Regulatory Asset. The Commission shall establish a regulatory asset of Two Billion Two Hundred and Ten Million Dollars ($2,210,000,000) as a new, separate and additional part of PG&E’s rate base (the “Regulatory Asset”).
Regulatory Asset. Pre-COD Expenses will equal Owner’s balance of Regulatory Asset – Pre-COD Expenses.
Regulatory Asset. The Stipulating Parties agree to an amortization of the Sooner Scrubber regulatory asset of 25 years.
Regulatory Asset. Asset Retirement Obligation (Decommissioning) will equal the total amounts recorded in a subaccount within FERC Account No. 182 for the Net Decommissioning Costs. · Regulatory Asset – Pre-COD Expenses will equal the total costs incurred by Owner before the Commercial Operation Date that are not included in FERC Account No. 107 – Construction Work in Progress (including the costs associated with AC Upgrades that are placed in service before the Commercial Operation Date), plus the Carrying Charges on these amounts (calculated using Owner’s weighted cost of capital, based upon the Weighted Cost of Equity (as determined under Section III.A.2. below) and the Owner’s Weighted Cost of Long-term Debt (as determined under Section III.B. below)) from the date such costs are incurred until the Commercial Operation Date. Such costs will be included in a subaccount within FERC Account No. 182. This account will be amortized over a three (3)-year period beginning on the Commercial Operation Date. · Right-of-Way (Rental) Expense will equal Owner’s expense, as recorded in FERC Account No. 567. ·
Regulatory Asset. The PSA establishes a regulatory asset with a starting value of $2.21 billion as a new, separate, and additional part of PG&E’s rate base (PSA, ¶ 2). The regulatory asset will be reduced dollar for dollar by the net after-tax amounts of any reductions in bankruptcy claims or refunds PG&E actually receives from generators or other energy suppliers (PSA ¶ 2d). The regulatory asset will be amortized on a mortgage-style basis over nine years starting on January 1, 2004 (PSA, ¶ 2a). The mortgage-style amortization keeps the revenue requirements associated with the regulatory asset relatively constant over its life rather than being front-end loaded as they would under traditional rate base treatment. Because the regulatory asset will not have any tax basis, both the amortization of the regulatory asset and the return on it will be grossed up for taxes (PSA, ¶ 2c).6 The PSA provides a floor on the authorized return on equity (XXX) and the equity component of the capital structure associated with the regulatory asset (PSA, ¶ 2b). While the regulatory asset will earn the XXX on the equity component of PG&E’s capital structure as set in PG&E’s annual cost of capital proceedings, the XXX will be no less than 11.22 percent and, once the equity component of PG&E’s capital structure reaches 52 percent (expected in 2005), the equity component will be set for ratemaking purposes at not less than 52 percent. The PSA provides that the Utility Retained Generation (URG) rate base established by D.00-00-000 shall be deemed just and reasonable and not subject to modification, adjustment or reduction (other than through normal depreciation) (PSA, ¶ 2f). Similarly, the value of the regulatory asset and URG rate base are not to be impaired by the Commission taking them into account when setting PG&E’s other revenue requirements and resulting rates or PG&E’s authorized XXX or capital structure.
Regulatory Asset. In case of abnormal variation in income or expenses resulting in substantial revenue gap, full recovery of which in a single year is not feasible, the Commission may allow creation of Regulatory Asset as per guidelines provided in clause 8.2.2 of the Tariff Policy and suitably provide for its recovery through tariff or as a surcharge in more than one year. Amortisation of the regulatory asset so created shall be dealt in accordance with the Tariff Policy, provided that the Commission may allow a carrying cost on Regulatory Asset at such rates as the Commission may deem fit.
