West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13 - Business And Occupational Tax › Section 11-13-2o - Business of Generating, Producing or Selling Electricity on and After June 1, 1995; Definitions; Rate of Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
2o.1. Definitions. - As used in this Section:
2o.1.1. "Average four-year generation" is the
				amount computed by dividing by four (4) the sum of a generating unit's net
				generation, expressed in kilowatt hours, for calendar years 1991, 1992, 1993,
				and 1994. For any generating unit which was newly installed and placed into
				commercial operation after January 1, 1991 and prior to the effective date of
				this Section, June 1, 1995, "average four-year generation" is computed by
				dividing the unit's net generation for the period beginning with the month in
				which the unit was placed into commercial operation and ending with the month
				preceding the effective date of this Section by the number of months in the
				period and multiplying the resulting amount by twelve (12) with the result
				being a representative twelve-month average of the unit's net generation while
				in an operational status;
2o.1.2.
				"Capacity factor" means a fraction, the numerator of which is average four-year
				generation and the denominator of which is the maximum possible annual
				generation;
2o.1.3. "Generating
				unit" means a mechanical apparatus or structure which through the operation of
				its component parts is capable of generating or producing electricity and is
				regularly used for this purpose;
2o.1.4. "Inactive reserve" means the removal
				of a generating unit from commercial service for a period of not less than
				twelve (12) consecutive months as a result of lack of need for generation from
				the generating unit or as a result of the requirements of State or federal law
				or the removal of a generating unit from commercial service for any period as a
				result of any physical exigency which is beyond the reasonable control of the
				taxpayer;
2o.1.5. "Maximum possible
				annual generation" means the product, expressed in kilowatt hours, of official
				capability times 8760 hours [i.e., the number of hours in a year];
2o.1.6. "Official capability" means the
				nameplate capacity rating of a generating unit expressed in
				kilowatts;
2o.1.7. "Peaking unit"
				means a generating unit designed for the limited purpose of meeting peak
				demands for electricity or filling emergency electricity
				requirements;
2o.1.8. "Retired from
				service" or "retiring from service" means the removal of a generating unit from
				commercial service for a period of at least twelve (12) consecutive months with
				the intent that the unit will not thereafter be returned to active
				service;
2o.1.9. "Taxable
				generating capacity" means the product, expressed in kilowatts, of the capacity
				factor times the official capability of a generating unit, [i.e., average
				four-year generation in kilowatt hours ) 8760 hours] subject to the
				modifications set forth in Sections 2o.3.2 [new generating units] and 2o.3.3
				[peaking units] of this rule. Taxable generating capacity is the measure of tax
				under Section 2o of this rule. In no event shall taxable generating capacity
				for any unit first placed in service prior to June 1, 1995 be recomputed or
				adjusted based upon post June 1, 1995 changes in net generation or consumption
				except insofar as the unit is retired or placed in inactive reserve;
2o.1.10. "Net generation" for a period means
				the "kilowatt hours of net generation available for sale that was generated or
				produced in this State" by the generating unit during that period less the
				following adjustments;
2o.1.10.1. Twenty-one
				twenty-sixths (21/26 or .8077) of the kilowatt hours of electricity generated
				at the generating unit and sold during that period to a plant location of a
				customer engaged in manufacturing activity if the contract demand at that plant
				location exceeds 200,000 kilowatts per hour in a year or where the usage at
				that plant location exceeds 200,000 kilowatts per hour in a year;
2o.1.10.2. Twenty-one twenty-sixths (21/26 or
				.8077) of the kilowatt hours of electricity produced or generated at the
				generating unit during that period by any person producing electric power and
				an alternative form of energy at a facility located in this State substantially
				from gob or other mine refuse; and
2o.1.10.3. The total kilowatt hours of
				electricity generated at the generating unit exempted from tax during that
				period by Section 2n.2 of this rule.
2o.1.10.3.1. Taxpayers paying under Section
				2o of this rule who received any of the exemptions described in Section 2n.2 of
				this rule in calendar years 1991 through 1994 receive the exemption under
				Section 2o of this rule automatically when they calculate their "average
				four-year generation" values for calendar years 1991 through 1994. Therefore,
				no additional exemption is allowable for kilowatt hours generated in calendar
				years after 1994.
2o.1.10.4. "Net generation" for a period
				shall not be reduced by company use, line loss or any other use or loss or
				deduction, except station use, as defined in Section 1a of this rule;
				and
2o.1.11. "Twelve
				consecutive months" means a period beginning with the day the generating unit
				in question is removed from commercial service and ending on the day which is
				364 days thereafter.