New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter V - WATERWORKS CORPORATIONS › Subchapter E - Uniform Systems Of Accounts › Article 2 - Classes C and D › Part 576 - Instructions-general › Section 576.8 - Depreciation accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Depreciation,
as applied to water plant, means the net loss in
					 service value not restored by current maintenance, incurred in connection with
					 the consumption or prospective retirement of water 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 §
											576.3) the estimated amount of
					 depreciation on water 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
									 Water Plant is Included
Subdivision of
									 Account 1250 to be Credited
Account to be
									 Charged
1101
Water Plant in Service
1250.1
Reserve for Depreciation of Water Plant in
								  Service
1503
Depreciation (See notes hereunder.)
1102
Water Plant Leased to Others
1250.2
Reserve for Depreciation of Water Plant Leased to
								  Others
1508.2
Expenses of Water Plant Leased to Others
1104
Water Plant Held for Future Use
1250.4
Reserve for Depreciation of Water Plant Held for
								  Future Use
The question to be submitted to the
								  commission
1106
Unclassified Water Plant
1250.6
Reserve for Depreciation of Unclassified Water
								  Plant
1503
Depreciation (See notes hereunder.)
Note A:
To the extent that any water
						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 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 heading "Utility Plant" in the Balance Sheet
						Accounts,
infra
) 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 water plant instruction section
						577.2.