H.R. 2493 (Utility Customer Refund Act of 1989) : Scheduled for Markup By the House Committee On Ways And Means On October 11, 1989 Jcx-63-89
H.R. 2493 (Utility Customer Refund Act of 1989) : Scheduled for Markup By the House Committee On Ways And Means On October 11, 1989 Jcx-63-89
United States. Congress. Joint Committee On Taxation
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2493 (Utility Customer Refund Act of 1989) Explanation of Provisions H.R. 2493 would provide that, in order for a public utility to be considered to be using a normalization method of accounting, adjusted excess tax reserves could be reduced no faster than the more rapid of whichever of the following methods would result in the more rapid reduction of such reserve: (1) ratable monthly amortization over a 36-month period, or (2) the average rate assumption method of present law. For purposes of ...the bill, the adjusted excess tax reserve means the balance of the excess deferred tax reserve (as defined in sec. 203(e) of the 1986 Act) as of January 1, 1991. Although not a part of H.R. 2493, the sponsor of the bill, Mr. Matsui, intends that public utility commissions, in making the determination on the treatment of excess deferred taxes, should consider the following factors: 1) The near-term and short-term benefits to residential, business, and industrial ratepayers and wholesale customers; 2) Rate stability; 3) The ability of utilities to borrow capital; 4) Needed utility system improvements; 5) Unfunded nuclear power plant decommissioning costs; 6) Unfunded acid rain abatement costs; and 7) Existing deficiencies in deferred income tax reserves.
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