83 FR 59295 - Accounting and Ratemaking Treatment of Accumulated Deferred Income Taxes and Treatment Following the Sale or Retirement of an Asset
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 83, Issue 226 (November 23, 2018)
Federal Energy Regulatory Commission
Federal Register Volume 83, Issue 226 (November 23, 2018)
| Page Range | 59295-59303 | |
| FR Document | 2018-25372 |
[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)] [Rules and Regulations] [Pages 59295-59303] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25372] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Parts 35, 101, 154, 201, and 352 [Docket No. PL19-2-000] Accounting and Ratemaking Treatment of Accumulated Deferred Income Taxes and Treatment Following the Sale or Retirement of an Asset AGENCY: Federal Energy Regulatory Commission, Department of Energy. ACTION: Policy statement. ----------------------------------------------------------------------- SUMMARY: In this Policy Statement, the Federal Energy Regulatory Commission (Commission) states its policy regarding the treatment of Accumulated Deferred Income Taxes for both accounting and ratemaking purposes as to Commission-jurisdictional public utilities, natural gas pipelines and oil pipelines, in light of the Tax Cuts and Jobs Act of 2017. In addition, the Commission addresses the accounting and ratemaking treatment of Accumulated Deferred Income Taxes following the sale or retirement of an asset. DATES: This Policy Statement will become applicable November 23, 2018. FOR FURTHER INFORMATION CONTACT: Sharli Silva (Legal Information), Office of the General Counsel, 888 First Street NE, Washington, DC 20426, (202) 502-8719, [email protected]. Bryan Wheeler (Technical Information), Office of Energy Markets Regulation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8497, [email protected]. Monil Patel (Technical Information), Office of Energy Markets Regulation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8296, [email protected]. Kimberly Horner (Technical Information), Office of Enforcement, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8623, [email protected]. SUPPLEMENTARY INFORMATION: 1. In this Policy Statement, the Federal Energy Regulatory Commission (Commission) states its policy regarding the treatment of Accumulated Deferred Income Taxes (ADIT) for both accounting and ratemaking purposes as to Commission-jurisdictional public utilities, natural gas pipelines, and oil pipelines, in light of the Tax Cuts and Jobs Act of 2017.\1\ The Commission also addresses the accounting and ratemaking treatment of ADIT following the sale or retirement of an asset. --------------------------------------------------------------------------- \1\ An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Public Law 115-97, 131 Stat. 2054 (2017) (Tax Cuts and Jobs Act). --------------------------------------------------------------------------- I. Background A. Tax Cuts and Jobs Act 2. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act, among other things, reduced the federal corporate income tax rate from 35 percent to 21 percent, effective January 1, 2018.\2\ This means that, beginning January 1, 2018, companies subject to the Commission's jurisdiction will compute income taxes owed to the Internal Revenue Service (IRS) based on a 21 percent tax rate. The tax rate reduction will result in less corporate income tax expense going forward. --------------------------------------------------------------------------- \2\ Id. Sec. 13001, 131 Stat. at 2096. --------------------------------------------------------------------------- 3. Importantly, the tax rate reduction will also result in a reduction in ADIT liabilities and ADIT assets on the books of rate- regulated companies. ADIT balances are accumulated on the regulated books and records of such regulated companies based on the requirements of the Uniform System of Accounts (USofA).\3\ ADIT arises from timing differences between the method of computing taxable income for reporting to the IRS and the method of computing income for regulatory accounting and ratemaking purposes.\4\ As a result of the Tax Cuts and Jobs Act reducing the federal corporate income tax rate from 35 percent to 21 percent, a portion of an ADIT liability that was collected from customers will no longer be due from public utilities, natural gas pipelines and oil pipelines to the IRS and is considered excess ADIT. --------------------------------------------------------------------------- \3\ See Definition of Accounts 182.3 and Account 254, 18 CFR part 101, Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act; see Definition of Accounts 182.3 and Account 254, 18 CFR part 201, Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act; see General Instructions 1-12, Accounting for Income Taxes, 18 CFR part 352, Uniform Systems of Accounts Prescribed for Oil Pipeline Companies Subject to the Provisions of the Interstate Commerce Act. \4\ See 18 CFR 35.24(d)(2) (2018). --------------------------------------------------------------------------- B. Order No. 144 4. The purpose of tax normalization is to match the tax effects of costs and revenues with the recovery in rates of those same costs and revenues.\5\ As [[Page 59296]] noted above, timing differences may exist between the method of computing taxable income for reporting to the IRS and the method of computing income for regulatory accounting and ratemaking purposes. The tax effects of these differences are placed in a deferred tax account to be used in later periods when the differences reverse.\6\ --------------------------------------------------------------------------- \5\ Tax Normalization for Certain Items Reflecting Timing Differences in the Recognition of Expenses or Revenues for Ratemaking and Income Tax Purposes, Order No. 144, FERC Stats. & Regs. ] 30,254 at 31,522, 31,530 (1981), order on reh'g, Order No. 144-A, FERC Stats. & Regs. ] 30,340 (1982). \6\ Order No. 144, FERC Stats. & Regs. ] 30,254 at 31,554. --------------------------------------------------------------------------- 5. The Commission established this policy of tax normalization in Order No. 144 where it required use of ``the provision for deferred taxes [(i.e., ADIT)] as a mechanism for setting the tax allowance at the level of current tax cost.'' \7\ In keeping with this normalization policy, and as relevant to the Tax Cuts and Jobs Act's reduction of the federal corporate income tax rate, the Commission in Order No. 144 also required adjustments in the ADIT of public utilities' cost of service when excessive or deficient ADIT has been created as a result of changes in tax rates.\8\ Furthermore, the Commission required ``a rate applicant to compute the income tax component in its cost of service by making provision for any excess or deficiency in its deferred tax reserves resulting . . . from tax rate changes.'' \9\ The Commission required that such provision be consistent with a Commission-approved ratemaking method made specifically applicable to the rate applicant.\10\ Where no ratemaking method has been made specifically applicable, the Commission required the rate applicant to advance some method in its next rate case.\11\ The Commission stated that it would determine the appropriateness of any proposed method on a case-by-case basis, but as the issue is resolved in a number of cases, a method with wide applicability may be adopted.\12\ The Commission codified the requirements of Order No. 144 in its regulations in 18 CFR 35.24.\13\ --------------------------------------------------------------------------- \7\ Id. at 31,530. \8\ Id. at 31,519. \9\ Order No. 144, FERC Stats. & Regs. ] 30,254 at 31,560. See also 18 CFR 35.24(c)(1)(ii); 18 CFR 35.24(c)(2). \10\ Order No. 144, FERC Stats. & Regs. ] 30,254 at 31,560. See also 18 CFR 35.24(c)(3). \11\ Order No. 144, FERC Stats. & Regs. ] 30,254 at 31,560. \12\ Id. See also 18 CFR 35.24(c)(3). \13\ Originally promulgated as part of Order No. 144, the regulatory text was redesignated as 18 CFR 35.25 in Order No. 144-A. See Order No. 144-A, FERC Stats. & Regs. ] 30,340 at 30,140. In Order No. 545, the Commission again redesignated the regulatory text to its present designation as 18 CFR 35.24. See Streamlining Electric Power Regulation, Order No. 545, FERC Stats. & Regs. ] 30,955, at 30,713 (1992) (cross-referenced at 61 FERC ]61,207). --------------------------------------------------------------------------- 1. Public Utilities--18 CFR 35.24 6. Originally promulgated in Order No. 144, the Commission's regulations in 18 CFR 35.24 provide requirements for the proper ratemaking treatment of the tax effects of all transactions for which there are timing differences.\14\ Under this section, a public utility must account for excess or deficient ADIT when computing the income tax component of its cost of service.\15\ Additionally, in accounting for this excess or deficient ADIT, a public utility is required to apply the ratemaking method that has been specifically approved by the Commission for that public utility.\16\ Where no such ratemaking method exists, a public utility may choose which ratemaking method to apply and the reasonableness of that ratemaking method will be determined on a case-by-case basis by the Commission.\17\ --------------------------------------------------------------------------- \14\ See id. \15\ See 18 CFR 35.24(c)(1)(ii), (c)(2). \16\ See 18 CFR 35.24(c)(3). \17\ See id. --------------------------------------------------------------------------- 2. Natural Gas Pipelines--18 CFR 154.305 7. Order No. 144 also promulgated the Commission's regulations regarding tax normalization for natural gas pipelines which were originally located in part 2 of the regulations as section 2.202.\18\ Order No. 144-A redesignated the tax normalization regulations for natural gas pipelines by removing them from part 2 of the Commission's regulations and placing them in part 154.\19\ Subsequently, Order No. 582 redesignated the regulatory text in that part with respect to natural gas pipelines to its current designation in section 154.305, and made various revisions in that section.\20\ The section requires a natural gas pipeline making a rate filing under the Natural Gas Act to compute the income tax component of its cost of service by using tax normalization for all transactions.\21\ More specifically, the section requires natural gas pipelines to reduce rate base by the balances that are properly recordable in USofA Account 281 (Accumulated deferred income taxes--accelerated amortization property), Account 282 (Accumulated deferred income taxes--other property), and Account 283 (Accumulated deferred income taxes--other).\22\ Conversely, rate base must be increased by balances that are properly recordable in Account 190 (Accumulated deferred income taxes).\23\ The section also requires natural gas pipelines to compute the income tax component in its cost of service by including a provision for amortizing excess or deficiency in deferred taxes. This is done by applying a Commission-approved ratemaking method made specifically applicable to the natural gas pipeline for determining the cost-of-service provision: (1) If the natural gas pipeline has not provided deferred taxes in the same amount that would have accrued had tax normalization always been applied or (2) if, as a result of changes in tax rates, the accumulated provision for deferred taxes becomes deficient in, or in excess of, amounts necessary to meet future tax liabilities.\24\ Similar to the tax normalization regulations for public utilities, if the Commission has not approved a specific ratemaking method specifically applicable to the natural gas pipeline, then the natural gas pipeline must use a previously approved ratemaking method.\25\ The Commission will determine whether such method is appropriate on a case-by-case basis.\26\ --------------------------------------------------------------------------- \18\ Order No. 144, FERC Stats. & Regs. ] 30,254. \19\ Order No. 144-A, FERC Stats. & Regs.] 30,340 at 30,140. The Commission deemed part 154 a more appropriate location because tax normalization is required to be used by natural gas pipelines in filing their rate applications and the regulations that govern the filing of such rate applications are located in part 154. Id. \20\ 18 CFR 154.305 (2018). See Order No. 582, Filing and Reporting Requirements for Interstate Natural Gas Company Rate Schedules and Tariffs, FERC Stats. & Regs. ] 31,025 (1995), order on reh'g, Order No. 582-A, FERC Stats. & Regs. ] 31,043 (1996), order on clarification, FERC Stats. & Regs. ] 31,037 (1996). The tax normalization regulations were moved from 18 CFR 154.63a to 154.305. \21\ 18 CFR 154.305. \22\ 18 CFR 154.305(c)(1). \23\ Id. \24\ 18 CFR 154.305(d). Such amounts must be included as an addition or reduction to rate base until the deficiency or excess is fully amortized using the Commission approved ratemaking method. Id. \25\ 18 CFR 154.305(d)(3). \26\ Id. --------------------------------------------------------------------------- 3. Oil Pipelines 8. Unlike the Commission's regulations applicable to public utilities and natural gas pipelines, there is no tax normalization section under the Commission's regulations for oil pipelines. Instead, the Commission's regulations for oil pipelines under the USofA General Instructions, 1-12 Accounting for Income Taxes, require that when income tax rates are changed, oil pipelines reduce or increase their ADIT balances immediately by the full amount of the excess or deficient tax reserve.\27\ Specifically, section (b) requires oil pipelines to apply the [[Page 59297]] enacted tax rate in determining the amount of deferred taxes and adjust their deferred tax liabilities and assets for the effect of the change in tax law or rates in the period that the change is enacted.\28\ The section further requires the adjustment to be recorded in the appropriate deferred tax balance sheet accounts based on the nature of the temporary difference and the related classification requirements of the account.