[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: 18CFR2.67]

[Page 31]
 
           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. 2.67  Calculation of taxes for property of pipeline companies 
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, natural gas pipeline companies 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 
to 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. As to 
balances in Account No. 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 the rate base of 
natural gas pipeline companies in rate proceedings.

(Secs. 3, 4, 5, 8, 9, 10, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-
1066, 1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 
52 Stat. 822, 823, 825, 826; 76 Stat. 72; 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. 717c, 717d, 717g, 
717h, 717i, 717o))

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

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