18 Cfr 201

SUBCHAPTER F—ACCOUNTS, NATURAL GAS ACT
PART 201—UNIFORM SYSTEM OF
ACCOUNTS PRESCRIBED FOR
NATURAL GAS COMPANIES SUBJECT TO THE PROVISIONS OF THE
NATURAL GAS ACT
AUTHORITY: 15 U.S.C. 717–717w, 3301–3432; 42
U.S.C. 7101–7352, 7651–7651o.
SOURCE: Order 219, 25 FR 5616, June 21, 1960,
unless otherwise noted.
EDITORIAL NOTE: For FEDERAL REGISTER citations affecting part 201, see the List of
CFR Sections Affected, which appears in the
Finding Aids section of the printed volume
and at www.fdsys.gov.

lpowell on DSK54DXVN1OFR with $$_JOB

EFFECTIVE DATE NOTE: At 58 FR 18006,
April 7, 1993, part 201 was amended by redesignating definitions 31 through 39 as 32
through 40 and adding a new definition 31;
Accounts 182.3 and 254 were added under Balance Sheet Accounts; and Accounts 407.3 and
407.4 were added under Income Accounts. The
added text contains information collection
and recordkeeping requirements and will not
become effective until approval has been
given by the Office of Management and
Budget.
NOTE: Order 141, 12 FR 8504, Dec. 19, 1947,
provides in part as follows:
Prescribing a system of accounts for natural
gas companies under the Natural Gas Act. The
Federal Power Commission acting pursuant
to authority granted by the Natural Gas Act
(58) Stat. 821, as amended; 15 U.S.C. and Sup.
717 et seq.), particularly sections 8(a), 10(a)
and 16 thereof, and finding such action necessary and appropriate for carrying out the
provisions of said Act, ordered that:
(a) The accompanying system of accounts,
entitled ‘‘Uniform System of Accounts Prescribed for Natural Gas Companies Subject
to the Provisions of the Natural Gas Act,’’
and the rules and regulations contained
therein, be adopted;
(b) 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 natural gas companies subject to
the jurisdiction of the Commission, to the
extent and in the manner set forth therein;
(c) Said system of accounts and rules and
regulations therein contained as to all natural gas companies now subject to the jurisdiction of the Commission, became effective
on January 1, 1940, and as to any natural gas
company which may hereafter become subject to the jurisdiction of the Commission,

they shall become effective as of the date
when such natural gas company becomes
subject to the jurisdiction of the Commission.

Uniform System of Accounts Prescribed for
Natural Gas Companies Subject to the
Provisions of the Natural Gas Act
Definitions
When used in this system of accounts:
1. Accounts means the accounts prescribed in this system of accounts.
2. Actually issued, as applied to securities issued or assumed by the utility,
means those which have been sold to
bona fide purchasers for a valuable consideration, those issued as dividends on
stock, and those which have been
issued in accordance with contractual
requirements direct to trustees of sinking funds.
3. 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.
4. Amortization means the gradual extinguishment of an amount in an account by distributing 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.
5. A. Associated (affiliated) 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.
B. 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

640

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00650

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts,
associated companies, contract or any
other direct or indirect means.
6. Book cost means the amount at
which property is recorded in these accounts without deduction of related
provisions for accrued depreciation, depletion, amortization, or for other purposes.
7. Commission, means the Federal Energy Regulatory Commission.
8. Continuing plant inventory record
means company plant records for retirement units and mass property that
provide, as either a single record, or in
separate records readily obtainable by
references made in a single record, the
following information:
A. For each retirement unit;
(1) The name or description of the
unit, or both;
(2) The location of the unit;
(3) The date the unit was placed in
service;
(4) The cost of the unit as set forth in
Plant Instructions 2 and 3 of this part;
and
(5) The plant control account to
which the cost of the units is charged;
and
B. For each category of mass property;
(1) A general description of the property and quantity;
(2) The quantity placed in service by
vintage year;
(3) The average cost as set forth in
Plant Instructions 2 and 3 of this part;
and
(4) The plant control account to
which the costs are charged.
9. Cost means the amount of money
actually paid for property or services.
When the consideration given is other
than cash in a purchase and sale transaction, as distinguished from a transaction involving the issuance of common stock in a merger or a pooling of
interest, the value of such consideration shall be determined on a cash
basis.
10. Cost of removal means the cost of
demolishing,
dismantling,
tearing
down or otherwise removing gas plant,
including the cost of transportation
and handling incidental thereto. It
does not include the cost of removal

Pt. 201
activities associated with asset retirement obligations that are capitalized
as part of the tangible long-lived assets
that give rise to the obligation. (See
General Instruction 24).
11. 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.
12. A. Depletion, as applied to natural
gas producing land and land rights,
means the loss in service value incurred in connection with the exhaustion of the natural resource in the
course of service.
B. Depreciation, as applied to depreciable gas plant, means the loss in
service value not restored by current
maintenance, incurred in connection
with the consumption or prospective
retirement of gas 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, and, in the
case of natural gas companies, the exhaustion of natural resources.
13. Development costs, when used with
respect to hydrocarbons, include all
costs incurred in the readying of hydrocarbon deposits for commercial production including developmental well
drilling costs.
14. 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 fact 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.

641

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00651

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

15. Exploration costs, include all costs
incurred in proving the existence of hydrocarbon deposits including geological, geophysical, lease acquisition (including delay rentals), administrative
and general, and exploratory well drilling costs.
16. Full-cost accounting for exploration
and development costs, means the capitalization of all exploration and development costs incurred on or related to
hydrocarbon leases, on properties in
the contiguous 48 States and the State
of Alaska, acquired after October 7,
1969.
17. 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
securities or shall not be subject to
current settlement.
18. Lease, capital means a lease of
property used in utility or non-utility
operations, which meets one or more of
the criteria stated in General Instruction 19.
19. Lease, operating means a lease of
property used in utility or non-utility
operations, which does not meet any of
the criteria stated in General Instruction 19.
20. Minor items of property means the
associated parts or items of which retirement units are composed.
21. Natural gas means either natural
gas unmixed, or any mixture of natural
and artificial gas.
22. Natural gas company means a person engaged in the transportation of
natural gas in interstate commerce, or
the sale in interstate commerce of such
gas for resale.
23. Net salvage value means the salvage value of property retired less the
cost of removal.
24. 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.

25. 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.
26. Original cost, as applied to gas
plant, means the cost of such property
to the person first devoting it to public
service.
27. 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.
28. Premium, as applied to 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.
29. Production, transmission, and distribution plant. For the purposes of this
system of accounts:
A. Production system shall consist of
plant and equipment used in the production of gas. It shall include producing lands and leaseholds, gas rights,
other land rights, structures, drilling
and clearing equipment, gas wells, well
head equipment, separation and other
facilities used in the production of natural gas. The production system ends
where the gas enters a gathering system, transmission system or distribution system, as applicable, in accordance with the practices in the pricing
area where such system is located.
B. Transmission system means the
land, structures, mains, valves, meters,
boosters, regulators, tanks, compressors, and their driving units and appurtenances, and other equipment used
primarily for transmitting gas from a
production plant, delivery point of purchased gas, gathering system, storage
area, or other wholesale source of gas,
to one or more distribution areas. The
transmission system begins at the outlet side of the valve at the connection
to the last equipment in a manufactured gas plant, the connection to

642

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00652

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
gathering lines or delivery point of
purchased gas, and includes the equipment at such connection that is used
to bring the gas to transmission pressure, and ends at the outlet side of the
equipment which meters or regulates
the entry of gas into the distribution
system or into a storage area. It does
not include storage land, structures or
equipment. Pipeline companies, including those companies which measure deliveries of gas to their own distribution
systems, shall include city gate and
main line industrial measuring and
regulating stations in the transmission
function.
C. Distribution system means the
mains which are provided primarily for
distributing gas within a distribution
area, together with land, structures,
valves, regulators, services and measuring devices, including the mains for
transportation of gas from production
plants or points of receipt located
within such distribution area to other
points therein. The distribution system
owned by companies having no transmission facilities connected to such
distribution system begins at the inlet
side of the distribution system equipment which meters or regulates the
entry of gas into the distribution system and ends with and includes property on the customer’s premises. For
companies which own both transmission and distribution facilities on a
continuous line, the distribution system begins at the outlet side of the
equipment which meters or regulates
the entry of gas into the distribution
system and ends with and includes
property on the customer’s premises.
The distribution system does not include storage land, structures, or
equipment.
D. Distribution area means a metropolitan area or other urban area comprising one or more adjacent or nearby
cities, villages or unincorporated
areas, including developed areas contiguous to main highways.
30. Property retired, as applied to gas
plant, means property which has been
removed, sold, abandoned, destroyed,
or which for any cause has been withdrawn from service.
31. Regulatory Assets and Liabilities are
assets and liabilities that result from
rate actions of regulatory agencies.

