165 FERC ¶ 61,117

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 35.24

[Docket No. RM19-5-000]

Public Utility Transmission Rate Changes to Address Accumulated Deferred Income 

Taxes 

(Issued November 15, 2018)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Federal Energy Regulatory Commission (Commission) is proposing 

to require all public utility transmission providers with transmission rates under an Open 

Access Transmission Tariff (OATT), a transmission owner tariff, or a rate schedule to 

revise those rates to account for changes caused by the Tax Cuts and Jobs Act of 2017 

(Tax Cuts and Jobs Act). Specifically, for transmission formula rates, the Commission is 

proposing to require that public utilities deduct excess accumulated deferred income 

taxes (ADIT) from or add deficient ADIT to their rate bases and adjust their income tax 

allowances by amortized excess or deficient ADIT. The Commission is also proposing to 

require all public utilities with transmission formula rates to incorporate a new permanent 

worksheet into their transmission formula rates that will annually track ADIT 

information. Additionally, the Commission is proposing to require all public utilities 

with transmission stated rates to determine the amount of excess and deferred income tax 
Docket No. RM19-5-000 -2-

caused by the Tax Cuts and Jobs Act’s reduction to the federal corporate income tax rate 

and return or recover this amount to or from customers.

DATES: Comments are due [INSERT DATE 30 DAYS AFTER DATE OF 

PUBLICATION IN THE FEDERAL REGISTER]

ADDRESSES: Comments, identified by docket number, may be filed electronically at 

http://www.ferc.gov in acceptable native applications and print-to-PDF, but not in 

scanned or picture format. For those unable to file electronically, comments may be filed 

by mail or hand-delivery to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street, N.E., Washington, D.C. 20426. The Comment Procedures 

Section of this document contains more detailed filing procedures.

FOR FURTHER INFORMATION CONTACT:

Noah Lichtenstein (Technical Information)

Office of Energy Market Regulation

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

(202) 502-8696

noah.lichtenstein@ferc.gov

Joshua Walters (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

(202) 502-6098

joshua.walters@ferc.gov

SUPPLEMENTARY INFORMATION:
UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Public Utility Transmission Rate Changes to Address 

Accumulated Deferred Income Taxes

 Docket No. RM19-5-000

NOTICE OF PROPOSED RULEMAKING

TABLE OF CONTENTS

Paragraph Numbers

I. Background...................................................................................................................7

A. Tax Cuts and Jobs Act ...........................................................................................7

B. Overview of Public Utility Transmission Rates....................................................9

C. Order No. 144 and 18 CFR 35.24........................................................................12

D. Notice of Inquiry..................................................................................................14

II. Discussion ...............................................................................................................15

A. Ensuring Rate Base Neutrality.............................................................................20

1. NOI.......................................................................................................................20

2. Comments ............................................................................................................21

3. Proposed Requirements .......................................................................................26

a. Formula Rates...................................................................................................26

b. Stated Rates ......................................................................................................29

B. Return or Recovery of Excess or Deficient ADIT...............................................30

1. NOI.......................................................................................................................30

2. Comments ............................................................................................................31

3. Proposed Requirements .......................................................................................36

a. Formula Rates...................................................................................................36

b. Stated Rates ......................................................................................................40

C. Support for Excess and Deficient ADIT Calculation and Amortization .............43

1. NOI.......................................................................................................................43

2. Comments ............................................................................................................44

3. Proposed Requirements .......................................................................................46

a. Formula Rates...................................................................................................46

b. Stated Rates ......................................................................................................50
Docket No. RM19-5-000 - 2 -

III. Proposed Compliance Procedures...........................................................................51

IV. Information Collection Statement ...........................................................................54

V. Environmental Analysis..........................................................................................62

VI. Regulatory Flexibility Act Certification .................................................................63

VII. Comment Procedures ..............................................................................................66

VIII. Document Availability ............................................................................................70
165 FERC ¶ 61,117

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Public Utility Transmission Rate Changes to Address 

Accumulated Deferred Income Taxes

 Docket No. RM19-5-000

NOTICE OF PROPOSED RULEMAKING

(Issued November 15, 2018)

In this Notice of Proposed Rulemaking (Proposed Rule), we are proposing to 

require all public utility transmission providers with transmission rates under an Open 

Access Transmission Tariff (OATT), a transmission owner tariff, or a rate schedule to 

revise those rates to account for changes caused by the Tax Cuts and Jobs Act of 2017 

(Tax Cuts and Jobs Act).

1

 These proposed reforms are designed to address the effects of 

the Tax Cuts and Jobs Act on the Accumulated Deferred Income Taxes (ADIT) reflected 

in all transmission rates under an OATT, a transmission owner tariff, or a rate schedule of 

public utility transmission providers. The proposed reforms are intended to ensure that 

 1 An Act to provide for reconciliation pursuant to titles II and V of the concurrent 

resolution on the budget for fiscal year 2018, Pub. L. No. 115-97, 131 Stat. 2054 (2017) 

(Tax Cuts and Jobs Act). In proposing this new requirement, the Commission relies on 

existing Commission regulations relating to tax normalization for public utilities as those 

regulations apply to public utilities with transmission formula or stated rates. See 18 

CFR 35.24. In this Proposed Rule, the Commission does not propose any generic 

reforms as to non-public utilities or the non-transmission rates of public utilities. While 

any conclusions that the Commission makes in this proceeding may be relevant to such 

rates, they will be addressed on a case-by-case basis. Furthermore, to the extent any 

entity believes that the Tax Cuts and Jobs Act renders any existing Commissionjurisdictional rate unjust and unreasonable, that entity may submit a complaint to the 

Commission.
Docket No. RM19-5-000 - 2 -

ratepayers receive the benefits of the Tax Cuts and Jobs Act, and that the public utility 

transmission formula and stated rates are just and reasonable and not unduly 

discriminatory or preferential following the enactment of the Tax Cuts and Jobs Act. The 

proposed reforms are also intended to ensure that transmission formula and stated rates 

meet the Commission’s tax normalization requirements such that the income tax 

component of those rates is calculated as though the taxable income were recognized in 

the same period and amount by the Internal Revenue Service (IRS) and the Commission.

2

 

The proposed reforms generally fall into three categories and apply to public 

utilities with transmission formula rates and stated rates in different ways. First, we

propose to require all public utilities with transmission formula rates to include a 

mechanism in their formula rates to deduct any excess ADIT from or add any deficient 

ADIT to their rate bases. This will ensure that rate base continues to be treated in a 

manner similar to that prior to the Tax Cuts and Jobs Act (i.e., that rate base neutrality is 

preserved). As for public utilities with transmission stated rates, we do not propose any 

new requirements regarding rate base neutrality.

Second, we propose to require all public utilities with transmission formula rates 

to include a mechanism in their formula rates that decreases or increases their income tax 

 2 In this Proposed Rule, the Commission refers to comments filed in response to 

the Notice of Inquiry issued March 15, 2018. Inquiry Regarding the Effect of the Tax 

Cuts and Jobs Act on Commission-Jurisdictional Rates, FERC Stats. & Regs. ¶ 35,582 

(2018) (NOI). A list of commenters in that proceeding and the abbreviated names used in 

this Proposed Rule appears in Appendix A. Any comments to this Proposed Rule should 

be filed in this proceeding, Docket No. RM19-5-000.
Docket No. RM19-5-000 - 3 -

allowances by any amortized excess or deficient ADIT, respectively. This reform will 

help to ensure that public utilities with transmission formula rates return excess ADIT to 

or recover deficient ADIT from ratepayers. As a result, ratepayers who contributed to 

excess ADIT balances will receive the benefit of the Tax Cuts and Jobs Act. 

With regard to public utility transmission providers with stated rates, we are

proposing to require these entities to determine the excess and deficient ADIT caused by 

the Tax Cuts and Jobs Act based on the ADIT amounts approved in their last rate case

and then to return this amount to or recover this amount from customers. This reform is 

intended to increase the likelihood that those customers who contributed to the related 

ADIT accounts receive the benefits of the Tax Cuts and Jobs Act. 

Third, we propose to require all public utilities with transmission formula rates to

incorporate a new permanent worksheet into their transmission formula rate that will 

annually track information related to excess or deficient ADIT. We believe that this 

reform will increase the transparency surrounding the adjustment of rate bases and 

income tax allowances to account for excess or deficient ADIT by public utilities with 

transmission formula rates. We do not propose any additional worksheets for public 

utilities with transmission stated rates because we believe that existing regulations require 

sufficient transparency.

We seek comments on these proposed reforms and areas for further comment 

within 30 days after publication of this Proposed Rule in the Federal Register.
Docket No. RM19-5-000 - 4 -

I. Background

A. Tax Cuts and Jobs Act

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. 

The Tax Cuts and Jobs Act, among other things, reduced the federal corporate income tax 

rate from 35 percent to 21 percent, effective January 1, 2018. This means that, beginning 

January 1, 2018, companies subject to the Commission’s jurisdiction will compute 

income taxes owed to the IRS based on a 21 percent tax rate. The tax rate reduction will 

result in less corporate income tax expense going forward.3

Importantly, the tax rate reduction will also result in a reduction in ADIT liabilities 

and ADIT assets on the books of rate-regulated companies. ADIT balances are 

accumulated on the regulated books and records of public utilities based on the 

requirements of the Uniform System of Accounts. ADIT arises from timing differences 

between the method of computing taxable income for reporting to the IRS and the 

method of computing income for regulatory accounting and ratemaking purposes.4

 As a 

result of the Tax Cuts and Jobs Act reducing the federal corporate income tax rate from 

35 percent to 21 percent, a portion of an ADIT liability that was collected from customers 

will no longer be due from public utilities to the IRS and is considered excess ADIT, 

which must be returned to customers in a cost of service ratemaking context. 

