The future test year period may be established by utilizing adjustments, forecasts, budgets or other reasonable methods; provided, however, that all future test year values, whether at the USOA account or sub-account level or at the cost center level, shall be fully described, justified, and supported through linkage data.

1. A. If budget estimates are used, the estimates shall still be fully supported, explained and justified in the context of this rule, with full budget process documentation. If a company uses a budget it shall:

   (1) substantiate how it derived its estimates, starting with the base period; and

   (2) the support provided shall allow staff and intervenors to evaluate the company’s budget numbers in the future test period.

2. B. In addition, for each cost center if budget estimates are used or for each USOA account otherwise, future test year period expenditure estimates shall include side-by-side comparisons, with:

   (1) a column showing actual expenditures during the base period;

   (2) a column showing the estimated expenditures during the future test year period;

   (3) a column showing the variance between the two; and

   (4) a column providing an explanation (or a reference to the written testimony requirement under Subsection D of this section) for the differences between the base period data and the future test period estimates, including occurrences which took place in the linkage data.

3. C. Underlying the requirements contained in Subsection B of this section of this rule is the premise that estimated amounts frequently have origins in actual past amounts or in past experience.
4. D. In addition to the information required under Paragraph (4) of Subsection B of this section, material changes from base period to linkage data and future test year period amounts shall be fully explained in written testimony.

[17.1.3.18 NMAC – N, 2-14-13]