New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter V - WATERWORKS CORPORATIONS › Subchapter E - Uniform Systems Of Accounts › Article 1 - Classes A and B › Part 563 - Instructions-water Plant Accounts › Section 563.2 - Water plant to be recorded at original cost

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All amounts included in the accounts for
					 water plant acquired as an operating unit or system, except as otherwise
					 provided in the texts of the intangible plant accounts, shall be stated at the
					 cost incurred by the person who first devoted the property to utility service.
					 All other water plant shall be included in the accounts at the cost incurred by
					 the utility. Where the term "cost" is used in the detailed plant accounts, it
					 shall have the meaning stated in this subdivision. (See also §
											560.1,
					 definition [19].)
(b) When the
					 consideration given for property is other than cash, the value of such
					 consideration shall be determined on a cash basis. (See, however, §
											560.1,
					 definition [9].) In the entry recording such transaction, the actual
					 consideration shall be described with sufficient particularity to identify it.
					 The utility shall be prepared to furnish the commission the particulars of its
					 determination of the cash value of the consideration if other than
					 cash.
(c) When property is
					 purchased under a plan involving deferred payments, no charge shall be made to
					 the water plant accounts for interest, insurance, or other expenditures
					 occasioned solely by such form of payment.
(d) Contributions for construction purposes
					 made in cash, services or property by any governmental agency, individuals or
					 others shall be credited to the plant account chargeable with the cost of
					 construction. In the case of water plant contributed to the utility, water
					 plant accounts shall be charged only with such expenses, if any, incurred by
					 the utility for which it was not reimbursed, to obtain title, possession or
					 ownership of said plant. Records shall be kept so that the utility can readily
					 furnish information as to the source, purpose, and amount of each contribution,
					 the property to which each contribution relates and the conditions, if any,
					 upon which each contribution was made.
(e) As of the effective date of this uniform
					 system of accounts, the account "Contributions in Aid of Construction" is
					 discontinued. Amounts for contributions in aid of construction still remaining
					 in such account at the effective date of the uniform system of accounts
					 prescribed herein shall be transferred temporarily to an appropriate
					 subdivision of account 253, Other Deferred Credits. The amounts which can be
					 identified with property in water plant accounts and with property which has
					 been retired shall be charged to account 253 and concurrently credited to the
					 water plant accounts or to the accumulated provisions for depreciation, as
					 appropriate. With respect to the remaining amounts of contributions, which
					 cannot be identified or associated with specific water plant property, the
					 utility shall submit a proposal for an account disposition of such remaining
					 balance to the commission for its consideration and determination. Except as
					 provided herein, such amounts representing contributions in aid of construction
					 shall not be transferred to any other account without the approval of the
					 commission.
Amounts received for construction which are ultimately
						  to be refunded, wholly or in part, shall be credited to account 252, Customers'
						  Advances for Construction. When the amount to be refunded has been finally
						  determined, the balance, if any, remaining in account 252 shall be debited
						  thereto and credited to the water plant accounts to which the cost of the
						  property was charged.