Additionally, for public utilities that have an ADIT asset, the Tax Cuts and Jobs Act will 

 3 See Tax Cuts and Jobs Act, Sec. 13001, 131 Stat. at 2096.

4 See 18 CFR 35.24(d)(2).
Docket No. RM19-5-000 - 5 -

result in a reduction to that ADIT asset, and public utilities may seek to reflect in rates a 

portion of such reductions. Public utilities are required to adjust their ADIT assets and 

ADIT liabilities for the effect of the change in tax rates in the period that the change is 

enacted.5

B. Overview of Public Utility Transmission Rates

The Commission is responsible for ensuring that the rates, terms and conditions of 

service for wholesale sales and transmission of electric energy in interstate commerce are 

just, reasonable, and not unduly discriminatory or preferential. With respect to the 

transmission of electric energy in interstate commerce, most jurisdictional entities are 

subject to cost of service regulation. Cost of service regulation seeks to allow public 

utilities the opportunity to (1) recover operating costs, including income taxes, 

(2) recover the cost of capital investments, and (3) earn a just and reasonable return on 

investments.6 Public utilities have calculated their cost of service-based transmission 

rates predominately by using formula rates or stated rates. These rates are contained in 

numerous agreements, including a public utility’s OATT, a regional transmission 

operator’s or independent system operator’s OATT, coordination agreements, and 

wholesale distribution agreements. In this Proposed Rule, we focus on all public utilities 

 5 See 18 CFR 35.24 and 18 CFR 154.305; see also Regulations Implementing Tax 

Normalization for Certain Items Reflecting Timing Differences in the Recognition of 

Expenses or Revenues for Ratemaking and Income Tax Purposes, Order No. 144, FERC 

Stats. & Regs. ¶ 30,254 (1981), order on reh’g, Order No. 144-A, FERC Stats. & Regs. 

¶ 30,340 (1982).

6 See Pub. Sys. v. FERC, 709 F.2d 73, 75 (D.C. Cir. 1983).
Docket No. RM19-5-000 - 6 -

with transmission formula or stated rates that are contained in an OATT, a transmission 

owner tariff, or a rate schedule.

When a public utility uses stated rates, if the public utility seeks to change its rate, 

it files a rate case at the Commission to establish the cost of service revenue requirement, 

allocate costs to various customer groups, and calculate rates. As an alternative, the 

Commission permits public utilities to establish rates through formulas, in which the 

Commission accepts the public utility’s cost of service calculation methodologies and 

input sources and allows the public utility to update those inputs every year. 

Public utilities must seek changes to their transmission stated rates or formula

rates through filings with the Commission under section 205 of the Federal Power Act 

(FPA),

7 while the Commission and third parties can challenge a rate in a proceeding 

initiated under section 206 of the FPA.8

 

C. Order No. 144 and 18 CFR 35.24

The purpose of tax normalization is to match the tax effects of costs and revenues

with the recovery in rates of those same costs and revenues.

9

 As noted above, timing 

differences may exist between the method of computing taxable income for reporting to 

the IRS and the method of computing income for regulatory accounting and ratemaking 

 7 See 16 U.S.C. 824d. 

8 See 16 U.S.C. 824e(a).

9 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 31,522, 31,530.
Docket No. RM19-5-000 - 7 -

purposes. The tax effects of these differences are placed in a deferred tax account to be 

used in later periods when the differences reverse.

10 

The Commission established this policy of tax normalization in Order No. 144 

where it required use of “the provision for deferred taxes [(i.e., ADIT)] as a mechanism 

for setting the tax allowance at the level of current tax cost.”11 In keeping with this 

normalization policy, and as relevant to the Tax Cuts and Jobs Act’s reduction of the 

federal corporate income tax rate, the Commission in Order No. 144 also required 

adjustments in the ADIT of public utilities’ cost of service when excessive or deficient 

ADIT has been created as a result of changes in tax rates.12 Furthermore, the 

Commission required “a rate applicant to compute the income tax component in its cost 

of service by making provision for any excess or deficiency in its deferred tax reserves 

resulting . . . from tax rate changes.”13 The Commission required that such provision be 

consistent with a Commission-approved ratemaking method made specifically applicable 

to the rate applicant.

14 Where no ratemaking method has been made specifically 

 10 Id. at 31,554.

11 Id. at 31,530.

12 Id. at 31,519.

13 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 31,560. See also 18 CFR 

35.24(c)(1)(ii); 18 CFR 35.24(c)(2).

14 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 31,560. See also 18 CFR 

35.24(c)(3).
Docket No. RM19-5-000 - 8 -

applicable, the Commission required the rate applicant to advance some method in its

next rate case.

15 The Commission stated that it would determine the appropriateness of 

any proposed method on a case-by-case basis, but as the issue is resolved in a number of 

cases, a method with wide applicability may be adopted.16 The Commission codified the 

requirements of Order No. 144 in its regulations in 18 CFR 35.24.

17 

D. Notice of Inquiry 

Following the enactment of the Tax Cuts and Jobs Act, the Commission issued the 

NOI seeking comments on, among other things, whether, and if so, how, the Commission 

should address the effects of the Tax Cuts and Jobs Act on ADIT.

18 The Commission 

noted that the Tax Cuts and Jobs Act’s reduction to the federal corporate income tax rate 

would potentially create excess or deficient ADIT on the books of public utilities.19 As 

relevant to the reforms proposed in this Proposed Rule, the Commission sought 

comments on the preservation of rate base neutrality and how public utilities should make 

 15 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 31,560.

16 Id. See also 18 CFR 35.24(c)(3).

17 Originally promulgated as part of Order 144, the regulatory text was 

redesignated as 18 CFR 35.25 in Order No. 144-A. See Order No. 144-A, FERC 

Stats. & Regs. ¶ 30,340 at 30,140. In Order No. 545, the Commission again redesignated 

the regulatory text to its present designation as 18 CFR 35.24. See Streamlining Electric 

Power Regulation, Order No. 545, FERC Stats. & Regs. ¶ 30,955, at 30,713 (1992)

(cross-referenced at 61 FERC ¶ 61,207).

18 NOI, FERC Stats. & Regs. ¶ 35,582.

19 Id. P 13.
Docket No. RM19-5-000 - 9 -

related adjustments to their rate bases for excess and deficient ADIT.20 The Commission 

also sought comment on how public utilities should adjust their income allowances to 

return or recover excess or deficient ADIT, respectively,21 as well as the method used to 

return or recover excess or deficient protected and unprotected ADIT.22 Finally, the 

Commission sought comment on whether it should require public utilities to provide to 

the Commission, on a one-time basis, additional information to show the computation of 

excess or deficient ADIT and the corresponding return of excess ADIT to customers or 

recovery of deficient ADIT from customers. If so, the Commission also sought 

comments on what types of information public utilities should provide.

23

II. Discussion

Since the issuance of Order No. 144, the landscape of public utility transmission 

rates has changed dramatically; that is, the vast majority of public utilities now use 

formula rates rather than stated rates. As described above, unlike stated rates, which are 

updated only through a rate case initiated by a FPA section 205 application by the public 

 20 Id. PP 14-15.

21 Id. P 21.

22 Id. PP 17, 19. In the NOI, the Commission referred to “plant-based” and “nonplant based” ADIT. We agree with commenters’ recommendation to follow the IRS 

terminology of “protected” and “unprotected” ADIT instead of “plant-based” and “nonplant based” presented in the NOI. The IRS terms for “protected” and “unprotected” are 

directly associated with the IRS’ normalization protections to ensure a tax payer 

maintains the benefit of accelerated depreciation over the life of the related asset. 

Accordingly, we have changed the terms used in this Proposed Rule to better mirror IRS 

terminology.

23 Id. P 23.
Docket No. RM19-5-000 - 10 -

utility or an FPA section 206 action by the Commission or a complaining third party, 

inputs to formula rates are updated annually to derive a charge assessed to customers. 

Thus, a rate case no longer remains the appropriate vehicle for formula rates to reflect 

excess or deficient ADIT in a public utility’s cost of transmission service, as 

contemplated by Order No. 144. The public utility’s transmission formula rate should 

include provisions that accurately reflect excess or deficient ADIT in a public utility’s 

cost of transmission service during the annual updates of the rest of the revenue 

requirement.

Following the NOI, we have determined that this near-industry-wide transition 

from stated to formula rates has caused a gap in the transmission formula rates of public 

utilities such that many, if not most, of those rates do not contain provisions to fully 

reflect any excess or deficient ADIT following a change in tax rates, as required by Order 

No. 144 and the Commission’s regulations in 18 CFR 35.24. Two components are 

necessary to maintain an accurate cost of service following a change in income tax rates, 

such as that caused by the Tax Cuts and Jobs Act: (1) preservation of rate base neutrality 

through the removal of excess ADIT from or addition of deficient ADIT to rate base; and 

(2) the return of excess ADIT to or recovery of deficient ADIT from ratepayers.

24 

A review of public utility transmission formula rates suggests that only some 

transmission formula rates contain the first component, while even fewer contain the 

 24 Id. P 13. While the Tax Cuts and Jobs Act decreased the federal corporate 

income tax rate, the reforms proposed in this Proposed Rule are also meant to ensure that 

transmission formula rates reflect the effects of tax increases, as well.
Docket No. RM19-5-000 - 11 -

second. Consequently, as discussed in greater detail below, we propose to require 

public utilities with transmission formula rates to revise those rates to include these 

two components. Additionally, to provide greater transparency, we propose to require all 

public utilities with transmission formula rates to incorporate a new permanent worksheet 

into their transmission formula rates that will annually track ADIT information related to 

these two components.

