The Cal. PUC adopted rules for allocating capital gains when tele...
The Cal. PUC adopted rules for allocating capital gains when telecom and other utilities sell land, buildings and other property no longer needed for utility services. Under the adopted rules, ratepayers will get all capital gains from depreciable property…
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such as buildings. Gains from sale of non-depreciable assets like land will be split 50-50 between company and ratepayers. The allocation rules (Case R-04-09- 003) will apply to all telephone providers except for AT&T, Verizon, SureWest and Frontier. They were excluded because allocation of capital gains is one of the issues in the PUC’s pending case to develop a uniform regulatory framework for these 4 carriers. The rules will apply on transactions involving a sale price under $50 million and a gain of under $10 million, which the PUC said covers the vast majority of utility asset sales. It won’t apply to routine retirement of minor obsolete utility assets like poles and vehicles.