R746-407-3. Criteria

An item of test-year data may be annualized in the determination of a utility's rates if it meets the following criteria:

A. Annualization of price-level changes will normally be allowed.

B. Annualization of volume-level changes with minimal interdependent investment/revenue/cost relationships will normally be allowed.

C. Annualization of volume-level changes with significant interdependent investment/revenue/cost relationships will be considered on a case-by-case basis, and annualization of such changes will not constitute precedent.

D. The change must be known to occur at a specific moment or moments in time.

E. The effects of the change must be measurable.

F. The change must occur on or before the effective date of a final Commission order setting rates.

G. The change must be expected to be ongoing after final rates become effective.