Due to troubles at the Kewaunee nuclear power plant, the Wisconsin Public Service Commission has agreed to allow its three utility owners to accelerate depreciation based on a plant retirement in...
Court Upholds FERC's PBOP Ruling
The U.S. Circuit Court of Appeals for the District of Columbia has upheld a Federal Energy Regulatory Commission policy allowing utilities to recover costs to switch from cash to accrualaccounting for post-retirement benefits other than pensions (PBOP) under SFAS 106. It rejected arguments by the town of Norwood, MA, a wholesale customer of New England Power Co., that forecasts of future retiree medical costs were too speculative to warrant recovery, or that imposing costs for the accumulated but unrecognized PBOP "transition obligation" would transfer wealth unfairly between generations of ratepayers. Town of Norwood v. FERC, No. 93-1785, May 12, 1995 (D.C.Cir.Ct.).
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