[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Rules and Regulations]
[Pages 69294-69388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14994]
[[Page 69293]]
Vol. 88
Thursday,
No. 192
October 5, 2023
Part II
Department of Energy
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Federal Energy Regulatory Commission
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18 CFR Part 101
Accounting and Reporting Treatment of Certain Renewable Energy Assets;
Final Rule
Federal Register / Vol. 88 , No. 192 / Thursday, October 5, 2023 /
Rules and Regulations
[[Page 69294]]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 101
[Docket No. RM21-11-000; Order No. 898]
Accounting and Reporting Treatment of Certain Renewable Energy
Assets
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Final rule.
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SUMMARY: In this final rule, the Federal Energy Regulatory Commission
(Commission or FERC) is amending the Uniform System of Accounts (USofA)
for public utilities and licensees to: create new accounts for wind,
solar, and other renewable generating assets; create a new functional
class for energy storage accounts; codify the accounting treatment of
environmental credits; and create new accounts within existing
functions for computer hardware, software, and communication equipment.
We also amend the relevant FERC forms to accommodate these changes.
DATES: Effective date: This rule is effective January 1, 2025.
FOR FURTHER INFORMATION CONTACT:
Daniel Birkam (Technical Information), Office of Enforcement, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, (202) 502-8035, [email protected]
Todd Kuzniewski (Technical Information), Office of Enforcement, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, (202) 502-6381, [email protected]
Nathan Lobel (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, (202) 502-8456, [email protected]
SUPPLEMENTARY INFORMATION:
Table of Contents
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Paragraph
numbers
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I. Introduction............................................. 1
II. Background.............................................. 4
A. Previous Changes to the USofA........................ 4
B. Locke Lord Petition.................................. 9
C. Notice of Inquiry.................................... 12
D. Notice of Proposed Rulemaking........................ 16
III. Need for Reform........................................ 17
IV. Proposed Reforms........................................ 22
A. Creation of New Subfunctions and Accounts for Non- 22
Hydro Renewables.......................................
1. NOPR................................................. 22
2. Comments............................................. 31
3. Commission Determination............................. 47
B. Creation of Energy Storage Function and Accounts..... 66
1. NOPR................................................. 66
2. Comments............................................. 68
3. Commission Determination............................. 72
C. Accounting Treatment for Renewable Energy Credits.... 76
1. NOPR................................................. 76
2. Comments............................................. 78
3. Commission Determination............................. 87
D. Creation of Computer Hardware, Software, and 99
Communication Equipment Accounts.......................
1. NOPR................................................. 99
2. Comments............................................. 103
3. Commission Determination............................. 110
E. Reporting............................................ 117
1. NOPR................................................. 117
2. Comments............................................. 122
3. Commission Determination............................. 125
F. Other Issues......................................... 129
1. Account Numbering.................................... 129
a. Comments............................................. 129
b. Commission Determination............................. 130
2. Issues Beyond the Scope of This Rulemaking........... 131
a. Comments............................................. 131
b. Commission Determination............................. 132
G. Proposed Compliance Procedures....................... 133
1. Comments............................................. 133
2. Commission Determination............................. 136
V. Information Collection Statement......................... 139
VI. Environmental Analysis.................................. 148
VII. Regulatory Flexibility Act............................. 149
VIII. Document Availability................................. 152
IX. Effective Date and Congressional Notification........... 155
X. Appendix A: New and Amended Form 1/1F/3-Q (Electric).....
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I. Introduction
1. In this final rule, the Commission is revising the Uniform
System of Accounts (USofA) \1\ to account for rapid changes in
technology and resource mix in the U.S. energy industry over recent
decades. The reforms adopted in this final rule will add functional
detail to the USofA in order to provide uniformity, consistency, and
transparency in accounting and reporting for investments in these
technologies, and to assist the Commission in fulfilling its
responsibilities under the Federal Power Act (FPA) to ensure that rates
remain just and reasonable. Therefore, pursuant to the Commission's
authority to prescribe accounting and financial reporting requirements
for jurisdictional companies under section 301 of the FPA,\2\ we modify
part 101 \3\ of the Commission's regulations to: (1) create new
subfunctions and accounts for wind, solar, and other renewable
generating assets; (2) establish a new functional class and accounts
for energy storage assets; (3) create new accounts and codify
accounting treatment for environmental credits; and (4) create new
accounts for computer hardware, software, and communication equipment
within existing functions that do not already include them. The final
rule also makes corresponding changes to the following FERC Forms to
implement the USofA changes: FERC Form Nos. 1, 1-F, 3-Q (electric), and
60.\4\
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\1\ Uniform System of Accounts Prescribed for Public Utilities &
Licensees Subject to the Provisions of the Federal Power Act, 18 CFR
part 101. Unless otherwise indicated, references to the USofA in
this final rule refer to the USofA for public utilities and
licensees.
\2\ 16 U.S.C. 825.
\3\ 18 CFR part 101.
\4\ Edits to the FERC Form No. 60 Annual Report of Centralized
Service Companies, governed under the Public Utility Holding Company
Act, are the result of changes to the FERC forms for public
utilities and licensees from which FERC Form No. 60 summarily
references accounts.
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2. Generally, we are adopting the specific reforms proposed in the
Notice of Proposed Rulemaking (NOPR) (87 FR 59870 (Oct. 3, 2022)), but
with certain revisions based on the record in this proceeding. In
particular, certain proposals in the NOPR have been altered in this
final rule to effectuate the Commission's intent, better address the
needs of different stakeholders, and facilitate solutions to potential
technical challenges.
3. As discussed further below in section IV.G (Proposed Compliance
Procedures), each utility must implement the requirements of this final
rule by January 1, 2025.
II. Background
A. Previous Changes to the USofA
4. The USofA was created by the Federal Power Commission to
facilitate the Commission's ratemaking responsibilities and uniformly
capture financial and operational information for, first, traditional
public utilities, and then natural gas pipelines.\5\ The USofA has been
modified over time to account for changing technological, legal, and
market conditions.
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\5\ 18 CFR part 101.
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5. For example, in Order No. 552, the Commission revised the USofA
to account for sulfur dioxide emissions allowances under the 1990 Clean
Air Act Amendments.\6\ In that order, the Commission created new
inventory Accounts 158.1 (Allowance Inventory) and 158.2 (Allowances
Withheld) and new expense Account 509 (Allowances) to accommodate the
new sulfur dioxide emissions allowances. The Commission noted that some
commenters sought to classify allowances in existing accounts to
facilitate a desired ratemaking result; however, the Commission found
these comments unpersuasive because accounting rules provide sound and
uniform accounting rather than dictating particular ratemaking
results.\7\
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\6\ Revisions to Uniform System of Accounts to Account for
Allowances under the Clean Air Act Amendments of 1990 & Regulatory-
Created Assets & Liabilities & to Form Nos. 1, 1-F, 2 & 2-A, Order
No. 552, 62 FR 61299 (Nov. 17, 1997), FERC Stats. & Regs. ] 30,967
(1993) (cross-referenced at 62 FERC ] 61,299).
\7\ Id. at 30,799.
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6. In 2013, the Commission issued Order No. 784, which revised the
USofA and related forms to codify accounting treatment for energy
storage.\8\ The Commission created: (1) new electric plant and
associated operating and maintenance expense accounts (O&M accounts) to
record investments in, and operations and maintenance costs associated
with, energy storage assets; (2) a new purchased power account to
record the cost of power purchased for use in storage operations; and
(3) new FERC Form Nos. 1 and 1-F schedules.\9\ Order No. 784 also
amended existing schedules in FERC Form Nos. 1, 1-F, and 3-Q (electric)
to report operational and statistical data on storage assets.
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\8\ Third-Party Provision of Ancillary Services; Accounting &
Financial Reporting for New Electric Storage Technologies, Order No.
784, 78 FR 46178 (July 30, 2013), 144 FERC ] 61,056 (2013), order on
clarification, Order No. 784-A, 146 FERC ] 61,114 (2014).
\9\ Id. P 123.
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7. Specifically, the Commission created electric plant accounts for
energy storage assets within the existing USofA functions: Account 348
(Energy Storage Equipment--Production), Account 351 (Energy Storage
Equipment--Transmission), and Account 363 (Energy Storage Equipment--
Distribution).\10\ The Commission created corresponding new O&M
accounts: Account 548.1 (Operation of Energy Storage Equipment) and
Account 553.1 (Maintenance of Energy Storage Equipment) for energy
storage plant classified as production; Account 562.1 (Operation of
Energy Storage Equipment) and Account 570.1 (Maintenance of Energy
Storage Equipment) for energy storage plant classified as transmission;
and Account 582.1 (Operation of Energy Storage Equipment) and Account
592.2 (Maintenance of Energy Storage Equipment) for energy storage
plant classified as distribution.\11\
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\10\ Id. P 141.
\11\ Id. P 147.
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8. In these energy storage accounts, the installed cost of energy
storage assets is recorded based on the function or purpose the assets
serve. Where an energy storage asset performs more than one purpose or
function, Order No. 784 requires the cost of the asset to be allocated
among the accounts based on the functions performed and approved rate
recovery.\12\ While some commenters argued that the requirement to
allocate energy storage assets that perform multiple functions across
the relevant accounts places an undue administrative burden on
utilities, the Commission nevertheless provided for functional
recording because utilities that recover the costs of storage
operations on a cost of service basis must already maintain cost
allocation information on the assets.\13\ Furthermore, the Commission
in Order No. 784 found that the alternative of recording all costs of
energy storage assets in a single plant account would result in less
transparent reporting.\14\
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\12\ Id. P 126.
\13\ Id. P 133.
\14\ Id. P 135.
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B. Locke Lord Petition
9. In Docket No. AC20-103, Locke Lord submitted a petition to the
Chief Accountant requesting confirmation that the costs of certain wind
and solar generating assets should be booked to Other Production
Accounts 343 (Prime Movers), 344 (Generators), and 345 (Accessory
Electric Equipment).\15\ Specifically, Locke Lord proposed to record:
(1) wind turbines, solar modules, combiner circuits, and inverters to
Account 343 (Prime
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Movers); (2) wind turbine generators to Account 344 (Generators); and
(3) DC conductors, individual low-voltage step-up transformers, AC
conductors (34.5 kV) associated with collector systems, power cables,
conduit and underground duct banks, circuit breakers, disconnect
switches and accessories, grounding conductors and grounding
transformers, collector system buses, main and/or auxiliary transfer
buses, collector system control systems, Supervisory Control and Data
Acquisition (SCADA) systems, static capacitors and reactors, and
collector system substations to Account 345 (Accessory Electric
Equipment).
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\15\ Locke Lord LLP, 174 FERC ] 61,033, at P 1 (2021).
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10. Some commenters in that proceeding argued that the petition
proposed recording inappropriate costs, including costs related to the
collector system and SCADA,\16\ into Account 345 (Accessory Electric
Equipment), which would implicate broader issues of compensation for
reactive power.\17\ Some commenters, including Edison Electric
Institute (EEI), suggested that the Commission consider creating new
accounts for wind, solar, and other non-hydro renewables to resolve
this dispute.\18\
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\16\ Id. P 6.
\17\ Id. PP 10, 13. Specifically, the AEP Methodology identifies
costs associated with four groups of plant investment: (1) the
generators/exciters; (2) generator step-up transformers; (3)
accessory electric equipment; and (4) the remaining production plant
investment. These costs are then allocated between real and reactive
power using an allocation factor. Id. P 10 n.12.
\18\ Id. PP 8, 13, 16.
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11. The Commission denied the petition, noting that the record
reflected substantial disagreement about equipment functions and
categorizations.\19\ In so doing, the Commission also noted that it
would concurrently issue a Notice of Inquiry (NOI) to consider creating
separate categories of accounts in the USofA for wind and solar
generating assets.\20\ The Commission has since opened a separate
proceeding under Docket No. RM22-2-000 to gather comments and
information about potential alternative reactive power compensation.
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\19\ Id. P 19.
\20\ Id. P 20.
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C. Notice of Inquiry
12. On January 19, 2021, the Commission issued an NOI in the
instant docket seeking comment on the appropriate accounting treatment
for certain renewable generating assets.\21\ Specifically, the
Commission sought comment on: (1) whether to create new accounts within
the USofA for non-hydro renewable energy generating assets; \22\ (2)
what modifications to FERC Form No. 1 are needed to reflect these
changes; (3) whether to codify the proper accounting treatment of the
purchase, generation, and use of renewable energy credits (REC); and
(4) whether there are rate-setting implications for these accounting
and reporting changes.
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\21\ Accounting & Reporting Treatment of Certain Renewable
Energy Assets, Notice of Inquiry, 86 FR 7086, 174 FERC ] 61,032
(2021) (NOI).
\22\ The NOI defined non-hydro renewable generating assets as
production assets other than hydroelectric generators (such as
solar, wind energy, geothermal, biomass, etc.) that rely on the heat
or motion of the earth or the sun's radiation to produce energy.
These assets are denoted as renewable because the power production
is based on a fuel source that is not consumed or destroyed by the
generation process, such as buried hydrocarbons (coal, oil, natural
gas) or the decay of rare irradiated heavy metals (nuclear). Biomass
(trees, nut shells, grain husks and stalks, etc.) is considered
renewable, despite consumption of its hydrocarbon source, because
the carbon it releases is offset by regrowth of carbon capturing
equivalent biomass. Id. P 1.
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13. The Commission explained that the USofA contains discrete
production accounts for Steam, Nuclear, Hydraulic, and Other
Production, but does not contain accounts specifically designated for
solar, wind, or other non-hydro renewable generating assets.\23\ The
Commission noted that companies record non-hydro renewable generating
assets in the USofA's Other Production accounts, but that parties have
disagreed which Other Production accounts are appropriate for these
assets.\24\ For example, the Commission noted that no plant account
definition clearly describes solar panels, PV inverters, wind
generation towers, or the computer hardware and software required to
operate wind and solar generators.\25\ Similarly, the Commission
explained that the related O&M accounts do not uniquely accommodate
costs to maintain wind and solar facilities.\26\
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\23\ Id. P 2.
\24\ Id. PP 2-3.
\25\ Id. PP 6-9.
\26\ Id. P 9.
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14. The Commission also explained that USofA accounts do not
explicitly address the purchase, generation, or use of RECs.\27\ The
Commission found in Ameren Illinois Co. that RECs are analogous to
sulfur dioxide emission allowances, accounting treatment for which was
codified in Order No. 552.\28\ The Commission noted that Order No. 552
classified emission allowances as inventory and established new
inventory and expense accounts to record the allowances and associated
activities.\29\ In keeping with Order No. 552, the Commission has found
that RECs that are purchased or generated should be recorded in Account
158.1 (Allowance Inventory) and expensed to Account 509 (Allowances) as
they are utilized.\30\
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\27\ Id. PP 4, 13.
\28\ Ameren Illinois Co., 170 FERC ] 61,267, at P 52 (2020).
\29\ NOI, 174 FERC ] 61,032 at P 13 (citing Order No. 552, FERC
Stats. & Regs. ] 30,967).
\30\ Id. PP 4, 13-14 (citing Ameren Illinois Co., 170 FERC ]
61,267 at P 52).
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15. The Commission also noted that any proposed additions and
modifications to its USofA would require corresponding changes to FERC
Form No. 1, and could have a significant and measurable impact on
rates.\31\
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\31\ Id. PP 12, 16.
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D. Notice of Proposed Rulemaking
16. On July 28, 2022, the Commission issued a NOPR in the same
proceeding.\32\ In the NOPR, the Commission proposed, as discussed in
greater detail below, to: (1) create new subfunctions and accounts for
wind, solar, and other non-hydro renewable generating assets; (2)
establish a new functional class and accounts for energy storage
accounts; (3) create new accounts and codify the accounting treatment
of RECs; and (4) create new accounts for computer hardware, software,
and communication equipment within existing functions that do not
already include them. The Commission received seven comments from a
diverse set of stakeholders.\33\
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\32\ See Accounting & Reporting Treatment of Certain Renewable
Energy Assets, Notice of Proposed Rulemaking, 87 FR 59870 (Oct. 3,
2022), 180 FERC ] 61,050, at P 28 (2022) (NOPR).
\33\ See American Clean Power Association (ACP) and Solar Energy
Industries Association (SEIA) (collectively Clean Energy
Associations) NOPR Comments; Carl Pechman NOPR Comments; Dominion
Energy, Inc. (Dominion) NOPR Comments; EEI and American Gas
Association (AGA) (collectively Utility Associations) NOPR Comments;
Liquid Energy Pipeline Association (LEPA) NOPR Comments; Pacific Gas
and Electric (PG&E) and San Diego Gas and Electric (SDG&E) NOPR
Comments; Retail Energy Supply Association (RESA) NOPR Comments.
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III. Need for Reform
17. In the NOPR, the Commission noted that the USofA has not been
significantly modified since the Commission issued Order No. 784 in
2013 and does not provide clear accounting treatment for activities
related to many technological and economic developments in the U.S.
energy industry of recent decades, like the growth of investments into
renewable generating facilities, battery storage, and RECs, among
others.\34\ By adding functional detail to the USofA, these reforms
will provide uniformity, consistency, and transparency in
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accounting and reporting for investments into these assets, and assist
the Commission in fulfilling its responsibilities under the FPA to
ensure that rates remain just and reasonable.
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\34\ NOPR, 180 FERC ] 61,050 at P 27.
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18. As discussed in the NOPR and NOI, the USofA contains discrete
production accounts for Steam, Nuclear, Hydraulic, and a catch-all
category for Other Production.\35\ However, the USofA does not have
production accounts designated specifically for solar, wind, or other
renewable generating assets; public utilities instead record non-hydro
renewable generating assets in the Other Production accounts. Given the
rapid expansion and development of wind, solar, and other renewable
generation technologies, and the record in Docket No. AC20-103 and the
instant rulemaking proceeding, we conclude that the USofA must be
modified to clarify how public utilities should account for non-hydro
renewable generating assets, to avoid inconsistencies in accounting and
reporting, and to facilitate the ratemaking process. NOI and NOPR
commenters also generally agreed that these accounts are needed given
non-hydro renewables' varied and distinct characteristics from existing
electric production subfunctions within the USofA.\36\
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\35\ 18 CFR part 101.
\36\ See ACP NOI Comments at 16; Alliant Energy NOI Comments at
3; Dominion NOPR Comments at 3; EEI NOI Comments at 4; Utility
Associations NOPR Comments at 7. But see Clean Energy Associations
NOPR Comments at 6 (contending that confusion and inconsistency in
recording renewable energy assets can be resolved at lesser cost by
clarifying that specific existing USofA accounts should be used).
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19. Our reporting requirements for energy storage also need
revision. In Order No. 784, the Commission created accounts for energy
storage assets and related operations and maintenance expenses within
different functions, but underestimated the additional burden that
functional reporting, along with frequent reclassification of plant
assets and associated accumulated depreciation, imposes on
utilities.\37\ Since the issuance of Order No. 784, and based on
experience and industry input since the issuance of Order No. 784, the
Commission now recognizes the need for revisions to its USofA for
energy storage accounting. Today, it is clear that frequently changing
functionalization imposes significant recordkeeping and reporting
burden on utilities, which increases internal control risks for
reporting errors in our forms.\38\ Consequently, NOI commenters
requested the Commission to create, and NOPR commenters supported the
proposed creation of, a new energy storage function in this
proceeding.\39\ We are now persuaded that this new function is needed
to simplify and improve recording and reporting of energy storage
assets and related expenses.
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\37\ See Order No. 784, 144 FERC ] 61,056 at P 133.
\38\ EEI NOI Comments at 6-9.
\39\ Clean Energy Associations NOPR Comments at 5; EEI NOI
Comments at 6-9; Energy Storage Association (ESA) NOI Comments at 1-
2; Utility Associations NOPR Comments at 11.
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20. Similarly, the Commission has concluded that USofA revision is
needed to formalize accounting treatment for the purchase, generation,
and use of environmental credits. While the Commission explained in
2020 that RECs should be treated analogously to the accounting
treatment for sulfur dioxide emission allowances addressed in Order No.
552,\40\ not all utilities follow this approach.\41\ In addition,
utilities are increasingly using a variety of environmental crediting
items.\42\ As such, codifying environmental credit treatment will
promote consistent treatment of these items in Commission accounting
and reporting.
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\40\ Ameren Illinois Co., 170 FERC ] 61,267 at P 52.
\41\ EEI NOI Comments at 10.
\42\ See Carl Pechman NOPR Comments at 4; Utility Associations
NOPR Comments at 19.
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21. Lastly, designated computer hardware, software, and
communication equipment accounts for all functions and plant
subfunctions are needed to eliminate ambiguity and improve consistency
in accounting and reporting. Currently, the USofA includes designated
computer hardware, software, and computer equipment accounts in some
functions and subfunctions but not others. Specifically, the Regional
Transmission and Market Operation Plant function includes plant
accounts for computer hardware, software, and communication equipment,
and the Transmission and Regional Market functions contain maintenance
accounts for these assets, but no other plant or maintenance function
includes such specificity.\43\ USofA revisions are therefore needed to
provide for consistent treatment of these assets and costs.
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\43\ See 18 CFR part 101.
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IV. Proposed Reforms
A. Creation of New Subfunctions and Accounts for Non-Hydro Renewables
1. NOPR
22. The Commission proposed three new subfunctions within the
Production Plant function of the USofA: D. Solar Production, E. Wind
Production, and F. Other Non-Hydro Renewable Production.\44\ Consistent
with all other production subfunctions (e.g., Steam Production, Nuclear
Production, and Hydraulic Production), the Commission proposed the
following five accounts within each of these three new subfunctions:
(1) Accounts 338.1, 338.20, and 339.1 (Land and Land Rights); (2)
Accounts 338.2, 338.21, and 339.2 (Structures and Improvements); (3)
Accounts 338.8, 338.29, and 339.8 (Other Accessory Electrical
Equipment); (4) Accounts 338.12, 338.33, and 339.12 (Miscellaneous
Power Plant Equipment); and (5) Accounts 338.13, 338.34, and 339.13
(Asset Retirement Costs).\45\ These accounts are similar in description
and instruction to the existing accounts of the same title in each of
the other production subfunctions.
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\44\ NOPR, 180 FERC ] 61,050 at P 33.
\45\ Id. P 35. The three accounts under each number represent
the three new subfunctions: Solar, Wind, and Non-Hydro Renewable
Production, respectively.
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23. The Commission also proposed to create three additional
accounts for the new Solar Production and Wind Production subfunctions:
(1) Accounts 338.5 and 338.26 (Collector System); (2) Accounts 338.6
and 338.27 (Generation Step-up Transformers (GSU)); and (3) Accounts
338.7 and 338.28 (Inverters).\46\ Similar to distribution system
accounts, the Collector System accounts list many of the same items
included in the accounts for Poles, Towers and Fixtures (Account 364)
and Overhead Conductors and Devices (Account 365).\47\ The GSU accounts
are intended to record transformers that are directly connected to
generator terminal tips and supporting equipment. The inverter accounts
are intended to record equipment that converts power from direct
current to alternating current.
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\46\ Id. P 36.
\47\ For example, Account 364 listed, among others, poles,
towers, anchors, and extension arms. Account 365 listed, among
others, circuit breakers, conductors, and lightning arrestors.
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24. Additionally, the Commission proposed unique generating
accounts for all three subfunctions: (1) Account 338.4 (Solar Panels)
for Solar Production; (2) Account 338.23 (Wind Turbines) and Account
338.24 (Wind Towers and Fixtures) for Wind Production; and (3) Account
339.3 (Fuel Holders), Account 339.4 (Boilers), and Account 339.6
(Generators) for Other Non-Hydro Renewable Production.\48\ The solar
panels account is designated to record panels and support equipment
that change solar energy into electricity and related supporting
structures such as racks and gears. The wind turbines
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account includes components that are located from the top of the tower
to the end of the turbine blades. The wind towers and fixtures account
includes the tower and the components contained within the tower that
are located from the top of the foundation to the base of the nacelle.
The three accounts to record fuel holders, boilers, and generators that
are included in Other Non-Hydro Renewable Production capture renewable
generation assets that use any fuel source or method (e.g., steam or
direct burning). These accounts allow for recording biofuels, hydrogen,
geothermal, and other types of generation in this subfunction. Many of
the items listed in these account descriptions are the same as those
accounts listed in the Steam and Other Production subfunctions.\49\
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\48\ NOPR, 180 FERC ] 61,050 at P 37.
\49\ See, e.g., Account 342 (Fuel Holders, Producers, and
Accessories); Account 312 (Boiler Plant Equipment); Account 344
(Generators).
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25. Similar to the new plant accounts for non-hydro renewables, the
Commission proposed new O&M accounts for these subfunctions, titled F.
