ADMINISTRATIVE AND GENERAL EXPENSES Sec. 101.790BA 101.791BA 101.792B 101.792:1A 101.792:2A 101.793BA 101.794BA 101.795BA 101.796BA 101.797BA 101.798BA 101.799BA 101.800B 101.800:1A 101.800:2A 101.801BA 101.802B 101.802:1A 101.802:2A 101.802:3A 101.802:4A 101.803BA 101.804BA 101.805BA 101.806BA 101.807BA 101.808BA 101.809BA 101.901 101.902 101.903 101.904 101.905 CLEARING ACCOUNTS Charges by associated companies-clearing. Stores expenses-clearing. Laboratory expenses-clearing. AUTHORITY: §§ 101.00-1 to 101.905, inclusive, issued under secs. 3 (13), 4 (b), 301 (a), 304 (a), 309, 49 Stat. 839, 854, 855, 858; 16 U. S. C. 796 (13), 797 (b), 825 (a), 825c (a), 825h. SOURCE: §§ 101.00-1 to 101.905, inclusive, contained in Order 141, Federal Power Commission, Dec. 11, 1947, effective Jan. 1, 1948, 12 F.R. 8503. CODIFICATION: Prior to recodification of the chapter, § 101.15 (b) was revised, Apr. 15, 1947, effective July 1, 1947, 12 F.R. 2627. The text is identical with that set forth in the recodification. GENERAL PROVISIONS § 101.00-1 Prescribing a system of accounts for public utilities and licensees under the Federal Power Act. The Federal Power Commission acting pursuant to authority granted by the Federal Power Act, particularly sections 301 (a), 304 (a), and 309, and paragraph (13) of section 3, section 4 (b) thereof, and finding such action necessary and appropriate for carrying out the provisions of said act, hereby adopts the accompanying system of accounts entitled "Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act," and the rules and regulations contained therein; and It is hereby ordered: (a) That said system of accounts and said rules and regulations contained therein be and the same are hereby prescribed and promulgated as the system of accounts and rules and regulations of the Commission to be kept and observed by public utilities subject to the jurisdiction of the Commission and by licensees holding licenses issued by the Commission, to the extent and in the manner set forth therein; (b) That said system of accounts and rules and regulations therein contained shall, as to all public utilities now subject to the jurisdiction of the Commission and as to all present licensees, become effective on January 1, 1937, and as to public utilities and licensees which may hereafter become subject to the jurisdiction of the Commission, they shall become effective as of the date when such public utility becomes subject to the jurisdiction of the Commission or on the effective date of the license; (c) That a copy of said system of accounts and rules and regulation contained therein be forthwith served upon each public utility subject to the jurisdiction of the Commission, and each licensee or permittee holding a license or permit from the Commission. This system of accounts supersedes the system of accounts prescribed for licensees under the Federal Water Power Act; and Order No. 13, entered November 20, 1922, prescribing said system of accounts, was rescinded effective January 1, 1937. cember 31, 1936, amended, in certain minor details, the Uniform System of Accounts prescribed by Order No. 42. The amendments re incorporated in this Uniform System of Accounts. Order No. 43 also adopted and added to said Uniform System of Accounts Ap pendix III (Part 104) of this chapter, entitled "Application of Uniform System of Accounts to Class C and Class D Public Utilities and Licensees." Appendix III (Part 104) of this chapter, became effective January 1, 1938. Order No. 14,' entered by the Commission on June 15, 1923, prescribing a condensed classification of accounts for the use of licensees who do not furnish a public service, was also amended by changing the words (Class D Licensees) to (Class I Licensees). § 101.00-3 Authority under which accounting rules and regulations are prescribed. This uniform system of accounts for public utilities and licensees is issued and prescribed under the following provisions of the Federal Power Act (49 Stat. 838 ff.; 16 U. S. C. 791-825): SEC. 301. (a) Every licensee and public utility shali make, keep, and preserve for such periods, such accounts, records of cost-accounting procedures, correspondence, memoranda, papers, books, and other records as the Commission may by rules and regulations prescribe as necessary or appropriate for purposes of the administration of this act, including accounts, records, and memoranda of the generation, transmission, distribution, delivery, or sale of electric energy, the furnishing of services or facilities in connection therewith, and receipts and expenditures with respect to any of the foregoing: Provided, however, That nothing in this act shall relieve any public utility from keeping any accounts, memoranda, or records which such public utility may be required to keep by or under authority of the laws of any State. The Commission may prescribe a system of accounts to be kept by licensees and public utilities and may classify such licensees and public utilities and prescribe a system of accounts for each class. The Commission, after notice and opportunity for hearing, may determine by order the accounts in which particular outlays and receipts shall be entered, charged, or credited. The burden of proof to justify every accounting entry questioned by the Commission shall be on the person making, authorizing, or requiring such entry, and the Commission may suspend a charge or credit pending submission of satisfactory proof in support thereof. 1 Order No. 14 was rescinded as of May 1, 1938, by an order of the Commission, dated June 14, 1938. SEC. 304. (a) Every licensee and every public utility shall file with the Commission such annual and other periodic or special reports as the Commission may by rules and regulations or order prescribe as necessary or appropriate to assist the Commission in the proper administration of this act. The Commission may prescribe the manner and form in which such reports shall be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information às to assets and liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission otherwise specifies. SEC. 309. The Commission shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this act; and may prescribe the form or forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be filed. Unless a different date is specified therein, rules and regulations of the Commission shall be effective 30 days after publication in the manner which the