Pt. 201
Regulatory assets and liabilities arise
from specific revenues, expenses, gains,
or losses that would have been included
in net income determinations in one
period under the general requirements
of the Uniform System of Accounts but
for it being probable: 1) that such items
will be included in a different period(s)
for purposes of developing the rates the
utility is authorized to charge for its
utility services; or 2) in the case of regulatory liabilities, that refunds to customers, not provided for in other accounts, will be required.
32. A. Replacing or replacement, when
not otherwise indicated in the context,
means the construction or installation
of gas plant in place of property retired, together with the removal of the
property retired.
B. Research, Development, and Demonstration (RD&D), means expenditures
incurred by natural gas companies either directly or through another person or organization (such as research
institute, industry association, foundation, university, engineering company,
or similar contractor) in pursuing research, development, and demonstration activities including experiment,
design, installation, construction, or
operation. This definition includes expenditures for the implementation or
development of new and/or existing
concepts until technically feasible and
commercially feasible operations are
verified. Such research, development,
and demonstration costs should be reasonably related to the existing or future utility business, broadly defined,
of the public utility or licensee or in
the environment in which it operates
or expects to operate. The term includes, but is not limited to: All such
costs incidental to the design, development or implementation of an experimental facility, a plant process, a product, a formula, an invention, a system
or similar items, and the improvement
of already existing items of a like nature; amounts expended in connection
with the proposed development and/or
proposed delivery of substitute or synthetic gas supplies (alternate fuel
sources for example, an experimental
coal gasification plant or an experimental plant synthetically producing
gas from liquid hydrocarbons); and the
costs of obtaining its own patent, such

643

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00653

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

as attorney’s fees expended in making
and perfecting a patent application.
The term includes preliminary investigations and detailed planning of specific projects for securing for customers non-conventional pipeline gas
supplies that rely on technology that
has not been verified previously to be
feasible. The term does not include expenditures for efficiency surveys; studies of management, management techniques and organization; consumer surveys, advertising, promotions, or items
of a like nature.
33. Retained earnings (formerly earned
surplus) means the accumulated net income of the utility less distribution to
stockholders and transfers to other
capital accounts.
34. Retirement units means those
items of gas plant which, when retired,
with or without replacement, are accounted for by crediting the book cost
thereof to the gas plant account in
which included.
35. Salvage value means the amount
received for property retired, less any
expenses incurred in connection with
the sale or in preparing the property
for sale; or, if retained, the amount at
which the material recoverable is
chargeable to Materials and Supplies,
or other appropriate account.
36. Service life means the time between the date gas plant is includible
in gas plant in service, or gas plant
leased to others, and the date of its retirement. If depreciation is accounted
for on a production basis rather than
on a time basis, then service life should
be measured in terms of the appropriate unit of production.
37. Service value means the difference
between original cost and net salvage
value of gas plant.
38. Unsuccessful exploration and development costs, means exploration and development costs related to efforts
which do not directly result in the discovery of commercially recoverable hydrocarbon reserves.
39. Subsidiary company, means a company which is controlled by the utility
through ownership of voting stock.
(See ‘‘Definitions’’—item 5B ‘‘Control’’). A corporate joint venture in
which a corporation is owned by a
small group of businesses as a separate
and specific business or project for the

mutual benefit of the members of the
group is a subsidiary company for the
purposes of this system of accounts.
40. Utility, as used herein and when
not otherwise indicated in the context,
means any natural gas company to
which this system of accounts is applicable.
General Instructions
1. Applicability. Each natural gas
company must apply the system of accounts prescribed by the Commission.
Major —Each natural gas company as
defined in the Natural Gas Act, whose
combined gas sold for resale and gas
transported or stored for a fee exceeds
50 million Mcf at 14.73 psi (60 °F) in
each of the three previous calendar
years.
Nonmajor—Natural gas companies
that are not classified as a ‘‘major
company’’ (as defined above), and had
total gas sales or volume transactions
exceeding 200,000 Mcf at 14.73 psi (60 °F)
in each of the three previous calendar
years.
B. This system applies to both Major
and Nonmajor natural gas companies.
Provisions have been incorporated into
this system for those entities which
prior to January 1, 1984, were applying
the Commission’s Uniform System of
Accounts Prescribed for Class C and
Class D (part 104 of this chapter) now
revoked. The notations ‘‘(Nonmajor)’’
and ‘‘(Major)’’ have been used to indicate those instructions and accounts
from the previous systems and classifications, which by definition, are not
interchangeable without causing a loss
of detail for the Major (previous Class
A and Class B) or an increase in detail
burden for the Nonmajor (previous Class
C and Class D).
C. The class to which any natural gas
company belongs shall originally be determined by its annual gas volume in
each of the last three consecutive
years, or, in the case of a newly established entity, the projected data shall
be the basis. Subsequent changes in
classification shall be made when the
volume for each of the three immediately preceding years exceeds the
upper limit, or is less than the lower
limit of the classification previously
applicable to the natural gas company.

644

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00654

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

lpowell on DSK54DXVN1OFR with $$_JOB

D. Any utility may, at its option,
adopt the system of accounts prescribed by the Commission for any
larger class of utilities.
2. Records. A. Each utility shall keep
its books of account, and all other
books, records, and memoranda which
support the entries in such books of account so as to be able to furnish readily full information as to any item included in any account. Each entry
shall be supported by such detailed information as will permit ready identification, analysis, and verification of
all facts relevant thereto.
B. The books and records referred to
herein include not only accounting
records in a limited technical sense,
but all other records, such as minute
books, stock books, reports, correspondence, memoranda, etc., which
may be useful in developing the history
of or facts regarding any transaction.
C. No utility shall destroy any such
books or records unless the destruction
thereof is permitted by rules and regulations of the Commission.
D. In addition to prescribed accounts,
clearing accounts, temporary or experimental accounts, and subdivisions of
any accounts, may be kept, provided
the integrity of the prescribed accounts is not impaired.
E. All amounts included in the accounts prescribed herein for gas plant
and operating expenses shall be just
and reasonable and any payments or
accruals by the utility in excess of just
and reasonable charges shall be included in account 426.5, Other Deductions.
F. The arrangement or sequence of
the accounts prescribed herein shall
not be controlling as to the arrangement or sequence in report forms
which may be prescribed by the Commission.
3. Numbering system. A. The account
numbering plan used herein consists of
a system of three-digit whole numbers
as follows:
100–199 Assets and Other Debits.
200–299 Liabilities and Other Credits.
300–399 Plant Accounts.
400–432, 434–435 Income Accounts.
433, 436–439 Retained Earnings Accounts.
480–499 Revenue Accounts.
700–899 Production, Transmission and Distribution Expenses.

Pt. 201
900–949 Customer Accounts, Customer Service and Informational, Sales and General
and Administrative Expenses.

B. In certain instances, numbers have
been skipped in order to allow for possible later expansion or to permit better coordination with the numbering
system for other utility departments.
C. The numbers prefixed to account
titles are to be considered as part of
the titles. Each utility, however, may
adopt for its own purposes a different
system of account numbers (See also
general instruction 2D) provided that
the numbers herein prescribed shall appear in the descriptive headings of the
ledger accounts and in the various
sources of original entry; however, if a
utility uses a different group of account numbers and it is not practicable
to show the prescribed account numbers in the various sources of original
entry, such reference to the prescribed
account numbers may be omitted from
the various sources of original entry.
Moreover, each utility using different
account numbers for its own purposes
shall keep readily available a list of
such account numbers which it uses
and a reconciliation of such account
numbers with the account numbers
provided herein. It is intended that the
utility’s records shall be so kept as to
permit ready analysis by prescribed accounts (by direct reference to sources
of original entry to the extent practicable) and to permit preparation of
financial and operating statements directly from such records at the end of
each accounting period according to
the prescribed accounts.
4. Accounting period. Each utility
shall keep its books on a monthly basis
so that for each month all transactions
applicable thereto, as nearly as may be
ascertained, shall be entered in the
books of the utility. Amounts applicable or assignable to specific utility departments shall be so segregated
monthly. Each utility shall close its
books at the end of each calendar year
unless otherwise authorized by the
Commission.
5. Submittal of questions. To maintain
uniformity of accounting, utilities
shall submit questions of doubtful interpretation to the Commission for
consideration and decision.

