Section 3.48.750. Calculation of TIER.

A cooperative's TIER is calculated for the most recent 12-month period, based on the information filed in accordance with 3 AAC 48.720 and on the following principles:  
		(1) the annualized long-term interest expense for the period must be used;  
		(2) the actual operating expenses for the period must be normalized to remove nonrecurring items and to adjust for items normally amortized for ratemaking purposes, and may also be normalized to reflect pro forma adjustments for known and measurable changes that are more than likely to continue through the period in which the rates will be in effect;  
		(3) interest income must be included in the determination of TIER to the extent that interest income exceeds short-term interest expense.  

Authorities

42.05.141;42.05.151;42.05.381;42.05.411;42.05.421;42.05.431

Notes

Reference

3 AAC 48.720

Authority

AS 42.05.141 AS 42.05.151 AS 42.05.381 AS 42.05.411 AS 42.05.421 AS 42.05.431

History

Eff. 1/1/87, Register 100