Regarding public utilities with transmission stated rates, we propose maintaining 

Order No. 144’s requirement that such public utilities reflect any adjustments made to 

their ADIT balances as a result of the Tax Cuts and Jobs Act (and any future tax changes) 

in their next rate case. However, to increase the likelihood that those customers who 

contributed to the related ADIT accounts receive the benefit of the Tax Cuts and Jobs 

Act, we propose to require public utilities with transmission stated rates to (1) determine 

any excess or deficient ADIT caused by the Tax Cuts and Jobs Act and (2) return or 

recover this amount to or from customers. We believe that the Commission’s existing

regulations already require all of the information necessary to support the changes 

proposed herein to reflect the effects of the Tax Cuts and Jobs Act on a transmission 

stated rate. Therefore, we propose not to require any additional worksheets.

The Commission generally does not permit single-issue ratemaking. However,

similar to the Commission’s actions following the Tax Cuts and Jobs Act,25 given the 

 25 See AEP Appalachian Transmission Company, Inc., 162 FERC ¶ 61,225 (2018);

Alcoa Power Generating Inc.―Long Sault Division, 162 FERC ¶ 61,224 (2018).
Docket No. RM19-5-000 - 12 -

limited scope of the reforms proposed here, we propose that compliance filings made in 

response to this Proposed Rule’s final requirements may be considered on a single-issue 

basis.26

A. Ensuring Rate Base Neutrality

1. NOI

In the NOI, the Commission sought comment on how to ensure that rate base 

continues to be treated in a manner similar to that prior to the Tax Cuts and Jobs Act 

(i.e., how to preserve rate base neutrality), until excess and deficient ADIT have been 

fully returned or recovered in a just and reasonable manner. The Commission also

sought comment on whether, and if so how, public utilities should make adjustments to 

rate base to reflect excess and deficient ADIT. The Commission asked that commenters 

address both formula rates and stated rates.27

2. Comments

Numerous public utilities and other commenters assert that, in order to preserve 

rate base neutrality, unamortized balances of excess ADIT must continue to be treated as 

an offset to (i.e., a deduction from) rate base until those balances are flowed back in their 

 26 See generally Indicated RTO Transmission Owners, 161 FERC ¶ 61,018, at 

PP 13-14 (2017); see also Rates Changes Relating to the Federal Corporate Income Tax 

Rate for Public Utilities, Order No. 475, FERC Stats. & Regs. ¶ 30,752, order on reh’g, 

41 FERC ¶ 61,029 (1987) (allowing public utilities to use a voluntary, abbreviated rate 

filing procedure to reduce their rates to reflect a reduction in the federal corporate income 

tax rate on a single-issue basis). 

27 NOI, FERC Stats. & Regs. ¶ 35,582 at PP 14-15.
Docket No. RM19-5-000 - 13 -

entirety to customers.28 These commenters generally note that, following the passage of 

the Tax Cuts and Jobs Act, public utilities transferred excess ADIT to Account 254 

(Other Regulatory Liabilities) or Account 182.3 (Other Regulatory Assets), as 

appropriate.29 Accordingly, these commenters state that, just as the ADIT balances were 

deducted from or added to rate base, as appropriate, the corresponding amounts recorded 

in Accounts 254 and 182.3 should be deducted from or added to rate base. While 

generally agreeing that rate base adjustments are necessary, several commenters assert 

that there is no “one-size fits all” solution.30

 28 APPA and AMP, Comments to NOI, Docket No. RM18-12-000, at 4-7 (filed on 

May 22, 2018) (APPA and AMP NOI Comments); Avangrid, Comments to NOI, Docket 

No. RM18-12-000, at 5 (May 22, 2018) (Avangrid NOI Comments); Consumer 

Advocates, Comments to NOI, Docket No. RM18-12-000, at 4-5 (filed May 21, 2018) 

(Consumer Advocates NOI Comments); DEMEC, Comments to NOI, Docket 

No. RM18-12-000, at 8 (filed May 21, 2018) (DEMEC NOI Comments); Indicated 

Customers, Comments to NOI, Docket No. RM18-12-000, at 3-6 (filed May 21, 2018) 

(Indicated Customers NOI Comments); National Grid, Comments to NOI, Docket 

No. RM18-12-000, at 6-7 (filed May 21, 2018) (National Grid NOI Comments); New 

York Transco, Comments to NOI, Docket No. RM18-12-000, at 5 (filed May 22, 2018) 

(New York Transco NOI Comments); Oklahoma Attorney General, Comments to NOI, 

Docket No. RM18-12-000, at 4 (filed May 22, 2018) (Oklahoma Attorney General NOI 

Comments); PSEG, Comments to NOI, Docket No. RM18-12-000, at 4 (filed May 22, 

2018) (PSEG NOI Comments).

29 Avangrid NOI Comments at 5; EEI, Comments to NOI, Docket No. RM18-12-

000, at 10 (filed May 22, 2018) (EEI NOI Comments).

30 Kentucky Municipals, Comments to NOI, Docket No. RM18-12-000, at 3-5

(filed May 21, 2018) (Kentucky Municipals NOI Comments); Exelon, Comments to NOI, 

Docket No. RM18-12-000, at 11-12 (filed May 22, 2018) (Exelon NOI Comments); 

TAPS, Comments to NOI, Docket No. RM18-12-000, at 3 (filed May 21, 2018) (TAPS 

NOI Comments); Indicated Transmission Owners, Comments to NOI, Docket No. 

RM18-12-000, at 7 (filed May 21, 2018) (Indicated Transmission Owners NOI 

Comments) ((“[t]here may be no uniform way to achieve the Commission’s rate base 
Docket No. RM19-5-000 - 14 -

Regarding public utilities with formula rates, several commenters support the 

addition of a line item to formula rates for rate base adjustments reflecting excess or 

deficient ADIT recorded in Accounts 254 and 182.3.31 Many of these commenters 

suggest that the Commission permit public utilities to make single-issue FPA section 205 

filings to make the appropriate changes to their formula rates.32 EEI suggests that the 

Commission should permit utilities with formula rates requiring adjustments to address 

these during their next true-up annual informational filing.33

Alternatively, APPA and AMP, and Indicated Customers suggest that any excess 

or deficient ADIT resulting from the implementation of the Tax Cuts and Jobs Act be 

recorded to the same ADIT accounts (e.g., Accounts 190, 281, 282, and 283) where the 

original entries for the regulatory assets and regulatory liabilities were established.34 

APPA and AMP state that by keeping the excess or deficient ADIT in sub-accounts 

 

neutrality objective given differences between companies in accounting methods and rate 

structures.”) (citation omitted)).

31 Oklahoma Attorney General NOI Comments at 4-5; PSEG NOI Comments at 4; 

Avangrid NOI Comments at 5-9; Eversource, Comments to NOI, Docket No. RM18-12-

000, at 4 (filed May 22, 2018) (Eversource NOI Comments); National Grid NOI 

Comments at 7-8; TAPS NOI Comments at 4.

32 Eversource NOI Comments at 4-5; Indicated Transmission Owners NOI 

Comments at 6; PSEG NOI Comments at 4-5; National Grid NOI Comments at 7-8.

33 EEI NOI Comments at 11.

34 APPA and AMP NOI Comments at 7-8; Indicated Customers NOI Comments 

at 6-7.
Docket No. RM19-5-000 - 15 -

within the original ADIT accounts, it will be more transparent and easier to track as the 

balances are flowed back.35 As another alternative, the Oklahoma Attorney General 

asserts that the Commission should consider requiring that the line item currently used to 

offset rate base with ADIT include both ADIT balances in traditional ADIT-related 

accounts and those excess ADIT balances in other accounts identified by the 

Commission.36

Other commenters note that such a line item adjustment may not be necessary in 

all cases.37 Specifically, these commenters assert that certain formula rates (e.g., certain 

MISO Attachment O, AEP, Exelon, and Eversource formula rates) already provide for 

the inclusion of excess ADIT in rate base and that the balances in Accounts 254 and 

182.3 will naturally flow into rate base without any modification.38 

Regarding public utilities with stated rates, commenters generally agree that 

adjustments are not necessary to preserve rate base neutrality with respect to stated 

 35 APPA and AMP NOI Comments at 7-8.

36 Oklahoma Attorney General NOI Comments at 4-5.

37 Ameren, Comments to NOI, Docket No. RM18-12-000, at 7-8 (filed May 21, 

2018) (Ameren NOI Comments); MISO Transmission Owners, Comments to NOI, 

Docket No. RM18-12-000, at 7 (filed May 21, 2018) (MISO Transmission Owners NOI 

Comments); EEI NOI Comments at 11; Exelon NOI Comments at 11-12.

38 AEP, Comments to NOI, Docket No. RM18-12-000, at 3-4 (filed May 22, 2018) 

(AEP NOI Comments); Ameren NOI Comments at 7-8; MISO Transmission Owners 

NOI Comments at 7; Eversource NOI Comments at 3-4; Exelon NOI Comments 

at 11-12.
Docket No. RM19-5-000 - 16 -

rates.39 National Grid and Avangrid state that, under cost-of-service, both ADIT balances 

and regulatory liability balances should be deducted from rate base in calculating the 

stated rate.40 Avangrid asserts that rate base neutrality issues are not raised with 

transmission stated rates because these rates assume the same amount of ADIT deduction 

to rate base without regard to how the companies adjusted their books and records.41

3. Proposed Requirements

a. Formula Rates

We propose to require all public utilities with transmission formula rates to 

include a mechanism in their formula rates which deducts any excess ADIT from or adds 

any deficient ADIT to their rate bases under 18 CFR 35.24. As described above, the 

Commission’s regulations in 18 CFR 35.24 require public utilities to reflect any excess or 

deficient ADIT as a result of any changes in tax rates in their next rate case. As a result 

of the Tax Cuts and Jobs Act’s reduction of the federal corporate income tax from 

35 percent to 21 percent, public utilities have collected excess funds for their ADIT 

liabilities and have not collected sufficient funds for any ADIT assets. To preserve rate 

base neutrality by accurately matching the tax allowance with the current tax cost as 

required by Commission regulations, public utilities with transmission formula rates must 

 39 National Grid NOI Comments at 7-8; Avangrid NOI Comments at 5-6; EEI NOI 

Comments at 11.

