| (5) If a hearing on the application is requested, the
application will be referred to the State Office of Administrative
Hearings (SOAH) for an evidentiary hearing. The presiding officer
must set a procedural schedule that will enable the commission to
issue a final order within 120 days after the application is referred
to SOAH. For good cause, the presiding officer may set a procedural
schedule that will not enable the commission to issue a final order
within 120 days after the application is determined to be sufficient.
(h) Scope of proceeding. The issue of whether eligible
costs included in an application for a SIC or an amendment to a SIC
are prudent, reasonable, or necessary, will not be addressed in a
proceeding under this section unless the presiding officer finds that
good cause exists to address these issues.
(i) System improvement charge reconciliation. Costs
recovered through a SIC are subject to reconciliation in the utility's
next comprehensive rate case. Any amounts recovered through the SIC
that are found to have been unreasonable, unnecessary, or imprudent,
plus the corresponding return and taxes, must be refunded with carrying
costs. The utility must pay to its customers carrying costs on these
amounts calculated using the same rate of return that was applied
to the recovered costs in establishing the SIC until the date the
rates approved in the utility's next comprehensive rate case are effective.
Thereafter, carrying costs must be calculated using the utility's
rate of return authorized in the comprehensive rate case.
(j) Rate case expenses. Recovery of rate case expenses
may be requested and must be reviewed in the utility's next comprehensive
base rate case and in accordance with §24.44 of this chapter
(relating to Rate-case Expenses Pursuant to Texas Water Code §13.187
and §13.1871).
(k) Requirement to file a rate case. A utility must
file a comprehensive rate case under TWC §§13.187, 13.1871,
13.18715, or 13.1872 within the following times from the date the
commission files an order approving the SIC.
(1) Four years for a utility that was a Class A utility
at the time of the order.
(2) Six years for a utility that was a Class B utility
at the time of the order.
(3) Eight years for a utility that was a Class C or
Class D utility at the time of the order.
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