Document ID: FERC-2022-1254-0001
Agency: ferc
Document Type: Proposed Rule
Title: Accounting and Reporting Treatment of Certain Renewable Energy Assets
Posted Date: 2022-10-03T04:00Z

[Federal Register Volume 87, Number 190 (Monday, October 3, 2022)]
[Proposed Rules]
[Pages 59870-59963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16610]

[[Page 59869]]

Vol. 87

Monday,

No. 190

October 3, 2022

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; 
Proposed Rule

  Federal Register / Vol. 87, No. 190 / Monday, October 3, 2022 / 
Proposed Rules  

[[Page 59870]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 101

[Docket No. RM21-11-000]

Accounting and Reporting Treatment of Certain Renewable Energy 
Assets

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission is issuing a notice 
of proposed rulemaking proposing reforms to the Uniform System of 
Accounts (USofA) for public utilities and licensees to include new 
accounts for wind, solar, and other non-hydro renewable assets; create 
a new functional class for energy storage accounts; codify the 
accounting treatment of renewable energy credits; and create new 
accounts within existing functions for hardware, software, and 
communication equipment. We propose revisions to the relevant FERC 
forms to accommodate these changes. We also seek comment on whether the 
Chief Accountant should issue guidance on the accounting for hydrogen. 
The Commission invites all interested persons to submit comments on the 
proposed reforms and in response to specific questions.

DATES: Comments are due November 17, 2022.

ADDRESSES: Comments, identified by docket number, may be filed in the 
following ways. Electronic filing through https://www.ferc.gov, is 
preferred.
     Electronic Filing: Documents must be filed in acceptable 
native applications and print-to-PDF, but not in scanned or picture 
format.
     For those unable to file electronically, comments may be 
filed by U.S. Postal Service mail or by hand (including courier) 
delivery.
    [cir] Mail via U.S. Postal Service Only: Addressed to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE, Washington, DC 20426.
    [cir] For delivery via any other carrier (including courier): 
Deliver to: Federal Energy Regulatory Commission, 12225 Wilkins Avenue, 
Rockville, MD 20852.
    The Comment Procedures Section of this document contains more 
detailed filing procedures.

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].
    Sarah Greenberg (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC 20426, (202) 502-6230, [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

 
                                                        Paragraph  Nos.
 
I. Introduction......................................                  1
II. Background.......................................                  4
    A. Previous Changes to the USofA.................                  4
    B. Locke Lord Petition...........................                  9
    C. Notice of Inquiry.............................                 12
    D. Comments......................................                 16
        1. Non-Hydro Renewables......................                 18
        2. Energy Storage............................                 21
        3. Renewable Energy Credits..................                 24
        4. Reporting and Ratemaking..................                 26
III. Discussion......................................                 27
    A. Need for Reform...............................                 27
    B. Proposed Revisions............................                 32
        1. Non-Hydro Renewables......................                 33
        2. Energy Storage............................                 44
        1. Renewable Energy Credits..................                 52
        4. Hardware, Software, and Communication                      58
         Equipment...................................
    C. Reporting.....................................                 62
    D. Hydrogen Guidance.............................                 68
IV. Information Collection Statement.................                 69
V. Environmental Analysis............................                 79
VI. Regulatory Flexibility Act.......................                 80
VII. Comment Procedures..............................                 82
VIII. Document Availability..........................                 85
 

I. Introduction

    1. The Federal Energy Regulatory Commission (Commission or FERC) is 
proposing reforms to modernize the Uniform System of Accounts (USofA) 
\1\ to account for the rapid changes in technology and resource mix 
over the last few decades. These reforms are intended to add to the 
USofA functional detail needed to inform the Commission's 
responsibilities under the Federal Power Act (FPA) to ensure that rates 
remain just and reasonable.
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    \1\ Uniform System of Accounts Prescribed for Public Utilities 
and Licensees Subject to the Provisions of the Federal Power Act, 18 
CFR part 101 (2021). Unless otherwise indicated, references to the 
USofA in this notice of proposed rulemaking refer to the USofA for 
public utilities and licensees.
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    2. Specifically, we propose to: (1) create new accounts for wind, 
solar, and other non-hydro renewable assets; (2) establish a new 
functional class for energy storage accounts; (3) codify the accounting 
treatment of renewable energy credits (REC); and (4) create new 
accounts within existing functions for hardware, software, and 
communication equipment. These changes would also require corresponding 
changes to FERC Form Nos. 1, 1-F, 3-Q (electric), and 60.\2\ We seek 
comment on these

[[Page 59871]]

proposed reforms. We also seek comment on whether the Chief Accountant 
should issue guidance on the accounting for hydrogen that would apply 
to both public utilities and licensees and to natural gas companies.
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    \2\ Proposed edits to the FERC Form No. 60 Annual Report of 
Centralized Service Companies, governed under the Public Utility 
Holding Company Act (PUHCA), are the result of proposed changes to 
the FERC forms for public utilities and licensees from which FERC 
Form No. 60 summarily references accounts.
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    3. These proposed changes would account for new technologies, 
provide transparency to inform meaningful ratemaking, and provide 
useful information to stakeholders. Additionally, improving the 
accounting instructions so that they specifically describe the relevant 
equipment may result in fewer disputes about which accounts to use for 
which equipment and improve regulatory certainty. The use of these new 
discrete accounts based on functional use would also enable more 
reasonable estimates for plant service lives and their recorded 
depreciation, which in turn would result in more meaningful rate base, 
return, and cost of service measures.

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.\3\ As such, the USofA 
has been modified over time to account for changing technological, 
legal, and market conditions.
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    \3\ 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.\4\ 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 the Commission's intention in its 
accounting rules is to provide sound and uniform accounting rather than 
to dictate any particular ratemaking result.\5\
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    \4\ Revisions to Unif. Sys. of Accts. to Acct. for Allowances 
under the Clean Air Act Amends. of 1990 & Reguly-Created Assets & 
Liabilities & to Form Nos. 1, 1-F, 2 and 2-A, Order No. 552, 58 FR 
17982 (Apr. 7, 1993), FERC Stats. & Regs. ] 30,967 (1993) (cross-
referenced at 62 FERC ] 61,299).
    \5\ Id. at 17986.
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    6. In 2013, the Commission issued Order No. 784, which revised the 
USofA and related forms to address energy storage.\6\ The Commission 
created: (1) new electric plant and associated operating and 
maintenance (O&M) expense accounts to record the investment and O&M 
costs of 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 and amended existing 
schedules in those forms and FERC Form No. 3-Q (electric) to report 
operational and statistical data on storage assets.\7\
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    \6\ Third-Party Provision of Ancillary Servs.; Acct. & Fin. 
Reporting for New Elec. Storage Tech., 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).
    \7\ Id. P 123.
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    7. Specifically, the Commission created electric plant accounts for 
energy storage assets in the existing functional classifications: 
Account 348 (Energy Storage Equipment--Production), Account 351 (Energy 
Storage Equipment--Transmission), and Account 363 (Energy Storage 
Equipment--Distribution).\8\ The Commission created corresponding new 
accounts for O&M expenses: 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 classified as 
transmission; and Account 582.1 (Operation of Energy Storage Equipment) 
and Account 592.2 (Maintenance of Energy Storage Equipment) for energy 
storage classified as distribution.\9\
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    \8\ Id. P 141.
    \9\ 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 asset 
serves: where an energy storage asset performs more than one purpose or 
function, the cost of the asset is split among the accounts based on 
the functions performed and approved rate recovery.\10\ 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 was 
unpersuaded because utilities that recover the costs of storage 
operations on a cost of service basis must already maintain use and 
cost allocation information on the assets.\11\ 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.\12\
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    \10\ Id. P 126.
    \11\ Id. P 133.
    \12\ 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 are properly booked to the ``Other 
Production'' Accounts 343 (Prime Movers), 344 (Generators), and 345 
(Accessory Electric Equipment).\13\ Specifically, Locke Lord proposed 
to book: (1) wind turbines, solar modules, combiner circuits, and 
inverters to Account 343 (Prime 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 
collection systems, power cables, conduit and underground duct banks, 
circuit breakers, disconnect switches and accessories, grounding 
conductors and grounding transformers, collection system buses, main 
and/or auxiliary transfer buses, collection system control systems, 
Supervisory Control and Data Acquisition (SCADA) systems, static 
capacitors and reactors, and collector system substations to Account 
345 (Accessory Electric Equipment).\14\
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    \13\ Locke Lord LLP, 174 FERC ] 61,033, at P 1 (2021).
    \14\ Id. P 6.
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    10. Some commenters in that proceeding argued that the petition 
booked an inappropriate amount of costs, including costs related to the 
collector system and SCADA, into Account 345 (Accessory Electric 
Equipment), which are included in reactive power rates pursuant to the 
American Electric Power Service Corp. (AEP) Methodology.\15\ Some 
commenters, including the Edison Electric Institute (EEI), suggested 
that the Commission consider creating new accounts for wind, solar, and 
other non-hydro renewable assets to resolve this dispute.\16\
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    \15\ Id. PP 10, 13. 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.
    \16\ Id. PP 8, 13, 16.
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    11. The Commission denied the petition, noting that the record 
reflected

[[Page 59872]]

substantial disagreement about equipment functions and 
categorizations.\17\ 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.\18\ 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 
methods for both synchronous and nonsynchronous resource compensation 
(86 FR 67933 (Nov. 30, 2021)).
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    \17\ Id. P 19.
    \18\ 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 energy assets.\19\ Specifically, the Commission 
sought comment on: (1) whether to create new accounts for non-hydro 
renewable energy generating assets; \20\ (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 
RECs; and (4) whether there are rate setting implications of these 
accounting and reporting changes.
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    \19\ Acct. & Rep. Treatment of Certain Renewable Energy Assets, 
86 FR 7086 (Jan. 26, 2021), 174 FERC ] 61,032 (2021) (NOI).
    \20\ The NOI defined non-hydro renewable 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 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 its 
hydrocarbon source being consumed, due to its carbon release being 
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, but does 
not contain any accounts designed for solar, wind, or other non-hydro 
renewable generating assets.\21\ The Commission noted that companies 
record non-hydro renewable assets in the Other Production accounts of 
the USofA, but that parties have disagreed which Other Production 
accounts are appropriate for these assets.\22\ For example, the 
Commission noted that no plant account clearly captures solar panels, 
PV inverters, wind generation towers, or the computer hardware and 
software required to operate wind and solar generators.\23\ Similarly, 
the Commission explained that the O&M accounts do not clearly 
accommodate costs to record maintenance of wind and solar facilities, 
and some of the O&M accounts (such as Account 547 (Fuel)) are entirely 
inapplicable to wind and solar generation.\24\
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    \21\ Id. P 2.
    \22\ Id. PP 2-3.
    \23\ Id. PP 6-9.
    \24\ Id. P 9.
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    14. The Commission also explained that the USofA accounts do not 
explicitly address the purchase, generation, or use of RECs.\25\ The 
Commission has previously found that RECs are analogous to sulfur 
dioxide emission allowances, which were addressed in Order No. 552. 
Order No. 552 classified emission allowances as inventoriable items and 
established new inventory and expense accounts to record the 
allowances.\26\ 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.\27\
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    \25\ Id. PP 4, 13.
    \26\ Id. (citing Order No. 552, FERC Stats. & Regs. ] 30,967).
    \27\ Id. PP 4, 13-14 (citing Ameren Ill. Co., 170 FERC ] 61,267, 
at P 52 (2020)).
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    15. The Commission also noted that any proposed additions and 
modifications to the USofA would require corresponding changes to FERC 
Form No. 1 and could have a significant and measurable impact on 
rates.\28\
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    \28\ Id. PP 12, 16.
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D. Comments

