Discussion

The scope of the present proceeding, A.03-02-027, will be limited to whether SFPP should be permitted an electricity surcharge. The Commission will determine whether SFPP's rates are reasonable based on Test Year 2003 revenue requirement, and that revenue requirement will be applied to see if the requested electric surcharge rate increase was justified from the date of its imposition by R. 0-0043 until the adoption of test year 2003 rates. This determination will be made on the basis of SFPP's cost-of-service showing.

However, the Commission's determination in the present proceeding does not pre-judge what the Commission will decide in the three pending, submitted proceedings. As discussed, the records in those submitted proceedings do include evidence regarding the "totality of circumstances" as they relate to SFPP's intrastate pipeline transportation services. If SFPP believes the record in any, or all, of the submitted proceedings needs to be updated to facilitate the Commission's analysis of reasonable rates under the Unocap analysis, SFPP may update the information by July 28, 2003. The Indicated Shippers may respond to any record updates by SFPP by August 25, 2003.

Depending on the outcome of those proceedings and whether market rates or cost-of-service rates are adopted for SFPP's rates, this 2003 proceeding will make the appropriate adjustments to the rate needed to reflect changed conditions.