Tax treatment

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The Arkansas state income tax treatment of the following events will conform to the federal income tax treatment of such events:

  1. (1) The electric utility's receipt of a financing order that creates storm recovery property for the benefit of the electric utility;

  2. (2) The electric utility's receipt of cash or other valuable consideration in exchange for its transfer of the storm recovery property to an affiliate which is wholly owned, directly or indirectly, by the electric utility; and

  3. (3) The electric utility's receipt of cash or other valuable consideration in exchange for storm recovery bonds issued by the financing party.


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