\29\ --------------------------------------------------------------------------- \27\ 18 CFR part 352, General Instructions 1-12, Accounting for Income Taxes. \28\ Id. \29\ Id. --------------------------------------------------------------------------- 4. Prior Accounting Guidance for Public Utilities and Natural Gas Pipelines 9. In Docket No. AI93-5-000, the Chief Accountant issued accounting guidance on the proper accounting for income taxes.\30\ Among other matters, the accounting guidance directed public utilities and natural gas companies to adjust their deferred tax liabilities and assets for the effect of the change in tax law or rates in the period that the change is enacted.\31\ The guidance stated that adjustments should be recorded in the appropriate deferred tax balance sheet accounts (Accounts 190, 281, 282 and 283) based on the nature of the temporary difference and the related classification requirements of the accounts.\32\ Further, if as a result of action by a regulator, it is probable that the future increase or decrease in taxes payable due to the change in tax law or rates will be recovered from or returned to customers through future rates, an asset or liability should be recognized in Account 182.3 (Other Regulatory Assets), or Account 254 (Other Regulatory Liabilities), as appropriate, for that probable future revenue or reduction in future revenue.\33\ --------------------------------------------------------------------------- \30\ See Accounting for Income Taxes, Docket No. AI93-5-000, at Item 8 (Apr. 23, 1993). \31\ Id. \32\ Id. \33\ Id. --------------------------------------------------------------------------- C. Notice of Inquiry 10. Following the enactment of the Tax Cuts and Jobs Act, the Commission issued a Notice of Inquiry seeking comments on, among other things, whether, and if so, how, the Commission should address the effects on ADIT of the Tax Cuts and Jobs Act.\34\ The Commission noted that the Tax Cuts and Jobs Act's reduction to the federal corporate income tax rate would potentially create excess or deficient ADIT on the books of public utilities.\35\ As relevant to the guidance provided in this Policy Statement, the Commission sought comments on the treatment of ADIT for assets sold or retired after December 31, 2017, and the amortization of excess and deficient ADIT.\36\ --------------------------------------------------------------------------- \34\ Inquiry Regarding the Effect of the Tax Cuts and Jobs Act on Commission-Jurisdictional Rates, FERC Stats. & Regs. ] 35,582 (2018) (NOI). In this Policy Statement, we refer to the comments filed in response to the NOI. A list of commenters in that proceeding and the abbreviated names used in this Policy Statement appears in Appendix A. \35\ NOI, FERC Stats. & Regs. ] 35,582 at P 13. \36\ Id. PP 20-22. --------------------------------------------------------------------------- II. Discussion 11. This Policy Statement states our requirements regarding the treatment of ADIT in light of the tax rate reduction implemented in the Tax Cuts and Jobs Act. Specifically, we provide guidance regarding: (1) The accounts in which public utilities, natural gas pipelines, and oil companies should record the amortization of excess and/or deficient ADIT for accounting purposes and ratemaking purposes and (2) whether, and if so how, such entities should address excess and/or deficient ADIT that is recorded on the books of public utilities, natural gas pipelines, and oil companies after December 31, 2017, as a result of assets being sold or retired for both accounting and ratemaking purposes. 12. First, we clarify that for both accounting purposes and ratemaking purposes, public utilities and natural gas companies should record the amortization of the excess and/or deficient ADIT recorded in Account 254 (Other Regulatory Liabilities) and/or Account 182.3 (Other Regulatory Assets) by recording the offsetting entries to Account 410.1 (Provision for Deferred Income Taxes, Utility Operating Income) or Account 411.1 (Provision for Deferred Income Taxes--Credit, Utility Operating Income), as required by the USofA. We further clarify that for accounting purposes oil pipelines should adjust their ADIT balances to reflect the change in federal income tax rates with offsetting entries to the appropriate income statement account, as required by the USofA. Accordingly, oil pipeline companies will not record excess or deficient ADIT for accounting purposes. As detailed below, we also clarify that oil pipelines should provide additional disclosures in the Notes that accompany their FERC Form No. 6, Annual Report of Oil Pipeline Companies (Form No. 6). 13. Second, for accounting purposes, we reiterate that public utilities and natural gas pipelines must continue to follow the accounting guidance issued by the Chief Accountant in Docket No. AI93- 5-000 with respect to changes in tax law or rates. To ensure transparency in the accounting adjustments to the deferred tax accounts, we clarify that entities should provide additional disclosures in their 2018 FERC annual financial filing within the Notes to the Financial Statements as detailed below. 14. With respect to ratemaking, for a public utility or natural gas pipeline that continues to have an income tax allowance, any excess or deficient ADIT associated with an asset must continue to be amortized in rates even after the sale or retirement of that asset. This excess or deficient ADIT will continue to be refunded to or recovered from ratepayers based on the schedule that was initially established. Similarly, for ratemaking purposes oil pipelines should keep records of excess and deficient ADIT. A. In Which Accounts Should Companies Record Amortization of Excess and Deficient ADIT 15. In the NOI, the Commission sought comment on whether a public utility or natural gas pipeline should record the amortization by recording a reduction to the regulatory asset or regulatory liability account and recording an offsetting entry to Account 407.3 (Regulatory Debits) or Account 407.4 (Regulatory Credits).\37\ For oil pipelines, the Commission sought comment on whether this information should be recorded in Account 665 (Unusual or Infrequent Items (Debit)) or Account 645 (Unusual or Infrequent Items (Credit)).\38\ --------------------------------------------------------------------------- \37\ NOI, FERC Stats. & Regs. ] 35,582 at P 22. \38\ Id. --------------------------------------------------------------------------- 1. Comment Summary 16. Ameren takes issue with the premise of the Commission's question that a separate regulatory liability or asset account is necessary to record excess or deficient ADIT, respectively, arguing that the excess or deficient ADIT should remain in the accounts where they were originally recorded.\39\ APPA and AMP, along with Indicated Customers, argue that it would be both appropriate and transparent to record the excess ADIT in the same ADIT accounts (e.g., Accounts 190, 282 and 283) where the original entries for the ADIT assets and ADIT liabilities were established, but believe separate regulatory liability and/or asset accounts would also be appropriate.\40\ --------------------------------------------------------------------------- \39\ Ameren, Comments to NOI, Docket No. RM18-12-000, at 16 (filed May 21, 2018) (Ameren NOI Comments). \40\ APPA and AMP, Comments to NOI, Docket No. RM18-12-000, at 16 (filed May 22, 2018) (APPA and AMP NOI Comments); Indicated Customers, Comments to NOI, Docket No. RM18-12-000, at 14 (filed May 21, 2018) (Indicated Customers NOI Comments). --------------------------------------------------------------------------- [[Page 59298]] 17. When separate regulatory liability or assets are used, commenters' viewpoints diverge on the appropriate account to record the offsetting entry. Certain commenters agree with the Commission's initial suggestion.\41\ PSEG states that Accounts 407.3 and 407.4 correspond to the appropriate balance sheet account where the excess deferred taxes reside.\42\ Regarding natural gas pipelines, Berkshire asserts that recording the amounts in Account 407.3 or 407.4 will be easier for FERC Form No. 2 users to understand because it will result in similar treatment to other IRS schedule M items and above the line accounting while avoiding the requirement to spread the total year's amortization over each month using the FASB Interpretation No. 18 method.\43\ --------------------------------------------------------------------------- \41\ Berkshire, Comments to NOI, Docket No. RM18-12-000, at 5-6 (filed May 22, 2018) (Berkshire NOI Comments); Consumer Advocates, Comments to NOI, Docket No. RM18-12-000, at 8-10 (filed May 21, 2018) (Consumer Advocates NOI Comments); DEMEC, Comments to NOI, Docket No. RM18-12-000, at 16 (filed May 21, 2018) (DEMEC NOI Comments); PSEG, Comments to NOI, Docket No. RM18-12-000, at 10-11 (filed May 22, 2018) (PSEG NOI Comments); TransCanada, Comments to NOI, Docket No. RM18-12-000, at 25 (filed May 21, 2018) (TransCanada NOI Comments). \42\ PSEG NOI Comments at 10-11. \43\ Berkshire NOI Comments at 5-6. --------------------------------------------------------------------------- 18. Other commenters believe that either Accounts 407.3 and 407.4 or 410.1 (Provision for deferred income taxes, utility operating income) and 411.1 (Provision for deferred income taxes) are appropriate. Avangrid asserts that Account 407 is consistent with the fact that the excess deferred tax obligation ceased upon tax reform enactment and that the utilities will prospectively amortize a regulatory deferral, rather than a deferred tax liability; however, use of Account 411 is consistent with USofA requirements.\44\ EEI and INGAA state that their members' opinions are split between the two accounting options and request that the Commission recognize that both approaches may be appropriate.\45\ --------------------------------------------------------------------------- \44\ Avangrid, Comments to NOI, Docket No. RM18-12-000, at 12-13 (May 22, 2018) (Avangrid NOI Comments). \45\ EEI, Comments to NOI, Docket No. RM18-12-000, at 19-20 (filed May 22, 2018) (EEI NOI Comments); INGAA, Comments to NOI, Docket No. RM18-12-000, at 12 (filed June 5, 2018) (INGAA NOI Comments). --------------------------------------------------------------------------- 19. Many other commenters believe that only Accounts 410.1 and 411.1 are appropriate.\46\ New York Transco notes that those accounts were originally used when the regulatory asset or regulatory liability was established.\47\ --------------------------------------------------------------------------- \46\ Ameren NOI Comments at 16; APPA and AMP NOI Comments at 16; Dominion Energy Gas Pipelines, Comments to NOI, Docket No. RM18-12- 000, at 14-15 (filed May 21, 2018) (Dominion Energy Gas Pipelines NOI Comments); Enable Interstate Pipelines, Comments to NOI, Docket No. RM18-12-000, at 39-40 (filed May 21, 2018) (Enable Interstate Pipelines NOI Comments); Indicated Customers, Comments to NOI, Docket No. RM18-12-000, at 10 (filed May 21, 2018) (Indicated Customers NOI Comments); Indicated Local Distribution Companies, Comments to NOI, Docket No. RM18-12-000, at 11 (filed May 22, 2018) (Indicated Local Distribution Companies NOI Comments); New York Transco, Comments to NOI, Docket No. RM18-12-000, at 10 (filed May 22, 2018) (New York Transco NOI Comments). \47\ New York Transco NOI Comments at 10. --------------------------------------------------------------------------- 20. Regarding oil pipelines, AOPL states with respect to regulatory accounting under the USofA, any excess ADIT is eliminated when tax rates change consistent with generally accepted accounting principles, rather than being reduced over time through amortization. AOPL states there is no reason to change either the Commission's accounting rules or current oil pipeline accounting practices; the Commission's ratemaking precedent controls rather than accounting rules for purposes of setting cost-of-service rates.\48\ --------------------------------------------------------------------------- \48\ AOPL, Comments to NOI, Docket No. RM18-12-000, at 16 (filed May 22, 2018) (AOPL NOI Comments). --------------------------------------------------------------------------- 2. Determination a. Accounting Guidance 21. We clarify that public utilities and natural gas pipelines should record the amortization of the excess and/or deficient ADIT recorded in Account 254 (Other Regulatory Assets) and/or Account 182.3 (Other Regulatory Assets) by recording the offsetting entries to Account 410.1 (Provision for Deferred Income Taxes, Utility Operating Income) or Account 411.1 (Provision for Deferred Income Taxes--Credit, Utility Operating Income), as appropriate. As explained below, recording the amortization in Account 410.1 and Account 411.1 is consistent with the instructions for those accounts as detailed in the Commission's regulations and provides more transparency as compared with recording the amounts in Account 407.3 and Account 407.4 because the specific source of the regulatory asset or regulatory liability will be known. 22. The Commission's instructions for Account 182.3 provide in part ``[w]hen specific identification of the particular source of a regulatory asset cannot be made . . . account 407.4, regulatory credits, shall be credited.'' \49\ Similarly, the Commission's instructions for Account 254 state in part ``[w]hen specific identification of the particular source of the regulatory liability cannot be made . . . account 407.3, regulatory debits, shall be debited.'' \50\ --------------------------------------------------------------------------- \49\ See Definition of Account 182.3, 18 CFR part 101, Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act; Definition of Account 182.3, 18 CFR part 201, Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act. \50\ See Definition of Account 254, 18 CFR part 101, Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act; Definition of Account 254, 18 CFR part 201, Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act. --------------------------------------------------------------------------- 23. In contrast, Account 410.1 and Account 411.1 are specifically designated for the recordation of ADIT.