645

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00655

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

6. Item lists. Lists of ‘‘items’’ appearing in the texts of the accounts or elsewhere herein are for the purpose of
more clearly indicating the application
of the prescribed accounting. The lists
are intended to be representative, but
not exhaustive. The appearance of an
item in a list warrants the inclusion of
the item in the account mentioned
only when the text of the account also
indicates inclusion inasmuch as the
same item frequently appears in more
than one list. The proper entry in each
instance must be determined by the
texts of the accounts.
7. Extraordinary items. It is the intent
that net income shall reflect all items
of profit and loss during the period
with the exception of prior period adjustments as described in paragraph 7.1
and long-term debt as described in
paragraph 17 below. Those items related to the effects of events and transactions which have occurred during the
current period and which are of unusual nature and infrequent occurrence
shall be considered extraordinary
items. Accordingly, they will be events
and transactions of significant effect
which are abnormal and significantly
different from the ordinary and typical
activities of the company, and which
would not reasonably be expected to
recur in the foreseeable future. (In determining significance, items should be
considered individually and not in the
aggregate. However, the effects of a series of related transactions arising
from a single specific and identifiable
event or plan of action should be considered in the aggregate.) To be considered as extraordinary under the above
guidelines, an item should be more
than approximately 5 percent of income, computed before extraordinary
items. Commission approval must be
obtained to treat an item of less than
5 percent, as extraordinary. (See accounts 434 and 435.)
7.1 Prior period items. A. Items of profit and loss related to the following
shall be accounted for as prior period
adjustments and excluded from the determination of net income for the current year.
(1) Correction of an error in the financial statements of a prior year.
(2) Adjustments that result from realization of income tax benefits of pre-

acquisition
operating
loss
carryforwards of purchased subsidiaries.
B. All other items of profit and loss
recognized during the year shall be included in the determination of net income for that year.
8. Unaudited items. Whenever a financial statement is required by the Commission, if it is known that a transaction has occurred which affects the
accounts but the amount involved in
the transaction and its effect upon the
accounts cannot be determined with
absolute accuracy, the amount shall be
estimated and such estimated amount
included in the proper accounts. The
utility is not required to anticipate
minor items which would not appreciably affect the accounts.
9. Distribution of pay and expenses of
employees. The charges to gas plant, operating expense and other accounts for
services and expenses of employees engaged in activities chargeable to various accounts, such as construction,
maintenance, and operations, shall be
based upon the actual time engaged in
the respective classes of work, or in
case that method is impracticable,
upon the basis of a study of the time
actually engaged during a representative period.
10. Payroll distribution. Underlying accounting data shall be maintained so
that the distribution of the cost of
labor charged direct to the various accounts will be readily available. Such
underlying data shall permit a reasonably accurate distribution to be made
of the cost of labor charged initially to
clearing accounts so that the total
labor cost may be classified among
construction, cost of removal, gas operating functions (manufactured gas production, natural gas production and
gathering, products extraction, underground storage, transmission, distribution, etc.), and nonutility operations.
11. Accounting to be on accrual basis.
A. The utility is required to keep its
accounts on the accrual basis. This requires the inclusion in its accounts of
all known transactions of appreciable
amount which affect the accounts. If
bills covering such transactions have
not been received or rendered, the

646

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00656

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

lpowell on DSK54DXVN1OFR with $$_JOB

amounts shall be estimated and appropriate adjustments made when the bills
are received.
B. When payments are made in advance for items such as insurance,
rents, taxes or interest, the amount applicable to future periods shall be
charged to account 165, Prepayments,
and spread over the periods to which
applicable by credits to account 165,
and charges to the accounts appropriate for the expenditure.
12. Records for each plant. A. Separate
records shall be maintained by gas
plant accounts of the book cost of each
plant owned, including additions by the
utility to plant leased from others, and
of the cost of operating and maintaining each plant owned or operated. The
term ‘‘plant,’’ as here used, means each
manufactured gas production plant,
the wells and gathering lines of each
distinct production area, each system
of interconnected transmission mains,
each system of wells and lines of an underground storage project, each large
purification or dehydration plant, each
compressor station, other than a distribution compressor station, and each
products extraction plant.
B. A natural gas company may, with
the approval of the Commission, group
certain of its systems of gathering
lines and wells, small compressor stations, systems of underground storage
lines and wells, and systems of interconnected transmission mains for the
purpose of complying with the portion
of this instruction requiring a segregation of the cost of operating and maintaining each plant.
NOTE A: Where manufactured gas is produced by two or more processes at one location, each process shall be accounted for separately.
NOTE B: Each natural gas company shall
maintain operating or accounting records for
each well showing (a) acreage on which
drilled, (b) dates of drilling period, (c) cost of
drilling, (d) depth of well, (e) particulars and
depth of each stratum drilled through, (f) geological formation from which gas is obtained, (g) initial rock pressure and open
flow capacity, (h) sizes of casing used and the
lengths of each size, (i) total cost of well as
recorded in gas plant accounts, (j) date well
abandoned, for wells once productive, (k)
date transferred to underground storage
plant, for wells converted to storage use, and
(l) date drilling discontinued, for wells determined to be nonproductive. The foregoing

Pt. 201
data, as appropriate, shall also be maintained for each subsequent change in the
depth of each well.

13. Accounting for other departments. If
the utility also operates other utility
departments, such as electric, water,
etc., it shall keep such accounts for the
other departments as may be prescribed by proper authority and in the
absence of prescribed accounts, it shall
keep such accounts as are proper or
necessary to reflect the results of operating each such department. It is not
intended that proprietary and similar
accounts which apply to the utility as
a whole shall be departmentalized.
14. Transactions with associated companies. Each utility shall keep its accounts and records so as to be able to
furnish accurately and expeditiously
statements of all transactions with associated companies. The statements
may be required to show the general
nature
of
the
transactions,
the
amounts involved therein and the
amounts included in each account prescribed herein with respect to such
transactions. Transactions with associated companies shall be recorded in the
appropriate accounts for transactions
of the same nature. Nothing herein
contained, however, shall be construed
as restraining the utility from subdividing accounts for the purpose of recording separately transactions with
associated companies.
15. Contingent assets and liabilities.
Contingent assets represent a possible
source of value to the utility contingent upon the fulfillment of conditions
regarded as uncertain. Contingent liabilities include items which may
under certain conditions become obligations of the utility but which are
neither direct nor assumed liabilities
at the date of the balance sheet. The
utility shall be prepared to give a complete statement of significant contingent assets and liabilities (including
cumulative dividends on preference
stock) in its annual report and at such
other times as may be requested by the
Commission.
16. [Reserved]
17. Long-term debt: Premium, discount
and expense, and gain or loss on reacquisition— A. Premium, discount and expense. A separate premium, discount

647

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00657

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

and expense account shall be maintained for each class and series of longterm debt (including receivers’ certificates) issued or assumed by the utility.
The premium will be recorded in account 225, Unamortized Premium on
Long-Term Debt, the discount will be
recorded in account 226, Unamortized
Discount on Long-Term Debt—Debit,
and the expense of issuance shall be recorded in account 181, Unamortized
Debt Expense.
The premium, discount and expense
shall be amortized over the life of the
respective issues under a plan which
will distribute the amounts equitably
over the life of the securities. The amortization shall be on a monthly basis,
and amounts thereof relating to discount and expense shall be charged to
account 428, Amortization of Debt Discount and Expense. The amounts relating to premium shall be credited to account 429, Amortization of Premium on
Debt—Credit.
B. Reacquisition, without refunding.
When long-term debt is reacquired or
redeemed without being converted into
another form of long-term debt and
when the transaction is not in connection with a refunding operation (primarily redemptions for sinking fund
purposes), the difference between the
amount paid upon reacquisition and
the face value; plus any un- amortized
premium less any related unamortized
debt expense and reacquisition costs;
or less any unamortized discount, related debt expense and reacquisition
costs applicable to the debt redeemed,
retired and canceled, shall be included
in account 189, Unamortized Loss on
Reacquired Debt, or account 257,
Unamortized Gain on Reacquired Debt,
as appropriate. The utility shall amortize the recorded amounts equally on a
monthly basis over the remaining life
of the respective security issues (old
original debt). The amounts so amortized shall be charged to account 428.1,
Amortization of Loss on Reacquired
Debt, or credited to account 429.1, Amortization of Gain on Reacquired
Debt—Credit, as appropriate.
C. Reacquisition, with refunding. When
the redemption of one issue or series of
bonds or other long-term obligations is
financed by another issue or series before the maturity date of the first

