APPENDIX A. SCHEDULES REQUIRED FOR A STREAMLINED OR GENERAL RATE APPLICATION

Schedule Number	Streamlined Rate Proceeding Schedules
1	Comparative Balance Sheets
2	Comparative Income Statements
3	Financial Status Statement
4A and B	Detail of Ratemaking Adjustments
5A and B	Proposed Rates and Tariffs and Revenue Allocation
6	Sample Billing
7	Class Cost of Service Study
8	Capital Structure
9	Affiliate Services

Schedule Number	General Rate Proceeding Schedules
1	Comparative Balance Sheets
2	Comparative Income Statements
3	Financial Status Statement
4A and B	Detail of Ratemaking Adjustments
4A 5A and B	Proposed Rates and Tariffs and Revenue Allocation
6	Sample Billing
7	Class Cost of Service Study
8	Capital Structure
9	Affiliate Services
10	Net Original Cost Rate Base
11	Working Papers for Ratemaking Adjustments
12	Revenue and Expense Variance Analysis
13	Jurisdictional Allocation
14A, B, and C	Reserved for Additional Exhibits Functional Unbundling
15	Reserved for Additional Exhibits

Schedule 1 — Comparative Balance Sheets

Instructions: Provide a publicly available comparative balance sheet for the test period and the corresponding 12-month period immediately preceding the test period for the applicant.

Schedule 2 — Comparative Income Statements

Instructions: Provide a publicly available comparative income statement covering the test period and 12-month period immediately preceding the test period for the applicant.

Schedule 3 — Financial Status Statement

Instructions: Use the format of the schedule identified as Schedule 3 in this Appendix.

Adjustments in Column (2) reflect any financial differences between Generally Accepted Accounting Principles (GAAP) and ratemaking accounting as prescribed by the State Corporation Commission. An example of such an adjustment would include, but would not be limited to, the reclassification of capital leases to operating leases. Each Column (2) adjustment shall be separately identified and shown using the format prescribed for Schedule 4A and 4B.

Column (4) shall reflect total nonjurisdictional operations. Jurisdictional allocation factors used to determine nonjurisdictional business in Column (4) amounts shall be fully supported and explained in Schedule 13 for general rate filings.

Each Column (6) adjustment shall be separately identified and shown in Schedule 4A and 4B. In a streamlined rate proceeding, adjustments reflected in Column (6) of Schedule 3 which do not incorporate ratemaking treatment approved by the commission in the utility's last general rate case shall be identified as new proposed adjustments in Schedule 4A and 4B.

Riders reflected on line 4 shall be separately listed to include a line for each rider in effect during the test year or projected for the rate year. The amount of other income and other expense shown in Column (5), lines 20 and 23, shall be the current amount recognized as jurisdictional in the applicant's last general rate case. Amounts reflected on line 33 shall be actual cash receipts.

Lines (29), (30), (31), and (32) shall be based on the following definitions:

Line 29.
TIER =	Total Margins (Line 24) + Interest on Long-Term Debt (Line 21)
	Interest on Long-Term Debt (Line 21)

Line 30.
DSC =	Total Margins (Line 24) + Depreciation and Amortization Expense (Line 11) + Interest on Long-Term Debt (Line 21)
	Total Principal Payments + Total Long-Term Interest Payments

Line 31.
Rate of Return on Rate Base =	Operating Margins Adj. (Line 18)
	Total Rate Base (Line 28)

Line 32.
Rate of Return on Margins and Equities =	Total Margins (Line 24)
	Total Margins and Equity Capitalization (Schedule 8)

Schedules 4A and 4B — Detail of Ratemaking Adjustments

Instructions: Use format of the schedule identified as Schedule 4A and 4B to this Appendix.

Each adjustment shall be numbered sequentially and listed under the appropriate description category (Base Rate Revenue, Fuel-WPCA Revenue, Purchased Power, etc.). The impact on cost of service from each adjustment shall be detailed in Columns (1) through (16).

Each ratemaking adjustment shall be fully explained in a supporting subschedule 4B to this schedule.

Detailed workpapers substantiating each adjustment shall be provided in Schedule 11 for general rate filings.

Schedule 5A and 5B — Proposed Rates and Tariffs, and Revenue Allocation by Class

Schedule 5A Instructions:

Provide a copy of each tariff sheet with the revisions the cooperative proposes to implement. For general rate applications, provide a copy of all tariffs and Terms and Conditions of Service Sheets proposed for revision containing the revised language.

