Analysis

Utility's ratemaking treatment of an NOL carryforward

Take a look into determining whether a utility's ratemaking treatment of an NOL carryforward complies with the normalization requirements.

Understand determining whether a utility’s ratemaking treatment of an NOL carryforward complies with the normalization requirements.

Treatment of an NOL carryforward

Many utilities have incurred net operating losses (NOLs) in recent years due to bonus depreciation, favorable section 481(a) adjustments, or general economic conditions. The proper treatment of the resulting NOL carryforward under the normalization requirements has been the subject of numerous ratemaking proceedings.

Take a look into determining whether a utility’s ratemaking treatment of an NOL carryforward complies with the normalization requirements.

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