Commission shall prescribe. Orders of the Commission shall be effective on the date and in the manner which the Commission shall prescribe. For the purposes of its rules and regulations, the Commission may classify persons and matters within its jurisdiction and prescribe different requirements for different classes of persons or matters. All rules and regulations of the Commission shall be filed with its secretary and shall be kept open in convenient form for public inspection and examination during reasonable business hours. SEC. 3. The words defined in this section shall have the following meanings for purposes of this act, to wit: (13) "Net investment" in a project means the actual legitimate original cost thereof as defined and interpreted in the "classification of investment in road and equipment of steam roads, issue of 1914, Interstate Commerce Commission", plus similar costs of additions thereto and betterments thereof, minus the sum of the following items properly allocated thereto, if and to the extent that such items have been accumulated during the period of the license from earnings in excess of a fair return on such investment: (a) Unappropriated surplus, (b) aggregate credit balances of current depreciation accounts, and (c) aggregate appropriations of surplus or income held in amortization, sinking fund, or similar reserves, or expended for additions or betterments or used for the purposes for which such reserves were created. The term "cost" shall include, insofar as applicable, the elements thereof prescribed in said classification, but shall not include expenditures from funds obtained through donations by States, municipalities, individuals, or others, and said classification of investment of the Interstate Commerce Commission shall insofar as applicable be published and promulgated as a part of the rules and regulations of the Commission; SEC. 4. The Commission is hereby authorized and empowered (b) To determine the actual legitimate original cost of and the net investment in a licensed project, and to aid the Commission in such determinations, each licensee shall, upon oath, within a reasonable period of time to be fixed by the Commission, after the construction of the original project or any addition thereto or betterment thereof, file with the Commission in such detail as the Commission may require, a statement in duplicate showing the actual legitimate original cost of construction of such project, addition, or betterment, and of the price paid for water rights, rights-of-way, lands, or interest in lands. The licensee shall grant to the Commission or to its duly authorized agent or agents, at all reasonable times, free access to such project, addition, or betterment, and to all maps, profiles, contracts, reports of engineers accounts, books, records and all other papers and documents relating thereto. The statement of actual legitimate original cost of said project and revisions thereof as determined by the Commission, shall be filed with the Secretary of the Treasury. § 101.01-1 Applicability of system of accounts. This system of accounts is applicable in principle to all licensees subject to the Commission's accounting requirements under the Federal Power Act, and to all public utilities subject to the provisions of the Federal Power Act. The Commission reserves the right, however, under the provisions of section 301 (a) of the Federal Power Act, to classify such licensees and public utilities and to prescribe a system or classification of accounts to be kept by and which will be convenient for and meet the requirements of each class. This system of accounts is applicable to public utilities, as herein defined, and to licensees engaged in the generation and sale of electric energy for ultimate distribution to the public. In § 102.01-1 of this chapter, there are shown the modifications and additions which are necessary to meet the conditions peculiar to Class A and Class B State and municipal licensees. In § 104.1 of this chapter, there is shown the condensed list of accounts to be kept by Class C and Class D public utilities and licensees, including State and municipal licensees. This system of accounts shall also apply to agencies of the United States engaged in the generation and sale of electric energy for ultimate distribution to the public, so far as may be practicable, in accordance with applicable statutes. In accordance with the requirements of section 3 of the act (49 Stat. 839; 16 U. S. C. 796 (13)), the "classification of investment in road and equipment of steam roads, issue of 1914, Interstate Commerce Commission", is published and promulgated as a part of the accounting rules and regulations of the Commission, and a copy thereof appears as § 103.01-1 of this chapter. Irrespective of any rules and regulations contained in this system of accounts, the cost of original projects licensed under the act, and also the cost of additions thereto and betterments thereof, shall be determined under the rules and principles as defined and interpreted in said classification of the Interstate Commerce Commission so far as applicable. CROSS REFERENCES: For application of uniform system of accounts to Class C and D public utilities and licensees, see Part 104 of this chapter. For statements and reports, see Part 141 of this chapter. For classification of utilities, see § 101.03-1. DEFINITIONS NOTE: In §§ 101.02 to 101.02-43, inclusive, the numbers to the right of the dash correspond with the respective definition numbers in Uniform system of accounts prescribed for public utilities and licensees, Federal Power Commission, effective Jan. 1, 1937, pp. 4-7. Cross references to accounts are made by citing the account number, e. g., account 100: 6, instead of the corresponding section number (§ 101.100: 6). § 101.02-1 Accounts. "Accounts" means the accounts prescribed in this system of accounts. § 101.02-2 Actually issued. "Actually issued", as applied to securities issued or assumed by the utility, means those which have been sold to bona-fide pur chasers for a valuable consideration (including those issued in exchange for other securities or other property); also securities issued as dividends on stock, and those which have been issued in accordance with contractual requirements direct to trustees of sinking funds. § 101.02-3 Actually outstanding. “Actually outstanding", as applied to securities issued or assumed by the utility, means those which have