Schedule 5B Instructions:

Provide a class revenue allocation analysis showing, by class, the present revenue recovered from each class, the proposed increase in revenue to be recovered from each class, the total proposed revenue to be recovered from each class, and the percentage of increase in total revenue to be recovered from each class.

Schedule 6 Sample Billing

Instructions: Provide a sample billing analysis showing the effect on customers of the proposed tariff changes at various levels of consumption, for all classes of service.

Schedule 7 — Class Cost of Service Study

Instructions:

A. Each streamlined rate application shall include a copy of the cost of service study used to determine the allocation of revenues to each class. The cost of service study shall be based on per books data which is no more than five years old. Each general filing shall include a copy of the cost of service study used to allocate the increase or to adjust rate design. The data used in a cost of service study submitted in a general rate case shall use the same test period as used in the cooperative's general rate application.

B. Each cost of service study shall consist of the following schedules:

1. For multi-state cooperatives, provide total system rate base, revenue and operation and maintenance expenses by account number, or major account group showing separation between Virginia and nonjurisdictional operations.

2. Provide a jurisdictional financial status statement in the format of Schedule 3, column (5) of Appendix A for each customer class and the return provided by these classes.

3. For all service schedules, present the unit cost per kilowatt, kilowatt hour, and customer resulting from the cost study. Include the kilowatt hours, demand, and number of customers, as well as the total cost for each component by class and the allocated rate base by class, as support for the unit costs derived.

4. If directed by the commission, the cooperative shall collect and maintain separate expense, rate base, and revenue data on nonjurisdictional consumers within Virginia.

5. For all service classes, provide a schedule of consumers by service class indicating the total number of customers in the class and the number of nonjurisdictional consumers in Virginia in the class.

Nonjurisdictional consumers in Virginia include government agencies: federal, state, local, and regional government authorities. If there are nonjurisdictional consumers in any class, this schedule must be accompanied by a list of all such nonjurisdictional consumers by service class and their usage characteristics.

6. Provide a short narrative describing the cost of service study methodology employed. This narrative shall include the following information:

(a) Identification and description of the classification used to assign rate base as demand, energy, or customer related. Specifically, include the classification methodology used to differentiate between demand and customer components of distribution plant; and the customer classification used in the study, i.e., minimum system, minimum size, zero intercept, etc.

(b) Identification of the allocation methodology used for assigning rate base, revenue, and expenses to customer classes. For demand allocation method, e.g., average and excess, noncoincident peak; customer allocation method, e.g., number of customers, weighted customers, etc.

(c) Provide a table showing the kilowatts, kilowatt hours, number of customers allocated to each class, including the derivation of the demand, energy, and customer allocators for each class.

7. Provide a list of classification and allocation factors used.

8. Provide a copy of the actual study by account or primary account. The primary accounts shall identify the secondary accounts included by account number. Indicate which allocators and classifiers were used to assign each account.

Schedule 8 — Capital Structure and Cost of Debt Statement and Supporting Schedules

Instructions: Use the format of the schedule identified as Schedule 8 in this Appendix.

Column (1) shall reflect the per books capital structure at the end of the test year. Data in Column (1) shall be compatible with the applicant's publicly available financial statements. Adjustments in Column (3) reflect any financial differences between Generally Accepted Accounting Principles and ratemaking accounting as prescribed by the commission. Each Column (3) adjustment shall be separately identified in a supporting schedule, if not already identified in Schedule 4A or 4B.

Schedules shall be provided to support the amounts and cost rates of short- and long-term debt in Columns (4) and (6), respectively, and the adjusted amounts and cost rates in Columns (8) and (10), respectively. Each issue of long-term debt shall be listed with its corresponding interest rate, date of issue, maturity, and lending institution(s) or other source(s). Short-term debt shall be listed with a high, low, ending, and average balance for each month, a weighted average interest rate for each month, and the name of the lending institution(s) or other source(s).

Schedule 9 — Affiliate Services

Instructions: For purposes of this schedule, affiliate services shall be defined to include those services between regulated and competitive divisions of an incumbent utility. If any portion of the required information has been filed with the commission as part of an applicant's Annual Report of Affiliate Transactions, the applicant may reference such report clearly identifying what portions of the required information are included in the Annual Report of Affiliate Transactions.

Provide a narrative description of each type of affiliated service received or provided during the test period.

Provide a summary of affiliate transactions detailing costs by function for each month of the test period. Show the final Uniform System of Account distribution of all costs billed to or by the regulated entity by month for the test period.

