the accounting by a Nonutility Generator ("NUG") for certain types of long-term power sales contracts. The issues discussed in Issue 91-6 were how to recognize revenue for long-term power sales contracts that contain scheduled price changes and whether a different method of accounting is required if the power sales contract provides that total revenues for the term of the contract are determined or limited by a separate, formulabased pricing arrangement. In discussing Issue 91-6, the Task Force did not explicitly address a power sales contract that had both fixed and variable-based pricing (based on market prices, actual avoided costs, or formula-based pricing arrangements) terms, where the variable-based pricing does not determine or limit the total billings under the contract. This Issue is limited to variable price arrangements in which the rate is at least equal to expected costs. This Issue also only addresses the revenue recognition associated with the energy component of these long-term power sales contracts. The issue is how revenue should be recognized on a long-term power sales contract that contains separate, specified terms for (1) a fixed or scheduled price per kilowatt hour (kWh) for one period of time and (2) a variable price per kWh (based on market prices
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