40 National Grid NOI Comments at 7-8; Avangrid NOI Comments at 5-6.

41 Avangrid NOI Comments at 5-6.
Docket No. RM19-5-000 - 17 -

include provisions in their formula rates to adjust their ADIT for excess or deficient 

ADIT.42 We believe our proposal will ensure that public utilities with transmission 

formula rates will adjust their ADIT for any excess or deficient ADIT caused by the Tax 

Cuts and Jobs Act or any future changes to tax rates which may give rise to excess or 

deficient ADIT.

While we are proposing to require public utilities with transmission formula rates 

to include a mechanism to adjust rate base for any excess or deficient ADIT, we are not 

proposing to prescribe a specific adjustment mechanism which applies to all public 

utilities with transmission formula rates. We agree with commenters to the NOI that 

prescribing a one-size-fits-all approach, such as adding a line item, is not appropriate and 

that the Commission should instead allow public utilities to propose any necessary 

changes to their formula rates on an individual basis. Recent filings and comments 

submitted in the NOI suggest that multiple approaches to modify rate base may be just 

and reasonable. For example, as noted by MISO Transmission Owners,43 the 

Commission accepted proposals by ITC Companies and Ameren in which those 

companies did not revise their formula rates to modify their adjustments to rate base by 

adding a new line item for rate base.44 Instead, those companies demonstrated that, while 

 42 Order No. 144, FERC Stats. & Regs. ¶ 30,254 at 31,530, 31,519.

43 MISO Transmission Owners NOI Comments at 7.

44 Midcontinent Indep. Sys. Operator, Inc., 153 FERC ¶ 61,374 (2015); 

Midcontinent Indep. Sys. Operator, Inc., 163 FERC ¶ 61,163 (2018).
Docket No. RM19-5-000 - 18 -

not visible in their formula rates, their adjustments to rate base were modified by any 

excess or deficient ADIT prior to their input to the formula rates. Accordingly, we also 

propose that public utilities with transmission formula rates may demonstrate that their 

formula rates already meet the proposed ADIT adjustment requirements described in this 

Proposed Rule.

We are not persuaded by commenters to the NOI who suggest that excess or 

deficient ADIT amounts should be recorded to the same ADIT accounts where the 

original entries for the regulatory assets and regulatory liabilities were established. The 

Commission previously issued guidance on this topic, finding that public utilities are 

required to record a regulatory asset (Account 182.3) associated with deficient ADIT or 

regulatory liability (Account 254) associated with excess ADIT.45 As a result, we do not 

propose any changes to that specific accounting guidance.

b. Stated Rates

We do not propose any new requirements regarding rate base neutrality for public 

utilities with transmission stated rates. As noted by commenters to the NOI, stated rates 

are calculated based in large part on company data submitted, and projections made, at 

the time of the last rate case. Thus, while ADIT balances may have changed as a result of 

the Tax Cuts and Jobs Act, so too will many other aspects of the cost of service and

calculations that underlie the stated rate, making it difficult to re-evaluate ADIT and its 

 45 See Accounting for Income Taxes, Docket No. AI93-5-000, at 8 (1993). 
Docket No. RM19-5-000 - 19 -

effect on rate base following a change in tax rates without fully evaluating a public 

utility’s entire cost of service and rates.

46 We believe that the revisions we are proposing 

below, related to the return or recovery of excess or deficient ADIT, will adequately 

address the effects of the Tax Cuts and Jobs Act on ADIT and will avoid such 

complications. Therefore, we do not propose to require adjustments to the rate bases of 

public utilities with transmission stated rates prior to their next rate case on a generic 

basis.

B. Return or Recovery of Excess or Deficient ADIT

1. NOI

In the NOI, the Commission asked commenters to address how public utilities 

with stated or formula rates should adjust their income tax allowance such that the 

allowance would be decreased or increased by the amortization of excess or deficient 

ADIT, respectively.47 Additionally, the Commission asked commenters how the Average 

Rate Assumption Method, and alternatively, the Reverse South Georgia Method or South 

Georgia Method, as appropriate, will be implemented in the amortization of protected 

excess or deficient ADIT and how quickly to amortize unprotected excess or deficient 

ADIT.48

 46 The Commission previously acknowledged this difficulty in Order No. 475. 

Order No. 475, FERC Stats. & Regs. ¶ 30,752 at 30,736.

47 NOI, FERC Stats. & Regs. ¶ 35,582 at P 21.

48 Id. PP 17, 19. Under the South Georgia method, a calculation is taken of the 

difference between the amount actually in the deferred account and the amount that 

would have been in the account had normalization continuously been followed. Any 
Docket No. RM19-5-000 - 20 -

2. Comments

Commenters generally support adjusting public utilities’ income tax allowances by 

the amortization of excess or deficient ADIT. Many commenters suggest adding a line 

item or several line items to public utility transmission formula rates to make this 

adjustment,49 with some transmission owners noting that they have already submitted or 

now propose to submit such revisions.50 MISO Transmission Owners note that the 

Commission accepted such a proposal by ITC Great Plains.51 National Grid suggests that 

adjustments to income tax allowances could also be made through the weighted cost of 

capital.52 

 

deficiency is collected from ratepayers (i.e., South Georgia Method), and any excess is 

returned to ratepayers (i.e., Reverse South Georgia Method), over the remaining 

depreciable life of the plant that caused the difference. Memphis Light, Gas and Water 

Div. v. FERC, 707 F.2d 565, 569 (D.C. Cir. 1983).

49 Ameren NOI Comments at 15-16; Avangrid NOI Comments at 11-12; MISO 

Transmission Owners NOI Comments at 14-17; National Grid NOI Comments at 15; 

New York Transco NOI Comments at 10; Oklahoma Attorney General NOI Comments

at 6; PSEG NOI Comments at 10.

50 Ameren NOI Comments at 15-16; Avangrid NOI Comments at 11-12; MISO 

Transmission Owners NOI Comments at 16-17; New York Transco NOI Comments 

at 10.

51 MISO Transmission Owners NOI Comments at 15 (citing Midcontinent Indep. 

Sys. Operator, Inc., 153 FERC ¶ 61,374). See also Midcontinent Indep. Sys. Operator, 

Inc., 163 FERC ¶ 61,163.

52 National Grid NOI Comments at 15.
Docket No. RM19-5-000 - 21 -

Commenters also support revisions to transmission stated rates to reflect income 

tax allowance adjustments for the amortization of excess or deficient ADIT.53 TAPS 

states that, to address these adjustments, it supports an approach similar to utility-specific 

investigations the Commission opened with respect to the change in the federal corporate 

income tax rate.54 However, TAPS expresses concern that stated rate customers will find 

it challenging to verify their utilities’ calculation and asserts that, thus, the Commission 

should encourage utilities to work with customers toward a mutually acceptable solution 

and require those utilities to file the return mechanism, including detailed documentation 

and worksheets so that the calculation of excess ADIT can be validated.55

Some commenters caution the Commission against mandating that public utilities 

adopt a single method to adjust their formula rates’ income tax allowances. Instead, these 

commenters suggest that the Commission recognize public utilities’ specific 

circumstances by evaluating proposed modifications on a case-by-case basis or 

recognizing that some formula rates already adjust the income tax allowance by the 

amortization of excess or deficient ADIT and, therefore, would not require revision.56 

 53 Avangrid NOI Comments at 9, National Grid NOI Comments at 15, TAPS NOI 

Comments at 6.

54 TAPS NOI Comments at 6 (citing Alcoa Power Generating Inc.—Long Sault 

Div., 162 FERC ¶ 61,224).

55 TAPS NOI Comments at 5-7.

56 Exelon NOI Comments at 14-15; Indicated Customers NOI Comments at 12-13; 

MISO Transmission Owners NOI Comments at 17.
Docket No. RM19-5-000 - 22 -

Indicated Transmission Owners argue that the Commission should make any evaluations 

on a single-issue basis.57 The Oklahoma Attorney General suggests that the Commission 

could use ongoing proceedings, such as the show cause proceedings initiated against 

public utilities whose formula rates would not automatically adjust to reflect the lower 

federal corporate income tax rate of 21 percent, to revise formula rates such that the 

income tax allowance is adjusted by the amortization of excess or deficient ADIT.58 

Consumer Advocates are concerned that absent Commission intervention, 

jurisdictional entities may begin to amortize their excess ADIT, thereby denying 

customers the full benefit of the Tax Cuts and Jobs Act. Consumer Advocates argue that 

to the extent any protected ADIT balances have been amortized to date, the Commission 

should require such excess protected ADIT amortization credits to be reversed and the 

liability balance restored to that of the implementation date of the Tax Cuts and Jobs 

Act.59

Regarding protected excess or deficient ADIT, commenters agree that the 

Commission has no need to change its existing regulations or precedent or depart from 

the Tax Cuts and Jobs Act’s normalization provisions.60 Regarding unprotected excess or 

 57 Indicated Transmission Owners NOI Comments at 11-12.

58 Oklahoma Attorney General NOI Comments at 6.

59 Consumer Advocates NOI Comments at 4.

60 AEP NOI Comments at 4-5; Ameren NOI Comments at 11; APPA and AMP 

NOI Comments at 5-6, 10; Avangrid NOI Comments at 8-9; Consumer Advocates NOI 

Comments at 6-7; DEMEC NOI Comments at 9; EEI NOI Comments at 14, 16-17; 
Docket No. RM19-5-000 - 23 -

deficient ADIT, commenters agree that the Commission should adopt a case-by-case 

approach for determining how quickly excess or deficient unprotected ADIT should be 

flowed back to or recovered from customers.61

3. Proposed Requirements

a. Formula Rates

We propose to require all public utilities with transmission formula rates to 

include a mechanism in their formula rates which decreases or increases their income tax 

allowances by any amortized excess or deficient ADIT, respectively, under 18 CFR 

35.24. Such a mechanism is necessary because, as described above, the Tax Cuts and 

Jobs Act’s reduction of the federal corporate income tax rate from 35 percent to 

21 percent means public utilities have collected from customers funds in excess of what 

is due to the IRS for ADIT liabilities and, conversely for ADIT assets, funds from 

customers insufficient to satisfy IRS tax obligations. Similar to the proposed rate base 

 

Eversource NOI Comments at 7; Exelon NOI Comments at 13; Indicated Customers NOI 

Comments at 8-9; Indicated Transmission Owners NOI Comments at 8-9; Kentucky 

Municipals NOI Comments at 6; MISO Transmission Owners NOI Comments at 8-11; 

National Grid NOI Comments at 10-11; New York Transco NOI Comments at 7-8; 

Oklahoma Attorney General NOI Comments at 6-7; PSEG NOI Comments at 7-8.

