4.2. ERMUSR 09-10-2019 - Laserfiche WebLink

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APPENDIX 1 METHODOLOGY AND DATA SOURCES FOR STUDY Study results for publicly owned utilities were calculated The value of free or reduced cost services contributed by from two sources: data collected on the American Public the local government to the utility is deducted from total Power Association's"2016 Survey of Local Publicly Owned payments and contributions to arrive at net contributions.The Electric Utilities Tax Payments and Contributions to State net amount is then divided by electric utility revenue. and Local Government,"and data submitted by public power Net taxes for investor-owned utilities include state and local utilities to the Department of Energy's Energy Information Administration on Form EIA-861, `Annual Electric Utility taxes and fees as reported on pages 262-263 of FERC Form Report." 1.Federal taxes,social security taxes,similar contributions to state unemployment insurance,and other payroll taxes are A total of 188 utilities completed the 2016 survey. Form excluded. EIA-861 provided information on electric operating revenue. Payments and contributions for TVA distributors include an amount equal to 5 percent of the estimated cost of power purchased from TVA this payment is made by TVA—plus any payments in lieu of taxes or contributions made by the distribution utility.TVAs wholesale power contracts with municipalities limit payments in lieu of taxes to an amount not exceeding the state and local taxes that the system would pay if privately owned. Study results for investor-owned systems were calculated from data submitted on the 2016 Federal Energy Regulatory Commission Form 1, `Annual Report of Major Electric Utilities,Licensees and Others." The report includes only distribution utilities that are defined here as those with approximately 50 percent or more of their total kilowatt-hour sales going to retail customers.The investor-owned systems included in the study provide 95 percent of all full-service kilowatt-hour sales to investor-owned utility customers,and the public power utilities included in the study provide 25 percent of all kilowatt-hour sales to public power customers. Public power's payments and contributions to state and local governments include taxes and fees such as gross receipts taxes,property taxes(generally on property outside the city limits),franchise fees,payments to state public utility commissions,environmental fees,and licenses.Also included are payments in lieu of taxes or transfers to the general fund and the value of services such as free or reduced cost electricity, the use of electric department employees, and the use of electric department materials and equipment. Federal taxes,social security taxes,similar contributions to state unemployment insurance,and other payroll taxes are excluded. 10 Public Power Pays Back 165