    16. The Commission received four initial comments and three reply 
comments in response to the NOI. All commenters acknowledged the shift 
in generation mix towards increased wind and solar and the need for 
Commission guidance on how the costs of such facilities should be 
booked in the USofA. Commenters also suggested that the Commission 
convene a technical conference in this docket.
    17. Comments generally addressed four topics: (1) the creation of 
new accounts for non-hydro renewables; (2) accounting for RECs; (3) 
addressing energy storage accounts; and (4) reporting and ratemaking 
impacts of the proposed changes.
1. Non-Hydro Renewables
    18. EEI and Alliant Energy (Alliant) support the creation of new 
accounts for non-hydro renewable resources.\29\ EEI and Alliant state 
that there are fundamental differences between traditional thermal 
resources and non-hydro renewable resources and that existing accounts 
do not and cannot accurately reflect the costs of non-hydro renewable 
assets.\30\ EEI and Alliant both argue that the need for new accounts 
for non-hydro renewables is illustrated when such resources seek 
compensation for the provision of reactive power, as there are often 
disputes over whether collector systems (i.e., facilities physically 
located between the high side of the generator step-up transformer and 
the transmission sub-station) should be included in reactive power 
rates.\31\ EEI and Alliant state that these types of reactive power 
cases are usually set for hearing and settlement judge proceedings, 
which is a lengthy and costly process that could be mitigated with 
Commission guidance.\32\ EEI's comment included an initial list of 
proposed accounts that could be developed for non-hydro renewable 
resources.\33\ EEI specifically requests that the new accounts provide 
separate sub-system accounts for each type of renewable generation 
facility in order to identify the ways that these resources provide 
value to the grid.\34\ EEI also acknowledges that additional accounts 
may be needed as new technologies are developed, such as hydrogen, 
tidal and wave energy,\35\ and synthetic or biofuels.\36\
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    \29\ EEI Comments at 2-5 (filed Mar. 29, 2021); Alliant Comments 
at 1-3 (filed Mar. 29, 2021).
    \30\ EEI Comments at 4; Alliant Comments at 3.
    \31\ EEI Comments at 14; Alliant Comments at 3-5.
    \32\ EEI Comments at 14; Alliant Comments at 5.
    \33\ EEI Comments at 17-23.
    \34\ Id. at 4.
    \35\ The US does not have any tidal or wave generation units in 
operation, although there are demonstration projects being 
developed, but optimization of these systems is limited to certain 
coastal regions. EIA, Tidal Power, (Sept. 2021), https://www.eia.gov/energyexplained/hydropower/tidal-power.php; EIA, Wave 
Power, (Sept. 2021), https://www.eia.gov/energyexplained/hydropower/wave-power.php.
    \36\ EEI Comments at 4-5.
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    19. In contrast, the American Clean Power Association (ACP) and 
Solar Energy Industries Association (SEIA) argue that the current 
``Other Production'' accounts can accommodate specific wind and solar 
generating equipment.\37\ ACP explains that the typical configuration 
of wind and solar facilities contains a low voltage step-up transformer 
converting voltage to 34.5 kV connected to collection system feeders, 
which are then connected to a collection system bus located in the 
facility substation, static capacitors and/or reactors that supplement 
the reactive

[[Page 59873]]

power production capability, and a high voltage generator step-up 
transformer that converts the voltage to the transmission level.\38\ 
ACP and SEIA argue, similar to the Docket No. AC20-103 petition, that 
the Commission should clarify that: (1) wind turbines, wind turbine 
generators, solar panels, combiner circuits, and inverters should be 
booked to Account 343 (Prime Movers) (or, alternatively, Account 344 
(Generators)); and (2) low-voltage step-up transformers, collection 
systems, capacitors, breakers, switches and cabling, and communication 
and control equipment (including SCADA) should be booked to Account 345 
(Accessory Electric Equipment).\39\ ACP and SEIA contend that the above 
classifications would allow renewable generators to receive the 
appropriate level of reactive power compensation and relieve the wave 
of reactive power litigation.\40\ However, SEIA and ACP both 
specifically note that they do not oppose the creation of new accounts, 
although they do not believe creating new accounts is worth the time or 
investment, as they believe the existing accounts are sufficient.\41\ 
ACP also states that, if the Commission creates new accounts, it should 
provide guidance regarding how the new accounts should be treated for 
purposes of reactive power compensation.\42\
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    \37\ ACP Comments at 3 (filed Mar. 29, 2021); SEIA Comments at 
1-2 (filed Mar. 29, 2021).
    \38\ ACP Comments at 4-6.
    \39\ Id. at 7-15; SEIA Comments at 6.
    \40\ ACP Comments at 2; SEIA Comments at 7-8.
    \41\ ACP Comments at 7-8, 15-16; SEIA Comments at 4.
    \42\ ACP Comments at 16.
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    20. In reply comments, EEI rebuts the suggestion that the current 
``Other Production'' accounts could be used for wind and solar 
assets.\43\ In so doing, EEI contests ACP's assertion that there is a 
typical configuration for wind and solar resources.\44\ For example, 
EEI notes that some wind facility designs have the first step-up in the 
nacelle, whereas others are designed with the first step-up transformer 
at the base of the nacelle. EEI also points out that there are 
differences in opinion concerning how equipment is classified.\45\ EEI 
also contends that new configurations are likely to come in the future 
due to the pace of change in the resource mix and technological 
advancements.\46\ All of this, EEI argues, supports the need for new 
accounts.\47\ EEI states that, once the Commission decides the 
appropriate accounting, that will serve as the basis for ratemaking 
instruction, which will help provide regulatory certainty and resolve 
reactive power compensation issues.\48\
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    \43\ EEI Comments at 2-3.
    \44\ Id. at 3.
    \45\ Id. at 4.
    \46\ Id. at 3-4.
    \47\ Id. at 4.
    \48\ Id. at 5.
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2. Energy Storage
    21. The Energy Storage Association (ESA) requests a discussion 
about accounting for energy storage in a technical conference in this 
docket.\49\ ESA did not discuss its preference for accounting for 
storage resources.
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    \49\ ESA Comments at 1-2 (filed Apr. 26, 2021).
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    22. EEI also suggests that the Commission use this proceeding as an 
opportunity to modify the existing energy storage accounts.\50\ 
Specifically, EEI recommends that the Commission replace the existing 
energy storage accounts with a separate function for energy storage, 
separate from production, transmission, and distribution, similar to 
the General Plant account.\51\ EEI states that such an approach is 
appropriate because energy storage can provide generation, 
transmission, and distribution services, but it is difficult to track 
frequent (sometimes daily) changes between functions within a utility's 
books.\52\ EEI proposes that separate Plant Accounts could be 
established within the new storage function to designate different 
types of storage, such as batteries/chemical, compressed air, 
flywheels, superconducting magnetic storage, and thermal.\53\ EEI 
argues that this approach would assist in depreciation because separate 
accounts for each energy storage modality would facilitate the analysis 
of asset lives for determining depreciation rates for similar 
technologies.\54\ EEI argues that this approach would also assist in 
ratemaking, because the asset, depreciation, and O&M costs could be 
allocated to the appropriate functions using an analysis based on the 
usage of the storage asset, consistent with Order No. 784.
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    \50\ EEI Comments at 6-9 (filed March 29, 2021).
    \51\ Id. at 7.
    \52\ Id. at 8.
    \53\ Id. at 8-9.
    \54\ Id. at 9.
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    23. ACP contests EEI's suggestion to replace the energy storage 
accounts, arguing that it is inappropriate to eliminate the existing 
storage accounts for production, transmission, and distribution 
functions.\55\ In particular, ACP argues that the General Plant account 
is not an appropriate analogy for storage: ACP contends that storage is 
not retired on a schedule because it is depreciated based on recovering 
the service value over the useful life.\56\ ACP also cautions that, if 
the Commission considers replacing the energy storage accounts, it 
should do so in view of the movement to characterize storage as 
transmission and with awareness of the potential for storage to be 
initially used to address a transmission reliability need, but to do so 
in larger MW than is needed to address the transmission need.\57\
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    \55\ ACP Comments at 6-7.
    \56\ Id. at 7.
    \57\ Id. at 8.
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3. Renewable Energy Credits
    24. EEI supports formalizing the accounting requirements for RECs 
and similar instruments such as zero-emission credits (ZEC).\58\ EEI 
cautions that the long-time existence of diverse accounting for RECs 
has been incorporated into both federal and retail ratemaking, so it 
will be important for the Commission to consider these varying 
treatments and provide a transition period to avoid unnecessary cost, 
complexity, and unintended changes in ratemaking.\59\
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    \58\ EEI Comments at 9-13.
    \59\ Id. at 10-11.
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    25. EEI also indicates that the Commission should consider, among 
other things, the following topics related to the treatment of RECs: 
(1) RECs can be acquired in a number of ways, and there may not always 
be explicitly identifiable costs (e.g., if RECs are created by the 
operation of an utility's own generating facility or purchased as part 
of a contract that includes other products); (2) RECs may be used for 
more than one purpose (operational and/or nonoperational)--some 
companies acquire RECs to trade, whereas others use them to comply with 
clean energy regulations; and (3) there may be other instruments with 
similar economic characteristics that the Commission should include in 
these updates.\60\
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    \60\ Id. at 11-13.
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4. Reporting and Ratemaking
    26. EEI recognizes that, as the Commission noted in the NOI, 
additions and modifications to the USofA will require corresponding 
changes to FERC Form No. 1, and these changes could impact some rates, 
particularly in the reactive power context.\61\ EEI states that changes 
to FERC Form No. 1 and FERC Form No. 3-Q will be required to allow 
reporting of new accounts.\62\ EEI also specifically requests that the 
Commission add a new page to the forms for reporting Renewable 
Generating Plants, similar to existing pages 402-409 for Generating 
Plant

[[Page 59874]]

Statistics, in which companies should report solar, wind, and other 
non-hydro renewable plant with 10,000 kW or greater installed capacity. 
EEI specifically notes that FERC Form No. 1 pages 204-207, 219, 320-
323, 336, 352-353, 401a, 414-416, and 419-420 would need to be updated 
to reflect a new separate function for energy storage assets. To 
address the ratemaking impacts of new accounts, EEI suggests that the 
Commission allow affected utilities to propose the necessary changes to 
formula rates as part of single-issue ratemaking filings.\63\
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    \61\ Id. at 5-6, 13-15.
    \62\ Id. at 5-6.
    \63\ Id. at 15 (citing Promoting Transmission Investment through 
Pricing Reform, Order No. 679, 71 FR 43294 (July 31, 2006), 116 FERC 
] 61,057, order on reh'g, Order No. 679-A, 72 FR 1152 (Jan. 10, 
2007), 117 FERC ] 61,345, at P 98 (2006), order on reh'g, 119 FERC ] 
61,062 (2007) (``[A]pplicants for single-issue ratemaking are only 
required to address cost and rate issues associated with the new 
investment and therefore are not obligated to justify the 
reasonableness of unchanged rates'')).
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III. Discussion

