Pension Settlement Payout Losses Incurred in 2021
NY-ADR
8/3/22 N.Y. St. Reg. PSC-31-22-00008-P
NEW YORK STATE REGISTER
VOLUME XLIV, ISSUE 31
August 03, 2022
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-31-22-00008-P
Pension Settlement Payout Losses Incurred in 2021
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a petition filed by Liberty Utilities (New York Water) Corp. (Liberty) requesting deferral accounting and amortization of pension settlement losses.
Statutory authority:
Public Service Law, section 89-c
Subject:
Pension settlement payout losses incurred in 2021.
Purpose:
Consideration of Liberty's petition to defer and amortize, for future rate recognition, pension payout losses incurred in 2021.
Substance of proposed rule:
The Commission is considering a petition filed Liberty Utilities (New York Water) Corp. (Company), seeking approval to defer and amortize for future rate recognition losses incurred due to lump sum pension payouts from the Company’s pension plan if those payouts triggered settlements, pursuant to the Commission’s Statement of Policy and Order Concerning the Accounting and Ratemaking Treatment for Pensions and Postretirement Benefits Other Than Pensions filed in Case 91-M-0890.
The Company states that the proposed deferral and amortization of $360,247 related to two settlement losses calculated to be $93,623 and $266,624 that occurred in April 2021 and December 2021, respectively, would be less detrimental to ratepayers than the resulting cost and reputational harm of terminating the associated pension trust accounts.
The Company proposes to defer the two settlement losses and amortize the resulting regulatory asset over ten years and to establish a regulatory liability account on the Company’s books. The accounts would then remain on the Company’s books until its next rate case, where the accounts would be amortized beginning on the effective date of the new rates.
The Company also requests the Commission consolidate petitions it currently has pending in Cases 17-W-0062 and 21-W-0364, which seek similar Commission approval to defer and amortize losses incurred due to lump sum pension payouts, with this case for the Commission to consider in a single Order.
The full text of the petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject, or modify, in whole or in part, the action proposed and may resolve related matters.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Michelle L. Phillips, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6517, email: [email protected]
Public comment will be received until:
60 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(21-W-0404SP1)
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