Solar Generation, G. Wind Generation, and H. Other Non-Hydro Renewable
Generation.\50\ All three subfunctions include the following seven
accounts consistent with the other subfunctions (e.g., Steam, Nuclear,
and Hydraulic): (1) Accounts 558.1, 558.20, and 559.1 (Operation
Supervision and Engineering); (2) Accounts 558.4, 558.23, and 559.4
(Rents); (3) Accounts 558.5, 558.24, and 559.5 (Operation Supplies and
Expenses (Nonmajor only)); (4) Accounts 558.6, 558.25, and 559.6
(Maintenance Supervision and Engineering (Major only)); (5) Accounts
558.7, 558.26, and 559.7 (Maintenance of Structures (Major only)); (6)
Accounts 558.16, 558.36, and 559.15 (Maintenance of Miscellaneous
(Solar, Wind, or Other Non-Hydro Renewable) Generation Plant (Major
only)); and (7) Accounts 558.17, 558.37, and 559.16 (Maintenance of
(Solar, Wind, or Other Non-Hydro Renewable) Generation Plant (Nonmajor
only)).\51\ These accounts have similar descriptions, items, and
instructions to existing accounts.
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\50\ NOPR, 180 FERC ] 61,050 at P 38.
\51\ Item 7 includes three accounts that are designated as
nonmajor only. Nonmajor entities would therefore record all
maintenance activities in these accounts without the added
granularity required for major entities (Items 1-6).
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26. The Commission also proposed four additional maintenance
accounts for Solar and Wind Generation subfunctions, but not for the
Other Non-Hydro Renewable Production subfunction: \52\ (1) Accounts
558.9 and 558.29 (Maintenance of Collector Systems (Major only)); (2)
Accounts 558.10 and 558.30 (Maintenance of Generator Step-up
Transformers (Major only)); (3) Accounts 558.11 and 558.31 (Maintenance
of Inverter Expenses (Major only)); and (4) Accounts 558.12 and 558.32
(Maintenance of Other Accessory Electrical Equipment (Major only)).\53\
These accounts allow for recording maintenance expenses for the
associated plant accounts for Solar and Wind Production. The proposed
list of items for Accounts 558.9 and 558.29 (Maintenance of Collector
Systems (Major only)) are similar to the list of items for Account 593
(Maintenance of Overhead Lines (Major only)) in the Distribution
Expenses function.
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\52\ While wind and solar are distributive in design (i.e., with
a collector system spread across a comparatively wide area), other
renewables are, as currently conceived, unlikely to be distributive
in design. These non-distributive renewable plants, similar to
existing coal, oil, nuclear, and gas plants, do not have collector
systems. In addition, their generator step-up transformers and
inverters are comparatively minor integrated parts.
\53\ NOPR, 180 FERC ] 61,050 at P 39.
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27. The Commission also proposed new operating expense accounts for
the main operating costs of the new production subfunctions: for Solar
Generation, Account 558.2 (Solar Panel Generation and Other Plant
Operating Expenses (Major only)); for Wind Generation, Account 558.21
(Wind Turbine Generation and Other Plant Operating Expenses (Major
only)); and for Other Non-Hydro Renewable Generation, Account 559.2
(Other Miscellaneous Generation and Other Plant Operating Expenses
(Major only)), and Account 559.3 (Fuel).\54\
---------------------------------------------------------------------------
\54\ Id. P 40.
---------------------------------------------------------------------------
28. In addition, the Commission proposed new maintenance accounts
for specific generation assets: for Solar Generation, Account 558.8
(Maintenance of Solar Panels (Major only)); for Wind Generation,
Account 558.27 (Maintenance of Wind Turbines, Towers and Fixtures
(Major only)); and for Other Non-Hydro Renewable Generation, Account
559.9 (Maintenance of Boilers (Major only)), and Account 559.10
(Maintenance of Generating and Electric Equipment (Major only)).\55\
These new accounts have similar descriptions and instructions to
maintenance accounts for generation equipment in the other
subfunctions. The Commission proposed to designate an account for
maintenance of electrical equipment separate from the maintenance of
generation equipment for the new Solar and Wind Generation
subfunctions.
---------------------------------------------------------------------------
\55\ Id. P 41.
---------------------------------------------------------------------------
29. Further, the Commission proposed new accounts for the
Maintenance of Computer Hardware (Major only), the Maintenance of
Computer Software (Major only), and Maintenance of Communication
Equipment (Major only) for the three new plant subfunctions (Solar,
Wind, and Other Non-Hydro Renewable Generation) corresponding to the
plant accounts, as discussed further below.\56\
---------------------------------------------------------------------------
\56\ Id. P 42.
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30. Lastly, the Commission sought comment on several topics.\57\
First, to avoid confusion with the existing ``Other Production''
generation subfunction, the Commission sought comment on whether to
retitle that subfunction to ``Prime Mover Production'' because the
current instructions to the ``Other Production'' subfunction only
describe prime mover-type generation assets.\58\ Second, noting that
the USofA does not currently address kinetic energy from the ocean to
generate electricity,\59\ the Commission sought comment on whether to
include both tidal and wave energy as part of the existing Hydraulic
Production function, rather than in the newly proposed other non-hydro
renewable asset accounts. Third, the Commission sought comment on
whether the Commission's Chief Accountant should issue accounting
guidance for hydrogen, and whether it would be helpful to propose
revisions to the USofA for natural gas pipelines to account for
hydrogen activities.
---------------------------------------------------------------------------
\57\ Id. PP 34, 43, 68.
\58\ A prime mover electric generator is one where the fuel
source directly moves the electric turbine rather than using a
boiler or other secondary energy transfer.
\59\ See EEI NOI Comments at 4-5.
---------------------------------------------------------------------------
2. Comments
31. Dominion and Utility Associations support the addition of new
accounts for non-hydro renewable generating assets.\60\ Clean Energy
Associations contend that confusion and inconsistency in recording
renewable energy assets could be resolved at lesser cost by clarifying
that specific existing USofA accounts should be used, but support the
Commission's proposed accounts for wind turbines (Account 338.23);
solar panels and related racking and trackers (Account 338.4);
inverters and converters (Account 338.28); individual, low-voltage
step-up transformers (Accounts 338.6 and 338.26); AC collector systems
(Accounts
[[Page 69299]]
338.5 and 338.26); and Static capacitors (Account 338.5).\61\
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\60\ Dominion NOPR Comments at 3; Utility Associations NOPR
Comments at 7.
\61\ Clean Energy Associations NOPR Comments at 6.
---------------------------------------------------------------------------
32. Commenters also suggest specific revisions to the NOPR
proposal. First, Clean Energy Associations raise concerns that the NOPR
proposed separate accounts for some equipment that is infrequently
itemized by manufacturers and typically retired together.\62\ For wind
facilities, Clean Energy Associations accordingly recommend that the
Commission consolidate proposed Account 338.23 (Wind Turbines) and
Account 338.24 (Wind Towers and Fixtures) into a single account for the
wind turbine generator, tower, pad-mounted or nacelle-mounted
transformer, and foundation. Further, they argue that reporting wind
towers and turbines together would be consistent with Electric Plant
Instruction No. 3, Item 8, Part B, which states ``[t]he cost of
specially provided foundations not intended to outlast the machinery or
apparatus for which provided, and the cost of angle irons, castings,
etc., installed at the base of an item of equipment, shall be charged
to the same account as the cost of the machinery, apparatus, or
equipment.'' \63\ For solar facilities, Clean Energy Associations
suggest that the Commission consolidate solar inverter and power
station transformer costs into the same account.\64\ In the
alternative, Clean Energy Associations request that the Commission
specify how costs should be recorded when manufacturers or contractors
do not itemize them separately.
---------------------------------------------------------------------------
\62\ Id. at 13-14, 19.
\63\ 18 CFR part 101, Electric Plant Instruction No. 3, Item 8,
Part B.
\64\ Clean Energy Associations NOPR Comments at 13-14.
---------------------------------------------------------------------------
33. Next, Clean Energy Associations make several comments related
to recording collector system costs.\65\ First, Clean Energy
Associations note inconsistencies in the collector system definitions
for Solar Production and Wind Production subfunction accounts, Account
338.5 and Account 338.26, respectively--both between the two and
compared with conventional generation accounts. Between the two new
Collector System account definitions, Clean Energy Associations suggest
revising the definition of the collector system for wind generation in
Account 338.26 to mirror the proposed definition for solar generation,
which reads: ``This account shall include all cost of cabling, junction
boxes, connection cabinets, and all facilities and devices (such as
static capacitors) that are used to transport and consolidate the power
fed from individual wind turbine generators, once it has been stepped-
up, to the substation prior to interconnection to the grid.''
---------------------------------------------------------------------------
\65\ Id. at 11-12.
---------------------------------------------------------------------------
34. Further, Clean Energy Associations request that the Commission
identify an account for collector system substation costs.\66\ Clean
Energy Associations recommend that the Commission adopt a separate
Production Plant account for the substation similar to the collector
system or clarify the definition of the collector system to include the
specific items that are part of the collector system substation.
---------------------------------------------------------------------------
\66\ Id. at 7-8.
---------------------------------------------------------------------------
35. Clean Energy Associations also suggest that the Commission
consolidate treatment of static capacitors and reactors in the same
account.\67\ While the NOPR proposed requiring solar system capacitor
reporting in Account 338.5 (Collector System) and reactor reporting in
Account 338.8 (Other Accessory Electrical Equipment), Clean Energy
Associations suggest that no distinction between the two technologies
is needed. Specifically, Clean Energy Associations suggest that if the
Commission intends to include all of the plant from the high side of
the individual, low-voltage step-up transformers located at the
inverter power stations and/or the wind turbines to the low side of the
Main Power Transformer (MPT) at the substation (for a transmission
interconnection) or interconnection with the grid (for a distribution
interconnection), it should include both capacitors and reactors
connected to the collector system in the definition for the Collector
System account. Further, Clean Energy Associations note the need for
the Commission to make the same determination for wind generation,
which also may use static capacitors and reactors, but is not included
in the proposed amendment to the USofA.
---------------------------------------------------------------------------
\67\ Id. at 6-7.
---------------------------------------------------------------------------
36. Clean Energy Associations next suggest that the Commission
clarify the end-point of the collector system and adopt definitions
that run from inverters or wind turbines up to but not including the
MPT, consistent with comparable equipment for conventional
generation.\68\ According to Clean Energy Associations, the NOPR's
solar and wind collector system definitions appear to go beyond the
MPT, while conventional generation connects generators to the MPT via
connection facilities that end at the low side of the MPT.
---------------------------------------------------------------------------
\68\ Id. at 12.
---------------------------------------------------------------------------
37. In addition, Clean Energy Associations request that the
Commission establish a separate Production Plant account to house the
installed cost of the DC collector system, or clarify that the cost
should be reported to Other Accessory Electric Equipment in proposed
Account 338.8.\69\ According to Clean Energy Associations, the DC
collector system does not fit within the NOPR's definitions for
proposed Account 338.4 (Solar Panels) nor Account 338.5 (Collector
System), which they understand to be limited to the AC collector system
connected to the high side of the inverter power station transformer.
---------------------------------------------------------------------------
\69\ Id. at 8-9.
---------------------------------------------------------------------------
38. Clean Energy Associations further request that the Commission
clarify the exact equipment that should be included in the Other
Accessory Equipment accounts for both solar and wind, especially given
overlap with the proposed Collector System accounts.\70\
---------------------------------------------------------------------------
\70\ Id. at 17-18.
---------------------------------------------------------------------------
39. The Commission also received comments on the NOPR's proposed
accounts for GSU. Utility Associations note a potential inconsistency
between the NOPR's proposed GSU definition and Kentucky Utilities
Company's instruction that ``GSU transformers are not used in the
generation of power and thus should not be booked to production plant
accounts'' (although their costs may be assigned to production through
the ratemaking process).\71\ The Commission proposed to include GSU
transformers on the low side of the collector system in new Solar
Production and Wind Production subfunction accounts.\72\ Utility
Associations ask the Commission to reconcile this proposal with
Kentucky Utilities Company's instruction.
---------------------------------------------------------------------------
\71\ Utility Associations NOPR Comments at 7-8 (citing Kentucky
Utilities Co., 85 FERC ] 61,274, at 62,112 n.37 (1998) (Opinion No.
432)).
\72\ NOPR, 180 FERC ] 61,050 at P 36; see also id., proposed
Accounts 338.6 and 338.27.
---------------------------------------------------------------------------
40. Clean Energy Associations, for their part, suggest that the
Commission revise the proposed GSU account definitions to include all
transformer devices up to and including the MPT housed in the
substation--that is, GSUs on the high side of the of the collector
system in addition to those on the low side.\73\ Clean Energy
Associations also cite to Kentucky Utilities Company,\74\
[[Page 69300]]
the Commission's characterization of Kentucky Utilities Company in
Pacific Gas & Electric Co.,\75\ and Order No. 827,\76\ to argue that
the Commission should expand its GSU accounts to include the substation
MPT and equipment located beyond the high side of the substation MPT.
---------------------------------------------------------------------------
\73\ Clean Energy Associations NOPR Comments at 9-10.
\74\ Id. at 9 (citing Opinion No. 432, 85 FERC at 62,112 n.36
(``[T]he GSU serves no purpose without the generator, and the
generator cannot transform power to the transmission-level voltage
without the GSU.'')).
\75\ Id. at 10 (citing Pacific Gas & Electric Co., 106 FERC ]
61,144, at P 19 (2004) (``GSU transformers . . . are located at
generation stations and [are] used solely to increase the voltage of
electric energy produced by generators to the higher voltages
necessary for bulk power transmission to load centers.'')).
\76\ Id. (citing Reactive Power Requirements for Non-Synchronous
Generation, Order No. 827, 81 FR 40793 (June 23, 2016), 155 FERC ]
61,277, at P 13 n.31 (2016) (``[T]he generator substation would be
the substation for a wind [or solar] generator that separates the
low-voltage collector system from the higher voltage elements of the
Interconnection Customer Interconnection Facilities that bring the
generator's energy to the Point of Interconnection.'')).
---------------------------------------------------------------------------
41. Clean Energy Associations also request clarification about
where and how the substation MPT and equipment located beyond the high
side of the substation MPT should be recorded.\77\ Clean Energy
Associations suggest that the proposed collector system definitions in
Accounts 338.5, 338.26, and 387.5 overlap with the description for
Station Equipment in existing Account 353.
---------------------------------------------------------------------------
\77\ Id. at 10-11 (citing NOPR proposed Accounts 338.5, 338.26,
and 387.5 (``This account shall include all cost of cabling,
junction boxes, connection cabinets, and all facilities that are
installed beyond the high side of the GSU transformer and the
transmission or distribution point of interconnection.'') and 18 CFR
part 101, Account 353 (``This account shall include the cost
installed of transforming, conversion, and switching equipment used
for the purpose of changing the characteristics of electricity in
connection with its transmission or for controlling transmission
circuits.'')).
---------------------------------------------------------------------------
42. Clean Energy Associations further request clarification related
to reporting different types of land and construction costs for non-
hydro renewable generation projects.\78\ Clean Energy Associations
suggest that the Commission define or affirm that it is appropriate to
allocate the clearing and grading, permitting, and site civil costs
across all direct costs (including both structures and equipment
accounts). Specifically, Clean Energy Associations suggest clarifying
that it is appropriate to report: (1) improvement and equipment costs
comparably to USofA Electric Plant Instruction Nos. 8(A) and 9(A)
across all direct costs; (2) permits and privileges in accordance with
the booking of the associated plant for which the permit is sought; and
(3) land option payments that permit site access, investigation, and
permit applications and/or land lease payments during the construction
period as privileges and permits under Electric Plant Instruction No.
3, Components of Construction Cost, Item 9, or expenses during
construction under Electric Plant Instruction No. 3.
---------------------------------------------------------------------------
\78\ Id. at 15-17.
---------------------------------------------------------------------------
43. In addition, several commenters comment on the NOPR's proposed
O&M accounts. Utility Associations suggest that wind and solar plants
are simpler to operate than other types of generating plant, with less
distinguishable labor, and therefore require fewer O&M accounts to
support them than traditional generation assets.\79\ They therefore
argue that the Commission should limit the creation of new O&M accounts
for non-hydro renewables to those listed in Appendix A to their
comments. Dominion argues that the Commission should create a robust
list of maintenance accounts sufficient to meaningfully segregate
costs.\80\ Relatedly, Dominion opposes elimination of the miscellaneous
expense account for each type of renewable energy in order to preserve
a place for expenses that do not clearly fall within other specified
accounts. Clean Energy Associations, for their part, agree with the
NOPR's proposed O&M accounts, but urge the Commission to clarify that
the operations and maintenance costs are related to Plant booked to
Production Accounts.\81\ Clean Energy Associations raise the need for
this clarification because, while the NOPR suggests that its four
proposed maintenance accounts ``would allow for the recording of
maintenance expense for the associated plant accounts for Solar and
Wind Production,'' it also suggests that maintenance of the collector
system ``would be similar to the list of items for Account 593
(Maintenance of Overhead Lines) (Major Only)) in the Distribution
Expense function'' and describes wind and solar collector systems as
``distributive in design. . . .'' \82\
---------------------------------------------------------------------------
\79\ Utility Associations NOPR Comments at 7, app. A.
\80\ Dominion NOPR Comments at 3.
\81\ Clean Energy Associations NOPR Comments at 19-20.
\82\ Id. (citing NOPR, 180 FERC ] 61,050 at P 39 n.78).
---------------------------------------------------------------------------
44. Commenters also responded to the NOPR's request for comment on
renaming the Other Production account, how to account for tidal and
wave technologies, and hydrogen accounting guidance. Utility
Associations oppose the NOPR's proposal to retitle ``Other Production''
to ``Prime Mover Production.'' \83\ Utility Associations suggest that
retaining the ``Other Production'' account will preserve existing
flexibility for recording assets in the face of technological change to
record future production assets that do not meet the definition of
either prime movers or renewable generating assets.
---------------------------------------------------------------------------
\83\ Utility Associations NOPR Comments at 7.
---------------------------------------------------------------------------
45. Regarding the NOPR's request for comment on hydrogen
technologies, Utility Associations and Carl Pechman both request
guidance on accounting for hydrogen facilities.\84\ Utility
Associations suggest that hydrogen equipment costs should be recorded
to Account 339.12 (Miscellaneous Power Plant Equipment) while hydrogen
fuel costs should be recorded to Account 547 instead of Account
559.3.\85\ And, while Utility Associations believe that it is currently
premature to propose new public utility accounts specifically for
hydrogen use in the electricity industry, they suggest that new natural
gas pipeline accounts are needed to record the investments and
operating expenses incurred for hydrogen. They therefore recommend that
the Commission update the USofA for natural gas pipelines to include a
list of proposed accounts in Appendix B to their comments.\86\
---------------------------------------------------------------------------
\84\ Carl Pechman NOPR Comments at 3-4; Utility Associations
NOPR Comments at 9-11.
\85\ Utility Associations NOPR Comments at 9-11.
\86\ Those accounts include: (1) Gas Plant Accounts as Section
D--Hydrogen and Other Renewables under Natural Gas Storage and
Processing Plant: (a) Land and land rights, (b) Structures and
improvements, (c) Hydrogen generation and conversion equipment, (d)
Hydrogen storage equipment, (e) Biogas cleaning and conditioning
equipment, (f) Other renewable equipment, (g) Compression and power
equipment, (h) Measuring and regulating equipment Pipelines, (i)
Other equipment Gas Expense; (2) Accounts as Section D--Hydrogen and
Other Renewables under Natural Gas Storage Terminaling and
Processing Expense: (a) Operation: (i) Operation supervision and
engineering, (ii) Hydrogen equipment and storage expense, (iii)
Biogas Equipment expense, (iv) Other renewable equipment expense,
(v) Compression and power equipment expense, (vi) Measuring and
regulating equipment expense, (vii) Pipelines expense, (viii) Other
hydrogen and renewables operating expense, and (b) Maintenance: (i)
Maintenance supervision and engineering, (ii) Maintenance of
structures and improvements, (iii) Maintenance of hydrogen equipment
and storage, (iv) Maintenance of biogas and other renewable
equipment, (v) Maintenance of compression and power equipment, (vi)
Maintenance of measuring and regulating equipment, and (vii)
Maintenance of pipelines Maintenance of other equipment. Id., at
app. B.
---------------------------------------------------------------------------
46. Last, regarding the NOPR's request for comment on tidal and
wave technologies, Carl Pechman advocates for the Commission to adopt a
forward[hyphen]looking policy of developing accounting provisions for
new resources that treats tidal and wave energy activities as a type of
other renewable production rather than including it
[[Page 69301]]
within existing Hydraulic Production accounts.\87\
---------------------------------------------------------------------------
\87\ Carl Pechman NOPR Comments at 4.
---------------------------------------------------------------------------
3. Commission Determination
47. We adopt the NOPR's proposals to create new Production Plant
subfunctions and associated accounts, with minor revisions, as
discussed below. We disagree with Clean Energy Associations that
accounting treatment clarity and transparency can be adequately
provided at lesser administrative burden through issuance of accounting
guidance instead of creating new renewable subfunctions.\88\ The
existing Other Production subfunction no longer fully accommodates the
specificities of modern renewable generation systems. For instance, no
existing Other Production account describes the function that collector
systems provide to wind and solar farms--consolidating power from
individual turbines or panels before interconnection to the grid. The
Commission typically uses accounting guidance to clarify how best to
account for an item among several available accounts. Creating new Wind
Production, Solar Production, and Other Renewable Production
subfunctions is therefore necessary to provide uniformity, consistency,
and transparency to reduce risk of errors in accounting and reporting.
---------------------------------------------------------------------------
\88\ See Clean Energy Associations NOPR Comments at 6.
---------------------------------------------------------------------------
48. First, we adopt the NOPR's proposals to separate reporting of
wind towers, turbines, foundations, and transformers. Wind towers,
turbines, foundations, and transformers are different items with
separate purposes and potentially distinct service lives, and should
therefore be tracked in separate accounts. While Clean Energy
Associations note that these assets are often retired together,\89\ we
have assessed that these assets may feature distinct depreciation lives
supporting separate accounts. We also note that, while vendor invoices
are used for recording costs in construction work in progress that
becomes plant in service, these invoices do not determine the
unitization of plant in service by account under the USofA
instructions.\90\
---------------------------------------------------------------------------
\89\ Id. at 13, 19.
\90\ Costs included in capitalization are explained in 18 CFR
part 101, Electric Plant Instruction Nos. 1. Classification of
electric plant at effective date of system of accounts (Major
utilities), 2. Electric Plant to Be Recorded at Cost, 3. Components
of construction cost, and 4. Overhead Construction Costs.
---------------------------------------------------------------------------
49. We also adopt the NOPR's proposal to create separate GSU and
inverter accounts within the Solar Production subfunction. Like the
wind turbine, tower, foundation, and transformer accounts, establishing
separate accounts is warranted because solar inverters are both
separate equipment from, and do not serve the same function as, power
station transformers. We note that we do not control how vendors
describe the work performed during construction on invoices, and the
company unitizes the costs (into retirement units) after the project is
closed and records the costs to the appropriate plant accounts. Again,
we reiterate that vendor invoices may inform about certain activities
performed during construction, but asset unitization is performed when
the project is complete and available to be placed in service.
50. In addition, we adopt the NOPR's proposal to create Collector
System accounts within the new Solar Production and Wind Production
subfunctions. However, we also agree with Clean Energy Associations
that the definitions of the proposed collector systems in Account 338.5
and Account 338.26 require certain revisions for consistency.\91\ We
have revised the Wind Production subfunction Account 338.26 definition
(and the Energy Storage function Account 387.5 definition) to mirror
the Solar Production collector system definition in Account 338.5.
---------------------------------------------------------------------------
\91\ See Clean Energy Associations NOPR Comments at 11-12.
---------------------------------------------------------------------------
51. We decline to grant Clean Energy Associations' request that we
adopt a separate Production Plant account for the substation.\92\ This
equipment should be recorded either to Account 353 (Station Equipment)
for transmission, or Account 362 (Station Equipment) for distribution.
We note that transmission-level substations have historically been, and
will remain, considered transmission plant for accounting purposes.
While we recognize that this classification may be inconvenient for
utilities that otherwise own only Generation or General Plant function
assets, the true function of the substation--providing transmission-
level voltage to a wire system--governs its classification.
---------------------------------------------------------------------------
\92\ See id. at 7-8.
---------------------------------------------------------------------------
52. However, we grant several of Clean Energy Associations'
requests for clarification,\93\ and so clarify account text as
described herein. First, we have revised the Collector System account
definitions to include static capacitors and reactors in the same
account because they serve similar functions within collector systems.
We note, however, that reactors can serve multiple purposes and are
therefore listed in multiple accounts, and should be recorded to the
appropriate account based on their operational purpose. Second, we have
revised the new Collector System account definitions (Accounts 338.5
and 338.26, as well as Account 387.5 in the new energy storage
function) to indicate that: (1) the collector system end-point extends
up to, but does not include, the substation prior to interconnection to
the grid; and (2) to exclude the cost of transformers and other
equipment used to interconnect to transmission or distribution lines.
We agree with Clean Energy Associations that this revision is needed to
harmonize the solar and wind collector system definitions with our
existing accounts for conventional generation. Third, we clarify that
DC collector systems should be recorded in the Collector System
accounts and revise the Account 338.5 and 338.26 definitions to remove
``once it has been stepped up.'' This revision resolves confusion and
furthers the NOPR's intent to include DC collector systems within the
Collector System account definitions.
