PENNSYLVANIA, April 4 - 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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