Identify all amounts billed to an affiliate and then billed back to the regulated entity.

Cost records and market analyses supporting all affiliated charges billed to or by the regulated entity/division shall be maintained and made readily available for commission staff review. This shall include supporting detail of costs (including the return component) incurred by the affiliated interest rendering the service and the allocation methodology. In situations when the pricing is required to be the higher (lower) of cost or market and market is unavailable, note each such transactions and have data supporting such a finding available for commission staff review.

If affiliate charges are booked per a pricing mechanism other than that approved by the commission for ratemaking purposes, the regulated entity shall provide a reconciliation of books to commission-approved pricing, including an explanation of why the commission-approved pricing is not used for booking purposes.

Schedule 10 — Net Original Cost Rate Base

Instructions: Use the format of the schedule identified as Schedule 10 in this Appendix.

Adjustments in Column (2) reflect any financial differences between GAAP and ratemaking accounting as prescribed by the State Corporation Commission. Each Column (2) adjustment shall be separately identified and reflected using the format prescribed for Schedule 4A and 4B.

Column (4) shall reflect total nonjurisdictional business. Allocation factors used to determine nonjurisdictional business in Column (4) shall be fully supported in Schedule 13.

Each Column (6) adjustment shall be separately identified and reflected in Schedule 4A and 4B. In a streamlined rate proceeding, adjustments reflected in Column (6) of Schedule 3 which do not incorporate the ratemaking treatment approved by the commission in the utility's last general rate case shall be separately identified as new proposed adjustments in Schedule 4A and 4B.

Schedule 11 — Working Papers for Ratemaking Adjustments

Instructions: Provide detailed workpapers and supporting schedules of all proposed adjustments. Each supporting document shall identify the origin of the data shown. Also, indicate whether data is actual or estimated. Working papers shall be numbered, indexed and tabbed for each adjustment. Two copies shall be filed with the Division of Public Utility Accounting and Finance, and one copy of the working papers shall be filed with the Division of Energy Regulation.

Schedule 12 — Revenue and Expense Variance Analysis

Instructions: The cooperative shall quantify jurisdictional operating revenues and system operating and maintenance ("O&M") expenses by primary account during the test period and the preceding 12 months. Also, provide jurisdictional sales volumes by customer class for the test period and the preceding 12 months.

The cooperative shall provide a detailed explanation of all jurisdictional revenue and system expense increases and decreases of more than 10% during the test period compared to the previous 12-month period. The expense variance analysis applies to test period expense items greater than two-hundredths of 1.0% (.0002) of total O&M expenses for all cooperatives with total operating expenses exceeding $50 million, and five hundredths of 1.0% (.0005) of total operating expenses for cooperatives with total operating expenses below $50 million.

Schedule 13 — Jurisdictional Allocation

Instructions: Provide summary schedules by primary account reflecting all revenue, expense, and rate base items allocated to the Virginia jurisdiction. If directed by the commission, this schedule shall include allocations relating to nonjurisdictional Virginia consumers as well as out-of-state operations. Provide working papers to support all calculated amounts, including the development of allocation factors.

Provide a narrative explanation and justification of the allocation methodology used. Discuss any changes in the applicant's operations which materially affect any allocation factor.

Schedule 14 — Reserved for Additional Exhibits

This schedule is reserved for additional exhibits presented by the applicant and shall be labeled 14A et seq.

Schedule 14A, 14B, and 14C - Functional Unbundling

Instructions: Use the format of the schedule identified as Schedule 14A, 14B, and 14C in this Appendix.

Provide cost of service studies that identify the costs associated with the functional areas of generation (production), transmission, distribution, and other.

Provide cost breakouts for subcomponents of functional areas such as primary and secondary distribution, metering, billing, and maintenance. Report cost functions and subcomponents on summary sheets by both system and class.

Schedule 15 - Reserved for Additional Exhibits

This schedule is reserved for additional exhibits presented by the applicant and shall be labeled 15A et seq.

APPENDIX B. ELECTRIC UTILITY RESTRUCTURING ACT ADDENDUM FOR ELECTRIC COOPERATIVES

Schedule 15 — Balance Sheet—Projected

Instructions: Provide projected balance sheets for each calendar year through 2007. Projections should be consistent with amounts for Rural Utility Service (RUS) financing in RUS Form 325A. Other financial forecasts that extend through 2007 may be used if RUS projections cease to remain applicable. Any deviations from the assumption used for RUS Form 325A should be noted and fully explained.

