Applicability of the Normalization Requirements of the Internal Revenue Code to Consolidated Tax Savings Adjustments: Scheduled for a Hearing Before the Subcommittee on Select Revenue Measures of the - Hardcover

U. S. Committee On Ways And Means

Hardcover

ISBN 10: 0666183856 ISBN 13: 9780666183859

Publisher: Forgotten Books, 2018

Synopsis

Understanding how consolidated tax savings affect regulated utility rates

This guide explains the differences between flow-through and normalization tax accounting and how they influence rate base and the price customers pay. It focuses on how consolidated returns and the allocation of tax liabilities can change what a utility must charge.

The material outlines the key concepts regulators consider when setting rates, including how tax expenses are treated and how deferred tax reserves can act as a no-cost source of capital. It also discusses the rules for allocating tax liabilities among affiliates and the two main complementary methods used with consolidated groups.

• What flow-through and normalization accounting mean for current and future rates
• How consolidated tax returns can lower overall group tax liability
• How deferred tax reserves interact with rate base and the return on investment
• The methods utilities use to allocate consolidated tax liabilities among group members

Ideal for readers of policy, law, and public utility regulation who want a practical overview of how these tax rules shape ratemaking decisions and ratepayer impacts.

Edition details

• Publisher: Forgotten Books
• Publication date: 2018
• Language: English
• ISBN 10: 0666183856
• ISBN 13: 9780666183859
• Binding: Hardcover
• Number of pages: 46