Applicability. This part sets forth procedures governing the filing, review and disposition of the rate schedules for the sale or transmission of power and energy established by the Alaska, Bonneville, Southeastern, Southwestern and Western Area Power Administrations. Except as otherwise provided by rule or order, the Commission's general rules of practice and procedure (part 385 of this chapter) will apply to any filings, hearings or other procedures under this part, as applicable.

Definitions. For purposes of this part, the following definitions apply:

Administrator means the administrator of a power marketing administration.

Electric service means any transmission or sale of electric power and energy, including capacity sales, energy sales, firm power sales, transmission services, or any combination of these services, and the utilization, by means of ownership, contractual arrangements, leasing, or other arrangements, of any facility to provide such sales or services.

Historic period means the period commencing with the date of first commercial operation of a powerplant or transmission facility and ending on the last day of the latest year for which actual cost data are available, provided that the period does not end more than 18 months before the date on which the Administrator tenders the rate schedule for filing with the Commission, or such longer period requested by the Deputy Secretary of Energy or Administrator and granted by the Commission.

Initial capital investment means the cost of acquisition or construction of a power facility or non-power facility which has been assigned to be repaid from the power revenues, including but not limited to any cost of planning, design, land acquisition, construction, interest during construction, and testing incurred before the date on which the facility becomes operational or revenue-producing.

Power repayment study or PRS means a study of the annual repayment of production and transmission investments and other costs through the application of revenues during the repayment period.

Proposed rate approval period means the period for which confirmation and approval of the rate schedules is requested. This period must not exceed five years.

Rate schedule means a statement describing:

Type of service to which the rate is to be applied;

Rates and charges for, or in connection with, electric service; and

Classifications and other provisions which directly affect such rates and charges.

Rate test or cost evaluation period means a period, commencing with the end of the historic period, as defined in paragraph (b)(3) of this section, and continuing through the proposed rate approval period as defined in paragraph (b)(6) of this section, during which future estimates of costs and revenues should be modified by the Administrator to reflect changing conditions.

Replacement means any substitution of a unit of property with another unit of like character.