| (a) Rates received during the pendency of a rate proceeding.
(1) During the pendency of its rate proceeding, a utility
may be required to deposit all or part of the rate increase into an
interest-bearing escrow account with a federally insured financial
institution, under such terms and conditions as determined by the
commission.
(2) The utility shall file a completed escrow agreement
between the utility and the financial institution with the commission
for review and approval.
(3) If necessary to meet the utility's current operating
expenses, or for other good cause shown, the commission may authorize
the release of funds to the utility from the escrow account during
the pendency of the proceeding.
(4) The commission, except for good cause shown, shall
give all parties-of-record at least 10 days notice of an intent to
release funds from an escrow account. Any party may file a motion
with the commission objecting to the release of escrow funds or to
establish different terms and conditions for the release of escrowed
funds.
(5) Upon the commission's establishment of final rates,
all funds remaining in the escrow account shall be released to the
utility or ratepayers in accordance with the terms of the commission's
order.
(b) Surcharge revenues granted by commission order
at the conclusion of a rate proceeding.
(1) A utility may be required to deposit all or part
of surcharge funds authorized by the commission into an interest-bearing
escrow account with a federally insured financial institution, under
such terms and conditions as determined by the commission.
(2) Prior to collecting any surcharge revenues that
are required to be escrowed, the utility shall submit for commission
approval the completed escrow agreement between the utility and the
financial institution. If the utility fails to promptly remedy any
deficiencies in the agreement noted by the commission, the commission
may suspend the collection of surcharge revenues until the agreement
is properly amended.
(3) In order to allow the utility to complete the improvements
for which surcharge funds were granted, the commission may authorize
the release of funds to the utility from the escrow account after
receiving a written request including appropriate documentation.
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