ELECTRIC INTERTIES take front and center
The Internal Revenue Service is expected to issue guidance this year on whether utilities must report as income payments from independent generators to connect their power plants to the grid. The generator usually pays the cost of the intertie. The utility insists on owning it. Such payments have not been reported in the past. However, the IRS put the issue under study because of the view of some IRS officials that the payments should be treated as part of the income the utility earns for wheeling electricity for the generator.
Treasury officials say that this item is near the top of the list. Guidance could come out as early as this summer. They are hoping to use the momentum created by work on the Bush energy plan to tackle it quickly.