MB files this
comment in accordance with 5 CFR 1320.11( c ). This OMB action is
not an approval to conduct or sponsor an information collection
under the Paperwork Reduction Act of1995. This action has no effect
on any current approvals.
Inventory as of this Action
Requested
Previously Approved
07/31/2021
36 Months From Approved
07/31/2021
6,673
0
6,673
523,795
0
523,795
0
0
0
In the NOPR in Docket No. RM19-5-000,
the Commission is proposing to require all public utility
transmission providers with transmission rates under an Open Access
Transmission Tariff (OATT), a transmission owner tariff, or a rate
schedule to revise those rates to account for changes caused by the
Tax Cuts and Jobs Act. These proposed reforms are designed to
address the effects of the Tax Cuts and Jobs Act on ADIT reflected
in all transmission rates under an OATT, a transmission owner
tariff, or a rate schedule of public utility transmission
providers. The proposed reforms are intended to ensure that
ratepayers receive the benefits of the Tax Cuts and Jobs Act, and
that the public utility transmission formula and stated rates are
just and reasonable and not unduly discriminatory or preferential
following the enactment of the Tax Cuts and Jobs Act. The proposed
reforms are also intended to ensure that transmission formula and
stated rates meet the Commission’s tax normalization requirements
such that the income tax component of those rates is calculated as
though the taxable income were recognized in the same period and
amount by the Internal Revenue Service (IRS) and the Commission.
The proposed reforms generally fall into three categories and apply
to public utilities with transmission formula rates and stated
rates in different ways. First, the Commission proposes to require
all public utilities with transmission formula rates to include a
mechanism in their formula rates to deduct any excess ADIT from or
add any deficient ADIT to their rate bases. This will ensure that
rate base continues to be treated in a manner similar to that prior
to the Tax Cuts and Jobs Act (i.e., that rate base neutrality is
preserved). As for public utilities with transmission stated rates,
we do not propose any new requirements regarding rate base
neutrality. Second, the Commission proposes to require all public
utilities with transmission formula rates to include a mechanism in
their formula rates that decreases or increases their income tax
allowances by any amortized excess or deficient ADIT, respectively.
This reform will help to ensure that public utilities with
transmission formula rates return excess ADIT to or recover
deficient ADIT from ratepayers. As a result, ratepayers who
contributed to excess ADIT balances will receive the benefit of the
Tax Cuts and Jobs Act. With regard to public utility transmission
providers with stated rates, the Commission proposes requiring
these entities to determine the excess and deficient ADIT caused by
the Tax Cuts and Jobs Act based on the ADIT amounts approved in
their last rate case and then to return this amount to or recover
this amount from customers. This reform is intended to increase the
likelihood that those customers who contributed to the related ADIT
accounts receive the benefits of the Tax Cuts and Jobs Act. Third,
the Commission proposes to require all public utilities with
transmission formula rates to incorporate a new permanent worksheet
into their transmission formula rate that will annually track
information related to excess or deficient ADIT. The Commission
believes that this reform will increase the transparency
surrounding the adjustment of rate bases and income tax allowances
to account for excess or deficient ADIT by public utilities with
transmission formula rates. The Commission does not propose any
additional worksheets for public utilities with transmission stated
rates because it is believed that existing regulations require
sufficient transparency.
The reforms proposed in the
NOPR address public utilities that have transmission formula rates
and transmission stated rates. The reforms related to transmission
formula rates represent new requirements for these entities under
the Commission’s regulations, which the Commission believes are
necessary. These new requirements would require each public utility
with a transmission formula rate to revise its rate so that any
excess or deficient ADIT is properly reflected in its revenue
requirement following a change in tax rates, such as those
established by the Tax Cuts and Jobs Act. Additionally, each public
utility with a transmission formula rate would be required to
develop and incorporate a new permanent worksheet into its
transmission formula rate to increase transparency. The reforms
required by the NOPR would require each public utility with stated
rates to calculate the excess and deficient ADIT caused by the Tax
Cuts and Jobs Act and to return to or recover from customers those
amounts. This reform is intended to increase the likelihood that
customers who contributed to the excess ADIT balance timely receive
the benefits of the Tax Cuts and Jobs Act. The reforms proposed in
this NOPR would require compliance filings with the Commission by
each public utility with transmission stated or formula rates to
allow the Commission the opportunity to determine whether each such
public utility met the requirements detailed in this NOPR.
$4,480,672
No
No
No
No
No
No
Uncollected
Noah Lichtenstein 202
502-8696
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
RM19-5-000 NOPR supporting statement-2-22-19.docx
PL 115-97 (Tax Cuts and Jobs Act of 2017).pdf
RM19-5-000 NOPR (Formula Rates; One-time averaged over Years 1-3)