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 197.33 - Transactions with the municipality

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In order that the books of the municipal
					 electric utility may show accurately the results of electric operations, each
					 municipal electric utility shall credit the appropriate account with the cost
					 of property, services, materials, supplies, use of space or equipment, etc.,
					 furnished to the operating municipality or any department thereof. (See also
					 account 280, Contributions--Operating Municipality, and §§
											197.24,
					 subd. [f], 197.26, subd. [c].)
(b)
					 Similarly, the accounts for electric operations shall include the cost of all
					 items applicable thereto, including expenses of the municipal electric utility
					 paid out of funds of the operating or lessor municipality, and services,
					 materials, water supply, supplies, use of space or equipment, paving,
					 inspection service, etc., furnished by the operating or lessor municipality or
					 any department thereof. (See also account 280, Contributions--Operating
					 Municipality.)
(c) The offsetting
					 credit or debit for the transactions covered in subdivisions (a) and (b) hereof
					 shall be to account 280, Contributions-- Operating Municipality, which may show
					 either a credit or a debit balance.
(d) These provisions are intended to make
					 possible an accurate determination of the results of operations of the
					 municipal electric utility by the inclusion in the operating accounts of all
					 applicable items whether or not they are represented by actual payments. Thus,
					 if an office of a municipal electric utility is located in a general municipal
					 building and if no rent is paid to the operating municipality for such space,
					 the appropriate account for such rent shall be debited with an equitable amount
					 and the offsetting credit shall be to account 280, Contributions--Operating
					 Municipality. If a general municipal officer or employee collects accounts
					 receivable for electricity and the municipal electric utility does not pay from
					 its funds any part of his salary and expenses, an equitable portion of his pay
					 and expenses shall be charged to the appropriate electric operating expense
					 account and the offsetting credit shall be to account 280,
					 Contributions--Operating Municipality. In like manner, if the municipal
					 electric utility furnishes any service such as street lighting, power for
					 pumping water, etc., for which no payment is received from the operating
					 municipality, the cost to the plant of such service shall be accounted for as
					 provided in subdivision (a) hereof and sections
					 197.24
					 and
					 197.26,
					 and charged to account 280, Contributions-- Operating Municipality. If payments
					 for items enumerated in subdivisions (a) and (b) consist of a nominal amount,
					 the difference between the cost of the service rendered and the amount paid
					 therefor by the municipality shall be accounted for in like manner.
(e) As of the effective date of this system
					 of accounts, there shall be determined through an analysis of all transactions
					 from the date of the first expenditure for the municipal electric utility, the
					 amount representing the net balance which would result if the transactions
					 covered in this instruction and in account 280, Contributions--Operating
					 Municipality, had been treated as provided herein. This net balance shall be
					 placed on the books as a credit or a debit (as the case may be) to account 280,
					 Contributions--Operating Municipality, and a copy of the journal entries
					 showing detail and source of the information shall be filed with the commission
					 not later than one year after the effective date of this system of
					 accounts.