---------------------------------------------------------------------------
\93\ See id. at 7 (suggesting inclusion of static capacitors and
reactors in the same account), 12 (requesting clarification on the
collector system end point), 8-9 (requesting clarification on DC
collector system recording).
---------------------------------------------------------------------------
53. Next, we decline to provide an exhaustive list of the equipment
that should be recorded in the Other Accessory Electrical Equipment
accounts.\94\ We reiterate that operational purpose of equipment,
rather than equipment name, determines appropriate account
classification, and that account equipment lists are meant to be
illustrative, not prescriptive. Attempting to provide an exhaustive
list of equipment to be recorded to the Other Accessory Electrical
Equipment account risks over- and under-inclusion of equipment that
should be booked to that account based on functional purpose. To
further clarify the purposes of each account, we have revised their
definitions and instructions to emphasize that Collector System
accounts are for equipment used to transport and consolidate the power
fed from individual generation units (solar panels, wind turbines),
while the equipment recorded in the Other Accessory Electrical
Equipment account supports the generator in the action of generating
power.
---------------------------------------------------------------------------
\94\ See id. at 17-18 (requesting specification of all equipment
that should be recorded in Other Accessory Equipment accounts).
---------------------------------------------------------------------------
54. We also adopt the NOPR's proposal to create GSU accounts within
the new Wind Production and Solar Production subfunctions. We note
that,
[[Page 69302]]
despite commenters' suggestion to the contrary,\95\ this decision is
consistent with Commission precedent in Kentucky Utilities Company.\96\
There, the Commission considered whether the costs of GSU transformers
that step up voltage to the transmission system \97\ should be included
in transmission rates. It determined that, while the costs of such GSU
transformers should be assigned to generators for rate purposes,\98\
for accounting purposes ``GSU transformers are not used in the
generation of power, and thus should not be booked to production
accounts.'' \99\
---------------------------------------------------------------------------
\95\ See Clean Energy Associations NOPR Comments at 9-10;
Utility Associations NOPR Comments at 7-8.
\96\ See Opinion No. 432, 85 FERC ] 61,274.
\97\ Id. at 62,109 n.33 (``A GSU transformer is an electrical
device that transforms power from a lower voltage to a higher
voltage. The GSU transformers in question in this proceeding are
those which step-up voltages at the generation level to higher
voltages at the [transmission level].'')
\98\ Id. at 62,112.
\99\ Id. at 62,112 n.37.
---------------------------------------------------------------------------
55. Utility Associations misread Kentucky Utilities Company in
arguing that it conflicts with the NOPR's proposed GSU account
definitions.\100\ They question how the proposed Production Plant GSU
accounts are consistent with the Commission's statement in Kentucky
Utilities Company that ``GSU transformers are not used in the
generation of power, and thus should not be booked to production
accounts.'' \101\ This confusion appears to derive from the fact that,
unlike traditional generation sources that have a single GSU that
steps-up the generator voltage to transmission or distribution levels,
renewable plants have two step-up transformers: one GSU located on the
low voltage side of the collector system, and another step-up
transformer at the substation, that, as in conventional power plants,
steps up voltage to connect to the transmission or distribution system.
While these assets are both step-up transformers, they serve different
functional purposes--and therefore should be reported to different
accounts. The GSU transformers at issue in Kentucky Utilities Company
stepped up voltage to the transmission system.\102\ The GSU accounts
that we create here for the new Solar Production and Wind Production
subfunctions instead are designated for transformers that step up
voltage to support the collector systems. These GSUs do not directly
interconnect with transmission and distribution power grids. Therefore,
Kentucky Utilities Company is inapposite. To further clarify the GSU
assets that belong in the new Production subfunction accounts, however,
we revise Accounts 338.6 and 338.27 (and Energy Storage function
Account 387.6) to expressly exclude transformers and other equipment
that step up voltage or frequency for the purposes of transmission or
distribution. Those assets are more appropriately included in
transmission or distribution Account 353 (Station Equipment) or Account
362 (Station Equipment), respectively.
---------------------------------------------------------------------------
\100\ Utility Associations NOPR Comments at 7-8.
\101\ Opinion No. 432, 85 FERC at 62,112 n.37.
\102\ Id. at 62,109 n.33 (specifying that ``[t]he GSU
transformers in question in this proceeding are those which step-up
voltages at the generation level to higher voltages at the
[transmission level].'').
---------------------------------------------------------------------------
56. Clean Energy Associations also misread Kentucky Utilities
Company.\103\ They argue that Kentucky Utilities Company requires the
Commission to include the substation MPT and equipment located beyond
the high side of the substation MPT within the GSU accounts. In doing
so, Clean Energy Associations mistake Kentucky Utilities Company's
holding on rate treatment for one applying to accounting treatment. To
the contrary, Kentucky Utilities Company expressly forbade recording
the cost of GSU equipment beyond the high side of the substation MPT to
production plant accounts, even while noting that the GSUs serve
generators for rate allocation purposes.\104\ Clean Energy
Associations' references to Pacific Gas & Electric Co. and Order No.
827 are even less relevant.\105\ In Pacific Gas & Electric Co., the
Commission distinguished that rate case from Kentucky Utilities Company
in finding that the facilities in the two cases were different and held
that bulk transmission lines configured as loop facilities should be
allocated to transmission rates. The Commission's order in Pacific Gas
& Electric Co. said nothing about the accounting treatment for the
substation MPT and equipment located beyond the high side of the
substation MPT.\106\ The Commission's illustrative footnote in Order
No. 827, which required non-synchronous generators to provide dynamic
reactive power at the high-side of the generator substation,\107\
similarly did not disturb our precedent that transformers used to step
up voltage for the purpose of transmission or distribution should not
be recorded to Production Plant accounts.\108\ Therefore, our decision
to limit the equipment that is recorded in the new GSU accounts to
equipment that steps up voltage on the low side of the MPT is
consistent with Commission precedent.
---------------------------------------------------------------------------
\103\ Clean Energy Associations NOPR Comments at 9-10.
\104\ Compare Opinion No. 432, 85 FERC at 62,112 n.37 (``GSU
transformers are not used in the generation of power and thus should
not be booked to production plant accounts.'') with id. at 62,112
(``[I]t has become increasingly important to recognize the role that
GSUs perform in support of generation as it pertains to the
allocation of costs.'').
\105\ See Clean Energy Associations NOPR Comments at 9-10
(citing Pacific Gas & Electric Co., 106 FERC ] 61,144 at P 19 (``GSU
transformers . . . are located at generation stations and [are] used
solely to increase the voltage of electric energy produced by
generators to the higher voltages necessary for bulk power
transmission to load centers.''); Order No. 827, 155 FERC ] 61,277
at P 13 n.31 (``[T]he generator substation would be the substation
for a wind [or solar] generator that separates the low-voltage
collector system from the higher voltage elements of the
Interconnection Customer Interconnection Facilities that bring the
generator's energy to the Point of Interconnection.'').
\106\ Pacific Gas & Electric Co., 106 FERC ] 61,144 at PP 19-20.
\107\ Order No. 827, 155 FERC ] 61,277 at P 13.
\108\ See Opinion No. 432, 85 FERC at 62,112 n.37 (``GSU
transformers are not used in the generation of power and thus should
not be booked to production plant accounts.'').
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57. In response to Clean Energy Associations' concerns about where
to record the substation MPT given alleged conflict between proposed
collector system definitions in Accounts 338.5, 338.26, and 387.5 and
the Station Equipment in existing Account 353,\109\ we note first that
Clean Energy Associations misstate the NOPR's proposed collector system
definition in Account 338.5.\110\ The NOPR's Account 338.5 definition
does not overlap with the definition of Account 353. As explained
above, we have revised the definitions in Accounts 338.26 and 387.5 to
align with the definition in Account 338.5 at Clean Energy
Associations' request.\111\ This change resolves the overlap with
Account 353 that concerned Clean Energy Associations. Equipment at and
beyond the substation serve transmission and distribution
interconnection functions and should accordingly be recorded in the
transmission and distribution accounts.
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\109\ Clean Energy Associations NOPR Comments at 10-11 (citing
NOPR proposed Accounts 338.5, 338.26, and 387.5; 18 CFR part 101,
Account 353).
\110\ Compare NOPR, proposed Account 338.5 (``This account shall
include all cost of cabling, junction boxes, connection cabinets,
and all facilities and devices (such as static capacitors) that are
used to transport and consolidate the power fed from individual
solar panels, once it has been stepped-up, to the substation prior
to interconnection to the grid.'') with Clean Energy Associations
NOPR Comments at 10-11 (quoting NOPR proposed Accounts 338.5,
338.26, and 387.5 text as: ``This account shall include all cost of
cabling, junction boxes, connection cabinets, and all facilities
that are installed beyond the high side of the GSU transformer and
the transmission or distribution point of interconnection.'').
\111\ See supra P 50; see also Clean Energy Associations NOPR
Comments at 11-12.
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[[Page 69303]]
58. Regarding Clean Energy Associations' request for clarification
on allocation of clearing and grading, permitting, and site civil
costs,\112\ we note that Electric Plant Instruction Nos. 3, 8(A), and
9(A) apply to all plant in service and have for several decades. We do
not intend to change application of these instructions in this docket.
We find the text of these instructions to be sufficient and do not
require modification.
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\112\ See Clean Energy Associations NOPR Comments at 15-17.
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59. We also adopt the NOPR's proposal to create O&M accounts to
support the new production subfunctions, but we consolidate the
specific accounts proposed in response to comments. We are persuaded by
Utility Associations' argument that the new generation subfunctions are
simpler, and less labor intensive to operate and maintain than steam
and nuclear generation, and that therefore the limited rate-setting
benefits of separating some of these costs are likely outweighed by the
additional burden they create.\113\ We believe that the accounts that
Utility Associations propose appropriately streamline the O&M accounts
while still providing for sufficient detail to meaningfully segregate
costs, as requested by Dominion.\114\ However, we are also persuaded by
Dominion's request to retain the miscellaneous maintenance expense
accounts to house expenses that do not clearly fall within other
specified accounts, and so create a miscellaneous expense account
alongside the others proposed by Utility Associations.
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\113\ See Utility Associations NOPR Comments at 7, app. A.
\114\ Dominion NOPR Comments at 3.
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60. As such, we create only those maintenance accounts recommended
by the Utility Associations,\115\ plus miscellaneous maintenance
expense accounts. We therefore also renumber the maintenance accounts.
For solar, these accounts will now be numbered as follows: Account
558.7 (Maintenance of Solar Panels, Structures, and Equipment (Major
only)), Account 558.8 (Maintenance of Computer Hardware (Major only)),
Account 558.9 (Maintenance of Computer Software (Major only)), Account
558.10 (Maintenance of Communication Equipment (Major only)), Account
558.11 (Maintenance of Miscellaneous Solar Generation Plant (Major
only)), and Account 558.12 (Maintenance of Solar Generation Plant
(Nonmajor only)). For wind, these accounts will now be numbered as
follows: Account 558.13 (Operation Supervision and Engineering),
Account 558.14 (Wind Turbine Generation and Other Plant Operating
Expenses (Major only)), Account 558.15 (Reserved), Account 558.16
(Rents), Account 558.17 (Operation Supplies and Expenses (Nonmajor
only)), Account 558.18 (Maintenance Supervision and Engineering (Major
only)), Account 558.19 (Maintenance of Wind Turbines, Structures, and
Equipment (Major only)), Account 558.20 (Maintenance of Computer
Hardware (Major only)), Account 558.21 (Maintenance of Computer
Software (Major only)), Account 558.22 (Maintenance of Communication
Equipment (Major only)), Account 558.23 (Maintenance of Miscellaneous
Wind Generation Plant (Major only)), and Account 558.24 (Maintenance of
Wind Generation Plant (Nonmajor only)).
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\115\ We correct the naming convention for the accounts for
maintenance of communication equipment to refer to ``communication
equipment'' rather than ``communications equipment,'' as proposed by
Utility Associations, consistent with references to communication
equipment accounts throughout this rule and the USofA.
---------------------------------------------------------------------------
61. In addition, in response to Clean Energy Associations' comment
regarding the appropriate function for the new O&M accounts,\116\ we
clarify that operations and maintenance costs are related to Plant
recorded to Production Accounts. Our note that collector systems are
distributive in design was intended to be illustrative of how these
systems operate and not to indicate that collector systems are part of
the Distribution Plant function.
---------------------------------------------------------------------------
\116\ See Clean Energy Associations NOPR Comments at 19.
---------------------------------------------------------------------------
62. Next, we address the subjects on which the NOPR requested
comment. We are persuaded by Utility Associations' comment that
retaining the ``Other Production'' account will preserve existing
flexibility for recording assets in the face of technological
change.\117\ We therefore retain the ``Other Production'' title for
this generation subfunction.
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\117\ See Utility Associations NOPR Comments at 7.
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63. In response to comments regarding accounting treatment for
tidal and wave resources,\118\ we have determined that, because these
resources do not fit well within the existing Hydraulic Production
subfunction, they should be placed within the new Other Renewable
subfunction. Accordingly, in this final rule we create an Other
Renewable Production subfunction instead of the NOPR's proposed Other
Non-Hydro Renewable Production subfunction.
---------------------------------------------------------------------------
\118\ Carl Pechman NOPR Comments at 3-4.
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64. Lastly, as for hydrogen, we agree with Utility Associations
that existing and proposed public utility accounts are sufficient for
current and anticipated uses of hydrogen as an electric fuel or energy
storage medium and that no new public utility accounts are therefore
needed.\119\ We reiterate that, for either electric generation or
energy storage, the recording and reporting of hydrogen specific fuel,
equipment, and operations and maintenance expenses should follow the
most appropriate account instructions for the function it is used to
fulfill.
---------------------------------------------------------------------------
\119\ Utility Associations Comments at 9.
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65. Finally, we will not at this time propose additional guidance
for electric utility hydrogen reporting or new natural gas pipeline
hydrogen accounts. We will consider the need for such additional
guidance and natural gas pipeline USofA revisions in separate
proceedings, as necessary.
B. Creation of Energy Storage Function and Accounts
1. NOPR
66. The Commission proposed a new USofA function for energy storage
in order to reduce recordkeeping, depreciation, and retirement burden
and opportunity for error deriving from energy storage reporting across
generation, transmission, and distribution functions.\120\ The
Commission proposed to structure the new Energy Storage Plant function
similar to those for other USofA functions, including the new wind,
solar, and other renewable subfunctions, as follows: (1) Account 387.1
(Land and Land Rights); (2) Account 387.2 (Structures and
Improvements); (3) Account 387.11 (Miscellaneous Energy Storage
Equipment); (4) Account 387.12 (Asset Retirement Costs for Energy
Storage); (5) Account 387.5 (Collector System); (6) Account 387.6
(Generator Step-up Transformers (GSU)); and (7) Account 387.7
(Inverters). The Commission also proposed to add a new Account 387.3
(Energy Storage Equipment), which would include the primary energy
storage equipment in this function as described in the proposed
instructions. In addition, the Commission proposed to create Energy
Storage function plant accounts for computer hardware, software, and
communication equipment, as described below.
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\120\ NOPR, 180 FERC ] 61,050 at PP 44, 48-49.
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67. The Commission further proposed to create an Energy Storage
Expense function within the Operation and Maintenance Expense Chart of
[[Page 69304]]
Accounts, including: (1) Account 577.1 (Operation Supervision and
Engineering); (2) Account 577.4 (Rents); (3) Account 577.5 (Operation
Supplies and Expenses (Nonmajor only)); (4) Account 578.1 (Maintenance
Supervision and Engineering (Major only)); (5) Account 578.2
(Maintenance of Structures (Major only)); (6) Account 578.4
(Maintenance of Collector Systems (Major only)); (7) Account 578.5
(Maintenance of Generator Step-up Transformers (Major only)); (8)
Account 578.6 (Maintenance of Inverter Expenses (Major only)); (9)
Account 578.10 (Maintenance of Miscellaneous Other Energy Storage Plant
(Major only)); (10) Account 578.11 (Maintenance of Other Energy Storage
Plant (Nonmajor only)); (11) Account 577.2 (Operation of Energy Storage
Equipment (Major only)); (12) Account 577.3 (Storage Fuel); and (13)
Account 578.3 (Maintenance of Energy Storage Equipment (Major only))
(as well as the computer hardware, software, and communication
equipment accounts described below).\121\ Lastly, the Commission
proposed reclassifying pumped storage to be recorded within the Energy
Storage function of the USofA rather than the Hydraulic Production
subfunction.
---------------------------------------------------------------------------
\121\ Id. PP 50-51.
---------------------------------------------------------------------------
2. Comments
68. Utility Associations and Clean Energy Associations support the
NOPR's proposal to establish a separate function for Energy
Storage.\122\ Utility Associations, however, propose three revisions
regarding Energy Storage related to functional reporting, O&M accounts,
and pumped storage.
---------------------------------------------------------------------------
\122\ Clean Energy Associations NOPR Comments at 5; Utility
Associations NOPR Comments at 11.
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69. First, Utility Associations request removal of subpart c from
Account 387.3, which would require accounting records to show monthly
functional activity of storage assets, as well as the NOPR's proposed
functional MWh reporting on pages 414-16 of Form No. 1.\123\ Utility
Associations argue that these requirements conflict with the goal that
motivated moving energy storage to a separate function--removing
burdensome requirements to track and frequently reclassify storage
assets based on changes in function.\124\ Rather, Utility Associations
recommend following Order No. 784's approach of allowing the accounting
for energy storage assets that serve more than one function to follow
the allocation decisions made in the relevant rate proceedings.
---------------------------------------------------------------------------
\123\ Utility Associations NOPR Comments at 11-12.
\124\ Id. at 11 (citing NOPR, 180 FERC ] 61,050 at P 45
(explaining that ``[b]y creating one new dedicated storage function,
utilities would no longer be required to track and frequently
reclassify storage assets based on changes in function, and thus,
after the initial burden to implement the changes proposed to be
adopted here, the continuing compliance burden would be
significantly reduced.'')).
---------------------------------------------------------------------------
70. Further, as for the renewables O&M accounts, Utility
Associations suggest that, given the relative simplicity of energy
storage operations and maintenance, the Commission should limit the
energy storage O&M accounts to those listed in Appendix A to their
comments.\125\
---------------------------------------------------------------------------
\125\ Id. at 13, app. A.
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71. Lastly, Utility Associations recommend against reclassifying
pumped storage assets to the new Energy Storage function.\126\ Utility
Associations explain that pumped storage is not a new technology and
fits more naturally within existing hydroelectric generation accounts
given similarities in the lives of the facilities, permitting
processes, engineering, operation, and staffing.
---------------------------------------------------------------------------
\126\ Id. at 13.
---------------------------------------------------------------------------
3. Commission Determination
72. We adopt the NOPR's proposal to establish a separate function
for Energy Storage, with a few revisions, discussed below.
73. We agree with Utility Associations that the proposed
instructions to subpart c of Account 387.3 and the associated reporting
on pages 414-16 of the FERC Form No. 1 are needlessly burdensome and
contrary to the purpose of this final rule, and thus remove them.\127\
---------------------------------------------------------------------------
\127\ See id. at 11-12.
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74. We are also again persuaded by Utility Associations to
consolidate the list of O&M accounts that we create for energy storage
given the comparative operational simplicity of storage systems,\128\
similar to our consolidation of the renewable production O&M
accounts.\129\ However, we add a miscellaneous maintenance account to
the list proposed by Utility Associations. The new accounts will now be
as follows: Account 578.2 (Maintenance of Energy Storage Equipment and
Structures (Major only)), Account 578.3 (Maintenance of Computer
Hardware (Major only)), Account 578.4 (Maintenance of Computer Software
(Major only)), Account 578.5 (Maintenance of Communication Equipment
(Major only)), Account 578.6 (Maintenance of Miscellaneous Other Energy
Storage Plant (Major only)), and Account 578.7 (Maintenance of Other
Energy Storage Plant (Nonmajor only)).
---------------------------------------------------------------------------
\128\ Again we correct the naming convention for the account for
maintenance of communication equipment to refer to ``communication
equipment'' rather than ``communications equipment,'' as proposed by
Utility Associations, consistent with references to communication
equipment accounts throughout this rule and the USofA.
\129\ See Utility Associations NOPR Comments at 13.
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75. Last, we are persuaded by Utility Associations' request not to
reclassify pumped storage assets to the new Energy Storage
function.\130\ We agree with Utility Associations that pumped storage
assets better fit within existing hydroelectric production accounts
given the nature of these assets. This decision is particularly
reasonable given our prior decision to streamline the Energy Storage
function O&M accounts that we otherwise create in this final rule--the
hydroelectric O&M accounts are better tailored to the relative
complexity of operating and maintaining pumped storage assets.
---------------------------------------------------------------------------
\130\ See id.
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C. Accounting Treatment for Renewable Energy Credits
1. NOPR
76. The Commission proposed a number of USofA revisions to codify
treatment of RECs.\131\ The Commission proposed to retitle General
Instruction No. 21 (Allowances) to Allowances and Renewable Energy
Credits (RECs), and to update the instruction to include REC reporting
and correct typos. These proposed revisions include: (1) proposing to
remove the reference to the Clean Air Act in Part A to make the
instruction less restrictive and adding reference to the proposed new
accounts described below; (2) moving the last sentence of Part A to the
beginning of Part B; (3) amending Parts A and C to refer to historical
cost to make the instruction consistent with other existing regulatory
text in the USofA; \132\ (4) correcting Part D to remove an erroneous
repeated reference to ``from inventory''; (5) updating the text in Part
E to include references to RECs in addition to allowances and in Part F
to clarify the inventory accounting for RECs; (6) replacing the
language included in existing Part G with language that would instead
provide guidance for cases in which allowances and RECs may be
considered as prepayments; (7) moving the existing language in Part G
addressing penalties to Part H, and removing the reference to the EPA
to make the instruction applicable to similar items created by
[[Page 69305]]
other regulatory bodies; (8) moving and updating the existing language
in Part H to a newly proposed Part I that would address gains and
losses on dispositions of allowances and RECs; and (9) adding a new
Part J that would address the revenues for RECs associated with the
sale of energy.
---------------------------------------------------------------------------
\131\ NOPR, 180 FERC ] 61,050 at P 52.
\132\ 18 CFR part 101, General Instruction No. 21 (Allowances).
---------------------------------------------------------------------------
77. Similarly, the Commission proposed to revise the text to
Accounts 158.1 (Allowance Inventory) and 158.2 (Allowances Withheld) to
remove references to the Environmental Protection Agency, to reference
historical cost, and to include a new note to address prepayments in
accordance with the proposed text in General Instruction No. 21.\133\
The Commission also proposed to renumber Account 509 (Allowances) to
Account 509.1, delete the reference to sulfur dioxide in that account,
and create for RECs two new inventory accounts and, under the Steam
Power Generation subfunction, two new expense accounts: Account 158.3
(Bundled Renewable Energy Credits Inventory), Account 158.4 (Unbundled
Renewable Energy Credits Inventory), Account 509.2 (Bundled Renewable
Energy Credits), and Account 509.3 (Unbundled Renewable Energy
Credits).\134\ And, consistent with the newly proposed instructions in
Part I of General Instruction No. 21, the Commission proposed to add
Account 411.11 (Gains from the Disposition of RECs) and Account 411.12
(Losses from the Disposition of RECs). Last, the Commission clarified
that the Commission considered RECs to be inventory, and noted that
Commission accounting and reporting regulations trump conflicting
regulations by other accounting authorities.
---------------------------------------------------------------------------
\133\ NOPR, 180 FERC ] 61,050 at PP 53-57.
\134\ We use the term ``bundled'' to convey that the RECs are
sold with their associated energy, and the term ``unbundled'' to
convey that the RECs are sold separately from the energy.
---------------------------------------------------------------------------
2. Comments
78. Five parties commented on the NOPR's proposal to codify
accounting treatment for RECs. These comments address: (1) the need for
revisions or additional accounts to capture information on a broader
range of credit mechanisms; (2) placement of REC expense accounts
within the USofA; (3) interaction with REC treatment by other governing
bodies; and (4) timing questions related to implementation, recovery,
and REC expiration. RESA notes the similarities between the NOPR's REC
proposals and those recommended by RESA in emphasizing its support for
the NOPR overall.\135\ PG&E and SDG&E, Utility Associations, and
Dominion, however, suggest that the Commission host a technical
conference on REC accounting treatment to ensure workability in light
of the diversity of REC instruments.\136\
---------------------------------------------------------------------------
\135\ RESA NOPR Comments at 5.
\136\ Dominion NOPR Comments at 4-5; PG&E and SDG&E NOPR
Comments at 1, 2, 5; Utility Associations NOPR Comments at 18.
