New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter II - ELECTRIC UTILITIES › Subchapter F - UNIFORM SYSTEMS OF ACCOUNTS › Article 3 - Municipal Electric Utilities › Part 197 - Instructions › Section 197.23 - Operating property retired

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Except as otherwise provided in paragraph (2) of subdivision (b), and
					 subdivision (c) hereunder, the book cost of depreciable operating property
					 retired (see §
											196.1,
					 subd. [a][35]) shall be charged in its entirety to account 261, Depreciation
					 Reserves, together with the cost of removal. To that account shall be credited
					 salvage value and amounts recovered as insurance or otherwise, including
					 amounts provided in account 264, Insurance Reserve.
(b) For the purpose of avoiding undue
					 refinement in accounting for the replacement of small items of property,
					 depreciable Operating Property-- Electric and Operating Property--General shall
					 be grouped into (1) units of property, and (2) minor items, and the accounting
					 for retirements and replacements of each group shall be as follows:
(1) Units of property. Not later than six
					 months following the date when it becomes subject to this system of accounts,
					 each utility shall file with the commission a statement subscribed by the
					 responsible municipal official or other duly authorized representative showing
					 for each account or subdivision thereof in Operating Property--Electric (and
					 Operating Property--General) a list of the types and quantities of property
					 which are accounted for as units of property. Any revision thereof shall be
					 filed in like manner. The book cost of any unit of property retired shall be
					 credited to the appropriate operating property account and charged to account
					 261, Depreciation Reserves, whether or not replaced. The cost of property
					 installed in place of property retired shall be charged to the appropriate
					 operating property account.
(2)
					 Minor items.
(i) This group includes any part
					 or element which is not designated as a unit of property. The book cost of any
					 minor item of property retired and not replaced shall be credited to the
					 operating property account wherein included and charged to account 261,
					 Depreciation Reserves, except that, if the book cost of a minor item of
					 property has been or will be accounted for by its inclusion in the unit of
					 property of which it is a part when such unit is retired, no separate credit to
					 the operating property account is required when such minor item is
					 retired.
(ii) If minor items of
					 property are retired and replaced (apart from the unit of property of which
					 they form a part or with which they are associated), no entry shall be made in
					 the operating property account or in account 261, Depreciation Reserves. The
					 cost of the replacement shall be charged to the account appropriate for the
					 cost of repairs to the property, except that, if the replacement effects a
					 substantial betterment (the primary aim of which is to make the property
					 affected more useful, more efficient, or of greater capacity), there shall be
					 charged to the appropriate operating property account the access cost of the
					 replacement over the estimated cost at current prices of replacing without
					 betterment the minor items retired.