Novinium Process Secures FERC Approval for Capital Treatment
Seattle, September 5, 2008 – Novinium, Inc., the global technology leader in cable life extension technology for the utility market, has secured approval from the Federal Energy Regulatory Commission (FERC) for its advanced cable rejuvenation process to be capitalized. The approval comes in the form of a Letter Order from Scott P. Molony, Chief Accountant of FERC in Docket No. AC08-143-000. The Order is available at www.novinium.com/pdf/AC08-143%20order.pdf.
In the order, Mr. Molony affirmed that the improved injection process provided by Novinium qualified under the Commission’s Uniform System of Accounts as “a minor item of property that did not previously exist provided that a substantial addition results.” The 20 to 40 years of life extension provided by the Novinium technology is clearly a substantial addition to an asset with an original book life of about 30 years.
“While utilities have been capitalizing the Novinium process since its introduction in early 2006,” commented Glen Bertini, Novinium’s CEO, “this ruling affirms those previous accounting treatments, provides comfort to our future customers, and most importantly extends the favorable accounting treatment to new classes of unreliable cables excluded from the previous ruling.”