---------------------------------------------------------------------------
79. Utility Associations and Carl Pechman request revisions to the
NOPR's proposals to capture data on utilities' investments in a broader
range of environmental credit mechanisms. Utility Associations argue
that the proposed retitling of General Instruction No. 21 to Allowances
and Renewable Energy Credits and corresponding changes to the text of
the instruction and related accounts do not fully reflect the scope of
developments in the industry.\137\ Rather, Utility Associations
recommend that the Commission extend the provisions of the USofA to
consider a broader variety of environmental credits that are either
used to: (1) avoid or reduce greenhouse gas emissions to the
atmosphere; or (2) convey environmental attributes of renewable
electricity generation. Utility Associations also suggest that the
Commission could use a proposed technical conference to further
identify underlying characteristics of these types of instruments that,
if met, would qualify for accounting in the same manner as allowances
and RECs. Carl Pechman echoes this request, suggesting broadening new
account definitions to incorporate Zero Emissions Credits (ZEC) and
carbon offsets.\138\
---------------------------------------------------------------------------
\137\ Utility Associations NOPR Comments at 19-20.
\138\ Carl Pechman NOPR Comments at 1, 4.
---------------------------------------------------------------------------
80. Carl Pechman further questions the NOPR's proposal to create a
single category for ``allowances'' without more detail.\139\ Carl
Pechman suggests accounting for such allowances together without
distinction misses an opportunity to make valuable data about utility
investments in diverse environmental credits available to Public
Utility Commissions and other interested stakeholders.
---------------------------------------------------------------------------
\139\ Id. at 6-9.
---------------------------------------------------------------------------
81. Utility Associations also question the placement of the new
Allowance expense accounts within the USofA.\140\ They recommend that
the Commission place the new Allowances account within the Other Power
Supply expense subfunction rather than within the Steam Power
Generation subfunction. Utility Associations explain that, because
RECs, unlike sulfur dioxide allowances, typically do not derive from
steam power generation, the Steam Power Generation subfunction is not
an appropriate place for those costs to be reported.
---------------------------------------------------------------------------
\140\ Utility Associations NOPR Comments at 20-21.
---------------------------------------------------------------------------
82. In addition, some commenters voice concerns about alignment
between the NOPR's REC accounting treatment and that of other
regulatory bodies. First, several commenters urge the Commission to
consider the Financial Accounting Standards Board's ongoing work to
address the underlying economic and accounting issues associated with
RECs (and other similar instruments) before issuing any final rule or
guidance.\141\ Utility Associations further advocate for the Commission
to strive to align the final rule's requirements and Generally Accepted
Accounting Principles (GAAP), to the extent possible, to avoid costs of
dual recordkeeping.\142\
---------------------------------------------------------------------------
\141\ Carl Pechman NOPR Comments at 9; PG&E and SDG&E NOPR
Comments at 1; Utility Associations NOPR Comments at 18-19.
\142\ Utility Associations NOPR Comments at 19.
---------------------------------------------------------------------------
83. These commenters also made several suggestions with respect to
state ratemaking processes. First, PG&E and SDG&E request that the
Commission's general instructions concerning REC reporting under the
USofA explicitly clarify that RECs recorded to any FERC account are not
intended to impact the retail rates of public utilities.\143\ In
addition, PG&E and SDG&E request the Commission to explicitly consider
instances where regulatory recovery occurs at the time of renewable
electric energy production, and reconsider its decision in Order No.
552 precluding the use of inventory methods in Commission filings that
reflect the effects of the ratemaking treatment granted by state
commissions.\144\ PG&E and SDG&E and Utility Associations argue that,
where the cost of the REC is bundled with electric energy and recovery
from retail customers at the time of renewable electricity energy
generation, the Commission should allow the entity to charge the full
cost of the bundled product to Account 555 (Purchased Power) at the
time of energy usage.\145\ Commenters argue that doing so is necessary
to ensure that accounting reflects the economic effects of the state
ratemaking treatment and that the revenue and expense associated with
the RECs match.
---------------------------------------------------------------------------
\143\ PG&E and SDG&E NOPR Comments at 2-5.
\144\ Id. at 5.
\145\ Id.; Utility Associations NOPR Comments at 22-23.
---------------------------------------------------------------------------
84. Further, Utility Associations and Dominion comment on the
treatment of expired RECs. Utility Associations request specific
guidance on how to report expired RECs that are no longer
[[Page 69306]]
eligible to be used to comply with the applicable renewable energy
standard for which they were initially created.\146\ They recommend
that expired RECs be recorded in Account 411.12, Losses from
Disposition of RECs. Dominion emphasizes that RECs may be created or
purchased for reasons unrelated to compliance with a specific renewable
energy standard, and therefore requests that the Commission adopt an
expired RECs definition flexible enough to account for potential REC
benefits aside from renewable energy standard application.\147\
---------------------------------------------------------------------------
\146\ Utility Associations NOPR Comments at 21-22.
\147\ Dominion NOPR Comments at 4.
---------------------------------------------------------------------------
85. Utility Associations are also concerned about the flexibility
of the NOPR's proposed REC accounting treatment as applied to REC
valuation methodologies. Utility Associations worry that the NOPR's
proposal to account for RECs as inventory and the issuance of RECs from
inventory on a vintage basis using a monthly weighted average of
historical cost determination risks mismatch with the variety of REC
markets and treatment.\148\ Therefore, Utility Associations advocate
for the Commission to allow for more flexibility in valuation method to
align the Commission's accounting requirements with compliance
requirements, business practices, and retail ratemaking treatments.
---------------------------------------------------------------------------
\148\ Utility Associations NOPR Comments at 21.
---------------------------------------------------------------------------
86. Lastly, noting the diversity in current accounting practices
and ratemaking treatment for RECs and other similar instruments across
the utility industry, Utility Associations recommend prospective
adoption of any final rule or accounting guidance related to RECs in
order to allow for an adequate transition period for utilities.\149\
Such prospective adoption would, according to Utility Associations,
ensure utilities' existing accounting and reporting treatment continues
to align with their current ratemaking treatment, while also providing
utilities time to transition operational and accounting practices for
future impacts on ratemaking and avoiding unnecessary additional cost
and complexity.
---------------------------------------------------------------------------
\149\ Id. at 20.
---------------------------------------------------------------------------
3. Commission Determination
87. We adopt the NOPR's proposal to codify accounting and reporting
treatment for RECs, with a few revisions, discussed below.
88. Despite several commenters' requests,\150\ we decline to host a
technical conference on REC treatment implementation. We note that the
majority of REC comments received on the NOPR do not conflict with the
NOPR's proposed REC accounting treatment but rather relate to
practicalities of rule implementation and matters outside the area of
accounting and reporting. This rule addresses those comments that
require deviation from the NOPR's proposals, specifically by broadening
relevant instructions in the USofA and creating accounts to accommodate
all types of environmental credits. Any accounting and reporting
questions that public utilities may have after the issuance of this
final rule can be directed to the Commission's Chief Accountant seeking
informal or formal accounting guidance in a separate docket.
---------------------------------------------------------------------------
\150\ See Dominion NOPR Comments at 4-5; PG&E and SDG&E NOPR
Comments at 1, 2, 5; Utility Associations NOPR Comments at 18.
---------------------------------------------------------------------------
89. As noted above, we make a few amendments to the NOPR's proposed
accounting treatment for RECs. First, in response to Utility
Associations' and Carl Pechman's concerns about inclusion of other non-
REC environmental items,\151\ we have decided to update the name of the
proposed Renewable Energy Credit accounts to ``Environmental Credits.''
This retitling will clarify that these accounts are for all types of
environmental credits, including ZECs and other allowances, and not
just those classified as RECs. These accounts will provide for the
recording of any type of environmental credit and allow companies to
maintain granularity as needed (e.g., by designating subaccounts or
other codes for different types of environmental credits unique to
their operations).
---------------------------------------------------------------------------
\151\ Carl Pechman NOPR Comments at 1, 4; Utility Associations
NOPR Comments at 19-20.
---------------------------------------------------------------------------
90. However, we decline to make additional granular accounting
mandatory, as Carl Pechman requests.\152\ Such additional granularity
is not necessary. The USofA is a standard framework on which a
utility's accounting system is to be based in order to support the
Commission's statutory responsibilities. However, utilities are not
precluded from tailoring their accounting systems to their own needs,
which is a standard practice, by using subaccounts or other codes to
track more granular detail for managerial or additional regulatory
purposes. Therefore, we adopt the NOPR's proposed changes to General
Instruction No. 21.
---------------------------------------------------------------------------
\152\ Carl Pechman NOPR Comments at 6-9.
---------------------------------------------------------------------------
91. Next, we are persuaded by Utility Associations' request to
place the expense accounts for Environmental Credits in the Other Power
Supply expenses sub-function rather than the Steam Generation
subfunction.\153\ We agree that, because environmental credits are not
generally the product of steam generation, their expenses do not belong
in the Steam Generation subfunction. We have accordingly renamed and
renumbered these accounts to Account 555.2 (Bundled Environmental
Credits) and Account 555.3 (Unbundled Environmental Credits).
---------------------------------------------------------------------------
\153\ See Utility Associations NOPR Comments at 20-21.
---------------------------------------------------------------------------
92. The other concerns raised by commenters relate to
implementation practicalities rather than the NOPR's proposed
accounting treatment itself. We believe that this final rule provides
sufficient clarification to address these concerns. However, if any
concerns remain, they can be addressed through subsequent informal or
formal accounting guidance issued by the Commission's Chief Accountant.
93. The first set of these implementation concerns relates to the
potential for inconsistency between Commission accounting treatment and
that employed by other regulatory bodies.\154\ These concerns seem to
derive primarily from the NOPR's proposal to treat RECs as inventory.
---------------------------------------------------------------------------
\154\ See id. at 18-19; Carl Pechman NOPR Comments at 9; PG&E
and SDG&E NOPR Comments at 1.
---------------------------------------------------------------------------
94. Our decision to treat environmental credits as inventory is
consistent with the Commission's long-standing policy, first stated in
Order No. 552, of treating emission allowances as inventory, which the
Commission has since extended to other environmental credits. Moreover,
the primary purpose of our accounting rules is to facilitate ratemaking
processes, not necessarily to align with other regulators' accounting
practices, which may be designed to serve different objectives.
Environmental credits, like allowances, are government-created
tradeable property rights designed to promote environmental objectives
that store value and are often utilized in a period other than that in
which they are acquired. In this sense, environmental credits operate
for utilities as an inventoriable asset similar to the value of assets
recorded in Account 151 (Fuel Stock (Major Only)), or Account 154
(Plant Materials and Operating Supplies). Generally, if another
[[Page 69307]]
accounting authority's treatment conflicts with the accounting and
financial reporting needed by the Commission to fulfill its statutory
responsibilities, then the Commission's accounting and reporting
regulations prevail.\155\ Finally, while this rule directs utilities to
treat environmental credits as inventory, we recognize that there may
be situations in which utilities have different accounting or rate
treatment as required by their state or other regulatory bodies.
Utilities can record regulatory assets or liabilities to record any
differences between accounting and ratemaking treatment, or maintain
separate records to accommodate the accounting treatment required by
the different regulatory bodies (though, as for any tariff-driven
deviation from standard accounting and FERC Form instructions,
utilities must disclose such alternative accounting in their FERC Form
reports). We also clarify, in response to PG&E and SDG&E's
request,\156\ the accounting in this rulemaking is not intended to
impact retail rates, as indicated above.
---------------------------------------------------------------------------
\155\ See Order No. 552, FERC Stats. & Regs. ] 30,967 at 30,801
(``If GAAP conflicts with the accounting and financial reporting
needed by the Commission to fulfill its statutory responsibilities,
then GAAP must yield. GAAP cannot control when it would prevent the
Commission from carrying out its duty to provide jurisdictional
companies with the opportunity to earn a fair return on their
investment and to protect ratepayers from excessive charges and
discriminatory treatment.'').
\156\ PG&E and SDG&E NOPR Comments at 2-5.
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95. Next, we turn to commenters' various timing concerns. We are
unpersuaded by Utility Associations' and PG&E and SDG&E's concerns
about how to report bundled REC costs that are recovered from retail
customers at the time of renewable electricity energy generation.\157\
Existing regulatory accounts are readily available when costs incurred
in one ratemaking period need to be recovered or expensed in
another.\158\ Changes to the NOPR's accounting proposal are therefore
not needed to address these concerns.
---------------------------------------------------------------------------
\157\ Id. at 5; Utility Associations NOPR Comments at 22-23.
\158\ See, e.g., Account 182.3 (Other Regulatory Assets) and
Account 254 (Other Regulatory Liabilities). These regulatory
accounts are designated for amounts that are probable to be included
in a different period for purposes of developing the rates.
---------------------------------------------------------------------------
96. As for Utility Associations' concerns about where to record
expired RECs,\159\ we agree that expired RECs should be recorded in new
Account 411.12 (Losses from Disposition of Environmental Credits). This
treatment is consistent with the new General Instruction No. 21
Allowances and Environmental Credits, Part I. Similarly, in response to
Dominion's concerns about the non-statutory use of expired RECs,\160\
we note that General Instruction No. 21, Part I, indicates that losses
on speculative trading should be recorded in Account 426.5 (Other
Deductions). As such, no further revision to the accounting treatment
for environmental credits is warranted to address recording of expired
RECs.
---------------------------------------------------------------------------
\159\ See Utility Associations NOPR Comments at 21-22.
\160\ Dominion NOPR Comments at 4
---------------------------------------------------------------------------
97. Regarding Utility Associations' inventory valuation
concerns,\161\ we note that our preference for weighted average cost
has been in place for Allowances since Order No. 552, which the
Commission has consistently applied to environmental credits in the
decades since. However, we emphasize again that if specific state law
or tariff provisions require utilities to use a different inventory
method, the economic reality of the transaction governs, with
divergence from standard practice noted and explained in the FERC Form
Nos. 1 and 3-Q disclosures.
---------------------------------------------------------------------------
\161\ Utility Associations NOPR Comments at 21.
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98. Lastly, we clarify for Utility Associations that, as for all
final rules, this final rule will apply only prospectively and will
allow utilities an adequate transition period, as discussed further
below.\162\
---------------------------------------------------------------------------
\162\ See id. at 20.
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D. Creation of Computer Hardware, Software, and Communication Equipment
Accounts
1. NOPR
99. The Commission proposed new accounts in each function and
subfunction for computer hardware, software, and communication
equipment.\163\ The USofA was updated in 2005 to include accounts for
recording computer hardware, software, and communication equipment
owned by regional transmission organizations (RTO), but did not create
comparable accounts for non-RTO public utilities and licensees to
report these types of assets.\164\ Consequently, non-RTO public
utilities do not record computer hardware, software, and communication
equipment uniformly, with many utilities recording these assets in
general accounts (e.g., Account 303 (Miscellaneous Intangible Plant)
and Account 391 (Office Furniture and Equipment)). To eliminate
ambiguity and ensure greater consistency and transparency in accounting
and reporting, the Commission proposed including computer hardware,
software, and communication equipment accounts in each different
functional area, including the general function.
---------------------------------------------------------------------------
\163\ NOPR, 180 FERC ] 61,050 at P 58.
\164\ Accounting & Financial Reporting for Public Utilities
Including RTOs, Order No. 668, 70 FR 77627 (Dec. 30, 2005), FERC
Stats. & Regs ] 31,199 (2005) (cross-referenced at 113 FERC ]
61,276), rehearing denied, Order No. 668-A, 71 FR 28513 (May 16,
2006), 115 FERC ] 61,080 (2006).
---------------------------------------------------------------------------
100. The Commission proposed to add three plant accounts and three
maintenance accounts to all functions and subfunctions that currently
lack them, including the new Renewable Generation subfunctions and the
new Energy Storage function.\165\ These accounts are: Accounts 315.1,
324.1, 334.1, 338.9, 338.30, 339.9, 345.1, 351.1, 363.1, 387.8, and
397.1 (Computer Hardware); Accounts 315.2, 324.2, 334.2, 338.10,
338.31, 339.10, 345.2, 351.2, 363.2, 387.9, and 397.2 (Computer
Software); Accounts 315.3, 324.3, 334.3, 338.11, 338.32, 339.11, 345.3,
351.3, 363.3, 387.10, and 397.3 (Communication Equipment); Accounts
513.1, 531.1, 544.1, 553.1, 558.13, 558.33, 559.12, 578.7, 592.2, and
935.1 (Maintenance of Computer Hardware (Major only)); Accounts 513.2,
531.2, 544.2, 553.2, 558.14, 558.34, 559.13, 578.8, 592.3, 935.2
(Maintenance of Computer Software (Major only)); and Accounts 513.3,
531.3, 544.3, 553.3, 558.15, 558.35, 559.14, 578.9, 592.4, 935.3
(Maintenance of Communication Equipment (Major only)). The Commission
added (Major only) to the account names for existing Transmission
Expenses Maintenance Accounts 569.1, 569.2, 569.3, consistent with the
proposed accounts. Because the RTO function only exists for RTOs and
independent system operators, the Commission did not propose this
designation on its accounts (i.e., Accounts 576.2, 576.3, and 576.4).
These accounts have the same descriptions, instructions, and items as
the existing RTO and Transmission function accounts of the same title.
---------------------------------------------------------------------------
\165\ NOPR, 180 FERC ] 61,050 at P 59.
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101. The Commission also proposed adding a new Electric Plant
Instruction No. 17, Integrated computer hardware, software, and
communication equipment.\166\ The instruction explained that where
computer hardware, software, and communication equipment is integrated
as part of a larger retirement unit, it shall be recorded in the
property account of the retirement unit purchased. It further clarified
that, if this computer hardware, software, or communication equipment
is not integrated, Plant Instruction No. 10 should be followed.
---------------------------------------------------------------------------
\166\ Id. P 60.
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102. Lastly, the Commission sought comment on whether the
Commission should also create computer hardware,
[[Page 69308]]
software, and communication accounts for natural gas pipelines, oil
pipelines, and centralized service companies.\167\
---------------------------------------------------------------------------
\167\ Id. P 61.
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2. Comments
103. Dominion, Clean Energy Associations, and Utility Associations
commented on the NOPR's proposal to create new accounts within existing
functions for computer hardware, software, and communication equipment.
Dominion and Utility Associations appear to conditionally support the
NOPR's proposals, with some requested revisions, while Clean Energy
Associations oppose them.\168\
---------------------------------------------------------------------------
\168\ See Clean Energy Associations NOPR Comments at 14-15;
Dominion NOPR Comments at 3; Utility Associations NOPR Comments at
14.
---------------------------------------------------------------------------
104. Clean Energy Associations question whether the proposed
accounts are warranted, alleging that they will add administrative
burden with few expected benefits.\169\ Clean Energy Associations
suggest that these costs could better be recorded to Other Accessory
Electric Equipment. In the alternative, Clean Energy Associations
suggest that the Commission should confirm through accounting guidance
that the scheduled retirements approach that most utilities use for
non-structures and improvements related to General Plant may be used
for computer hardware, software, and communication equipment Production
accounts.
---------------------------------------------------------------------------
\169\ Clean Energy Associations NOPR Comments at 14-15.
---------------------------------------------------------------------------
105. Dominion, in contrast, supports the proposed changes regarding
computer hardware and communication equipment, but raises three
concerns regarding software accounting treatment.\170\ First, Dominion
believes that software should remain in Account 303 despite the
potential for some inconsistency in accounting and reporting of
computer software between functions. Second, because software is an
intangible asset and does not have a depreciable service life similar
to production plant, Dominion argues that it is more appropriate to
recognize the amortization of software in Account 404 (Limited Term
Plant Amortization) than Account 403 (Depreciation Expense). Third,
Dominion asserts that the NOPR's proposed accounting guidance conflicts
with recent guidance issued by the Commission's Chief Accountant
regarding cloud computing, and Dominion states that it agrees with the
guidance in that order.\171\ Last, Dominion argues that one function
having different instructions on how to handle software does not
warrant a change to all other functions and subfunctions.\172\ If
software is to be recorded to different functions, Dominion believes
that the Commission should issue guidance on how to account for
software that supports more than one function--specifically, whether to
use the General function or whether allocations to the functions are
required.
---------------------------------------------------------------------------
\170\ Dominion NOPR Comments at 3-4.
\171\ Id. at 4 (citing Guidance on Accounting for Implementation
Costs Incurred in a Cloud Computing Arrangement that is a Service
Contract, Docket No. AI20-1-000 (Dec. 20, 2019)).
\172\ Dominion NOPR Comments at 4.
---------------------------------------------------------------------------
106. Utility Associations also support creation of these new plant
accounts, and recommend that balance amounts for computer hardware,
software, and communication equipment that can be readily identified as
dedicated to a particular function be transferred to the new
accounts.\173\ However, Utility Associations note that these assets may
by nature share functionality, and even if not, it may be difficult to
determine that equipment supports a sole functional area. Where
computer hardware, software, or communication equipment is not clearly
dedicated to a sole function, Utility Associations suggest that it
should be recorded in General Plant.
---------------------------------------------------------------------------
\173\ Utility Associations NOPR Comments at 14.
---------------------------------------------------------------------------
107. In addition, Utility Associations make a number of comments on
specific proposed accounts. First, they suggest that the Commission
remove item 1 ``Personal Computers'' entirely or rename it ``Computers
and Similar Items'' to avoid implying that all personal computers must
be tracked functionally.\174\ Utility Associations explain that
personal computers are generally not tracked functionally due to their
short lives, low cost, and frequent transfer among personnel supporting
different functional operations. Eliminating or broadening the item
would mitigate the large, disproportionate burden that functional
tracking of personal computers would require. Next, Utility
Associations recommend allowing utilities to use Accounts 356, 358,
365, and 367 to record fiber optic cable used for transmission and
distribution purposes. Utility Associations explain that fiber optic
cable provides protective capabilities (shield and grounding, vibration
and cable failure detection) and, when used for transmission and
distribution, has a longer life than other communication devices more
consistent with traditional overhead and underground conductors and
devices. Therefore, Utility Associations argue that retaining the
ability to continue to record fiber optic cable to plant Accounts 356,
358, 365 and 367 better aligns depreciation to its appropriate life
span. Last, Utility Associations recommend that the Commission's Chief
Accountant amend Accounting Release No. 15, Vintage Year Accounting for
General Plant Accounts (AR-15), to allow public utilities currently
applying the principles of AR-15 to vintaged General Plant accounts for
computer hardware and communication equipment to continue that practice
for assets that will now be accounted for in the new functional
accounts. Utility Associations explain that this amendment will allow
utilities to continue to record ``auto-retirements'' of assets that are
fully amortized and eliminate the need to track small individual items
of property.
---------------------------------------------------------------------------
\174\ Id. at 14-17.
---------------------------------------------------------------------------
108. Utility Associations and Dominion also responded to the NOPR's
request for comment on the need to create computer hardware, software,
and communication equipment accounts in the USofA for centralized
service companies. Utility Associations recommend adding computer
hardware, software, and communication accounts to the USofA and FERC
Form No. 60 for centralized service companies to better align their
reporting with associated operating companies.\175\ Dominion also
requests that if software is to be recorded to the different functions,
the Commission should issue guidance on how centralized service
companies should account for software that supports more than one
function--that is, whether the use of the General function would be
appropriate or whether allocations to the functions are required.\176\
---------------------------------------------------------------------------
\175\ Id. at 18.
\176\ Dominion NOPR Comments at 4.
---------------------------------------------------------------------------
109. LEPA responded to the NOPR's request for comment on the need
to create computer hardware, software, and communication equipment
accounts in the USofA for oil pipelines. LEPA opposes creation of such
new accounts for oil pipelines, arguing that doing so would create
needless burdens for oil pipelines that would far outweigh any
perceived benefit.\177\
---------------------------------------------------------------------------
\177\ LEPA NOPR Comments at 2-4.
---------------------------------------------------------------------------
3. Commission Determination
110. We adopt the NOPR's proposal to create new accounts for
computer hardware, software, and communication equipment within
existing functions that do not already include them.
111. Several commenters questioned whether it is necessary or
warranted to create these new accounts, in all or in
[[Page 69309]]
part.\178\ First, we disagree with Clean Energy Associations and
Dominion that these new accounts are not warranted.\179\ We recognize
that creating these new accounts may create initial implementation
burden for utilities, but we find that separate functional
classification of such costs is necessary to improve uniformity,
consistency, and transparency in accounting and reporting of such
assets and related activities, and to better inform the ratemaking
process. Additionally, to address the Utility Associations' comment
regarding transfer of existing balance amounts for computer hardware,
software, and communication equipment,\180\ we clarify that if
utilities cannot readily identify functional level of detailed balances
of plant with associated accumulated depreciation, such balances may
reside in the accounts initially used by the utilities.
---------------------------------------------------------------------------
\178\ See Clean Energy Associations NOPR Comments at 14-15;
Dominion NOPR Comments at 3-4; Utility Associations NOPR Comments at
14-17.
\179\ See Clean Energy Associations NOPR Comments at 14-15;
Dominion NOPR Comments at 4 (arguing that one function having
different instructions on how to handle software does not warrant a
change to all other functions and subfunctions).
\180\ See Utility Associations NOPR Comments at 14.
