New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter II - ELECTRIC UTILITIES › Subchapter F - UNIFORM SYSTEMS OF ACCOUNTS › Article 3 - Municipal Electric Utilities › Part 197 - Instructions › Section 197.21 - Operating property accounts, basis of charges to

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Amounts chargeable to operating property
					 accounts shall be the reasonable and necessary cost (see §
											196.1,
					 subd. [a][8]) of property constructed or installed by the accounting utility
					 and the original cost (see §
											196.1,
					 subd. [a][33] and note to §
											197.20) of operating property acquired from a predecessor public utility (see §
											197.27).
					 Existing book balances may be carried until the completion of the inventory and
					 the determination of original cost as required under section
					 197.22.
					 At that time proposed journal entries to adjust the differences, if any,
					 between book cost as previously carried and original cost shall be filed with
					 the commission. No change (except correction of errors) shall be made in the
					 book cost of any item except upon order of the commission. Nothing herein
					 stated shall be taken as permitting the recording as part of the original cost
					 of operating property of amounts which in previous years were charged to
					 operating expenses, operating taxes or to other income or surplus
					 accounts.
(b) When the
					 consideration given for property is anything other than money, the current
					 money value of such consideration shall be used. In the entry recording such a
					 transaction the actual consideration shall be described with sufficient
					 particularity to identify it. The utility shall be prepared to furnish to the
					 commission the particulars of its determination of the money value of the
					 consideration if other than money.
(c) The cost of hand tools and other
					 individual items of small value and short life shall be charged to the
					 appropriate operating expense or clearing accounts according to the use
					 thereof, except that if such items are consumed directly in construction work,
					 the cost may be included as part of the cost of the constructed unit.
(d) When property is purchased under any plan
					 involving deferred payments, no charges shall be made to operating property
					 accounts for interest, insurance, or other expenditures incidental to such form
					 of payment.
(e) The cost of the
					 construction or acquisition of property chargeable to the operating property
					 accounts shall include the cost of direct labor, indirect labor, materials,
					 transportation, contract work, engineering and supervision, law expenditures,
					 injuries and damages, taxes, interest during construction, permits and
					 privileges, rent of construction facilities, compensation and other insurance
					 applicable to construction, and other analogous elements applicable to the
					 construction and acquisition of property. The cost includible in the principal
					 items are as follows:
(1) Direct labor
					 includes the pay and expenses of employees directly engaged in construction
					 work and of foremen in direct charge thereof.
(2) Indirect labor includes the portion of
					 the pay and expenses of employees indirectly connected with construction work,
					 such as timekeepers, storekeepers, and general office employees, applicable to
					 construction work. (See §
												197.10.)
(3) Materials includes the purchase price at
					 the point of free delivery plus customs duties, excise taxes, and the costs of
					 inspecting, loading, and transporting, and related stores expense. In
					 determining the cost of materials used for construction, proper allowance shall
					 be made for unused portions of materials recovered in performance of the work
					 involved, and for discounts allowed in the purchase of materials.
(4) Transportation includes the cost of
					 transporting purchased equipment and of transporting employees, materials and
					 supplies, tools, and service equipment to and from points of construction. It
					 includes amounts paid therefor to others and the cost of transportation service
					 rendered by vehicles owned by the utility.
(5) Contract work includes amounts paid for
					 work performed under contract and expenses incurred by the utility in
					 connection with such work, including inspection, engineering and supervision,
					 and costs incident to the award of contracts.
(6) Engineering and supervision includes the
					 portion of the pay and expenses of general officers, engineers, surveyors,
					 draftsmen, and superintendents, and their assistants, applicable to
					 construction work.
(7) Employee
					 pensions and benefits includes the portion of the cost of employee pensions and
					 benefits which is applicable to construction work.
(8) Law expenditures includes the general law
					 expenditures incurred in connection with the construction or acquisition of
					 property and the court and legal costs directly related thereto.
(9) Injuries and damages includes
					 expenditures or losses in connection with construction work on account of
					 injuries to persons or damages to property of others.
(10) Taxes includes taxes actually paid on
					 physical property during construction and before the facilities are ready for
					 service. This includes taxes on land for the period during which it is included
					 in account 110, Construction Work in Progress, until a structure thereon is
					 ready for service or the land is otherwise used in operations. (See note A
					 under account 311, Land.)
(11)
					 Interest includes the net current cost of borrowed funds, or funds furnished by
					 the operating or lessor municipality, used for construction purposes and the
					 same rate upon the utility's own funds so used. Such interest shall be charged
					 each month upon the balance at the beginning of the month in account 110,
					 Construction Work in Progress, and credited to account 455, Interest Charged to
					 Property--Cr. The period for which interest may be so charged shall be limited
					 to the duration of the construction work and shall not extend beyond the time
					 when the property becomes ready for service. In case construction work is
					 suspended, interest charges may not be continued for more than six months
					 thereafter, except upon order of the commission.