You may report the CIAC amount as excludable property on the Market Value Report if both are true:
- The money you paid or property you gave to someone else is for property you do not use as part of your operating property.
- The property is included in your system plant.
You cannot exclude the CIAC if it was not first included in your system plant or if it is money you received from someone else for property you use as part of your operating property.
Example 1:
A person is building a rural home on a site that does not currently have electric service.
The person pays an electric distribution company to build a distribution line to their home.
The payment the person made to the electric company is a contribution in aid of construction. The electric distribution company owns and operates the distribution line. This amount is not excludable because the person does not own the distribution line and does not maintain it.
Example 2:
An electric transmission company wants to receive power from a newly constructed independent power producer.
The independent power producer will provide electricity to the electric transmission company’s substation if the electric transmission company pays for the independent power producer’s transmission line from the facility to the substation.
The electric transmission company pays for the transmission line and the independent power producer owns and maintains the transmission line.
The transmission line is the operating property of the independent power producer. The independent power producer cannot deduct the transmission line as excludable property on their Market Value Report. The electric transmission line company does not report the asset in their plant in service amounts.
Reporting CIAC as Excludable Property
Report excludable CIAC on line 76 in Section 8 of the Market Value Report for Other Depreciable Excludable Property. Only report CIAC that are included in your system plant.
