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 322 - Instructions-gas Plant Accounts › Section 322.3 - Components of construction cost

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The cost of construction properly
					 includible in the gas plant accounts shall include, when applicable, and when
					 actually incurred, the cost of contract work, labor, materials and supplies,
					 transportation, engineering and supervision, law expenditures, compensation and
					 other insurance and injuries and damages applicable to construction, taxes and
					 interest during construction, permits and privileges, use of construction
					 facilities, cost of keeping construction records, and other analogous elements
					 applicable to the construction and acquisition of gas plant. The costs
					 includible in the principal items are:
(1)
					 Contract work includes amounts paid for work performed under contract by other
					 companies, firms, or individuals, costs incident to the award of such
					 contracts, and the inspection of such work. The cost of work performed by the
					 utility on projects when part of the work is performed by the utility itself
					 and part is performed by others under contract shall be included as labor,
					 materials, transportation, general administration, engineering services,
					 etc.
(2) Labor includes the pay and
					 expenses of employees of the utility engaged on construction work, and also
					 workmen's compensation insurance, payroll taxes and similar items of
					 expense.
(3) Materials and supplies
					 includes the purchase price at the point of free delivery plus customs duties,
					 excise taxes, the cost of inspection, loading and transportation, the related
					 stores expenses and the cost of fabricated materials from the utility's shop.
					 In determining the cost of materials and supplies used for construction, proper
					 credit shall be made for unused materials and supplies, for materials recovered
					 from temporary structures used in performing the work involved, and for
					 discounts allowed and realized in the purchase of materials and
					 supplies.
(4) Transportation
					 includes the cost of transporting employees, materials and supplies, tools,
					 purchased equipment, and other work equipment (when not under own power) to and
					 from points of construction. It includes amounts paid to others as well as the
					 cost of operating the utility's own transportation equipment.
(5) Engineering and supervision includes the
					 portion of the pay and expenses of general officers, engineers, surveyors,
					 draftsmen, inspectors, superintendents and their assistants applicable to
					 construction work and the amounts paid to other companies, firms or individuals
					 engaged by the utility to plan, design, prepare estimates, supervise, inspect,
					 or give general advice and assistance in connection with construction
					 work.
(6) Law expenditures includes
					 the general law expenditures incurred in connection with construction and the
					 court and legal costs directly related thereto.
(7) Interest during construction includes the
					 net cost of borrowed funds used for construction purposes and a reasonable rate
					 upon the utility's own funds when so used. Interest during construction shall
					 be charged to the individual job upon which the funds are expended and shall be
					 credited to account 1536, Interest Charged to Construction--Credit. The period
					 for which interest may be capitalized shall be limited to the period of
					 construction. No interest shall be included in these accounts upon expenditures
					 for construction projects which have been abandoned.
(8) Taxes during construction includes taxes
					 on physical property (including land) during the period of construction and
					 other taxes properly includible in construction costs before the facilities
					 become available for service.