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 182 - Instructions-electric Plant Accounts › Section 182.3 - Components of construction cost

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The cost of construction properly
					 includible in the electric plant accounts shall include, when applicable and
					 when actually incurred, the cost of contract work, labor, materials and
					 supplies, transportation, engineering and supervision, law expenditures,
					 compensation and other insurance and injuries and damages applicable to
					 construction, taxes and interest during construction, permits and privileges,
					 use of construction facilities, cost of keeping construction records, and other
					 analogous elements applicable to the construction and acquisition of electric
					 plant. The costs includible in the principle items are:
(1) Contract work includes amounts paid for
					 work performed under contract by other companies, firms, or individuals, costs
					 incident to the award of such contracts, and the inspection of such work. The
					 cost of work performed by the utility on projects when part of the work is
					 performed by the utility itself and part is performed by others under contract
					 shall be included as labor, materials, transportation, general administration,
					 engineering services, etc.
(2)
					 Labor includes the pay and expenses of employees of the utility engaged on
					 construction work, and also workmen's compensation insurance, payroll taxes and
					 similar items of expense.
(3)
					 Materials and supplies includes the purchase price at the point of free
					 delivery plus customs duties, excise taxes, the cost of inspection, loading and
					 transportation, the related stores expenses and the cost of fabricated
					 materials from the utility's shop. In determining the cost of materials and
					 supplies used for construction, proper credit shall be made for unused
					 materials and supplies, for materials recovered from temporary structures used
					 in performing the work involved, and for discounts allowed and realized in the
					 purchase of materials and supplies.
(4) Transportation includes the cost of
					 transporting employees, materials and supplies, tools, purchase equipment, and
					 other work equipment (when not under own power) to and from points of
					 construction. It includes amounts paid to others as well as the cost of
					 operating the utility's own transportation equipment.
(5) Engineering and supervision includes the
					 portion of the pay and expenses of general officers, engineers, surveyors,
					 draftsmen, inspectors, superintendents and their assistants applicable to
					 construction work and the amounts paid to other companies, firms or individuals
					 engaged by the utility to plan, design, prepare estimates, supervise, inspect,
					 or give general advice and assistance in connection with construction
					 work.
(6) Law expenditures includes
					 the general law expenditures incurred in connection with construction and the
					 court and legal costs directly related thereto.
(7) Interest during construction includes the
					 net cost of borrowed funds used for construction purposes and a reasonable rate
					 upon the utility's own funds when so used. Interest during construction shall
					 be charged to the individual job upon which the funds are expended and shall be
					 credited to account 1536, Interest Charged to Construction--Credit. The period
					 for which interest may be capitalized shall be limited to the period of
					 construction. No interest shall be included in these accounts upon expenditures
					 for construction projects which have been abandoned.
(8) Taxes during construction includes taxes
					 on physical property (including land) during the period of construction and
					 other taxes properly includible in construction costs before the facilities
					 become available for service.
Note A:The cost of property includes the cost of
						preliminary surveys and studies and the cost of preparing plans and
						specifications at the time of construction for construction projects which are
						undertaken, and also the cost of keeping the construction accounts during the
						construction period, together with the cost of maps, books, files and other
						systems employed and permanently preserved in support of such construction
						costs.
Note A:The cost of property does not include the cost
						incurred subsequent to the construction period of preparing, installing or
						maintaining maps, inventories, accounting and other financial records of
						property for use in the operation of a constructed plant, the cost of the
						preparation of inventories, appraisals, or other studies, nor costs incurred in
						the establishment or revision of accounting routine.