Schedule 16 — Income Statements—Projected

Instructions: Provide projected income statements for each calendar year through 2007. Projections should be consistent with amounts for RUS financing in RUS Form 325A. Other financial forecasts that extend through 2007 may be used if RUS projections cease to remain applicable. Any deviations from the assumption used for RUS Form 325A should be noted and fully explained.

Schedule 17 — Capital Structure—Projected

Instructions: Provide Capital Structure and Cost of Debt Statements for each calendar year through 2007. Projections should be consistent with amounts for RUS financing in RUS Form 325A. Other financial forecasts that extend through 2007 may be used if RUS projections cease to remain applicable. Any deviations from the assumption used for RUS Form 325A should be noted and fully explained.

Schedule 18 — Detail of Restructuring Act Adjustments

Instructions: This schedule shall be filed in addition to Schedule 4.

Use format of the schedule identified as Schedule 4A and 4B to this Appendix.

Each adjustment shall be numbered sequentially and listed under the appropriate description category (operating revenues, interest expense, common equity capital, etc.).

Restructuring Act adjustments shall reflect an annual going-forward year level of revenues, expenses, and rate base consistent with § 56-582 of the Code of Virginia. Schedule 9 shall reflect these adjustments in two additional columns after Column (5). Column (6) shall be titled Restructuring Act Adjustments.

Provide an explanation why some costs (by function) remain at a test year level. Additionally, describe and detail how increases in productivity have been factored into each cost whether adjusted or remaining at a test year level.

Detailed workpapers substantiating each adjustment shall be provided in Schedule 19.

Schedule 19 — Workpapers for Restructuring Act Adjustments

Instructions: This schedule shall be filed in addition to Schedule 11.

Provide detailed workpapers and supporting schedules of earnings test as well as ratemaking adjustments. Each supporting document shall identify the origin of the data shown.

Include 10 years actual and budgeted historical data for each adjustment. For projected adjustment amount, identify budget information as preliminary or final. If preliminary, indicate when final budget is anticipated.

Include a narrative of budgeting methodology as well as any significant changes that have occurred during the 10 years.

Working papers shall be indexed and tabbed for each adjustment. Two copies shall be filed with the Division of Public Utility Accounting and one copy to the Division of Energy Regulation.

Schedule 20 — Functional Unbundling

Instructions: Use the format of the schedule identified as Schedule 20 in this Appendix.

Provide cost of service studies that identify the costs associated with the functional areas of generation (production), transmission, distribution and other.

Provide cost breakouts for subcomponents of functional areas such as primary and secondary distribution, metering, billing and maintenance. Report cost functions and subcomponents on summary sheets by both system and class.

										Schedule 3
FINANCIAL STATUS STATEMENT PER BOOKS AND FULLY ADJUSTED FOR THE 12-MONTHS ENDING __________, ___
			(Col. 1)	(Col. 2)	(Col. 3)	(Col. 4)	(Col. 5)	(Col. 6)	(Col. 7)	(Col. 8)	(Col. 9)
Line No.		Description	Total Coopera-tive Per Books	Adjust-ments Due to Rate-making Require-ments	Total Coopera-tive As Adjusted	Non-Virginia Juris-dictional Business	Virginia Juris-dictional Business	Rate-making Adjust-ments	Amounts After Adjust-ments	Rev-enue Require-ment	Amounts After Revenue Requirement
		Operating Revenues
1.		Base Rates
2.		Fuel - WPCA
3.		Roll in of Riders
4.		Riders (List Separately)
5.		Margin Stabilization
6.		Other Electric Revenues
7.		Total Operating Revenues
		Operating Expenses
8.		Purchased Power Expense
9.		Margin Stabilization
10.		Other Operation and Maintenance Expense
11.		Depreciation and Amortization
12.		Tax Expense - Property
13.		Tax Expense - Other
14.		Total Operating Expenses
15.		Operating Margins
16.		Less: Interest on Customer Deposits

(Col. 1)

(Col. 2)

(Col. 3)

(Col. 4)

(Col. 5)

(Col. 6)

(Col. 7)

(Col. 8)

(Col. 9)

Line No.

Description

Total Coopera-tive Per Books

Adjust-ments Due to Rate-making Require-ments

Total Coopera-tive As Adjusted

Non-Virginia Juris-dictional Business

Virginia Juris-dictional Business

Rate-making Adjust-ments

Amounts After Adjust-ments

Rev-enue Require-ment

Amounts After Revenue Require-ment

17.

