New Mexico Administrative Code › Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES › Chapter 12 - WATER SERVICES › Part 720 - UNIFORM SYSTEMS OF ACCOUNTS AND ANNUAL REPORT FORMS FOR WATER UTILITIES › Section 17.12.720.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
When used in this system of accounts unless otherwise
				  specified the following definitions will apply.
A. "Accounts" means the accounts prescribed
				in this system of accounts.
B.
				"Amortization" means the gradual extinguishment of an account by distributing
				such amount over a fixed period, over the life of the asset or liability to
				which it applies, or over the period during which it is anticipated the benefit
				will be realized.
C. "Associated
				Companies" means companies or persons that directly or indirectly through one
				(1) or more intermediaries control, are controlled by, or are under common
				control with the accounting company.
D. "Book Cost" means the amount at which
				property is recorded in these accounts without deduction of related provisions
				for accrued depreciation, amortization, or for other purposes.
E. "Commission," unless otherwise indicated
				by the context, means the New Mexico Public Service Commission [New Mexico
				Public Regulation Commission].
F.
				"Cost" means the amount of money actually paid for property or services. When
				the consideration given is other than cash, the value of such consideration
				shall be determined on a cash basis.
G. "Cost of Removal" means the cost of
				demolishing, dismantling, tearing down, or otherwise removing utility plant,
				including the cost of transportation and handling incidental thereto.
H. "Depreciation," as applied to depreciable
				utility plant, means the loss in service value not restored by current
				maintenance incurred in connection with the consumption or prospective
				retirement of utility 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, inadequacy, obsolescence, changes in the art,
				changes in demand, and requirements of public authorities. (See "Depreciation
				Accrual Rates.")
I. "Minor Items of
				Property" means the associated parts or items of which retirement units are
				composed. (See "List of Retirement Units.")
J. "Net Salvage Value" means the salvage
				value of property retired less the cost of removal.
K. "Original Cost" as applied to utility
				plant means the cost of such property to the person first devoting it to public
				service.
L. "Person" means an
				individual, a corporation, a partnership, an association, a joint stock
				company, a business trust, or any organized group of persons whether
				incorporated or not, or any receiver or trustee.
M. "Property Retired," as applied to utility
				plant, means property which has been removed, sold, abandoned, destroyed, or
				which for any cause has been withdrawn from service.
N. "Replacing" or "Replacement," when not
				otherwise indicated in the context, means the construction or installation of
				utility plant in place of property retired together with the removal of the
				property retired.
O. "Retained
				Earnings" means the accumulated net income of the utility less distributions to
				stockholders or owners and other adjustments.
P. "Retirement Units" means those items of
				utility plant which, when retired with or without replacement, are accounted
				for by crediting the book cost thereof to the utility plant account in which
				included. (See "List of Retirement Units.")
Q. "Salvage Value" means the amount received
				for property retired less any expenses incurred in connection with the sale or
				in preparing the property for sale; or if retained, the amount at which the
				material recoverable is chargeable to materials and supplies or other
				appropriate account.
R. "Service
				Life" means the time between the date utility plant is includable in utility
				plant in service or utility plant leased to others and the date of its
				retirement.
S. "Utility," as used
				herein and when not otherwise indicated in the context, means any public
				utility to which this system of accounts is applicable.