VI. Audit Scope and Cap

Our intent is to have the audit address the same types of issues addressed in other NRF audits. Therefore, the audit will address compliance with the Commission's rules, orders, decisions, policies, and data collection and reporting requirements. It will include, but not be limited to, affiliate transactions, cost allocations, employee pensions and benefits, and income taxes. It may also include compliance with the service quality data collection and reporting requirements. The focus will be on areas that pose the most risk to ratepayers. The audit should not include items beyond traditional audit parameters such as rate comparisons, analysis of benefits to customers, analysis of service quality, and management structuring.

The audit period is three years ended December 31, 2003. However, ORA may address records and information, related to the period subsequent to December 31, 2003, to the extent they are relevant. In addition, the cap on ORA's consultant costs will be $300,000, which is roughly the amount spent in connection with Application (A.) 99-03-025, the last NRF review for Roseville. For good cause shown, ORA may request a higher amount by filing a petition to modify this decision.

ORA will be required to submit to the Executive Director a detailed audit plan that conforms to the requirements set out in this decision, not less than 90 days after the effective date of this decision. The Executive Director shall review the audit plan for consistency with this order, and approve it if it complies. If it does not comply, the Executive Director shall reject the plan and require ORA to submit a revised audit plan.