Charitable and Educational Donations

18.

Operating Margins Adjusted

19.

Plus: Capital Credits Accrued

20.

Other Income

21.

Less: Interest on Long-Term Debt

22.

Other Interest Expense

23.

Other Expense

24.

Total Margins

Rate Base

25.

Net Utility Plant

26.

Allowance for Working Capital

27.

Other Rate Base Deductions

28.

Total Rate Base

29.

TIER

30.

DSC

31.

Rate of Return on Rate Base

32.

Rate of Return on Margins and Equities

33.

Capital Credits Received

									SCHEDULE 4A Page ___ of ___
DETAIL OF RATEMAKING ADJUSTMENTS
		(Col. 1)	(Col. 2)	(Col. 3)	(Col. 4)	(Col. 5)	(Col. 6)	(Col. 7)	(Col. 8)	(Col. 9)
Adj. No.	Description	Operating Revenues	Purchased Power Expenses	Margin Stabil.	Other O&M Expense	Depr. & Amort.	Tax Expense	Other	Operating Margins Adjusted	Accrued Capital Credit
	Base Rate Revenues
	Fuel - WPCA Revenue
	Rider Revenue
	Margin Stabilization
	Other Electric Revenues
	Purchased Power Exp.
	Margin Stabilization
	Other O&M Expense
	Depr. & Amort.
	Tax Expense - Property
	Tax Expense - Other
	Other
	Operating Margins Adjusted
	Capital Credits Accrued
	Other Income
	Interest on Long-Term Debt
	Other Interest Expense
	Other Expense
	Total Margins
	Net Utility Plant
	Allowance for Working Capital
	Other Rate Base Deductions
	Total Rate Base

		(Col. 10)	(Col. 11)	(Col. 12)	(Col. 13)	(Col.14)	(Col. 15)	(Col. 16)	(Col. 17)
Adj. No.	Description	Other Income	Interest on Long-Term Debt	Other Exp. (Incl. Int. Exp.)	Total Margins	Net Utility Plant	Allowance for Working Capital	Other Rate Base Deductions	Total Rate Base
	Base Rate Revenues
	Fuel - WPCA Revenue
	Rider Revenue
	Margin Stabilization
	Other Electric Revenues
	Purchased Power Exp.
	Margin Stabilization
	Other O&M Expense
	Depr. & Amort.
	Tax Expense - Property
	Tax Expense - Other
	Other
	Operating Margins Adjusted
	Capital Credits Accrued
	Other Income
	Interest on Long-Term Debt
	Other Interest Expense
	Other Expense
	Total Margins
	Net Utility Plant
	Allowance for Working Capital
	Other Rate Base Deductions
	Total Rate Base

		Schedule 4B Page ___ of ___
DETAIL OF RATEMAKING ADJUSTMENTS
Adj. No.	Description	Explanation of Adjustment
	Base Rate Revenues
	Fuel - WPCA Revenue
	Rider Revenue
	Margin Stabilization
	Other Electric Revenues
	Purchased Power Exp.
	Margin Stabilization
	Other O&M Expense
	Depr. & Amort.
	Tax Expense - Property
	Tax Expense - Other
	Other
	Operating Margins Adjusted
	Capital Credits Accrued
	Other Income
	Interest on Long-Term Debt
	Other Interest Expense
	Other Expense
	Total Margins
	Net Utility Plant
	Allowance for Working Capital
	Other Rate Base Deductions
	Total Rate Base

SCHEDULE 8

CAPITAL STRUCTURE AND COST OF DEBT STATEMENT PER BOOKS AND FULLY ADJUSTED For the 12-Months Ending __________, ___

(Col. 1)

(Col. 2)

(Col. 3)

(Col. 4)

(Col. 5)

(Col. 6)

(Col. 7)

(Col. 8)

(Col. 9)

(Col. 10)

Total Coope-rative Per Books

Percen-tage of Col. 1 Total

Adjust-ments Due to Rate-making Require-ments

Total Coope-rative As Adjus-ted

Percen-tage of Col. 4 Total

Cost of Col. 4 Debt

Rate-making Adjust-ments

Amount After Adjust-ments

Percen-tage of Col. 8 Total

Cost of Col. 8 Debt

1.

Short-Term Debt

2.

Long-Term Debt

3.

Total Margins and Equities

4.

Other

5.

Total Capital

6.