issue, the difference between the
amount paid upon refunding and the
face value; plus any unamortized premium less related debt expense or less
any unamortized discount and related
debt expense, applicable to the debt refunded, shall be included in account
189, Unamortized Loss on Reacquired
Debt, or account 257, Unamortized Gain
on Reacquired Debt, as appropriate.
The utility may elect to account for
such amounts as follows:
(1) Write them off immediately when
the amounts are insignificant.
(2) Amortize them by equal monthly
amounts over the remainder of the
original life of the issue retired, or
(3) Amortize them by equal monthly
amounts over the life of the new issue.
Once an election is made, it shall be
applied on a consistent basis. The
amounts in (1), (2), or (3) above shall be
charged to account 428.1, Amortization
of Loss on Reacquired Debt, or credited
to account 429.1, Amortization of Gain
on Reacquired Debt—Credit, as appropriate.
D. Under methods (2) and (3) above,
the increase or reduction in current income taxes resulting from the reacquisition should be apportioned over the
remainder of the original life of the
issue retired or over the life of the new
issue, as appropriate, as directed more
specifically in paragraphs E and F
below.
E. When the utility recognizes the
loss in the year of reacquisition as a
tax deduction, account 410.1, Provision
for Deferred Income Taxes, Utility Operating Income, shall be debited and
account 283, Accumulated Deferred Income Taxes—Other, shall be credited
with the amount of the related tax effect, such amount to be allocated to
the periods affected in accordance with
the provisions of account 283.
F. When the utility chooses to recognize the gain in the year of reacquisition as a taxable gain, account 411.1,
Provision for Deferred Income Taxes—
Credit, Utility Operating Income, shall
be credited and account 190, Accumulated Deferred Income Taxes, shall be
debited with the amount of the related
tax effect, such amount to be allocated
to the periods affected in accordance
with the provisions of account 190.

648

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00658

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
G. When the utility chooses to use
the optional privilege of deferring the
tax on the gain attributable to the reacquisition of debt by reducing the depreciable basis of utility property for
tax purposes, pursuant to Section 108
of the Internal Revenue Code, the related tax effects shall be deferred as
the income is recognized for accounting purposes, and the deferred amounts
shall be amortized over the life of the
associated property on a vintage year
basis. Account 410.1, Provision for Deferred Income Taxes, Utility Operating
Income, shall be debited, and account
282, Accumulated Deferred Income
Taxes—Other Property, shall be credited with an amount equal to the estimated income tax effect applicable to
the portion of the income, attributable
to reacquired debt, recognized for accounting purposes during the period.
Account 282 shall be debited and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating
Income, shall be credited with an
amount equal to the estimated income
tax effects, during the life of the property, attributable to the reduction in
the depreciable basis for tax purposes.
H. The tax effects relating to gain or
loss shall be allocated as above to utility operations except in cases where a
portion of the debt reacquired is directly applicable to nonutility operations. In that event, the related portion of the tax effects shall be allocated to nonutility operations. Where
it can be established that reacquired
debt is generally applicable to both
utility and nonutility operations, the
tax effects shall be allocated between
utility and nonutility operations based
on the ratio of net investment in utility plant to net investment in nonutility plant.
I. Premium, discount, or expense on
debt shall not be included as an element in the cost of construction or acquisition of property (tangible or intangible), except under the provisions
of account 432, Allowance for Borrowed
Funds Used During Construction—
Credit.
J. Alternate method. Where a regulatory authority or a group of regulatory authorities having prime rate
jurisdiction over the utility specifically disallows the rate principle of

Pt. 201
amortizing gains or losses on reacquisition of long-term debt without refunding, and does not apply the gain or loss
to reduce interest charges in computing the allowed rate of return for
rate purposes, then the following alternate method may be used to account
for gains or losses relating to reacquisition of long-term debt, with or without refunding.
(1) The difference between the
amount paid upon reacquisition of any
long-term debt and the face value, adjusted for unamortized discount, expenses or premium, as the case may be,
applicable to the debt redeemed shall
be recognized currently in income and
recorded in account 421, Miscellaneous
Nonoperating Income, or account 426.5,
Other Deductions.
(2) When this alternate method of accounting is used, the utility shall include a footnote to each financial
statement, prepared for public use, explaining why this method is being used
along with the treatment given for
ratemaking purposes.
18. Comprehensive interperiod income
tax allocation. A. Where there are timing differences between the periods in
which transactions affect taxable income and the periods in which they
enter into the determination of pretax
accounting income, the income tax effects of such transactions are to be recognized in the periods in which the differences between book accounting income and taxable income arise and in
the periods in which the differences reverse using the deferred tax method. In
general, comprehensive interperiod tax
allocation should be followed whenever
transactions enter into the determination of pretax accounting income for
the period even though some transactions may affect the determination
of taxes payable in a different period,
as further qualified below.
B. Utilities are not required to utilize
comprehensive interperiod income tax
allocation until the deferred income
taxes are included as an expense in the
rate level by the regulatory authority
having rate jurisdiction over the utility. Where comprehensive interperiod
tax allocation accounting is not practiced the utility shall include as a note
to each financial statement, prepared
for public use, a footnote explanation

649

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00659

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

setting forth the utility’s accounting
policies with respect to interperiod tax
allocation and describing the treatment for ratemaking purposes of the
tax timing differences by regulatory
authorities having rate jurisdiction.
C. Should the utility be subject to
more than one agency having rate jurisdiction, its accounts shall appropriately reflect the ratemaking treatment (deferral or flow through) of each
jurisdiction.
D. Once comprehensive interperiod
tax allocation has been initiated either
in whole or in part it shall be practiced
on a consistent basis and shall not be
changed or discontinued without prior
Commission approval.
E. Tax effects deferred currently will
be recorded as deferred debits or deferred credits in accounts 190, Accumulated Deferred Income Taxes, 281, Accumulated Deferred Income Taxes—Accelerated Amortization Property, 282,
Accumulated Deferred Income Taxes—
Other Property, and 283, Accumulated
Deferred Income Taxes—Other, as appropriate. The resulting amounts recorded in these accounts shall be disposed of as prescribed in this system of
accounts or as otherwise authorized by
the Commission.
19. Criteria for classifying leases. A. If
at its inception a lease meets one or
more of the following criteria, the
lease shall be classified as a capital
lease. Otherwise, it shall be classified
as an operating lease.
(1) The lease transfers ownership of
the property to the leasee by the end of
the lease term.
(2) The lease contains a bargain purchase option.
(3) The lease term is equal to 75 percent or more of the estimated economic life of the leased property. However, if the beginning of the lease term
falls within the last 25 percent of the
total estimated economic life of the
lease property, including earlier years
of use, this criterion shall not be used
for purposes of classifying the lease.
(4) the present value at the beginning
of the lease term of the minimum lease
payments, excluding that portion of
the payments representing executory
costs such as insurance, maintenance,
and taxes to be paid by the lessor, including any profit thereon, equals or

exceeds 90 percent of the excess of the
fair value of the leased property to the
lessor at the inception of the lease over
any related investment tax credit retained by the lessor and expected to be
realized by the lessor. However, if the
beginning of the lease term falls within
the last 25 percent of the total estimated economic life of the lease property, including earlier years of use,
this criterion shall not be used for purposes of classifying the lease. The lessee utility shall compute the present
value of the minimum lease payments
using his incremental borrowing rate,
unless (a) it is practicable for the utility to learn the implicit rate computed
by the lessor, and (b) the implicit rate
computed by the lessor is less than the
lessee’s incremental borrowing rate. If
both of those conditions are met, the
lessee shall use the implicit rate.
B. If at any time the lessee and lessor
agree to change the provisions of the
lease, other than by renewing the lease
or extending its term, in a manner that
would have resulted in a different classification of the lease under the criteria in paragraph A had the changed
terms been in effect at the inception of
the lease, the revised agreement shall
be considered as a new agreement over
its term, and the criteria in paragraph
A shall be applied for purposes of
classifying the lease. Likewise, any action that extends the lease beyond the
expiration of the existing lease term,
such as the exercise of a lease renewal
option other than those already included in the lease term, shall be considered as a new agreement, and shall
be classified according to the above
provisions, Changes in estimates (for
example, changes in estimates of the
economic life or of the residual value
of the leased property) or changes in
circumstances (for example, default by
the lessee), shall not give rise to a new
classification of a lease for accounting
purposes.
20. Accounting for leases. A. All leases
shall be classified as either capital or
operating leases. The accounting for
capitalized leases is effective January
1, 1984, except for the retroactive classification of certain leases which, in
accordance with FASB No. 71, will not
be required to be capitalized until after
a three year transition period. For the

