49-05-06. Hearing by commission on proposed change of rates
1. Whenever a notice or any schedule stating an individual or joint rate, classification,
contract, practice, or rule, increasing or decreasing, or resulting in an increase or
decrease in any rate, is filed with the commission, the commission may suspend by
motion the rate, classification, contract, practice, or rule but the period of suspension
may not extend more than six months beyond the time when it otherwise would go into
effect unless the commission and the utility filing the notice or schedule agree to the
extension. Upon complaint or upon its own initiative without complaint the commission
may order a hearing, upon due notice, concerning the propriety of the rate,
classification, contract, practice, or rule. On such hearing, the commission shall
establish the rates, classifications, contracts, practices, or rules proposed, in whole or
in part, or others in lieu thereof, which it finds to be just and reasonable. At any such
hearing, the burden to show that the increased rate or proposed change of rate,
classification, rule, or practice is just and reasonable is upon the public utility applying
for the increase. All such rates, classifications, contracts, practices, or rules, not
suspended, on the expiration of thirty days from the time of filing with the commission,
or of such lesser time as the commission may grant, become effective rates,
classifications, contracts, practices, or rules, subject to the power of the commission,
after a hearing had on its own motion or upon complaint, to alter or modify the same.
2. Notwithstanding that the commission may suspend a filing and order a hearing, a
public utility may file for interim rate relief as part of its general rate increase
application and filing. If interim rates are requested, the commission shall order that
the interim rate schedule take effect no later than sixty days after the initial filing date
and without a public hearing. The interim rate schedule must be calculated using the
proposed test year cost of capital, rate base, and expenses, except that the schedule
must include:
a. A rate of return on common equity for the public utility equal to that authorized by
the commission in the public utility's most recent rate proceeding;
b. Rate base or expense items the same in nature and kind as those allowed by a
currently effective commission order in the public utility's most recent rate
proceeding; and
c. No change in existing rate design.
3. In ordering an interim rate schedule, the commission may require a bond to secure
any projected refund required by subsection 4. The terms of the bond, including the
amount and surety, are subject to the commission's approval.
4. As ordered by the commission, the utility shall promptly refund to persons entitled
thereto all interim rate amounts collected by the public utility in excess of the final rates
approved by the commission plus reasonable interest at a rate to be determined by the
commission.