Principal Repay-ments

7.

Accumu-lated Capital Credits Accrued

8.

Accumu-lated Capital Credits Received

							Schedule 10
NET ORIGINAL COST RATE BASE PER BOOKS AND FULLY ADJUSTED For the Period Ending __________, ___
		(Col. 1)	(Col. 2)	(Col. 3)	(Col. 4)	(Col. 5)	(Col. 6)	(Col. 7)
Line No.	Description	Total Cooperative Per Books	Adjustments Due to Ratemaking Requirements	Total Cooperative As Adjusted	Non-Virginia Jurisdictional Business	Virginia Jurisdictional Business	Ratemaking Adjustments	Amounts After Adjustments
	Net Utility Plant
1.	Electric Plant in Service
2.	Completed Construction Not Classified
3.	Construction Work in Progress
4.	Plant Held for Future Use
5.	Less: Accumulated Provision for Depreciation and Amortization
6.	Total New Utility Plant
	Allowance for Working Capital
7.	Cash Working Capital: Purchased Power
8.	Other O&M
9.	Materials and Supplies (13-month average)
10.	Deferred Fuel
11.	Other Working Capital (List Separately)
12.	Total Allowance for Working Capital
	Other Rate Base Deductions
13.	Customer Deposits
14.	Customer Advances for Construction
15.	Other Cost Free Capital (List Separately)
16.	Total Other Rate Base Deductions
17.	Total Rate Base

COOPERATIVE NAME DETAIL OF RESTRUCTURING ACT ADJUSTMENTS REFLECTED IN COL. (--) OF SCHEDULES -- AND --		Exhibit No.: _____ Witness: _______ Schedule 18
ADJ. NO.	ADJUSTMENT		AMOUNT
	OPERATING REVENUES ADJUSTMENTS
	OPERATING EXPENSES ADJUSTMENTS
	INTEREST ON CUSTOMER DEPOSITS ADJUSTMENTS
	CHARITABLE AND EDUCATIONAL DONATIONS ADJUSTMENTS
	CAPITAL CREDITS ACCRUED ADJUSTMENTS
	OTHER INCOME ADJUSTMENTS
	INTEREST ON LONG-TERM DEBT ADJUSTMENTS
	OTHER INTEREST EXPENSE ADJUSTMENTS
	OTHER EXPENSE ADJUSTMENTS
	ALLOWANCE FOR WORKING CAPITAL ADJUSTMENTS
	UTILITY PLANT ADJUSTMENTS
	COMPLETED CONSTRUCTION NOT CLASSIFIED ADJUSTMENTS
	CONSTRUCTION WORK IN PROGRESS ADJUSTMENTS
	PLANT HELD FOR FUTURE USE ADJUSTMENTS
	ACCUMULATED DEPRECIATION AND AMORTIZATION ADJUSTMENTS
	OTHER RATE BASE DEDUCTIONS ADJUSTMENTS
	COMMON EQUITY CAPITAL ADJUSTMENTS

COOPERATIVE NAME JURISDICTIONAL CLASS COST OF SERVICE (METHODOLOGY) COST ALLOCATION STUDY SYSTEM FUNCTIONAL ANALYSIS CASE NO. PUE------							Exhibit No.: ________ Witness: __________ Schedule 20A 14A
Line No.	Description		System	Production	Transmission	Distribution		Other	Allocation Basis
10	Operating Revenues
20
30	Operating Expenses
40	Depreciation Expenses
50	Amortization
60	Income Taxes
70	State Income Taxes
80	Taxes Other than Income
90
100	Total Operating Expenses
110
120	Net Operating Income
130
140	Adjustments to Operating Income
150
160	Add:	AFUDC
170	Less:	Charitable Donations
180		Interest Expense - Customer Deposits
190
200	Adjusted Net Operating Income
210
220	Rate Base
230
240	ROR Earned on Rate Base

COOPERATIVE NAME JURISDICTIONAL CLASS COST OF SERVICE (METHODOLOGY) COST ALLOCATION STUDY CLASS SUMMARY CASE NO. PUE------								Exhibit No.: _______ Witness: _________ Schedule 20B 14B
Line No.	Description		Virginia Juris	Retail Class 1	Retail Class 2	Retail Class 3	Retail Class 4		Retail Class 5	Allocation Basis
10	Operating Revenues
20
30	Operating Expenses
40	Depreciation Expenses
50	Amortization
60	Income Taxes
70	State Income Taxes
80	Taxes Other than Income
90
100	Total Operating Expenses
110
120	Net Operating Income
130
140	Adjustments to Operating Income
150
160	Add:	AFUDC
170	Less:	Charitable Donations
180		Interest Expense- Customer Deposits
190
200	Adjusted Net Operating Income
210
220	Rate Base
230
240	ROR Earned on Rate Base