---------------------------------------------------------------------------
112. We also disagree with Dominion's suggestion that software
should remain in Account 303 as provided in the prior guidance on cloud
computing issued by the Commission's Chief Accountant in Docket No.
AI20-1-000.\181\ This guidance was consistent with then-available
accounts within the USofA. In this prior accounting guidance, the
Commission's Chief Accountant specifically stated that utilities should
record implementation costs for cloud computing in Account 303
``provided such costs are not specifically provided for in other
utility plant accounts.'' \182\ In the instant rulemaking, the
Commission now provides functional plant accounts specifically
designated for software, therefore superseding the prior accounting
guidance in Docket No. AI20-1-000. As such, we also reject Dominion's
request to provide for amortization of software in Account 404,\183\
and instead direct utilities to record associated depreciation expense
to Account 403, which includes depreciation for all classes of
depreciable electric plant. We also clarify that where software
supports more than one function, it can be recorded to Account 397.2
(General Plant Software).
---------------------------------------------------------------------------
\181\ See Dominion NOPR Comments at 3-4.
\182\ Guidance on Accounting for Implementation Costs Incurred
in a Cloud Computing Arrangement that is a Service Contract, Docket
No. AI20-1-000, at 3 (Dec. 20, 2019) (emphasis added).
\183\ See Dominion NOPR Comments at 3-4.
---------------------------------------------------------------------------
113. To address Utility Associations' comments about computer
hardware, software, and communication equipment that serves multiple
functions,\184\ we clarify that utilities may record such assets based
on the assets' predominant use or function, or, alternatively, in the
new General Plant accounts. Concerning Utility Associations' comment
related to personal computers,\185\ we clarify that account lists are
illustrative and not prescriptive; personal computers should therefore
only be recorded in the functional computer accounts if the specific
computer's retirement unit serves that predominant function, such as
one issued to a transmission or distribution line worker. In the case
of personal computers that are mostly used by employees for general
purposes, such computers can be recorded in the new General Plant
account.
---------------------------------------------------------------------------
\184\ See Utility Associations NOPR Comments at 14-17.
\185\ See id.
---------------------------------------------------------------------------
114. To address Utility Associations' comment about fiber optic
cables,\186\ we note that the recording of fiber optic cables should
follow the same classification criteria as discussed above, and be
recorded based on their purpose and function. For example, fiber optic
cables used as communication equipment should be recorded in the new
functional accounts for communication equipment.
---------------------------------------------------------------------------
\186\ See id. at 15-17.
---------------------------------------------------------------------------
115. To address Utility Associations'\187\ and Clean Energy
Associations'\188\ comments related to the application of vintage
accounting as discussed in AR-15, we note that vintage accounting is
the same as scheduled retirements approach. The appropriateness of
vintage depreciation is considered on a case-by-case basis within
depreciation rate case proceedings.
---------------------------------------------------------------------------
\187\ Id.
\188\ Clean Energy Associations NOPR Comments at 15.
---------------------------------------------------------------------------
116. Finally, we note Utility Associations and Dominion's comments
requesting new accounts or guidance for centralized service companies
\189\ and LEPA's comments opposing creation of such accounts for oil
pipelines.\190\ We will consider whether future guidance or amendments
to the USofAs for centralized service companies and natural gas
companies are warranted.
---------------------------------------------------------------------------
\189\ See Dominion NOPR Comments at 3; Utility Associations NOPR
Comments at 18.
\190\ LEPA NOPR Comments at 2-4.
---------------------------------------------------------------------------
E. Reporting
1. NOPR
117. To accommodate the proposed changes to the USofA explained
above, the Commission proposed to amend FERC Form Nos. 1, 1-F, and 3-Q
(electric) to include the new subfunctions for Wind, Solar, and Other
Non-Hydro Renewable as well as a new Energy Storage function within the
plant and operations and maintenance expense sections of the forms,
including the schedules for depreciation.\191\ Each subfunction and
function would include the accounts as described above. The currently
existing functional accounts for energy storage would be removed
(Accounts 348, 351, 363, 548.1, 562.1, 570.1, and 584.1) or replaced
(Accounts 553.1 and 592.2).
---------------------------------------------------------------------------
\191\ NOPR, 180 FERC ] 61,050 at P 62, App. B: FERC Form Nos. 1/
1-F at 204-207, 219, 321-322, FERC Form No. 1 at 227, 336, 352, 354,
401a, FERC Form No. 1-F at 21, 24, FERC Form No. 3-Q (electric) at
208, 324a, 324b.
---------------------------------------------------------------------------
118. The proposed reporting changes to FERC Form Nos. 1, 1-F, and
3-Q (electric) would result in changes to centralized service company
reporting in FERC Form No. 60, Schedule XVI--Analysis of Charges for
Service--Associate and Non-Associate Companies, because the FERC Form
No. 60 summarizes the functional and sub-functional O&M accounts
detailed in FERC Form Nos. 1, 1-F, and 3-Q (electric).\192\ As such,
these proposed changes to FERC Form No. 60 consist of new rows for the
summarized totals of the proposed new Energy Storage function and
Generation sub-functions O&M accounts.
---------------------------------------------------------------------------
\192\ Id. at P 63, App. B: FERC Form No. 60 at 304-305a.
---------------------------------------------------------------------------
119. The Commission also proposed to amend FERC Form Nos. 1, 1-F,
and 3-Q (electric) to include RECs as part of the instructions and
titles wherever allowances are discussed.\193\ Further, it proposed to
consolidate inputs for both sulfur dioxide and nitrogen oxides
(NOX) in the existing Allowances schedule,\194\ to include
inputs for both bundled and unbundled RECs, and to amend the related
title for Account 509 to read as Account 509.1.\195\ The Commission
proposed to add separate gain and loss accounts to the statement of
income for RECs.\196\
---------------------------------------------------------------------------
\193\ Id. at P 64, App. B: FERC Form Nos. 1/1-F at 320, FERC
Form No. 1 at 2, 110-111, 120-121, 228a, 229a, FERC Form No. 1-F at
4, 10-11, 15-16.
\194\ Id. at App. B: FERC Form No. 1 at 228a-229a amended, pages
228b-229b deleted.
\195\ Id. at App. B: FERC Form Nos. 1/1-F at 320, FERC Form No.
1-F at 15.
\196\ Id. at App. B: FERC Form Nos. 1/3-Q (electric) at 114,
FERC Form No. 1-F at 6.
---------------------------------------------------------------------------
[[Page 69310]]
120. The Commission further proposed to amend FERC Form Nos. 1, 1-
F, and 3-Q (electric) to include new plant and maintenance expense
accounts for computer hardware, software, and communication equipment
within all functions and subfunctions (including the general
function).\197\ In the Depreciation and Amortization of Electric Plant
schedule section B (Basis for Amortization Charges), the Commission
proposed to eliminate the first two sentences and the word software
from the third sentence as these clauses would no longer be applicable
to software.\198\
---------------------------------------------------------------------------
\197\ Id. at P 65, App. B: FERC Form Nos. 1/1-F at 204-207, 320-
323, FERC Form No. 3-Q (electric) at 325.
\198\ Id. at App. B: FERC Form No. 1 at 336.
---------------------------------------------------------------------------
121. Finally, the Commission proposed to consolidate the several
statistical pages for different classes of large production generators
into one statistical page to also include hydro and non-hydro
renewables.\199\ The Commission also proposed to amend the energy
storage statistical pages to remove references in the instructions and
columns related to cost functionalization.\200\
---------------------------------------------------------------------------
\199\ Id. at P 62, App. B: FERC Form No. 1 at 402-03 amended,
pages 406-07 deleted.
\200\ Id. at App. B: FERC Form No. 1 at 414-20.
---------------------------------------------------------------------------
2. Comments
122. Clean Energy Associations suggest that the NOPR's proposed
changes to the USofA and FERC Form No. 1 have the potential to increase
the burden on public utilities that are subject to the USofA
requirements, but clarify that if public utilities that are subject to
the USofA are supportive of the NOPR's proposed reporting changes, it
does not object to the additional requirements.\201\
---------------------------------------------------------------------------
\201\ Clean Energy Associations NOPR Comments at 3.
---------------------------------------------------------------------------
123. Utility Associations note that the NOPR proposed to combine
all large generating assets for FERC Form No. 1 reporting purposes into
one statistical page.\202\ Utility Associations recommend that the
Commission keep existing statistical plant pages 402-03 and 406-07
unchanged and instead add new pages for reporting large solar, wind,
and other non-hydro renewables larger than 10 MW. Utility Associations
argue that, because the vast majority of the reporting requirements on
the existing pages are not applicable to solar, wind, and other non-
hydro renewable generating assets, consolidating the information for
generating plant statistics on one page adds undue complexity that will
complicate preparation and review. In addition, echoing their comments
on the NOPR's energy storage provisions (that the functional MWh
reporting on pages 414-16 of FERC Form No. 1 contradict the NOPR's goal
in establishing a new storage function), Utility Associations recommend
that the Commission modify FERC Form No. 1 pages 414-16 to eliminate
columns d, e, and f, which show functional MWhs delivered.
---------------------------------------------------------------------------
\202\ Utility Associations NOPR Comments at 23-24.
---------------------------------------------------------------------------
124. Utility Associations also note a number of ministerial errors
in the NOPR related to reporting.\203\ Those errors include: (1)
proposed line 35.46 on the FERC Form No. 1 and 1-F page should identify
339.13 instead of 338.13; (2) proposed line 10.5 on the FERC Form No.
3-Q page 324a should be re-labeled to remove the word ``Renewables''
from ``Wind Renewables Generation--Maintenance (558.25-558.35)'' to
ensure consistent naming convention with proposed lines 10.1, 10.2 and
10.4; (3) the summation referenced in proposed line 21.4 on FERC Form
No. 3-Q page 325 should be changed from ``Enter Total of lines 21 thru
21.4'' to ``Enter Total of lines 21 thru 21.3''; and (4) on pages 320-
23 of FERC Form No. 1 and 1-F: (a) proposed line 79.15 should be
modified to ``Maintenance of Other Accessory Electrical Equipment''
instead of ``Other Accessory Electrical Equipment''; (b) proposed line
79.37 should list Account 558.33 instead of Account 558.31; (c)
proposed line 79.38 should list Account 558.34 instead of Account
558.32; (d) proposed line 79.39 should list Account 558.35 instead of
Account 558.33; and (e) proposed line 79.40 should list Account 558.36
instead of Account 558.34.
---------------------------------------------------------------------------
\203\ Id., at app. C.
---------------------------------------------------------------------------
3. Commission Determination
125. We adopt the NOPR's proposed changes to the FERC forms, with
minor revisions, discussed below. First, in keeping with other
revisions made in this final rule, we update references in FERC Form
Nos. 1, 1-F, and 3-Q (electric) to the proposed Other Non-Hydro
Renewable subfunction to refer instead to the Other Renewable
subfunction. We also update references to RECs in FERC Form Nos. 1, 1-
F, and 3-Q (electric) to instead reference environmental credits, as
appropriate.
126. In response to Clean Energy Associations' concerns about
potential increased burden resulting from the NOPR's proposed reporting
requirements,\204\ while sensitive to the administrative burdens our
rules create, we find that the clarity, transparency, consistency, and
uniformity benefits of this final rule, including its reporting
requirements, outweigh the potential burdens of reporting.
---------------------------------------------------------------------------
\204\ We note that Clean Energy Associations qualified their
objection to the NOPR's proposed reporting requirements. See Clean
Energy Associations NOPR Comments at 3 (``The Clean Energy
Associations also note that the extensive changes to the USofA and
FERC Form No. 1 proposed in the USofA NOPR actually have the
potential to increase the burden on public utilities that are
subject to the USofA requirements; if public utilities that are
subject to the USofA are supportive of the significant reporting
changes proposed in the USofA NOPR that they would have to bear,
Clean Energy Associations do not object to these additional
requirements.''). We also note that Utility Associations, whose
members are subject to the USofA, appear to support the reporting
proposals. See Utility Associations NOPR Comments at 1, 24
(explaining that Utility Associations support the NOPR's provisions
``except as noted in [their] specific comments[,]'' and not
otherwise objecting to the NOPR's reporting proposals).
---------------------------------------------------------------------------
127. We agree with Utility Associations' request to maintain
statistical plant pages 402-03 and 406-07 and instead add new pages for
reporting renewable generating assets larger than 10 MW.\205\
Accordingly, we add a new renewable generating plant statistical page
404 to FERC Form No. 1. The NOPR's proposal to consolidate these forms
was intended to simplify the reporting burden associated with this
final rule. After considering Utility Associations' comment, we find
that refraining from consolidation better reduces administrative
burdens.
---------------------------------------------------------------------------
\205\ Utility Associations NOPR Comments at 23-24.
---------------------------------------------------------------------------
128. Lastly, we accept all of Utility Associations' proposed
ministerial revisions \206\ in order to correctly reflect the
Commission's intent in proposing the NOPR and effectuate the purpose of
this final rule.
---------------------------------------------------------------------------
\206\ Id., at app. C.
---------------------------------------------------------------------------
F. Other Issues
1. Account Numbering
a. Comments
129. Utility Associations and Dominion take issue with the number
of digits that the NOPR proposed to include for new accounts.
Specifically, both commenters recommend using four-digit accounts
rather than the five-digit accounts (for example, using 338.1 rather
than 338.10) proposed in the NOPR to avoid the cost and time that
modifying accounting software to allow for five-digit accounts will
require.\207\
---------------------------------------------------------------------------
\207\ Dominion NOPR Comments at 2; Utility Associations NOPR
Comments at 6.
---------------------------------------------------------------------------
b. Commission Determination
130. While we recognize Utility Associations' and Dominion's
concerns that the proposed five-digit numbering
[[Page 69311]]
increases implementation burdens to update accounting software,\208\ we
nevertheless find five-digit numbering to be the least burdensome way
to implement needed changes because creating these new accounts without
using five-digit numbering would require complete overhaul of the
USofA's numbering system. In addition, we find that the need for and
benefit from these new accounts, as discussed above, justifies the
burden caused by the proposed numbering.
---------------------------------------------------------------------------
\208\ See Dominion NOPR Comments at 2; Utility Associations NOPR
Comments at 6.
---------------------------------------------------------------------------
2. Issues Beyond the Scope of This Rulemaking
a. Comments
131. Some commenters raise issues that were not addressed in the
NOPR. Clean Energy Associations urge the Commission to convene a
technical conference, issue guidance, or act on the NOI in Docket No.
RM22-2-000 on reactive power compensation issues, and otherwise to
confirm that the cost of equipment that supports the production and
provision of reactive power service should be used to support reactive
power compensation that is based on the current American Electric Power
methodology.\209\ RESA requests that the Commission make additional
modifications to the USofA in this or a subsequent rulemaking to
include accounts associated with competitive market function activities
(i.e., the provision of default supply service).\210\ Carl Pechman
suggests that the Commission adopt an on-going process to evaluate
accounting needs required to support decarbonization of the electric
system.\211\ In addition, Carl Pechman suggests evaluating whether
existing accounting protocols for generation assets provide sufficient
fidelity to provide adequate information on capital cost of pollution
control and decarbonization investments (such as carbon capture and
storage).
---------------------------------------------------------------------------
\209\ Clean Energy Associations NOPR Comments at 5.
\210\ RESA NOPR Comments at 5-11.
\211\ Carl Pechman NOPR Comments at 2.
---------------------------------------------------------------------------
b. Commission Determination
132. The NOPR did not propose reforms related to these issues
raised by commenters. Therefore, these issues are outside the scope of
this proceeding and will not be addressed here.
G. Proposed Compliance Procedures
1. Comments
133. Several commenters request that the rule's accounting and
reporting requirements apply prospectively to avoid the need to restate
or refile financial statements from prior years.\212\ Specifically,
Dominion suggests a two-year implementation window between rulemaking
issuance and implementation date given the significant time and expense
that implementing the rulemaking's changes will require.\213\ Utility
Associations also request guidance on how utilities should transfer
historical balances to the new accounts when implementing the
Commission's order, and propose providing for the transfer of the
historical balances to the new accounts in the current year without
restating balances for prior years and for disclosure in footnotes in
reports filed with the Commission, including FERC Form No. 1,
describing the amounts transferred.\214\
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\212\ Id. at 6; Dominion NOPR Comments at 2-3; PG&E and SDG&E
NOPR Comments at 1, 5.
\213\ Dominion NOPR Comments at 5.
\214\ Utility Associations NOPR Comments at 6 (stating that its
proposed treatments would be consistent with the treatment that the
Commission previously approved in Order No. 784).
---------------------------------------------------------------------------
134. Several commenters also request that the Commission allow
utilities to continue to apply the previously approved depreciation
rates applicable to the prior accounts in the new accounts until
depreciation rates are approved for the new accounts.\215\ Utility
Associations explain that this would enable the continued depreciation
of assets using approved depreciation rates until a utility can propose
new rates for review and approval.
---------------------------------------------------------------------------
\215\ Dominion NOPR Comments at 2-3; Utility Associations NOPR
Comments at 7.
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135. Last, Utility Associations suggest that the Commission should
allow jurisdictional utilities with formula rates to update their
formula rates to comply with the Commission's order updating the USofA
through a single-issue filing either under FPA section 205 or a
compliance filing.\216\ Utility Associations note that permitting
single-issue filings would allow affected utilities to update their
formula rates solely for the purpose of complying with this final rule,
thereby providing the necessary clarity that the remainder of the filed
rate would not be subject to litigation.
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\216\ Utility Associations NOPR Comments at 4-5, 24.
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2. Commission Determination
136. We require regulated entities to implement the requirements of
this final rule by January 1, 2025. These changes are therefore
prospective, as requested.\217\ We will not require retroactive
reporting in the FERC Form Nos. 1 and 3-Q of these accounting changes,
nor restatement of prior years in the initial Forms under
implementation of the new accounts. Therefore, public utilities must
use the accounting treatment codified in this rule in all applicable
filings starting in the first quarter of 2025. We have chosen the
January 1, 2025, implementation date despite Dominion's request for two
years to implement the changes \218\ in order to timely respond to the
need for this final rule's changes while providing a reasonable
implementation period that coincides with a new accounting and
reporting cycle. This extended implementation schedule will also ensure
that smaller entities subject to our accounting and reporting
requirements have sufficient time to update their accounting and
reporting software. In response to Utility Associations' request for
guidance on how utilities should transfer historical balances to the
new accounts,\219\ we agree that the historical balances should be
transferred to the new accounts in the current year without restating
balances for prior years, and that the amounts transferred should be
disclosed in the utilities' FERC Forms filed with the Commission.
---------------------------------------------------------------------------
\217\ Id. at 6; Dominion NOPR Comments at 2-3; PG&E and SDG&E
NOPR Comments at 1, 5.
\218\ Dominion NOPR Comments at 5.
\219\ Utility Associations NOPR Comments at 6 (stating that its
proposed treatments would be consistent with the treatment that the
Commission previously approved in Order No. 784).
---------------------------------------------------------------------------
137. We agree with commenters that existing depreciation rates
should apply to the newly classified plant going forward, to be
revisited in a timely manner in the utility's next relevant
depreciation rate case.\220\ This includes, as noted above, vintage
depreciation rates being applied to non-General Plant, and current
amortization rates being treated as vintage depreciation with identical
rates. We will consider on a case-by-case basis the appropriateness of
this depreciation method going forward as with any depreciation rate
case, and take into account all of the appropriate information relevant
to retirement units in the account, including the accuracy of historic
accounting and supplementary property records in contested depreciation
rate cases.
---------------------------------------------------------------------------
\220\ See Dominion NOPR Comments at 2-3; Utility Associations
NOPR Comments at 7.
---------------------------------------------------------------------------
138. We also agree with Utility Associations \221\ that utilities
affected by
[[Page 69312]]
this final rule may seek to update their rates on a single-issue basis
given the limited scope of the requirements in this final rule.\222\ We
therefore will allow jurisdictional utilities with formula rates to
seek to update their formula rates to comply with this rule through
either a single-issue filing under FPA section 205 or as part of a
utility's section 205 filing to update formula rates involving other
matters. We note, however, that, as we do not issue this rule under FPA
section 206, FPA section 206 compliance filings are neither a required
nor appropriate response to this final rule; compliance rather requires
appropriate accounting for items subject to the accounting treatment in
rate filings. We also emphasize that, as for other accounting
rulemakings, nothing in this rule should be construed as pre-granting
authority for rate recovery in a rate proceeding.\223\
---------------------------------------------------------------------------
\221\ See Utility Associations NOPR Comments at 4-5, 24 (citing
Promoting Transmission Investment through Pricing Reform, Order No.
679, 71 FR 43294 July 31, (2006), 116 FERC ] 61,057, at PP 191-193,
order on rehearing, Order No. 679-A, 72 FR 1152 (Jan. 10, 2007), 117
FERC ] 61,345 (2006), order on rehearing, 119 FERC ] 61,062 (2007)).
\222\ See Indicated RTO Transmission Owners, 161 FERC ] 61,018,
at PP 13-14 (2017); see also See Public Utility Transmission Rate
Changes to Address Accumulated Deferred Income Taxes, Order No. 864,
84 FR 65281 (Nov. 7, 2019), 169 FERC ] 61,139, at PP 2, 18 (2019),
order on rehearing, Order No. 864-A, 85 FR 27681 (May 11, 2020), 171
FERC ] 61,033 (2020).
\223\ See Accounting, Financial Reporting, & Rate Filing
Requirements for Asset Retirement Obligations, Order No. 631, 68 FR
19610 (Apr. 21, 2003), 103 FERC ] 61,021, at P 64 (2003).
---------------------------------------------------------------------------
V. Information Collection Statement
139. The information collection requirements contained in this
final rule are subject to review by the Office of Management and Budget
(OMB) under section 3507(d) of the Paperwork Reduction Act of
1995.\224\ OMB's regulations require approval of certain information
collection requirements imposed by agency rules.\225\ Upon approval of
a collection of information, OMB will assign an OMB control number and
expiration date. Respondents subject to the filing requirements of this
rule will not be penalized for failing to respond to these collections
of information unless the collections of information display a valid
OMB control number.
---------------------------------------------------------------------------
\224\ 44 U.S.C. 3507(d).
\225\ 5 CFR 1320.11.
---------------------------------------------------------------------------
140. This final rule requires jurisdictional entities as detailed
in 18 CFR part 101 (Uniform System of Accounts Prescribed for Public
Utilities and Licensees Subject to the Provision of the Federal Power
Act, General Instructions) to update, modify, and add accounts. The
updates within the USofA are also required in the respective forms
(FERC Form Nos. 1, 1-F, 3-Q (electric), and 60) that are filed with the
Commission.
141. Interested persons may obtain information on the reporting
requirements by contacting Ellen Brown, Office of the Executive
Director, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426 via email ([email protected]) or telephone
((202) 502-8663).
142. Title: Annual Report of Major Electric Utilities, Licensees,
and Others (FERC Form No. 1), Annual Report for Nonmajor Public
Utilities and Licensees (FERC Form No. 1-F), Quarterly Financial Report
of Electric Utilities, Licensees (FERC Form No. 3-Q (electric)), Annual
Reports of Centralized Service Companies (FERC Form No. 60).
Action: Revision of collections of information in accordance with
Docket No. RM21-11-000.
OMB Control Nos.: 1902-0021 (FERC Form No. 1) and 1902-0029 (FERC
Form No. 1-F), 1902-0205 (FERC Form No. 3-Q (electric)), and 1902-0215
(FERC Form No. 60).
Respondents: Public utilities and licensees and centralized service
companies who are not exempt or waived from filing per 18 CFR parts 141
and 369.
Frequency of Information Collection: Annually (FERC Form Nos. 1, 1-
F, and 60); quarterly (FERC Form No. 3-Q).
Necessity of Information: The reforms in this final rule adjust the
USofA to account for changes in the industry, particularly around
renewable generation.
Internal Review: The Commission has reviewed the changes and has
determined that such changes are necessary. These requirements conform
to the Commission's need for efficient information collection,
communication, and management within the energy industry. The
Commission has specific, objective support for the burden estimates
associated with the information collection requirements.
143. The Commission estimates a one-time burden due to the
revisions in FERC Form Nos. 1, 1-F, 3-Q (electric), and 60 reflected in
the final rule in Docket No. RM21-11-000, but estimates that the
ongoing burden following the implementation will be consistent with the
current collection estimates. The burden estimates below are included
in two tables, the first table showing the one-time implementation
burden required to update, add, and modify accounts related to the
final rule and the second table showing the ongoing annual burden to
record and report on each account in the FERC Form Nos. 1, 1-F, 3-Q
(electric), and 60.
144. The one-time implementation burden includes updating, adding,
and modifying accounts to be compliant with the final rule in Docket
No. RM21-11-000. This includes updates to FERC Form Nos. 1, 1-F, 3-Q
(electric), and 60 for the creation of new accounts and production
subfunctions for wind, solar, and other renewable generating assets;
establishment of a new functional class for energy storage accounts;
codification of the accounting treatment of environmental credits; and
creation of new accounts within existing functions for computer
hardware, software, and communication equipment. The Reporting section
IV.E of this document indicates which forms and pages will be affected
by the categorized proposed changes.
