| (5) Sufficiency of application. A motion to find the
application materially deficient must be filed no later than 10 calendar
days after the application is filed. A motion to find an amended application
deficient, when the amendment is in response to an order issued under
this paragraph, must be filed no later than five working days after
the amended application is filed. The motion must specify the nature
of any alleged deficiency and, if the commission has adopted a form
for a GCRR application, the particular requirements of the form for
which the application is alleged to be out of compliance. The applicant's
response to such motion must be filed no later than five working days
after the motion is filed. Within five working days of the applicant's
response, the presiding officer must issue an order finding the application
sufficient or deficient, and if deficient must specify the deficiencies
and the time within which the applicant must amend its application
to cure the deficiencies. If the presiding officer has not issued
a written order within 35 calendar days of the filing of the application,
or 25 calendar days of the filing of an amended application, concluding
that material deficiencies exist in the application, the application
is sufficient.
(6) Action on application. If the requirements of §22.35
of this title are met, the presiding officer must issue a notice of
approval within 60 calendar days of the date an application is found
to be sufficient by order or rule. The presiding officer may extend
this time if a party demonstrates that additional time is needed to
review the application or the presiding officer needs additional time
to prepare the notice of approval. Further, if the presiding officer
determines that the application should be considered by the commission,
the presiding officer must issue a proposed order for consideration
by the commission at the next available open meeting.
(h) Update of generation invested capital. Within 60
calendar days after a power generation facility included in a GCRR
begins providing service to the electric utility's customers, the
electric utility may file an application to update the GCRR to reflect
the electric utility's actual capital investment in the power generation
facility. An application to update the GCRR under this subsection
is subject to the requirements in subsection (g) of this section.
Any update to the GCRR made under this subsection must include carrying
costs on the amount of investment in excess of the investment initially
approved for recovery under subsection (g) of this section. Carrying
costs will accrue monthly from the date the power generation facility
began providing service to the electric utility's customers through
the date the adjustment is approved and must be calculated using the
rate of return approved by the commission in the electric utility's
most recent base-rate proceeding.
(i) Reconciliation.
(1) Amounts recovered through a GCRR approved under
this section are subject to reconciliation in the first base-rate
proceeding for the electric utility that is filed after the effective
date of the GCRR. The reconciliation will true up the total amount
actually recovered through the GCRR approved under this section with
the total revenue requirement that the approved GCRR was designed
to recover. As part of the reconciliation, the commission will determine
if the amounts recovered through the GCRR are reasonable and necessary.
(2) Any amounts recovered through the GCRR that are
found to have been unreasonable, unnecessary, or imprudent, plus the
corresponding return and taxes, must be refunded with carrying costs.
Carrying costs will be determined as follows:
(A) For the time period beginning with the date on
which over-recovery is determined to have begun to the effective date
of the electric utility's base rates set in the base-rate proceeding
in which the GCRR is reconciled, carrying costs will accrue monthly
and will be calculated using an effective monthly interest rate based
on the same rate of return that was applied to the investments included
in the GCRR.
(B) For the time period beginning with the effective
date of the electric utility's rates set in the base-rate proceeding
in which the GCRR is reconciled, carrying costs will accrue monthly
and will be calculated using an effective monthly interest rate based
on the electric utility's rate of return authorized in that base-rate
proceeding.
(j) Threshold to initiate base-rate proceeding. If
a GCRR approved under this section includes cumulative incremental
recovery for a power generation facility or power generation facilities
where the amount of generation invested capital is greater than $200
million on a Texas jurisdictional basis, the electric utility must
initiate a base-rate proceeding at the commission not later than 18
months after the date the GCRR takes effect.
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