IRS Rev. Proc.: Public Utility’s Legislatively Authorized Transactions, Recovering Specified Costs (IRC §61)

The manner in which a public utility may treat certain legislatively authorized transactions entered into by the public utility to recover specified costs through a non-bypassable surcharge to customers within the utility’s historic service area, the IRS set forth. The revenue procedure: (1) addresses a securitization that involves the issuance of debt instruments by a qualifying state financing entity; and (2) modifies Rev. Proc. 2005-62 to expand the definition of “public utility” to include all public utilities, not just investor-owned utilities, and to change the definition of a “qualifying securitization” to allow payments to be provided at least annually. [Rev. ...