# Cost Assignment and Allocation Manuals

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4503
- **title:** Cost Assignment and Allocation Manuals
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** (a) Each utility shall maintain on file with the Commission an approved indexed cost assignment and allocation manual which describes and explains the calculation methods the utility uses to segregate and account for revenues, expenses, assets, liabilities, and rate base cost components assigned or 
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4503.json
- **markdown:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4503.md
- **app url:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4503
- **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:**

(a) Each utility shall maintain on file with the Commission an approved indexed cost
assignment and allocation manual which describes and explains the calculation
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 calculation methods to segregate
and account for costs between and among jurisdictions, between regulated and
non-regulated activities, and between and among utility divisions.
(b) Each utility shall include the following information in its CAAM.
(I) A listing of all regulated or non-regulated divisions of the Colorado utility
together with an identification of the regulated or non-regulated activities
conducted by each.
(II) A listing of all regulated or non-regulated affiliates of the Colorado utility
together with an identification of which affiliates allocate or assign costs to
and from the Colorado utility.
(III) A listing and description of each regulated and non-regulated activity
offered by the Colorado utility. The Colorado utility shall provide a
description in sufficient detail to identify the types of costs associated with
the activity and shall identify how the activity is offered to the public and
identify whether the Colorado utility provides the activity in more than one

state. If an activity is offered subject to tariff, the Colorado utility may
identify the tariff and the tariff section that describes the service offering in
lieu of providing a service description.
(IV) A listing of the revenues, expenses, assets, liabilities and rate base items
by Uniform System of Accounts account number that the utility proposes
to include in its revenue requirement for Colorado jurisdictional activities
including those items that are partially allocated to Colorado as well as
those items that are exclusively assigned to Colorado.
(V) A detailed description showing how the revenues, expenses, assets,
liabilities and rate base items by account and sub-account are assigned
and/or allocated to the Colorado utility’s non-regulated activities, along
with a description of the methods used to perform the assignment and
allocations.
(VI) A description of each transaction between the Colorado utility and a non-
regulated activity which occurred since the Colorado utility’s prior CAAM
was filed and, for each transaction, a statement as to whether, for this
Commission’s jurisdictional cost assignment and allocation purposes, the
value of the transactions is at cost or market as applicable.
(VII) A description of the basis for how the assignment or allocation is made.
(VIII) If the utility believes that specific cost assignments or allocations are
under the jurisdiction of another authority, the utility shall so state in its
CAAM and give a written description of the prescribed methods. Nothing
herein shall be construed to be a delegation of this Commission’s
ratemaking authority related to those assignments or allocations.
(IX) Any additional information specifically required by Commission order.
(c) A utility may treat certain transactions as confidential pursuant to the
Commission rules on confidentially.
(d) Following the initial approval of its CAAM, the utility shall file an updated CAAM
in each rate case proceeding where revenue requirements are determined or
every five years following approval of the CAAM then in effect, whichever is
earlier.
(e) The utility may, at its discretion, file an application seeking Commission approval
of updates to its CAAM at any time.
(f) Whenever a utility files for approval of an update to its CAAM as a result of
paragraph (d) or (e) above, the utility shall also simultaneously file a FDC study
reflecting the results of the cost allocation methods in its updated manual.

(g) Each utility shall maintain all records and supporting documentation concerning
its CAAMs for so long as such manual is in effect or are subject to a complaint or
any active proceeding involving cost allocation before the Commission for as
long as such proceeding may be open.
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