Sec. 32.1437  Deferred tax regulatory asset.

    (a) This account shall include amounts of probable future revenue 
for the recovery of future increases in taxes payable. As reversals 
occur, amounts recorded in this account shall be reduced with a credit 
entry and a debit entry to Account 4341, Net Deferred Tax Liability 
Adjustments.
    (b) This account shall also be adjusted for the impact of 
prospective tax rate changes on the deferred tax liability for those 
temporary differences underlying its existing balance. If the cumulative 
effect of such adjustments reduce the account to a net credit balance, 
such balance shall be reclassified to Account .
[59 4361 FR 9418 , Feb. 28, 1994]