N.Y. Comp. Codes R. & Regs. tit. 16 § 182.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 182.2 - Additions and retirements of electric plant

(a) For the purpose of avoiding undue refinement in accounting for additions to and retirements and replacements of electric plant, all property shall be considered as consisting of (1) units of property or retirement units and (2) minor items. Units of property means those items of electric plant which are sufficiently distinct or important so that when they are retired with or without being replaced by other units of the same type or use, they are accounted for by crediting the amount at which they are carried on the books to the electric plant account in which included. All other items are to be considered as minor items. These retirement units should not be confused with continuing property record units filed by Class C utilities; the latter are units for which the cost will be shown separately in the continuing property records. Whenever units of property are mentioned in this system of accounts, the term refers to retirement units and not to continuing property record units. Each utility may adopt its own list of units of property for the purpose of this instruction until such time as the commission shall prescribe a list of units.

(b) Units of property.

(1) When a unit of property is added to electric plant, the cost thereof shall be added to the appropriate electric plant account.

(2) When a unit of property is retired from electric plant (i.e., is removed, sold, abandoned, destroyed or otherwise ceases to be used or useful in electric service), whether or not replaced by another unit of the same type or use, the amount at which it is carried on the books shall be credited to the electric plant account in which it is included (determined in the manner set forth in subdivision [d] of this section) and charged to the depreciation reserve provided for such property.

(c) Minor items of property.

(1) When a minor item of property which does not replace a similar item is added to electric plant, the cost thereof shall be charged to the appropriate maintenance account and no entry shall be made in the electric plant or depreciation reserve accounts.

(2) When a minor item is retired and replaced independently of the unit of property of which it is a part, the cost of replacement shall be charged to the appropriate maintenance account and no entry shall be made in the electric plant or depreciation reserve accounts. The removal and replacement of poles shall be handled as additions and retirements of property and not as maintenance.

(3) When a minor item the book cost of which does not exceed $50 is retired and not replaced, if the book cost of such minor item is included with or spread over one or more units of property so that it will be accounted for through the retirement of such one or more units of property, no separate credit to the electric plant account shall be made; otherwise, however, the book cost of such minor item shall be credited to the appropriate electric plant account and charged to account 1250, Reserve for Depreciation of Utility Plant.

Note A:For example, if a pole is a unit and the cost of attachments, such as crossarms, guys, etc., is spread on an average basis over all the poles or is included as a part of the cost of the pole to which they are attached, no separate credit to the plant account shall be made when such an attachment (the book cost of which is less than $50) is retired, even though not replaced. Any labor in connection with the removal shall be charged to the appropriate maintenance account, and any salvage for material recovered shall be credited to the appropriate maintenance account.

(d) Determination of amount to be credited to plant accounts. Electric plant retired shall be credited to the plant accounts at the amount at which such property is included therein, including all components of construction costs, such as engineering, supervision, interest and taxes during construction, etc. The amount shall be determined from the utility's records and if this can not be done, it shall be estimated. When it is impracticable to determine the amount carried on the books for each item, due to the relatively large number or small cost thereof, the average of such items, with due allowances for any differences in size, character and year of installation (if known) shall be used.

(e) Land retired. When land is retired the amount at which it is carried on the books shall be credited to the appropriate land account. If the land is sold, the difference between the amount at which it is carried on the books and the sale price of the land (less commissions and other expenses of making the sale) shall be credited or debited to account 1250, Reserve for Depreciation of Utility Plant.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 182.2