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RULE §336.1309Initial Determination of Rates and Fees

(a) The licensee shall file an application with the executive director to establish initial maximum disposal rates that consider the factors identified in §336.1307 of this title (relating to Factors Considered for Maximum Disposal Rates). The application shall include exhibits, workpapers, summaries, annual reports, cost studies, a proposed reasonable rate of return on invested capital, proposed fees, and other information as requested by the executive director to demonstrate rates that meet the requirements of this subchapter. In addition, the application shall include revenue requirements for cost recovery from the compact waste disposal facility.

  (1) The licensee shall submit a rate filing application package in accordance with the application prescribed by the executive director.

  (2) After receipt of the application, the executive director shall review the application and recommend one or more rates to the commission for approval. In reviewing the application and evaluating the rate information, the executive director may request additional information from the licensee.

  (3) The licensee shall provide notice of the application to all known customers that will ship or deliver waste to the compact waste disposal facility and shall provide notice of the application to any person by any method as directed by the executive director.

  (4) The executive director shall maintain a Web site to inform the public on the process for consideration of the rate application and shall provide notice by publication in the Texas Register.

(b) After notice and the opportunity for a contested case hearing, the commission shall establish the initial maximum disposal rates that may be charged by the licensee. Upon request for a contested case hearing by a waste generator in the Texas Compact, the executive director shall directly refer an application to establish maximum disposal rates to the State Office of Administrative Hearings for a contested case hearing. Only the executive director, the licensee, or a generator has a right to a contested case hearing.

(c) A request for a contested case hearing filed by a generator shall contain the following information for each signatory generator:

  (1) a clear and concise statement that the application is a request for a contested case hearing; and

  (2) the generator's licensing numbers indicating the location or locations where the compact waste is generated.

(d) Generators must initiate a request for a contested case hearing by filing individual requests rather than joint requests.

(e) In the initial rate proceeding, the commission also shall determine the factors necessary to calculate the inflation adjustment, volume adjustment, extraordinary volume adjustment, and relative hazard.

(f) Initial rates shall be interim rates subject to a true-up in the first revision to maximum disposal rates pursuant to §336.1311 of this title (relating to Revisions to Maximum Disposal Rates). The true-up will measure the differences between projected and actual volumes of cubic feet of waste, allowable expenses, and invested capital for the time period that the interim rates are in effect, based on actual, historical amounts during that time period. The licensee shall refund to the generators who paid interim rates where money collected under the interim rates that is in excess of the adopted rates; or the licensee shall surcharge bills to the generators who paid interim rates to recover the amount by which the money collected under interim rates is less than the money that would have been collected under adopted rates.

(g) After determining the initial maximum disposal rates, inflation adjustment, and volume adjustment under this subchapter, the commission shall direct the executive director to initiate expedited rulemaking to establish the rate by rule.

Source Note: The provisions of this §336.1309 adopted to be effective March 12, 2009, 34 TexReg 1688

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