\51\ In this situation where, as a result of a change in tax law or rates, excess and/or deficient ADIT have been reclassified to Account 254 and/or Account 182.3, in accordance with the Commission's prior guidance,\52\ specific identification of the source of the regulatory liability and/or regulatory asset can be made. Accordingly, the Commission's existing regulations support amortizing the excess and/or deficient ADIT recorded in Account 254 and/or Account 182.3 to Account 410.1 or Account 411.1, as appropriate and consistent with the manner such amounts are reflected in rates. --------------------------------------------------------------------------- \51\ See Definition of Account 410.1 and 411.1, 18 CFR part 101, Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act; Definition of Account 410.1 and 411.1, 18 CFR part 201, Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act. \52\ See Accounting for Income Taxes, Docket No. AI93-5-000, at Item 8 (Apr. 23, 1993). --------------------------------------------------------------------------- 24. With respect to oil pipelines, deferred tax balances should be adjusted for the effect of changes in tax law or rates in the period the change is enacted in accordance with the USofA for oil pipelines.\53\ Specifically, upon the enactment of the Tax Cuts and Jobs Act, oil pipelines should have reduced their ADIT balances to reflect the 21 percent federal income tax rate with offsetting entries to the appropriate income statement account.\54\ We believe the current guidance set forth in the USofA is appropriate and will not require oil pipelines to account for excess or deficient ADIT or record the amortization of such amounts. However, to ensure transparency with respect to these ADIT adjustments, oil pipelines should disclose in the Notes to their Form No. 6 financial statements, the amounts of their ADIT adjustments resulting from the change in the federal corporate income tax rate, supported by [[Page 59299]] a schedule that illustrates the calculation of the revised balances. Because the accounting for the excess and/or deficient ADIT may create differences between oil pipelines' accounting and ratemaking, such differences should also be disclosed in the Notes to their Form No. 6 financial statements, Form No. 6 Page 230, Analysis of Federal Income and Other Taxes Deferred, and Page 700, Annual Cost of Service Based Analysis Schedule. --------------------------------------------------------------------------- \53\ See 18 CFR part 352, General Instructions 1-12(b), Accounting for Income Taxes. See also, 18 CFR part 352, Instructions for Balance Sheet Accounts, 19-5 Current Deferred Income Tax Assets, 45 Accumulated Deferred Income Tax Assets, 59 Deferred Income Tax Liabilities, and 64 Accumulated Deferred Income Tax Liabilities. \54\ Id. --------------------------------------------------------------------------- b. Ratemaking Guidance 25. With respect to public utilities, the appropriate ratemaking treatment will be addressed in the Notice of Proposed Rulemaking (NOPR) we are issuing concurrent with this Policy Statement. In the NOPR, we are proposing to require all public utility transmission providers with transmission rates under an Open Access Transmission Tariff (OATT), a transmission owner tariff, or a rate schedule to revise those rates to account for changes caused by the Tax Cuts and Jobs Act. Natural gas pipelines should continue to file for changes in rates consistent with sections 154.305, 154.312, and 154.313 of the Commission's regulations.\55\ --------------------------------------------------------------------------- \55\ 18 CFR 154.305, 154.312, 154.313 (2018). Section 154.313 should be used if the filing requests a minor rate change. --------------------------------------------------------------------------- 26. For oil pipelines, the current regulatory treatment of excess and/or deficient ADIT amounts is to maintain such amounts separately for rate making purposes only and to amortize them by removing the annual amortization amount from the cost of service in the process of determining an income tax allowance. We will continue the practice of amortizing and removing the excess and or deficiency by reducing the allowed return before it is grossed up for income taxes. B. Whether, and If So How, To Address Excess ADIT That Is Removed From the Books of Public Utilities, Natural Gas Pipelines, and Oil Pipelines After December 31, 2017, as a Result of Assets Being Sold or Retired 27. In the NOI, the Commission sought comment on whether, and if so how, it should address excess ADIT that is removed from the books of public utilities, natural gas pipelines, and oil pipelines after December 31, 2017, as a result of assets being sold or retired.\56\ --------------------------------------------------------------------------- \56\ NOI, FERC Stats. & Regs. ] 35,582 at P 20. --------------------------------------------------------------------------- 1. Comment Summary 28. Both public utility and natural gas pipeline commenters note that, to date and in response to the last time Congress changed the federal corporate income tax rate, the IRS only has issued guidance on the disposition of excess ADIT in the context of extraordinary retirements.\57\ They suggest that the Commission defer addressing excess ADIT that is removed from the books as a result of assets being sold or retired unless and until the IRS has had an opportunity to weigh in on this issue.\58\ --------------------------------------------------------------------------- \57\ See Treas. Reg. 26 CFR 1.168(i)-3, Treatment of Excess Deferred Income Tax Reserve Upon Disposition of Deregulated Public Utility Property. \58\ Avangrid NOI Comments at 11; EEI NOI Comments at 19; Ameren NOI Comments at 15; EQT Midstream, Comments to NOI, Docket No. RM18- 12-000, at 14 (filed May 21, 2018) (EQT Midstream NOI Comments); Indicated Transmission Owners, Comments to NOI, Docket No. RM18-12- 000, at 10 (filed May 22, 2018); Dominion Energy Gas Pipelines NOI Comments at 13. --------------------------------------------------------------------------- 29. Certain public utilities argue that, for companies that properly reflect Average Rate Assumption or the Reverse South Georgia Method and have formula rates that reflect ADIT balances and adjustments thereto, there is no need for the Commission to address excess ADIT that is removed from the books after December 2017 as a result of assets being sold or retired.\59\ --------------------------------------------------------------------------- \59\ Ameren NOI Comments at 14, MISO Transmission Owners, Comments to NOI, Docket No. RM18-12-000, at 14 (filed May 21, 2018). --------------------------------------------------------------------------- 30. Similarly, several natural gas pipelines contend that Commission precedent is clear that when assets are sold or transferred as part of a taxable event, the ADIT balance associated with those assets is extinguished; similarly, deferred liabilities resulting from excess ADIT are also extinguished following the retirement of an asset. These pipelines believe that the Commission has provided no basis for departing from these clear rules.\60\ These pipelines note that the Commission has stated that ``ADIT balances consist of deferred taxes that are intended to be paid at a future time--when the taxes become due. When a taxable event occurs such as the sale of assets . . . taxes are due and the ADIT balances are reduced to zero;'' thus, the ``ADIT balances that existed prior to the sale no longer exist and are no longer an offset against rate base.'' \61\ These pipelines state the NOI explained that any ADIT associated with assets that are sold are removed from the regulated entity's ``books because any previously deferred tax effects related to the assets are now triggered as part of the computation of gains or losses associated with the sale (i.e., the deferred taxes are now payable to the IRS).'' \62\ --------------------------------------------------------------------------- \60\ EQT Midstream NOI Comments at 14; INGAA NOI Comments at 11- 12; Tallgrass, Comments to NOI, Docket No. RM18-12-000, at 12-13 (filed May 21, 2018); AOPL NOI Comments at 14-15; Enable Interstate Pipelines, Comments to NOI, Docket No. RM18-12-000, at 40 (filed on May 21, 2018). \61\ Id. (citing Enbridge Pipeline (KPC), 102 FERC ] 61,310, at PP 5, 68 (2003)). \62\ Id. (citing NOI, FERC Stats. & Regs. ] 35,582 at P 20). --------------------------------------------------------------------------- 31. Eversource and Exelon submit that treatment of ADIT balances is best addressed on a company-specific basis and that companies should be able to either remove the ADIT associated with assets removed from their books or continue to amortize those balances over the remaining amortization period.\63\ Indicated Local Distribution Companies suggest that any future sale or retirement event should be decided as part of a pipeline's general rate proceeding.\64\ --------------------------------------------------------------------------- \63\ Eversource, Comments to NOI, Docket No. RM18-12-000, at 10 (filed May 22, 2018); Exelon, Comments to NOI, Docket No. RM18-12- 000, at 14 (filed May 22, 2018). \64\ Indicated Local Distribution Companies NOI Comments at 9. --------------------------------------------------------------------------- 32. Other commenters urge the Commission to require regulated entities to return any excess ADIT associated with any sold or retired assets. They argue that the Commission should be guided by the principle that all excess ADIT balances were provided by customers and thus customers should be credited with such balances through the combination of a credit to amortization expense and the continued offset to rate base. In support, they assert that when a public utility sells a jurisdictional asset, it will remove from its books the entire ADIT associated with a sold asset, which does not transfer with the asset to the new owner, and retain the entire ADIT for investors. Thus, customers are never credited with the excess or any other part of the ADIT that they have been paying during the useful life of the asset prior to its sale.\65\ --------------------------------------------------------------------------- \65\ Consumer Advocates NOI Comments at 8; Indicated Customers NOI Comments at 10-11; DEMEC NOI Comments, Kumar Test. at P 14. --------------------------------------------------------------------------- 33. Indicated Customers note that with regard to the sale of public utility assets for which there is an excess ADIT balance remaining on the books, the 2006 IRS Private Letter Ruling No. PLR-168537-02 prohibits the return to ratepayers of that ADIT and excess ADIT related to the asset that is being sold, because any ADIT and excess ADIT amounts that are on the books for that asset cease to exist as of the date of sale.\66\ Notwithstanding, Indicated [[Page 59300]] Customers, and APPA and AMP argue that the impact of not returning both the ADIT and excess ADIT, prior to the sale, and the consequent appropriation of customer-provided capital, should be given consideration in the Commission's evaluation of the application seeking approval of the asset transfer. If the ADIT and excess ADIT are not considered in the transfer transaction, they contend that the selling entity would receive a windfall to the detriment of ratepayers. Further, the acquiring utility could have no offsetting ADIT in its rate base related to the purchased assets, thereby causing an increase in rates to customers, in addition to the customers' loss of capital advanced to the selling utility.\67\ --------------------------------------------------------------------------- \66\ I.R.S. P.L.R., 168537-02 at 9 (May 25, 2006) (``Because [t]axpayer has sold the assets that generated the [accumulated deferred investment tax credit] ADITC, the asset for which regulated depreciation expense is computed is no longer available. Consequently, no portion of the related unamortized ADITC remaining at the date of sale may be returned to ratepayers by amortizing those ADITC amounts over the period [t]axpayer recovers stranded costs from its ratepayers or by decreasing the net loss from the sale of the nuclear generating assets by those ADITC amounts. Additionally, the unamortized [accumulated deferred investment tax credit] and [excess deferred federal income taxes] associated with the sold generating assets ceases to exist at the date of sale.''). APPA and AMP argue that this Private Letter Ruling can be read to have no bearing on the flowback of unprotected ADIT balances. APPA and AMP NOI Comments at n. 8. \67\ Indicated Customers NOI Comments at 10-11; APPA and AMP NOI Comments at 13-14. --------------------------------------------------------------------------- 34. Commenters that believe that the Commission should require ADIT balances be returned to the customers offer several suggestions. APPA and AMP suggest that in the case of a sale or early retirement of public utility assets, the flowback should occur immediately in the formula rate update after the event; otherwise, the flowback should be in the form of a lump-sum payment or credit.\68\ Indicated Customers suggest that the Commission should consider deploying remedies it has used in proceedings under FPA section 203, such as establishing an open season for customers to terminate their contracts, a commitment by applicants to protect customers from any adverse rate impacts, rate moratorium or rate reduction.\69\ Natural Gas Indicated Shippers suggest that the excess ADIT associated with sold or retired assets should be amortized and returned to the customers in the same manner a pipeline proposes to return excess ADIT due to tax cost changes.