NAC704.6534. Normalization of timing differences.

     1. This section applies only to those timing differences which are mandated to be normalized by the Internal Revenue Code.

     2. Excess income tax reserves must be calculated for each vintage of assets appearing on a utility’s regulated books of account. The vintages must be analyzed and computed pursuant to section 203(e) of the Tax Reform Act of 1986.

     3. For those utilities which do not maintain vintage records, a reverse South Georgia method may be used to amortize excess deferred income tax reserves if the use of that method is approved by the Internal Revenue Service.

     4. The Commission hereby adopts by reference section 203(e) of the Tax Reform Act of 1986.

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