Section 704.6528 - Determination of rate base1. For rate-making purposes, the recorded book balances as of the end of the certification period must be used for the following accounts: (b) Accumulated reserve for book depreciation; and(c) Accumulated deferred federal income taxes applicable to accelerated tax depreciation.2. Annualized expenses for rate-making purposes applicable to recorded book plant in service balances as of the end of the certification period include: (a) Annualized accelerated tax depreciation on plant balances at the end of the certification period must be calculated and used to calculate the company's federal income taxes currently payable expense.(b) Annualized book depreciation must be calculated for recorded book balances for plant in service at the end of the certification period and reflected as book depreciation expense.(c) A calculation must be made utilizing accelerated tax depreciation and straight-line depreciation on plant balances at the end of the certification period. This calculation will be used to generate the annualized deferred federal income taxes applicable to accelerated depreciation and be reflected as a component of cost of service.3. If a corporation chooses not to use a certification period, subsections 1 and 2 will apply to the end of test period balances.4. The above procedure for rate base will reflect a historic rate base which is known and measurable at the end of the certification period for all components of rate base. Cost of service must reflect the annualized expense level for that plant at the end of the certification period. Therefore, all components of cost of service have been synchronized to the end of certification period plant balances.Nev. Admin. Code § 704.6528
Added to NAC by Pub. Service Comm'n, eff. 8-31-89