[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR2.12]

[Page 21]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 2_GENERAL POLICY AND INTERPRETATIONS--Table of Contents
 
Sec. 2.12  Calculation of taxes for property of public utilities and 
licensees constructed or acquired after January 1, 1970.

    Pursuant to the provisions of section 441(a)(4)(A) of the Tax Reform 
Act of 1969, 83 Stat. 487, 625, public utilities and licensees regulated 
by the Commission under the Federal Power Act which have exercised the 
option provided by that section to change from flow through accounting 
will be permitted by the Commission, with respect to liberalized 
depreciation, to employ a normalization method for computing federal 
income taxes in their accounts and annual reports with respect to 
property constructed or acquired after January 1, 1970, to the extent 
with which such property increases the productive or operational 
capacity of the utility and is not a replacement of existing capacity. 
Such normalization will also be permitted for ratemaking purposes to the 
extent such rates are subject to the Commission's ratemaking authority. 
As to balances in Account 282 of the Uniform System of Accounts, 
``Accumulated deferred income taxes--Other property,'' it will remain 
the Commission's policy to deduct such balances from rate base in rate 
proceedings.

(Secs. 3, 4, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-1066, 1068, 
1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82 Stat. 617; 
16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c, 825g, 825h, 
826i), as amended, Secs. 8, 10, and 16 (52 Stat. 825-826, 830; 15 U.S.C. 
717g, 717i, 717o))

[Order 404, 35 FR 7964, May 23, 1970, as amended by Order 567, 42 FR 
30612, June 16, 1977]