61 AEP NOI Comments at 6-7 (“However, in the event the Commission develops 

a broadly applicable amortization period, AEP recommends that period be 25 years or 

longer”); Avangrid NOI Comments at 9-11; Dominion, Comments to NOI, Docket 

No. RM18-12-000, at 12 (filed on May 21, 2018); EEI NOI Comments at 17-18; Enable 

Interstate Pipelines, Comments to NOI, Docket No. RM18-12-000, at 36-37 (filed on 

May 21, 2018); Enbridge and Spectra, Comments to NOI, Docket No. RM18-12-000, 

at 26 (filed May 21, 2018); EQT Midstream, Comments to NOI, Docket No. RM18-12-

000, at 13-14 (filed May 21, 2018); Eversource NOI Comments at 8-9; Exelon NOI 

Comments at 13-14; Indicated Transmission Owners NOI Comments at 9-10; National 

Grid NOI Comments at 11-13; New York Transco NOI Comments at 9.
Docket No. RM19-5-000 - 24 -

adjustment requirements, these proposed income tax allowance adjustment requirements 

are intended to satisfy Order No. 144’s requirement that the income tax allowance match 

the current tax cost and reflect the effects of any future changes to tax rates that may give 

rise to excess or deficient ADIT.

Similar to comments regarding adjustments to rate base, we agree with 

commenters to the NOI that prescribing a one-size-fits-all approach is not appropriate and 

that the public utilities with transmission formula rates should instead be allowed to 

propose any necessary changes to their rates on an individual basis. Accordingly, we do

not propose that all public utilities with transmission formula rates must use a single 

method to adjust their income tax allowances for any amortized excess or deficient 

ADIT. Many public utilities with transmission formula rates use different formats of rate 

templates or formulas, and a single, prescriptive method, such as the requirement of a 

single line item, may not fully capture or transparently convey the amortization of excess 

or deficient ADIT. Additionally, recent filings by public utilities that proposed revisions 

to their formula rate templates to reflect changes in income tax rates by, among other 

things, incorporating mechanisms to return excess ADIT demonstrate that companyspecific variations are necessary.

62

 62 See, e.g., Midcontinent Indep. Sys. Operator, Inc., 153 FERC ¶ 61,374; 

Midcontinent Indep. Sys. Operator, Inc., 163 FERC ¶ 61,163; Midcontinent Indep. Sys.

Operator, Inc., 164 FERC ¶ 61,113 (2018); Emera Maine, 165 FERC ¶ 61,086 (2018).
Docket No. RM19-5-000 - 25 -

Regarding the period over which the amortization of excess or deficient ADIT 

must occur, we believe that public utilities should follow the guidance provided in the 

Tax Cuts and Jobs Act, where available. As noted by commenters to the NOI, the Tax 

Cuts and Jobs Act provides a method of general applicability and requires public utilities 

to return excess protected ADIT63 no more rapidly than over the life of the underlying 

asset using the Average Rate Assumption Method, or, where a public utility’s books and 

underlying records do not contain the vintage account data necessary, it must use an 

alternative method.

64 In contrast, the Tax Cuts and Jobs Act does not specify what 

method public utilities must use for excess or deficient unprotected ADIT. We agree 

with commenters to the NOI that, because such a determination depends on the specific 

facts and circumstances for each public utility, a case-by-case approach to amortizing 

excess or deficient unprotected ADIT remains appropriate.

Consumer Advocates are concerned that a portion of the amounts allowable to be 

returned to customers under the Average Rate Assumption Method schedule would not 

be refunded due to the fact that any proposed tariff provisions to return excess ADIT as a 

result of this Proposed Rule will not be effective until after January 1, 2018. We 

 63 While the Tax Cuts and Jobs Act does not mention deficient protected ADIT 

specifically, we expect that public utilities will recover such deficient ADIT in the same 

manner prescribed for excess protected ADIT.

64 Tax Cuts and Jobs Act, Sec. 13001(b)(6)(A), 131 Stat. at 2099. If a public 

utility must use an alternative method, Commission precedent provides that the public 

utility should use the Reverse South Georgia Method for excess ADIT or the South 

Georgia Method for deficient ADIT. See Memphis Light, Gas and Water Div. v. FERC, 

707 F.2d at 569.
Docket No. RM19-5-000 - 26 -

acknowledge that in applying a tax normalization method (e.g., the Average Rate 

Assumption Method), public utilities are required to develop a schedule removing ADIT 

from rate base and returning it to customers, effective January 1, 2018, using the fastest 

allowable method to return the excess ADIT under the IRS’ normalization requirements. 

However, these requirements represent only the fastest allowable return schedule and do 

not remove a public utility’s obligation to return the excess ADIT. Any amounts allowed 

to be returned under the Average Rate Assumption Method schedule prior to the effective 

date of proposed tariff provisions made in compliance with the Proposed Rule should still 

be refunded to customers. In other words, the full regulatory liability for excess ADIT 

should be captured in rates, beginning on the effective date of any proposed tariff 

provision. We do not believe that any specific reforms are necessary to accomplish this 

because public utilities should not amortize an excess ADIT regulatory liability for 

accounting purposes until it is included in ratemaking.65 

b. Stated Rates

We propose to require all public utilities with transmission stated rates to 

(1) determine the excess and deficient income tax caused by the Tax Cuts and Jobs Act’s

reduction to the federal corporate income tax rate and (2) return this amount to or recover 

this amount from customers under 18 CFR 35.24. We also propose for public utilities 

 65 The description of Account 182.3 (Other regulatory assets) states, “The amounts 

recorded in this account are generally to be charged, concurrently with the recovery of the 

amounts in rates...” (emphasis added). 18 CFR part 101, Account 182.3 (Other 

Regulatory Assets).
Docket No. RM19-5-000 - 27 -

with transmission stated rates to calculate this excess or deficient ADIT using the ADIT 

approved in their last rate cases. We believe calculating excess or deficient ADIT in this 

manner will allow public utilities with transmission stated rates to preserve their costs of 

service as accepted in their last rate case. We are not seeking to propose a specific way 

for public utilities with transmission stated rates to return or recover the excess or 

deficient income taxes to ratepayers; rather, we will evaluate each proposal on an 

individual basis. We believe the proposed reforms will increase the likelihood that those 

customers who contributed to the related ADIT accounts receive the benefit of the Tax 

Cuts and Jobs Act.

TAPS expresses concern that the customers of public utilities with transmission 

stated rates will lack sufficient information to evaluate any proposals to return or recover 

excess or deficient ADIT, respectively. We note that the Commission’s regulations 

require public utilities filing changes to transmission rates to identify the effect of tax 

changes on those rates.66 Accordingly, we expect that public utilities with stated rates 

would include in their compliance filings resulting from this Proposed Rule supporting 

information necessary to identify, at minimum, the following: (1) how any ADIT 

accounts were re-measured and the excess or deficient ADIT contained therein; (2) the 

accounting of any excess or deficient amounts in Accounts 182.3 and 254; (3) whether 

the excess or deficient ADIT is protected or unprotected; (4) the accounts to which the 

 66 18 CFR 35.13; 18 CFR 35.24.
Docket No. RM19-5-000 - 28 -

excess or deficient ADIT will be amortized; and (5) the amortization period of the excess 

or deficient ADIT to be returned or recovered through the rates.

Finally, as noted above, public utilities with transmission stated rates must 

conform to the Tax Cuts and Jobs Act’s requirements regarding the period over which the 

amortization of protected excess or deficient ADIT must occur. We will continue to 

analyze the appropriate amortization period for unprotected ADIT on a case-by-case 

basis.

