Among the responsibilities of the Commission is the dissemination of information about Commission activities and low-level radioactive waste management efficiencies in general. One means of providing such information is the Annual Information Forum.
The Commission's Sixth Annual Public Information & Education Forum was held on June 24, 1997, in Lincoln. There were approximately 40 persons in attendance.
Theme for the Forum was "Rates, Fees, and Surcharges." A number of nationally recognized authorities gave presentations as well as staff from the Commission and USE. The first Forum session dealt with an historic overview of rates, fees, and surcharges. The second session related specifically to the Commission's disposal facility.
Participants in the first session included: Robert Burns, Senior Research Specialist and attorney at the National Regulatory Research Institute at Ohio State University; Eugene Eckhardt, Assistant Director of Water and Solid Waste with the Washington State Utilities and Transportation Commission; Jim Shaffner, Manager of the Southwestern Compact Region for USE; and Barry Bede, USE Vice President. Second session participants included John DeOld, Project Manager, USE and A. Eugene Crump, Executive Director of the Commission.
Topics discussed included: Issues in Recovering Pre-Operational (Site Development) Expenses; Rate Setting for the Ward Valley, California, LLRW Project; USE, Richland, Washington, Disposal Rates, Fees & Surcharges; USE, Collaborative Group Report on Rate Design and Ratemaking; The Washington State Experience on regulation of LLRW, including Rates in the Initial Rate Setting Process; Cost Recovery and Ratemaking Approaches for LLRW Disposal Facilities; and Cost of Service and Rate Design.
During his remarks on Recovering Pre-operational Expenses, Burns said that the financial arrangements for recovering these investments would vary according to who makes the investment: the site developer, the waste generators, or state governments. "Traditionally, pre-operational expenses of utility plant construction and site development are recovered from the customers after the plant has been placed in service. Traditionally, utility plant construction and site development expenses are funded by debt and equity investors," Burns said.
"In such cases, direct costs of site preparation and construction are capitalized," he added. "The indirect costs properly assignable to site preparation and construction work are also capitalized." He said that indirect costs include interest during construction which may include all reasonable costs of money, whether paid out or not, utilized during the site preparation and construction stage.
"Interest on debt capital, whether paid or accrued, is capitalized," he said, "and, further, an imputed interest on equity capital is also charged. While rates on long-term debt are readily available, no rate is available on equity since the assets are not yet in service. Most commissions capitalize all construction and site preparation at the utility's authorized rate of return."
Eckhardt said the goal of cost recovery and ratemaking approaches for LLRW Disposal Facilities was to develop rates that will recover the costs of the facility. "These include," he said, "the initial investment and development expenses, day-to-day operating costs, the opportunity to earn a fair rate of return on the owners' investment in the facility -- their profit, and income taxes."
He said that rates should encourage efficient and effective use of the facility. "The rates should be fair for various classes of customers and there should be an avoidance of rate shock, bypass, or 'gaming' the rates," he added.
The Forum was videotaped and the tape is available for viewing at the Commission Office. Handouts related to each of the topics discussed are also available upon request.