65- 407 C.M.R. ch. 730, § 1
This rule adopts for regulatory accounting and reporting purposes the standards established by the Financial Accounting Standards Board (FASB) in its Statement of Financial Accounting Standard No. 109, Accounting for Income Taxes (SFAS 109). All public utilities that are required by Generally Accepted Accounting Principles (GAAP) to adopt SFAS 109 for external reporting purposes must also do so for regulatory accounting and reporting purposes. The rule establishes the process for implementation of the standard, as well as any specific reporting requirements which public utilities must follow. Finally, the rule sets forth the mechanism by which the amounts recorded as deferred tax assets or liabilities are to be included in a utility's rate base during a rate case proceeding.
Any public utilities which are not subject to the requirements of GAAP may adopt this rule with notification to the Commission.
The Commission's authority to establish regulatory accounting procedures derives from 35-A M.R.S.A. §501.
65- 407 C.M.R. ch. 730, § 1