ML19224C955
| ML19224C955 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 06/19/1979 |
| From: | Liberman J BERLACK, ISRAELS & LIBERMAN |
| To: | Evans D NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| Shared Package | |
| ML19224C957 | List: |
| References | |
| TASK-TF, TASK-TMR NUDOCS 7907100328 | |
| Download: ML19224C955 (9) | |
Text
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- fr. David Evand NRC-TMI Special Inquiry United States Nuclear Regulatory Commission Washington, D. C.
20555
Dear Mr. Evans:
In accordance with your request in our telephone conversation today, I enclose the following:
1.
A copy of certain prepared testimony and attachments of Mr. Herman M.
Dieckamp, GPU President, submitted in the recent hearings of the Pennsylvania Public Utility Commission relating to Metropolitan Edison Company and Pennsylvania Electric Company; and 2.
Internal Revenue Service Revenue Rulin9s76-256 and 76-428, appearing at pages 46-48 of the Internal Revenue Cumulative Bulletin 1976-2; although I had only mentioned Revenue Ruling 76-428, I thought you might also wish Revenue Ruling 76-256 in light of the cross-reference to it.
In our discussion, I mentioned that the FERC System of Accounts establishes a general guideline, for accounting purposes, for the period during which a generating unit is to be included in Account 107 - construction work in progress
("CUIP") - and to accrue allowance for funds used during construction ("AFUDC") and when it is to be transferred to Account 101 - Electric Plant in Service and to cease the accrual of AFUDC - but I did not have the Systam of Accounts at my desk at that time.
Such guideline appears in (1) the momes2E 259 210
Mr. David Evans Page 2 June 19, 1979 reference in the Note to Electric Plant Instruction 3(17) of the Systen of Accounts which refers to the treatment as
" Electric Plant in Service" of a part of a project which "is P aced in operation or is completed and ready for service",
l and (2) in Electric Plant Instruction 9D which provides:
"D.
The equipment accounts shall include the necessary costs of testing or running a plant or parts thereof during an experimental or tert period prior to such plant becoming ready for or placed in service.
The utility shall furnish the Commission with full particulars of and justification for any test or experimental run extending beyond a period of 120 days for nuclear plant and a period of 90 days for all other plant.
Such particulars shall include a detailed operational and do'wntime log showing days of production, gross kilowatts generated by hourly increments, types, ano periods of out-ages by hours with explanation thereof, begin-ning with the first date the equipment was either tested or synchronized on the line to the end of the test period."
Since these references in the System of Accounts are somewhat eliptical, you may be interested in the en-closed dfscussion of this subject appearing in pages 83-86 of Pomerantz and Suelflow, Allewance for Funds Used During Construction, Michigan State University Public Utilities Studies (1975).
y truly yours, t
pu b I
rLw -
ames B.
Liberman D
JBL/ac Encom!res 259 219