# Definitions

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4501
- **title:** Definitions
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** The following special definitions apply only to rules 4501 through 4505. In the event of a conflict between these definitions and a statutory definition, the statutory definition shall apply. (a) "Activity" means a business activity, product or service whether offered by a Colorado utility, a divisi
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- **source url:** https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4
**body:**

The following special definitions apply only to rules 4501 through 4505. In the event of a
conflict between these definitions and a statutory definition, the statutory definition shall
apply.

(a) “Activity” means a business activity, product or service whether offered by a
Colorado utility, a division of a Colorado utility, or an affiliate of a Colorado utility.
(b) “Allocate” or “Allocated” or “Cost Allocation” means to distribute a joint or
common cost to or from more than one activity or jurisdiction.
(c) “Assigned Costs” or “Cost Assignment” means a cost that is specifically identified
with a particular activity or jurisdiction and charged directly to that activity or
jurisdiction. At no point in the process of making the cost assignment is an
allocation applied.
(d) “Cost Assignment and Allocation Manual” (CAAM) means the indexed document
filed by a utility with the Commission that describes and explains the cost
assignment and allocation methods the utility uses to segregate and account for
revenues, expenses, assets, liabilities, and rate base cost components assigned
or allocated to Colorado jurisdictional activities. It includes the cost assignment
and allocation methods to segregate and account for costs between and among
jurisdictions, between regulated and non-regulated activities, and between and
among utility divisions.
(e) “Division” means an activity conducted by a Colorado utility but not through a
legal entity separate from the Colorado utility. It includes the electric, gas, or
thermal activities of a Colorado utility and any non-regulated activities provided
by the Colorado utility.
(f) “Fully Distributed Cost” (FDC) means the process of segregating, assigning, and
allocating the revenues, expenses, assets, liabilities and rate base amounts
recorded in the utility’s accounting books and records using cost accounting,
engineering, and economic concepts, methods and standards. Fully distributed
cost includes a return on investment in cases where assets are used.
(g) “Fully Distributed Cost Study” is a cost study that reflects the result of the fully
distributed revenues, expenses, assets, liabilities and rate base amounts for the
Colorado utility to and from the different activities, jurisdictions, divisions, and
affiliates using cost accounting, engineering, and economic concepts, methods,
and standards.
(h) “Incidental Services” means non-tariff or non-regulated services that have
traditionally been offered incidentally to the provisions of tariff services where the
revenues for all such services do not exceed:
(I) The greater of $100,000 or one percent of the provider’s total annual
Colorado operating revenues for regulated services; or,
(II) Such amount established by the Commission considering the nature and
frequency of the particular service.

(i) “Jurisdictional” means having regulatory rate authority over a utility. Jurisdiction
can be at a state or federal level.
(j) “Regulated activity” means any activity that is offered as a public utility service as
defined in Title 40, Articles 1 to 7 C.R.S., and is regulated by the Commission or
regulated by another state utility commission or the FERC, or any non-regulated
activity which meets the criteria specified in rules 4502(g).
(k) “Non-regulated activity” means any activity that is not offered as a public utility
service as defined in Title 40, Articles 1 to 7, C.R.S., and is not regulated by this
Commission or another state utility commission or the FERC.
(l) “Transaction” means the activity that results in the provision of products,
services, or assets by one division or an affiliate to another division or an affiliate.
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