650

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00660

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
purpose of reporting to the FERC, the
transition period shall be deemed to
end December 31, 1986.
B. The utility shall record a capital
lease as an asset in account 101.1, Property under Capital Leases (or account
121, Non-utility Property, if appropriate), and an obligation in account
227, Obligations under Capital Leases—
Noncurrent, or account 243, Obligations
under Capital Leases—Current, at an
amount equal to the present value at
the beginning of the lease term of minimum lease payments during the lease
term, excluding that portion of the
payments representing executory costs
such as insurance, maintenance, and
taxes to be paid by the lessor, together
with any profit thereon. However, if
the amount so determined exceeds the
fair value of the leased property at the
inception of the lease, the amount recorded as the asset and obligation shall
be the fair value.
C. The utility, as a lessee, shall recognize an asset retirement obligation
(See General Instruction 24) arising
from the plant under a capital lease
unless the obligation is recorded as an
asset and liability under a capital
lease. The utility shall record the asset
retirement cost by debiting account
101.1, Property under capital leases, or
account 121, Nonutility property, as appropriate, and crediting the liability
for the asset retirement obligation in
account 230, Asset retirement obligations. Asset retirement costs recorded
in account 101.1 or account 121 shall be
amortized by charging rent expense
(See Operating Expense Instruction 3)
or account 421, Miscellaneous nonoperating income, as appropriate, and
crediting a separate subaccount of the
account in which the asset retirement
costs are recorded. Charges for the
periodic accretion of the liability in account 230, Asset retirement obligations, shall be recorded by a charge to
account 411.10, Accretion expense, for
gas utility plant, and account 421, Miscellaneous nonoperating income, for
nonutility plant and a credit to account 230, Asset retirement obligations.
D. Rental payments on all leases
shall be charged to rent expense, fuel
expense, construction work in progress,

Pt. 201
or other appropriate accounts as they
become payable.
E. For a capital lease, for each period
during the lease term, the amounts recorded for the asset and obligation
shall be reduced by an amount equal to
the portion of each lease payment
which would have been allocated to the
reduction of the obligation, if the payment had been treated as a payment on
an installment obligation (liability)
and allocated between interest expense
and a reduction of the obligation so as
to produce a constant periodic rate of
interest on the remaining balance.
21. Gas well records. Each utility with
natural gas operations shall maintain
operating or accounting records for
each well showing: (a) Acreage on
which drilled, (b) dates of drilling period, (c) cost of drilling, (d) depth of
well, (e) particulars and depth of each
stratum drilled through, (f) geological
formation from which gas is obtained,
(g) initial rock pressure and open flow
capacity, (h) sizes of casing used and
lengths of each size, (i) total cost of
well as recorded in gas plant accounts,
(j) date well abandoned, for wells once
productive, (k) date transferred to underground storage plant, for wells converted to storage use, and (l) date drilling discontinued, for wells determined
to be nonproductive. The foregoing
data, as appropriate, shall also be
maintained for each subsequent change
in the depth of each well.
22. Accounting for other comprehensive
income.
A. Utilities shall record items of
other comprehensive income in account 219, accumulated other comprehensive income. Amounts included
in this account shall be maintained by
each category of other comprehensive
income. Examples of categories of
other comprehensive income include,
foreign currency items, minimum pension liability adjustments, unrealized
gains and losses on available-for-sale
type securities and cash flow hedge
amounts. Supporting records shall be
maintained for account 219 so that the
company can readily identify the cumulative amount of other comprehensive income for each item included in
this account.

651

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00661

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

B. When an item of other comprehensive income enters into the determination of net income in the current or
subsequent periods, a reclassification
adjustment shall be recorded in account 219 to avoid double counting of
that amount.
C. When it is probable that an item of
other comprehensive income will be included in the development of cost of
service rates in subsequent periods,
that amount of unrealized losses or
gains shall be recorded in accounts
182.3 or 254 as appropriate.
23. Accounting for derivative instruments and hedging activities.
A. Utilities shall recognize derivative
instruments as either assets or liabilities in the financial statements and
measure those instruments at fair
value, except those falling within recognized exceptions, the most common
of which being the normal purchases
and sales scope exception. Normal purchases or sales are contracts that provide for the purchase or sale of goods
that will be delivered in quantities expected to be used or sold by the utility
over a reasonable period in the normal
course of business. A derivative instrument is a financial instrument or other
contract with all three of the following
characteristics:
(1) It has one or more underlyings
and a notional amount or payment provision. Those terms determine the
amount of the settlement or settlements, and, in some cases, whether or
not a settlement is required.
(2) It requires no initial net investment or an initial net investment that
is smaller than would be required for
other types of contracts that would be
expected to have similar response to
changes in market factors.
(3) Its terms require or permit net
settlement, can readily be settled net
by a means outside the contract, or
provides for delivery of an asset that
puts the recipient in a position not
substantially different from net settlement.
B. The accounting for the changes in
the fair value of derivative instruments
depends upon its intended use and designation. Changes in the fair value of
derivative instruments not designated
as fair value or cash flow hedges will be
recorded in account 175, derivative in-

strument assets, or account 244, derivative instrument liabilities, as appropriate, with the gains recorded in account 421, miscellaneous nonoperating
income, and losses recorded in account
426.4, other deductions.
C. A derivative instrument may be
specifically designated as a fair value
or cash flow hedge. A hedge may be
used to manage risk to price, interest
rates, or foreign currency transactions.
Utilities shall maintain documentation
of the hedge relationship at the inception of the hedge that details the risk
management objective and strategy for
undertaking the hedge, the nature of
the risk being hedged, and how hedge
effectiveness will be determined.
D. If the utility designates the derivative instrument as a fair value hedge
against exposure to changes in the fair
value of a recognized asset, liability, or
a firm commitment, it will record the
change in fair value of the derivative
instrument to account 176, derivative
instrument assets—hedges, or account
245, derivative instrument liabilities—
hedges, as appropriate, with a corresponding adjustment to the subaccount of the item being hedged. The
ineffective portion of the hedge transaction shall be reflected in the same
income or expense account that will be
used when the hedged item enters into
the determination of net income. In
the case of a fair value hedge of a firm
commitment a new asset or liability is
created. As a result of the hedge relationship, the new asset or liability will
become part of the carrying amount of
the item being hedged.
E. If the utility designates the derivative instrument as a cash flow hedge
against exposure to variable cash flows
of a probable forecasted transaction, it
shall record changes in the fair value of
the derivative instrument in account
176, derivative instrument assets—
hedges, or account 245, derivative instrument liabilities—hedges, as appropriate, with a corresponding amount in
account 219, accumulated other comprehensive income, for the effective
portion of the hedge. The ineffective
portion of the hedge transaction shall
be reflected in the same income or expense account that will be used when

652

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00662

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
the hedged item enters into the determination of net income. Amounts recorded in other comprehensive income
shall be reclassified into earnings in
the same period or periods that the
hedged forecasted item enters into the
determination of net income.
24. Accounting for asset retirement obligations.
A. An asset retirement obligation represents a liability for the legal obligation associated with the retirement of
a tangible long-lived asset that a utility is required to settle as a result of
an existing or enacted law, statute, ordinance, or written or oral contract or
by legal construction of a contract
under the doctrine of promissory estoppel. An asset retirement cost represents
the amount capitalized when the liability is recognized for the long-lived
asset that gives rise to the legal obligation. The amount recognized for the liability and an associated asset retirement cost shall be stated at the fair
value of the asset retirement obligation in the period in which the obligation is incurred.
B. The utility shall initially record a
liability for an asset retirement obligation in account 230, Asset retirement
obligations, and charge the associated
asset retirement costs to gas utility
plant and nonutility plant, as appropriate, related to the plant that gives
rise to the legal obligation. The asset
retirement cost shall be depreciated
over the useful life of the related asset
that gives rise to the obligations. For
periods subsequent to the initial recording of the asset retirement obligation, a utility shall recognize the period to period changes of the asset retirement obligation that result from
the passage of time due to the accretion of the liability and any subsequent
measurement changes to the initial liability for the legal obligation recorded in account 230, Asset retirement
obligations, as follows:
(1) The utility shall record the accretion of the liability by debiting account 411.10, Accretion expense, for gas
utility plant, account 413, Expenses of
gas plant leased to others, for gas
plants leased to others, and account
421, Miscellaneous nonoperating income, for nonutility plant and cred-

