[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: 18CFR35.18]

[Page 278]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 35_FILING OF RATE SCHEDULES AND TARIFFS--Table of Contents
 
                   Subpart C_Other Filing Requirements
 
Sec. 35.18  Asset retirement obligations.

    (a) A public utility that files a rate schedule under Sec. 35.12 or 
Sec. 35.13 and has recorded an asset retirement obligation on its books 
must provide a schedule, as part of the supporting work papers, 
identifying all cost components related to the asset retirement 
obligations that are included in the book balances of all accounts 
reflected in the cost of service computation supporting the proposed 
rates. However, all cost components related to asset retirement 
obligations that would impact the calculation of rate base, such as 
electric plant and related accumulated depreciation and accumulated 
deferred income taxes, may not be reflected in rates and must be removed 
from the rate base calculation through a single adjustment.
    (b) A public utility seeking to recover nonrate base costs related 
to asset retirement costs in rates must provide, with its filing under 
Sec. 35.12 or Sec. 35.13, a detailed study supporting the amounts 
proposed to be collected in rates.
    (c) A public utility that has recorded asset retirement obligations 
on its books, but is not seeking recovery of the asset retirement costs 
in rates, must remove all asset-retirement-obligations-related cost 
components from the cost of service supporting its proposed rates.

[Order 631, 68 FR 19619, Apr. 21, 2003]