What are the consequences of the California Energy Commission's failure to consider alternative ways of calculating federal income tax expense?

For failure to consider lawful alternatives in calculation of federal income tax expense, the decision of the commission must be annulled. (Cf. Northern California Power Agency v. Public Util. Com., 5 Cal.3d 370, 380, 96 Cal.Rptr. 18, 486 P.2d 1218.) Upon further consideration the commission should consider whether to adhere to the 1968 method of determining federal income tax expense and whether to adopt the accelerated depreciation and normalization method adopted by the decision before us. Because these methods involve fictitious allowances for tax expense and because they provide results which in the light of current federal income tax law are either harsh on the utility or the ratepayers, the commission may also consider alternative approaches which strike a balance between these two extremes.