Florida Administrative Code › 25 - PUBLIC SERVICE COMMISSION › 25 - Departmental › Chapter 25-7 - GAS SERVICE BY GAS PUBLIC UTILITIES › Part III - GENERAL MANAGEMENT REQUIREMENTS › Section 25-7.0461 - Capitalization Versus Expensing

Current through Reg. 50, No. 138; July 16, 2024
(1) Except
				  as provided in subsections (2)-(11) of this rule, the rules and definitions set
				  forth below are intended to establish capitalization versus expensing
				  guidelines and uniform retirement units for natural gas utilities and do not
				  relieve any utility from maintaining its accounts and records in conformity
				  with the Uniform System of Accounts prescribed by the Code of Federal
				  Regulations, Title 18, Subchapter F, Part 201 (2013), which is incorporated by
				  reference in Rule  25-7.014, F.A.C.
(2) For the purposes of this part, the
				  following definitions shall apply:
(a) "Book
				  Cost" means the amount at which a retirement unit is included in a plant
				  account, including all components of labor and installation costs without
				  deduction of related provisions for accrued depreciation. This cost should be
				  determined from the utility's records and if this cannot be done, it should be
				  estimated.
(b) "Cost" means the
				  original purchased cost plus associated labor and installation costs.
(c) "Cost of Removal" means the cost of
				  demolishing, removing, tearing down or otherwise disposing of a retirement
				  unit, including the cost of transportation and handling.
(d) "Cradle-To-Grave Accounting" means an
				  accounting method which treats a unit of plant as being in service from the
				  time it is first purchased until it is finally junked or is otherwise finally
				  disposed of. The period in shop for refurbishing, and in stock/inventory
				  awaiting reinstallation are treated as being in service.
(e) "Gross Salvage" means the amount received
				  from selling or trading-in a retirement unit; or, if retained, the original
				  (estimated if not known) material cost of the unit. (Original Material Cost =
				  Book Cost Less Labor and Installation Cost)
(f) "Item" means a single identifiable unit
				  of plant. Where a dollar amount (viz., $500 minimum for capitalization) is
				  imposed, this amount limit shall apply to the single item and not to a block or
				  group of such items purchased on one order.
(g) "Minor Item" means any part or element of
				  plant which is not designated as a retirement unit, but is a component part of
				  the retirement unit.
(h)
				  "Retirement" means a retirement unit or unreplaced minor item which has been
				  removed, sold, abandoned, destroyed, or otherwise removed from service.
				  (Exception see "Cradle-to-Grave")
(i) "Retirement Unit" means an item of
				  utility plant which, when placed into service, is capitalized and when removed
				  from service, with or without replacement, is always retired. The "List of
				  Retirement Units Gas Utilities Effective August 21, 1986" ("List of Retirement
				  Units") (10/14), is hereby incorporated by reference into this rule and may be
				  accessed at
http://www.flrules.org/Gateway/reference.asp?No=Ref-04833
.