indicating the adjusted amount of SRIUSP
support.
(k) Miscellaneous items.
(1) Federal Universal Service Fund (FUSF) support.
The amount of annual FUSF support received by the small ILEC that
is considered to be an intrastate expense adjustment under Part 36
and Part 54 of the FCC's rules or by FCC order, regardless of the
category of FUSF support, will offset the total intrastate expenses
and be reflected as such in the small ILEC's annual report. The timing
of any FUSF support will be considered when making a determination
under subsection (j) of this section.
(2) Recovery of FUSF support from the TUSF in accordance
with PURA §56.025. The amount of FUSF support recovered from
the TUSF in accordance with PURA §56.025 that is considered an
intrastate expense adjustment under Part 36 and Part 54 of the FCC
rules or by FCC order, regardless of the category of FUSF support
or type of budget control mechanism placed on FUSF support, will be
shown as an offset to the total intrastate expenses in the small ILEC's
annual report. The timing of any recovery of FUSF support from the
TUSF in accordance with PURA §56.025 and the timing of any true-ups
must be considered when making a determination under subsection (j)
of this section.
(3) Commission authority. Nothing in this section prohibits
the commission from conducting a review in accordance with PURA, Chapter
53, Subchapter D.
(l) Treatment of federal income tax expense.
(1) Accumulated deferred federal income taxes (ADFIT).
(A) For a small ILEC investor-owned utility (IOU) subject
to federal income tax, the IOU must record on its books a regulatory
liability for amounts of excess ADFIT resulting from the Tax Cuts
and Jobs Act of 2017 (TCJA), in accordance with the commission's order
in Project No. 47945. An IOU must include this information on the
annual report required by this rule. For the purposes of this section,
excess ADFIT is defined as the difference between the amount of ADFIT
on the IOU's books after incorporating changes from the TCJA and the
amount of ADFIT that would have been on the IOU's books had the tax
changes in the TCJA not occurred.
(B) IOUs will either amortize the excess ADFIT regulatory
liability over a period not to exceed five years or allow it to reverse
along with the associated ADFIT according to the transaction that
resulted in the ADFIT.
(2) Current federal income tax expense.
(A) For an IOU subject to federal income tax, the IOU
must record on its books a regulatory liability for amounts of excess
current federal income taxes resulting from the TCJA, in accordance
with the commission's order in Project No. 47945. An IOU must include
this information on the annual report required by this section. For
purposes of this section, excess current federal income tax expense
is defined as the difference between the amount of revenue collected
under current rates related to current federal income tax expense
and the amount of revenue related to current federal income tax expense
that should have been collected under rates reflecting changes in
the TCJA. An acceptable alternative calculation of an appropriate
regulatory liability for purposes of this rule is the difference in
the current period federal income tax expense calculated under the
TCJA and the amount that would have been calculated under the federal
tax code immediately preceding the TCJA.
(B) At such time that commission staff files a memorandum
for the commission to categorize the IOUs' rate of return for 2017,
the IOUs will no longer accrue on the books the regulatory liability
for excess current federal income tax expense.
(C) An IOU will amortize the regulatory liability for
the excess current federal income tax expense over a period not to
exceed five years.
(D) An IOU will supplement its 2017 reported financial
information to reflect the amount of current federal income tax expense
for 2017 calculated as if the terms of the TCJA had applied to 2017
operations to calculate potential support from the Small and Rural
Incumbent Local Exchange Company Universal Service Plan. The IOU will
report this information as a proposed adjustment.
(3) This subsection will expire on December 31, 2019.
Any amortization of a regulatory liability resulting from application
of this subsection would continue until completed.
|