76822 Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices 

3See 18 CFR parts 101 and 201, Plant Instruction 

No. 5 (f), Plant Purchased or Sold (where the 

Commission’s regulations require the use of 

nonoperating accounts to record gains and losses, 

and sales costs, associated with the sale of plant); 

Cent. La. Elec. Co., Opinion No. 394, 71 FERC 

¶ 61,225 (1995) (where the Commission determined 

that sales of receivables should be treated as 

nonoperating activities, and the expenses associated 

with such sales should likewise be recorded as 

nonoperating); and Sw. Pub. Serv. Co., 188 FERC 

¶ 61,102 (2024) (where the Commission determined 

transaction costs associated with sales of 

production tax credits are nonoperating in nature). 

4See, e.g., Ga. Power Co., Docket No. AC16–109– 

000 (Aug. 5, 2016) (unpublished letter order). 

and, therefore, generally should be 

accounted for using nonoperating 

accounts.3 Consistent with this longstanding policy, the transfer of income 

tax credits should be treated as a 

nonoperating activity. 

Accordingly, this accounting 

guidance requires an entity to treat the 

revenue received from the transfer of the 

income tax credit (i.e., the entirety of the 

cash proceeds) and any costs to 

facilitate the transfer, as nonoperating 

income or expense consistent with the 

underlying nature of the transfer as a 

nonoperating activity. Additionally, 

upon a transfer of an income tax credit 

to an independent third party, an entity 

must derecognize all associated 

balances previously recorded on its 

books, including associated 

accumulated deferred income tax 

(ADIT) balances, consistent with the 

accounting treatment for a disposition of 

an asset that had associated ADIT prior 

to a sale.4

An entity that purchases a noninvestment tax credit, such as a 

production tax credit, from an 

independent third party, is required to 

record the tax credit on its books using 

the same account (i.e., an ADIT asset) 

that it would have used had the entity 

itself generated the tax credit for use on 

its own income tax return. An entity 

that purchases an investment tax credit 

from an independent third party is 

required to use either the flow-through 

or deferred method of accounting for 

investment tax credits, consistent with 

the Commission’s existing accounting 

regulations, as if the entity itself 

received the upfront tax credit from the 

IRS. In all cases, an entity is required to 

record the costs incurred to facilitate a 

transfer of income tax credits as 

nonoperating. 

This guidance is for accounting 

purposes only and is not intended to 

prejudice the rate treatment of the 

transfer of income tax credits in any 

proceeding before the Commission. 

Appendix A provides an example that 

describes the accounting for 

transferability of an investment tax 

credit, and an example that describes 

the accounting for transferability of a 

non-investment tax credit such as a 

production tax credit. 

Appendix A 

Illustrative Examples of the Application 

of the Accounting Release 

Example 1: Accounting for 

transferability of an Investment Tax 

Credit (ITC). 

The entire cash received from the 

transfer of ITCs is treated as 

nonoperating income because the 

transferred ITC is intended to merely 

take a new form (i.e., the ITC is 

monetized into cash) upon its sale to a 

third party (i.e., the seller effectively 

receives the entirety of the cash from the 

sale as if the IRS directly paid the seller 

for the ITC). Any costs to facilitate the 

sale are likewise treated as nonoperating 

expense. If an entity previously 

maintained accumulated deferred 

income tax (ADIT) (e.g., in Account 190) 

associated with ITCs (i.e., in Account 

255), such an entity should derecognize, 

both the ITC and its associated ADIT 

upon transfer. 

Journal entry to record the entire cash 

proceeds from the sale of the ITC: 

Debit Account 131, Cash, Credit 

Account 421, Miscellaneous 

Nonoperating Income 

Journal entry to record costs to facilitate 

the sale of the ITC: 

Debit Account 426.5, Other 

Deductions Credit Account 131, 

Cash 

Journal entry to derecognize the ITC 

upon the sale: 

Debit Account 255, Accumulated 

Deferred Investment Tax Credits, 

Credit Account 411.4, ITC 

Adjustments, Utility Operations 

Journal entry to derecognize the 

associated ADIT asset upon the sale 

of the ITC: 

Debit Account 410.1, Provision for 

Deferred Income Taxes, Operating 

Income, Credit Account 190, 

Accumulated Deferred Income 

Taxes 

Example 2: Accounting for 

transferability of a Production Tax 

Credit (PTC). 

The entire cash received from the 

transfer of PTCs is treated as 

nonoperating income, and any costs to 

facilitate the sale are likewise treated as 

nonoperating expense. If an entity 

previously maintained ADIT assets (e.g., 

in Account 190) for unutilized PTCs 

(i.e., unused on the entity’s income tax 

return), such ADIT should be 

derecognized upon the sale of the PTC. 