C. Support for Excess and Deficient ADIT Calculation and Amortization

1. NOI

In the NOI, the Commission sought comment on whether it should require public 

utilities to provide to the Commission, on a one-time basis, additional information, such 

as supporting worksheets, to show the computation of excess or deficient ADIT and the 

corresponding flow-back of excess ADIT to customers or recovery of deficient ADIT 

from customers. The Commission asked commenters to address what types of 

information public utilities already record for ADIT-related accounting and whether 

balances and amortization of regulatory liability and asset accounts, computation of 

excess and deficient ADIT, delineation between protected and non-protected ADIT, and a 

description of the allocation method used to determine the transmission-related portion of 

excess or deficient ADIT would be appropriate to include in a supporting worksheet.67

 67 NOI, FERC Stats. & Regs. ¶ 35,582 at P 23.
Docket No. RM19-5-000 - 29 -

2. Comments

Commenters were split regarding the requirement to provide additional 

worksheets. Some commenters assert that the Commission should not require any 

additional worksheets at this time.68 These commenters generally assert that the 

implementation of general worksheet requirements would be burdensome on the 

industry.69 They assert that any data should only be required to be submitted on a 

company by company basis, as necessary, rather than require a one-time proceeding for 

the purpose of all public utilities providing the data showing whether and how ADIT 

balances were re-measured.70 Certain commenters assert that the Commission should not 

require additional worksheets as transmission formula rates and associated protocols 

already include mechanisms to provide details to customers.71 Avangrid similarly states 

that the formula rate processes should be used to provide the level of transparency to 

verify the flowback of excess ADIT ultimately prescribed by the Commission. EEI states 

that if the Commission does require additional supporting information as part of EEI’s 

 68 See AEP NOI Comments at 8; Ameren NOI Comments at 16-18; Avangrid NOI 

Comments at 13-14; EEI NOI Comments at 20-22; Exelon NOI Comments at 15;

Indicated Transmission Owners NOI Comments at 12; MISO Transmission Owners NOI 

Comments at 18-19; and PSEG NOI Comments at 11-12.

69 See EEI NOI Comments at 20-21; Exelon NOI Comments at 15.

70 EEI NOI Comments at 20.

71 See AEP NOI Comments at 8; Ameren NOI Comments at 16-17; Avangrid NOI 

Comments at 13-14; Exelon NOI Comments at 15, Indicated Transmission Owners NOI 

Comments at 12; and MISO Transmission Owners NOI Comments at 18-19.
Docket No. RM19-5-000 - 30 -

proposed show cause orders, the Commission should first provide its proposed financial 

template, in a rulemaking, to allow for review by public utilities and stakeholders. EEI 

adds that this would reduce the burden on individual public utilities and the Commission 

and would be similar to the approach leading up to the Gas Tax Final Rule.72

Other commenters, however, assert that the Commission should require electric 

public utilities to provide a one-time filing of additional information to provide 

transparency regarding excess and deficient ADIT, and how rates will be impacted by 

any changes.73 APPA and AMP urge the Commission to require that supporting 

information be filed regarding excess or deficient ADIT, but not be limited to only 

ADIT-related material. They assert that public utilities should also describe, with 

supporting schedules, any current or projected effects on their books associated with the 

Tax Cuts and Jobs Act’s changes to bonus depreciation, or any other potential rate-related 

impacts.74 APPA and AMP further state that for public utilities with transmission 

formula rates, the utilities should provide as part of their annual updates, calculations 

showing excess ADIT amortization amounts that should be flowed back to customers in 

the applicable rate period. Consumer Advocates state that in addition to requiring a 

 72 EEI NOI Comments at 21, n. 36.

73 See APPA and AMP NOI Comments at 17-18; Consumer Advocates NOI 

Comments at 10-11; DEMEC NOI Comments at 11-12; Eversource NOI Comments 

at 11; Indicated Customers NOI Comments at 15; National Grid NOI Comments 

at 15-16; and New York Transco NOI Comments at 11.

74 APPA and AMP NOI Comments at 17-18.
Docket No. RM19-5-000 - 31 -

detailed worksheet identifying all book tax timing differences that comprise deferred tax 

liability balances, the Commission should evaluate the build-up of net operating losses as 

deferred tax assets. They assert that such balances should not automatically be inserted 

as an addition to regulated rate base.75 New York Transco states that each public utility 

should be permitted to compile and present this additional information in the manner it 

deems most efficient and useful for stakeholders. New York Transco states that if 

stakeholders desire additional information, any interested party can seek that information 

consistent with the formula rate implementation protocols that address information 

sharing. While not objecting to the provision of additional information, National Grid 

states that the Commission should not impose this requirement until after December 2018 

as the additional information will not be meaningful until after companies have set the 

final rate change balance after the filing of their fiscal year 2018 federal corporate income 

tax returns.76

3. Proposed Requirements

a. Formula Rates

We propose to require all public utilities with transmission formula rates to 

incorporate a new permanent worksheet into their transmission formula rates that will 

annually track information related to excess or deficient ADIT under 18 CFR 35.24. We 

believe that this reform is necessary to provide interested parties adequate transparency 

 75 Consumer Advocates NOI Comments at 10-11.

76 National Grid NOI Comments at 16.
Docket No. RM19-5-000 - 32 -

regarding how public utilities with transmission formula rates adjust their rate bases and 

income tax allowances to account for excess or deficient ADIT. We also believe that 

requiring public utilities with transmission formula rates to provide this information on an 

annual basis rather than a one-time basis will better allow interested parties to follow 

excess or deficient ADIT as it is included in an annual revenue requirement and provide 

transparency as to any future changes in tax rates. We also believe that updating the 

proposed worksheet annually will better align with the nature of the vast majority of 

formula rates where calculation methodologies and input sources are accepted prior to 

those inputs being populated. Consequently, we do not propose that any worksheet be 

populated when submitted to the Commission for compliance, only that the function of 

the worksheet be clear.

Similar to other reforms proposed in this Proposed Rule, we do not propose a 

pro forma worksheet that must be adopted by all public utilities with transmission 

formula rates; rather, we propose requiring general categories of information that each 

excess or deficient ADIT tracking worksheet must contain. We propose that each excess 

or deficient ADIT worksheet must, at minimum, include the following: (1) how any 

ADIT accounts were re-measured and the excess or deficient ADIT contained therein; 

(2) the accounting of any excess or deficient amounts in Accounts 182.3 and 254; 

(3) whether the excess or deficient ADIT is protected or unprotected; (4) the accounts to 

which the excess or deficient ADIT are amortized; and (5) the amortization period of the 

excess or deficient ADIT being returned or recovered through the rates. Because we do 

not propose to define the form any worksheet or worksheets must take, only the 
Docket No. RM19-5-000 - 33 -

information it must contain, we propose evaluating such worksheet or worksheets on an 

individual basis. We also request comments on whether we should consider additional 

guiding principles to those described above.

We disagree with commenters to the NOI that argue that providing such 

information is overly burdensome for the industry. Public utilities with transmission 

formula rates will already have gathered the information we propose to require in the 

worksheets to re-measure their ADIT balances and develop amortization schedules 

following the Tax Cuts and Jobs Act’s reduction of the federal corporate income tax rate. 

Further, the Commission has already accepted worksheets that convey information 

similar to the proposed requirements outlined above.77

We also disagree with commenters to the NOI that public utilities’ existing 

formula rate protocols should preclude the Commission from proposing an excess or 

deficient ADIT worksheet. While the Commission established that formula rate 

protocols should allow for the provision of any information necessary to understand the 

inputs to the rate in order to provide sufficient transparency to interested parties, the 

Commission has since required public utilities to revise their formula rates to include 

greater detail where it has deemed that certain inputs to the rate are complex enough to 

warrant prior understanding of their effect.78 As related to excess and deficient ADIT, 

 77 See, e.g., Arizona Public Service Company, Docket No. ER18-975-001 

(May 22, 2018) (delegated order).

78 See, e.g., Midcontinent Indep. Sys. Operator, Inc., 153 FERC ¶ 61,374 at P 14 

(directing certain transmission companies to revise their transmission formula rates to 
Docket No. RM19-5-000 - 34 -

we believe the proposed worksheet will allow interested parties to ensure they are 

receiving the benefits of the Tax Cuts and Jobs Act, as well as to track over time any 

changes in the rate effects of the tax change as, for example, assets are sold or retired.

b. Stated Rates

As described above in the proposal for return of excess ADIT or recovery of 

deficient ADIT, we believe that the Commission’s existing regulations require public 

utilities with transmission stated rates to provide sufficient support for any proposed taxrelated changes. As a result, we do not propose any additional information requirements 

for public utilities with transmission stated rates.

III. Proposed Compliance Procedures

We propose to require each public utility with transmission stated or formula rates

to submit a compliance filing within 90 days of the effective date of any subsequent final 

rule in this proceeding to revise its transmission formula or stated rates, as necessary, to 

demonstrate that it meets the requirements set forth in any subsequent final rule.

Some public utilities with transmission formula rates may already have 

mechanisms in place in their rates that address the issues and concerns addressed by any

subsequent final rule. Where these provisions would be modified by any subsequent final 

rule, the public utility must either comply with any subsequent final rule or demonstrate 

 

include worksheets to ensure appropriate transparency). The Commission has also 

regularly required certain revisions to new formula rates to provide greater transparency. 

See, e.g., Xcel Energy Sw. Transmission Co., LLC, 149 FERC ¶ 61,182 (2014); Xcel 

Energy Transmission Dev. Co., LLC, 149 FERC ¶ 61,181 (2014); Transource Wisconsin, 

LLC, 149 FERC ¶ 61,180 (2014); Transource Kansas, LLC, 151 FERC ¶ 61,010 (2015). 
Docket No. RM19-5-000 - 35 -

that these previously approved variations continue to be consistent with or superior to the

requirements of any subsequent final rule.

The Commission will assess whether each compliance filing satisfies the proposed 

requirements stated above and issue additional orders as necessary to ensure that each 

public utility with transmission stated or formula rates meets the requirements of the 

subsequent final rule.

IV. Information Collection Statement

The collection of information contained in this Proposed Rule is subject to review 

by the Office of Management and Budget (OMB) regulations under section 3507(d) of 

the Paperwork Reduction Act of 1995 (PRA).79 OMB’s regulations require approval of 

certain informational collection requirements imposed by an agency.80 Upon approval of 

a collection(s) of information, OMB will assign an OMB control number and an 

expiration date. Respondents subject to the filing requirements will not be penalized for 

failing to respond to these collections of information unless the collections of information 

display a valid OMB control number.

The reforms proposed in this Proposed Rule address public utilities that have 

transmission formula rates and transmission stated rates. The reforms related to 

transmission formula rates represent new requirements for these entities under the 

 79 44 U.S.C. 3507(d).

