(a) The licensee shall, on or before April 1st of each year, file with the commission:
  (1) an audited financial statement showing its gross receipts for the preceding calendar year;
  (2) a statement in a form prescribed by the executive director reflecting the licensee's revenues and allowable expenses for the previous calendar year from its low-level radioactive waste disposal activities; and
  (3) a validation of payments made in §336.103(f) and (g) of this title (relating to Schedule of Fees for Subchapter H Licenses) must also be included.
(b) The financial statement as specified in subsection (a) of this section shall be prepared in accordance with Generally Accepted Accounting Principles and audited by a Certified Public Accounting (CPA) firm. The audited financial statement shall include an Auditor's Report from the CPA indicating an "unqualified" opinion of the licensee's financial statements.
(c) In addition to the financial statement on gross receipts, the licensee shall provide an audited cost statement that provides all investment and operating costs for the preceding calendar year.
(d) In addition to information submitted under this section, all revenues and costs shall be provided by the licensee upon request by the executive director to consider revision of rates under §336.1305(c) of this title (relating to Commission Powers.)
(e) Except as provided by subsection (f) of this section, the commission may not allow as capital cost or as allowable expenses a payment to an affiliate for:
  (1) the cost of service, property, right, or other item; or
  (2) interest expense.
(f) The commission may allow a payment described by subsection (e) of this section only to the extent that the commission finds the payment is reasonable and necessary for each item or class of items as determined by the commission.
(g) A finding under subsection (f) of this section must include:
  (1) a specific finding of the reasonableness and necessity of each item or class of items allowed; and
  (2) a finding that the price charged to the licensee is not higher than the prices charged by the supplying affiliate for the same item or class of items to:
    (A) its other affiliates or divisions; or
    (B) a nonaffiliated person within the same market area or having the same market conditions.
(h) In making a finding regarding an affiliate transaction, the commission shall:
  (1) determine the extent to which the conditions and circumstances of that transaction are reasonably comparable relative to quantity, terms, date of contract, and place of delivery; and
  (2) allow for appropriate differences based on that determination.
(i) If the commission finds that an affiliate expense for the test period is unreasonable, the commission shall:
  (1) determine the reasonable level of the expense; and
  (2) include that expense in determining the licensee's cost of service.

Source Note: The provisions of this §336.1315 adopted to be effective March 12, 2009, 34 TexReg 1688