A. Need for Reform

    27. The USofA has not been significantly modified since the 
Commission issued Order No. 784 in 2013. The USofA does not address 
many technological and economic developments, such as the growth in 
non-hydro renewable generating facilities and RECs, among others. In 
the absence of clear guidance on these topics, the industry has 
disagreed on how to account for such items in the USofA.
    28. As discussed in the NOI, the USofA contains discrete production 
accounts for Steam, Nuclear, Hydraulic, and Other Production.\64\ 
However, the USofA does not contain any production accounts designed 
specifically for solar, wind, or other non-hydro renewable generating 
assets. Therefore, electric utilities currently record non-hydro 
renewable assets in the Other Production accounts of the USofA. This 
approach appears to be inadequate. As the record in Docket No. AC20-103 
demonstrates, the lack of clarity on how to account for non-hydro 
renewable assets has led to disputes about which equipment belongs in 
which accounts. Renewable energy technologies such as wind and solar 
continue to expand and develop at a rapid pace, and now make up a 
significant portion of electricity production within FERC's accounting, 
reporting, and ratemaking jurisdiction. We also note that the NOI 
commenters all indicated that the Commission needs to address the 
accounting for non-hydro renewables.\65\ This is due to non-hydro 
renewables having varied and distinct characteristics from existing 
electric production subfunctions within the USofA.
---------------------------------------------------------------------------

    \64\ 18 CFR part 101; Acct. & Fin. Reporting for Pub. Utils. 
Including RTOs, Order No. 668, 70 FR 77627 (Dec. 30, 2005), 113 FERC 
] 61,276, at P 59 (2005).
    \65\ See supra notes 30, 42.
---------------------------------------------------------------------------

    29. Similarly, new accounts appear to be needed for energy storage. 
In response to the NOI, commenters requested that the Commission 
address energy storage in this proceeding.\66\ The Commission in Order 
No. 784 created accounts for energy storage spread across all functions 
for plant and maintenance expenses based on the understanding of the 
limited use of storage technology at that time, as well as the expected 
impact of storage on rates. Our existing accounting caused individual 
assets and their associated accumulated depreciation to be divided 
amongst several different accounts in different functions, with some 
energy storage assets changing functionality frequently during a 
reporting period.\67\ The recordkeeping to track these frequent 
functionalization changes creates a significant accounting burden to 
utilities, and an increased internal control risk for reporting errors 
in our forms. This industry experience indicates a need to reform the 
energy storage accounts to reduce this burden and risk for error.
---------------------------------------------------------------------------

    \66\ ESA Comments at 1-2; EEI Comments at 6-9.
    \67\ EEI Comments at 6-9.
---------------------------------------------------------------------------

    30. In addition, there appears to be a need to formalize the 
accounting treatment of the purchase, generation, or use of RECs. 
Although the Commission stated in 2020 that RECs are analogous to the 
sulfur dioxide emission allowances addressed in Order No. 552,\68\ not 
all utilities follow this approach.\69\ As such, codifying the 
treatment of RECs would promote their consistent treatment in 
Commission accounting and reporting.
---------------------------------------------------------------------------

    \68\ Ameren Ill. Co., 170 FERC ] 61,267 at P 52.
    \69\ EEI Comments at 10.
---------------------------------------------------------------------------

    31. Lastly, establishing designated computer hardware, software, 
and communications equipment accounts for all functions and plant 
subfunctions would help ensure greater consistency in accounting and 
reporting and eliminate ambiguity.\70\ Currently, the USofA is 
inconsistent with the designated reporting of these items across the 
different functions, which can lead to confusion within the public 
utility industry. For instance, the Regional Transmission and Market 
Operation Plant function has designated plant accounts for computer 
hardware, software, and communication equipment which lists includable 
items like SCADA, whereas no other function or subfunction does.\71\ 
Correspondingly, the Transmission and Regional Market functions contain 
maintenance accounts for computer hardware, software, and communication 
equipment, whereas no other function or subfunction does.\72\ There is 
no consistent guidance or practice concerning the proper accounting of 
such costs in our existing accounts.
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    \70\ The Commission's regulations currently contain accounts for 
computer hardware, software, and communication in the Regional 
Transmission and Market Operation function.
    \71\ 18 CFR part 101.
    \72\ Id.
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B. Proposed Revisions

    32. Below, we propose several reforms to the USofA related to: (1) 
non-hydro renewables; (2) energy storage; (3) RECs; and (4) hardware, 
software, and communications equipment. We seek comment on each of 
these proposals.
1. Non-Hydro Renewables
    33. We propose three new subfunctions within the Production Plant 
function: D. Solar Production, E. Wind Production, and F. Other Non-
Hydro Renewable Production. The existing ``Other Production'' 
subfunction would be renumbered from D. to G. The new generation 
subfunction titled ``Other Non-Hydro Renewable Production'' would 
capture renewable generation technologies other than solar and wind.
    34. To avoid confusion with the existing ``Other Production'' 
generation subfunction, we seek comment on whether to retitle that 
subfunction as ``Prime Mover Production'' because the current 
instructions to the ``Other Production'' subfunction only describe 
prime mover type generation assets.\73\ All subfunctions would contain 
reserved account numbers (Accounts 338.3 for Solar, 338.22 and 338.25 
for Wind, and 339.5 and 339.7 for Other Non-hydro Renewable) for future 
use.
---------------------------------------------------------------------------

    \73\ 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.
---------------------------------------------------------------------------

    35. The new non-hydro renewable subfunctions (Solar, Wind, and 
Other Non-hydro Renewable Production) would all include the following 
five accounts consistent with all other production subfunctions (e.g., 
steam, nuclear and hydraulic): (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

[[Page 59875]]

Equipment); and (5) Accounts 338.13, 338.34, and 339.13 (Asset 
Retirement Costs).\74\ These accounts would be similar in description 
and instruction to the existing accounts of the same title in each of 
the other production subfunctions.
---------------------------------------------------------------------------

    \74\ The three accounts under each number represents the three 
new subfunctions: Solar, Wind, and Non-hydro Renewable Production, 
respectively.
---------------------------------------------------------------------------

    36. Additionally, the new Solar and Wind Production subfunctions 
would both include three accounts: (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). The 
collector system account describes a distribution system in reverse and 
includes many of the same items listed in the accounts for Poles, 
Towers and Fixtures (Account 364), and Overhead Conductors and Devices 
(Account 365),\75\ which are illustrative, not prescriptive. The GSU 
account would be used for transformers directly connected to the 
generator terminal tips and supporting equipment. The inverter account 
would be used for equipment converting power from direct current to 
alternating current.
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    \75\ Examples for Account 364: poles, towers, anchors, extension 
arms, etc.; Account 365: circuit breakers, conductors, lightning 
arrestors, etc.
---------------------------------------------------------------------------

    37. Finally, all three subfunctions would have unique generating 
accounts: (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. The solar panels account would be 
specifically designated for panels and support equipment that change 
solar energy into electricity and related supporting structures such as 
racks and gears. The wind turbines account would include 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 for fuel 
holders, boilers, and generators included in Other Non-hydro Renewable 
Production allow for the recording of assets related to renewable 
generation that uses any fuel source or method (e.g., steam or direct 
burning). These accounts would allow for recording biofuels, hydrogen, 
geothermal, and other types of generation in this subfunction. Many of 
the items listed in these account descriptions would be the same as 
those accounts listed in the Steam and Other Production 
subfunctions.\76\
---------------------------------------------------------------------------

    \76\ Account 342 (Fuel Holders, Producers, and Accessories); 
Account 312 (Boiler Plant Equipment); Account 344 (Generators).
---------------------------------------------------------------------------

    38. Similar to the new plant accounts for non-hydro renewables, we 
propose new O&M expense accounts for these subfunctions, titled F. 
Solar Generation, G. Wind Generation, and H. Other Non-Hydro Renewable 
Generation. All three subfunctions would include the following seven 
accounts that are in common with all 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)).\77\ These accounts would have similar 
descriptions, items, and instructions to the existing accounts of the 
same title.
---------------------------------------------------------------------------

    \77\ Item 7 includes three accounts that are designated as 
nonmajor only: thus, nonmajor entities would record all maintenance 
activities in these accounts without further granularity as required 
for major entities (Items 1-6).
---------------------------------------------------------------------------

    39. The Solar and Wind Generation subfunctions would have four 
maintenance accounts that the Other Non-hydro Renewable Generation 
subfunction would not have: \78\ (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)). These accounts 
would allow for the recording of the maintenance expense 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)) would be similar to the list of items for Account 
593 (Maintenance of Overhead Lines (Major only)) in the Distribution 
Expenses function.
---------------------------------------------------------------------------

    \78\ Unlike wind and solar, which are distributive in design 
(i.e., with a collector system spread across a comparatively wide 
area), other non-hydro renewables are, as currently conceived, 
unlikely to be distributive in design. Rather, non-distributive 
plants would include plants that by design would be similar to 
existing coal, oil, nuclear, and gas plants in that they do not have 
a collector system, and in addition, their generator step up 
transformers and inverters are comparatively minor integrated parts.
---------------------------------------------------------------------------

    40. We also propose new operating expense accounts for the main 
operating costs of the new generation 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).
    41. In addition, we propose new maintenance accounts for the 
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)). These 
new accounts would have descriptions and instructions that are similar 
to those involving maintenance of other generation equipment in the 
other subfunctions. We propose to designate an account for maintenance 
of electrical equipment separate from the maintenance of generation 
equipment for the new Solar and Wind Generation subfunctions.
    42. Finally, we propose 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.
    43. Lastly, tidal and wave energy use kinetic energy from the ocean 
to generate electricity, which is currently not addressed by the 
USofA.\79\ We seek comment 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. 
Both

[[Page 59876]]

tidal and wave energy are related to, and may reasonably be viewed, as 
hydraulic production. However, we also acknowledge that tidal and wave 
energy have varied configurations and components from those currently 
described in the existing hydraulic production subfunction: for 
example, some configurations use the energy of water itself to turn the 
turbines, while other configurations use the force of the tide or waves 
to create compressed air which is then forced through the turbines. 
Additionally, some configurations require tethering equipment under 
water, while other configurations have land-based basins and equipment. 
We seek comment on whether it would be useful to record tidal and wave 
energy activities within existing hydraulic production accounts, or 
whether it would be more useful to consider tidal and wave energy 
activities as a type of other renewable production.
---------------------------------------------------------------------------

    \79\ See EEI Comments at 4-5.
---------------------------------------------------------------------------

2. Energy Storage
    44. We propose to create a new function for energy storage for 
accounting purposes.\80\ This proposal is consistent with traditional 
accounting concepts that do not provide for recording the same physical 
plant asset in more than one account and are in line with our existing 
accounting instructions for plant in service capitalization, cost 
recording, and transfers.\81\
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    \80\ All cost allocation issues would be resolved separately 
through the ratemaking process and would not require constant 
reclassification in the continuing property records and accounting 
systems.
    \81\ See, e.g., Kester, Accounting Theory and Practice, 283-84 
(1914) (discussing the classification of plant assets as units 
grouped for the same purpose, in this case applying depreciation, 
with the assumption of units being indivisible); Paton, Accounting 
Theory, 113-16 (1922) (discussing the idea that changes in the 
status of individual assets are by definition transactions, and not 
merely bookkeeping adjustments). Additionally, while generally 
accepted accounting principles (GAAP) accounting does not drive 
Commission accounting, it may provide useful information for our 
consideration. See Financial Accounting Standards Board (FASB) 
Concepts Statement No. 5, at 89 (1986) (explaining that the reasons 
for changing the recorded value of assets still in use does not 
contemplate moving recorded values between multiple asset accounts 
within the same entity on a regular basis (changes in utility or 
substance and changes in price)); Foster & Rodney, Public Utility 
Accounting, Chs. 10-11, 219 (1951) (showing in Figure 10-1 the 
conceptual complexity of adjusting plant account records and 
continuing property records). These accounting concepts are 
indicated in the USofA in General Instruction 12. Records for Each 
Plant (Major Utility), and Electric Plant Instructions 2. Electric 
Plant to Be Recorded at Cost, and 12. Transfers of Property. These 
instructions all discuss the maintaining of records for plant in 
service, and imply that adjustments to records are a major event 
akin to unitization or classification (discussed in the instruction 
to account 106 Completed Construction not Classified--Electric 
(Major only)), or retirement (discussed in Electric Plant 
Instruction 10. Additions and Retirements of Electric Plant).
---------------------------------------------------------------------------