145. The estimates below were calculated using previous final rules
combined with the Commission's best estimate of the required effort to
update, modify, or add accounts within the USofA. We estimate that, on
average, it will take 20 minutes to create or transition an account to
comply with the requirements listed in this final rule. FERC Form No. 1
requires 132 account changes, FERC Form No. 1-F requires 132 account
changes, and FERC Form No. 60 requires 11 account changes. The changes
to FERC Form No. 3-Q (electric) are reflected in the calculations for
FERC Form No. 1 and 1-F because the quarterly reports are generally a
subset of the annual filings required by FERC Form No. 1 and 1-F. The
changes above are reflected in the one-time implementation burden
estimate listed in Table 1 below.\226\
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\226\ The burden numbers in the table are rounded to 1 decimal
place, and the costs are rounded to the nearest dollar.
[[Page 69313]]
Table 1--RM21-11-000 Final Rule--One-Time Implementation Burden, in Year 1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number Annual cost
Requirement Number of of responses Total number of Average burden & cost per response Total annual burden hours & cost per respondent
respondents per respondent responses \227\ ($)
(1) (2) (1) * (2) = (3) (4).................................. (3) * (4) = (5)............................ (5) / (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Form No. 1............................... 217 1 217 44 hrs.; $4,004...................... 9,548 hrs.; $868,868....................... $4,004
Form No.1-F.............................. 2 1 2 44 hrs.; $4,004...................... 88 hrs.; $8,008............................ 4,004
Form No. 3-Q electric \228\.............. 221 3 663 0 hrs.; $0........................... 0 hrs.; $0................................. 0
Form No. 60.............................. 42 1 42 3.7 hrs.; $336.70.................... 155.4 hrs.; $14,141.40..................... 336.70
------------------------------------------------------------------------------------------------------------------------------------------------------
Total for Implementation Burden...... .............. .............. 924 ..................................... 9,791.4 hrs.; $891,017.40.................. ..............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
146. The Commission estimates that the ongoing burden in years 2
and beyond will be consistent with the current burden estimates related
to FERC Form Nos. 1, 1-F, 3-Q (electric), and 60 because, although the
accounts are changing, the data historically has been recorded and
documented under different account names: therefore, after the initial
implementation of the changes, respondents will likely revert to the
current burden estimates. The estimated ongoing burden is shown in
Table 2 below.
---------------------------------------------------------------------------
\227\ The average burden and cost per response is calculated
using the hourly wage figures for FERC staff. The Commission
estimates that the costs for the Commission are comparable to those
in industry. Commission staff average salary plus benefits totals
$188,922 or $91 per hour.
\228\ The Commission assumes that the one-time burden for the
FERC Form No. 3-Q is incorporated into the calculation of FERC Form
No. 1 because quarterly filings are typically a subset of the annual
filings.
Table 2--RM21-11-000 Final Rule--Annual Ongoing Burden (Current), Starting in Year 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number Annual cost
Requirement Number of of responses Total number of Average burden & cost per response Total annual burden hours & cost per respondent
respondents per respondent responses \229\ ($)
(1) (2) (1) * (2) = (3) (4).................................. (3) * (4) = (5)............................ (5) / (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Form No. 1............................... 217 1 217 1,182 hrs.; $107,562................. 256,494 hrs.; $23,340,954.................. $107,562
Form No.1-F.............................. 2 1 2 136 hrs.; $12,376.................... 272 hrs.; $24,752.......................... 12,376
Form No. 3-Q electric.................... 221 3 663 168 hrs.; $15,288.................... 111,384 hrs.; $10,135,944.................. 45,864
Form No. 60.............................. 42 1 42 78 hrs.; $7,098...................... 3,276 hrs.; $298,116....................... 7,098
------------------------------------------------------------------------------------------------------------------------------------------------------
Total Ongoing Burden (current)....... .............. .............. 924 ..................................... 371,426 hrs.; $33,799,766.................. ..............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
147. In this final rule, besides the noted revisions, the
Commission used the numbers provided in the NOPR.
---------------------------------------------------------------------------
\229\ The average burden and cost per response is calculated
using the hourly wage figures for FERC staff. The Commission
estimates that the costs for the Commission are comparable to those
in industry. Commission staff average salary plus benefits totals
$188,992 or $91 per hour.
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VI. Environmental Analysis
148. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\230\ No
environmental consideration is necessary for the promulgation of a rule
that addresses information gathering, analysis, and dissemination,\231\
or that addresses accounting.\232\ This final rule addresses
accounting. In addition, this final rule involves information
gathering, analysis, and dissemination. Therefore, this final rule
falls within categorical exemptions provided in the Commission's
regulations. Consequently, neither an environmental impact statement
nor an environmental assessment is required.
---------------------------------------------------------------------------
\230\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
Preambles 1986-1990 ] 30,783 (1987) (cross-referenced at 41 FERC ]
61,284).
\231\ See 18 CFR 380.4(a)(5).
\232\ See id. 380.4(a)(16).
---------------------------------------------------------------------------
VII. Regulatory Flexibility Act
149. The Regulatory Flexibility Act of 1980 (RFA) \233\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and minimize any
significant economic impact on a substantial number of small
entities.\234\ The Small Business Administration (SBA) sets the
threshold for what constitutes a small business. Under SBA's size
standards,\235\ electric generators definitions of ``small'' range from
250-1,150 employees based on the type of generation. For the purpose of
our analysis, we use the 1150 employee threshold NAICS Code: 221115
Wind Electric Power Generation (this will cover all categories of
electric generators) that is used for solar, wind, geothermal, biomass,
and ``other'' generators because the proposed rules accounting changes
are particularly relevant for these types of generation.
---------------------------------------------------------------------------
\233\ 5 U.S.C. 601-612.
\234\ Id. 603(c).
\235\ 13 CFR 121.201.
---------------------------------------------------------------------------
150. In our analysis, we utilized previous submissions of the FERC
Form Nos. 1,\236\ 1-F,\237\ 3-Q (electric),\238\ and 60 \239\ filers to
create populations of companies to determine the number of small
entities. The Commission found that, of this population, approximately
88% percent of companies filing FERC Form No. 1, 50% of companies
filing
[[Page 69314]]
FERC Form No. 1-F, and approximately 69% of companies filing FERC Form
No. 60, qualify as ``small'' using the definition provided by SBA. The
Commission believes that this rule will not have a significant economic
impact on a substantial number of small entities, and therefore no
regulatory flexibility analysis is required.
---------------------------------------------------------------------------
\236\ The total population of 2020 FERC Form No. 1 filers
totaled 221. We used a statistical sample size of 67 companies that
produces a 95% confidence level.
\237\ The total population of 2020 FERC Form No. 1-F filers
totaled 2.
\238\ The FERC Form No. 3-Q are quarterly filings, which are
typically a subset of the annual filings. The Commission assumes
that the 3-Q filers are generally consistent with FERC Form No. 1
filers.
\239\ The total population of 2020 FERC Form No. 60 filers
totaled 42. We used a statistical sample size of 29 companies that
produces a 95% confidence level.
---------------------------------------------------------------------------
151. According to SBA guidance, the determination of significance
of impact ``should be seen as relative to the size of the business, the
size of the competitor's business, and the impact the regulation has on
larger competitors.'' \240\ We do not consider the estimated cost to be
a significant economic impact. As a result, we certify that this final
rule will not have a significant economic impact on a substantial
number of small entities.
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\240\ U.S. Small Business Administration, A Guide for Government
Agencies How to Comply with the Regulatory Flexibility Act, at 18
(May 2012), https://www.sba.gov/sites/default/files/advocacy/rfaguide_0512_0.pdf.
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VIII. Document Availability
152. In addition to publishing the full text of this document in
the Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov).
153. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
154. User assistance is available for eLibrary and the Commission's
website during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
IX. Effective Date and Congressional Notification
These regulations are effective January 1, 2025. The Commission has
determined, with the concurrence of the Administrator of the Office of
Information and Regulatory Affairs of OMB, that this rule is not a
``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996.
List of Subjects in 18 CFR Part 101
Electric power, Electric utilities, Reporting and recordkeeping
requirements, Uniform system of accounts.
By the Commission.
Issued: June 29, 2023
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission amends Part 101,
Chapter I, Title 18, Code of Federal Regulations, as follows:
PART 101--UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC
UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL
POWER ACT
0
1. The authority citation for part 101 continues to read as follows:
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352, 7651-7651o.
0
2. Under ``General Instructions'', revise Instruction 21 to read as
follows:
General Instructions
* * * * *
21. Allowances and environmental credits.
A. Public utilities owning allowances and environmental credits for
operational purposes, shall account for such allowances and
environmental credits at historical cost in account 158.1, Allowance
Inventory, account 158.2, Allowances Withheld, account 158.3, Bundled
Environmental Credits Inventory, or account 158.4, Unbundled
Environmental Credits Inventory, as appropriate.
B. Allowances and environmental credits acquired for speculative
purposes shall be accounted for in account 124, Other Investments. When
purchased allowances and environmental credits acquired for speculative
purposes become eligible for use in different years, and the allocation
of the purchase cost cannot be determined by fair value, the purchase
cost allocated to allowances and environmental credits of each vintage
shall be determined through use of a present-value based measurement.
The interest rate used in the present-value measurement shall be the
utility's incremental borrowing rate, in the month in which the
allowances and environmental credits are acquired, for a loan with a
term similar to the period that it will hold the allowances and
environmental credits and in an amount equal to the purchase price.
C. The underlying records supporting operational allowances and
environmental credits recorded in account 158.1, account 158.2, account
158.3, and account 158.4 shall be maintained in sufficient detail at
historical costs and provide the number of allowances and environmental
credits and the related cost by vintage year, including allowances and
environmental credits acquired at zero cost.
D. Issuances from inventory included in account 158.1, account
158.2, account 158.3, and account 158.4 shall be accounted for on a
vintage basis using a monthly weighted-average method of historical
cost determination. The cost of eligible allowances and environmental
credits not used in the current year, shall be transferred to the
vintage for the immediately following year.
E. Account 158.1 shall be credited and account 509, Allowances,
debited concurrent with the monthly remittance of the allowances to be
charged to expense based on each month's emissions. Account 158.3 and
account 158.4 shall be credited and account 555.2, Bundled
Environmental Credits, and account 555.3, Unbundled Environmental
Credits, debited, respectively, so that the cost of the environmental
credits to be remitted for the year is charged to expense based on each
month's usage. This may, in certain circumstances, require allocation
of the cost between months on a fractional basis.
F. In any period in which actual emissions exceed the amount
allowable based on eligible allowances owned, the utility shall
estimate the cost to acquire the additional allowances needed and
charge account 158.1 with the estimated cost and credit the proper
liability account. In any period in which a utility records its
estimated amount of required environmental credits, the utility shall
debit account 158.3 or account 158.4 with the estimated cost and credit
the proper liability account. When differences between the estimated
and actual costs become known, the adjustments should be made through
account 158.1, account 158.3, and account 158.4, as well as account
509, account 555.2, and account 555.3 within a single month, as
appropriate.
G. When a prepayment is made for allowances or environmental
credits, the payment is debited to account 165, Prepayments. This
accounting is not intended to influence the outcome of any rate
treatment.
H. Penalties assessed by any authoritative agencies shall be
charged to account 426.3, Penalties.
I. Gains on dispositions of allowances and environmental credits,
other than
[[Page 69315]]
those held for speculative purposes, shall be accounted for as follows.
First, if there is uncertainty as to the regulatory treatment, the gain
shall be deferred in account 254, Other Regulatory Liabilities, pending
resolution of the uncertainty. Second, if there is certainty as to the
existence of a regulatory liability, the gain will be credited to
account 254, with subsequent recognition in income when reductions in
charges to customers occur or the liability is otherwise satisfied.
Third, all other gains will be credited to account 411.8, Gains from
Disposition of Allowances, or account 411.11, Gains from Disposition of
Environmental Credits. Losses on disposition of allowances and
environmental credits, other than those held for speculative purposes,
shall be accounted for as follows. Losses that qualify as regulatory
assets shall be charged directly to account 182.3, Other Regulatory
Assets. All other losses shall be charged to account 411.9, Losses from
Disposition of Allowances, or account 411.12, Losses from Disposition
of Environmental Credits. (See Definition No. 31.) Gains or losses on
disposition of allowances and environmental credits held for
speculative purposes shall be recognized in account 421, Miscellaneous
Nonoperating Income, or account 426.5, Other Deductions, as
appropriate.
J. Revenues for environmental credits associated with the sale of
energy shall be recorded in the appropriate operating revenue account.
* * * * *
0
3. Under ``Electric Plant Instructions'', add Instruction 17 to read as
follows:
Electric Plant Instructions
* * * * *
17. Integrated computer hardware, software, and communication
equipment. Where computer hardware, software, and communication
equipment is integrated as part of a larger retirement unit, it shall
be recorded in the property account of the retirement unit purchased.
This shall be done consistently with electric plant instruction 10.
0
4. In the list of accounts under ``Under Balance Sheet Chart of
Accounts'', under ``Assets and other debits,'' under section 3
``Current and Accrued Assets'', add accounts 158.3 and 158.4 to read as
follows:
Balance Sheet Chart of Accounts
* * * * *
3. Current and Accrued Assets
* * * * *
158.3 Bundled environmental credits inventory.
158.4 Unbundled environmental credits inventory.
* * * * *
0
5. Under Balance Sheet Accounts:
0
i. Revise Accounts 108, 111, 158.1, and 158.2; and
0
ii. Add accounts 158.3 and 158.4.
The additions and revisions read as follows:
Balance Sheet Accounts
* * * * *
108 Accumulated provision for depreciation of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 403, Depreciation Expense, or to
clearing accounts for current depreciation expense for electric plant
in service.
(2) Amounts charged to account 403.1, Depreciation expense for
asset retirement costs, for current depreciation expense related to
asset retirement costs in electric plant in service in a separate
subaccount.
(3) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for depreciation expense on property included in account 105,
Electric Plant Held for Future Use. Include, also, the balance of
accumulated provision for depreciation on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. Normally account 108 will not be used for current
depreciation provisions because, as provided herein, the service life
during which depreciation is computed commences with the date property
is includible in electric plant in service; however, if special
circumstances indicate the propriety of current accruals for
depreciation, such charges shall be made to account 421, Miscellaneous
Nonoperating Income.
(4) Amounts charged to account 413, Expenses of Electric Plant
Leased to Others, for electric plant included in account 104, Electric
Plant Leased to Others.
(5) Amounts charged to account 416, Costs and Expenses of
Merchandising, Jobbing, and Contract Work, or to clearing accounts for
current depreciation expense.
(6) Amounts of depreciation applicable to electric properties
acquired as operating units or systems. (See electric plant instruction
5.)
(7) Amounts charged to account 182, Extraordinary Property Losses,
when authorized by the Commission.
(8) Amounts of depreciation applicable to electric plant donated to
the utility.
(The utility shall maintain separate subaccounts for depreciation
applicable to electric plant in service, electric plant leased to
others and electric plant held for future use.)
B. At the time of retirement of depreciable electric utility plant,
this account shall be charged with the book cost of the property
retired and the cost of removal and shall be credited with the salvage
value and any other amounts recovered, such as insurance. When
retirement, costs of removal and salvage are entered originally in
retirement work orders, the net total of such work orders may be
included in a separate subaccount hereunder. Upon completion of the
work order, the proper distribution to subdivisions of this account
shall be made as provided in the following paragraph.
C. For general ledger and balance sheet purposes, this account
shall be regarded and treated as a single composite provision for
depreciation. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric
plant:
(1) Steam production,
(2) Nuclear production,
(3) Hydraulic production,
(4) Solar production,
(5) Wind production,
(6) Other renewable production,
(7) Other production,
(8) Transmission,
(9) Distribution,
(10) Regional Transmission and Market Operation,
(11) Energy Storage Plant, and
(12) General.
These subsidiary records shall reflect the current credits and
debits to this account in sufficient detail to show separately for each
such functional classification:
(a) The amount of accrual for depreciation,
(b) The book cost of property retired,
(c) Cost of removal,
(d) Salvage, and
(e) Other items, including recoveries from insurance.
Separate subsidiary records shall be maintained for the amount of
accrued cost of removal other than legal obligations for the retirement
of plant recorded in account 108, Accumulated Provision for
Depreciation of Electric Utility Plant (Major only).
D. When transfers of plant are made from one electric plant account
to another, or from or to another utility department, or from or to
nonutility
[[Page 69316]]
property accounts, the accounting for the related accumulated provision
for depreciation shall be as provided in electric plant instruction 12.
E. The utility is restricted in its use of the accumulated
provision for depreciation to the purposes set forth above. It shall
not transfer any portion of this account to retained earnings or make
any other use thereof without authorization by the Commission.
* * * * *
111 Accumulated provision for amortization of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 404, Amortization of Limited-Term
Electric Plant, for the current amortization of limited-term electric
plant investments.
(2) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for amortization expense on property included in account 105,
Electric Plant Held for Future Use. Include also the balance of
accumulated provision for amortization on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. See also paragraph A(2), account 108, Accumulated Provision
for Depreciation of Electric Utility Plant.
(3) Amounts charged to account 405, Amortization of Other Electric
Plant.
(4) Amounts charged to account 413, Expenses of Electric Plant
Leased to Others, for the current amortization of limited-term or other
investments subject to amortization included in account 104, Electric
Plant Leased to Others.
(5) Amounts charged to account 425, Miscellaneous Amortization, for
the amortization of intangible or other electric plant which does not
have a definite or terminable life and is not subject to charges for
depreciation expense, with Commission approval.
(The utility shall maintain subaccounts of this account for the
amortization applicable to electric plant in service, electric plant
leased to others and electric plant held for future use.)
B. When any property to which this account applies is sold,
relinquished, or otherwise retired from service, this account shall be
charged with the amount previously credited in respect to such
property. The book cost of the property so retired less the amount
chargeable to this account and less the net proceeds realized at
retirement shall be included in account 421.1, Gain on Disposition of
Property, or account 421.2, Loss on Disposition of Property, as
appropriate.
C. For general ledger and balance sheet purposes, this account
shall be regarded and treated as a single composite provision for
amortization. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric
plant: (1) Steam production; (2) nuclear production; (3) hydraulic
production; (4) solar production; (5) wind production; (6) other
renewable production; (7) other production; (8) transmission; (9)
distribution; (10) regional transmission and market operation; (11)
energy storage plant; and (12) general. These subsidiary records shall
reflect the current credits and debits to this account in sufficient
detail to show separately for each such functional classification (a)
the amount of accrual for amortization, (b) the book cost of property
retired, (c) cost of removal, (d) salvage, and (e) other items,
including recoveries from insurance.
D. The utility is restricted in its use of the accumulated
provision for amortization to the purposes set forth above. It shall
not transfer any portion of this account to retained earnings or make
any other use thereof without authorization by the Commission.
* * * * *
158.1 Allowance inventory.
A. This account shall include the cost of allowances owned by the
utility and not withheld by any authoritative agency. See General
Instruction No. 21 and account 158.2, Allowances Withheld.
B. This account shall be credited and account 509, Allowances,
shall be debited concurrent with the monthly emissions.
C. Separate subdivisions of this account shall be maintained so as
to separately account for those allowances usable in the current year
and in each subsequent year. The underlying records of these
subdivisions shall be maintained in sufficient detail so as to identify
each allowance included; the origin of each allowance; and the
historical cost.
(Note: For prepayments of allowances, see General Instruction
No. 21.)
158.2 Allowances withheld.
A. This account shall include the cost of allowances owned by the
utility but withheld by any authoritative agency. (See General
Instruction No. 21.)
B. The inventory cost of the allowances released by any
authoritative agency for use by the utility shall be transferred to
account 158.1, Allowance Inventory.
C. The underlying records of this account shall be maintained in
sufficient detail so as to identify each allowance included; the origin
of each allowance; and the historical cost.
158.3 Bundled environmental credits inventory.
A. This account shall include the cost of environmental credits
owned by the utility, bundled with energy. See General Instruction No.
21.
B. This account shall be credited and account 555.2, Bundled
Environmental Credits, shall be debited concurrent with the monthly use
of environmental credits.
C. Separate subdivisions of this account shall be maintained so as
to separately account for those environmental credits usable in the
current year and in each subsequent year. The underlying records of
these subdivisions shall be maintained in sufficient detail so as to
identify each environmental credit included; the origin of each
environmental credit; and the historical cost.
(Note: For prepayments of environmental credits, see General
Instruction No. 21.)
158.4 Unbundled environmental credits inventory.
A. This account shall include the cost of environmental credits
owned by the utility, not considered bundled with energy. See General
Instruction No. 21.
B. This account shall be credited and account 555.3, Unbundled
Environmental Credits, shall be debited concurrent with the monthly use
of environmental credits.
C. Separate subdivisions of this account shall be maintained so as
to separately account for those environmental credits usable in the
current year and in each subsequent year. The underlying records of
these subdivisions shall be maintained in sufficient detail so as to
identify each environmental credit included; the origin of each
environmental credit; and the historical cost.
(Note: For prepayments of environmental credits, see General
Instruction No. 21.)
* * * * *
0
6. In the list of accounts under ``Electric Plant Chart of Accounts'':
0
i. Under section 2.a, add accounts 315.1, 315.2, and 315.3;
0
ii. Under section 2.b, add accounts 324.1, 324.2, and 324.3;
0
iii. Under section 2.c, add accounts 334.1, 334.2, and 334.3;
[[Page 69317]]
0
iv. Redesignate section 2.d, ``other production'', consisting of
accounts 340 through 348, as section 2.g;
0
v. Add a new section 2.d, ``solar production'', section 2.e, ``wind
production'', and section 2.f, ``other renewable production'';
0
vi. Under newly designated section 2.g, ``other production'', add
accounts 345.1, 345.2, and 345.3, and remove and reserve account 348;
0
vii. Under section 3 ``Transmission Plant'', add accounts 351.1, 351.2,
and 351.3;
0
viii. Under section 4 ``Distribution Plant'', remove and reserve
account 363 and add accounts 363.1, 363.2, and 363.3;
0
ix. Redesignate section 6, ``General Plant'', consisting of accounts
389 through 399.1, as section 7;
0
x. Add a new section 6, ``Energy Storage Plant'';
0
xi. Transfer account 387 under section 5 ``Regional Transmission and
Market Operation Plan,'' to newly created section 6, ``Energy Storage
Plant'';
0
xii. Add accounts 387.1 through 387.12 to newly created section 6,
``Energy Storage Plant'';
0
xiii. Under newly redesignated section 7, ``General Plant'', remove and
reserve account 397; and
0
xiv. Add Accounts 397.1, 397.2, and 397.3 to newly redesignated section
7, ``General Plant'';
* * * * *
The revisions and additions read as follows:
Electric Plant Chart of Accounts
* * * * *
2. Production Plant
a. steam production
* * * * *
315.1 Computer hardware.
315.2 Computer software.
315.3 Communication equipment.
* * * * *
b. nuclear production
* * * * *
324.1 Computer hardware.
324.2 Computer software.
324.3 Communication equipment.
* * * * *
c. hydraulic production
* * * * *
334.1 Computer hardware.
334.2 Computer software.
334.3 Communication equipment.
* * * * *
d. solar production
338.1 Land and land rights.
338.2 Structures and improvements.
338.3 [Reserved].
338.4 Solar panels.
338.5 Collector system.
338.6 Generator step-up transformers (GSU).
338.7 Inverters.
338.8 Other accessory electrical equipment.
338.9 Computer hardware.
338.10 Computer software.
338.11 Communication equipment.
338.12 Miscellaneous power plant equipment.
338.13 Asset retirement costs for solar production.
e. wind production
338.20 Land and land rights.
338.21 Structures and improvements.
338.22 [Reserved].
338.23 Wind turbines.
338.24 Wind towers and fixtures.
338.25 [Reserved].
338.26 Collector system.
338.27 Generator step-up transformers (GSU).
338.28 Inverters.
338.29 Other accessory electrical equipment.
338.30 Computer hardware.
338.31 Computer software.
338.32 Communication equipment.
338.33 Miscellaneous power plant equipment.
338.34 Asset retirement costs for wind production.
f. other renewable production
339.1 Land and land rights.
339.2 Structures and improvements.
339.3 Fuel holders.
339.4 Boilers.
339.5 [Reserved].
339.6 Generators.
339.7 [Reserved].
339.8 Other accessory electrical equipment.
339.9 Computer hardware.
339.10 Computer software.
339.11 Communication equipment.
339.12 Miscellaneous power plant equipment.
339.13 Asset retirement costs for other renewable production.
g. other production
340 Land and land rights.
341 Structures and improvements.
342 Fuel holders, producers, and accessories.
343 Prime movers.
344 Generators.
345 Accessory electric equipment.
345.1 Computer hardware.
345.2 Computer software.
345.3 Communication equipment.
346 Miscellaneous power plant equipment.
347 Asset retirement costs for other production plant.
348 [Reserved].
