Page:United States Statutes at Large Volume 118.djvu/1501

 118 STAT. 1471 PUBLIC LAW 108–357—OCT. 22, 2004 members and which is directly connected to dis tribution facilities owned by such company or any of its members (other than income received or accrued directly or indirectly from a member), ‘‘(iv) from any nuclear decommissioning trans action, or ‘‘(v) from any asset exchange or conversion trans action. Clauses (ii) through (v) shall not apply to taxable years beginning after December 31, 2006.’’. (2) DEFINITIONS AND SPECIAL RULES.—Paragraph (12) of section 501(c) is amended by adding at the end the following new subparagraphs: ‘‘(E) For purposes of subparagraph (C)(ii), the term ‘FERC’ means the Federal Energy Regulatory Commission and references to such term shall be treated as including the Public Utility Commission of Texas with respect to any ERCOT utility (as defined in section 212(k)(2)(B) of the Federal Power Act (16 U.S.C. 824k(k)(2)(B))). ‘‘(F) For purposes of subparagraph (C)(iii), the term ‘nuclear decommissioning transaction’ means— ‘‘(i) any transfer into a trust, fund, or instrument established to pay any nuclear decommissioning costs if the transfer is in connection with the transfer of the mutual or cooperative electric company’s interest in a nuclear power plant or nuclear power plant unit, ‘‘(ii) any distribution from any trust, fund, or instrument established to pay any nuclear decommis sioning costs, or ‘‘(iii) any earnings from any trust, fund, or instrument established to pay any nuclear decommis sioning costs. ‘‘(G) For purposes of subparagraph (C)(iv), the term ‘asset exchange or conversion transaction’ means any vol untary exchange or involuntary conversion of any property related to generating, transmitting, distributing, or selling electric energy by a mutual or cooperative electric company, the gain from which qualifies for deferred recognition under section 1031 or 1033, but only if the replacement property acquired by such company pursuant to such section con stitutes property which is used, or to be used, for— ‘‘(i) generating, transmitting, distributing, or selling electric energy, or ‘‘(ii) producing, transmitting, distributing, or selling natural gas.’’. (b) TREATMENT OF INCOME FROM LOAD LOSS TRANSACTIONS, ETC.—Paragraph (12) of section 501(c), as amended by subsection (a)(2), is amended by adding after subparagraph (G) the following new subparagraph: ‘‘(H)(i) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2)(C), income received or accrued from a load loss transaction shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses. ‘‘(ii) For purposes of clause (i), the term ‘load loss transaction’ means any wholesale or retail sale of electric

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