Nevada Administrative Code
Chapter 704 - Regulation of Public Utilities Generally
ACCOUNTING PRACTICES AND RATE MAKING FOR CERTAIN UTILITIES
Adjustment of Rates in Conformity With Federal Tax Reform
Section 704.6526 - Rules for rate making

1. For the purpose of rate making, generally, any timing difference, excluding that associated with items previously flowed through, must be normalized at the applicable current corporate income tax rate.

2. Any item of deferred income tax that is generated and associated with items of rate base must be included in the calculation of rate base, including, without limitation, any income tax gross up amounts required by NAC 704.6532.

3. Any item of deferred income tax that is generated and associated with items of nonrate-base items must be excluded from rate base.

4. Deferred income tax balances must be adjusted to reflect changes in the statutory corporate income tax rate and these adjustments must be amortized to cost of service over a period of time to be determined by the Commission.

5. The rate-making treatment associated with items previously flowed through will be determined by the Commission on a case-by-case basis.