\70\ --------------------------------------------------------------------------- \68\ APPA and AMP NOI Comments at 13-14. \69\ Indicated Customers NOI Comments at 11-12 (citing Inquiry Concerning the Commission's Merger Policy Under the Federal Power Act: Policy Statement, Order No. 592, FERC Stats. & Regs. ] 31,044 (1996), order on reconsideration, 79 FERC ] 61,321 (1997)). \70\ Tallgrass Pipelines, Comments to NOI, Docket No. RM18-12- 000, at 18 (filed May 22, 2018). --------------------------------------------------------------------------- 2. Determination a. Accounting Guidance 35. As discussed above, in 1993, the Chief Accountant issued guidance on how entities must account for the effect of a change in tax law or rates by adjusting its deferred tax liabilities and assets.\71\ This guidance remains unchanged, and requires an entity to adjust its deferred tax liabilities and assets for the effect of the change in tax law or rates in the period that the change is enacted.\72\ If as a result of action by a regulator, it is probable that the future increase or decrease in taxes payable due to a change in tax law or rates will be recovered from or returned to customers through future rates, an asset or liability shall be recognized in Account 182.3 (Other Regulatory Assets) for deficient ADIT, or Account 254 (Other Regulatory Liabilities) for excess ADIT, as appropriate.\73\ Because these deficient ADIT and excess ADIT balances can no longer be characterized as deferred tax amounts to be settled with the IRS, the sale or retirement of any assets as of January 1, 2018 would not automatically reverse these balances as tax timing differences. --------------------------------------------------------------------------- \71\ See Accounting for Income Taxes, Docket No. AI93-5-000, at Item 8 (Apr. 23, 1993). \72\ Id. \73\ Id. --------------------------------------------------------------------------- 36. Accordingly, for public utilities and natural gas pipelines, the excess and/or deficient ADIT recorded in Account 254 and/or Account 182.3 should continue to be recorded in those accounts and amortized to Accounts 410.1 and/or Account 411.1, if those balances are still deemed to be either refundable to or recoverable from ratepayers. If the rate treatment of those balances is instead disallowed, then those amounts shall be written off to Account 421 (Miscellaneous Non-Operating Income) or Account 426.5 (Other Deductions), as appropriate, in the year of the disallowance.\74\ --------------------------------------------------------------------------- \74\ See Definitions of Account 182.3 and Account 254, 18 CFR part 101, Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act; Definitions of Account 182.3 and Account 254, 18 CFR part 201, Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act. --------------------------------------------------------------------------- 37. We clarify that, for public utilities and natural gas pipelines, the balances of excess and deficient ADIT recorded in Account 254 and Account 182.3, respectively, continue to exist as regulatory liabilities and assets after an asset sale, in cases for which the excess and deficient ADIT do not transfer to the purchaser of the plant asset. Similarly, we clarify that public utilities and natural gas companies should continue to account for excess and deficient ADIT related to retirements as regulatory liabilities and assets. 38. We acknowledge that numerous current and deferred tax accounts as well as other accounts may be affected by reversals of ADIT account balances recorded on the books of public utilities and natural gas companies subject to the Commission's jurisdiction. Thus, in order to provide transparency regarding the accounting and rate treatment of amounts removed from the ADIT accounts, we clarify that public utilities and natural gas pipelines should disclose in their FERC annual financial filings within the Notes to the Financial Statements: (1) The FERC accounts affected; (2) how any ADIT accounts were re- measured in the determination of the excess or deficient ADIT amounts in Accounts 182.3 and 254; (3) the related amounts associated with the reversal and elimination of ADIT balances in those accounts; (4) the amount of excess and deficient ADIT that is protected and unprotected; (5) the accounts to which the excess or deficient ADIT will be amortized; and (6) the amortization period of the excess and deficient ADIT to be returned or recovered through rates for both protected and unprotected ADIT.\75\ Disclosures should also summarize the manner by which excess and deficient will be included in rates by rate jurisdiction. --------------------------------------------------------------------------- \75\ Public utilities should include this information in FERC Form No. 1 or 1-A and natural gas pipelines should include this information in FERC Form No. 2 or 2-A. --------------------------------------------------------------------------- 39. As for oil pipelines, as discussed above, ADIT balances will be reduced immediately by the full amount of the excess or deficient tax reserve in line with the USofA for oil pipelines outlined in General Instruction 1-12.\76\ --------------------------------------------------------------------------- \76\ General Instructions 1-12, Accounting for Income Taxes, 18 CFR part 352. --------------------------------------------------------------------------- b. Ratemaking Guidance 40. The Commission has previously found that the sale or retirement of an asset with an ADIT balance is usually deemed a taxable event under IRS rules, and, as such, the ADIT balance is extinguished as the deferred taxes then become payable to the appropriate government authorities, and there is no longer an ADIT balance to ``return'' to customers.\77\ However, we believe that [[Page 59301]] excess or deficient ADIT associated with post-December 31, 2017, asset dispositions and retirements should be treated differently for ratemaking purposes. For these assets, there are two associated balances: (1) The ADIT balance based on the 21 percent tax rate that will be owed to the IRS and (2) deficient ADIT or excess ADIT balances resulting from the reduced tax liability that will not be payable to the IRS upon the sale or retirement of the asset. While the ADIT balance that needs to be settled with the IRS would be extinguished following a sale, the deficient ADIT or excess ADIT balances is more reflective of a regulatory liability or asset, and no longer reflects deferred taxes that are still to be settled with the IRS and need not be extinguished. --------------------------------------------------------------------------- \77\ The Commission has found that master limited partnerships that were no longer entitled to an income tax allowance were not required to return any remaining ADIT balances. Inquiry Regarding the Commission's Policy for Recovery of Income Tax Costs, 162 FERC ] 61,227, order on reh'g, 164 FERC ] 61,030 (2018) (Revised Income Tax Policy Statement Order on Rehearing). However, as relevant here, the Commission found that ``[t]here is a critical distinction between adjustments to amortize excess or deficient ADIT to be included in future rates to account for changes in income tax rates, as opposed to a complete elimination of the income tax allowance. When income tax rates are merely reduced and an income tax allowance remains in future cost of service, it is appropriate to credit any excess in ADIT in the future cost of service.'' Revised Income Tax Policy Statement Order on Rehearing, 164 FERC ] 61,030 at P 20. Thus, in the case of retired or sold assets of regulated entities that continue to have an income tax allowance (and in the case of all regulated entities with excess and deficient ADIT), it is appropriate to credit any excess in ADIT in the future cost of service. --------------------------------------------------------------------------- 41. Additionally, we note that the rationale for continuing to amortize deficient ADIT or excess ADIT balances in rates upon sales or retirements of assets is substantively similar to the rationale for amortizing excess ADIT in rates for assets that have not been sold or retired. The difference is that for a sale or retirement, ADIT based on a 21 percent tax rate will be settled with the IRS immediately, while for an asset that is not sold or retired, the ADIT will be settled with the IRS over the remaining life of the asset as it depreciates. In other words, the difference between the ADIT for assets that are sold or retired and ADIT for assets that are not sold or retired is the timing of when companies will settle the 21 percent of ADIT with the IRS. In both scenarios, there is excess ADIT based on the 14 percent previously collected from the customers that will no longer be payable to the IRS. 42. While some commenters suggest that continuing to amortize excess or deficient ADIT following a sale or retirement would constitute a normalization violation based on certain IRS private letter rulings, the Commission notes that the IRS established a rulemaking proceeding and reversed its positions made in the PLR referenced by the commenters.\78\ Current IRS regulations speak specifically to the normalization requirements for sales and retirements as a result of the Tax Reform Act of 1986.\79\ These regulations permit the amortization of protected excess and/or deficient ADIT even in the event that the underlying asset associated with the ADIT has been sold or retired.\80\ That is, the selling jurisdictional entity can continue to amortize excess ADIT in rates after the sale without violating the IRS' normalization requirements. The only limitation imposed by the IRS is that the timing of the amortization must be similar to protected excess and/or deficient ADIT for which the underlying asset has not been sold or retired.\81\ --------------------------------------------------------------------------- \78\ See Application of Normalization Accounting Rules to Balances of Excess Deferred Income Taxes and Accumulated Deferred Investment Tax Credits of Public Utilities Whose Assets Cease To Be Public Utility Property, 73 FR 14,934 (Mar. 20, 2008); Application of Normalization Accounting Rules to Balances of Excess Deferred Income Taxes and Accumulated Deferred Investment Tax Credits of Public Utilities Whose Assets Cease to Be Public Utility Property, 70 FR 75,762 (Dec. 21, 2005) (notice of proposed rulemaking, notice of public hearing, and withdrawal of previous proposed regulations). \79\ 26 CFR 1.168(i)-3 (2018). This section of the IRS code does not apply to ordinary retirements within the meaning of 26 CFR 1.167(a)-11(d)(3)(ii) of the internal revenue regulations, and such retirements are excluded from this policy statement. \80\ Id. \81\ Id. --------------------------------------------------------------------------- 43. Consistent with the above discussion, oil pipelines should continue maintaining excess and/or deficient ADIT within the appropriate ADIT accounts for ratemaking purposes. When jurisdictional assets are retired or sold the oil pipeline should continue to amortize any excess and/or deficient amounts associated with those assets as part of the process of determining an income tax allowance within the rate making process, or seek prior Commission approval to do otherwise. C. Conclusion 44. We adopt the policies set forth herein regarding the treatment of ADIT for public utilities, natural gas pipelines and oil pipelines. Above, we state our policy regarding the treatment of ADIT for both accounting and ratemaking purposes as to Commission-jurisdictional public utilities, natural gas pipelines and oil pipelines, in light of the Tax Cuts and Jobs Act of 2017 and also address the accounting and ratemaking treatment of ADIT following the sale or retirement of an asset. We expect such regulated entities to follow these policies absent prior Commission approval to use a different treatment. We further note that if a regulated entity determines that its unique circumstances merit a different treatment of ADIT, such an entity is free to request such treatment at any time. III. Document Availability 48. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the internet through FERC's Home Page (http://www.ferc.gov) and in FERC's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE, Room 2A, Washington, DC 20426. 49. From FERC's Home Page on the internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field. 50. User assistance is available for eLibrary and the FERC's website during normal business hours from FERC Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. IV. Applicability Date 51. This Policy Statement will become applicable November 23, 2018. By the Commission. Commissioner McIntyre is not voting on this order. Issued: November 15, 2018. Nathaniel J. Davis, Sr., Deputy Secretary. Note: Appendix A will not be published in the Code of Federal Regulations. Appendix A--List of Commenters to NOI TABLE ---------------------------------------------------------------------------------------------------------------- Short name Commenter ---------------------------------------------------------------------------------------------------------------- AEP...................................................... American Electric Power Service Corporation. Ameren................................................... Ameren Services Company on behalf of Union Electric Company d/b/a Ameren Missouri, Ameren Illinois Company d/b/a Ameren Illinois, and Ameren Transmission Company of Illinois. AOPL..................................................... Association of Oil Pipe Lines. [[Page 59302]] APGA..................................................... American Public Gas Association. APPA and AMP............................................. American Public Power Association and American Municipal Power, Inc. Avangrid................................................. Avangrid Networks, Inc. Berkshire................................................ Berkshire Hathaway Energy Pipeline Group. Boardwalk................................................ Boardwalk Pipeline Partners LP. CAPP..................................................... Canadian Association of Petroleum Producers. Consumer Advocates....................................... Office of the Attorney General of the Commonwealth of Massachusetts; the Ohio Consumers' Counsel; the Maryland Office of People's Counsel; the Nevada Bureau of Consumer Protection; the Delaware Division of the Public Advocate; the Pennsylvania Office of Consumer Advocate; the Citizens Utility Board of Wisconsin; and the Indiana Office of Utility Consumer Counselor. DEMEC.................................................... Delaware Municipal Electric Corporation, Inc. Dominion Energy Gas Pipelines............................ Dominion Energy Transmission, Inc.; Dominion Energy Carolina Gas Transmission, LLC; Dominion Energy Quester Pipeline, LLC; Dominion Energy Overthrust Pipeline, LLC; and Questar Southern Trails Pipeline Company. EEI...................................................... Edison Electric Institute. Enable Interstate Pipelines.............................. Enable Mississippi River Transmission, LLC and Enable Gas Transmission, LLC. Enbridge and Spectra..................................... Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP. EQT Midstream............................................ EQT Midstream Partners, LP. Eversource............................................... Eversource Energy Service Company. Exelon................................................... Exelon Corporation. Indicated Customers...................................... Central Electric Power Cooperative, Inc., North Carolina Electric Membership Corporation, Southern Maryland Electric Cooperative, Inc., and the New Jersey Division of Rate Counsel. Indicated Local Distribution Companies................... Atmos Energy Corporation; the City of Charlottesville, Virginia; the City of Richmond, Virginia; the Easton Utilities Commission; Exelon Corporation; and Washington Gas Light Company. Indicated Transmission Owners............................ American Electric Power Service Corporation; Dominion Energy Services, Inc., on behalf of Virginia Electric and Power Company d/b/a Dominion Energy Virginia; Duquesne Light Company; Exelon Corporation; FirstEnergy Service Company, on behalf of American Transmission Systems, Incorporated; Jersey Central Power & Light Company; Mid-Atlantic Interstate Transmission, LLC; West Penn Power Company; The Potomac Edison Company; Monongahela Power Company; and PPL Electric Utilities Corp. INGAA.................................................... Interstate Natural Gas Association of America. ITC Great Plains......................................... ITC Great Plains, LLC. Kentucky Municipals...................................... Frankfort Plant Board of Frankfort, Kentucky; Barbourville Utility Commission of the City of Barbourville, City; Utilities Commission of the City of Corbin; and the Cities of Bardwell, Berea, Falmouth, Madisonville, and Providence, Kentucky. Kinder Morgan Entities................................... Natural Gas Pipeline Company of America LLC; Tennessee Gas Pipeline Company, L.L.C.; Southern Natural Gas Company, L.L.C.; Colorado Interstate Gas Company, L.L.C.; Wyoming Interstate Company, L.L.C.; El Paso Natural Gas Company, L.L.C.; Mojave Pipeline Company, L.L.C.; Bear Creek Storage Company, L.L.C.; Cheyenne Plains Gas Pipeline Company, L.L.C.; Elba Express Company, L.L.C.; Kinder Morgan Louisiana Pipeline LLC; Southern LNG Company, L.L.C.; and TransColorado Gas Transmission Company LLC. Kinder Morgan Subsidiaries............................... SFPP, L.P.; Calnev Pipe Line, LLC; and Kinder Morgan Cochin, LLC. MISO Transmission Owners................................. Ameren Services Company, as agent for Union Electric Company d/b/a Ameren Missouri, Ameren Illinois Company d/b/a Ameren Illinois and Ameren Transmission Company of Illinois; American Transmission Company LLC; Central Minnesota Municipal Power Agency; City Water, Light & Power (Springfield, IL); Cleco Power LLC; Cooperative Energy; Dairyland Power Cooperative; Duke Energy Business Services, LLC for Duke Energy Indiana, LLC; East Texas Electric Cooperative; Entergy Arkansas, Inc.; Entergy Louisiana, LLC; Entergy Mississippi, Inc.; Entergy New Orleans, LLC; Entergy Texas, Inc.; Great River Energy; Indiana Municipal Power Agency; Indianapolis Power & Light Company; International Transmission Company d/b/a ITCTransmission; ITC Midwest LLC; Lafayette Utilities System; Michigan Electric Transmission Company, LLC; MidAmerican Energy Company; Minnesota Power (and its subsidiary Superior Water, L&P); Missouri River Energy Services; Montana-Dakota Utilities Co.; Northern Indiana Public Service Company LLC; Northern States Power Company, a Minnesota corporation, and Northern States Power Company, a Wisconsin corporation, subsidiaries of Xcel Energy Inc.; Northwestern Wisconsin Electric Company; Otter Tail Power Company; Prairie Power Inc.; Southern Indiana Gas & Electric Company (d/b/a Vectren Energy Delivery of Indiana); Southern Minnesota Municipal Power Agency; Wabash Valley Power Association, Inc.; and Wolverine Power Supply Cooperative, Inc. National Grid............................................ National Grid USA. Natural Gas Indicated Shippers........................... Aera Energy, LLC; Anadarko Energy Services Company; Apache Corporation; BP Energy Company; ConocoPhillips Company; Hess Corporation; Occidental Energy Marketing, Inc.; Petrohawk Energy Corporation; and XTO Energy, Inc. New York Transco......................................... New York Transco LLC. Oklahoma Attorney General................................ Mike Hunter, Oklahoma Attorney General. PJM...................................................... PJM Interconnection, L.L.C. Plains................................................... Plains Pipeline, L.P. Process Gas and American Forest and Paper................ Process Gas Consumers Group and American Forest and Paper Association. PSEG..................................................... Public Service Electric and Gas Company. Tallgrass Pipelines...................................... Trailblazer Pipeline Company LLC; Tallgrass Interstate Gas Transmission, LLC; and Rockies Express Pipeline LLC. TAPS..................................................... Transmission Access Policy Study Group. TransCanada.............................................. TransCanada Corporation. [[Page 59303]] United Airlines Petitioners.............................. United Airlines, Inc.; American Airlines, Inc.; Delta Air Lines, Inc.; Southwest Airlines, Co.; BP West Coast Products LLC; ExxonMobil Oil Corporation; Chevron Products Company; HollyFrontier Refining & Marketing LLC; Valero Marketing and Supply Company; Airlines for America; and the National Propane Gas Association. Williams................................................. Williams Companies, Inc. ---------------------------------------------------------------------------------------------------------------- [FR Doc. 2018-25372 Filed 11-21-18; 8:45 am] BILLING CODE 6717-01-P
![Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations 59295
paragraph under 5 U.S.C. 552(a) and 1 CFR DEPARTMENT OF ENERGY Jobs Act of 2017.1 The Commission also
part 51. addresses the accounting and
(2) You must use this service information Federal Energy Regulatory ratemaking treatment of ADIT following
as applicable to determine parts that are Commission the sale or retirement of an asset.
affected by this AD, unless the AD specifies
otherwise. 18 CFR Parts 35, 101, 154, 201, and 352 I. Background
(i) Air Cruisers Service Bulletin 737 103– A. Tax Cuts and Jobs Act
25–50, dated August 27, 2010. [Docket No. PL19–2–000]
(ii) Air Cruisers Service Bulletin 757 105–
2. On December 22, 2017, the
25–80, dated August 27, 2010. President signed into law the Tax Cuts
Accounting and Ratemaking Treatment and Jobs Act. The Tax Cuts and Jobs
(iii) Air Cruisers Service Bulletin 757 105– of Accumulated Deferred Income
25–81, dated August 27, 2010. Act, among other things, reduced the
Taxes and Treatment Following the federal corporate income tax rate from
(iv) Air Cruisers Service Bulletin 767 106– Sale or Retirement of an Asset
25–10, Rev. No. 1, dated October 15, 2010. 35 percent to 21 percent, effective
(v) Air Cruisers Service Bulletin 777 107– AGENCY: Federal Energy Regulatory January 1, 2018.2 This means that,
25–29, Rev. No. 1, dated July 8, 2011. Commission, Department of Energy. beginning January 1, 2018, companies
(vi) Air Cruisers Service Bulletin A300/ subject to the Commission’s jurisdiction
ACTION: Policy statement.
A310 001–25–19, dated August 27, 2010. will compute income taxes owed to the
(vii) Air Cruisers Service Bulletin A300/ SUMMARY: In this Policy Statement, the Internal Revenue Service (IRS) based on
A310 003–25–33, dated August 27, 2010. Federal Energy Regulatory Commission a 21 percent tax rate. The tax rate
(viii) Air Cruisers Service Bulletin A310 (Commission) states its policy regarding reduction will result in less corporate
002–25–08, dated August 27, 2010. the treatment of Accumulated Deferred income tax expense going forward.
(ix) Air Cruisers Service Bulletin A320 Income Taxes for both accounting and 3. Importantly, the tax rate reduction
004–25–87, Rev. No. 2, dated January 7, ratemaking purposes as to Commission- will also result in a reduction in ADIT
2011. jurisdictional public utilities, natural liabilities and ADIT assets on the books
(x) Air Cruisers Service Bulletin A321 005– gas pipelines and oil pipelines, in light of rate-regulated companies. ADIT
25–21, dated August 27, 2010. of the Tax Cuts and Jobs Act of 2017. In balances are accumulated on the
(xi) Air Cruisers Service Bulletin BAe 146 addition, the Commission addresses the regulated books and records of such
201–25–23, dated December 10, 2010. accounting and ratemaking treatment of regulated companies based on the
(xii) Air Cruisers Service Bulletin F28 352– Accumulated Deferred Income Taxes requirements of the Uniform System of
25–02, dated December 10, 2010. following the sale or retirement of an Accounts (USofA).3 ADIT arises from
(xiii) Air Cruisers Service Bulletin F100 asset. timing differences between the method
351–25–07, dated December 10, 2010. of computing taxable income for
(xiv) Air Cruisers Service Bulletin Liferaft DATES: This Policy Statement will reporting to the IRS and the method of
35–25–79, dated August 27, 2010. become applicable November 23, 2018. computing income for regulatory
(xv) Air Cruisers Service Bulletin MD11 FOR FURTHER INFORMATION CONTACT: accounting and ratemaking purposes.4
305–25–35, dated August 27, 2010. Sharli Silva (Legal Information), Office As a result of the Tax Cuts and Jobs Act
(xvi) Air Cruisers Service Bulletin MD80/ of the General Counsel, 888 First reducing the federal corporate income
90/717 304–25–45, dated August 27, 2010. Street NE, Washington, DC 20426, tax rate from 35 percent to 21 percent,
(3) For service information identified in (202) 502–8719, Sharli.Silva@ferc.gov. a portion of an ADIT liability that was
this AD, contact Air Cruisers, 1747 State collected from customers will no longer
Bryan Wheeler (Technical Information),
Route 34, Wall Township, NJ 07727–3935; be due from public utilities, natural gas
Office of Energy Markets Regulation,
phone 732–681–3527; email technical pipelines and oil pipelines to the IRS
Federal Energy Regulatory
publications@zodiacaerospace.com. and is considered excess ADIT.
Commission, 888 First Street NE,
(4) You may view this service information
at the FAA, Transport Standards Branch,
Washington, DC 20426, (202) 502– B. Order No. 144
2200 South 216th St., Des Moines, WA. For
8497, Bryan.Wheeler@ferc.gov.
4. The purpose of tax normalization is
information on the availability of this Monil Patel (Technical Information),
to match the tax effects of costs and
material at the FAA, call 206–231–3195. Office of Energy Markets Regulation,
revenues with the recovery in rates of
(5) You may view this service information Federal Energy Regulatory
those same costs and revenues.5 As
that is incorporated by reference at the Commission, 888 First Street NE,
National Archives and Records Washington, DC 20426, (202) 502– 1 An Act to provide for reconciliation pursuant to
Administration (NARA). For information on 8296, Monil.Patel@ferc.gov. titles II and V of the concurrent resolution on the
the availability of this material at NARA, call Kimberly Horner (Technical budget for fiscal year 2018, Public Law 115–97, 131
Information), Office of Enforcement, Stat. 2054 (2017) (Tax Cuts and Jobs Act).
202–741–6030, or go to: http:// 2 Id. Sec. 13001, 131 Stat. at 2096.
www.archives.gov/federal-register/cfr/ibr- Federal Energy Regulatory 3 See Definition of Accounts 182.3 and Account
locations.html. Commission, 888 First Street NE, 254, 18 CFR part 101, Uniform System of Accounts
Washington, DC 20426, (202) 502– Prescribed for Public Utilities and Licensees Subject
Issued in Des Moines, Washington, on
8623, Kimberly.Horner@ferc.gov. to the Provisions of the Federal Power Act; see
November 8, 2018. Definition of Accounts 182.3 and Account 254, 18
SUPPLEMENTARY INFORMATION: CFR part 201, Uniform System of Accounts
Chris Spangenberg,
1. In this Policy Statement, the Prescribed for Natural Gas Companies Subject to
Acting Director, System Oversight Division, the Provisions of the Natural Gas Act; see General
Aircraft Certification Service.
Federal Energy Regulatory Commission
Instructions 1–12, Accounting for Income Taxes, 18
(Commission) states its policy regarding
amozie on DSK3GDR082PROD with RULES
[FR Doc. 2018–25003 Filed 11–21–18; 8:45 am] CFR part 352, Uniform Systems of Accounts
the treatment of Accumulated Deferred Prescribed for Oil Pipeline Companies Subject to
BILLING CODE 4910–13–P Income Taxes (ADIT) for both the Provisions of the Interstate Commerce Act.
accounting and ratemaking purposes as 4 See 18 CFR 35.24(d)(2) (2018).
