Undepreciated Investment as a Utility Rate Base

1925 ◽  
Vol 1 (3) ◽  
pp. 257
Author(s):  
George C. Mathews
Keyword(s):  
Rate Base ◽  
Utility Rate

OBJECTIVES OF FINANCIAL REPORTING, ABORIGINAL COST, AND POOLING OF INTERESTS ACCOUNTING

2012 ◽  
Vol 39 (2) ◽  
pp. 45-80 ◽  
Author(s):  
Hugo Nurnberg
Keyword(s):  
Public Policy ◽  
Financial Reporting ◽  
Information Needs ◽  
Public Utility ◽  
Financial Reports ◽  
Policy Makers ◽  
Business Combinations ◽  
Decision Usefulness ◽  
Rate Base ◽  
Utility Rate

ABSTRACT Through the years, pooling of interest accounting was criticized as contrary to the decision usefulness objective of financial reporting and potentially misleading to stockholders and creditors, the assumed principal users of financial reports. This paper does not dispute those criticisms. It demonstrates, however, that there were some very good reasons for permitting pooling accounting for certain business combinations when the method was developed in the 1940s. At that time, the basic objectives of financial accounting encompassed stewardship and decision usefulness for multiple users, including public utility regulators and public policy makers. Pooling accounting developed in part to satisfy the information needs of public utility regulators who favored aboriginal (original historical) cost to determine the utility rate base; additionally, it was favored by public policy makers who sought lower utility rates (prices) to foster social and economic goals.

Public Utility Rate Base-Past, Present or Future Value?

1939 ◽  
Vol 12 (4) ◽  
pp. 309
Author(s):  
William L. Grossman
Keyword(s):  
Public Utility ◽  
Rate Base ◽  
Future Value ◽  
Utility Rate

Interdependence of Utility Rate-Base Type, Permitted Rate of Return, and Utility Earnings

1962 ◽  
Vol 17 (1) ◽  
pp. 38 ◽  
Author(s):  
David K. Eiteman
Keyword(s):  
Rate Of Return ◽  
Rate Base ◽  
Utility Rate

INTERDEPENDENCE OF UTILITY RATE-BASE TYPE, PERMITTED RATE OF RETURN, AND UTILITY EARNINGS*

1962 ◽  
Vol 17 (1) ◽  
pp. 38-52 ◽  
Author(s):  
David K. Eiteman
Keyword(s):  
Rate Of Return ◽  
Rate Base ◽  
Utility Rate

Construction Work in Progress in the Public Utility Rate Base: The Effect of Multiple Projects and Growth

1979 ◽  
Vol 8 (1) ◽  
pp. 42 ◽  
Author(s):  
J. Leslie Livingstone ◽  
Anis D. Sherali
Keyword(s):  
Public Utility ◽  
Construction Work ◽  
The Public ◽  
Work In Progress ◽  
Rate Base ◽  
Utility Rate

scholarly journals "Cost" as a Substitute for "Value" in Utility Rate Base Determination: A Comment on Dr. Bauer's Position

1944 ◽  
Vol 53 (4) ◽  
pp. 721
Author(s):  
Samuel Ferguson
Keyword(s):  
Rate Base ◽  
Utility Rate

Index Numbers to Determine Public Utility Rate Base

1935 ◽  
Vol 22 (1) ◽  
pp. 73
Author(s):  
W. M. B.
Keyword(s):  
Public Utility ◽  
Index Numbers ◽  
Rate Base ◽  
Utility Rate

Supreme court hints new utility rate base

1942 ◽  
Vol 31 (5) ◽  
pp. 254-258 ◽  
Author(s):  
John Bauer
Keyword(s):  
Supreme Court ◽  
Rate Base ◽  
Utility Rate

Municipal Utility Rate Affordability: A New Way of Thinking

2015 ◽  
Vol 2015 (4) ◽  
pp. 1-9
Author(s):  
Ted Chapman
Keyword(s):  
Utility Rate ◽  
Way Of Thinking

The Economic Implications of Proposed Changes in the Accounting for Nuclear Decommissioning Costs

2000 ◽  
Vol 14 (2) ◽  
pp. 211-233 ◽  
Author(s):  
James R. Boatsman ◽  
Inder K. Khurana ◽  
Martha L. Loudder
Keyword(s):  
Current Practice ◽  
Electric Utility ◽  
Economic Effects ◽  
Financial Statement ◽  
Annual Reports ◽  
Accounting Data ◽  
Economic Implications ◽  
Nuclear Decommissioning ◽  
Nuclear Plants ◽  
Utility Rate

This paper analyzes the accounting effects of the proposed standard Accounting for Obligations Associated with the Retirement of Long-Lived Assets, and considers the economic effects of accounting data in electric utility rate-making. Specifically, we model the financial statement with respect to nuclear decommissioning costs and posit several likely scenarios for the economic implications for the affected firms, their electric consumers, and the rate regulators. The model reveals that the sign of the equity adjustment at adoption and the change in ongoing expense will depend on (1) the age of the plant, and (2) the ratio of the current cost estimate used to compute depreciation under the current practice and the estimated future decommissioning cost. When the model is applied to firms with nuclear plants, we find that the financial statement effects at adoption will be substantial for many firms, and that the ongoing effects of the standard will be to increase the reported expenses of decommissioning substantially. These findings are of interest for three reasons: first, contrary to our data, many of the firms analyzed have stated in their annual reports that the adoption effects of the proposed standard will be immaterial; second, the standard may have a deleterious effect on established regulatory rate-making relationships by changing the basis for consumer rates; and third, the analysis suggests that some firms will be faced with either requesting rate increases or jeopardizing their eligibility for special regulatory accounting treatment. Any of these outcomes create potentially severe problems in an industry on the brink of monumental economic and structural change, that is, the transition from a regulated monopoly to competition.

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