    45. Currently, energy storage assets are recorded in several 
accounts in separate functions (generation, transmission, and 
distribution). This accounting requirement creates an additional burden 
with respect to recordkeeping, depreciation, and retirement, all of 
which increase internal control risk and the opportunity for error. 
These potential errors may arise as a utility reclassifies portions of 
the original cost of an asset between two or three different plant 
accounts, which may have different depreciation rates.\82\ Based on our 
review of industry comments, it appears that the energy storage 
accounting requirements of Order No. 784, and the related accounting 
guidance,\83\ created a significant burden and are not practical.\84\ 
For example, companies emphasize that an energy storage asset's 
functionality can change on a daily basis requiring constant accounting 
reclassification entries. As a result, we propose to create one new 
function dedicated to energy storage.\85\ By 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.
---------------------------------------------------------------------------

    \82\ Companies currently must also shift portions of the related 
accumulated depreciation balances.
    \83\ AI14-1, Accounting and Reporting Guidance for New Electric 
Storage Technologies (2014).
    \84\ EEI Comments at 6-9 (filed March 29, 2021).
    \85\ Cost allocation would, as noted earlier, be addressed 
separately through the ratemaking process. See supra note 81.
---------------------------------------------------------------------------

    46. In its reply comments, ACP claims that it is not appropriate 
for storage assets to be treated as general plant assets: ACP indicates 
that general plant is a catch-all category that utilities use for 
offices and miscellaneous and small cost property that does not fit in 
one of the other functional categories, whereas storage is significant 
property that should not be depreciated on a schedule like General 
Plant.\86\ However, we do not propose to consider the energy storage 
function as general plant. As explained above, utilities would record 
energy storage assets in the proposed dedicated new function consistent 
with our proposed new accounting regulations, and then use the 
appropriate cost allocation methodologies for ratemaking purposes.
---------------------------------------------------------------------------

    \86\ ACP Reply Comments at 6-8 (filed Apr. 26, 2021).
---------------------------------------------------------------------------

    47. There are currently three plant accounts, three operating 
expense accounts, and three maintenance expense accounts for energy 
storage, as created in Order No. 784: Accounts 348 (Energy Storage 
Equipment--Production), 351 (Energy Storage Equipment--
Transmission),\87\ 363 (Storage Battery Equipment), 558.1 (Operations 
of Energy Storage Equipment), 553.1 (Maintenance of Energy Storage 
Equipment), 562.1 (Operations of Energy Storage Equipment), 570.1 
(Maintenance of Energy Storage), 584.1 (Operations of Energy Storage 
Equipment), and 592.2 (Maintenance of Energy Storage Equipment). We 
propose to retitle most of these account numbers to indicate reserved, 
but as described below, retitle Accounts 553.1 and 592.2 as Maintenance 
of Computer Hardware (Major only).
---------------------------------------------------------------------------

    \87\ The title of Account 351 currently reads as ``Reserved'' in 
the USofA Electric Plant Chart of Accounts.
---------------------------------------------------------------------------

    48. We also propose to renumber the General Plant function from 
number 6. to number 7. in the Electric Plant Chart of Accounts and 
retitle existing number 6. to Energy Storage Plant function. 
Additionally, in the Operation and Maintenance Expense Chart of 
Accounts, we propose to retitle existing number 4. from Distribution 
Expenses to Energy Storage Expenses, and renumber Distribution Expenses 
from 4. to 5., Customer Account Expenses from 5. to 6., Customer 
Service and Informational Expenses from 6. to 7., Sales Expenses from 
7. to 8., and Administrative and General Expenses from 8. to a new 9.
    49. The proposed new dedicated storage function in the Electric 
Plant Chart of Accounts would be structured similarly to the other 
functions in the USofA and would include the following plant accounts: 
(1) Account 387.1 (Land and Land Rights); (2) Account 387.2 (Structures 
and Improvements); (3) Account 387.11 (Miscellaneous Energy Storage 
Equipment); and (4) Account 387.12 (Asset Retirement Costs for Energy 
Storage). The Energy Storage function would also have accounts, similar 
to those in the Solar and Wind Production subfunctions, for: (1) 
Account 387.5 (Collector System); (2) Account 387.6 (Generator Step-up 
Transformer (GSU)); and (3) Account 387.7 (Inverters). These proposed 
new accounts are intended to accommodate activities related to 
distributed and/or direct current energy storage plant

[[Page 59877]]

assets.\88\ We also propose to include the three new plant accounts for 
computer hardware, software, and communication equipment as described 
below. Finally, we propose 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.
---------------------------------------------------------------------------

    \88\ The Commission does not expect these accounts to be used if 
they are not applicable to a specific energy storage plant.
---------------------------------------------------------------------------

    50. We also propose new Operations and Maintenance Expense accounts 
for the Energy Storage function: (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)); and (10) Account 578.11 (Maintenance of Other Energy 
Storage Plant (Nonmajor only)). We further propose to create three new 
additional expense accounts specific to the new Energy Storage 
function: (1) Account 577.2 (Operation of Energy Storage Equipment 
(Major only)); (2) Account 577.3 (Storage Fuel); and (3) Account 578.3 
(Maintenance of Energy Storage Equipment (Major only)). Finally, we 
propose to create three new maintenance computer hardware, software, 
and communication equipment accounts related to the energy storage 
function as described below.
    51. Pumped storage is currently recorded within the Hydraulic 
Production subfunction in the USofA, consistent with the instructions 
to Account 348 (Energy Storage Equipment--Production), which state: 
``The cost of pumped storage hydroelectric plant shall be charged to 
hydraulic production plant.'' We propose to remove Account 348 and 
instead use its instructions in the new Account 387.3 as part of the 
proposed new Energy Storage function.
3. Renewable Energy Credits
    52. We propose to retitle General Instruction No. 21 (Allowances) 
to Allowances and Renewable Energy Credits (RECs). We also propose 
several changes to this instruction. In Part A, we propose to remove 
the reference to the Clean Air Act to make the instruction less 
restrictive. We further propose to modify the instruction to reference 
the proposed new accounts as described below. Additionally, we propose 
to move the last sentence of Part A to the beginning of Part B. We also 
propose that Parts A and C refer to historical cost to make the 
instruction consistent with other existing regulatory text in the 
USofA.\89\ We further propose to correct Part D, which currently reads, 
in part, ``Issuances from inventory from inventory included in . . .'' 
to instead read ``Issuances from inventory included in . . . [.]'' We 
propose to update the text in Part E to include references to RECs in 
addition to allowances and to add language to Part F to clarify the 
inventory accounting for RECs. We also propose to replace 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. We propose to move the existing language in Part G which 
currently addresses penalties to Part H, and remove the reference to 
the Environmental Protection Agency (EPA) to make the instruction 
applicable to similar items created by other regulatory bodies. Then, 
we propose to move and update the existing language in Part H to a 
newly proposed Part I that would address gains and losses on 
dispositions of allowances and RECs. Finally, we propose to add a new 
Part J that would address the revenues for RECs associated with the 
sale of energy.
---------------------------------------------------------------------------

    \89\ 18 CFR part 101, General Instruction No. 21 (Allowances).
---------------------------------------------------------------------------

    53. Additionally, we propose to change the existing text to Account 
158.1 (Allowance Inventory) and Account 158.2 (Allowances Withheld) to 
remove the references to the EPA, to reference historical cost, and to 
include a new note to address prepayments in accordance with the 
proposed text within General Instruction No. 21.
    54. The Commission has recognized that RECs are state-created and -
issued.\90\ As such, the Commission has concluded that when REC 
transactions are independent of wholesale electric energy transactions, 
these unbundled REC transactions do not fall within the Commission's 
authority under FPA sections 205 and 206; these unbundled REC 
transactions do not directly affect rates for electric energy sold at 
wholesale. By contrast, the Commission also has concluded that when 
RECs are bundled with electric energy sold at wholesale, the Commission 
has authority over the entire transaction, including the RECs, as all 
components are deemed to directly affect the wholesale electric energy 
rates.\91\ Therefore, we also propose two new inventory accounts for 
RECs: Account 158.3 (Bundled Renewable Energy Credits Inventory), to 
record RECs bundled with energy sales, and Account 158.4 (Unbundled 
Renewable Energy Credits Inventory), to record RECs unbundled from 
energy sales.\92\
---------------------------------------------------------------------------

    \90\ WSPP Inc., 139 FERC ] 61,061, at P 21 (2012).
    \91\ Id. PP 22-24.
    \92\ We propose to 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.
---------------------------------------------------------------------------

    55. We propose to renumber Account 509 (Allowances) to Account 
509.1, delete the reference to sulfur dioxide in this account, and 
create two new expense accounts for RECs: Account 509.2 (Bundled 
Renewable Energy Credits), and Account 509.3 (Unbundled Renewable 
Energy Credits). These accounts would be used to expense monthly 
bundled and unbundled REC costs, respectively, similar to how Account 
509.1 is used for allowances.
    56. Finally, we propose to add Account 411.11 (Gains from the 
Disposition of RECs) and Account 411.12 (Losses from the Disposition of 
RECs), consistent with the newly proposed instructions in Part I of 
General Instruction No. 21.
    57. While we recognize that there may be differences in accounting 
and reporting for RECs (e.g., inventory vs. intangible assets) as may 
be allowed by other regulatory bodies, we believe that the 
characteristics of RECs are more akin to inventory.\93\ Generally, if 
another 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.\94\
---------------------------------------------------------------------------

    \93\ Ameren Ill. Co., 170 FERC ] 61,267, at P 52 (explaining 
that RECs are appropriately classified as inventory).
    \94\ 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.'').
---------------------------------------------------------------------------

4. Hardware, Software, and Communication Equipment
    58. We propose new accounts in each function and subfunction for 
computer hardware, software, and communication equipment in this 
proceeding. While the USofA was updated in 2005 to include

[[Page 59878]]

accounts for recording computer hardware, software, and communication 
equipment owned by regional transmission organizations (RTOs), there 
are no comparable accounts for non-RTO public utilities and licensees 
to report these types of assets.\95\ This has led to discrepancies in 
how non-RTO public utilities record computer hardware, software, and 
communication equipment, 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, we propose including computer hardware, software, and 
communication equipment in each different functional area, including 
the general function. It appears that the creation of new accounts for 
these items would allow more accurate functional identification, which 
would assist in the ratemaking process.
---------------------------------------------------------------------------

    \95\ Order No. 668, 113 FERC ] 61,276.
---------------------------------------------------------------------------

    59. We recognize that these proposed accounts are needed for the 
new Non-hydro Renewable Generation subfunctions and the new Energy 
Storage function proposed above, but based on industry input from EEI, 
among others, we preliminarily find that these new accounts are needed 
for all functions and production subfunctions. As such, we propose to 
add three plant accounts and three maintenance accounts to all 
functions and subfunctions that currently lack them. 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); Account 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, 587.8, 592.2, and 935.1 (Maintenance of Computer 
Hardware (Major only)); Accounts 513.2, 531.2, 544.2, 553.2, 558.14, 
558.34, 558.13, 578.8, 587.9, 582.3, 935.2 (Maintenance of Computer 
Software (Major only)); and Account 513.3, 531.3, 544.3, 553.3, 558.15, 
558.35, 559.14, 578.9, 587.10, 592.4, 935.3 (Maintenance of 
Communication Equipment (Major only)). The existing Transmission 
Expenses Maintenance accounts 569.1, 569.2, 569.3, would have (Major 
only) added to the account names to denote this condition, as 
consistent with the newly proposed accounts. Because the RTO function 
only exists in RTOs and independent system operators, we currently see 
no need for this designation on accounts in this function (i.e., 
Accounts 576.2, 576.3, and 576.4). These accounts would all have the 
same descriptions, instructions, and items as the existing RTO and 
Transmission function accounts of the same title.
    60. We also propose adding a new Electric Plant Instruction No. 17, 
Integrated computer hardware, software, and communication equipment. 
The instruction would explain 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 would further clarify that, if this 
hardware, software, or communication equipment is not integrated, Plant 
Instruction No. 10 should be followed.
    61. We seek comment on whether the Commission also should create 
computer hardware, software, and communication accounts for natural gas 
pipelines, oil pipelines, and a holding company's service companies.

