When a regulated utility is involved in a business combination, it is generally required to seek approval for the transaction from its regulator. When a regulator approves a business combination involving a regulated utility, it may result in changes to customer rates, recovery mechanisms, or other facets of the regulatory relationship. Although we would expect such situations to be infrequent, reporting entities should consider whether any of the regulator’s requirements stemming from the business combination affect the applicability of regulatory accounting.