COOPERATIVE NAME JURISDICTIONAL CLASS COST OF SERVICE (METHODOLOGY) COST ALLOCATION STUDY CLASS FUNCTIONAL ANALYSIS CASE NO. PUE------							Exhibit No.: ________ Witness: __________ Schedule 20C 14C
Line No.	Description		Retail Class 1	Production	Transmission	Distribution		Other	Allocation Basis
10	Operating Revenues
20
30	Operating Expenses
40	Depreciation Expenses
50	Amortization
60	Income Taxes
70	State Income Taxes
80	Taxes Other than Income
90
100	Total Operating Expenses
110
120	Net Operating Income
130
140	Adjustments to Operating Income
150
160	Add:	AFUDC
170	Less:	Charitable Donations
180		Interest Expense - Customer Deposits
190
200	Adjusted Net Operating Income
210
220	Rate Base
230
240	ROR Earned on Rate Base

20VAC5-200-40. Rules implementing the The Small Water or Sewer Public Utility Act.

The following rules apply This section applies to public utilities holding a certificate of public convenience and necessity issued by the State Corporation Commission to provide either water or sewer service, or both, and having gross annual operating revenues of less than $1 million. Such utilities are subject to the Small Water or Sewer Public Utility Act (§ 56-265.13:1 et seq. of the Code of Virginia) and shall be referred to herein as "company." Companies shall perform their own tariff justification analysis in-house prior to changing their rates, tolls, charges, fees, rates or regulations ("tariffs" or "rate changes"). Companies should endeavor to meet with any organized group of customers, e.g., civic associations or property owners' organizations, on a regular basis at least once a year to advise them of company problems, any impending tariff changes and why such changes are necessary. Companies are also encouraged to meet with the staff, following any company meeting with its customers to review and discuss proposed rate changes. However, each company remains responsible for bearing the burden of proof regarding any changes in its tariffs.

Rules Requirements

1. Companies shall maintain their books and records in accordance with the Uniform System of Accounts for Class C companies on an accrual basis.

2. A 3.0% composite rate of depreciation is usual and customary and presumed to be reasonable. Any company which desires to use a higher accrual rate shall notify the Commission's commission's Divisions of Energy Regulation and Public Utility Accounting and Finance of its intent to change this rate in advance of booking same and shall provide to these Divisions divisions a copy of a study or other documents which the company believes supports its proposed change. The Staff staff shall review this change and advise the company of the results of its review. If the company wishes to contest the staff's conclusions regarding depreciation, it may, by motion, apply to the Commission commission for a hearing. If a company wishes to depreciate contributed property, it must advise the Commission commission, through its Divisions of Energy Regulation and Public Utility Accounting and Finance, before booking depreciation on such property, and provide appropriate documentation to support the need for such depreciation under the requested accrual rate. The staff shall review this change and advise the company of the results of its review. If the company wishes to contest the staff's conclusions regarding depreciation of such property or the rate to be accrued thereon, the company, by motion, may apply to the Commission commission for a hearing.

In the event that staff and company agree that depreciation of contributed property is proper and agree on the accrual rate for such depreciation, the amount so depreciated shall be placed in an escrow account and used only for capital improvements, until a Commission commission order is entered to the contrary.

3. Working capital may be accrued at the rate of 1/9th of the total operating and maintenance expenses for the test period.

4. Each company shall file with the Commission's commission's Division of Energy Regulation three copies of the tariff changes, the notice required by subdivision 5 below, and the following information: A narrative statement that sets forth the name of the company, the name, address and telephone number of the person company wishes to have contacted about the tariff change and a brief explanation about why the change is being made. This narrative statement shall also describe whether the company's customers are served on a flat or metered basis; whether billed in advance or in arrears; and shall separately identify the number of connected customers and the number of customers being assessed availability fees, if applicable.

5. Each company shall complete its written notification to all customers 45 days prior to the effective date of any change in tariffs. In cases of hearings resulting from customer requests, only a hearing request made by the individual in whose name the account is maintained shall be deemed a request by a customer. Customer petitions are acceptable.

