New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter IV - STEAM UTILITIES › Subchapter F - Uniform Systems Of Accounts › Article 1 - Classes A and B › Part 460 - General Provisions › Section 460.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) When used in
					 this system of accounts:
(1) Accounts means
					 the accounts prescribed in this system of accounts.
(2) Actually issued, as applied to securities
					 issued or assumed by the utility, means those which have been sold to bona fide
					 purchasers for a valuable consideration (including those issued in exchange for
					 other securities or other property); also securities issued as dividends on
					 stock, and those which have been issued in accordance with contractual
					 requirements direct to trustees of sinking funds.
(3) Actually outstanding, as applied to
					 securities issued or assumed by the utility, means those which have been
					 actually issued and are neither retired nor held by or for the utility;
					 provided, however, that securities held by trustees shall be considered as
					 actually outstanding.
(4)
					 Amortization means the gradual extinguishment of an amount in an account by
					 prorating 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.
(5) Associated companies means companies or
					 persons that, directly or indirectly, through one or more intermediaries,
					 control, or are controlled by, or are under common control with, the accounting
					 company.
(6) Control (including the
					 terms controlling, controlled by, and under common control with) means the
					 possession, directly or indirectly, of the power to direct or cause the
					 direction of the management and policies of a company, whether such power is
					 exercised through one or more intermediary companies, or alone, or in
					 conjunction with, or pursuant to an agreement, and whether such power is
					 established through a majority or minority ownership or voting of securities,
					 common directors, officers, or stockholders, voting trusts, holding trusts,
					 associated companies, contract, or any other direct or indirect
					 means.
(7) Book cost means the
					 amount at which property is recorded in these accounts without deduction of
					 related reserves. As applied to steam plant, book cost means the amount at
					 which property is included in account 106 or in accounts 101 to 104.
(8) Book value, when applied to steam plant,
					 means the book cost less related depreciation reserves. When applied to other
					 property, it means book cost less related reserves for loss in value.
(9) Buildings. (See steam plant instruction
					 §
												463.9.)
(10) Commission or the commission means the
					 Public Service Commission of the State of New York.
(11) Company. (See par. [28],
					 infra.)
(12) Construction cost,
					 components of. (See steam plant instruction §
												463.4.)
(13) Cost means the amount of money actually
					 paid for property or services or the cash value at the time of the transaction
					 of any consideration other than money (See, however, steam plant instruction
					 §
												463.2.)
(14) Cost of removal means the cost of
					 demolishing, dismantling, tearing down, or otherwise removing steam plant,
					 including the cost of transportation and handling incidental thereto.
(15) Debt expense means all expenses in
					 connection with the issuance and sale of evidences of debt, such as fees for
					 drafting mortgages and trust deeds; fees and taxes for issuing or recording
					 evidences of debt; cost of engraving and printing bonds and certificates of
					 indebtedness; fees paid trustees; specific costs of obtaining governmental
					 authority; fees for legal services; fees and commissions paid underwriters,
					 brokers, and salesmen for marketing such evidences of debt; fees and expenses
					 of listing on exchanges; and other like costs.
(16) Depreciation, as applied to steam plant,
					 means the net loss in service value not restored by current maintenance,
					 incurred in connection with the consumption, use or prospective retirement of
					 steam plant in the course of service from causes 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.
(17) Discount, as applied to the securities
					 issued or assumed by the utility, means the excess of the par or face value of
					 the securities plus interest or dividends accrued at the date of the sale over
					 the cash value of the consideration received from their sale.
(18) Equipment. (See steam plant instruction
					 §
												463.10.)
(19) Improvements. (See steam plant
					 instruction §
												463.9.)
(20) Investment advances means advances,
					 represented by notes or by book accounts only, with respect to which it is
					 mutually agreed or intended between the creditor and debtor that they shall be
					 settled by the issuance of capital stock or long-term obligations, or shall not
					 be subject to current settlement.
(21) Land and land rights. (See steam plant
					 instruction §
												463.8.)
(22) Long-term debt means obligations having
					 a life of more than one year from date of creation or assumption except
					 obligations representing advances from associated companies, and all unmatured
					 bonds and receivers' certificates.
(23) Minor items of property means the
					 associated part or items of which retirement units (see par. [36], infra.) are
					 composed.
(24) Net salvage value
					 means the salvage value of property retired less the cost of removal.
(25) Nominally issued, as applied to
					 securities issued or assumed by the utility, means those which have been
					 signed, certified, or otherwise executed, and placed with the proper officer
					 for sale and delivery, or pledged, or otherwise placed in some special fund of
					 the utility, but which have not been sold or issued direct to trustees of
					 sinking funds in accordance with contractual requirements.
(26) Nominally outstanding, as applied to
					 securities issued or assumed by the utility, means those which, after being
					 actually issued, have been reacquired by or for the utility under circumstances
					 which require them to be considered as held alive and not retired, provided,
					 however, that securities held by trustees shall be considered as actually
					 outstanding.
(27) Original cost, as
					 applied to steam plant, means the cost of such property to the person, or to
					 the municipal corporation operating a public utility, first devoting it to
					 public service.
(28) 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.
(29) Premium, as applied to the securities
					 issued or assumed by the utility, means the excess of the cash value of the
					 consideration received from their sale over the sum of their par or face value
					 and interest or dividends accrued at the date of sale.
(30) Property retired, as applied to steam
					 plant, means property which has been removed, sold, abandoned, destroyed, or
					 which for any cause has ceased to be used and useful in the steam service of
					 the public.
(31) Replacing or
					 replacement, when not otherwise indicated in the context, means the
					 construction or installation of steam plant in place of property retired,
					 together with the removal of the property retired.
(32) 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 account 131, materials and supplies, or
					 other appropriate account.
(33)
					 Service value means the difference between original cost and net salvage value
					 of steam plant.
(34) Steam
					 corporation. (See Public Service Law.)
(35) Structures. (See steam plant instruction
					 §
												463.9.)
(36) Retirement units means those items of
					 steam plant which when retired, with or without replacement are accounted for
					 by crediting the book cost thereof to the steam plant account in which
					 included.
(37) Utility or utility
					 company, as used herein and when not otherwise indicated in the context, means
					 any steam corporation. (See Public Service Law.)