| (E) if the utility wants to extend the 18-month deadline
to file a comprehensive rate case under paragraph (3) of this subsection,
documentation that the revenues to be recovered from each new customer
class will be less than ten percent of the utility's total annual
revenue.
(2) Rates for new customer classes.
(A) The rates for each new customer class must be based
on cost-of-service and rate design studies.
(B) On the effective date of the rates for each new
customer class, common costs assigned to and recovered from the new
customer classes must be removed from the rates of existing customer
classes.
(3) Rate case requirement.
(A) A utility that has received commission approval
for the creation of a new customer class or classes under this subsection
must file a comprehensive rate case by filing a statement of intent
under TWC §§13.187, 13.1871, 13.18715, or 13.1872 not later
than 18 months from the date service begins to the new customer class
or classes unless the utility has submitted documentation under subparagraph
(1)(E) of this subsection demonstrating that each new customer class
represents less than ten percent of the utility's total annual revenue
required.
(B) If the utility demonstrates to the commission that
each new customer class represents less than ten percent of the utility's
total annual revenue by submitting documentation under subparagraph
(1)(E) of this subsection, a comprehensive rate case is not required
until the earlier of six months following the date on which the revenues
of any of the new the customer classes equals or exceeds ten percent
of the utility's total annual revenue or five years following the
date service to the new customer class or classes begins. The utility
must, as an attachment to its annual report filed under §24.129
(relating to Water and Sewer Utilities Annual Reports), annually update
its demonstration to show that the revenues of each new customer class
remain less than ten percent of the utility's total annual revenue.
A utility must continue to update its demonstration annually until
the commission adopts a final order in a comprehensive rate case for
that utility or the utility is no longer eligible to delay filing
a comprehensive rate case under this paragraph.
(C) If a utility fails to provide an annual update
that shows the annual revenue of each new customer class remains less
than ten percent of the utility's total annual revenue, the utility
must file a comprehensive rate case within the earlier of six months
from the date its annual report was due under §24.129(a) or five
years from the date service to the new customer class or classes began.
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