Pt. 201
iting account 230, Asset retirement obligations; and
(2) The utility shall recognize any
subsequent measurement changes of
the liability initially recorded in account 230, Asset retirement obligations, for each specific asset retirement obligation as an adjustment of
that liability in account 230 with the
corresponding adjustment to gas utility plant, gas plant leased to others,
and nonutility plant, as appropriate.
The utility shall on a timely basis
monitor any measurement changes of
the asset retirement obligations.
C. Gains or losses resulting from the
settlement of asset retirement obligations associated with utility plant resulting from the difference between the
amount of the liability for the asset retirement obligation included in account 230, Asset retirement obligations, and the actual amount paid to
settle the obligation shall be accounted
for as follows:
(1) Gains shall be credited to account
411.6, Gains from disposition of utility
plant, and;
(2) Losses shall be charged to account
411.7, Losses from disposition of utility
plant.
D. Gains or losses on the settlement
of the asset retirement obligations associated with nonutility plant resulting from the difference between the
amount of the liability for the asset retirement obligation in account 230,
Asset retirement obligations, and the
amount paid to settle the obligation,
shall be accounted for as follows:
(1) Gains shall be credited to account
421, Miscellaneous nonoperating income, and;
(2) Losses shall be charged to account
426.5, Other deductions.
E. Separate subsidiary records shall
be maintained for each asset retirement obligation showing the initial liability and associated asset retirement
cost, any incremental amounts of the
liability incurred in subsequent reporting periods for additional layers of the
original liability and related asset retirement cost, the accretion of the liability, the subsequent measurement
changes to the asset retirement obligation, the depreciation and amortization
of the asset retirement costs and related accumulated depreciation, and

653

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00663

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

the settlement date and actual amount
paid to settle the obligation. For purposes of analyses a utility shall maintain supporting documentation so as to
be able to furnish accurately and expeditiously with respect to each asset retirement obligation the full details of
the identity and nature of the legal obligation, the year incurred, the identity of the plant giving rise to the obligation, the full particulars relating to
each component and supporting computations related to the measurement
of the asset retirement obligation.

lpowell on DSK54DXVN1OFR with $$_JOB

Gas Plant Instructions
1. Classification of gas plant at the effective date of the system of accounts.
A. The gas plant accounts provided
herein are generally the same as those
contained in the prior system of accounts except for some changes in classification in the general equipment accounts. Except for these changes, the
balances in the various plant accounts,
as determined under the prior system
of accounts, should be carried forward.
Any remaining balance of plant which
has not yet been classified pursuant to
the requirements of the prior system,
shall be classified in accordance with
the following instructions.
B. The cost to the utility of its unclassified plant shall be ascertained by
analysis of the utility’s records. Adjustments shall not be made to record
in utility plant accounts amounts previously charged to operating expenses
or to income deductions in accordance
with the uniform system of accounts in
effect at the time or in accordance
with the discretion of management as
exercised under a uniform system of
accounts, or under accounting practices previously followed.
C. The detailed gas plant accounts
(301 to 399, inclusive) shall be stated on
the basis of cost to the utility of plant
constructed by it and the original cost,
estimated if not known, of plant acquired as an operating unit or system.
The difference between the original
cost as above, and the cost to the utility of gas plant after giving effect to
any accumulated provision for depreciation, depletion, or amortization
shall be recorded in account 114, Gas
Plant Acquisition Adjustments. The
original cost of gas plant shall be de-

termined by analysis of the utility’s
records or those of the predecessor or
vendor companies with respect to gas
plant previously acquired as operating
units or systems and the differences between the original cost so determined,
less accumulated provisions for depreciation, depletion and amortization,
and the cost to the utility, with necessary adjustments for retirements
from the date of acquisition, shall be
entered in account 114, Gas Plant Acquisition Adjustments. Any difference
between the cost of gas plant and its
book cost, when not properly includable in other accounts, shall be recorded in account 116, Other Gas Plant
Adjustments.
D. Plant acquired by lease which
qualifies as capital lease property
under General Instruction 19. Criteria
for Classifying Leases, shall be recorded
in Account 101.1, Property under Capital Leases.
2. Gas plant to be recorded at cost. A.
All amounts included in the accounts
for gas 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 gas plant shall be included in
the accounts at the cost incurred by
the utility, except for property acquired by lease which qualifies as capital lease property under General Instruction 19. Criteria for Classifying
Leases, and is recorded in Account
101.1, Property under Capital Leases.
Where the term ‘‘cost’’ is used in the
detailed plant accounts, it shall have
the meaning stated in this paragraph.
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,
definition 8.) 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 gas plant
accounts for interest, insurance, or

654

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00664

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
other expenditures occasioned solely
by such form of payment.
D. The gas plant accounts shall not
include the cost or other value of gas
plant contributed to the company. Contributions in the form of money or its
equivalent toward the construction of
gas plant shall be credited to the accounts charged with the cost of such
construction. Plant constructed from
contributions of cash or its equivalent
shall be shown as a reduction to gross
plant constructed when assembling
cost data in work orders for posting to
plant ledger of accounts. The accumulated gross costs of plant accumulated
in the work order shall be recorded as
a debit in the plant ledger of accounts
along with the related amount of contributions concurrently being recorded
as a credit.
3. Components of construction cost. A.
The cost of construction properly includable in the gas plant accounts shall
include, where applicable, the direct
and overhead costs as listed and defined hereunder:
(1)
‘‘Contract
work’’
includes
amounts paid for work performed
under contract by other companies,
firms, or individuals, costs incident to
the award of such contracts, and the
inspection of such work.
(2) ‘‘Labor’’ includes the pay and expenses of employees of the utility engaged on construction work, and related workmen’s compensation insurance, payroll taxes and similar items of
expense. It does not include the pay
and expenses of employees which are
distributed to construction through
clearing accounts nor the pay and expenses included in other items hereunder.
(3) ‘‘Materials and supplies’’ includes
the purchase price at the point of free
delivery plus customs duties, excise
taxes, the cost of inspection, loading
and transportation, the related stores
expenses, and the cost of fabricated
materials from the utility’s shop. In
determining the cost of materials and
supplies used for construction, proper
allowance shall be made for unused
materials and supplies, for materials
recovered from temporary structures
used in performing the work involved,
and for discounts allowed and realized

Pt. 201
in the purchase of materials and supplies.
NOTE: The cost of individual items of
equipment of small value (for example, $500
or less) or of short life, including small portable tools and implements, shall not be
charged to utility plant accounts unless the
correctness of the accounting therefor is
verified by current inventories. The cost
shall be charged to the appropriate operating
expense or clearing accounts, according to
the use of such items, or, if such items are
consumed directly in construction work, the
cost shall be included as part of the cost of
the construction.