5 Tax Normalization for Certain Items Reflecting
to Commission-jurisdictional public
Timing Differences in the Recognition of Expenses
utilities, natural gas pipelines, and oil or Revenues for Ratemaking and Income Tax
pipelines, in light of the Tax Cuts and Continued
VerDate Sep<11>2014 16:13 Nov 21, 2018 Jkt 247001 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\23NOR1.SGM 23NOR1](https://thefederalregister.org/doc/83_FR_59521/page/1.svg)
![59296 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations
noted above, timing differences may 1. Public Utilities—18 CFR 35.24 More specifically, the section requires
exist between the method of computing 6. Originally promulgated in Order natural gas pipelines to reduce rate base
taxable income for reporting to the IRS No. 144, the Commission’s regulations by the balances that are properly
and the method of computing income in 18 CFR 35.24 provide requirements recordable in USofA Account 281
for regulatory accounting and for the proper ratemaking treatment of (Accumulated deferred income taxes—
ratemaking purposes. The tax effects of the tax effects of all transactions for accelerated amortization property),
these differences are placed in a which there are timing differences.14 Account 282 (Accumulated deferred
deferred tax account to be used in later Under this section, a public utility must income taxes—other property), and
periods when the differences reverse.6 account for excess or deficient ADIT Account 283 (Accumulated deferred
5. The Commission established this when computing the income tax income taxes—other).22 Conversely, rate
policy of tax normalization in Order No. component of its cost of service.15 base must be increased by balances that
144 where it required use of ‘‘the Additionally, in accounting for this are properly recordable in Account 190
provision for deferred taxes [(i.e., excess or deficient ADIT, a public utility (Accumulated deferred income taxes).23
ADIT)] as a mechanism for setting the is required to apply the ratemaking The section also requires natural gas
tax allowance at the level of current tax method that has been specifically pipelines to compute the income tax
cost.’’ 7 In keeping with this approved by the Commission for that component in its cost of service by
normalization policy, and as relevant to public utility.16 Where no such including a provision for amortizing
the Tax Cuts and Jobs Act’s reduction of ratemaking method exists, a public excess or deficiency in deferred taxes.
the federal corporate income tax rate, utility may choose which ratemaking This is done by applying a Commission-
the Commission in Order No. 144 also method to apply and the reasonableness approved ratemaking method made
required adjustments in the ADIT of of that ratemaking method will be specifically applicable to the natural gas
public utilities’ cost of service when determined on a case-by-case basis by pipeline for determining the cost-of-
excessive or deficient ADIT has been the Commission.17 service provision: (1) If the natural gas
created as a result of changes in tax pipeline has not provided deferred taxes
rates.8 Furthermore, the Commission 2. Natural Gas Pipelines—18 CFR in the same amount that would have
required ‘‘a rate applicant to compute 154.305 accrued had tax normalization always
the income tax component in its cost of 7. Order No. 144 also promulgated the been applied or (2) if, as a result of
service by making provision for any Commission’s regulations regarding tax changes in tax rates, the accumulated
excess or deficiency in its deferred tax normalization for natural gas pipelines provision for deferred taxes becomes
reserves resulting . . . from tax rate which were originally located in part 2 deficient in, or in excess of, amounts
changes.’’ 9 The Commission required of the regulations as section 2.202.18 necessary to meet future tax liabilities.24
that such provision be consistent with a Order No. 144–A redesignated the tax Similar to the tax normalization
Commission-approved ratemaking normalization regulations for natural gas regulations for public utilities, if the
method made specifically applicable to pipelines by removing them from part 2 Commission has not approved a specific
the rate applicant.10 Where no of the Commission’s regulations and ratemaking method specifically
ratemaking method has been made placing them in part 154.19 applicable to the natural gas pipeline,
specifically applicable, the Commission Subsequently, Order No. 582 then the natural gas pipeline must use
required the rate applicant to advance redesignated the regulatory text in that a previously approved ratemaking
some method in its next rate case.11 The part with respect to natural gas method.25 The Commission will
Commission stated that it would pipelines to its current designation in determine whether such method is
determine the appropriateness of any section 154.305, and made various appropriate on a case-by-case basis.26
proposed method on a case-by-case revisions in that section.20 The section 3. Oil Pipelines
basis, but as the issue is resolved in a requires a natural gas pipeline making a
number of cases, a method with wide rate filing under the Natural Gas Act to 8. Unlike the Commission’s
applicability may be adopted.12 The compute the income tax component of regulations applicable to public utilities
Commission codified the requirements its cost of service by using tax and natural gas pipelines, there is no tax
of Order No. 144 in its regulations in 18 normalization for all transactions.21 normalization section under the
CFR 35.24.13 Commission’s regulations for oil
Order No. 545, FERC Stats. & Regs. ¶ 30,955, at pipelines. Instead, the Commission’s
Purposes, Order No. 144, FERC Stats. & Regs. ¶ 30,713 (1992) (cross-referenced at 61 regulations for oil pipelines under the
30,254 at 31,522, 31,530 (1981), order on reh’g, FERC ¶61,207). USofA General Instructions, 1–12
Order No. 144–A, FERC Stats. & Regs. ¶ 30,340 14 See id.
(1982).
Accounting for Income Taxes, require
15 See 18 CFR 35.24(c)(1)(ii), (c)(2).
6 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 16 See 18 CFR 35.24(c)(3).
that when income tax rates are changed,
31,554. 17 See id.
oil pipelines reduce or increase their
7 Id. at 31,530.
18 Order No. 144, FERC Stats. & Regs. ¶ 30,254. ADIT balances immediately by the full
8 Id. at 31,519.
19 Order No. 144–A, FERC Stats. & Regs.¶ 30,340 amount of the excess or deficient tax
9 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at
at 30,140. The Commission deemed part 154 a more reserve.27 Specifically, section (b)
31,560. See also 18 CFR 35.24(c)(1)(ii); 18 CFR appropriate location because tax normalization is
35.24(c)(2).
requires oil pipelines to apply the
required to be used by natural gas pipelines in filing
10 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at
their rate applications and the regulations that 22 18
31,560. See also 18 CFR 35.24(c)(3). govern the filing of such rate applications are CFR 154.305(c)(1).
11 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 23 Id.
located in part 154. Id.
24 18 CFR 154.305(d). Such amounts must be
31,560. 20 18 CFR 154.305 (2018). See Order No. 582,
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12 Id. See also 18 CFR 35.24(c)(3). Filing and Reporting Requirements for Interstate included as an addition or reduction to rate base
13 Originally promulgated as part of Order No. Natural Gas Company Rate Schedules and Tariffs, until the deficiency or excess is fully amortized
144, the regulatory text was redesignated as 18 CFR FERC Stats. & Regs. ¶ 31,025 (1995), order on reh’g, using the Commission approved ratemaking
35.25 in Order No. 144–A. See Order No. 144–A, Order No. 582–A, FERC Stats. & Regs. ¶ 31,043 method. Id.
25 18 CFR 154.305(d)(3).
FERC Stats. & Regs. ¶ 30,340 at 30,140. In Order (1996), order on clarification, FERC Stats. & Regs.
No. 545, the Commission again redesignated the ¶ 31,037 (1996). The tax normalization regulations 26 Id.
regulatory text to its present designation as 18 CFR were moved from 18 CFR 154.63a to 154.305. 27 18 CFR part 352, General Instructions 1–12,
35.24. See Streamlining Electric Power Regulation, 21 18 CFR 154.305. Accounting for Income Taxes.
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17. When separate regulatory liability that those accounts were originally used specific identification of the particular
or assets are used, commenters’ when the regulatory asset or regulatory source of the regulatory liability cannot
viewpoints diverge on the appropriate liability was established.47 be made . . . account 407.3, regulatory
account to record the offsetting entry. 20. Regarding oil pipelines, AOPL debits, shall be debited.’’ 50
Certain commenters agree with the states with respect to regulatory 23. In contrast, Account 410.1 and
Commission’s initial suggestion.41 PSEG accounting under the USofA, any excess Account 411.1 are specifically
states that Accounts 407.3 and 407.4 ADIT is eliminated when tax rates designated for the recordation of
correspond to the appropriate balance change consistent with generally ADIT.51 In this situation where, as a
sheet account where the excess deferred accepted accounting principles, rather result of a change in tax law or rates,
taxes reside.42 Regarding natural gas than being reduced over time through excess and/or deficient ADIT have been
pipelines, Berkshire asserts that amortization. AOPL states there is no reclassified to Account 254 and/or
recording the amounts in Account 407.3 reason to change either the Account 182.3, in accordance with the
or 407.4 will be easier for FERC Form Commission’s accounting rules or Commission’s prior guidance,52 specific
No. 2 users to understand because it current oil pipeline accounting identification of the source of the
will result in similar treatment to other practices; the Commission’s ratemaking regulatory liability and/or regulatory
IRS schedule M items and above the precedent controls rather than asset can be made. Accordingly, the
line accounting while avoiding the accounting rules for purposes of setting Commission’s existing regulations
requirement to spread the total year’s cost-of-service rates.48 support amortizing the excess and/or
amortization over each month using the deficient ADIT recorded in Account 254
2. Determination
FASB Interpretation No. 18 method.43 and/or Account 182.3 to Account 410.1
18. Other commenters believe that a. Accounting Guidance or Account 411.1, as appropriate and
either Accounts 407.3 and 407.4 or 21. We clarify that public utilities and consistent with the manner such
410.1 (Provision for deferred income natural gas pipelines should record the amounts are reflected in rates.
taxes, utility operating income) and amortization of the excess and/or 24. With respect to oil pipelines,
411.1 (Provision for deferred income deficient ADIT recorded in Account 254 deferred tax balances should be adjusted
taxes) are appropriate. Avangrid asserts (Other Regulatory Assets) and/or for the effect of changes in tax law or
that Account 407 is consistent with the Account 182.3 (Other Regulatory Assets) rates in the period the change is enacted
fact that the excess deferred tax by recording the offsetting entries to in accordance with the USofA for oil
obligation ceased upon tax reform Account 410.1 (Provision for Deferred pipelines.53 Specifically, upon the
enactment and that the utilities will Income Taxes, Utility Operating enactment of the Tax Cuts and Jobs Act,
prospectively amortize a regulatory Income) or Account 411.1 (Provision for oil pipelines should have reduced their
deferral, rather than a deferred tax Deferred Income Taxes—Credit, Utility ADIT balances to reflect the 21 percent
liability; however, use of Account 411 is Operating Income), as appropriate. As federal income tax rate with offsetting
consistent with USofA requirements.44 explained below, recording the entries to the appropriate income
EEI and INGAA state that their amortization in Account 410.1 and statement account.54 We believe the
members’ opinions are split between the Account 411.1 is consistent with the current guidance set forth in the USofA
two accounting options and request that instructions for those accounts as is appropriate and will not require oil
the Commission recognize that both detailed in the Commission’s pipelines to account for excess or
approaches may be appropriate.45 regulations and provides more deficient ADIT or record the
19. Many other commenters believe transparency as compared with amortization of such amounts. However,
that only Accounts 410.1 and 411.1 are recording the amounts in Account 407.3 to ensure transparency with respect to
appropriate.46 New York Transco notes and Account 407.4 because the specific these ADIT adjustments, oil pipelines
source of the regulatory asset or should disclose in the Notes to their
41 Berkshire, Comments to NOI, Docket No. regulatory liability will be known. Form No. 6 financial statements, the
RM18–12–000, at 5–6 (filed May 22, 2018) 22. The Commission’s instructions for amounts of their ADIT adjustments
(Berkshire NOI Comments); Consumer Advocates, Account 182.3 provide in part ‘‘[w]hen
Comments to NOI, Docket No. RM18–12–000, at 8–
resulting from the change in the federal
10 (filed May 21, 2018) (Consumer Advocates NOI specific identification of the particular corporate income tax rate, supported by
Comments); DEMEC, Comments to NOI, Docket No. source of a regulatory asset cannot be
RM18–12–000, at 16 (filed May 21, 2018) (DEMEC made . . . account 407.4, regulatory 50 See Definition of Account 254, 18 CFR part
NOI Comments); PSEG, Comments to NOI, Docket credits, shall be credited.’’ 49 Similarly, 101, Uniform System of Accounts Prescribed for
No. RM18–12–000, at 10–11 (filed May 22, 2018) Public Utilities and Licensees Subject to the
(PSEG NOI Comments); TransCanada, Comments to the Commission’s instructions for Provisions of the Federal Power Act; Definition of
NOI, Docket No. RM18–12–000, at 25 (filed May 21, Account 254 state in part ‘‘[w]hen Account 254, 18 CFR part 201, Uniform System of
2018) (TransCanada NOI Comments). Accounts Prescribed for Natural Gas Companies
42 PSEG NOI Comments at 10–11. Subject to the Provisions of the Natural Gas Act.
RM18–12–000, at 10 (filed May 21, 2018) (Indicated
43 Berkshire NOI Comments at 5–6. Customers NOI Comments); Indicated Local 51 See Definition of Account 410.1 and 411.1, 18
44 Avangrid, Comments to NOI, Docket No. Distribution Companies, Comments to NOI, Docket CFR part 101, Uniform System of Accounts
RM18–12–000, at 12–13 (May 22, 2018) (Avangrid No. RM18–12–000, at 11 (filed May 22, 2018) Prescribed for Public Utilities and Licensees Subject
NOI Comments). (Indicated Local Distribution Companies NOI to the Provisions of the Federal Power Act;
45 EEI, Comments to NOI, Docket No. RM18–12– Comments); New York Transco, Comments to NOI, Definition of Account 410.1 and 411.1, 18 CFR part
000, at 19–20 (filed May 22, 2018) (EEI NOI Docket No. RM18–12–000, at 10 (filed May 22, 201, Uniform System of Accounts Prescribed for
Comments); INGAA, Comments to NOI, Docket No. 2018) (New York Transco NOI Comments). Natural Gas Companies Subject to the Provisions of
RM18–12–000, at 12 (filed June 5, 2018) (INGAA 47 New York Transco NOI Comments at 10. the Natural Gas Act.
