The economic implications of proposed changes in the accounting for nuclear decommissioning costs

This paper analyzes the accounting effects of the proposed standard Accounting for Obligations Associated with the Retirement of Long-Lived Assets, and considers the economic effects of accounting data in electric utility rate-making. Specifically, the paper models the financial statement with respect to nuclear decommissioning costs and posits several likely scenarios for the economic implications for the affected firms, their electric consumers, and the rate regulators.