3. Transmission Plant
* * * * *
351.1 Computer hardware.
351.2 Computer software.
351.3 Communication equipment.
* * * * *
4. Distribution Plant
* * * * *
363 [Reserved].
363.1 Computer hardware.
363.2 Computer software.
363.3 Communication equipment.
* * * * *
6. Energy Storage Plant
387 [Reserved].
387.1 Land and land rights.
387.2 Structures and improvements.
387.3 Energy storage equipment.
387.4 [Reserved].
387.5 Collector system.
387.6 Generator step-up transformers (GSU).
387.7 Inverters.
387.8 Computer hardware.
387.9 Computer software.
387.10 Communication equipment.
387.11 Miscellaneous energy storage equipment.
387.12 Asset retirement costs for energy storage.
7. General Plant
* * * * *
397 [Reserved].
397.1 Computer hardware.
397.2 Computer software.
397.3 Communication equipment.
* * * * *
0
7. In the section ``Balance Sheet Accounts,'' under ``Electric Plant
Accounts'':
0
i. Add Accounts 315.1, 315.2, 315.3, 324.1, 324.2, 324.3, 334.1, 334.2,
334.3, 338.1 through 338.13, 338.20 through 338.34, 339.1 through
339.13, and 345.1 through 345.3;
0
ii. Accounts 348 and 351 are removed and reserved;
0
iii. Accounts 351.1, 351.2, and 351.3 are added;
0
iv. Account 363 is removed and reserved;
0
v. Accounts 363.1, 363.2, 363.3, 387, and 387.1 through 387.12 are
added;
0
vi. Account 397 is removed and reserved; and
0
vii. Accounts 397.1, 397.2, and 397.3 are added;
The revisions and additions read as follows:
Electric Plant Accounts
* * * * *
315.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
315.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
[[Page 69318]]
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
315.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
324.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
324.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
324.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
334.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
334.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
334.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
338.1 Land and land rights.
This account shall include the cost of land and land rights used in
connection with solar power generation. (See electric plant instruction
7.)
338.2 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with solar power generation. (See
electric plant instruction 8.)
338.3 [Reserved].
338.4 Solar panels.
This account shall include the installed cost of the racks, solar
panels, solar tracking system, and other equipment to be used primarily
for generating Direct Current (DC) electricity.
338.5 Collector system.
This account shall include all cost of cabling, junction boxes,
connection cabinets, and all facilities and devices (such as capacitors
and reactors) that are used to transport and consolidate the power fed
from individual solar panels up to, but not including, the substation
prior to interconnection to the grid. This account shall exclude the
cost of transformers and other equipment used for the express purpose
of interconnecting to transmission or distribution lines.
Items
1. Anchors, head arm, and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Armored conductors, buried, submarine, including insulators,
insulating materials, splices in terminal chamber, potheads, etc.
3. Brackets.
4. Circuit breakers.
5. Conductors, including insulated and bare wires and cables.
6. Conduit, concrete, brick and tile, including iron pipe, fiber
pipe, Murray duct, and standpipe on pole or tower.
7. Crossarms and braces.
8. Excavation and backfill, including shoring, bracing, bridging,
and disposal of excess excavated material.
9. Extension arms.
10. Fireproofing, in connection with any items listed herein.
11. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which constructed.
12. Ground wires, clamps, etc.
[[Page 69319]]
13. Guards.
14. Hollow-core oil-filled cable, including straight or stop
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals,
potheads and connections, etc.
15. Insulators, including pin, suspension, and other types, and tie
wire or clamps.
16. Lightning arresters.
17. Paving, pavement disturbed, including cutting and replacing
pavement, pavement base, and sidewalks.
18. Permits for construction.
19. Pole steps and ladders.
20. Poles, wood, steel, concrete, or other material.
21. Racks complete with insulators.
22. Railings.
23. Railroad and highway crossing guards.
24. Reinforcing and stubbing.
25. Removal and relocation of subsurface obstructions.
26. Settings.
27. Sewer connections, including drains, traps, tide valves, check
valves, etc.
28. Shaving, painting, gaining, roofing, stenciling, and tagging.
29. Splices.
30. Sumps, including pumps.
31. Switches.
32. Towers.
33. Tree trimming, initial cost including the cost of permits
therefor.
34. Ventilating equipment.
35. Other line devices.
338.6 Generator step-up transformers (GSU).
This account shall include only the cost of the GSU transformers
directly connected to the generator terminal tips and other equipment
used for conveying the power to the GSU for the purpose of initially
changing the voltage or frequency of electric energy for the purpose of
moving the power. It shall exclude the cost of additional transformers
and other equipment once the power has been initially stepped up from a
generator voltage to a higher voltage.
Note: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purposes of transmission or distribution.
338.7 Inverters.
This account shall include the installed cost of inverters for the
purpose of converting electricity from direct current (DC) to
alternating current (AC).
338.8 Other accessory electrical equipment.
This account shall include the installed cost of other conversion
or auxiliary generating apparatus and equipment used primarily in
connection with the control and switching of electric energy produced
by solar panels, including weather monitoring equipment, and protection
of electric circuits and equipment, as used to support the generator in
the action of generating power (excluding SCADA systems) not
specifically chargeable to any other account. This account shall
exclude Collector System costs, account 338.5, Collector System; GSU
costs, account 338.6, Generator Step-up Transformers (GSU); and
Inverter costs, account 338.7, Inverters.
Items
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Rheostats, backup storage batteries and charging equipment,
circuit breakers, panels and accessories, knife switches and
accessories, surge arresters, instrument shunts, conductors and
conduit, special supports for conduit, special housings, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential
transformers, protective relays, isolated panels and equipment,
conductors and conduit, special supports for generator main leads,
grounding switch, special housing, etc.
4. Station control system, including station switchboards with
panel wiring, panels with instruments and control equipment only,
panels with switching equipment mounted or mechanically connected,
trunktype boards complete, cubicles, generator signal stands,
temperature-recording devices, atmospheric reading devices, frequency
control equipment, master clocks, watt-hour meter, station totalizing
wattmeter, backup storage batteries, panels and charging sets,
instrument transformers for supervisory metering, conductors and
conduit, special supports for conduit, switchboards, emergency backup
batteries, special housing for batteries, etc.
5. Station buses, including main, auxiliary transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, current transformers, potential
transformers, protective relays, backup storage batteries and charging
equipment, isolated panels and equipment, conductors and conduit,
special supports, special housings, concrete pads, general station
ground system, special fire-extinguishing system, and test equipment.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric
energy for the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly
to furnish power to equipment included in another account, its cost
shall be included in such other account.
338.9 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
338.10 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
338.11 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
[[Page 69320]]
5. Servers.
6. Workstations.
7. Telephones.
338.12 Miscellaneous power plant equipment.
This account shall include the installed cost of miscellaneous
equipment in and about the solar plant devoted to general station use,
and which is not properly includible in any of the foregoing solar
power production accounts.
Items
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
5. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones, emergency whistles and sirens,
fire alarms, and other similar equipment.
6. Miscellaneous belts, pulleys, countershafts, etc.
7. Refrigerating system including compressors, pumps, cooling
coils, etc.
8. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
9. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment, listed herein is used wholly
in connection with equipment included in another account, its cost
shall be included in such other account.
338.13 Asset retirement costs for solar production.
This account shall include asset retirement costs on plant included
in solar production function.
338.20 Land and land rights.
This account shall include the cost of land and land rights used in
connection with wind power generation. (See electric plant instruction
7.)
338.21 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with wind power generation. (See
electric plant instruction 8.)
338.22 [Reserved]
338.23 Wind turbines.
This account shall include the cost installed of the mechanical
turbine parts and generator equipment, including nacelle, gearbox,
etc., to be used primarily for generating electricity.
338.24 Wind towers and fixtures.
This account shall include the cost installed of towers and
appurtenant fixtures used for supporting wind power production.
Foundations shall be included in account 338.21 Structures and
Improvements.
338.25 [Reserved]
338.26 Collector system.
This account shall include all cost of cabling, junction boxes,
connection cabinets, and all facilities and devices (such as capacitors
and reactors) that are used to transport and consolidate the power fed
from individual wind turbines up to, but not including, the substation
prior to interconnection to the grid. This account shall exclude the
cost of transformers and other equipment used for the express purpose
of interconnecting to transmission or distribution lines.
Items
1. Anchors, head arm, and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Armored conductors, buried, submarine, including insulators,
insulating materials, splices in terminal chamber, potheads, etc.
3. Brackets.
4. Circuit breakers.
5. Conductors, including insulated and bare wires and cables.
6. Conduit, concrete, brick and tile, including iron pipe, fiber
pipe, Murray duct, and standpipe on pole or tower.
7. Crossarms and braces.
8. Excavation and backfill, including shoring, bracing, bridging,
and disposal of excess excavated material.
9. Extension arms.
10. Fireproofing, in connection with any items listed herein.
11. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which constructed.
12. Ground wires, clamps, etc.
13. Guards.
14. Hollow-core oil-filled cable, including straight or stop
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals,
potheads and connections, etc.
15. Insulators, including pin, suspension, and other types, and tie
wire or clamps.
16. Lightning arresters.
17. Paving, pavement disturbed, including cutting and replacing
pavement, pavement base, and sidewalks.
18. Permits for construction.
19. Pole steps and ladders.
20. Poles, wood, steel, concrete, or other material.
21. Racks complete with insulators.
22. Railings.
23. Railroad and highway crossing guards.
24. Reinforcing and stubbing.
25. Removal and relocation of subsurface obstructions.
26. Settings.
27. Sewer connections, including drains, traps, tide valves, check
valves, etc.
28. Shaving, painting, gaining, roofing, stenciling, and tagging.
29. Splices.
30. Sumps, including pumps.
31. Switches.
32. Towers.
33. Tree trimming, initial cost including the cost of permits
therefor.
34. Ventilating equipment.
35. Other line devices.
338.27 Generator step-up transformers (GSU).
This account shall include only the cost of the GSU transformers
and other equipment used for conveying the power to the pad-mount GSU
for the purpose of initially changing the voltage or frequency of
electric energy for the purpose of moving the power. It shall exclude
the cost of additional transformers and other equipment once the power
has been initially stepped up from a generator voltage to a higher
voltage.
Note: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purposes of transmission or distribution.
338.28 Inverters.
This account shall include the installed cost of inverters for the
purpose of converting electricity from direct current (DC) to
alternating current (AC).
338.29 Other accessory electrical equipment.
This account shall include the installed cost of other conversion
or auxiliary generating apparatus and equipment used primarily in
connection with the control and switching of electric energy produced
by wind
[[Page 69321]]
turbines, including weather monitoring equipment, and protection of
electric circuits and equipment, as used to support the generator in
the action of generating power (excluding SCADA systems) not
specifically chargeable to any other account. This account shall
exclude Collector System costs, account 338.26, Collector System; GSU
costs, account 338.27, Generator Step-up Transformers (GSU); and
Inverter costs, account 338.28, Inverters.
Items
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Rheostats, backup storage batteries and charging equipment,
circuit breakers, panels and accessories, knife switches and
accessories, surge arresters, instrument shunts, conductors and
conduit, special supports for conduit, special housings, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential
transformers, protective relays, isolated panels and equipment,
conductors and conduit, special supports for generator main leads,
grounding switch, special housing, etc.
4. Station control system, including station switchboards with
panel wiring, panels with instruments and control equipment only,
panels with switching equipment mounted or mechanically connected,
trunktype boards complete, cubicles, station supervisory control
boards, generator signal stands, temperature-recording devices,
atmospheric reading devices, frequency control equipment, master
clocks, watt-hour meter, station totalizing wattmeter, backup storage
batteries, panels and charging sets, instrument transformers for
supervisory metering, conductors and conduit, special supports for
conduit, switchboards, emergency backup batteries, special housing for
batteries, etc.
5. Station buses, including main, auxiliary transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, current transformers, potential
transformers, protective relays, backup storage batteries and charging
equipment, isolated panels and equipment, conductors and conduit,
special supports, special housings, concrete pads, general station
ground system, special fire-extinguishing system, and test equipment.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric
energy for the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly
to furnish power to equipment included in another account, its cost
shall be included in such other account.
338.30 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
338.31 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
338.32 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
338.33 Miscellaneous power plant equipment.
This account shall include the installed cost of miscellaneous
equipment in and about the wind plant devoted to general station use,
and which is not properly includible in any of the foregoing wind power
production accounts.
338.34 Asset retirement costs for wind production.
This account shall include asset retirement costs on plant included
in wind production function.
339.1 Land and land rights.
This account shall include the cost of land and land rights used in
connection with other renewable power generation. (See electric plant
instruction 7.)
339.2 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with other renewable power generation.
(See electric plant instruction 8.)
Note: this includes mirrors for solar boiler systems.
339.3 Fuel holders.
This account shall include the cost installed of renewable fuel
handling and storage equipment used between the point of fuel delivery
to the station and the intake through which fuel is either directly
drawn to the engine, or into a boiler system, inclusive.
Items
1. Blower and fans.
2. Boilers and pumps.
3. Economizers.
4. Exhauster outfits.
5. Flues and piping.
6. Pipe system.
7. Producers.
8. Regenerators.
9. Scrubbers.
10. Steam injectors.
11. Tanks for storage of electrolytes, hydrogen, renewable natural
gas, algae, etc.
12. Vaporizers.
339.4 Boilers.
This account shall include the cost installed of furnaces, boilers,
steam and feed water piping, boiler apparatus and accessories used in
the production of steam or other vapor, to be used primarily for
generating electricity. This account includes solar boiler systems.
Items
1. Boiler feed system, including feed water heaters, evaporator
condensers, heater drain pumps, heater drainers, deaerators, and vent
condensers, boiler feed pumps, surge tanks, feed water regulators, feed
water measuring equipment, and all associated drives.
2. Boiler plant cranes and hoists and associated drives.
[[Page 69322]]
3. Boilers and equipment, including boilers and baffles,
economizers, superheaters, foundations and settings, water walls,
arches, grates, insulation, blow-down system, drying out of new
boilers, also associated motors or other power equipment.
4. Draft equipment, including air preheaters and accessories,
induced and forced draft fans, air ducts, combustion control
mechanisms, and associated motors or other power equipment.
5. Gas-burning equipment, including holders, burner equipment and
piping, control equipment, etc.
6. Instruments and devices, including all measuring, indicating,
and recording equipment for boiler plant service together with
mountings and supports.
7. Lighting systems.
8. Stacks, including foundations and supports, stack steel and
ladders, stack concrete, stack lining, stack painting (first), when set
on separate foundations, independent of substructure or superstructure
of building.
9. Station piping, including pipe, valves, fittings, separators,
traps, desuperheaters, hangers, excavation, covering, etc., for station
piping system, including all steam, condensate, boiler feed and water
supply piping, etc.
10. Ventilating equipment.
11. Water purification equipment, including softeners and
accessories, evaporators and accessories, heat exchangers, filters,
tanks for filtered or softened water, pumps, motors, etc.
12. Water-supply systems, including pumps, motors, strainers, raw-
water storage tanks, boiler wash pumps, intake and discharge pipes and
tunnels not a part of a building.
339.5 [Reserved]
339.6 Generators.
This account shall include the cost installed of other renewable
generators of all types apart from wind and solar.
Items
1. Cranes, hoists, etc., including items wholly identified with
such apparatus.
2. Fire-extinguishing equipment.
3. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
4. Generator cooling system, including air cooling and washing
apparatus, air fans and accessories, air ducts, etc.
5. Generators--main, a.c. or d.c., including field rheostats and
connections for self-excited units and excitation system when
identified with the generating unit.
6. Lighting systems.
7. Lubricating system, including tanks, filters, strainers, pumps,
piping, coolers, etc.
8. Mechanical meters, and recording instruments.
9. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
10. Cooling system, including towers, pumps, tank, and piping.
11. Piping--main exhaust, including connections between generator
and condenser and between condenser and hotwell.
12. Piping--main steam, including connections from main throttle
valve to turbine inlet.
13. Circulating pumps, including connections between condensers and
intake and discharge tunnels.
14. Tunnels, intake and discharge, for condenser system, when not a
part of structure, water screens, etc.
15. Water screens, motors, etc.
16. Moisture separator for turbine steam.
17. Turbine lubricating oil (initial charge).
339.7 [Reserved]
339.8 Other accessory electrical equipment.
This account shall include the installed cost of other conversion
or auxiliary generating apparatus and equipment used primarily in
connection with the control and switching of electric energy produced
by other renewable, including weather monitoring equipment, and
protection of electric circuits and equipment as used to support the
generator in the action of generating power (excluding SCADA systems)
not specifically chargeable to any other account.
Items
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Rheostats, backup storage batteries and charging equipment,
circuit breakers, panels and accessories, knife switches and
accessories, surge arresters, instrument shunts, conductors and
conduit, special supports for conduit, special housings, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential
transformers, protective relays, isolated panels and equipment,
conductors and conduit, special supports for generator main leads,
grounding switch, special housing, etc.
4. Station control system, including station switchboards with
panel wiring, panels with instruments and control equipment only,
panels with switching equipment mounted or mechanically connected,
trunktype boards complete, cubicles, station supervisory control
boards, generator signal stands, temperature-recording devices,
atmospheric reading devices, frequency control equipment, master
clocks, watt-hour meter, station totalizing wattmeter, backup storage
batteries, panels and charging sets, instrument transformers for
supervisory metering, conductors and conduit, special supports for
conduit, switchboards, emergency backup batteries, special housing for
batteries, etc.
5. Station buses, including main, auxiliary transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, current transformers, potential
transformers, protective relays, backup storage batteries and charging
equipment, isolated panels and equipment, conductors and conduit,
special supports, special housings, concrete pads, general station
ground system, special fire-extinguishing system, and test equipment.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric
energy for the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly
to furnish power to equipment included in another account, its cost
shall be included in such other account.
339.9 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
339.10 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
[[Page 69323]]
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
339.11 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
339.12 Miscellaneous power plant equipment.
This account shall include the installed cost of miscellaneous
equipment in and about the other renewable plant devoted to general
station use, and which is not properly includible in any of the
foregoing other renewable power production accounts.
339.13 Asset retirement costs for other renewable production.
This account shall include asset retirement costs on plant included
in other renewable production function.
* * * * *
345.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
345.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
345.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
348 [Reserved]
* * * * *
351 [Reserved]
351.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
351.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
351.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
363 [Reserved]
363.1 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
363.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
363.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
[[Page 69324]]
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
387 [Reserved]
387.1 Land and land rights.
This account shall include the cost of land and land rights used in
connection with energy storage plant. (See electric plant instruction
7.)
387.2 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with energy storage plant. (See
electric plant instruction 8.)
387.3 Energy storage equipment.
A. This account shall include the cost installed of energy storage
equipment used to store energy for load managing purposes.
B. Labor costs and power purchased to energize the equipment are
includible on the first installation only. The cost of removing,
relocating and resetting energy storage equipment shall not be charged
to this account but to operations and maintenance expense accounts for
energy storage expenses, as appropriate.
Items
1. Batteries/Chemical.
2. Compressed Air.
3. Flywheels.
4. Superconducting Magnetic Storage.
5. Thermal.
Note: The cost of pumped storage hydroelectric plant shall be
charged to hydraulic production plant. These are examples of items
includible in this account. This list is not exhaustive.
387.4 [Reserved]
387.5 Collector system.
This account shall include all cost of cabling, junction boxes,
connection cabinets, and all facilities and devices (such as capacitors
and reactors) that are used to transport and consolidate the power fed
from individual storage facilities up to, but not including, the
substation prior to interconnection to the grid. This account shall
exclude the cost of transformers and other equipment used for the
express purpose of interconnecting to transmission or distribution
lines.
Items
1. Anchors, head arm, and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Armored conductors, buried, submarine, including insulators,
insulating materials, splices in terminal chamber, potheads, etc.
3. Brackets.
4. Circuit breakers.
5. Conductors, including insulated and bare wires and cables.
6. Conduit, concrete, brick and tile, including iron pipe, fiber
pipe, Murray duct, and standpipe on pole or tower.
7. Crossarms and braces.
8. Excavation and backfill, including shoring, bracing, bridging,
and disposal of excess excavated material.
9. Extension arms.
10. Fireproofing, in connection with any items listed herein.
11. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which constructed.
12. Ground wires, clamps, etc.
13. Guards.
14. Hollow-core oil-filled cable, including straight or stop
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals,
potheads and connections, etc.
15. Insulators, including pin, suspension, and other types, and tie
wire or clamps.
16. Lightning arresters.
17. Paving, pavement disturbed, including cutting and replacing
pavement, pavement base, and sidewalks.
18. Permits for construction.
19. Pole steps and ladders.
20. Poles, wood, steel, concrete, or other material.
21. Racks complete with insulators.
22. Railings.
23. Railroad and highway crossing guards.
24. Reinforcing and stubbing.
25. Removal and relocation of subsurface obstructions.
26. Settings.
27. Sewer connections, including drains, traps, tide valves, check
valves, etc.
28. Shaving, painting, gaining, roofing, stenciling, and tagging.
29. Splices.
30. Sumps, including pumps.
31. Switches.
32. Towers.
33. Tree trimming, initial cost including the cost of permits
therefor.
34. Ventilating equipment.
35. Other line devices.
387.6 Generator step-up transformers (GSU).
This account shall include only the cost of the GSU transformers
and other equipment used for conveying the power to the pad-mount GSU
for the purpose of initially changing the voltage or frequency of
electric energy for the purpose of moving the power. It shall exclude
the cost of additional transformers and other equipment once the power
has been initially stepped up from a generator voltage to a higher
voltage.
Note: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity
for the purposes of transmission or distribution.
387.7 Inverters.
This account shall include the installed cost of inverters for the
purpose of converting electricity from direct current (DC) to
alternating current (AC).
387.8 Computer hardware.
This account shall include the cost of computer hardware and
miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
387.9 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
387.10 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
[[Page 69325]]
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
387.11 Miscellaneous energy storage equipment.
This account shall include the installed cost of miscellaneous
equipment in and about the energy storage equipment devoted to general
station use, and which is not properly includible in any of the
foregoing energy storage plant accounts.
387.12 Asset retirement costs for energy storage plant.
This account shall include asset retirement costs on plant included
in the energy storage plant function.
* * * * *
397 [Reserved]
397.1 Computer hardware.This account shall include the cost of
computer hardware and miscellaneous information technology equipment.
Items
1. Personal computers.
2. Servers.
3. Workstations.
4. Energy Management System (EMS) hardware.
5. Supervisory Control and Data Acquisition (SCADA) system
hardware.
6. Peripheral equipment.
7. Networking components.
397.2 Computer software.
This account shall include the cost of off-the-shelf and in-house
developed software.
Items
1. Software licenses.
2. User interface software.
3. Modeling software.
4. Database software.
5. Tracking and monitoring software.
6. Energy Management System (EMS) software.
7. Supervisory Control and Data Acquisition (SCADA) system
software.
8. Evaluation and assessment system software.
9. Operating, planning and transaction scheduling software.
10. Reliability applications.
11. Market application software.
397.3 Communication equipment.
This account shall include the cost of communication equipment
owned and used to acquire or share data and information.
Items
1. Fiber optic cable.
2. Remote terminal units.
3. Microwave towers.
4. Global Positioning System (GPS) equipment.
5. Servers.
6. Workstations.
7. Telephones.
* * * * *
0
8. Under Income Chart of Accounts, section 1, ``Utility Operating
Income'', add accounts 411.11 and 411.12 to read as follows;
Income Chart of Accounts
1. Utility Operating Income
* * * * *
411.11 Gains from disposition of environmental credits.
411.12 Losses from disposition of environmental credits.
* * * * *
0
9. Under ``Income Accounts'', add accounts 411.11 and 411.12 to read as
follows;
Income Accounts
* * * * *
411.11 Gains from disposition of environmental credits.
This account shall be credited with the gain on the sale, exchange,
or other disposition of environmental credits in accordance with
paragraph (I) of General Instruction No. 21. Income taxes relating to
gains recorded in this account shall be recorded in account 409.1,
Income Taxes, Utility Operating Income.
Note: Revenues for environmental credits associated with the
sale of energy shall be recorded in the appropriate operating
revenue account consistent with General Instruction No. 21 (J).
411.12 Losses from disposition of environmental credits.
This account shall be debited with the loss on the sale, exchange,
or other disposition of environmental credits in accordance with
paragraph (I) of General Instruction No. 21. Income taxes relating to
losses recorded in this account shall be recorded in account 409.1,
Income Taxes, Utility Operating Income.
