INSTRUCTIONS FOR PUBLIC UTILITIES REQUESTING NORMALIZATION RULINGS ARE PROVIDED

Rev. Proc. 85-57

SECTION 1. PURPOSE

The purpose of this revenue procedure is to amplify section 9 of Rev. Proc. 85-1, 1985-1 I.R.B. 21 (Instructions to Taxpayer), to assure receipt of complete and adequate information and expedite the processing of request for rulings from public utility taxpayers on the normalization requirements provided by sections 46(f), 167(1), and 168(e)(3) of the Internal Revenue Code.

SEC. 2 BACKGROUND

Section 9 of Rev. Proc. 85-1 provides instructions to taxpayers requesting rulings from the Internal Revenue Service. Although the request for ruling on normalization matters is submitted by the public utility taxpayer, the proposed change in frequently initiated by the regulatory commission that has ratemaking authority for the taxpayer. Input by the regulatory commission will aid in making the ruling responsive to the needs of both the taxpayer and the regulatory commission.

SEC. 3 SCOPE AND OBJECTIVE

A ruling request that involves a question of whether a rate order, proposed or issued by a regulatory agency, will meet the normalization requirements of sections 46(f), 167(1), and 168(e)(3) of the Code, ordinarily will not be considered unless the taxpayer states in the request for ruling whether:

(1) the regulatory authority responsible for establishing or approving the taxpayer's rates has reviewed the request and believes that the request is adequate and complete, and

(2) the taxpayer will permit the regulatory authority to participate in any National Office conference concerning the request.

SEC. 4 EFFECT ON OTHER DOCUMENTS

Rev. Proc. 85-1 is amplified.

SEC. 5 EFFECTIVE DATE

This revenue procedure will apply to all ruling requests submitted to the National Office after December 18, 1985.