ITC » Topics » Regulation

These excerpts taken from the ITC 10-K filed Feb 26, 2009.
Regulation
 
Nearly all of our Regulated Operating Subsidiaries’ business is subject to regulation by the FERC. As a result, we apply accounting principles in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”). Use of SFAS 71 results in differences in the application of GAAP between regulated and non-regulated businesses. SFAS 71 requires the recording of regulatory assets and liabilities for certain transactions that would have been treated as expense or revenue in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in discontinuing the application of SFAS 71. If we were to discontinue the application of SFAS 71 on our Regulated Operating Subsidiaries’ operations, we may be required to record losses of $224.5 million relating to the regulatory assets at December 31, 2008 that are described in Note 6 to the consolidated financial statements. We also may be required to record losses of $52.4 million relating to intangible assets at December 31, 2008 that are described in Note 4 to the consolidated financial statements. Additionally, we may be required to record gains of $196.9 million relating to regulatory liabilities at December 31, 2008, primarily for asset removal costs that have been accrued in advance of incurring these costs.
 
We believe that currently available facts support the continued applicability of SFAS 71 and that all regulatory assets and liabilities are recoverable or refundable under our current rate environment.
 
Regulation
 
Nearly all of our Regulated Operating Subsidiaries’ business is subject to regulation by the FERC. As a result, we apply accounting principles in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”). Use of SFAS 71 results in differences in the application of GAAP between regulated and non-regulated businesses. SFAS 71 requires the recording of regulatory assets and liabilities for certain transactions that would have been treated as expense or revenue in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in discontinuing the application of SFAS 71. If we were to discontinue the application of SFAS 71 on our Regulated Operating Subsidiaries’ operations, we may be required to record losses of $224.5 million relating to the regulatory assets at December 31, 2008 that are described in Note 6 to the consolidated financial statements. We also may be required to record losses of $52.4 million relating to intangible assets at December 31, 2008 that are described in Note 4 to the consolidated financial statements. Additionally, we may be required to record gains of $196.9 million relating to regulatory liabilities at December 31, 2008, primarily for asset removal costs that have been accrued in advance of incurring these costs.
 
We believe that currently available facts support the continued applicability of SFAS 71 and that all regulatory assets and liabilities are recoverable or refundable under our current rate environment.
 
Regulation
 
Nearly all of our Regulated Operating Subsidiaries’ business is subject to regulation by the FERC. As a result, we apply accounting principles in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”). Use of SFAS 71 results in differences in the application of GAAP between regulated and non-regulated businesses. SFAS 71 requires the recording of regulatory assets and liabilities for certain transactions that would have been treated as expense or revenue in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in discontinuing the application of SFAS 71. If we were to discontinue the application of SFAS 71 on our Regulated Operating Subsidiaries’ operations, we may be required to record losses of $224.5 million relating to the regulatory assets at December 31, 2008 that are described in Note 6 to the consolidated financial statements. We also may be required to record losses of $52.4 million relating to intangible assets at December 31, 2008 that are described in Note 4 to the consolidated financial statements. Additionally, we may be required to record gains of $196.9 million relating to regulatory liabilities at December 31, 2008, primarily for asset removal costs that have been accrued in advance of incurring these costs.
 
We believe that currently available facts support the continued applicability of SFAS 71 and that all regulatory assets and liabilities are recoverable or refundable under our current rate environment.
 
Regulation


 



Nearly all of our Regulated Operating Subsidiaries’
business is subject to regulation by the FERC. As a result, we
apply accounting principles in accordance with Statement of
Financial Accounting Standards No. 71, Accounting for
the Effects of Certain Types of Regulation
(“SFAS 71”). Use of SFAS 71 results in
differences in the application of GAAP between regulated and
non-regulated businesses. SFAS 71 requires the recording of
regulatory assets and liabilities for certain transactions that
would have been treated as expense or revenue in non-regulated
businesses. Future regulatory changes or changes in the
competitive environment could result in discontinuing the
application of SFAS 71. If we were to discontinue the
application of SFAS 71 on our Regulated Operating
Subsidiaries’ operations, we may be required to record
losses of $224.5 million relating to the regulatory assets
at December 31, 2008 that are described in Note 6 to
the consolidated financial statements. We also may be required
to record losses of $52.4 million relating to intangible
assets at December 31, 2008 that are described in
Note 4 to the consolidated financial statements.
Additionally, we may be required to record gains of
$196.9 million relating to regulatory liabilities at
December 31, 2008, primarily for asset removal costs that
have been accrued in advance of incurring these costs.


 



We believe that currently available facts support the continued
applicability of SFAS 71 and that all regulatory assets and
liabilities are recoverable or refundable under our current rate
environment.


 




Regulation


 



Nearly all of our Regulated Operating Subsidiaries’
business is subject to regulation by the FERC. As a result, we
apply accounting principles in accordance with Statement of
Financial Accounting Standards No. 71, Accounting for
the Effects of Certain Types of Regulation
(“SFAS 71”). Use of SFAS 71 results in
differences in the application of GAAP between regulated and
non-regulated businesses. SFAS 71 requires the recording of
regulatory assets and liabilities for certain transactions that
would have been treated as expense or revenue in non-regulated
businesses. Future regulatory changes or changes in the
competitive environment could result in discontinuing the
application of SFAS 71. If we were to discontinue the
application of SFAS 71 on our Regulated Operating
Subsidiaries’ operations, we may be required to record
losses of $224.5 million relating to the regulatory assets
at December 31, 2008 that are described in Note 6 to
the consolidated financial statements. We also may be required
to record losses of $52.4 million relating to intangible
assets at December 31, 2008 that are described in
Note 4 to the consolidated financial statements.
Additionally, we may be required to record gains of
$196.9 million relating to regulatory liabilities at
December 31, 2008, primarily for asset removal costs that
have been accrued in advance of incurring these costs.


