Statutory and regulatory accounting in the electric power industry | Alfredo J. Non

I have been discussing the accounting issues in the electric rate setting process of the Energy Regulatory Commission in the past weeks. I continue this discussion in this continuation of my series.

For regulatory purposes, customer funded assets generally are to be excluded from the RAB, unless the responsibility to replace it falls with the DU. In this case, the asset is included in the RAB so that appropriate depreciation may be accumulated in the fund for future asset replacement.For statutory accounting purposes, goodwill may be recognized as an asset. However, for regulatory purposes, goodwill is excluded from the value of the RAB.

Source: News Formal (newsformal.com)

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