- 7 - receipts allocable to the FEECA programs on its books and records. People's was prohibited by the PSC from separately stating this portion on its customers' bills. People's collected FEECA funds subject to a statutory obligation not to expend them for any purpose other than FEECA programs. It kept separate bookkeeping accounts to record FEECA receipts and FEECA expenditures, and, at fixed intervals of 6 months to a year, the PSC conducted in-depth audits of these accounts. If People's charged an expense that the PSC deemed improper, the charge was disallowed. These disallowances were not charged back to People's customers. They were borne by People's and its shareholders in the form of reduced net income. People's did not segregate the FEECA funds in separate bank accounts. For each period, the FEECA rate factor was calculated as closely as possible to generate just enough receipts to cover the period's anticipated FEECA expenditures. If People's FEECA receipts exceeded a period's FEECA expenditures, the excess, plus interest on the excess, was subtracted from the amount the following period's rate factor was designed to yield. If and when the FEECA programs terminate, or if and when People's goes out of business, any residual funds in the FEECA accounts must be refunded to the ratepayers. If People's is acquired by another company, the FEECA account balances pass toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011