80 5 CFR 1320.11.
Docket No. RM19-5-000 - 36 -

Commission’s regulations in 18 CFR 35.24, which we believe are necessary because of 

the dramatic changes in the rate structure of the electric transmission industry since this 

provision was originally promulgated in 1981.81 These new requirements would require 

each public utility with a transmission formula rate to revise its rate so that any excess or 

deficient ADIT is properly reflected in its revenue requirement following a change in tax 

rates, such as those established by the Tax Cuts and Jobs Act. Additionally, each public 

utility with a transmission formula rate would be required to incorporate a new 

permanent worksheet into its transmission formula rate to increase transparency. 

The reforms required by this Proposed Rule will require each public utility with 

stated rates to calculate the excess and deficient ADIT caused by the Tax Cuts and Jobs 

Act and to return to or recover from customers those amounts. This reform is intended to 

increase the likelihood that customers who contributed to the excess ADIT balance timely 

receive the benefits of the Tax Cuts and Jobs Act. 

The reforms proposed in this Proposed Rule would require compliance filings with 

the Commission by each public utility with transmission stated or formula rates to allow 

the Commission the opportunity to determine whether each such public utility met the 

requirements detailed in this Proposed Rule. 

We anticipate the reforms proposed in this Proposed Rule, once implemented, 

would not significantly change currently existing burdens on an ongoing basis. With 

regard to those public utilities with transmission stated or formula rates that believe that 

 81 See discussion infra Section II.E.
Docket No. RM19-5-000 - 37 -

they already comply with the reforms proposed in this Proposed Rule, they could 

demonstrate their compliance in the filing required 90 days after the effective date of the 

final revision in this proceeding. We will submit the proposed reporting requirements to 

OMB for its review and approval under section 3507(d) of the Paperwork Reduction 

Act.82

While we expect the adoption of the reforms proposed in this Proposed Rule to 

provide significant benefits, the Commission understands that implementation can be a 

complex and costly endeavor. We solicit comments on the accuracy of provided burden 

and cost estimates and any suggested methods for minimizing the respondents’ burdens.

Burden Estimate and Information Collection Costs: We believe that the burden 

estimates below are representative of the average burden on respondents. The estimated 

burden and cost for the requirements contained in this Proposed Rule follow.

 82 44 U.S.C. 3507(d).
Docket No. RM19-5-000 - 38 -

RM19-5-000 NOPR

(Public Utility Transmission Rate Changes to Address Accumulated Deferred Income Taxes)

Number of 

Respondents

(1)

Annual 

Number of 

Responses 

per 

Respondent

(2)

Total 

Number of 

Responses 

(1)*(2)=(3)

Average 

Burden & 

Cost Per 

Response

83

(4)

Total 

Annual 

Burden 

Hours & 

Total 

Annual Cost

(3)*(4)=(5)

Cost per 

Respondent

($)

(5)÷(1)

Revising formula 

rates so that 

excess ADIT is 

deducted and/or 

deficient ADIT 

is added to rate 

base (onetime)84

106 1 106 8 hours;

$736

848 hours;

$78,016

$736

Revising formula 

rates so that any 

excess and/or 

deficient ADIT 

is amortized

(one-time)

106 1 106 8 hours;

$736

848 hours;

$78,016 $736

 83 The loaded hourly wage figure (includes benefits) is based on the average of the 

occupational categories for 2017 found on the Bureau of Labor Statistics website 

(http://www.bls.gov/oes/current/naics2_22.htm):

Accountant (Occupation Code: 13-2011): $56.59

Management (Occupation Code: 11-0000): $94.28

Legal (Occupation Code: 23-0000): $143.68

Office and Administrative Support (Occupation Code: 43-0000): $41.34

These various occupational categories’ wage figures are averaged and weighted equally 

as follows: ($94.28/hour + $61.55/hour + $66.90/hour + $143.68/hour) ÷ 4 = 

$91.60/hour. The resulting wage figure is rounded to $92.00/hour for use in calculating 

wage figures in the NOPR in Docket No. RM19-5-000.

84 One-time burdens apply in Year One only. There will be no subsequent burden 

in Years 2 and beyond.
Docket No. RM19-5-000 - 39 -

Revising 

transmission 

stated rates to 

return or recover 

excess or 

deficient ADIT

(one-time)

31 1 31 15 hours;

$1,380

465 hours;

$42,780 $1,380

Requiring public 

utilities with 

transmission 

formula rates to 

incorporate a 

new permanent 

worksheet that 

will annually 

track ADIT 

information

(one-time)

106 1 106 40 hours;

$3,680

4,240 hours;

$390,080 $3,680

Total (Stated 

Rates)85 31 465 hours;$42,780

Total (Formula 

Rates)86 318 5,936 hours;$546,112

TOTAL 349 6,532 hours;

$588,892

Cost to Comply: We have projected the total cost of compliance as follows:87

 85 Total for Public Utilities with Transmission Stated Rates

86 Total for Public Utilities with Transmission Formula Rates

87 For a public utility transmission provider with transmission formula rates, the 

costs for Year 1 would consist of filing proposed changes to its transmission formula 

rates, including the addition of a new permanent worksheet, with the Commission within 

90 days of the effective date of the final revision plus initial implementation. The 

Commission does not expect any ongoing costs beyond the initial compliance in Year 1. 

For a public utility transmission provider with transmission stated rates, the costs for 

Year 1 would consist of filing proposed changes to its transmission stated rates that allow 

it to return to or recover from customers any excess or deficient ADIT caused by the Tax 

Cuts and Jobs Act with the Commission within 90 days of the effective date of the final 

revision plus initial implementation. 
Docket No. RM19-5-000 - 40 -

• Year 1: $546,112 ($5,152/utility) for public utilities with transmission formula 

rates; $42,780 ($1,380/utility) for public utilities with transmission stated rates.

• Year 2: $0

After Year 1, the reforms proposed in this Proposed Rule, once implemented, would not 

significantly change existing burdens on an ongoing basis.

Title: FERC-516, Electric Rate Schedules and Tariff Filings.

Action: Proposed revisions to an information collection.

OMB Control No.: 1902-0096

Respondents for this Proposal: Businesses or other for profit and/or not-for-profit 

institutions.

Frequency of Information: One-time during year one.

Necessity of Information: The Federal Energy Regulatory Commission makes this 

Proposed Rule to ensure that (1) rate base neutrality is preserved following enactment of 

the Tax Cuts and Jobs Act; (2) the reduction in ADIT on the books of rate-regulated 

companies that was collected from customers but is no longer payable to the IRS due to 

the Tax Cuts and Jobs Act is returned to or recovered from ratepayers consistent with 

general ratemaking principles; and (3) there is increased transparency for the process of 

excess and deficient ADIT calculation and amortization.

Internal Review: We have reviewed the proposed changes and have determined that such 

changes are necessary. These requirements conform to the Commission’s need for 

efficient information collection, communication, and management within the energy 
Docket No. RM19-5-000 - 41 -

industry. We have specific, objective support for the burden estimates associated with 

the information collection requirements.

Interested persons may obtain information on the reporting requirements by 

contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE, 

Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director], 

e-mail: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873. 

Comments concerning the collection of information and the associated burden 

estimate(s), may also be sent to the Office of Information and Regulatory Affairs, 

Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503 

[Attention: Desk Officer for the Federal Energy Regulatory Commission, phone: 

(202) 395-0710, fax: (202) 395-7285]. Due to security concerns, comments should be 

sent electronically to the following e-mail address: oira_submission@omb.eop.gov. 

Comments submitted to OMB should include FERC-516 and OMB Control 

No. 1902-0096.

V. Environmental Analysis

We are required to prepare an Environmental Assessment or an Environmental 

Impact Statement for any action that may have a significant adverse effect on the human 

environment.88 The actions proposed to be taken in this Proposed Rule fall within the 

categorical exclusion under section 380.4(a)(15) of the Commission’s regulations. This 

 88 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, FERC Stats. & Regs. ¶ 30,783 (1987) (cross-referenced at 41 FERC 

¶ 61,284).
Docket No. RM19-5-000 - 42 -

section provides a categorical exemption for approval of actions under sections 205 and 

206 of the FPA relating to the filing of schedules containing all rates and charges for the 

transmission or sale of electric energy subject to the Commission’s jurisdiction, plus the 

classification, practices, contracts and regulations that affect rates, charges, classification, 

and services.89 The revisions proposed in this Proposed Rule fall within the categorical 

exemptions provided in the Commission’s regulations, and as a result neither an 

Environmental Impact Statement nor an Environmental Assessment is required.

VI. Regulatory Flexibility Act Certification

The Regulatory Flexibility Act of 1980 (RFA)90 generally requires a description 

and analysis of proposed rules that will have significant economic impact on a substantial 

number of small entities. The RFA does not mandate any particular outcome in a 

rulemaking. It only requires consideration of alternatives that are less burdensome to 

small entities and an agency explanation of why alternatives were rejected.

The Small Business Administration (SBA) revised its size standards (effective 

January 22, 2014) for electric utilities from a standard based on megawatt hours to a 

standard based on the number of employees, including affiliates. Under SBA’s 

standards, some transmission owners will fall under the following category and 

 89 18 CFR 380.4(a)(15).

90 5 U.S.C. 601-612.
Docket No. RM19-5-000 - 43 -

associated size threshold: electric bulk power transmission and control, at 

500 employees.91

We estimate that the total number of public utility transmission providers with

formula rates that would have to develop revisions to their formula rates, including the 

addition of a new permanent worksheet, and make compliance filings in response to this 

Proposed Rule is 106. Of these, we estimate that approximately 43 percent are small 

entities (approximately 46 entities). We estimate the average total cost to each of these 

entities will be $5,152 in Year 1 and $0 in subsequent years. In addition, we estimate that 

the total number of public utility transmission providers with stated rates that will have to 

calculate the excess and deficient income tax to return to or recover from customers is 31. 

