Request For Authorization To Record Deferred Regulatory Assets And Liabilities Sample Clauses

Request For Authorization To Record Deferred Regulatory Assets And Liabilities. PJMSettlement requests authorization to record (i) a deferred regulatory liability in the amount of any revenues accrued according to generally accepted accounting principles (“GAAP”) under Schedule 9-PJMSettlement that are in excess of PJMSettlement’s costs as accrued according to GAAP, and (ii) a deferred regulatory asset in the amount of any PJMSettlement costs as accrued according to GAAP that are not recovered by revenues as accrued according to GAAP under Schedule 9- PJMSettlement.24 This treatment of under- and over-recoveries of actual costs is consistent with the rate structure above, providing for quarterly adjustments to the rates set forth in Schedule 9-PJMSettlement. Because PJMSettlement will be obligated by the terms of its tariff to re-set its charges when there are any under- or over-recoveries of actual costs, and ensure that revenues from the rates match actual costs, it is appropriate not to recognize income and losses and instead to record deferred regulatory assets and liabilities. Such treatment will ensure that PJMSettlement, a non-profit entity, does not 23 See Settlement Agreement and Offer of Settlement, Docket No. ER05-1181-000, (Apr. 18, 2006) (“Settlement Agreement”); First Amendment to Settlement Agreement, Docket No. ER08-528-000 (Jan. 31, 2008) (together “Stated Rate Settlement Agreement”). See PJM Interconnection, L.L.C, 115 FERC ¶ 61,249 (2006) (order accepting Settlement Agreement), amended, PJM Interconnection, L.L.C., Letter Order, Docket No. ER08-528-000 (Mar. 12, 2008) (letter order accepting First Amendment to Settlement Agreement). 24 Part 101 of the Commission’s regulations defines “Regulatory Assets and Liabilities” as “assets and liabilities that result form rate actions of regulatory agencies. Regulatory assets and liabilities arise from specific revenues, expenses, gains, or losses that would have been included in net income determination in one period under the general requirements of the Uniform System of Accounts but for it being probable: A. that such items will be included in a different period(s) for purposes of developing the rates the utility is authorized to charge for its utility services; or B. in the case of regulatory liabilities, that refunds to customers, not provided for in other accounts, will be required.” 18 C.F.R. part 101, definition 31. realize income from its activities. The requested accounting treatment also is consistent with the deferred regulatory asset and liability treatment provi...