(4) ‘‘Transportation’’ includes the
cost of transporting employees, materials and supplies, tools, purchased
equipment, and other work equipment
(when not under own power) to and
from points of construction. It includes
amounts paid to others as well as the
cost of operating the utility’s own
transportation equipment. (See item 5
following.)
(5) ‘‘Special machine service’’ includes the cost of labor (optional), materials and supplies, depreciation, and
other expenses incurred in the maintenance, operation and use of special machines, such as steam shovels, pile
drivers, derricks, ditchers, scrapers,
material unloaders, and other labor
saving machines; also expenditures for
rental maintenance and operation of
machines of others. It does not include
the cost of small tools and other individual items of small value or short
life which are included in the cost of
materials and supplies. (See item 3,
above.) When a particular construction
job requires the use for an extended period of time of special machines, transportation or other equipment, the net
book cost thereof, less the appraised or
salvage value at time of release from
the job, shall be included in the cost of
construction.
(6) ‘‘Shop service’’ includes the proportion of the expense of the utility’s
shop department assignable to construction work except that the cost of
fabricated materials from the utility’s
shop shall be included in ‘‘materials
and supplies.’’
(7) ‘‘Protection’’ includes the cost of
protecting the utility’s property from
fire or other casualties and the cost of
preventing damages to others, or to the
property of others, including payments

655

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00665

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

18 CFR Ch. I (4–1–16 Edition)

for discovery or extinguishment of
fires, cost of apprehending and prosecuting incendiaries, witness fees in relation thereto, amounts paid to municipalities and others for fire protection, and other analogous items of expenditures in connection with construction work.
(8) ‘‘Injuries and damages’’ includes
expenditures or losses in connection
with the construction work on account
of injuries to persons and damages to
the property of others; also the cost of
investigation of and defense against actions for such injuries and damages. Insurance recovered or recoverable on account of compensation paid for injuries
to persons incident to construction
shall be credited to the account or accounts to which such compensation is
charged. Insurance recovered or recoverable on account of property damages
incident to construction shall be credited to the account or accounts
charged with the cost of the damages.
(9) ‘‘Privileges and permits’’ includes
payments for and expenses incurred in
securing temporary privileges, permits
or rights in connection with construction work, such as for the use of private or public property, streets, or
highways, but it does not include rents,
or amounts chargeable as franchises
and consents for which see account 302,
Franchises and Consents.
(10) ‘‘Rents’’ includes amounts paid
for the use of construction quarters
and office space occupied by construction forces and amounts properly includible in construction costs for such
facilities jointly used.
(11) ‘‘Engineering and supervision’’
includes the portion of the pay and expenses
of
engineers,
surveyors,
draftsmen, inspectors, superintendents
and their assistants applicable to construction work.
(12) ‘‘General administration capitalized’’ includes the portion of the pay
and expenses of the general officers and
administrative and general expenses
applicable to construction work.
(13) ‘‘Engineering services’’ includes
amounts paid to other companies,
firms, or individuals engaged by the
utility to plan, design, prepare estimates, supervise, inspect, or give general advice and assistance in connection with construction work.

(14) ‘‘Insurance’’ includes premiums
paid or amounts provided or reserved
as self-insurance for the protection
against loss and damages in connection
with construction, by fire or other casualty, injury to or death of persons
other than employees, damages to
property of others, defalcation of employees and agents, and the nonperformance of contractual obligations
of others. It does not include workmen’s compensation or similar insurance on employees included as ‘‘labor’’
in item 2, above.
(15) ‘‘Law expenditures’’ includes the
general law expenditures incurred in
connection with construction and the
court and legal costs directly related
thereto, other than law expenses included in protection, item 7, and in injuries and damages, item 8.
(16) ‘‘Taxes’’ includes taxes on physical property (including land) during
the period of construction and other
taxes properly includible in construction costs before the facilities become
available for service.
(17) ‘‘Allowance for funds used during
construction’’ includes the net cost for
the period of construction of borrowed
funds used for construction purposes
and a reasonable rate on other funds
when so used, not to exceed without
prior approval of the Commission allowances computed in accordance with
the formula prescribed in paragraph (a)
below, except when such other funds
are used for exploration and development or leases acquired after October
7, 1969, no allowance on such other
funds shall be included in these accounts. No allowance for funds used
during construction charges shall be
included in these accounts upon expenditures for construction projects
which have been abandoned.
(a) The formula and elements for the
computation of the allowance for funds
used during construction shall be:

Ai = s

D
S⎞
⎛ S⎞
⎛
⎞⎛
+d
1−
⎝W⎠
⎝ D+ P + C⎠⎝
W⎠

S ⎤⎡ ⎛
P
C
⎡
⎞
⎛
⎞⎤
Ae = ⎢1 − ⎥ ⎢ p
+c
⎝ D + P + C ⎠ ⎥⎦
⎣ W ⎦⎣ ⎝ D + P + C ⎠
Ai = Gross allowance for borrowed funds used
during construction rate.
Ae = Allowance for other funds used during
construction rate.

656

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00666

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

EC14NO91.166

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

Federal Energy Regulatory Commission
S = Average short-term debt.
s = Short-term debt interest rate.
D = Long-term debt.
d = Long-term debt interest rate.
P = Preferred stock.
p = Preferred stock cost rate.
C = Common equity.
c = Common equity cost rate.
W = Average balance in construction work in
progress less asset retirement costs (See
General Instruction 24) related to plant
under construction.

(b) The rates shall be determined annually. The balances for long-term
debt, preferred stock and common equity shall be the actual book balances
as of the end of the prior year. The cost
rates for long-term debt and preferred
stock shall be the weighted average
cost determined in the manner indicated in subpart D of part 154 of the
Commission’s Regulations Under the
Natural Gas Act. The cost rate for
common equity shall be the rate granted common equity in the last rate proceeding before the ratemaking body
having primary rate jurisdiction. If
such cost rate is not available, the average rate actually earned during the
preceding three years shall be used.
The short-term debt balances and related cost and the average balance for
construction work in progress shall be
estimated for the current year with appropriate adjustments as actual data
becomes available.

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE: When a part only of a plant or
project is placed in operation or is completed
and ready for service but the construction
work as a whole is incomplete, that part of
the cost of the property placed in operation,
or ready for service, shall be treated as ‘‘Gas
Utility Plant’’ and allowance for funds used
during construction thereon as a charge to
construction shall cease. Allowance for funds
used during construction on that part of the
cost of the plant which is incomplete may be
continued as a charge to construction until
such time as it is placed in operation or is
ready for service, except as limited in item
17, above.

(18) ‘‘Earnings and expenses during
construction’’ includes (a) all revenues
derived during the construction period
from property which is included in the
cost of a project under construction
and (b) all expenses which are attributable to the revenues received.
(19) ‘‘Training costs’’. When it is necessary that employees be trained to operate or maintain plant facilities that

Pt. 201
are being constructed and such facilities are not conventional in nature or
are new to the company’s operations,
these costs may be capitalized as a
component of construction cost. Once
plant is placed in service, the capitalization of training costs shall cease,
and subsequent training costs shall be
expensed. (See Operating Expense Instruction 4.)
(20) ‘‘Line pack gas.’’ Line pack includes the first cost of that quantity of
gas introduced into the utility’s system necessary to bring the system up
to its designed operating capacity or
increases therein and which must be
maintained in the system in order to
sustain such design operating capacity.
(21) LNG ‘‘heel’’ is the first cost of
that minimum quantity of liquefied
natural gas necessary to be retained in
holding tanks and other facilities for
purposes of temperature and/or pressure maintenance.
(22) ‘‘Studies’’ includes the costs of
studies such as operational, safety or
environmental studies relative to plant
under construction. Studies mandated
by regulatory bodies relative to facilities in service, shall be charged to Account 183.2, Other Preliminary Survey
and Investigation Charges.
(23) ‘‘Asset retirement costs.’’ The
costs recognized as a result of asset retirement obligations incurred during
the construction and testing of utility
plant shall constitute a component of
construction costs.
4. Overhead construction costs. A. All
overhead construction costs, such as
engineering, supervision, general office
salaries and expenses, construction engineering and supervision by others
than the accounting utility, law expenses, insurance, injuries and damages, relief and pensions, taxes and interest, shall be charged to particular
jobs or units on the basis of the
amounts of such overheads reasonably
applicable thereto, to the end that each
job or unit shall bear its equitable proportion of such costs and that the entire cost of the unit, both direct and
overhead, shall be deducted from the
plant accounts at the time the property is retired.
B. As far as practicable, the determination of pay roll charges includible
in construction overheads shall be