C. Reporting

    62. To accommodate the proposed changes to the USofA explained 
above, we propose to amend 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 
O&M expense sections of the forms, including the schedules for 
depreciation.\96\ 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).
---------------------------------------------------------------------------

    \96\ Appendix 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 (see the 
appendix at the end of this document).
---------------------------------------------------------------------------

    63. The proposed reporting changes to Form Nos. 1, 1-F, and 3-Q 
(electric) would result in changes to service company reporting in FERC 
Form No. 60, Schedule XVI--Analysis of Charges for Service--Associate 
and Non-Associate Companies, because the Form No. 60 summarizes the 
functional and sub-functional O&M expenses detailed in Form Nos. 1, 1-
F, and 3-Q (electric).\97\ 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 expenses.
---------------------------------------------------------------------------

    \97\ Appendix B: FERC Form No. 60 at 304-305a.
---------------------------------------------------------------------------

    64. We also propose to amend Form Nos. 1, 1-F, and 3-Q (electric) 
to include RECs as part of the instructions and titles wherever 
allowances are discussed.\98\ Further, we propose to consolidate inputs 
for both sulfur dioxide and nitrogen oxides (NOX) in the 
existing Allowances schedule,\99\ to include inputs for both bundled 
and unbundled RECs, and to amend the related title for Account 509 to 
read as Account 509.1.\100\ We propose to add separate gain and loss 
accounts to the statement of income for RECs.\101\
---------------------------------------------------------------------------

    \98\ Appendix B: FERC Form Nos. 1/1-F at 320; FERC Form No. 1 at 
2, 110-111, 120-121, 228a, 229a; Form No. 1-F at 4, 10-11, 15-16.
    \99\ Appendix B: FERC Form No. 1 at 228a-229a amended, pages 
228b-229b deleted.
    \100\ Appendix B: FERC Form Nos. 1/1-F at 320; FERC Form No. 1-F 
at 15.
    \101\ Appendix B: FERC Form Nos. 1/3-Q (electric) at 114; FERC 
Form No. 1-F at 6.
---------------------------------------------------------------------------

    65. We further propose to amend 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).\102\ In 
the Depreciation and Amortization of Electric Plant schedule section B 
(Basis for Amortization Charges), we propose to eliminate the first two 
sentences and the word software from the third sentence as these 
clauses would no longer be applicable to software.\103\
---------------------------------------------------------------------------

    \102\ Appendix B: FERC Form Nos. 1/1-F at 204-207, 320-323; FERC 
Form No. 3-Q (electric) at 325.
    \103\ Appendix B: FERC Form No. 1 at 336.
---------------------------------------------------------------------------

    66. Currently, FERC Form No. 1 contains several statistical pages 
for different classes of large production generators. To simplify the 
forms and reduce the reporting burden, we propose to combine all large 
generating assets into one statistical page to also include hydro and 
non-hydro renewables.\104\
---------------------------------------------------------------------------

    \104\ Appendix B: FERC Form No. 1 at 402-403 amended; pages 406-
407 deleted.
---------------------------------------------------------------------------

    67. Finally, we propose to amend the energy storage statistical 
pages to remove references in the instructions and columns related to 
cost functionalization.\105\
---------------------------------------------------------------------------

    \105\ Appendix B: FERC Form No. 1 at 414-420.
---------------------------------------------------------------------------

D. Hydrogen Guidance

    68. Comments in response to the NOI and separate industry inquiries 
advocated for accounting guidance for hydrogen. We solicit comment on 
whether the Chief Accountant should issue such guidance.\106\ This 
guidance

[[Page 59879]]

could provide that the classification of hydrogen plant should be 
determined based on its functionality for both plant and its associated 
O&M accounting as well as for fuel accounting, including any newly 
created accounts that may result from this proceeding. This guidance 
could further define which activities are appropriate for accounting 
under the electric and which under the natural gas USofA. In addition, 
we seek comment on whether it would be helpful in the case of hydrogen 
to use existing natural gas accounts and instructions for production 
plant and O&M expenses, or if it would be more helpful either to update 
titles and instructions, or to create new accounts in a future 
proceeding.
---------------------------------------------------------------------------

    \106\ We are not proposing changes to the USofA to account for 
hydrogen but rather seek comment on the potential issuance of more 
general accounting guidance that could be issued by the Chief 
Accountant.
---------------------------------------------------------------------------

IV. Information Collection Statement

    69. The information collection requirements contained in this 
notice of proposed rulemaking (NOPR) are subject to review by the 
Office of Management and Budget (OMB) under section 3507(d) of the 
Paperwork Reduction Act of 1995.\107\ OMB's regulations require 
approval of certain information collection requirements imposed by 
agency rules.\108\ 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.
---------------------------------------------------------------------------

    \107\ 44 U.S.C. 3507(d).
    \108\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    70. This NOPR would require 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 as 
directed in Docket No. RM21-11-000. The updates within the USofA will 
also be required in the respective forms (FERC Form Nos. 1, 1-F, 3-Q 
(electric), and 60) that are filed with the Commission.
    71. 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).
    72. The Commission solicits comments on the Commission's need for 
this information, whether the information will have practical utility, 
the accuracy of the burden estimates, ways to enhance the quality, 
utility, and clarity of the information to be collected or retained, 
and any suggested methods for minimizing respondents' burden, including 
the use of automated information techniques.
    73. Please send comments concerning the collections of information 
and the associated burden estimates to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, through 
www.reginfo.gov/public/do/PRAMain. Attention: Federal Energy Regulatory 
Commission Desk Officer. Please identify the OMB Control Numbers 1902-
0021, 1902-0029, 1902-0205, and 1902-0215 in the subject line of your 
comments. Comments should be sent within 45 days of publication of this 
NOPR in the Federal Register.
    74. Please submit a copy of your comments on the information 
collections to the Commission via the eFiling link on the Commission's 
website at https://www.ferc.gov. Comments on the information collection 
that are sent to FERC should refer to Docket No. RM21-11-000.
    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: Proposed revision of collections of information in 
accordance with Docket No. RM21-11-000 and request for comments.
    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.
    Necessity of Information: The reforms in this proposed 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.
    75. The Commission estimates a one-time burden due to the proposed 
revisions in FERC Form Nos. 1, 1-F, 3-Q (electric), and 60 reflected in 
the NOPR in Docket No. RM21-11-000 but estimates that the ongoing 
burden following the implementation to 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 NOPR 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.
    76. The one-time implementation burden includes updating, adding, 
and modifying accounts to be compliant with the NOPR in Docket No. 
RM21-11-000. This includes updates to the Form Nos. 1, 1-F, 3-Q 
(electric), and 60 for the creation of new accounts and production 
subfunctions for wind, solar, and other non-hydro renewable assets; 
establishing a new functional class for energy storage accounts; 
codifying the accounting treatment of RECs, and creation of new 
accounts within existing functions for hardware, software, and 
communication equipment. The Reporting section III(B)(6) of this 
document indicates which forms and pages will be affected by the 
categorized proposed changes.
    77. The estimates below were calculated using previous NOPRs 
combined with the Commission's best estimate to the required effort to 
update, modify, or add accounts within the USofA. The Commission 
estimates that on average it will take 20 minutes to create or 
transition an account to be compliant with the requirements listed in 
this NOPR. In total there are 154 accounts being added, modified, or 
updated, but not all accounts are in each form. FERC Form No. 1 
requires 145 account changes, FERC Form No. 1-F requires 145 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 since the quarterly reports are generally a subset of 
the annual filings required by FERC Form No. 1. The changes above are 
reflected in the one-time implementation burden estimate listed in 
Table 1 below.\109\
---------------------------------------------------------------------------

    \109\ The burden numbers in the table are rounded to 1 decimal 
place, and the costs are rounded to the nearest dollar.

[[Page 59880]]

                                                                   Table 1--RM21-11-000
                                                    [NOPR one-time implementation burden, in Year 1]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Annual  number
                                  Number of     of  responses   Total  number    Average burden &  cost    Total annual burden  hours &    Annual  cost
         Requirement             respondents         per        of  responses      per response \110\                  cost                     per
                                                 respondent                                                                               respondent ($)
                                          (1)             (2)     (1) * (2) =  (4)......................  (3) * (4) = (5)...............       (5) / (1)
                                                                          (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form No. 1...................             217               1             217  48.3 hrs.; $4,202........  10,481.1 hrs.; $911,834.......          $4,202
Form No.1-F..................               2               1               2  48.3 hrs.; $4,202........  96.6 hrs.; $8,404.............           4,202
Form No. 3-Q electric \111\..             221               3             663  0 hrs. $0................  0 hrs. $0.....................               0
Form No. 60..................              42               1              42  3.7 hrs.; $322...........  155.4 hrs.; $13,524...........             305
                              --------------------------------------------------------------------------------------------------------------------------
    Total for Implementation   ..............  ..............             924  .........................  10,733.1 hrs.; $933,762.......  ..............
     Burden.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    78. 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.
---------------------------------------------------------------------------

    \110\ 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 
$180,703 or $87 per hour.
    \111\ 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 since quarterly filings are typically a subset of the annual 
filings.

