Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 59 - GAS SERVICE › ACCOUNTS AND RECORDS › Section 59.46 - Reclassification of gas plant accounts

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A utility whose annual operating revenues
					 are $25,000 or more but less than $100,000 may not be required to reclassify
					 the cost of plant installed prior to January 1, 1961, to an original cost basis
					 until the time as its annual operating revenues reach $100,000 or
					 more.
(b) When the annual operating
					 revenues of a public utility become $100,000 or more, the utility shall be
					 subject to Class C accounting requirements. The public utility shall within 2
					 years submit the following detailed statements relative to its plant account
					 reclassification at original cost. The statements shall be sworn to or affirmed
					 by the officer of the company responsible for their preparation, as follows:
(1)
Statement A.
Statement A
					 shall show in outline form the origin and development of the utility, including
					 a description of each consolidation and merger to which the utility or a
					 predecessor was a party, and each acquisition of a gas operating unit or system
					 by the utility or a predecessor. If any transaction relating to such property
					 involved utility property other than the gas plant, that fact shall be
					 stated.
(2)
Statement
					 B.
Statement B shall show the chartered gas territory of the utility,
					 giving the development of that territory according to each consolidation and
					 merger or gas plant acquisition to which the utility or a predecessor was a
					 party.
(3)
Statement
					 C.
Statement C shall show a summary of gross debits and credits to
					 Accounts 101, 102, 103, 104, 105, 106, 107 and 114, gas plant, from the date of
					 origin of the gas plant of the utility to the effective date of such system of
					 accounts as prescribed by §
												59.42 (relating to systems of
					 accounts), setting forth all of the following:
(i) Plant acquired by merger and
					 consolidation.
(ii) Plant
					 constructed by the utility.
(iii)
					 Plant acquired by purchase.
(iv)
					 Total.
(v) Retirements of plant
					 which cannot be classified by the specific divisions of subparagraphs
					 (i)-(iii).
(vi) Balance at
					 effective date of the system of accounts.
(4)
Statement D.
Statement D
					 shall show a summary analysis of the accumulated provisions for the
					 depreciation, amortization and depletion of the gas plant, as established by
					 the utility and its predecessors, from the date of origin of the gas plant of
					 the utility to the effective date of the system of accounts as prescribed by
					 §
												59.42, showing all of the
					 following:
(i) Credits arising from charges
					 to operating expenses.
(ii) Salvage
					 and other credits detailed by nature of transaction.
(iii) Gross debits for plant
					 retired.
(iv) Cost of removal, and
					 other debits detailed by nature of transaction.
(v) Balance at effective date of the system
					 of accounts.
(5)
Statement E.
Statement E shall show contributions received by
					 the utility and its predecessors, from customers or others, in the aid of
					 construction of a gas plant, setting forth all of the following:
(i) The gross amount of contributions
					 received from the date of origin of gas service to the effective date of such
					 system of accounts as prescribed by §
													59.42.
(ii) The amount of the contributions returned
					 or retired as of the effective date of the system of accounts.
(iii) The difference between subparagraphs
					 (i) and (ii).
(iv) The amount
					 reflected in Account 271, "Contributions in aid of construction," at the
					 effective date of the system of accounts.
(v) A reconciliation of the difference
					 between subparagraphs (iii) and (iv).
(6)
Statement F.
Statement F
					 shall conform with all of the following:
(i)
					 Statement F shall show, for each acquisition through consolidation and merger
					 or purchase of a gas operating unit or system by the utility or a predecessor,
					 all of the following:
(A) A description of the
					 property acquired.
(B) The names of
					 parties to the transaction and whether the parties were affiliated.
(C) The date the transaction was
					 consummated.
(D) The original cost,
					 estimated if not known.
(E) The
					 value of the plant, as reflected on books of merger constituent or
					 vendor.
(F) The cost of the plant
					 to the acquirer, and the manner and method of determination of such
					 cost.
(G) The amount recorded on
					 the books of the acquirer with respect to the plant acquired.
(H) The amount accumulated provisions for
					 depreciation applicable to the plant acquired, as reflected on books of merger
					 constituent or vendor.
(I) An
					 adjustment of amortization or depletion of the acquirer in respect to the plant
					 acquired and the basis thereof.
