Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống
1
/ 85 trang
THÔNG TIN TÀI LIỆU
Nội dung
[...]... Decommissioning Costs and Nuclear Fuel (v) Securitization of Stranded Costs, Including Regulatory Assets (vi) SFAS Nos 71 and 101— Expanded Footnote Disclosure 31 .12 SOURCES AND SUGGESTED REFERENCES 26 27 28 29 29 31 32 34 35 36 37 37 38 38 38 39 40 41 31 .1 THE NATURE AND CHARACTERISTICS OF REGULATED UTILITIES (a) INTRODUCTION TO REGULATED UTILITIES Many types of business have their rates for providing services... (200) (600) $1,000) (30 0) (600) $0— 100 — Income before taxes $0,200) $0,100) $100 Federal income taxes: Payable currently (34 % ϫ $100) $0, 034 ) $0, 034 ) Deferred (34 % ϫ $100) 34 ) Total $0,068) Operating income $0, 132 ) Exhibit 31 .7 Illustration of “normalized” tax accounting $ 034 ... computation based on Exhibits 31 .1 through 31 .4 31 .4 THE TRADITIONAL RATE-MAKING PROCESS 31 11 • REVENUE REQUIREMENT Desired operating income Actual operating income $025,700,000 20,700,000 Operating income deficiency Gross up factor for income taxes (1 Ϫ 46%) $005,000,000 Ϭ 54 Revenue deficiency Test-year operating revenue $009,259,259 30 0,000,000 Revenue requirement $30 9,259,259 Exhibit 31 .6 Shortcut computation... Tax rate Year 2 Year 3 $1,000% 600% 200% 30 0% 34 % $1,000% 600% 200% 200% 34 % $1,000% 600% 200% 100% 34 % Exhibit 31 .7 sets forth how normalized (deferred) tax accounting would be recorded in Year 1 for the tax and book depreciation difference of $100 DEFERRED TAX ACCOUNTING Income Statement Tax Return Timing Difference Revenue Depreciation Other expenses $1,000) (200) (600) $1,000) (30 0) (600) $0— 100... rate $30 0,000,000 279 ,30 0,000 20,700,000 257,000,000 10% 46% Rate base ϫ Rate of return $257,000,000 ϫ 10 Operating income requirement ϩ Operating expenses 25,700,000 ϩ 2 83, 559,259 (A) Revenue requirement (A) $30 9,259,259 $279 ,30 0,000 Operating expenses 4,259,259 Pro forma tax adjustment based on $5,000,000 operating income deficiency ($25,700,000 Ϫ $20,700,000) and 46% tax rate $2 83, 559,259 Exhibit 31 .5... dividend rate) 1 13 16 Total stockholders’ equity Long-term debt (7.50% average interest rate) 129 128 $257 Exhibit 31 .2 Example of a utility capitalization structure 31 .4 THE TRADITIONAL RATE-MAKING PROCESS Dollars in Millions Capitalization Ratios Long-term debt Preferred stock Common stock equity $128 16 1 13 50 6 44 Cost of capital $257 • Annual Cost Rate Weighted Cost 7.5% 9.0% 13. 0% 3. 75% 54% 5.71%... 12 /31 /XX) Operating revenue Operating expenses Commercial Maintenance Traffic General and administrative Depreciation General taxes Income taxes Federal current and deferred State current and deferred ITC, net Total operating expenses Operating income Exhibit 31 .4 Example of a utility operating income computation $30 0,000 45,000 45,000 49,000 61,000 60,000 6,000 10,000 2,000 1 ,30 0 279 ,30 0 $020,700 31 ... (electric) or Form 2 (gas) annual report The SEC was established in 1 934 to administer the Securities Act of 1 933 and the Securities Exchange Act of 1 934 The powers of the SEC are restricted to security transactions and financial disclosures—not operating standards The SEC also administers the Public Utility Holding Company Act of 1 935 (the 1 935 Act), which was passed because of financial and services abuses... v Ames decision also established several rate-making terms still in use today This was the first attempt by the courts to define rate-making principles These four terms include: 31 .3 REGULATORY COMMISSION JURISDICTIONS 1 2 3 4 31 5 • Original Cost of Construction The cost to acquire utility property Fair Return The amount that should be earned on the investment in utility property Fair Value The amount... purchase electricity at market prices from their chosen supplier and the electric utility will be limited to providing transmission and distribution services at regulated prices 31 .5 INTERRELATIONSHIP OF REGULATORY REPORTING 31 13 • 31 .5 INTERRELATIONSHIP OF REGULATORY REPORTING AND FINANCIAL REPORTING (a) ACCOUNTING AUTHORITY OF REGULATORY AGENCIES Regulatory agencies with statutory authority to establish . No. 53 in its Statement No. 139 , “Rescission of FASB Statement No. 53 and Amendments to FASB Statements No. 63, 89, and 121.” This chapter pre- sents the accounting guidance in SOP 00-2. 30 .2. Characteristics of Utilities 3 31.2 HISTORY OF REGULATION 3 (a) Munn v. Illinois 4 (b) Chicago, Milwaukee & St. Paul Ry. Co. v. Minnesota 4 (c) Smyth v. Ames 4 31 .3 REGULATORY COMMISSION JURISDICTIONS. Than Pensions 36 (d) Other Financial Statement Disclosures 37 (i) Purchase Power Contracts 37 (ii) Financing Through Construction Intermediaries 38 (iii) Jointly Owned Plants 38 (iv) Decommissioning