626
PUBLIC LAW 91-172-DEC. 30, 1969
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76 Stat. 419.
[33 g^^^
"(2) POST-1969 PUBLIC UTILITY PROPERTY.—In the case of an post-1969 public utility property, the term 'reasonable allowanc^ as used in subsection (a) means an allowance computed under—-^ " (A) a subsection (1) method, " (B) a method otherwise allowable under this section if t\\ f!»: • ^i) taxpayer uses a normalization method of accounting, or " (C) the applicable 1968 method, if, with respect to its pre-ffliifc> *' l^'^O public utility property of the same (or similar) kind most recently placed in service, the taxpayer used a flo^. through method of accounting for its July 1969 accountine period. ^ •!' " (3) DEFINITIONS.—For purposes of this subsection— " (A) PUBLIC UTILITY PROPERTY.—The term 'public utility property' means property used predominantly in the trade or business of the furnishing or sale of— ,.,. "(i) electrical energy, water, or sewage disposal , services, "(ii) gas or steam through a local distribution system " (iii) telephone services, or other communication services if furnished or sold by the Communications Satellite Corporation for purposes authorized by the Communications Satellite Act of 1962 (47 U.S.C. 701), or "(iv) transportation of gas or steam by pipeline, if the rates for such furnishing or sale, as the case may be, have been established or approved by a State or political subdivision thereof, by any agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of any State or political subdivision thereof. " (B) P R E - 1970 PUBLIC UTILITY PROPERTY.—The term 'pre1970 public utility property' means property which was public utility property in the hands of any person at any time before January 1, 1970. " (C) POST- 19 G 9 PUBLIC UTILITY PROPERTY.—The term 'post1969 public utility property' means any public utility property which is not pre-1970 public utility property. " (D) APPLICABLE 19G8 METHOD.—The term 'applicable 1968 method' means, with respect to any public utility propert}^— " (i) the method of depreciation used on a return with respect to such property for the latest taxable year for which a return was filed before August 1, 1969, "(ii) if clause (i) does not apply, the method used by the taxpayer on a return for the latest taxable year for which a return was filed before August 1, 1969, with respect to its public utility property of the same kind (or if there is no property of the same kind, property of the most similar kind) most recently placed in service, or "(iii) if neither clause (i) nor (ii) applies, a ' subsection (1) method. I n the case of any section 1250 property to which subsection (j) applies, the term 'applicable 1968 method' means the method permitted under subsection (j) which is most nearly comparable to the applicable 1968 method determined under the preceding sentence. "(E)
APPLICABLE 1968 METHOD I N CERTAIN CASES.—If P®
taxpayer evidenced the intent to use a method of depreciation (other than its applicable 1968 method or a subsection vl
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