                                                                Table 2--RM21-11-000 NOPR
                                                  [Annual ongoing burden (current), starting in Year 2]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Annual  number
                                  Number of     of  responses   Total  number    Average burden &  cost    Total annual burden  hours &    Annual  cost
      Requirement \112\          respondents         per        of  responses       per response \1\                 cost \1\                   per
                                                 respondent                                                                               respondent ($)
                                          (1)             (2)     (1) * (2) =  (4)......................  (3) * (4) = (5)...............       (5) / (1)
                                                                          (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form No. 1 (including Form                217               1             217  1,182 hrs.; $102,834.....  256,494 hrs.; $22,314,978.....        $102,834
 1T).
Form No.1-F (including Form 1-              2               1               2  136 hrs.; $11,832........  272 hrs.; $23,664.............          11,832
 FT).
Form No. 3-Q electric                     221               3             663  168 hrs. $14,616.........  111,384 hrs. $9,690,408.......          43,848
 (including Form 3-QT).
Form No. 60 (including Form                42               1              42  78 hrs.; $6,786..........  3,276 hrs.; $285,012..........           6,786
 60A).
                              --------------------------------------------------------------------------------------------------------------------------
    Total Ongoing Burden       ..............  ..............             924  .........................  371,426 hrs.; $32,314,062.....  ..............
     (current).
--------------------------------------------------------------------------------------------------------------------------------------------------------

V. Environmental Analysis
---------------------------------------------------------------------------

    \112\ The temporary forms (labeled ``T'') are currently 
undergoing the collection renewal process, which combines the ``T'' 
forms with their parent forms. The ``T'' forms were created during 
the XBRL transition since OMB does not allow for more than one 
Information Collection Request to be submitted under a single OMB 
control number. The ``T'' forms are anticipated to be retired 
following OMB approval of each renewed form.
---------------------------------------------------------------------------

    79. 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.\113\ No 
environmental consideration is necessary for the promulgation of a rule 
that addresses information gathering, analysis, and dissemination,\114\ 
and also that addresses accounting.\115\ This NOPR addresses 
accounting. In addition, this NOPR involves information gathering, 
analysis, and dissemination. Therefore, this NOPR falls within 
categorical exemptions provided in the Commission's regulations. 
Consequently, neither an environmental impact statement nor an 
environmental assessment is required.
---------------------------------------------------------------------------

    \113\ Reguls. Implementing the Nat'l Envt'l Pol'y Act, Order No. 
486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 30,783 (1987) 
(cross-referenced at 41 FERC 61,284).
    \114\ See 18 CFR 380.4(a)(5).
    \115\ See 18 CFR 380.4(c)(16).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act

    80. The Regulatory Flexibility Act of 1980 (RFA) \116\ generally 
requires a description and analysis of proposed 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.\117\ The Small Business Administration (SBA) sets the 
threshold for what constitutes a small business. Under SBA's size 
standards,\118\ electric generators definitions of ``small'' range from 
250-750 employees based on the type of generation. For the purpose of 
our analysis, we use the 250 employee threshold that is used for solar, 
wind, geothermal, biomass, and ``other'' generators since the proposed 
rules accounting changes are particularly relevant for these types of 
generation.
---------------------------------------------------------------------------

    \116\ 5 U.S.C. 601-612.
    \117\ Id. 603(c).
    \118\ 13 CFR 121.201.
---------------------------------------------------------------------------

    81. In our analysis, we utilized previous submissions of the FERC 
Form Nos. 1,\119\ 1-F,\120\ 3-Q (electric),\121\ and 60 \122\ filers to 
create populations of companies to determine the number of small 
entities. The Commission found that of this population, approximately 
seven percent of companies filing FERC Form No. 1, 50% of companies 
filing

[[Page 59881]]

FERC Form No. 1-F,\123\ and approximately eight percent of companies 
filing FERC Form No. 60, qualify as ``small'' using the definition 
provided by SBA. The Commission believes this rule will not have a 
significant economic impact on a substantial number of small entities, 
and therefore no regulatory flexibility analysis is required.
---------------------------------------------------------------------------

    \119\ The total population of FERC Form No. 1 filers totaled 
222. We used a statistical sample size of 99 companies that produces 
a 95% confidence level.
    \120\ The total population of FERC Form No. 1-F filers totaled 
2.
    \121\ The FERC Form 3-Q are quarterly filings, which are 
typically a subset of the annual filings. The Commission assumes 
that the 3-Q filers are consistent with FERC Form No. 1 filers.
    \122\ The total population of FERC Form No. 60 filers totaled 
43. We used a statistical sample size of 35 companies that produces 
a 95% confidence level.
    \123\ The Commission recognizes that 50% is a significant 
percentage. However, because only two companies file the FERC Form 
No. 1-F, 50% of FERC Form No. 1-F filers only represents one 
company. When compared to the total population of all filers 
effected by this rulemaking, one company (50% of FERC Form No. 1-f 
filers) is not deemed significant.
---------------------------------------------------------------------------

VII. Comment Procedures

    82. We invite interested persons to submit comments on the matters 
and issues proposed in this NOPR to be adopted, including any related 
matters or alternative proposals that commenters may wish to discuss. 
Comments are due November 17, 2022. Comments must refer to Docket No. 
RM21-11-000, and must include the commenter's name, the organization 
they represent, if applicable, and their address in their comments. All 
comments will be placed in the Commission's public files and may be 
viewed, printed, or downloaded remotely as described in the Document 
Availability section below. Commenters on this proposal are not 
required to serve copies of their comments on other commenters.
    83. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's website at https://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software must be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    84. Commenters that are not able to file comments electronically 
may file an original of their comment by the U.S. Postal Service (USPS) 
mail or by courier-or other delivery services. For submission sent via 
USPS only, filings should be mailed to: Federal Energy Regulatory 
Commission, Office of the Secretary, 888 First Street NE, Washington, 
DC 20426. Submission of filings other than by USPS should be delivered 
to: Federal Energy Regulatory Commission, 12225 Wilkins Avenue, 
Rockville, MD 20852.

VIII. Document Availability

    85. 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 (https://www.ferc.gov). At 
this time, the Commission has suspended access to the Commission's 
Public Reference Room due to the President's March 13, 2020 
proclamation declaring a National Emergency concerning the Novel 
Coronavirus Disease (COVID-19).
    86. 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.
    87. User assistance is available for eLibrary and the Commission's 
website during normal business hours from the Commission's 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].

List of Subjects in 18 CFR Part 101

    Electric power, Electric utilities, Reporting and recordkeeping 
requirements, Uniform system of accounts.

    By direction of the Commission.

    Issued: July 28, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
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. In part 101:
0
a. Under General Instructions, Instruction 21 is revised;
0
b. Under Electric Plant Instructions, Instruction 17 is added;
0
c. Under Balance Sheet Chart of Accounts, Accounts 158.3 and 158.4 are 
added to the list;
0
d. Under Balance Sheet Accounts:
0
i. Accounts 108, 111, 158.1, and 158.2 are revised; and
0
ii. Accounts 158.3 and 158.4 are added;
0
e. Under Electric Plant Chart of Accounts:
0
i. Accounts 315.1, 315.2, 315.3, 324.1, 324.2, 324.3, 334.1, 334.2, and 
334.3 are added to the list;
0
ii. Section 2.d. of the list is revised;
0
iii. Sections 2.e., 2.f., and 2.g. and Accounts 351.1, 351.2, and 351.3 
are added to the list;
0
iv. Account 363 is removed from the list and reserved;
0
v. Accounts 363.1, 363.2, and 363.3 are added to the list;
0
vi. Account 387 is removed from the list;
0
vii. Section 6 is redesignated as section 7 of the list;
0
viii. A new section 6 is added to the list;
0
ix. Account 397 is removed from the list and reserved; and
0
x. Accounts 397.1, 397.2, and 397.3 are added to the list;
0
f. Under Electric Plant Accounts:
0
i. 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 are added;
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;
0
g. Under Income Chart of Accounts, Accounts 411.11 and 411.12 are added 
to the list;
0
h. Under Income Accounts, Accounts 411.11 and 411.12 are added;
0
i. Under Operation and Maintenance Expense Chart of Accounts:
0
i. Account 509 is removed from the list;
0
ii. Accounts 509.1, 509.2, 509.3, 513.1, 513.2, 513.3, 531.1, 531.2, 
531.3, 544.1, 544.2, and 544.3 are added to the list;
0
iii. Account 548.1 is removed from the list and reserved;
0
iv. Account 553.1 of the list is revised;
0
v. Accounts 553.2 and 553.3 and sections 1.f., 1.g, and 1.h. are added 
to the list;
0
vi. Account 562.1 is removed from the list and reserved;

[[Page 59882]]

0
vii. Accounts 569.1, 569.2, and 569.3 of the list are revised;
0
viii. Account 570.1 is removed from the list and reserved;
0
ix. Sections 4 through 8 are redesignated as sections 5 through 9 of 
the list;
0
x. A new section 4 is added to the list;
0
xi. Account 584.1 is removed from the list and reserved;
0
xii. Account 592.2 of the list is revised; and
0
xiii. Accounts 592.3, 592.4, 935.1, 935.2, and 935.3 are added to the 
list; and
0
j. Under Operation and Maintenance Expense Accounts:
0
i. Account 509 is redesignated as Account 509.1;
0
ii. Newly redesignated Account 509.1 is revised;
0
iii. Accounts 509.2, 509.3, 513.1, 513.2, 513.3, 531.1, 531.2, 531.3, 
544.1, 544.2, and 544.3 are added;
0
iv. Account 548.1 is removed and reserved;
0
v. Account 553.1 is revised;
0
vi. Accounts 553.2, 553.3, 558.1 through 558.17, 558.20 through 558.37, 
and 559.1 through 559.16 are added;
0
vii. Account 562.1 is removed and reserved;
0
viii. Accounts 569.1, 569.2, and 569.3 are revised;
0
ix. Account 570.1 is removed and reserved;
0
x. Accounts 577.1, 577.2 through 577.5, 578.1 through 578.11 are added;
0
xi. Account 584.1 is removed and reserved; and
0
xii. Account 592.2, 592.3, 592.4, 935.1, 935.2, and 935.3 are added.
    The revisions and additions read as follows:

PART 101--UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC 
UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL 
POWER ACT

* * * * *

General Instructions

* * * * *
    21. Allowances and renewable energy credits (RECs).
    A. Public utilities owning allowances and RECs for operational 
purposes, shall account for such allowances and RECs at historical cost 
in Account 158.1, Allowance Inventory, Account 158.2, Allowances 
Withheld, Account 158.3, Bundled Renewable Energy Credits Inventory, or 
Account 158.4, Unbundled Renewable Energy Credits Inventory, as 
appropriate.
    B. Allowances and RECs acquired for speculative purposes shall be 
accounted for in Account 124, Other Investments. When purchased 
allowances and RECs 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 RECs 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 RECs are acquired, for a 
loan with a term similar to the period that it will hold the allowances 
and RECs and in an amount equal to the purchase price.
    C. The underlying records supporting operational allowances and 
RECs 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 RECs and the related 
cost by vintage year, including allowances and RECs 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 RECs 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 509.1, 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 
158.4 shall be credited and Account 509.2, Bundled Renewable Energy 
Credits, and Account 509.3, Unbundled Renewable Energy Credits, 
debited, respectively, so that the cost of the RECs 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 RECs, the utility shall debit Account 
158.3 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 and Account 158.3 
and Account 509.1 and Account 509.2 within a single month, as 
appropriate.
    G. When a prepayment is made for allowances or RECs, 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 RECs, other than 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, Gain from Disposition of 
RECs. Losses on disposition of allowances and RECs, 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 RECs. (See Definition No. 
31.) Gains or losses on disposition of allowances and RECs held for 
speculative purposes shall be recognized in Account 421, Miscellaneous 
Nonoperating Income, or Account 426.5, Other Deductions, as 
appropriate.
    J. Revenues for RECs associated with the sale of energy shall be 
recorded in the appropriate operating revenue account.
* * * * *

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.
* * * * *

[[Page 59883]]

Balance Sheet Chart of Accounts

* * * * *
    3. Current and Accrued Assets
* * * * *
    158.3 Bundled renewable energy credits inventory.
    158.4 Unbundled renewable energy credits inventory.
* * * * *

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 Non-hydro 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 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

[[Page 59884]]

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 non-hydro 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 509.1, 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 renewable energy credits inventory.

    A. This account shall include the cost of RECs owned by the 
utility, bundled with energy, and not withheld by any authoritative 
agency. See General Instruction No. 21 and Account 158.2, Allowances 
and RECs Withheld.
    B. This account shall be credited and Account 509.2, Bundled 
Renewable Energy Credits, shall be debited concurrent with the monthly 
use of RECs.
    C. Separate subdivisions of this account shall be maintained so as 
to separately account for those RECs 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 REC 
included; the origin of each REC; and the historical cost.
    (Note: For prepayments of RECs, see General Instruction No. 21.)

