SECTION 4. DEFINITIONS

The following definitions apply for purposes of this revenue procedure:

July 11, 2005 76 2005–28 I.R.B.

the safe harbor method provided in section 5.01 of this revenue procedure. .02 Automatic change . A Utility within the scope of this revenue procedure that desires to change its treatment of Up-front Payments to the safe harbor method provided in section 5.01 of this revenue procedure for any taxable year ending on or after July 11, 2005, must follow the automatic change in accounting method provisions of Rev. Proc. 2002–9 (or its successor), with the following modifications:

(1) The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply for the first taxable year ending on or after July 11, 2005; and (2) The Utility must prepare and file a Form 3115 in accordance with section 6 of Rev. Proc. 2002–9 and must enter the designated number for the automatic change in method in Line 1a of Form 3115. The designated number for the automatic accounting method change to the safe harbor method provided in section 5.01 of this revenue procedure is “91”.

.03 Change for prior taxable years . A Utility within the scope of this revenue procedure that desires to change its treatment of Up-front Payments to the safe harbor method provided in section 5.01 of this revenue procedure for any open taxable year in a series of consecutive open taxable years ending with the taxable year immediately prior to Utility’s first taxable year ending on or after July 11, 2005, must follow the automatic change in accounting method provisions of Rev. Proc. 2002–9 (or its successor), with the following modifications:

(1) The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply;

(2) The Utility must prepare a Form 3115 in accordance with section 6 of Rev. Proc. 2002–9 and must enter the designated number for the automatic change in method in Line 1a of Form 3115 (the designated number for the automatic accounting method change to the safe harbor method provided in section 5.01 of this revenue procedure is “91”); and

(3) The timely duplicate filing requirements of section 6.02(3) of Rev. Proc. 2002–9 do not apply; in lieu of such requirements, the Utility must:

(a) attach a completed Form 3115 to an amended return for the year of change, and must file, on or before December 31, 2005, that amended return and amended returns

.01 Commercial Operation Date means the date on which the Generator commences commercial operation of its facility after trial operation of such facility has been completed and confirmed in writing as prescribed by FERC.

.02 Generator means the owner or operator of an electric generation facility.

.03 Interconnection Agreement means the agreement entered into between a Utility and a Generator for the purpose of interconnecting the Generator with the Utility’s Transmission System.

.04 Network Upgrades mean the additions, modifications, and upgrades to the Transmission System required at or beyond the point at which the Generator interconnects to the Transmission System to accommodate the interconnection of the Generator to the Transmission System.

.05 Transmission System means the facilities owned, controlled, or operated by a Utility that are used to provide electric transmission service, including any additions, modifications, or upgrades made to such facilities.

.06 Up-front Payment means the amount or amounts paid by a Generator to a Utility pursuant to their Interconnection Agreement for costs with respect to Network Upgrades to the Utility’s Transmission System.

.07 Utility means an electrical transmission or distribution system owner or operator that is subject to the regulatory authority of FERC as well as a State public utility commission or other appropriate State agency.