New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter II - ELECTRIC UTILITIES › Subchapter F - UNIFORM SYSTEMS OF ACCOUNTS › Article 2 - Classes C and D › Part 181 - Instructions-general › Section 181.8 - Depreciation accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Depreciation,
as applied to electric plant, means the net loss
					 in service value not restored by current maintenance, incurred in connection
					 with the consumption or prospective retirement of electric 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.
(b) Each utility shall
					 record each month (see also general instruction §
											181.3, above) the estimated amount
					 of depreciation on electric 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
									 Electric Plant is Included
Subdivision of
									 Account 1250 to be Credited
Account to be
									 Charged
1101 Electric Plant in Service
1250.1 Reserve for Depreciation of Electric Plant
								  in Service
1503 Depreciation (See notes hereunder.)
1102 Electric Plant Leased to Others
1250.2 Reserve for Depreciation of Electric Plant
								  Leased to Others
1508.2 Expenses of Electric Plant Leased to
								  Others
1104 Electric Plant Held for Future Use
1250.4 Reserve for Depreciation of Electric Plant
								  Held for Future Use
The question to be submitted to the commission
1106 Unclassified Electric Plant
1250.6 Reserve for Depreciation of Unclassified
								  Electric Plant
1503 Depreciation (See notes hereunder.)
Note A:
To the extent that any electric 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 (§
												190.1), which are subject to
						regulation 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 electric plant instruction §
												182.2.