52 See Accounting for Income Taxes, Docket No.
NOI Comments). 48 AOPL, Comments to NOI, Docket No. RM18–
46 Ameren NOI Comments at 16; APPA and AMP 12–000, at 16 (filed May 22, 2018) (AOPL NOI AI93–5–000, at Item 8 (Apr. 23, 1993).
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NOI Comments at 16; Dominion Energy Gas Comments). 53 See 18 CFR part 352, General Instructions 1–
Pipelines, Comments to NOI, Docket No. RM18–12– 49 See Definition of Account 182.3, 18 CFR part 12(b), Accounting for Income Taxes. See also, 18
000, at 14–15 (filed May 21, 2018) (Dominion 101, Uniform System of Accounts Prescribed for CFR part 352, Instructions for Balance Sheet
Energy Gas Pipelines NOI Comments); Enable Public Utilities and Licensees Subject to the Accounts, 19–5 Current Deferred Income Tax
Interstate Pipelines, Comments to NOI, Docket No. Provisions of the Federal Power Act; Definition of Assets, 45 Accumulated Deferred Income Tax
RM18–12–000, at 39–40 (filed May 21, 2018) Account 182.3, 18 CFR part 201, Uniform System Assets, 59 Deferred Income Tax Liabilities, and 64
(Enable Interstate Pipelines NOI Comments); of Accounts Prescribed for Natural Gas Companies Accumulated Deferred Income Tax Liabilities.
Indicated Customers, Comments to NOI, Docket No. Subject to the Provisions of the Natural Gas Act. 54 Id.
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a schedule that illustrates the Congress changed the federal corporate deferred taxes are now payable to the
calculation of the revised balances. income tax rate, the IRS only has issued IRS).’’ 62
Because the accounting for the excess guidance on the disposition of excess 31. Eversource and Exelon submit that
and/or deficient ADIT may create ADIT in the context of extraordinary treatment of ADIT balances is best
differences between oil pipelines’ retirements.57 They suggest that the addressed on a company-specific basis
accounting and ratemaking, such Commission defer addressing excess and that companies should be able to
differences should also be disclosed in ADIT that is removed from the books as either remove the ADIT associated with
the Notes to their Form No. 6 financial a result of assets being sold or retired assets removed from their books or
statements, Form No. 6 Page 230, unless and until the IRS has had an continue to amortize those balances
Analysis of Federal Income and Other opportunity to weigh in on this issue.58 over the remaining amortization
Taxes Deferred, and Page 700, Annual 29. Certain public utilities argue that, period.63 Indicated Local Distribution
Cost of Service Based Analysis for companies that properly reflect Companies suggest that any future sale
Schedule. Average Rate Assumption or the Reverse or retirement event should be decided
South Georgia Method and have formula as part of a pipeline’s general rate
b. Ratemaking Guidance rates that reflect ADIT balances and proceeding.64
25. With respect to public utilities, adjustments thereto, there is no need for 32. Other commenters urge the
the appropriate ratemaking treatment the Commission to address excess ADIT Commission to require regulated entities
will be addressed in the Notice of that is removed from the books after to return any excess ADIT associated
Proposed Rulemaking (NOPR) we are December 2017 as a result of assets with any sold or retired assets. They
issuing concurrent with this Policy being sold or retired.59 argue that the Commission should be
Statement. In the NOPR, we are 30. Similarly, several natural gas guided by the principle that all excess
proposing to require all public utility pipelines contend that Commission ADIT balances were provided by
transmission providers with precedent is clear that when assets are customers and thus customers should be
transmission rates under an Open sold or transferred as part of a taxable credited with such balances through the
Access Transmission Tariff (OATT), a event, the ADIT balance associated with combination of a credit to amortization
transmission owner tariff, or a rate those assets is extinguished; similarly, expense and the continued offset to rate
schedule to revise those rates to account deferred liabilities resulting from excess base. In support, they assert that when
for changes caused by the Tax Cuts and ADIT are also extinguished following a public utility sells a jurisdictional
Jobs Act. Natural gas pipelines should the retirement of an asset. These asset, it will remove from its books the
continue to file for changes in rates pipelines believe that the Commission entire ADIT associated with a sold asset,
consistent with sections 154.305, has provided no basis for departing from which does not transfer with the asset
154.312, and 154.313 of the these clear rules.60 These pipelines note to the new owner, and retain the entire
Commission’s regulations.55 that the Commission has stated that ADIT for investors. Thus, customers are
26. For oil pipelines, the current ‘‘ADIT balances consist of deferred taxes never credited with the excess or any
regulatory treatment of excess and/or that are intended to be paid at a future other part of the ADIT that they have
deficient ADIT amounts is to maintain time—when the taxes become due. been paying during the useful life of the
such amounts separately for rate making When a taxable event occurs such as the asset prior to its sale.65
purposes only and to amortize them by sale of assets . . . taxes are due and the 33. Indicated Customers note that
removing the annual amortization ADIT balances are reduced to zero;’’ with regard to the sale of public utility
amount from the cost of service in the thus, the ‘‘ADIT balances that existed assets for which there is an excess ADIT
process of determining an income tax prior to the sale no longer exist and are balance remaining on the books, the
allowance. We will continue the no longer an offset against rate base.’’ 61 2006 IRS Private Letter Ruling No. PLR–
practice of amortizing and removing the These pipelines state the NOI explained 168537–02 prohibits the return to
excess and or deficiency by reducing the that any ADIT associated with assets ratepayers of that ADIT and excess
allowed return before it is grossed up for that are sold are removed from the ADIT related to the asset that is being
income taxes. regulated entity’s ‘‘books because any sold, because any ADIT and excess
previously deferred tax effects related to ADIT amounts that are on the books for
B. Whether, and If So How, To Address
the assets are now triggered as part of that asset cease to exist as of the date of
Excess ADIT That Is Removed From the
the computation of gains or losses sale.66 Notwithstanding, Indicated
Books of Public Utilities, Natural Gas
Pipelines, and Oil Pipelines After associated with the sale (i.e., the
62 Id. (citing NOI, FERC Stats. & Regs. ¶ 35,582
December 31, 2017, as a Result of Assets 57 See at P 20).
Treas. Reg. 26 CFR 1.168(i)–3, Treatment of
Being Sold or Retired Excess Deferred Income Tax Reserve Upon 63 Eversource, Comments to NOI, Docket No.
27. In the NOI, the Commission Disposition of Deregulated Public Utility Property. RM18–12–000, at 10 (filed May 22, 2018); Exelon,
58 Avangrid NOI Comments at 11; EEI NOI Comments to NOI, Docket No. RM18–12–000, at 14
sought comment on whether, and if so (filed May 22, 2018).
Comments at 19; Ameren NOI Comments at 15;
how, it should address excess ADIT that EQT Midstream, Comments to NOI, Docket No. 64 Indicated Local Distribution Companies NOI
is removed from the books of public RM18–12–000, at 14 (filed May 21, 2018) (EQT Comments at 9.
utilities, natural gas pipelines, and oil Midstream NOI Comments); Indicated Transmission 65 Consumer Advocates NOI Comments at 8;
Owners, Comments to NOI, Docket No. RM18–12– Indicated Customers NOI Comments at 10–11;
pipelines after December 31, 2017, as a 000, at 10 (filed May 22, 2018); Dominion Energy DEMEC NOI Comments, Kumar Test. at P 14.
result of assets being sold or retired.56 Gas Pipelines NOI Comments at 13. 66 I.R.S. P.L.R., 168537–02 at 9 (May 25, 2006)
59 Ameren NOI Comments at 14, MISO
1. Comment Summary (‘‘Because [t]axpayer has sold the assets that
Transmission Owners, Comments to NOI, Docket generated the [accumulated deferred investment tax
28. Both public utility and natural gas No. RM18–12–000, at 14 (filed May 21, 2018). credit] ADITC, the asset for which regulated
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60 EQT Midstream NOI Comments at 14; INGAA depreciation expense is computed is no longer
pipeline commenters note that, to date
NOI Comments at 11–12; Tallgrass, Comments to available. Consequently, no portion of the related
and in response to the last time NOI, Docket No. RM18–12–000, at 12–13 (filed May unamortized ADITC remaining at the date of sale
21, 2018); AOPL NOI Comments at 14–15; Enable may be returned to ratepayers by amortizing those
55 18 CFR 154.305, 154.312, 154.313 (2018). Interstate Pipelines, Comments to NOI, Docket No. ADITC amounts over the period [t]axpayer recovers
Section 154.313 should be used if the filing requests RM18–12–000, at 40 (filed on May 21, 2018). stranded costs from its ratepayers or by decreasing
a minor rate change. 61 Id. (citing Enbridge Pipeline (KPC), 102 FERC the net loss from the sale of the nuclear generating
56 NOI, FERC Stats. & Regs. ¶ 35,582 at P 20. ¶ 61,310, at PP 5, 68 (2003)). Continued
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Customers, and APPA and AMP argue adjusting its deferred tax liabilities and recorded on the books of public utilities
that the impact of not returning both the assets.71 This guidance remains and natural gas companies subject to the
ADIT and excess ADIT, prior to the sale, unchanged, and requires an entity to Commission’s jurisdiction. Thus, in
and the consequent appropriation of adjust its deferred tax liabilities and order to provide transparency regarding
customer-provided capital, should be assets for the effect of the change in tax the accounting and rate treatment of
given consideration in the law or rates in the period that the amounts removed from the ADIT
Commission’s evaluation of the change is enacted.72 If as a result of accounts, we clarify that public utilities
application seeking approval of the asset action by a regulator, it is probable that and natural gas pipelines should
transfer. If the ADIT and excess ADIT the future increase or decrease in taxes disclose in their FERC annual financial
are not considered in the transfer payable due to a change in tax law or filings within the Notes to the Financial
transaction, they contend that the rates will be recovered from or returned Statements: (1) The FERC accounts
selling entity would receive a windfall to customers through future rates, an affected; (2) how any ADIT accounts
to the detriment of ratepayers. Further, asset or liability shall be recognized in were re-measured in the determination
the acquiring utility could have no Account 182.3 (Other Regulatory Assets) of the excess or deficient ADIT amounts
offsetting ADIT in its rate base related for deficient ADIT, or Account 254 in Accounts 182.3 and 254; (3) the
to the purchased assets, thereby causing (Other Regulatory Liabilities) for excess related amounts associated with the
an increase in rates to customers, in ADIT, as appropriate.73 Because these reversal and elimination of ADIT
addition to the customers’ loss of capital deficient ADIT and excess ADIT balances in those accounts; (4) the
advanced to the selling utility.67 balances can no longer be characterized amount of excess and deficient ADIT
34. Commenters that believe that the as deferred tax amounts to be settled that is protected and unprotected; (5)
Commission should require ADIT with the IRS, the sale or retirement of the accounts to which the excess or
balances be returned to the customers any assets as of January 1, 2018 would deficient ADIT will be amortized; and
offer several suggestions. APPA and not automatically reverse these balances (6) the amortization period of the excess
AMP suggest that in the case of a sale as tax timing differences. and deficient ADIT to be returned or
or early retirement of public utility 36. Accordingly, for public utilities recovered through rates for both
assets, the flowback should occur and natural gas pipelines, the excess protected and unprotected ADIT.75
immediately in the formula rate update and/or deficient ADIT recorded in Disclosures should also summarize the
after the event; otherwise, the flowback Account 254 and/or Account 182.3 manner by which excess and deficient
should be in the form of a lump-sum should continue to be recorded in those will be included in rates by rate
payment or credit.68 Indicated accounts and amortized to Accounts jurisdiction.
