Ratemaking Treatment
Taking into account the book value of $105,128, and state and federal taxes of $4,964, the after-tax gain is about $44,828. PG&E proposes to record the after- tax proceeds in a memorandum account, and defer consideration of the ratemaking treatment associated with the sale to a separate proceeding to be initiated by an application it expects to file on September 1, 2000.1
1 In a letter dated May 1, 2000, PG&E states that the September 1, 2000 application will, at a minimum, address the ratemaking treatment for six deferred Section 851 sales previously authorized by the Commission, and may also address the ratemaking treatment to be applied generally to all sales of PG&E non-generation-related assets.
