The Internal Revenue Service (IRS) has issued a favorable ruling allowing Idaho Power Co. (IP) to accelerate amortization of accumulated deferred investment tax credits (ADITC). [Idaho Power had asked the Idaho Public Utilities Commission for permission to defer and amortize costs associated with its internal restructuring.] The ruling enables the utility to accelerate amortization of ADITC when its consolidated year-end return on common equity falls below 11.5 percent. If actual earnings in one year exceed an 11.75-percent return on year-end common equity, the company will refund 50 percent of the excess through its annual power cost-adjustment clause. The total amount of ADITC that may be accelerated is limited to $30 million over the 1995-99 period.40
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