Of these, we estimate that approximately 43 percent are small entities (approximately 

13 entities). We estimate the average total cost to each of these entities will be between 

$1,380 in Year One and $0 in subsequent years. According to SBA guidance, the 

determination of significance of impact “should be seen as relative to the size of the 

business, the size of the competitor’s business, and the impact the regulation has on larger 

competitors.”92 We do not consider the estimated burden to be a significant economic 

 91 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121 (Electric Bulk 

Power Transmission and Control).

92 U.S. Small Business Administration, A Guide for Government Agencies How to 

Comply with the Regulatory Flexibility Act, at 18 (May 2012), 

https://www.sba.gov/sites/default/files/advocacy/rfaguide_0512_0.pdf.
Docket No. RM19-5-000 - 44 -

impact. As a result, we certify that the revisions proposed in this Proposed Rule will not 

have a significant economic impact on a substantial number of small entities.

VII. Comment Procedures

We invite interested persons to submit comments on the matters and issues 

proposed in this notice to be adopted, including any related matters or alternative 

proposals that commenters may wish to discuss. Comments are due [INSERT DATE 30 

DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER]. 

Comments must refer to Docket No. RM19-5-000, and must include the commenter's 

name, the organization they represent, if applicable, and their address in their comments.

The Commission encourages comments to be filed electronically via the eFiling 

link on the Commission's web site at http://www.ferc.gov. The Commission accepts 

most standard word processing formats. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing.

Commenters that are not able to file comments electronically must send an 

original of their comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street N.E., Washington, DC, 20426.

All comments will be placed in the Commission's public files and may be viewed, 

printed, or downloaded remotely as described in the Document Availability section 

below. Commenters on this proposal are not required to serve copies of their comments 

on other commenters.
Docket No. RM19-5-000 - 45 -

VIII. Document Availability

In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission's Home Page 

(http://www.ferc.gov) and in the Commission's Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, N.E., Room 2A,

Washington D.C. 20426.

From the Commission's Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at 202-502-6652 (toll free 

at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202)502-8659. E-mail the Public Reference Room at 

public.referenceroom@ferc.gov.

By direction of the Commission. Commissioner McIntyre is not voting on this order.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM19-5-000 - 46 -

Note: Appendix A will not be published in the Federal Register.

Appendix A – List of Commenters to NOI

Short Name Commenter

AEP American Electric Power Service Corporation

Ameren Ameren Services Company on behalf of Union Electric 

Company d/b/a Ameren Missouri, Ameren Illinois 

Company d/b/a Ameren Illinois, and Ameren Transmission 

Company of Illinois

AOPL Association of Oil Pipe Lines

APGA American Public Gas Association

APPA and AMP American Public Power Association and American 

Municipal Power, Inc.

Avangrid Avangrid Networks, Inc.

Berkshire Berkshire Hathaway Energy Pipeline Group

Boardwalk Boardwalk Pipeline Partners LP

CAPP Canadian Association of Petroleum Producers

Consumer Advocates Office of the Attorney General of the Commonwealth of 

Massachusetts; the Ohio Consumers' Counsel; the 

Maryland Office of People's Counsel; the Nevada Bureau 

of Consumer Protection; the Delaware Division of the 

Public Advocate; the Pennsylvania Office of Consumer 

Advocate; the Citizens Utility Board of Wisconsin; and the 

Indiana Office of Utility Consumer Counselor

DEMEC Delaware Municipal Electric Corporation, Inc.

Dominion Energy Gas Pipelines Dominion Energy Transmission, Inc.; Dominion Energy 

Carolina Gas Transmission, LLC; Dominion Energy 

Quester Pipeline, LLC; Dominion Energy Overthrust 

Pipeline, LLC; and Questar Southern Trails Pipeline 

Company
Docket No. RM19-5-000 - 47 -

EEI Edison Electric Institute

Enable Interstate Pipelines Enable Mississippi River Transmission, LLC and Enable 

Gas Transmission, LLC

Enbridge and Spectra Enbridge Energy Partners, L.P. and Spectra Energy 

Partners, LP

EQT Midstream EQT Midstream Partners, LP

Eversource Eversource Energy Service Company

Exelon Exelon Corporation

Indicated Customers Central Electric Power Cooperative, Inc., North Carolina 

Electric Membership Corporation, Southern Maryland 

Electric Cooperative, Inc., and the New Jersey Division of 

Rate Counsel

Indicated Local Distribution 

Companies

Atmos Energy Corporation; the City of Charlottesville, 

Virginia; the City of Richmond, Virginia; the Easton 

Utilities Commission; Exelon Corporation; and Washington 

Gas Light Company

Indicated Transmission Owners American Electric Power Service Corporation; Dominion 

Energy Services, Inc., on behalf of Virginia Electric and 

Power Company d/b/a Dominion Energy Virginia; 

Duquesne Light Company; Exelon Corporation; 

FirstEnergy Service Company, on behalf of American 

Transmission Systems, Incorporated; Jersey Central Power 

& Light Company; Mid-Atlantic Interstate Transmission, 

LLC; West Penn Power Company; The Potomac Edison 

Company; Monongahela Power Company; and PPL 

Electric Utilities Corp.

INGAA Interstate Natural Gas Association of America

ITC Great Plains ITC Great Plains, LLC

Kentucky Municipals Frankfort Plant Board of Frankfort, Kentucky; Barbourville 

Utility Commission of the City of Barbourville, City; 

Utilities Commission of the City of Corbin; and the Cities 

of Bardwell, Berea, Falmouth, Madisonville, and 

Providence, Kentucky
Docket No. RM19-5-000 - 48 -

Kinder Morgan Entities Natural Gas Pipeline Company of America LLC; 

Tennessee Gas Pipeline Company, L.L.C.; Southern 

Natural Gas Company, L.L.C.; Colorado Interstate Gas 

Company, L.L.C.; Wyoming Interstate Company, L.L.C.; 

El Paso Natural Gas Company, L.L.C.; Mojave Pipeline 

Company, L.L.C.; Bear Creek Storage Company, L.L.C.; 

Cheyenne Plains Gas Pipeline Company, L.L.C.; Elba 

Express Company, L.L.C.; Kinder Morgan Louisiana 

Pipeline LLC; Southern LNG Company, L.L.C.; and 

TransColorado Gas Transmission Company LLC

Kinder Morgan Subsidiaries SFPP, L.P.; Calnev Pipe Line, LLC; and Kinder Morgan 

Cochin, LLC

MISO Transmission Owners Ameren Services Company, as agent for Union Electric 

Company d/b/a Ameren Missouri, Ameren Illinois 

Company d/b/a Ameren Illinois and Ameren Transmission 

Company of Illinois; American Transmission Company 

LLC; Central Minnesota Municipal Power Agency; City 

Water, Light & Power (Springfield, IL); Cleco Power LLC; 

Cooperative Energy; Dairyland Power Cooperative; Duke 

Energy Business Services, LLC for Duke Energy Indiana, 

LLC; East Texas Electric Cooperative; Entergy Arkansas, 

Inc.; Entergy Louisiana, LLC; Entergy Mississippi, Inc.; 

Entergy New Orleans, LLC; Entergy Texas, Inc.; Great 

River Energy; Indiana Municipal Power Agency; 

Indianapolis Power & Light Company; International

Transmission Company d/b/a ITCTransmission; ITC 

Midwest LLC; Lafayette Utilities System; Michigan 

Electric Transmission Company, LLC; MidAmerican 

Energy Company; Minnesota Power (and its subsidiary 

Superior Water, L&P); Missouri River Energy Services; 

Montana-Dakota Utilities Co.; Northern Indiana Public 

Service Company LLC; Northern States Power Company, a 

Minnesota corporation, and Northern States Power 

Company, a Wisconsin corporation, subsidiaries of Xcel 

Energy Inc.; Northwestern Wisconsin Electric Company; 

Otter Tail Power Company; Prairie Power Inc.; Southern 

Indiana Gas & Electric Company (d/b/a Vectren Energy 

Delivery of Indiana); Southern Minnesota Municipal Power 

Agency; Wabash Valley Power Association, Inc.; and 

Wolverine Power Supply Cooperative, Inc.
Docket No. RM19-5-000 - 49 -

National Grid National Grid USA

Natural Gas Indicated Shippers Aera Energy, LLC; Anadarko Energy Services Company; 

Apache Corporation; BP Energy Company; ConocoPhillips 

Company; Hess Corporation; Occidental Energy 

Marketing, Inc.; Petrohawk Energy Corporation; and XTO 

Energy, Inc.

New York Transco New York Transco LLC

Oklahoma Attorney General Mike Hunter, Oklahoma Attorney General

PJM PJM Interconnection, L.L.C.

Plains Plains Pipeline, L.P.

Process Gas and American 

Forest and Paper

Process Gas Consumers Group and American Forest and 

Paper Association

PSEG Public Service Electric and Gas Company

Tallgrass Pipelines Trailblazer Pipeline Company LLC; Tallgrass Interstate 

Gas Transmission, LLC; and Rockies Express Pipeline 

LLC

TAPS Transmission Access Policy Study Group

TransCanada TransCanada Corporation

United Airlines Petitioners United Airlines, Inc.; American Airlines, Inc.; Delta Air 

Lines, Inc.; Southwest Airlines, Co.; BP West Coast 

Products LLC; ExxonMobil Oil Corporation; Chevron 

Products Company; HollyFrontier Refining & Marketing 

LLC; Valero Marketing and Supply Company; Airlines for 

America; and the National Propane Gas Association

Williams Williams Companies, Inc.