New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter III - GAS UTILITIES › Subchapter F - UNIFORM SYSTEMS OF ACCOUNTS › Article 2 - Classes C and D › Part 321 - Instructions-general › Section 321.8 - Depreciation accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Depreciation,
as applied to gas plant, means the net loss in
					 service value not restored by current maintenance, incurred in connection with
					 the consumption or prospective retirement of gas plant in the course of service
					 from causes which are known to be in current operation and against which the
					 utility is not protected by insurance. Among the causes to be given
					 consideration are wear and tear, decay, action of the elements, exhaustion of
					 natural resources, inadequacy, obsolescence, changes in the art, changes in
					 demand, and requirements of public authorities.
(b) Each utility shall record each month (see
					 also general instruction §
											321.3) the estimated amount of
					 depreciation on gas plant accrued during that month, by crediting the
					 appropriate subdivision of account 1250, Reserve for Depreciation of Utility
					 Plant, and charging the accounts for the depreciation expense as follows:
Account In Which Gas Plant
									 is Included
Subdivision of Account
									 1250 to be Credited
Account to be
									 Charged
1101 Gas Plant in Service
1250.1 Reserve for Depreciation of Gas Plant in
								  Service
1503 Depreciation (See notes hereunder.)
1102 Gas Plant Leased to Others
1250.2 Reserve for Depreciation of Gas Plant Leased
								  to Others
1505.2 Expenses of Gas Plant Leased to Others
1104 Gas Plant Held for Future Use
1250.4 Reserve for Depreciation of Gas Plant Held
								  for Future Use
The question to be submitted to the Commission
1106 Unclassified Gas Plant
1250.6 Reserve for Depreciation of Unclassified Gas
								  Plant
1503 Depreciation (See notes hereunder.)
Note A:
To the extent that any gas property is used in
						construction, the depreciation thereon shall be charged to account 1103,
						Construction Work in Progress; if clearing accounts are used, depreciation of
						plant (except structures) the maintenance and operation of which are charged to
						clearing accounts, shall be charged to such clearing accounts.
Note B:
The accounting for depreciation of utility plant in other
						departments carried in account 1108, Other Utility Plant, which are subject to
						regulations by the commission shall be in accordance with the effective system
						of accounts applicable to such operations.
Note C:
Depreciation accruals on "Common" plant (see note B under
						Utility Plant) shall be currently distributed on an equitable basis to the
						departments making use thereof; the reserve applicable to common plant shall be
						carried by Class C utilities in subdivisions of account 1250, Reserve for
						Depreciation of Utility Plant, applicable to the plant account wherein the
						common plant is carried.
Note D:
See also account 1250, Reserve for Depreciation of
						Utility Plant, and gas plant instruction section
						322.2.