* * * * *
0
10. In the list of accounts under ``Operation and Maintenance Expense
Chart of Accounts'':
0
i. Under section 1.a, under ``Maintenance'', add accounts 513.1, 513.2,
and 513.3;
0
ii. Under section 1.b, under ``Maintenance'', add accounts 531.1,
531.2, and 531.3;
0
iii. Under section 1.c, under ``Maintenance'', add accounts 544.1,
544.2, and 544.3;
0
iv. Under section 1.d, under ``Operation'', remove and reserve account
548.1;
0
v. Under section 1.d, under ``Maintenance'', revise account 553.1, and
add accounts 553.2, and 553.3
0
vi. Under section 1.e, add accounts 555.2, and 555.3;
0
vii. Add sections 1.f, ``solar generation'', 1.g ``wind generation'',
and 1.h, ``other renewable generation'';
0
viii. Under section 2, under subtitle ``Operation'' remove and reserve
account 562.1;
0
ix. Under section 2, under subtitle ``Maintenance'', revise accounts
569.1, 569.2, and 569.3, and remove and reserve account 570.1;
0
x. Redesignate sections 4 ``Distribution Expenses'' through 8
``Administrative and General Expenses'', as sections 5 through 9;
0
xi. Add a new section 4, ``Energy Storage Expenses'';
0
xii. Under newly redesignated section 5, ``Distribution Expenses'',
remove and reserve account 584.1, revise account 592.2, and add
accounts 592.3, and 592.4; and
0
xiii. Under newly redesignated section 9, ``Administrative and General
Expenses'', add accounts 935.1, 935.2, and 935.3;
The revisions and additions read as follows:
Operation and Maintenance Expense Chart of Accounts
1. Power Production Expenses
a. steam power generation
* * * * *
Maintenance
* * * * *
513.1 Maintenance of computer hardware (Major only).
513.2 Maintenance of computer software (Major only).
513.3 Maintenance of communication equipment (Major only).
* * * * *
b. nuclear power generation
* * * * *
Maintenance
* * * * *
531.1 Maintenance of computer hardware (Major only).
531.2 Maintenance of computer software (Major only).
531.3 Maintenance of communication equipment (Major only).
* * * * *
c. hydraulic power generation
* * * * *
Maintenance
* * * * *
544.1 Maintenance of computer hardware (Major only).
544.2 Maintenance of computer software (Major only).
[[Page 69326]]
544.3 Maintenance of communication equipment (Major only).
* * * * *
d. other power generation
* * * * *
Operation
* * * * *
548.1 [Reserved]
* * * * *
Maintenance
* * * * *
553.1 Maintenance of computer hardware (Major only).
553.2 Maintenance of computer software (Major only).
553.3 Maintenance of communication equipment (Major only).
* * * * *
e. other power supply expenses
555.2 Bundled environmental credits.
555.3 Unbundled environmental credits.
* * * * *
f. solar generation
Operation
558.1 Operation supervision and engineering.
558.2 Solar panel generation and other plant operating expenses
(Major only).
558.3 [Reserved]
558.4 Rents.
558.5 Operation supplies and expenses (Nonmajor only).
Maintenance
558.6 Maintenance supervision and engineering (Major only).
558.7 Maintenance of solar panels, structures, and equipment
(Major only).
558.8 Maintenance of computer hardware (Major only).
558.9 Maintenance of computer software (Major only).
558.10 Maintenance of communication equipment (Major only).
558.11 Maintenance of miscellaneous solar generation plant
(Major only).
558.12 Maintenance of solar generation plant (Nonmajor only).
g. wind generation
Operation
558.13 Operation supervision and engineering.
558.14 Wind turbine generation and other plant operating
expenses (Major only).
558.15 [Reserved]
558.16 Rents.
558.17 Operation supplies and expenses (Nonmajor only).
Maintenance
558.18 Maintenance supervision and engineering (Major only).
558.19 Maintenance of wind turbines, structures, and equipment
(Major only).
558.20 Maintenance of computer hardware (Major only).
558.21 Maintenance of computer software (Major only).
558.22 Maintenance of communication equipment (Major only).
558.23 Maintenance of miscellaneous wind generation plant (Major
only).
558.24 Maintenance of wind generation plant (Nonmajor only).
h. other renewable generation
Operation
559.1 Operation supervision and engineering.
559.2 Other miscellaneous generation and other plant operating
expenses (Major only).
559.3 Fuel.
559.4 Rents.
559.5 Operation supplies and expenses (Nonmajor only).
Maintenance
559.6 Maintenance supervision and engineering (Major only).
559.7 Maintenance of structures (Major only).
559.8 [Reserved]
559.9 Maintenance of boilers (Major only).
559.10 Maintenance of generating and electric equipment (Major
only).
559.11 [Reserved]
559.12 Maintenance of computer hardware (Major only).
559.13 Maintenance of computer software (Major only).
559.14 Maintenance of communication equipment (Major only).
559.15 Maintenance of miscellaneous other renewable generation
plant (Major only).
559.16 Maintenance of other renewable generation plant (Nonmajor
only).
2. Transmission Expenses
Operation
* * * * *
562.1 [Reserved]
* * * * *
Maintenance
* * * * *
569.1 Maintenance of computer hardware (Major only).
569.2 Maintenance of computer software (Major only).
569.3 Maintenance of communication equipment (Major only).
* * * * *
570.1 [Reserved]
* * * * *
4. Energy Storage Expenses
Operation
577.1 Operation supervision and engineering.
577.2 Operation of energy storage equipment (Major only).
577.3 Storage fuel.
577.4 Rents.
577.5 Operation supplies and expenses (Nonmajor only).
Maintenance
578.1 Maintenance supervision and engineering (Major only).
578.2 Maintenance of energy storage equipment and structures
(Major only).
578.3 Maintenance of computer hardware (Major only).
578.4 Maintenance of computer software (Major only).
578.5 Maintenance of communication equipment (Major only).
578.6 Maintenance of miscellaneous other energy storage plant
(Major only).
578.7 Maintenance of other energy storage plant (Nonmajor only).
5. Distribution Expenses
Operation
* * * * *
584.1 [Reserved]
* * * * *
Maintenance
* * * * *
592.2 Maintenance of computer hardware (Major only).
592.3 Maintenance of computer software (Major only).
592.4 Maintenance of communication equipment (Major only).
* * * * *
9. Administrative and General Expenses
* * * * *
Maintenance
* * * * *
935.1 Maintenance of computer hardware (Major only).
935.2 Maintenance of computer software (Major only).
935.3 Maintenance of communication equipment (Major only).
* * * * *
0
11. Under Operation and Maintenance Expense Accounts:
0
i. Revise account 509;
0
ii. Add accounts 513.1, 513.2, 513.3, 531.1, 531.2, 531.3, 544.1,
544.2, and 544.3;
0
iii. Remove and reserve account 548.1;
0
iv. Revise account 553.1;
0
v. Add accounts 553.2, 553.3, 555.2, 555.3, 558.1 through 558.24, and
559.1 through 559.16;
0
vi. Remove and reserve account 562.1;
0
vii. Revise accounts 569.1, 569.2, and 569.3;
0
viii. Remove and reserve account 570.1;
0
ix. Add accounts 577.1, 577.2 through 577.5, and 578.1 through 578.7;
0
x. Remove and reserve account 584.1; and
0
xi. Add account 592.2, 592.3, 592.4, 935.1, 935.2, and 935.3.
The revisions and additions read as follows:
Operation and Maintenance Expense Accounts
* * * * *
509 Allowances.
This account shall include the cost of allowances expensed
concurrent with the monthly emissions. (See General Instruction No.
21.)
513.1 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
steam power generation subfunction. (See operating expense instruction
2.)
[[Page 69327]]
513.2 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the steam power generation subfunction. (See operating
expense instruction 2.)
513.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the steam power generation subfunction. (See operating expense
instruction 2.)
* * * * *
531.1 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
nuclear power generation subfunction. (See operating expense
instruction 2.)
531.2 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the nuclear power generation subfunction. (See
operating expense instruction 2.)
531.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the nuclear power generation subfunction. (See operating expense
instruction 2.)
* * * * *
544.1 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
hydraulic power generation subfunction. (See operating expense
instruction 2.)
544.2 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the hydraulic power generation subfunction. (See
operating expense instruction 2.)
544.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the hydraulic power generation subfunction. (See operating expense
instruction 2.)
* * * * *
548.1 [Reserved]
* * * * *
553.1 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
other power generation subfunction. (See operating expense instruction
2.)
553.2 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the other power generation subfunction. (See operating
expense instruction 2.)
553.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the other power generation subfunction. (See operating expense
instruction 2.)
* * * * *
555.2 Bundled environmental credits.
For environmental credits that were bundled with energy, this
account shall include the cost of environmental credits expensed
concurrent with the monthly usage. (See General Instruction No. 21.)
555.3 Unbundled environmental credits.
For environmental credits that were unbundled from energy, this
account shall include the cost of environmental credits expensed
concurrent with the monthly usage. (See General Instruction No. 21.)
* * * * *
558.1 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of
labor and expenses incurred in the general supervision and direction of
the operation of solar power generating stations. Direct supervision of
specific activities shall be charged to the appropriate account. (See
operating expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of solar power generating
stations.
Labor
1. Supervising solar production.
2. Operating solar panels, auxiliary apparatus and switching and
other electric equipment.
3. Operating switchboards, switch gear and electric control and
protective equipment.
4. Keeping electric plant log and records and preparing reports on
electric plant operations.
5. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
6. Cleaning electric plant equipment when not incidental to
maintenance work.
558.2 Solar panel generation and other plant operating expenses (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in operating solar generation and their auxiliary
apparatus, switch gear and other electric equipment to the points where
electricity leaves for conversion for transmission or distribution, or
are not readily assignable to other solar generation operation expense
accounts.
Labor
1. Operating switchboards, switch gear and electric control and
protective equipment.
2. Operating solar generators and auxiliary apparatus and switching
and other electric equipment.
3. Keeping electric plant log and records and preparing reports on
electric plant operations.
4. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
5. Cleaning electric plant equipment when not incidental to
maintenance work.
6. General clerical work.
7. Guarding and patrolling plant and yard.
8. Building service.
9. Care of grounds including snow removal, cutting grass, etc.
10. Miscellaneous labor.
Materials and Expenses
[[Page 69328]]
11. Lubricants and control system oils.
12. General operating supplies, such as tools, gaskets, packing
waste, gauge glasses, hose, indicating lamps, record and report forms,
etc.
13. First-aid supplies and safety equipment.
14. Employees' service facilities expenses.
15. Building service supplies.
16. Communication service.
17. Miscellaneous office supplies and expenses, printing and
stationery.
18. Transportation expenses.
19. Meals, traveling and incidental expenses.
20. Water for fire protection or general use.
21. Research, development, and demonstration expenses.
558.3 [Reserved]
558.4 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with solar power generation. (See
operating expense instruction 3.)
558.5 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of solar power generating stations.
Items
1. Lubricants and control system oils.
2. General operating supplies, such as tools, packing waste, hose,
indicating lamps, record and report forms, etc.
3. First-aid supplies and safety equipment.
4. Employees' service facilities expenses.
5. Building service supplies.
6. Communication service.
7. Miscellaneous office supplies and expenses, printing and
stationery.
8. Transportation expenses.
9. Meals, traveling and incidental expenses.
10. Water for fire protection or general use.
558.6 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred
in the general supervision and direction of maintenance of solar
generation facilities. Direct field supervision of specific jobs shall
be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
558.7 Maintenance of solar panels, structures, and equipment (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of solar structures, solar panels,
and other solar plant equipment, the book cost of which is includible
in account 338.2, Structures and Improvements, account 338.4, Solar
Panels, account 338.5, Collector System, account 338.6, Generator Step-
up Transformers (GSU), account 338.7, Inverters, and account 338.8,
Other Accessory Electrical Equipment. (See operating expense
instruction 2.)
558.8 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
solar generation subfunction. (See operating expense instruction 2.)
558.9 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the solar generation subfunction. (See operating
expense instruction 2.)
558.10 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the solar generation subfunction. (See operating expense instruction
2.)
558.11 Maintenance of miscellaneous solar generation plant (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous solar generation
plant, the book cost of which is includible in account 338.12,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
558.12 Maintenance of solar generation plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of solar generation plant the book
cost of which is includible in plant accounts 338.2 to 338.12,
inclusive. (See operating expense instruction 2.)
558.13 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of
labor and expenses incurred in the general supervision and direction of
the operation of wind power generating stations. Direct supervision of
specific activities shall be charged to the appropriate account. (See
operating expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of wind power generating
stations.
Labor
1. Supervising wind production.
2. Operating wind turbines, generators and auxiliary apparatus and
switching and other electric equipment.
3. Operating switchboards, switch gear and electric control and
protective equipment.
4. Keeping electric plant log and records and preparing reports on
electric plant operations.
5. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
6. Cleaning electric plant equipment when not incidental to
maintenance work.
558.14 Wind turbine generation and other plant operating expenses
(Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating wind generation and their auxiliary
apparatus, switch gear and other electric equipment to the points where
electricity leaves for conversion for transmission or distribution, or
are not readily assignable to other wind generation operation expense
accounts.
Labor
1. Operating switchboards, switch gear and electric control and
protective equipment.
2. Operating wind turbines, generators and auxiliary apparatus and
switching and other electric equipment.
3. Keeping electric plant log and records and preparing reports on
electric plant operations.
4. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
5. Cleaning electric plant equipment when not incidental to
maintenance work.
6. General clerical work.
7. Guarding and patrolling plant and site.
8. Building service.
9. Care of grounds including snow removal, cutting grass, etc.
10. Miscellaneous labor.
Materials and Expenses
11. Lubricants and control system oils.
[[Page 69329]]
12. General operating supplies, such as tools, gaskets, packing
waste, gauge glasses, hose, indicating lamps, record and report forms,
etc.
13. First-aid supplies and safety equipment.
14. Employees' service facilities expenses.
15. Building service supplies.
16. Communication service.
17. Miscellaneous office supplies and expenses, printing and
stationery.
18. Transportation expenses.
19. Meals, traveling and incidental expenses.
20. Water for fire protection or general use.
21. Research, development, and demonstration expenses.
558.15 [Reserved]
558.16 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with wind power generation. (See
operating expense instruction 3.)
558.17 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of wind power generating stations.
Items
1. Lubricants and control system oils.
2. General operating supplies, such as tools, packing waste, hose,
indicating lamps, record and report forms, etc.
3. First-aid supplies and safety equipment.
4. Employees' service facilities expenses.
5. Building service supplies.
6. Communication service.
7. Miscellaneous office supplies and expenses, printing and
stationery.
8. Transportation expenses.
9. Meals, traveling and incidental expenses.
10. Water for fire protection or general use.
558.18 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred
in the general supervision and direction of maintenance of wind
generation facilities. Direct field supervision of specific jobs shall
be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
558.19 Maintenance of wind turbines, structures, and equipment (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of wind structures, the book cost
of which is includible in account 338.21, Structures and Improvements,
account 338.23, Wind Turbines, account 338.24, Wind Towers and
Fixtures, account 338.26, Collector System, account 338.27, Generator
Step-up Transformers (GSU), account 338.28, Inverters, and account
338.29, Other Accessory Electrical Equipment. (See operating expense
instruction 2.)
558.20 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
wind generation subfunction. (See operating expense instruction 2.)
558.21 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the wind generation subfunction. (See operating
expense instruction 2.)
558.22 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the wind generation subfunction. (See operating expense instruction 2.)
558.23 Maintenance of miscellaneous wind generation plant (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous wind generation
plant, the book cost of which is includible in account 338.33,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
558.24 Maintenance of wind generation plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of wind generation plant the book
cost of which is includible in plant accounts 338.21 to 338.33,
inclusive. (See operating expense instruction 2.)
559.1 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of
labor and expenses incurred in the general supervision and direction of
the operation of other renewable power generating stations. Direct
supervision of specific activities shall be charged to the appropriate
account. (See operating expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of other renewable power
generating stations.
Labor
1. Supervising other renewable production.
2. Operating other renewable prime movers, generators and auxiliary
apparatus and switching and other electric equipment.
3. Operating switchboards, switch gear and electric control and
protective equipment.
4. Keeping electric plant log and records and preparing reports on
electric plant operations.
5. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
6. Cleaning electric plant equipment when not incidental to
maintenance work.
559.2 Other miscellaneous generation and other plant operating
expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating other renewable generation and their
auxiliary apparatus, switch gear and other electric equipment to the
points where electricity leaves for conversion for transmission or
distribution, or are not readily assignable to other renewable
generation operation expense accounts.
Labor
1. Operating switchboards, switch gear and electric control and
protective equipment.
2. Operating other renewable prime movers, generators and auxiliary
apparatus and switching and other electric equipment.
3. Keeping electric plant log and records and preparing reports on
electric plant operations.
4. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
5. Cleaning electric plant equipment when not incidental to
maintenance work.
6. General clerical work.
7. Guarding and patrolling plant and yard.
8. Building service.
9. Care of grounds including snow removal, cutting grass, etc.
[[Page 69330]]
10. Miscellaneous labor.
Materials and Expenses
11. Lubricants and control system oils.
12. General operating supplies, such as tools, gaskets, packing
waste, gauge glasses, hose, indicating lamps, record and report forms,
etc.
13. First-aid supplies and safety equipment.
14. Employees' service facilities expenses.
15. Building service supplies.
16. Communication service.
17. Miscellaneous office supplies and expenses, printing and
stationery.
18. Transportation expenses.
19. Meals, traveling and incidental expenses.
20. Water for fire protection or general use.
21. Research, development, and demonstration expenses.
559.3 Fuel.
This account shall include the cost delivered at the station (see
account 151, Fuel Stock, for Major utilities, and account 154, Plant
Materials and Operating Supplies, for Nonmajor utilities) of all fuel,
such as electrolytes, hydrogen, renewable natural gas, algae, etc.,
used in other power generation.
559.4 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with other renewable power
generation. (See operating expense instruction 3.)
559.5 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of other renewable power generating stations.
Items
1. Lubricants and control system oils.
2. General operating supplies, such as tools, packing waste, hose,
indicating lamps, record and report forms, etc.
3. First-aid supplies and safety equipment.
4. Employees' service facilities expenses.
5. Building service supplies.
6. Communication service.
7. Miscellaneous office supplies and expenses, printing and
stationery.
8. Transportation expenses.
9. Meals, traveling and incidental expenses.
10. Water for fire protection or general use.
559.6 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred
in the general supervision and direction of maintenance of other
renewable power generation facilities. Direct field supervision of
specific jobs shall be charged to the appropriate maintenance account.
(See operating expense instruction 1.)
559.7 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of other renewable structures, the
book cost of which is includible in account 339.2, Structures and
Improvements, and account 339.3 Fuel Holders. (See operating expense
instruction 2.)
559.8 [Reserved]
559.9 Maintenance of boilers (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of other renewable plant, the book
cost of which is includible in account 339.4, Boilers. (See operating
expense instruction 2.)
559.10 Maintenance of generating and electric equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 339.6. Generators, and account 339.8, Other
Accessory Electrical Equipment. (See operating expense instruction 2.)
559.11 [Reserved]
559.12 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
other renewable generation subfunction. (See operating expense
instruction 2.)
559.13 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the other renewable generation subfunction. (See
operating expense instruction 2.)
559.14 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the other renewable generation subfunction. (See operating expense
instruction 2.)
559.15 Maintenance of miscellaneous other renewable generation plant
(Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous other renewable
generation plant, the book cost of which is includible in account
339.12, Miscellaneous Power Plant Equipment. (See operating expense
instruction 2.)
559.16 Maintenance of other renewable generation plant (Nonmajor
only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of other renewable generation
plant the book cost of which is includible in plant accounts 339.2 to
339.12, inclusive. (See operating expense instruction 2.)
* * * * *
562.1 [Reserved]
* * * * *
569.1 Maintenance of computer hardware (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
transmission function. (See operating expense instruction 2.)
569.2 Maintenance of computer software. (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the transmission function. (See operating expense
instruction 2.)
Items
1. Telephone support.
2. Onsite support.
3. Software updates and minor revisions.
569.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the transmission function. (See operating expense instruction 2.)
* * * * *
570.1 [Reserved]
* * * * *
[[Page 69331]]
577.1 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of
labor and expenses incurred in the general supervision and direction of
the operation of energy storage plant. Direct supervision of specific
activities shall be charged to the appropriate account. (See operating
expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of energy storage equipment.
Labor
1. Supervising energy storage equipment operation.
2. Operating energy storage equipment and auxiliary apparatus and
switching and other electric equipment.
3. Operating switchboards, switch gear and electric control and
protective equipment.
4. Keeping electric plant log and records and preparing reports on
electric plant operations.
5. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
6. Cleaning electric plant equipment when not incidental to
maintenance work.
577.2 Operation of energy storage equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating energy storage plant and their auxiliary
apparatus, switch gear and other electric equipment to the points where
electricity leaves for conversion for transmission or distribution, or
are not readily assignable to other energy storage operation expense
accounts.
Labor
1. Operating switchboards, switch gear and electric control and
protective equipment.
2. Operating energy storage and auxiliary apparatus and switching
and other electric equipment.
3. Keeping electric plant log and records and preparing reports on
electric plant operations.
4. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric
plant.
5. Cleaning electric plant equipment when not incidental to
maintenance work.
6. General clerical work.
7. Guarding and patrolling plant and yard.
8. Building service.
9. Care of grounds including snow removal, cutting grass, etc.
10. Miscellaneous labor.
Materials and Expenses
11. Lubricants and control system oils.
12. General operating supplies, such as tools, gaskets, packing
waste, gauge glasses, hose, indicating lamps, record and report forms,
etc.
13. First-aid supplies and safety equipment.
14. Employees' service facilities expenses.
15. Building service supplies.
16. Communication service.
17. Miscellaneous office supplies and expenses, printing and
stationery.
18. Transportation expenses.
19. Meals, traveling and incidental expenses.
20. Water for fire protection or general use.
21. Research, development, and demonstration expenses.
577.3 Storage fuel.
This account shall include the cost delivered at the station (see
account 151, Fuel Stock, for Major utilities, and account 154, Plant
Materials and Operating Supplies, for Nonmajor utilities) of all fuel,
such as electrolytes, hydrogen, renewable natural gas, algae, etc.,
used in energy storage.
577.4 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with energy storage. (See operating
expense instruction 3.)
577.5 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of energy storage equipment.
Items
1. Lubricants and control system oils.
2. General operating supplies, such as tools, packing waste, hose,
indicating lamps, record and report forms, etc.
3. First-aid supplies and safety equipment.
4. Employees' service facilities expenses.
5. Building service supplies.
6. Communication service.
7. Miscellaneous office supplies and expenses, printing and
stationery.
8. Transportation expenses.
9. Meals, traveling and incidental expenses.
10. Water for fire protection or general use.
578.1 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred
in the general supervision and direction of maintenance of energy
storage facilities. Direct field supervision of specific jobs shall be
charged to the appropriate maintenance account. (See operating expense
instruction 1.)
578.2 Maintenance of energy storage equipment and structures (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of energy storage structures,
energy storage equipment, and other energy storage plant the book cost
of which is includible in account 387.2, Structures and Improvements,
account 387.3, Energy Storage Equipment, account 387.5, Collector
System, account 387.6, Generator Step-up Transformers (GSU), and
account 387.7, Inverters. (See operating expense instruction 2.)
578.3 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
energy storage function. (See operating expense instruction 2.)
578.4 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the energy storage function. (See operating expense
instruction 2.)
578.5 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the energy storage function. (See operating expense instruction 2.)
578.6 Maintenance of miscellaneous other energy storage plant (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous energy storage plant,
the book cost of which is includible in account 387.11, Miscellaneous
Energy Storage Equipment. (See operating expense instruction 2.)
578.7 Maintenance of other energy storage plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses
[[Page 69332]]
incurred in the maintenance of energy storage plant the book cost of
which is includible in plant accounts 387.2 to 387.11, inclusive. (See
operating expense instruction 2.)
584.1 [Reserved]
* * * * *
592.2 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware serving the
distribution function.
592.3 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products serving the distribution function. (See operating expense
instruction 2.)
592.4 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment serving
the distribution function. (See operating expense instruction 2.)
* * * * *
935.1 Maintenance of computer hardware (Major only).
The account shall include the cost of labor, materials used and
expenses incurred in the maintenance of computer hardware used for
administrative and general purposes. (See operating expense instruction
2.)
935.2 Maintenance of computer software (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for annual computer software license renewals, annual
software update services and the cost of ongoing support for software
products used for administrative and general purposes. (See operating
expense instruction 2.)
935.3 Maintenance of communication equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of communication equipment used
for administrative and general purposes. (See operating expense
instruction 2.)
Note: The following Appendix will not be published in the Code
of Federal Regulations.
X. Appendix A: New and Amended Form 1/1F/3-Q (Electric)
(The form changes were done considering a PDF format but would
ultimately be configured for XBRL presentation. The following forms
schedules represent an option for implementation and do not necessarily
represent how the schedule will appear once designed, developed, and
deployed.)
Note: Deletions are in brackets and Additions are in italics.
As indicated in the labels at the bottom of each schedule, the
first schedules show changes to the pages of FERC Form No. 1 as well as
pages that are the same in FERC Form Nos. 1-F and 3-Q (stating where
page numbers differ), followed by schedules that have changes that only
affect FERC Form No. 1-F, and lastly schedule changes to FERC Form No.
60.
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[FR Doc. 2023-14994 Filed 10-4-23; 8:45 am]
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