NAC704.653. Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base.

     1. Unless otherwise ordered by the Commission, the rate to be used in the calculation of the allowance for funds used during construction will be the lesser of the gross rate computed in accordance with the provisions of Electric Plant Instructions 3(17) of the Federal Energy Regulatory Commission’s Uniform System of Accounts or the current authorized overall rate of return of the utility as established by the Commission.

     2. To the extent the use of avoided interest calculations pursuant to the Internal Revenue Code creates timing differences, deferred income tax must be calculated and included as a component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)