Journal entry to record the entire cash 

proceeds from the sale of the PTC: 

Debit Account 131, Cash, Credit 

Account 421, Miscellaneous 

Nonoperating Income 

Journal entry to record costs to facilitate 

the sale of the PTC: 

Debit Account 426.5, Other 

Deductions, Credit Account 131, 

Cash 

Journal entry to derecognize the 

associated ADIT asset upon the sale 

of the PTC: 

Debit Account 410.1, Provision for 

Deferred Income Taxes, Operating 

Income, Credit Account 190, 

Accumulated Deferred Income 

Taxes 

[FR Doc. 2024–21290 Filed 9–18–24; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

Combined Notice of Filings 

Take notice that the Commission has 

received the following Natural Gas 

Pipeline Rate and Refund Report filings: 

Filings Instituting Proceedings 

Docket Numbers: RP24–1062–000. 

Applicants: Equitrans, L.P. 

Description: 4(d) Rate Filing: Formula 

Based Negotiated Rate—10/1/2024 

Update to be effective 10/1/2024. 

Filed Date: 9/12/24. 

Accession Number: 20240912–5001. 

Comment Date: 5 p.m. ET 9/24/24. 

Docket Numbers: RP24–1063–000. 

Applicants: Equitrans, L.P. 

Description: Compliance filing: 

Operational Purchases and Sales 2024 to 

be effective N/A. 

Filed Date: 9/12/24. 

Accession Number: 20240912–5007. 

Comment Date: 5 p.m. ET 9/24/24. 

Docket Numbers: RP24–1064–000. 

Applicants: Texas Eastern 

Transmission, L.P. 

Description: 4(d) Rate Filing: 

Negotiated Rates—Nextera 911957 and 

911890 eff 10–1–24 to be effective 10/ 

1/2024. 

Filed Date: 9/12/24. 

Accession Number: 20240912–5043. 

Comment Date: 5 p.m. ET 9/24/24. 

Any person desiring to intervene, to 

protest, or to answer a complaint in any 

of the above proceedings must file in 

accordance with Rules 211, 214, or 206 

of the Commission’s Regulations (18 

CFR 385.211, 385.214, or 385.206) on or 

before 5:00 p.m. Eastern time on the 

specified comment date. Protests may be 

considered, but intervention is 

necessary to become a party to the 

proceeding. 

The filings are accessible in the 

Commission’s eLibrary system (https:// 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices 76823 

elibrary.ferc.gov/idmws/search/ 

fercgensearch.asp) by querying the 

docket number. 

eFiling is encouraged. More detailed 

information relating to filing 

requirements, interventions, protests, 

service, and qualifying facilities filings 

can be found at: http://www.ferc.gov/ 

docs-filing/efiling/filing-req.pdf. For 

other information, call (866) 208–3676 

(toll free). For TTY, call (202) 502–8659. 

The Commission’s Office of Public 

Participation (OPP) supports meaningful 

public engagement and participation in 

Commission proceedings. OPP can help 

members of the public, including 

landowners, environmental justice 

communities, Tribal members and 

others, access publicly available 

information and navigate Commission 

processes. For public inquiries and 

assistance with making filings such as 

interventions, comments, or requests for 

rehearing, the public is encouraged to 

contact OPP at (202) 502–6595 or OPP@

ferc.gov. 

Dated: September 12, 2024. 

Debbie-Anne A. Reese, 

Acting Secretary. 

[FR Doc. 2024–21293 Filed 9–18–24; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Project No. 15337–001] 

Lock 47 Hydro, LLC; Notice of Intent 

To File License Application, Filing of 

Pre-Application Document, and 

Approving Use of the Traditional 

Licensing Process 

a. Type of Filing: Notice of Intent to 

File License Application and Request to 

Use the Traditional Licensing Process 

(TLP). 

b. Project No.: 15337–001. 

c. Date Filed: July 19, 2024. 

d. Submitted By: Lock 47 Hydro, LLC. 

e. Name of Project: Chain Dam 

Hydroelectric Project. 

f. Location: On the Lehigh River, in 

Palmer Township, and the City of 

Easton Pennsylvania, both located in 

Northampton County. The project does 

not occupy any federal land. 

g. Filed Pursuant to: 18 CFR 5.3 of the 

Commission’s regulations. 

h. Potential Applicant Contact: 

Michael Kerr, Lock 47 Hydro, LLC, 100 

Cummings Center, Suite 451C, Beverly, 

MA 01915; (978) 360–2547; email— 

michael@nehydropower.com. 