been actually issued and are neither retired nor held by or for the utility; Provided, however, That securities held by trustees shall be considered as actually outstanding. § 101.02-4 Amortization. "Amortization" means the gradual extinguishment of an amount in an account by prorating such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized. companies. § 101.02-5A Associated "Associated companies" means companies or persons that, directly or indirectly, through one or more intermediaries, control, or are controlled by, or are under common control with, the accounting company. § 101.02-5B Control. "Control" (including the terms "controlling", "controlled by", and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts, associated companies, contract, or any other direct or indirect means. § 101.02-6 Book cost. "Book cost" means the amount at which property is recorded in these accounts without deduction of related reserves or other accounts. As applied to electric plant, "book cost" means the amount at which property is included in account 100:6 or in accounts 100:1 to 100:4. § 101.02-7 Buildings. "Buildings." (See Electric plant instruction 10, § 101.3-10.) § 101.02-8 Commission. "Commisston" means the Federal Power Commission. § 101.02-9 ponents of. Construction cost, com"Construction cost, components of." (See Electric plant instruction 5, § 101.3-5.) § 101.02-10 Cost. "Cost" means the amount of money actually paid for property or services or the cash value at the time of the transaction of any consideration other than money. (See, however, Electric plant instruction 3, § 101.3-3.) § 101.02-11 Cost of removal. ("Cost of removal" means the cost of demolishing, dismantling, tearing down, or otherwise removing electric plant, including the cost of transportation and handling incidental thereto. § 101.02-12 Debt expense. "Debt expense" means all expenses in connection with the issuance and initial sale of evidences of debt, such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds and certificates of indebtedness; fees paid trustees; specific costs of obtaining governmental authority; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen for marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs. § 101.02-13 Depreciation. "Depreciation", as applied to depreciable electric plant, means the loss in service value not restored by current maintenance, incurred in connection with the consumption or prospective retirement of electric plant in the course of service from causes which are known to be in current operation and against which the utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand and requirements of public authorities. § 101.02-14 Discount. "Discount", as applied to the securities issued or assumed by the utility, means the excess of the par (stated value of no par stocks) or face value of the securities plus interest or dividends accrued at the date of the sale over the cash value of the consideration received from their sale. § 101.02-17 Improvements. "Improvements." (See Electric plant instruction 10, § 101.3-10.) § 101.02-18 Investment advances. "Investment advances" means advances, represented by notes or by book accounts only, with respect to which it is mutually agreed or intended. between the creditor and debtor that they shall be settled by the issuance of capital stock or long-term obligations, or shall not be subject to current settlement. § 101.02-19 Land and land rights. "Land and land rights." (See Electric plant instruction 9, § 101.3-9.) § 101.02-20 Licensee. "Licensee" means any person, State, or municipality licensed under the provisions of the Federal Power Act and subject to the Commission's accounting requirements under the terms of the license. § 101.02-21 Minor items of property. "Minor items of property" means the associated parts or items of which units of property are composed. § 101.02-22 Municipality. "Municipality" means a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power. § 101.02-23 Net book cost. "Net book cost", when applied to electric plant, means the book cost less related depreciation and amortization reserves. When applied to other property, it means book cost less related reserves for loss in value. § 101.02-24 Net original cost, "Net original cost", as applied to electric plant, means the original cost less related depreciation and amortization reserves. § 101.02-25 Net salvage value. "Net salvage value" means the salvage value of property retired less the cost of removal. § 101.02-26 Nominally issued. "Nominally issued", as applied to securities issued or assumed by the utility, means those which have been signed, certified, or otherwise executed, and placed with the proper officer for sale and delivery, or pledged, or otherwise placed in some special fund of the utility, but which have not been sold or issued direct to trustees of sinking funds in accordance with contractual requirements. § 101.02-27 Nominally outstanding. "Nominally outstanding", as applied to securities issued or assumed by the utility, means those which, after being actually issued, have been reacquired by or for the utility under circumstances which require them to be considered as held alive and not retired, provided, however, that securities held by trustees shall be considered as actually outstanding. § 101.02-28 Nonproject property. "Nonproject property" means the electric plant of a licensee which is not a part of the project property subject to a license issued by the Commission. "Original § 101.02-29 Original cost. cost", as applied to electric plant, means the cost of such property to the person first devoting it to public service. § 101.02-30 Person. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, or any organized group of persons, whether incorporated or not, or any receiver or trustee. § 101.02-31 Premium. "Premium", as applied to the securities issued or assumed by the utility, means the excess of the cash value of the consideration received from their sale over the sum of their par (stated value of no par stocks) or face value and interest or dividends accrued at the date of sale. § 101.02-32 Project. "Project" means complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or forebay reservoirs directly connected therewith, the primary line or lines transmitting power therefrom to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights of way, ditches, dams, reservoirs, lands, or interest in lands the Page 2977 |