Opinion ID: 388140
Heading Depth: 2
Heading Rank: 2

Heading: Deferred Tax Account.

Text: 18 IPS next argues the Commission's treatment of federal taxes resulted in overestimation of the rate base. 8 IPS argues that the Commission neglected to deduct the deferred tax account from the net investment base prior to calculating the rate to be assessed, contrary to the policy expressed in Ex Parte No. 338, 358 I.C.C. 844, aff'd as modified, 359 I.C.C. 270 (1978). The Commission admitted its error in I.&S. No. 9199 (served October 1, 1980) (Once the decision to normalize taxes is made, however, deferred taxes should be deducted from the net investment base prior to the calculation of any overall cost of capital. Slip op. at Appendix A, 10). Accord San Antonio, 631 F.2d at 847. We remand to the Commission for reconsideration of this treatment of the deferred tax account. 19