(J)
					 A summary of the appraisal, if any, prepared for the plant acquired at the date
					 of acquisition, showing the elements of value included therein, by whom
					 prepared, and the date. With respect to each acquisition, there shall be shown
					 the difference between original cost and the amount recorded on the books; a
					 summary of all transactions affecting the difference between the date of
					 acquisition and the effective date of such system of accounts prescribed by
					 § 59.42; and the resultant amount on the latter date. The amount to be
					 included in Account 114, "Gas plant acquisition adjustments," shall be
					 subdivided to show the amounts applicable to plant in service, plant leased to
					 others, and plant held for future use. If practicable, the amount shall be
					 classified according to its nature, that is, structural value, going value, and
					 the like.
(ii) If
					 estimates are used in arriving at original cost or the amount to be included in
					 Account 114 of the uniform system of accounts prescribed by § 59.42, a
					 full disclosure of the method or methods used in preparing the estimates, with
					 the underlying facts, shall be given. The method or methods of determining the
					 original cost of the gas plant acquired as operating units or systems shall be
					 described in sufficient particularity to permit a clear understanding of the
					 investigations which were made for that purpose. The amount claimed as the
					 original cost of acquired property shall be supported by separate statements
					 for each acquisition by the respondent and by each successive predecessor
					 (prepared from the books and records of each predecessor company) showing a
					 summary of gross debits and credits to the gas plant, classified by balance
					 sheet subaccounts, from the date of origin of the gas plant of the predecessor
					 to the date of dissolution or the effective date of sale or other transfer of
					 the gas plant, setting forth all of the following:
(A) Plant acquired by merger and
					 consolidation.
(B) Plant
					 constructed by such predecessor.
(C) Plant acquired by purchase.
(D) Total.
(E) Retirements of plant which cannot be
					 classified by the specific divisions in subparagraphs (i)-(iii).
(F) Balance at date of dissolution or
					 effective date of sale or other transfer of the gas plant.
(iii) There shall also be shown a summary
					 analysis of the related accumulated provisions for depreciation, amortization,
					 and depletion of the gas plant as established by each predecessor, setting
					 forth all of the following:
(A) Credits
					 arising from charges to operating expenses.
(B) Salvage and other credits detailed by
					 nature of transaction.
(C) Gross
					 debits for plant retired.
(D) Costs
					 of removal, and other debits detailed by nature of transaction.
(9)
Statement
					 G.
Statement G shall show the amounts arrived at by appraisals
					 recorded prior to the effective date of the system of accounts prescribed by
					 §
												59.42 in lieu of cost to the
					 reporting company. This statement should give the full journal entry at the
					 time the appraisal was originally recorded, and if the entry had the effect of
					 appreciating or writing up the gas plant account, the amount of the
					 appreciation or write up should be traced, by proper description and
					 explanation of the changes from the date recorded to the effective date of such
					 system of accounts.
(10)
Statement H.
Statement H shall show gas plant per books
					 immediately prior to reclassification in accordance with the system of accounts
					 prescribed by §
												59.42 including, under a
					 descriptive heading, an unclassified amounts applicable jointly to the gas
					 department and other departments of the utility.
(11)
Statement I.
Statement
					 I shall show a summary of adjustments necessary to record, as of the effective
					 date of the system of accounts prescribed by § 59.42, Accounts 101, 102,
					 103, 104, 105, 106, 107 and 114, gas plant, and Account 116, "Other Gas Plant
					 Adjustments."
(12)
Statement J.
Statement J shall show gas plant balance sheet
					 Accounts 101, 102, 103, 104, 105, 106, 107 and 114 as of the effective date of
					 the system of accounts prescribed by §
												59.42 classified according to
					 detailed accounts, and showing also the amount includible in Account 116,
					 "Other Gas Plant Adjustments."
(13)
Statement K.
Statement K shall show a comparative balance
					 sheet, as of the effective date of the system of accounts prescribed by §
												59.42 setting forth the accounts
					 and amounts appearing in the books before the adjusting entries have been made
					 and after the entries have been made.
(14)
Statement L.
Statement
					 L shall show a suggested plan for depreciating, amortizing, or otherwise
					 disposing in whole or in part of the amounts, as of the effective date of such
					 system of accounts prescribed by §
												59.42 includible in Account 114,
					 "Gas Plant Acquisition Adjustments," and Account 116, "Other Gas Plant
					 Adjustments."