Novinium Process Secures RUS Approval for Capital Treatment
Novinium Process Secures RUS Approval For Capital Treatment
Seattle, April 8, 2009 – Novinium, Inc., the global technology leader in cable life extension technology for the utility market, has secured approval from the Rural Utilities Service (RUS) for its advanced cable rejuvenation process to be capitalized. The approval comes in the form of a Letter Order from Kenneth M. Ackerman, Assistant Administrator Program Accounting and Regulatory Analysis in a letter dated April 3, 2009. The letter is available at:
In the order, Mr. Ackerman affirmed that based upon the actions of the FERC, the Rural Utilities Service now authorizes the capitalization of the cost associated with the injection of Novinium’s Perficio™ and Ultrinium™ fluids into underground cable. Mr. Ackerman cited the FERC’s approval was based upon information that these Novinium products extend the useful life of URD cables by at least 20 years, and offer a full money back warranty for 20 years for the Perficio fluid and a 40-year full money back warranty for the Ultrinium fluid. These Novinium products also increase the voltage capacity of URD cable, enhance the reliability of the URD cable, and improve public safety. Furthermore, these Novinium products include advancements to the silicone fluid that has been in use for the last 20 years.
“While rural electric cooperatives 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.”