SECTION 6. CHANGE IN METHOD

OF ACCOUNTING

.01 In general . A change in a Utility’s treatment of an Up-Front Payment, including a change to the safe harbor method provided in section 5.01 of this revenue procedure, is a change in method of accounting to which the provisions of §§ 446 and 481 and the regulations thereunder apply. For Up-front Payments received pursuant to Interconnection Agreements that satisfy the conditions of section 5.02 or 5.03 of this revenue procedure, whichever is applicable, a Utility must follow section 6.02 or 6.03 of this revenue procedure to change its treatment of the Up-front Payments to

2005–28 I.R.B. 77 July 11, 2005

for all subsequent affected taxable years, if any; and

(b) file a copy of the Form 3115 with the IRS National Office no later than when the original Form 3115 is filed with the amended return.

In accordance with § 1.446–1(e)(3)(ii) and Rev. Rul. 90–38, a Utility complying with the provisions of this section 6.03 is hereby granted consent to make a retroactive change in method of accounting to the safe harbor method provided in section 5.01 of this revenue procedure.