 



We believe that currently available facts support the continued
applicability of SFAS 71 and that all regulatory assets and
liabilities are recoverable or refundable under our current rate
environment.


 




Regulation


 



Nearly all of our Regulated Operating Subsidiaries’
business is subject to regulation by the FERC. As a result, we
apply accounting principles in accordance with Statement of
Financial Accounting Standards No. 71, Accounting for
the Effects of Certain Types of Regulation
(“SFAS 71”). Use of SFAS 71 results in
differences in the application of GAAP between regulated and
non-regulated businesses. SFAS 71 requires the recording of
regulatory assets and liabilities for certain transactions that
would have been treated as expense or revenue in non-regulated
businesses. Future regulatory changes or changes in the
competitive environment could result in discontinuing the
application of SFAS 71. If we were to discontinue the
application of SFAS 71 on our Regulated Operating
Subsidiaries’ operations, we may be required to record
losses of $224.5 million relating to the regulatory assets
at December 31, 2008 that are described in Note 6 to
the consolidated financial statements. We also may be required
to record losses of $52.4 million relating to intangible
assets at December 31, 2008 that are described in
Note 4 to the consolidated financial statements.
Additionally, we may be required to record gains of
$196.9 million relating to regulatory liabilities at
December 31, 2008, primarily for asset removal costs that
have been accrued in advance of incurring these costs.


 



We believe that currently available facts support the continued
applicability of SFAS 71 and that all regulatory assets and
liabilities are recoverable or refundable under our current rate
environment.


 




These excerpts taken from the ITC 10-K filed Feb 29, 2008.
Regulation
 
Nearly all of our Regulated Operating Subsidiaries’ business is subject to regulation by the FERC. As a result, we apply accounting principles in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”). Use of SFAS 71 results in differences in the application of GAAP between regulated and non-regulated businesses. SFAS 71 requires the recording of regulatory assets and liabilities for certain transactions that would have been treated as expense or revenue in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in discontinuing the application of SFAS 71. If we were to discontinue the application of SFAS 71 on our Regulated Operating Subsidiaries’ operations, we may be required to record losses of $136.0 million relating to the regulatory assets at December 31, 2007 that are described in Note 7 to the consolidated financial statements. We also may be required to record losses of $55.4 million relating to intangible assets at December 31, 2007 that are described in Note 6 to the consolidated financial statements. Additionally, we may be required to record gains of $189.7 million relating to regulatory liabilities at December 31, 2007, primarily for asset removal costs that have been accrued in advance of incurring these costs.
 
We believe that currently available facts support the continued applicability of SFAS 71 and that all regulatory assets and liabilities are recoverable or refundable under our current rate environment.
 
Regulation


 



Nearly all of our Regulated Operating Subsidiaries’
business is subject to regulation by the FERC. As a result, we
apply accounting principles in accordance with Statement of
Financial Accounting Standards No. 71, Accounting for
the Effects of Certain Types of Regulation
(“SFAS 71”). Use of SFAS 71 results in
differences in the application of GAAP between regulated and
non-regulated businesses. SFAS 71 requires the recording of
regulatory assets and liabilities for certain transactions that
would have been treated as expense or revenue in non-regulated
businesses. Future regulatory changes or changes in the
competitive environment could result in discontinuing the
application of SFAS 71. If we were to discontinue the
application of SFAS 71 on our Regulated Operating
Subsidiaries’ operations, we may be required to record
losses of $136.0 million relating to the regulatory assets
at December 31, 2007 that are described in Note 7 to
the consolidated financial statements. We also may be required
to record losses of $55.4 million relating to intangible
assets at December 31, 2007 that are described in
Note 6 to the consolidated financial statements.
Additionally, we may be required to record gains of
$189.7 million relating to regulatory liabilities at
December 31, 2007, primarily for asset removal costs that
have been accrued in advance of incurring these costs.


 



We believe that currently available facts support the continued
applicability of SFAS 71 and that all regulatory assets and
liabilities are recoverable or refundable under our current rate
environment.


 




This excerpt taken from the ITC 10-K filed Mar 8, 2007.
Regulation
 
Nearly all of ITCTransmission’s and METC’s business is subject to regulation by the FERC. As a result, we believe it is appropriate to apply accounting principles in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”). Use of SFAS 71 results in differences in the application of GAAP between regulated and non-regulated businesses. SFAS 71 requires the recording of regulatory assets and liabilities for certain transactions that would have been treated as expense or revenue in non-regulated businesses. Future regulatory changes or changes in the competitive environment could result in discontinuing the application of SFAS 71. If we were to discontinue the application of SFAS 71 on ITCTransmission’s and METC’s operations, we may be required to record losses of $91.4 million relating to the regulatory asset-acquisition adjustment, $58.4 million of intangible assets associated with the METC Intangible ADIT Deferral and the METC Intangible Regulatory Deferral, $15.4 million relating for the METC Regulatory Deferral, $4.2 million of other regulatory assets relating to deferred losses on debt extinguishment, $4.5 million of allowance for equity funds used during construction and $2.1 million of pension and postretirement expenses at December 31, 2006. Additionally, we may be required to record gains of $138.7 million relating to asset removal costs recorded as regulatory liabilities at December 31, 2006, that have been accrued in advance of incurring these costs.
 
We believe that currently available facts support the continued applicability of SFAS 71 and that all regulatory assets and liabilities are recoverable or refundable under our current rate environment.
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki