1986-06-23 Regular Meeting of La Porte City Council

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• • Ordinance No. 1502 Page 4 effective date of rates set as a result of the Company's next filed statement of intent to change rates, whichever ending date is sooner, the Company may place into a deferred account all depreciation expense, tax expense, and operation and maintenance expense incurred during that time period by the Company related to Limestone Unit 2, and upon review, approval, and adjustment of such deferred expenses by the City inthe proceeding considering the Company's next filed statement of intent to change rates, these deferred amounts shall be amortized over a period of ten (10) years from the commercial in-service date of Limestone Unit 2. The City Council hereby orders the Company, upon the commercial in-service date for Limestone Unit 2, to transfer its total investment in Limestone Unit 2 from Construction Work In Progress to Plant in Service. The City reserves the right to exclude from rate base or other recovery any portion of the expenditures from the plant, AFUDC, capitalized expenses, capitalized depreciation or other capitalized costs related to Limestone Unit 2 that the City determines is not used and useful, has been imprudently spent or incurred, or is in any other way not lawfully includable in rate base or other recovery. The City further reserves the right to determine the reasonableness and prudence of any deferred expenses in the rate order in which rate base treatment for Limestone Unit 2 is requested. The City Council finds that all of the Company's investment in Limestone Unit 2 as of December 31, 1985, is presently in rate base as Construction Work in Progress. The City Council hereby orders that the Company shall not, after the date of final passage of this ordinance, accrue any AFUDC on any Limestone Unit 2 investment. 2. The City Council hereby orders the Company, after the date of final passage of this ordinance, to include in reconcilable fuel expense for any fuel purchased form an affiliate only fuel prices at cost, and to exclude any returns on or of equity.