A through O, and the accompanying testimony should include an explanation of these exhibits.

(c) If a rate schedule required to be on file with this Commission is not required to be supported by cost of service data as set forth in this section but such data may be needed for Commission analysis, these regulations contemplate that each filing public utility may be required, by letter of the Secretary, to submit specified cost data.

(d) Filing public utilities in completing the supporting cost of service data herein required should be guided by applicable Commission precedents and policy statements considered in the light of their respective operating conditions and sales and services subject to this Commission's regulatory jurisdiction. [Order 271, 28 FR. 10573, Oct. 2, 1963, as amended at 28 F.R. 11404, Oct. 24, 1963; Order 429, 36 F.R. 6564, Apr. 7, 1971; Order 451-A, 37 F.R. 12064, June 17, 1972]

OTHER FILING REQUIREMENTS

§ 35.14 Fuel cost adjustment clauses.

(a) Fuel adjustment clauses which are not in conformity with the principles set out below are not in the public interest. These regulations contemplate that the filing of proposed rate schedules which embody fuel clauses failing to conform to the following principles may result in suspension of those parts of such rate schedules:

(1) It shall be the intent of the fuel clause to reflect changes in the fuel component (and fuel only) per kilowatt hour of delivered energy cost. Where the adjustment does not automatically reflect changes in the system heat rate, the public utility shall make appropriate amendments as significant changes occur in system operations, and at least every five years, and such amendments shall be filed with the Commission in accordance with § 35.13.

(2) The base cost of fuel, which cost shall include no items other than those in Account 151, of the Commission's Uniform System of Accounts for Public Utilities and Licensees, shall be stated in cents per million B.t.u.

(3) The fuel adjustment shall apply only to that energy supplied from fossil fuel generation.

(b) Any change in the fuel adjustment factor or in the base cost of fuel shall be submitted with supporting data as a filed rate change.

[Order 271, 28 F.R. 10573, Oct. 2, 1963, as amended by Order 421, 36 F.R. 3047, Feb. 17, 1971]

§ 35.15 Notices of cancellation or termination.

When a rate schedule or part thereof required to be on file with the Commission is proposed to be cancelled or is to terminate by its own terms and no new rate schedule or part thereof is to be filed in its place, each party required to file the schedule shall notify the Commission of the proposed cancellation or termination on the form indicated in § 131.53 of this chapter at least thirty days but not more than ninety days prior to the date such cancellation or termination is proposed to take effect. A copy of such notice to the Commission shall be duly posted. With such notice each filing party shall submit a statement giving the reasons for the proposed cancellation or termination, and a list of the affected purchasers to whom the notice has been mailed. For good cause shown, the Commission may by order provide that the notice of cancellation or termination shall be effective as of a date prior to the date of filing or prior to the date the filing would become effective in accordance with these rules.

§ 35.16 Notice of succession.

Whenever the name of a public utility is changed, or its operating control is transferred to another public utility in whole or in part, or a receiver or trustee is appointed to operate any public utility, the exact name of the public utility, receiver, or trustee which will operate the property thereafter shall be filed within 30 days thereafter with the Commission on the form indicated in § 131.51 of this chapter.

§ 35.17 Changes relating to suspended rate schedules or parts thereof.*

(a) Withdrawal of suspended rate schedules or parts thereof. Where a rate schedule or part thereof has been suspended by the Commission, it may be withdrawn during the period of suspension only by special permission of the Commission granted upon application therefor and for good cause shown. If permitted to be withdrawn, any such rate schedule may be refiled with the Commission within a one-year period thereafter only with special permission of the Commission for good cause shown. (b) Changes in suspended rate schedules or parts thereof. A public utility may not, within the period of suspension, file any change in a rate schedule or part thereof which has been suspended by order of the Commission except by special permission of the Commission granted upon application therefor and for good cause shown.

(c) Changes in rate schedules or parts thereof continued in effect and which were proposed to be changed by the suspended filing. A public utility may not, within the period of suspension, file any change in a rate schedule or part thereof continued in effect by operation of an order of suspension and which was proposed to be changed by the suspended filing, except by special permission of the Commission granted upon application therefor and for good cause shown. § 35.18

Rates established by order of the Commission. Every rate schedule filed to make effective the rates, charges, classifications or services, or any rule, regulation, practice or contract relating thereto, established in conformity with an order of the Commission shall bear the following additional notation on the title page:

Filed in Compliance with an Order of the Federal Power Commission Docket No. Entered Day of

cific reference thereto may be made in lieu of re-submission in response to the requirements of this part.

§ 35.19a Refund requirements under suspension orders.

Unless otherwise ordered by the Commission, the public utility whose proposed increased rates or charges were suspended shall refund at such times and in such amounts to the person entitled thereto, and in such manner as may be required by final order of the Commission in the suspension proceeding, the portion of the increased rates or charges found by the Commission in that proceeding not justified, together with interest at the rate of 7 percent per annum from the date of payment until refunded; shall bear all costs of such refunding; shall keep accurate accounts in detail of all amounts received by reason of the increased rates or charges which become effective after the suspension period, for each billing period, specifying by whom and in whose behalf such amounts were paid; and shall report (original and one copy) in writing and under oath, to the Commission monthly, for each billing period, and for each purchaser the billing determinants of electric energy sold and delivered to such purchasers under the suspended agreements or tariffs and the revenues resulting therefrom as computed under the rates in effect immediately prior to the date the proposed increased rates or charges become effective, and under the proposed increased rates or charges that become effective after the suspension period, together with the differences in the revenues so computed.

[Order 442, 36 F.R. 23524, Dec. 10, 1971] § 35.20 Filing of rate schedules, notices, etc., by persons authorized to transmit electric energy from the United States to a foreign country.

Persons authorized to transmit electric energy from the United States to a foreign country and required by the provisions of § 32.38 of this chapter, to file all rate schedules, supplements, notices of succession in ownership or operation, notices of cancellation, and certificates of concurrence with respect to such energy shall do so in the form and manner specified in § 35.1 through 35.16 as applicable to public utilities.