18:37 Jun 2, 2005 

The liability method of tax allocation charges the customer with a tax expense that is based upon a tax calculation that uses the Board approved expenses. If the tax payable or flow-through methodology is employed in a year where the tax deductible expenses exceed the annual revenue requirement expenses, related to assets and depreciation, (which is the case in the two test years) then the current year customer will benefit from the tax shielding at the expense of a future customer.