158.4  Unbundled renewable energy credits inventory.

    A. This account shall include the cost of RECs owned by the 
utility, not considered bundled with energy, and not withheld by any 
authoritative agency. See General Instruction No. 21 and Account 158.2, 
Allowances and RECs Withheld.
    B. This account shall be credited and Account 509.3, Unbundled 
Renewable Energy Credits, shall be debited concurrent with the monthly 
use of RECs.
    C. Separate subdivisions of this account shall be maintained so as 
to separately account for those RECs 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 REC 
included; the origin of each REC; and the historical cost.
    (Note: For prepayments of RECs, see General Instruction No. 21.)
* * * * *

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 non-hydro 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 non-hydro 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.

[[Page 59885]]

    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.
* * * * *

Electric Plant Accounts

* * * * *

315.1  Computer hardware.

    This account shall include the cost of computer hardware and 
miscellaneous information technology equipment to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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

[[Page 59886]]

used to acquire or share data and information used to control and 
dispatch the system.
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, 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 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.
Items
    1. Anchors, head arm, and other guys, including guy guards, guy 
clamps, strain insulators, pole plates, etc.
    3. Armored conductors, buried, submarine, including insulators, 
insulating materials, splices in terminal chamber, potheads, etc.
    4. Brackets.
    5. Circuit breakers.
    6. Conductors, including insulated and bare wires and cables.
    7. Conduit, concrete, brick and tile, including iron pipe, fiber 
pipe, Murray duct, and standpipe on pole or tower.
    8. Crossarms and braces.
    9. Excavation and backfill, including shoring, bracing, bridging, 
and disposal of excess excavated material.
    10. Extension arms.
    11. Fireproofing, in connection with any items listed herein.
    12. Foundations and settings specially constructed for and not 
expected to outlast the apparatus for which constructed.
    13. Ground wires, clamps, etc.
    14. Guards.
    15. Hollow-core oil-filled cable, including straight or stop 
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals, 
potheads and connections, etc.
    16. Insulators, including pin, suspension, and other types, and tie 
wire or clamps.
    17. Lightning arresters.
    18. Paving, Pavement disturbed, including cutting and replacing 
pavement, pavement base, and sidewalks.
    19. Permits for construction.
    20. Pole steps and ladders.
    21. Poles, wood, steel, concrete, or other material.
    22. Racks complete with insulators.
    23. Railings.
    24. Railroad and highway crossing guards.
    25. Reinforcing and stubbing.
    26. Removal and relocation of subsurface obstructions.
    27. Settings.
    28. Sewer connections, including drains, traps, tide valves, check 
valves, etc.
    29. Shaving, painting, gaining, roofing, stenciling, and tagging.
    30. Splices.
    31. Sumps, including pumps.
    32. Switches.
    33. Towers.
    34. Tree trimming, initial cost including the cost of permits 
therefor.
    35. Ventilating equipment.
    36. 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.

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 the 
protection of electric circuits and equipment which operate at 
generating level voltage (excluding SCADA systems). 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. Excitation system, including motor, turbine and dual-drive 
exciter sets and rheostats, 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, generator field and exciter 
switch panels, exciter bus tie panels, generator and exciter rheostats, 
etc., special housings, protective screens, 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, etc., special housing, protective screens, 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 and exciter signal stands, temperature-recording 
devices, frequency control equipment, master clocks, watt-hour meter, 
station totalizing wattmeter, storage batteries, panels and charging 
sets, instrument transformers for supervisory metering, conductors and 
conduit, special supports for conduit, switchboards, batteries, special 
housing for batteries, protective screens, doors, 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,

[[Page 59887]]

starting transformers, current transformers, potential transformers, 
protective relays, 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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
Items
    1. Fiber optic cable.
    2. Remote terminal units.
    3. Microwave towers.
    4. Global Positioning System (GPS) equipment.
    5. Servers.
    6. Workstations.
    7. Telephones.

338.12  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 that are installed beyond the 
high side of the GSU transformer and the transmission or distribution 
point of interconnection.
Items
    1. Anchors, head arm, and other guys, including guy guards, guy 
clamps, strain insulators, pole plates, etc.
    3. Armored conductors, buried, submarine, including insulators, 
insulating materials, splices in terminal chamber, potheads, etc.
    4. Brackets.
    5. Circuit breakers.
    6. Conductors, including insulated and bare wires and cables.
    7. Conduit, concrete, brick and tile, including iron pipe, fiber 
pipe, Murray duct, and standpipe on pole or tower.
    8. Crossarms and braces.
    9. Excavation and backfill, including shoring, bracing, bridging, 
and disposal of excess excavated material.
    10. Extension arms.
    11. Fireproofing, in connection with any items listed herein.
    12. Foundations and settings specially constructed for and not 
expected to outlast the apparatus for which constructed.
    13. Ground wires, clamps, etc.
    14. Guards.
    15. Hollow-core oil-filled cable, including straight or stop 
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals, 
potheads and connections, etc.
    16. Insulators, including pin, suspension, and other types, and tie 
wire or clamps.

[[Page 59888]]

    17. Lightning arresters.
    18. Paving, Pavement disturbed, including cutting and replacing 
pavement, pavement base, and sidewalks.
    19. Permits for construction.
    20. Pole steps and ladders.
    21. Poles, wood, steel, concrete, or other material.
    22. Racks complete with insulators.
    23. Railings.
    24. Railroad and highway crossing guards.
    25. Reinforcing and stubbing.
    26. Removal and relocation of subsurface obstructions.
    27. Settings.
    28. Sewer connections, including drains, traps, tide valves, check 
valves, etc.
    29. Shaving, painting, gaining, roofing, stenciling, and tagging.
    30. Splices.
    31. Sumps, including pumps.
    32. Switches.
    33. Towers.
    34. Tree trimming, initial cost including the cost of permits 
therefor.
    35. Ventilating equipment.
    36. 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.

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 turbines, including weather monitoring equipment, and the 
protection of electric circuits and equipment which operate at 
generating level voltage (excluding SCADA systems). 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.

338.30  Computer hardware.

    This account shall include the cost of computer hardware and 
miscellaneous information technology equipment to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
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 non-hydro 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 non-hydro 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.
    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.
    3. Boilers and equipment, including boilers and baffles, 
economizers,

[[Page 59889]]

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 non-hydro 
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 non-hydro renewable, including weather monitoring equipment, 
and the protection of electric circuits and equipment which operate at 
generating level voltage (excluding SCADA systems).

339.9  Computer hardware.

    This account shall include the cost of computer hardware and 
miscellaneous information technology equipment to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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.

339.11   Communication equipment.

    This account shall include the cost of communication equipment 
owned and used to acquire or share data and information used to control 
and dispatch the system.
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 non-hydro renewable plant devoted to 
general station use, and which is not properly includible in any of the 
foregoing other non-hydro renewable power production accounts.

339.13  Asset retirement costs for other non-hydro renewable 
production.

    This account shall include asset retirement costs on plant included 
in other non-hydro renewable production function.
* * * * *

345.1  Computer hardware.

    This account shall include the cost of computer hardware and 
miscellaneous information technology equipment to provide scheduling, 
system control and dispatching.
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.

[[Page 59890]]

    7. Networking components.

345.2  Computer software.

    This account shall include the cost of off-the-shelf and in-house 
developed software purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
Items
    1. Fiber optic cable.
    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.
    C. The records supporting this account shall show, by months, the 
function(s) each energy storage asset supports or performs.
Items
    1. Batteries/Chemical.
    2. Compressed Air.
    3. Flywheels.
    4. Superconducting Magnetic Storage.
    5. Thermal.

[[Page 59891]]

    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 that are installed beyond the 
high side of the GSU transformer and the transmission or distribution 
point of interconnection.
Items
    1. Anchors, head arm, and other guys, including guy guards, guy 
clamps, strain insulators, pole plates, etc.
    3. Armored conductors, buried, submarine, including insulators, 
insulating materials, splices in terminal chamber, potheads, etc.
    4. Brackets.
    5. Circuit breakers.
    6. Conductors, including insulated and bare wires and cables.
    7. Conduit, concrete, brick and tile, including iron pipe, fiber 
pipe, Murray duct, and standpipe on pole or tower.
    8. Crossarms and braces.
    9. Excavation and backfill, including shoring, bracing, bridging, 
and disposal of excess excavated material.
    10. Extension arms.
    11. Fireproofing, in connection with any items listed herein.
    12. Foundations and settings specially constructed for and not 
expected to outlast the apparatus for which constructed.
    13. Ground wires, clamps, etc.
    14. Guards.
    15. Hollow-core oil-filled cable, including straight or stop 
joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals, 
potheads and connections, etc.
    16. Insulators, including pin, suspension, and other types, and tie 
wire or clamps.
    17. Lightning arresters.
    18. Paving, Pavement disturbed, including cutting and replacing 
pavement, pavement base, and sidewalks.
    19. Permits for construction.
    20. Pole steps and ladders.
    21. Poles, wood, steel, concrete, or other material.
    22. Racks complete with insulators.
    23. Railings.
    24. Railroad and highway crossing guards.
    25. Reinforcing and stubbing.
    26. Removal and relocation of subsurface obstructions.
    27. Settings.
    28. Sewer connections, including drains, traps, tide valves, check 
valves, etc.
    29. Shaving, painting, gaining, roofing, stenciling, and tagging.
    30. Splices.
    31. Sumps, including pumps.
    32. Switches.
    33. Towers.
    34. Tree trimming, initial cost including the cost of permits 
therefor.
    35. Ventilating equipment.
    36. 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.

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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
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 used to control 
and dispatch the system.
Items
    1. Fiber optic cable.
    2. Remote terminal units.
    3. Microwave towers.
    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 to provide scheduling, 
system control and dispatching.
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 purchased and used to provide scheduling, system 
control and dispatching activities.
Items
    1. Software licenses.

[[Page 59892]]

    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 used to control 
and dispatch the system.
Items
    1. Fiber optic cable.
    2. Remote terminal units.
    3. Microwave towers.
    4. Global Positioning System (GPS) equipment.
    5. Servers.
    6. Workstations.
    7. Telephones.
* * * * *

Income Chart of Accounts

    1. Utility Operating Income
* * * * *
    411.11 Gains from disposition of RECs.
    411.12 Losses from disposition of RECs.
* * * * *

Income Accounts

* * * * *

411.11  Gains from disposition of RECs.

    This account shall be credited with the gain on the sale, exchange, 
or other disposition of RECs in accordance with paragraph (H) 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 RECs 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 RECs.

    This account shall be debited with the loss on the sale, exchange, 
or other disposition of RECs in accordance with paragraph (H) 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.
* * * * *

Operation and Maintenance Expense Chart of Accounts

    1. Power Production Expenses
    a. steam power generation

Operation

* * * * *
    509.1 Allowances.
    509.2 Bundled renewable energy credits.
    509.3 Unbundled renewable energy credits.
* * * * *

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).
    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).
* * * * *
    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 structures (Major only).
    558.8 Maintenance of solar panels (Major only).
    558.9 Maintenance of collector systems (Major only).
    558.10 Maintenance of generator step-up transformers (Major 
only).
    558.11 Maintenance of inverter expenses (Major only).
    558.12 Maintenance of other accessory electrical equipment 
(Major only).
    558.13 Maintenance of computer hardware (Major only).
    558.14 Maintenance of computer software (Major only).
    558.15 Maintenance of communication equipment (Major only).
    558.16 Maintenance of miscellaneous solar generation plant 
(Major only).
    558.17 Maintenance of solar generation plant (Nonmajor only).
    g. wind generation

Operation

    558.20 Operation supervision and engineering.
    558.21 Wind turbine generation and other plant operating 
expenses (Major only).
    558.22 [Reserved]
    558.23 Rents.
    558.24 Operation supplies and expenses (Nonmajor only).

