(1) In support of federal
income taxes, the utility shall submit a reconciliation of the book net income
with taxable net income as reported to the federal Internal Revenue Service for
the most recent year for which a tax return was filed. An explanation of all
items in the reconciliation shall be submitted. In the event the tax allowances
claimed give effect to omission of items appearing in the reconciliations for
the most recent tax return for inclusion of items not appearing therein, the
reasons for such omissions or inclusions shall be submitted.