If a company wishes to contest the number of customers requesting a hearing or whether one submitting a request is a customer, the company may request and those requesting a hearing shall provide to the company a copy of all requests for hearing or a copy of any customer petition filed with this Commission commission. If it is determined that requests for hearing have been received from persons other than customers and that the requisite number of customer requests have not been presented, the company may seek dismissal of the case.

The Company's notice to its customers shall follow the following format to the extent applicable:

NOTICE OF (INCREASES IN, CHANGES IN) RATES, CHARGES, RULES AND REGULATIONS OF SERVICE OF (INSERT NAME OF COMPANY)

(Insert name of Company) will change its (tariffs) on file with the State Corporation Commission, effective for service rendered on and after (effective date). (Summarize existing rates, fees, and charges and all new rates, fees, and charges).

[If applicable] (Insert name of Company) also will change the following portions of its rules and regulations of service, effective on the same date: (Summarize changes).

Any interested party may review (insert name of Company)'s proposed changes during regular business hours at the utility's office where customer bills may be paid.

Any interested person may file written comments in support of or objecting to the proposed changes with the Division of Energy Regulation, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218.

(NAME OF COMPANY)

6. The company is free to choose any test period it wishes to support its rate changes. However, a company having flat rate structures must annualize the level of revenues derived from their current rates based upon the number of customers served as of the end of its selected test period. A company with a metered rate structure must compute revenues in effect at the end of its selected test period based upon the number of customers and usage by customer block per billing period. In the event that a hearing is held, the company shall provide the foregoing information to the Commission commission on or before a date specified in the order scheduling hearing.

7. A hearing shall be held after at least 30 days notice to the company and its customers if a request or petition therefor is received by the Commission commission from at least 25 percent of all customers affected by any filed tariff change, or from 250 affected customers, whichever is the lesser, or from the company itself, or upon the Commission's commission's own motion. When a hearing is to be held, the Commission commission shall, by order, establish a hearing date and a date by which the company shall file financial data containing the information set forth in subdivision 8 below. A copy of the order shall be sent by first class mail to the company and any customer requesting a hearing from whom the Commission commission has a complete mailing address. This order shall also specify a filing schedule for the company, customers and staff.

8. Financial data regarding a rate increase filed pursuant to subdivision 7 hereof shall include:

Any company electing to use a calendar year as its test period may file a copy of its annual report and a statement prepared in the format of the form rate of return statement following this rule subdivision. The statement shall incorporate the per books data of revenues, expenses and plant stated in the annual report and appropriate adjustments. The Commission commission accepts adjustments which reflect (i) annualized changes occurring during the test year, (ii) known and certain wage agreements, (iii) elimination of test year expenses pertaining to a prior year or elimination or amortization of expenses of a nonrecurring nature, and (iv) known and certain changes occurring within 12 months after the test year. The utility is not, however, precluded from making other adjustments which it can support and justify. The utility shall also file an explanation of all of its adjustments appearing in the attached rate of return statement.

Any company electing to use a noncalendar test year may, in lieu of an annual report, file a current balance sheet, income statement and tax return statement prepared in the format of the form rate of return statement following this rule subdivision. The statement shall incorporate per books data of revenues, expenses and plant and appropriate adjustments. The Commission commission accepts adjustments which reflect (i) annualized changes occurring during the test year (ii) known and certain wage agreements, (iii) elimination of test year expenses pertaining to a prior year or elimination or amortization of expenses of nonrecurring nature, and (iv) known and certain changes occurring within 12 months after the test year. A utility is not, however, precluded from making other adjustments which it can support and justify. A utility using a noncalendar test shall also file an explanation of all adjustments and workpapers showing the calculation of the adjustments.

Exhibit - RATE OF RETURN STATEMENT
			Per Books	Adjustments	After Adjustments	Proposed Increase	After Proposed Increase
Operating Revenues
	Water Service Fees
	Availability Fees
	Sewer Service Fees
	Miscellaneous Service Revenues
		Total Operating Revenues
Operating Expenses
	Operation and Maintenance
	Depreciation and Amortization
	Taxes Other
	Federal Income Taxes
		Total Operating Expenses
Net Operating Income
Utility Plant
	Utility Plant in Service
	Less: Accumulated Depreciation and Amortization
	Less: Acquisition Adjustment - Net
	Less: Contributions in Aid of Construction
		Net Utility Plant
Allowance for Working Capital
	Cash
	Materials and Supplies
		Total Allowance for Working Capital
Net Utility Plant and Allowance