Advice Letter 59 Advice Letter AL-59 was filed as a Tier 2 filing on February 9, 2010, requesting a surcharge to recover costs associated with the NMMA over a 4 month time period. The tier level was protested on March 3, 2010 by the Cypress Ridge Owners’ Association (CROA). AL-59 was suspended on March 21, 2010 and subsequently withdrawn on May 21, 2010. Rural subsequently filed AL-59-A on January 18, 2011, as a Tier 2 filing. CROA protested that filing on February 2, 2011. AL-59-A was suspended on March 21, 2011, on the basis that it was improperly filed as Tier 2. Division simultaneously issued a letter to Rural to immediately suspend collecting charges. Since a Tier 2 filing can automatically become effective 30 days after filing, Rural had already proceeded to collect one surcharge amounting to $4,101. This amount is owed to the ratepayers. Rather than returning the amount and requesting it again, Rural has subtracted it from Rural’s request for reimbursement under AL-68. DISCUSSION Recovery of Costs addressed in AL-68 -A The expenses incurred by Rural were for production of a report by the NMMA Technical Group to the Superior Court per the Stipulation. A review of the expenses requested in AL 68-A indicates these expenses were reasonably incurred to meet the requirements of the Stipulation. Therefore, AL 68-A should be approved and Rural should be allowed to recover the $45,159 requested through a surcharge. Recovery of Costs addressed in AL-69 In addition, Rural should be allowed to recover its costs requested in AL-69 for the litigation activity which resulted in the Stipulation. Division has reviewed the costs discussed above and finds them to be reasonable. In doing so, Division has considered four factors needed to be established when a utility seeks recovery from ratepayers of costs recorded in a memorandum account. These factors, which should also apply to Rural, are:
Advice Letter 59 Advice Letter AL-59 was filed as a Tier 2 filing on February 9, 2010, requesting a surcharge to recover costs associated with the NMMA over a 4 month time period. The tier level was protested on March 3, 2010 by the Cypress Ridge Owners’ Association (CROA). AL-59 was suspended on March 21, 2010 and subsequently withdrawn on May 21, 2010. Rural subsequently filed AL-59-A on January 18, 2011, as a Tier 2 filing. CROA protested that filing on February 2, 2011. AL-59-A was suspended on March 21, 2011, on the basis that it was improperly filed as Tier 2. Division simultaneously issued a letter to Rural to immediately suspend collecting charges. Since a Tier 2 filing can automatically become effective 30 days after filing, Rural had already proceeded to collect one surcharge amounting to $4,101. This amount is owed to the ratepayers. Rather than returning the amount and requesting it again, Rural has subtracted it from Rural’s request for reimbursement under AL-68. DISCUSSION Recovery of Costs addressed in AL-68 -A The expenses incurred by Rural were for production of a report by the NMMA Technical Group to the Superior Court per the Stipulation. A review of the expenses requested in AL 68-A indicates these expenses were reasonably incurred to meet the requirements of the Stipulation. Therefore, AL 68-A should be approved and Rural should be allowed to recover the $45,159 requested through a surcharge. Recovery of Costs addressed in AL-69 In addition, Rural should be allowed to recover its costs requested in AL-69 for the litigation activity which resulted in the Stipulation. Division has reviewed the costs discussed above and finds them to be reasonable. In doing so, Division has considered four factors needed to be established when a utility seeks recovery from ratepayers of costs recorded in a memorandum account. These factors, which should also apply to Rural, are:
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