information required by subsection (d)(1) to the commission as
an attachment to its application for a certificate of public
convenience filed pursuant to section 1102.
(f) Postacquisition projects.--The following apply:
(1) An acquiring public utility's postacquisition
improvements that are not included in a distribution
improvement charge shall accrue allowance for funds used
during construction after the date the cost was incurred
until the asset has been in service for a period of four
years or until the asset is included in the acquiring public
utility's next base rate case, whichever is earlier.
(2) Depreciation on an acquiring public utility's
postacquisition improvements that have not been included in
the calculation of a distribution system improvement charge
shall be deferred for book and ratemaking purposes.
(g) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Acquiring public utility." A water or wastewater public
utility subject to regulation under this title that is acquiring
a selling utility as the result of a voluntary arm's-length
transaction between the buyer and seller.
"Allowance of funds used during construction." An accounting
practice that recognizes the capital costs, including debt and
equity funds that are used to finance the construction costs of
an improvement to a selling utility's assets by an acquiring
public utility.
"Entity." A person, partnership or corporation that is
acquiring a selling utility and has filed or whose affiliate has
filed an application with the commission seeking public utility
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