Maintenance

    558.25 Maintenance supervision and engineering (Major only).
    558.26 Maintenance of structures (Major only).
    558.27 Maintenance of wind turbines, towers and fixtures (Major 
only).
    558.28 [Reserved]
    558.29 Maintenance of collector systems (Major only).
    558.30 Maintenance of generator step-up transformers (Major 
only).
    558.31 Maintenance of inverter expenses (Major only).
    558.32 Maintenance of other accessory electrical equipment 
(Major only).
    558.33 Maintenance of computer hardware (Major only).
    558.34 Maintenance of computer software (Major only).
    558.35 Maintenance of communication equipment (Major only).
    558.36 Maintenance of miscellaneous wind generation plant (Major 
only).
    558.37 Maintenance of wind generation plant (Nonmajor only).
    h. other non-hydro 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).

[[Page 59893]]

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 non-hydro renewable 
generation plant (Major only).
    559.16 Maintenance of other non-hydro 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 structures (Major only).
    578.3 Maintenance of energy storage equipment (Major only).
    578.4 Maintenance of collector systems (Major only).
    578.5 Maintenance of generator step-up transformers (Major 
only).
    578.6 Maintenance of inverter expenses (Major only).
    578.7 Maintenance of computer hardware (Major only).
    578.8 Maintenance of computer software (Major only).
    578.9 Maintenance of communication equipment (Major only).
    578.10 Maintenance of miscellaneous other energy storage plant 
(Major only).
    578.11 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).
* * * * *

Operation and Maintenance Expense Accounts

* * * * *

509.1  Allowances.

    This account shall include the cost of allowances expensed 
concurrent with the monthly emissions. (See General Instruction No. 
21.)

509.2  Bundled renewable energy credits.

    For RECs that were bundled with energy, this account shall include 
the cost of RECs expensed concurrent with the monthly usage. (See 
General Instruction No. 21.)

509.3  Unbundled renewable energy credits.

    For RECs that were unbundled from energy, this account shall 
include the cost of RECs expensed concurrent with the monthly usage. 
(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.)

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

[[Page 59894]]

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.)
* * * * *

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
    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 structures (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of solar structures, the book cost 
of which is includible in account 338.2, Structures and Improvements. 
(See operating expense instruction 2.)

558.8  Maintenance of solar panels (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of solar plant, the book cost of 
which is includible in account 338.4, Solar Panels. (See operating 
expense instruction 2.)

558.9  Maintenance of collector systems (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of collector

[[Page 59895]]

systems, the book cost of which is includible in account 338.5, 
Collector Systems. (See operating expense instruction 2.)
Items
    1. Work of the following character on poles, towers, and fixtures:
    a. Installing additional clamps or removing clamps or strain 
insulators on guys in place.
    b. Painting poles, towers, crossarms, or pole extensions.
    c. Readjusting and changing position of guys or braces.
    d. Realigning and straightening poles, crossarms, braces, pins, 
racks, brackets, and other pole fixtures.
    f. Relocating crossarms, racks, brackets, and other fixtures on 
poles.
    g. Shaving, cutting rot, or treating poles or crossarms.
    h. Supporting conductors, transformers, and other fixtures and 
transferring them to new poles during pole replacements.
    2. Work of the following character on overhead conductors and 
devices:
    a. Overhauling and repairing line cutouts, line switches, line 
breakers, and capacitor installations.
    b. Cleaning insulators and bushings.
    c. Refusing line cutouts.
    d. Repairing line oil circuit breakers and associated relays and 
control wiring.
    e. Repairing grounds.
    f. Resagging, retying, or rearranging position or spacing of 
conductors.
    g. Sampling, testing, changing, purifying, and replenishing 
insulating oil.
    h Transferring loads, switching, and reconnecting circuits and 
equipment for maintenance purposes.
    i. Repairing line testing equipment.
    j. Trimming trees and clearing brush.

558.10  Maintenance of generator step-up transformers (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of generator step-up transformers, 
the book cost of which is includible in account 338.6, Generator Step-
up Transformers. (See operating expense instruction 2.)

558.11  Maintenance of inverter expenses (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of inverter expenses, the book 
cost of which is includible in account 338.7, Inverters. (See operating 
expense instruction 2.)

558.12  Maintenance of other accessory electrical equipment (Major 
only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of other electrical accessory 
equipment, the book cost of which is includible in account 338.8 Other 
Accessory Electrical Equipment. (See operating expense instruction 2.)

558.13   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.)

558.14  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.)

558.15  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.)

558.16  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.)

558.17   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 338.1 to 338.12, 
inclusive. (See operating expense instruction 2.)

558.20  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.

558.21  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.
    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.

[[Page 59896]]

    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.

558.22  [Reserved]

558.23  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.)

558.24  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.

558.25  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.)

558.26  Maintenance of structures (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. 
(See operating expense instruction 2.)

558.27  Maintenance of wind turbines, towers and fixtures (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of wind turbines, the book cost of 
which is includible in account 338.23, Wind Turbines and in account 
338.24, Wind Towers and Fixtures. (See operating expense instruction 
2.)

558.28  [Reserved]

558.29  Maintenance of collector systems (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of collector systems, the book 
cost of which is includible in account 338.26, Collector Systems. (See 
operating expense instruction 2.)
Items
    1. Work of the following character on poles, towers, and fixtures:
    a. Installing additional clamps or removing clamps or strain 
insulators on guys in place.
    b. Painting poles, towers, crossarms, or pole extensions.
    c. Readjusting and changing position of guys or braces.
    d. Realigning and straightening poles, crossarms, braces, pins, 
racks, brackets, and other pole fixtures.
    f. Relocating crossarms, racks, brackets, and other fixtures on 
poles.
    g. Shaving, cutting rot, or treating poles or crossarms.
    h. Supporting conductors, transformers, and other fixtures and 
transferring them to new poles during pole replacements.
    2. Work of the following character on overhead conductors and 
devices:
    a. Overhauling and repairing line cutouts, line switches, line 
breakers, and capacitor installations.
    b. Cleaning insulators and bushings.
    c. Refusing line cutouts.
    d. Repairing line oil circuit breakers and associated relays and 
control wiring.
    e. Repairing grounds.
    f. Resagging, retying, or rearranging position or spacing of 
conductors.
    g. Sampling, testing, changing, purifying, and replenishing 
insulating oil.
    h Transferring loads, switching, and reconnecting circuits and 
equipment for maintenance purposes.
    i. Repairing line testing equipment.
    j. Trimming trees and clearing brush.

558.30  Maintenance of generator step-up transformers (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of generator step-up transformers, 
the book cost of which is includible in account 338.27, Generator Step-
up Transformers. (See operating expense instruction 2.)

558.31   Maintenance of inverter expenses (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of inverter expenses, the book 
cost of which is includible in account 338.28, Inverters. (See 
operating expense instruction 2.)

558.32  Maintenance of other accessory electrical equipment (Major 
only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of other accessory electrical 
equipment, the book cost of which is includible in account 338.29, 
Other Accessory Electrical Equipment. (See operating expense 
instruction 2.)

558.33   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.)

558.34  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.)

558.35  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.)

558.36   Maintenance of miscellaneous wind generation (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.)

558.37  Maintenance of wind generation (Nonmajor only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of wind

[[Page 59897]]

generation plant the book cost of which is includible in plant accounts 
338.20 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 non-hydro 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 non-hydro renewable 
power generating stations.
Labor
    1. Supervising other non-hydro renewable production.
    2. Operating other non-hydro 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 non-hydro 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 non-hydro 
renewable generation operation expense accounts.
Labor
    1. Operating switchboards, switch gear and electric control and 
protective equipment.
    2. Operating other non-hydro 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.
    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 non-hydro 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 non-hydro 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 non-
hydro 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 wind 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 steam plant, the book cost of 
which is includible in account 339.4, Boiler Plant Equipment. (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 Electric 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 non-hydro 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

[[Page 59898]]

incurred for annual computer software license renewals, annual software 
update services and the cost of ongoing support for software products 
serving the other non-hydro 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 non-hydro renewable generation subfunction. (See operating 
expense instruction 2.)

559.15  Maintenance of miscellaneous other non-hydro renewable 
generation plant (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in maintenance of miscellaneous other non-hydro 
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 non-hydro renewable generation plant 
(Nonmajor only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of other non-hydro renewable 
generation plant the book cost of which is includible in plant accounts 
339.1 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]

* * * * *

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.

[[Page 59899]]

    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 structures (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of energy storage structures, the 
book cost of which is includible in account 387.2, Structures and 
Improvements. (See operating expense instruction 2.)

578.3  Maintenance of energy storage 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 387.3. Energy Storage Equipment. (See operating 
expense instruction 2.)

578.4  Maintenance of collector systems (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of collector systems, the book 
cost of which is includible in account 387.5, Collector Systems. (See 
operating expense instruction 2.)
Items
    1. Work of the following character on poles, towers, and fixtures:
    a. Installing additional clamps or removing clamps or strain 
insulators on guys in place.
    b. Painting poles, towers, crossarms, or pole extensions.
    c. Readjusting and changing position of guys or braces.
    d. Realigning and straightening poles, crossarms, braces, pins, 
racks, brackets, and other pole fixtures.
    f. Relocating crossarms, racks, brackets, and other fixtures on 
poles.
    g. Shaving, cutting rot, or treating poles or crossarms.
    h. Supporting conductors, transformers, and other fixtures and 
transferring them to new poles during pole replacements.
    2. Work of the following character on overhead conductors and 
devices:
    a. Overhauling and repairing line cutouts, line switches, line 
breakers, and capacitor installations.
    b. Cleaning insulators and bushings.
    c. Refusing line cutouts.
    d. Repairing line oil circuit breakers and associated relays and 
control wiring.
    e. Repairing grounds.
    f. Resagging, retying, or rearranging position or spacing of 
conductors.
    g. Sampling, testing, changing, purifying, and replenishing 
insulating oil.
    h. Transferring loads, switching, and reconnecting circuits and 
equipment for maintenance purposes.
    i. Repairing line testing equipment.
    j. Trimming trees and clearing brush.

578.5   Maintenance of generator step-up transformers (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of generator step-up transformers, 
the book cost of which is includible in account 387.6, Generator Step-
up Transformers. (See operating expense instruction 2.)

578.6  Maintenance of inverter expenses (Major only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of inverter expenses, the book 
cost of which is includible in account 387.7, Inverters. (See operating 
expense instruction 2.)

578.7  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.)

578.8  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.)

578.9  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.)

578.10  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 other non-hydro 
renewable plant, the book cost of which is includible in account 
387.11, Miscellaneous Energy Storage Equipment. (See operating expense 
instruction 2.)

578.11  Maintenance of other energy storage plant (Nonmajor only).

    This account shall include the cost of labor, materials used and 
expenses incurred in the maintenance of energy storage plant the book 
cost of which is includible in plant accounts 387.1 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.

    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.)

[[Page 59900]]

935.2  Maintenance of computer software.

    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.

    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 appendices will not appear in the Code of 
Federal Regulations.

Appendix A--Proposed Changes to the USofA

    Appendix A is a copy of the proposed changes to the regulatory 
text with deletions and additions marked as a courtesy to industry 
to make it easier to see the proposed changes. You can find the text 
of appendix A at https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20220728-3045.

Appendix B--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: Proposed deletions are in brackets and proposed 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. 2022-16610 Filed 9-30-22; 8:45 am]
BILLING CODE 6717-01-C