Customers suggest that the Commission 410.1 and/or Account 411.1, if those 39. As for oil pipelines, as discussed
should consider deploying remedies it balances are still deemed to be either above, ADIT balances will be reduced
has used in proceedings under FPA refundable to or recoverable from immediately by the full amount of the
section 203, such as establishing an ratepayers. If the rate treatment of those excess or deficient tax reserve in line
open season for customers to terminate balances is instead disallowed, then with the USofA for oil pipelines
their contracts, a commitment by those amounts shall be written off to outlined in General Instruction 1–12.76
applicants to protect customers from Account 421 (Miscellaneous Non-
any adverse rate impacts, rate Operating Income) or Account 426.5 b. Ratemaking Guidance
moratorium or rate reduction.69 Natural (Other Deductions), as appropriate, in 40. The Commission has previously
Gas Indicated Shippers suggest that the the year of the disallowance.74 found that the sale or retirement of an
excess ADIT associated with sold or 37. We clarify that, for public utilities asset with an ADIT balance is usually
retired assets should be amortized and and natural gas pipelines, the balances deemed a taxable event under IRS rules,
returned to the customers in the same of excess and deficient ADIT recorded and, as such, the ADIT balance is
manner a pipeline proposes to return in Account 254 and Account 182.3, extinguished as the deferred taxes then
excess ADIT due to tax cost changes.70 respectively, continue to exist as become payable to the appropriate
regulatory liabilities and assets after an government authorities, and there is no
2. Determination asset sale, in cases for which the excess longer an ADIT balance to ‘‘return’’ to
a. Accounting Guidance and deficient ADIT do not transfer to customers.77 However, we believe that
35. As discussed above, in 1993, the the purchaser of the plant asset.
Chief Accountant issued guidance on Similarly, we clarify that public utilities 75 Public utilities should include this information
how entities must account for the effect and natural gas companies should in FERC Form No. 1 or 1–A and natural gas
continue to account for excess and pipelines should include this information in FERC
of a change in tax law or rates by Form No. 2 or 2–A.
deficient ADIT related to retirements as 76 General Instructions 1–12, Accounting for
assets by those ADITC amounts. Additionally, the regulatory liabilities and assets. Income Taxes, 18 CFR part 352.
unamortized [accumulated deferred investment tax 38. We acknowledge that numerous 77 The Commission has found that master limited
credit] and [excess deferred federal income taxes] current and deferred tax accounts as partnerships that were no longer entitled to an
associated with the sold generating assets ceases to well as other accounts may be affected income tax allowance were not required to return
exist at the date of sale.’’). APPA and AMP argue any remaining ADIT balances. Inquiry Regarding
that this Private Letter Ruling can be read to have by reversals of ADIT account balances
the Commission’s Policy for Recovery of Income
no bearing on the flowback of unprotected ADIT Tax Costs, 162 FERC ¶ 61,227, order on reh’g, 164
balances. APPA and AMP NOI Comments at n. 8. 71 See Accounting for Income Taxes, Docket No.
FERC ¶ 61,030 (2018) (Revised Income Tax Policy
67 Indicated Customers NOI Comments at 10–11; AI93–5–000, at Item 8 (Apr. 23, 1993). Statement Order on Rehearing). However, as
APPA and AMP NOI Comments at 13–14. 72 Id.
relevant here, the Commission found that ‘‘[t]here
68 APPA and AMP NOI Comments at 13–14. 73 Id.
is a critical distinction between adjustments to
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69 Indicated Customers NOI Comments at 11–12 74 See Definitions of Account 182.3 and Account amortize excess or deficient ADIT to be included in
(citing Inquiry Concerning the Commission’s Merger 254, 18 CFR part 101, Uniform System of Accounts future rates to account for changes in income tax
Policy Under the Federal Power Act: Policy Prescribed for Public Utilities and Licensees Subject rates, as opposed to a complete elimination of the
Statement, Order No. 592, FERC Stats. & Regs. ¶ to the Provisions of the Federal Power Act; income tax allowance. When income tax rates are
31,044 (1996), order on reconsideration, 79 FERC ¶ Definitions of Account 182.3 and Account 254, 18 merely reduced and an income tax allowance
61,321 (1997)). CFR part 201, Uniform System of Accounts remains in future cost of service, it is appropriate
70 Tallgrass Pipelines, Comments to NOI, Docket Prescribed for Natural Gas Companies Subject to to credit any excess in ADIT in the future cost of
No. RM18–12–000, at 18 (filed May 22, 2018). the Provisions of the Natural Gas Act. service.’’ Revised Income Tax Policy Statement
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Short name Commenter
United Airlines Petitioners ................ United Airlines, Inc.; American Airlines, Inc.; Delta Air Lines, Inc.; Southwest Airlines, Co.; BP West Coast
Products LLC; ExxonMobil Oil Corporation; Chevron Products Company; HollyFrontier Refining & Mar-
keting LLC; Valero Marketing and Supply Company; Airlines for America; and the National Propane
Gas Association.
Williams ............................................. Williams Companies, Inc.
[FR Doc. 2018–25372 Filed 11–21–18; 8:45 am] DS Logon credential as identified in individuals affiliated with the DoD in
BILLING CODE 6717–01–P DoD Instruction 1330.17, ‘‘DoD order to issue DoD identification (ID)
Commissary Program,’’ and DoD cards that facilitate access to DoD
Instruction 1330.21, ‘‘Armed Services benefits, DoD installations, and DoD
DEPARTMENT OF DEFENSE Exchange Regulations.’’ Only those information systems. This action
retired DoD civilians who are eligible formally establishes DoD policy
Office of the Secretary for DoD commissary and exchange requirements for DS Logon credentials
benefits are eligible for the DS Logon that are used to facilitate logical access
32 CFR Part 221 credential. Compliance with existing to self-service websites. This regulatory
DoD policy and current instructions action will update the CFR for DoD
[Docket ID: DOD–2015–OS–0054]
required modification of § 221.6(b)(1)(ii) Manual (DoDM) 1341.02, Volume 1,
RIN 0790–AJ36 of the final rule, which was amended to ‘‘DoD Identity Management: DoD Self-
read ‘‘Eligible retired DoD civilian Service (DS) Logon Program and
DoD Identity Management employees in accordance with DoD Credential.’’
AGENCY: Under Secretary of Defense for Instruction 1330.17, ‘‘DoD Commissary
Authorities
Personnel and Readiness (USD(P&R)), Program’’ (available at http://www.esd.
whs.mil/Portals/54/Documents/DD/ The DoD Personal Identity Protection
DoD. (PIP) Program uses emerging
issuances/dodi/133017p.pdf) and DoD
ACTION: Final rule. technologies to support the protection of
Instruction 1330.21, ‘‘Armed Services
Exchange Regulations’’ (available at individual identity and to assist with
SUMMARY: This rulemaking establishes
http://www.esd.whs.mil/Portals/54/ safeguarding DoD physical assets,
implementation guidelines for DoD Self-
Documents/DD/issuances/dodi/1330 networks, and systems from
Service (DS) Logon to provide a secure
21p.pdf).’’ This amendment was made unauthorized access based on
means of authentication to applications
to reflect current Department policy and fraudulent or fraudulently obtained
containing personally identifiable
clarifies that only certain retired DoD credentials. DEERS is the authoritative
information (PII) and personal health
civilians (not all retired DoD civlians) data source for identity and verification
information (PHI). This will allow
are eligible for access to these programs. of affiliation with the DoD in
beneficiaries and other individuals with
accordance with the DoD PIP Program.
a continuing affiliation with DoD to Background Specific authorities are listed below.
update pay or health-care information in This final rule establishes • Title 10 U.S.C. 1044a. This section
a secure environment. This service can implementation guidelines for DS Logon establishes the authority for a Judge
be accessed by active duty, National and describes procedures for obtaining Advocate, other members of the armed
Guard and Reserve, and Commissioned a DS Logon credential. All active duty, forces designated by law and
Corps members of the uniformed National Guard and Reserve, and regulations, or other eligible persons to
services when separating from active Commissioned Corps members of the have the powers to act as a notary. The
duty or from the uniformed service. uniformed services must obtain a DS persons identified in Title 10 U.S.C.
DATES: This rule is effective on Logon credential when separating from 1044a subsection (b) have the general
December 24, 2018. active duty or from the uniformed power of a notary and may notarize a
FOR FURTHER INFORMATION CONTACT: Mr. service. The DS Logon credential is also completed and signed DD Form 3005,
Robert Eves, Defense Human Resources available to all beneficiaries that are ‘‘Application for Surrogate Association
Activity, 571–372–1956. eligible for DoD-related benefits or for DoD Self-Service (DS) Logon.’’
SUPPLEMENTARY INFORMATION: entitlements to facilitate secure • DoD Instruction 1000.25, ‘‘DoD
authentication to critical websites, to Personnel Identity Protection (PIP)
Public Comments and Responses include members of the uniformed Program’’ (available at http://
On Thursday, November 3, 2016 (81 services, veterans with a continuing www.esd.whs.mil/Portals/54/
FR 76325–76330), the Department of affiliation to the DoD, spouses, Documents/DD/issuances/dodi/1000
Defense (DoD) published a proposed dependent children aged 18 and over, 25p.pdf). This issuance establishes
rule titled, ‘‘DoD Identity Management’’ certain retired DoD civilians, surrogates minimum acceptable criteria for the
for a 60-day public comment period. and other eligible individuals. It establishment and confirmation of
When the comment period ended on discusses how credential holders may personal identity and for the issuance of
January 3, 2017, no comments were maintain and update their credentials DoD personnel identity verification
received. and manage their personal settings. credentials.
Finally, it discusses the permissions • DoD Instruction 1341.2, ‘‘Defense
Discussion of Changes Made Based on Enrollment Eligibility Reporting System
credential holders have to access their
amozie on DSK3GDR082PROD with RULES
Internal Review (DEERS) Procedures’’ (available at
information, who has access to view and
While in final internal review, it was edit their information, and who is http://www.esd.whs.mil/Portals/54/
discovered, based on existing DoD eligible to act on their behalf. Documents/DD/issuances/dodi/134
instructions, that only certain retired DoD collects and maintains 102p.pdf). This issuance establishes
DoD civilians should be included information on Service members, DEERS as the authoritative data source
among the populations eligible for the beneficiaries, DoD employees, and other for identity and verification of affiliation
VerDate Sep<11>2014 16:13 Nov 21, 2018 Jkt 247001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:\FR\FM\23NOR1.SGM 23NOR1](https://thefederalregister.org/doc/83_FR_59521/page/9.svg)
Document Created: 2018-11-27 12:59:59
Document Modified: 2018-11-27 12:59:59
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Policy statement. | |
| Dates | This Policy Statement will become applicable November 23, 2018. | |
| Contact | Sharli Silva (Legal Information), Office of the General Counsel, 888 First Street NE, Washington, DC 20426, (202) 502-8719, [email protected] Bryan Wheeler (Technical Information), Office of Energy Markets Regulation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8497, [email protected] Monil Patel (Technical Information), Office of Energy Markets Regulation, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8296, [email protected] Kimberly Horner (Technical Information), Office of Enforcement, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202) 502-8623, [email protected] | |
| FR Citation | 83 FR 59295 | |
| CFR Citation | 18
CFR
101 18 CFR 154 18 CFR 201 18 CFR 35 18 CFR 352 |
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