i. FERC Contact: Silvia Pineda-Munoz 

at (202) 502–8388; or email at 

silvia.pineda-munoz@ferc.gov. 

j. Lock 47 Hydro, LLC filed its request 

to use the Traditional Licensing Process 

on July 19, 2024, and provided public 

notice of its request on July 25, 2024, 

and August 1, 2024. In a letter dated 

September 12, 2024, the Director of the 

Division of Hydropower Licensing 

approved 47 Hydro, LLC’s request to use 

the Traditional Licensing Process. 

k. With this notice, we are initiating 

informal consultation with the U.S. Fish 

and Wildlife Service under section 7 of 

the Endangered Species Act and the 

joint agency regulations thereunder at 

50 CFR part 402; and NOAA Fisheries 

under section 305(b) of the MagnusonStevens Fishery Conservation and 

Management Act and implementing 

regulations at 50 CFR 600.920. We are 

also initiating consultation with the 

Pennsylvania State Historic Preservation 

Officer, as required by section 106, 

National Historic Preservation Act, and 

the implementing regulations of the 

Advisory Council on Historic 

Preservation at 36 CFR 800.2. 

l. With this notice, we are designating 

Lock 47 Hydro, LLC as the 

Commission’s non-federal 

representative for carrying out informal 

consultation pursuant to section 7 of the 

Endangered Species Act and section 

305(b) of the Magnuson-Stevens Fishery 

Conservation and Management Act; and 

consultation pursuant to section 106 of 

the National Historic Preservation Act. 

m. Lock 47 Hydro, LLC filed a PreApplication Document (PAD; including 

a proposed process plan and schedule) 

with the Commission, pursuant to 18 

CFR 5.6 of the Commission’s 

regulations. 

n. A copy of the PAD may be viewed 

on the Commission’s website (http://

www.ferc.gov), using the ‘‘eLibrary’’ 

link. Enter the docket number, 

excluding the last three digits in the 

docket number field, to access the 

document. For assistance, contact FERC 

Online Support at 

FERCOnlineSupport@ferc.gov, (866) 

208–3676 (toll free), or (202) 502–8659 

(TTY). 

You may register online at https://

ferconline.ferc.gov/FERCOnline.aspx to 

be notified via email of new filings and 

issuances related to this or other 

pending projects. For assistance, contact 

FERC Online Support. 

o. The applicant states its unequivocal 

intent to submit an application for an 

original license for Project No. 15337. 

p. The Commission’s Office of Public 

Participation (OPP) supports meaningful 

public engagement and participation in 

Commission proceedings. OPP can help 

members of the public, including 

landowners, environmental justice 

communities, Tribal members and 

others, access publicly available 

information and navigate Commission 

processes. For public inquiries and 

assistance with making filings such as 

interventions, comments, or requests for 

rehearing, the public is encouraged to 

contact OPP at (202)502–6595 or OPP@

ferc.gov. 

Dated: September 12, 2024. 

Debbie-Anne A. Reese, 

Acting Secretary. 

[FR Doc. 2024–21296 Filed 9–18–24; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Project No. 1922–052] 

Ketchikan Public Utilities; Notice of 

Intent To Prepare an Environmental 

Assessment and Revising the 

Processing Schedule 

On October 27, 2022, Ketchikan 

Public Utilities (KPU) filed an 

application for a new major license for 

the 7.1-megawatt Beaver Falls 

Hydroelectric Project (Beaver Falls 

Project; FERC No. 1922). The Beaver 

Falls Project is located on Beaver Falls 

Creek in Ketchikan Gateway Borough, 

Alaska. The project currently occupies 

478.4 acres of United States lands 

administered by U.S. Forest Service. 

In accordance with the Commission’s 

regulations, on October 10, 2023, 

Commission staff issued a notice that 

the project was ready for environmental 

analysis (REA Notice). Based on the 

information in the record, including 

comments filed on the REA Notice, staff 

does not anticipate that licensing the 

project would constitute a major federal 

action significantly affecting the quality 

of the human environment. On January 

5, 2024, the Commission issued a notice 

indicating that staff intended to prepare 

a draft and final Environmental 

Assessment (EA). However, upon 

further review, staff intends to prepare 

a single EA on the application to 

relicense the Beaver Falls Project. 

The EA will be issued and circulated 

for review by all interested parties. All 

comments filed on the EA will be 

analyzed by staff and considered in the 

Commission’s final licensing decision. 

The Commission’s Office of Public 

Participation (OPP) supports meaningful 

public engagement and participation in 

Commission proceedings. OPP can help 

members of the public, including 

landowners, environmental justice 

communities, Tribal members and 

others, access publicly available 


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