Sourcing Sales of Electricity Wholesale Competition Retail - - PowerPoint PPT Presentation

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Sourcing Sales of Electricity Wholesale Competition Retail - - PowerPoint PPT Presentation

May 20, 2023 151 likes •275 views

Sourcing Sales of Electricity Wholesale Competition Retail Competition State Studies and Regulations Tangible Personal Property vs. Service Recent Cases Next Steps Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 1

Sourcing Sales of Electricity

  • Wholesale Competition
  • Retail Competition
  • State Studies and

Regulations

  • Tangible Personal

Property vs. Service

  • Recent Cases
  • Next Steps

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 2

Sourcing Sales of Electricity

  • UDITPA Was not

Intended to Apply to Regulated Utilities

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 3

Net Generation by Sector

1000 2000 3000 4000 5000 2012 2001 1990

million megawhatthours Electric Utilities Ind Power Producers Other

Source: Energy Information Administration, Electric Power Annual, Various Years

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SLIDE 4

Regional Transmission Organizations

Source: Energy Information Administration

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SLIDE 5

Retail Competition

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SLIDE 6

State Studies

  • NESTOA
  • Arkansas
  • Minnesota
  • Oklahoma
  • Pennsylvania
  • Washington
  • Federation of Tax

Administrators

  • National Conference of

State Legislators (NCSL)

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 7

State Regulations

  • Massachusetts

Special sales factor rules for electric industry taxpayers.

  • Oregon

Sales is sourced to Oregon if the delivery is to Oregon.

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 8

What is Electricity ?

For Income Tax Purposes, States Definite Electricity As Tangible Personal Property (31) Service (6) Intangible Property (4) Other (2)

Source: Multistate Corporate Tax Guide (Healy and Schadewald), Sales of Electricity, CCH, Wolters Kluwer.

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 9

What is Electricity ?

Recent Cases

  • Pacificorp (2002)
  • Powerex (2012)
  • EUA Ocean (2006)

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 10

Next Steps

  • Solicit Industry

Involvement

  • Educational Phase
  • Survey the States
  • Review NESTOA

Proposal and State Regulations

  • Review sourcing rules for

natural gas

Image courtesy of xedos4 / FreeDigitalPhotos.net.

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SLIDE 11

Sourcing Sales of Electricity

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Images courtesy of xedos4 / FreeDigitalPhotos.net. Master isolated image / FreeDigitalPhotos.net.