657

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00667

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

based on time card distributions thereof. Where this procedure is impractical,
special studies shall be made periodically of the time of supervisory employees devoted to construction activities to the end that only such overhead
costs as have a definite relation to construction shall be capitalized. The addition to direct construction costs of
arbitrary percentages or amounts to
cover assumed overhead costs is not
permitted.
C. The record supporting the entries
for overhead construction costs shall
be so kept as to show the total amount
of each overhead for each year, the nature and amount of each overhead expenditure charged to each construction
work order and to each utility plant
account, and the bases of distribution
of such costs.
5. Gas plant purchased or sold. A.
When gas plant constituting an operating unit or system is acquired by
purchase, merger, consolidation, liquidation, or otherwise, after the effective date of this system of accounts,
the costs of acquisition, including expenses incidental thereto properly includible in gas plant, shall be charged
to account 102, Gas Plant Purchased or
Sold.
B. The accounting for the acquisition
shall then be completed as follows:
(1) The original cost of plant, estimated if not known, shall be credited
to account 102, Gas Plant Purchased or
Sold, and concurrently charged to the
appropriate gas plant in service accounts and to account 104, Gas Plant
Leased to Others, account 105, Gas
Plant Held for Future Use, 105.1, Production Properties Held for Future
Use, and account 107, Construction
Work in Progress—Gas, as appropriate.
(2) The depreciation, depletion, and
amortization applicable to the original
cost of the properties purchased, shall
be charged to account 102, Gas Plant
Purchased or Sold, and concurrently
credited to the appropriate account for
accumulated provision for depreciation, depletion or amortization.
(3) The cost to the utility of any
property includible in account 121,
Nonutility Property, shall be transferred thereto.
(4) The amount remaining in account
102, Gas Plant Purchased or Sold, shall

then be closed to account 114, Gas
Plant Acquisition Adjustments.
C. If property acquired in the purchase of an operating unit or system is
in such physical condition when acquired that it is necessary substantially to rehabilitate it in order to
bring the property up to the standards
of the utility, the cost of such work,
except replacements, shall be accounted for as a part of the purchase
price of the property.
D. When any property acquired as an
operating unit or system includes duplicate or other plant which will be retired by the accounting utility in the
reconstruction of the acquired property
or its consolidation with previously
owned property, the proposed accounting for such property shall be presented
to the Commission.
E. In connection with the acquisition
of gas plant constituting an operating
unit or system, the utility shall procure, if possible, all existing records relating to the property acquired, or certified copies thereof, and shall preserve
such records in conformity with regulations or practices governing the preservation of records of its own construction.
F. When gas plant constituting an
operating unit or system is sold, conveyed, or transferred to another by
sale, merger, consolidation, or otherwise, the book cost of the property sold
or transferred to another shall be credited to the appropriate utility plant accounts, including amounts carried in
account 114, Gas Plant Acquisition Adjustments. The amounts (estimated if
not known) carried with respect thereto in the accounts for accumulated provision for depreciation, depletion, and
amortization and in account 252, Customer Advances for Construction, shall
be charged to such accounts and the
contra entries made to account 102,
Gas Plant Purchased or Sold. Unless
otherwise ordered by the Commission,
the difference, if any, between (a) the
net amount of debits and credits and
(b) the consideration received for the
property (less commissions and other
expenses of making the sale) shall be
included in account 421.1, Gain on Disposition of Property, or account 421.2,
Loss on Disposition of Property. (See

658

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00668

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
account 102, Gas Plant Purchased or
Sold.)

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE: In cases where existing utilities
merge or consolidate because of financial or
operating reasons or statutory requirements
rather than as a means of transferring title
of purchased properties to a new owner, the
accounts of the constituent utilities, with
the approval of the Commission, may be
combined. In the event original cost has not
been determined, the resulting utility shall
proceed to determine such cost as outlined
herein.

6. Expenditures on leased property. A.
The cost of substantial initial improvements (including repairs, rearrangements, additions, and betterments)
made in the course of preparing for
utility service property leased for a period of more than one year, and the
cost of subsequent substantial additions, replacements, or betterments to
such property, shall be charged to the
gas plant account appropriate for the
class of property leased. If the service
life of the improvements is terminable
by action of the lease, the cost, less net
salvage, of the improvements shall be
spread over the life of the lease by
charges to account 404.3, Amortization
of Other Limited-Term Gas Plant.
However, if the service life is not terminated by action of the lease but by
depreciation proper, the cost of the improvements, less net salvage, shall be
accounted for as depreciable plant. The
provisions of this paragraph are applicable to property leased under either
capital leases or operating leases.
B. If improvements made to property
leased for a period of more than one
year are of relatively minor cost, or if
the lease is for a period of not more
than one year, the cost of the improvements shall be charged to the account
in which the rent is included, either directly or by amortization thereof.
7. Land and land rights. A. The accounts for land and land rights shall
include the cost of land owned in fee by
the utility and rights, interests, and
privileges held by the utility in land
owned by others, such as leaseholds,
easements, rights-of-way, natural gas
rights, and other like interests in land.
Do not include in the accounts for land
and land rights and rights-of-way costs
incurred in connection with first clearing and grading of land and rights-of-

Pt. 201
way and the damage costs associated
with the construction and installation
of plant. Such costs shall be included
in the appropriate plant accounts directly benefited.
B. Where special assessments for public improvements provide for deferred
payments, the full amount of the assessments shall be charged to the appropriate land account and the unpaid
balance shall be carried in an appropriate liability account. Interest on unpaid balances shall be charged to the
appropriate interest account. If any
part of the cost of public improvement
is included in the general tax levy, the
amount thereof shall be charged to the
appropriate tax account.
C. The net profit from the sale of
timber, cord wood, sand, gravel, other
resources or other property acquired
with the rights-of-way or other lands
shall be credited to the appropriate
plant account to which related. Where
land is held for a considerable period of
time and timber and other natural resources on the land at the time of purchase increases in value, the net profit
(after giving effect to the cost of the
natural resources) from the sales of
timber or its products or other natural
resources shall be credited to the appropriate utility operating income account when such land has been recorded in account 105, Gas Plant Held
for Future Use, account 105.1, Production Properties Held for Future Use, or
classified as plant in service otherwise
to account 421, Miscellaneous Nonoperating Income.
D. Separate entries shall be made for
the acquisition, transfer, or retirement
of each parcel of land, and each land
right, or gas right (except rights-ofway for distribution mains), having a
life of more than one year. A record
shall be maintained showing the nature
of ownership, full legal description,
area, map reference, purpose for which
used, city, county, and tax district in
which situated, from whom purchased
or to whom sold, payment given or received, other costs, contract date and
number, date of recording of deed, and
book and page of record. Entries transferring or retiring land or land rights
shall refer to the original entry recording its acquisition. A parcel of land acquired and carried on the books as a

659

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00669

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

unit is not required to be subdivided
with transfers to other land accounts
merely because of the erection thereon
of an incidental structure to be used in
gas operations but for a purpose differing from that for which the land is
chiefly employed; for example, a small
storehouse on production plant land.
E. Any difference between the
amount received from the sale of land
or land rights, less agents’ commissions and other costs incident to the
sale, and the book cost of such land or
rights shall be included in account
411.6, Gains from Disposition of Utility
Plant or 411.7, Losses from Disposition
of Utility Plant when such property
has been recorded in account 105, Gas
Plant Held for Future Use, 105.1, Production Properties Held for Future
Use, otherwise to account 421.1, Gain
on Disposition of Property or 421.2,
Loss on Disposition of Property, as appropriate, unless a reserve therefor has
been authorized and provided. Appropriate adjustments of the accounts
shall be made with respect to any
structures or improvements located on
land sold.
F. The cost of buildings and other
improvements (other than public improvements) shall not be included in
the land accounts. If at the time of acquisition of an interest in land such interest extends to buildings or other improvements (other than public improvements), which are then devoted to
utility operations, the land and improvements shall be separately appraised and the cost allocated to land
and buildings or improvements on the
basis of the appraisals. If the improvements are removed or wrecked without
being used in operations, the cost of removing or wrecking shall be charged
and the salvage credited to the account
in which the cost of the land is recorded.
G. When the purchase of land for gas
operations requires the purchase of
more land than needed for such purposes, the charge to the specific land
account shall be based upon the cost of
the land purchased, less the fair market value of that portion of the land
which is not to be used in utility operations. The portion of the cost measured by the fair market value of the
land not to be used shall be included in

account 105, Gas Plant Held for Future
Use or, account 121, Nonutility Property, as appropriate. Regarding land
and land rights held for the production
of natural gas, account 101, Gas Plant
in Service, shall include (1) the cost of
lands owned in fee upon which producing natural gas wells are located on
lands owned in fee which are being
drained through the operation by the
utility of wells on the other land, and
(2) the first cost of lands held under
lease upon which the utility pays royalties for the natural gas obtained
therefrom. The cost of all other land
and land rights held for the production
of natural gas under a plant for such
use shall be included in account 105,
Gas Plant Held for Future Use, or 105.1,
Production Properties Held for Future
Use, as appropriate.
NOTE: In addition to the accounting
records prescribed herein, supplemental
records of land and land rights held for future use shall be kept in such manner as to
permit the segregation within a reasonable
time of the land and land rights constituting
(1) productive but nonproducing fields, (2)
unproven or undeveloped fields, and (3) storage fields, and to show the following data
with respect to each natural gas lease, regardless of the accounting treatment accorded the lease costs; (a) name of lessor, (b)
location of leasehold and number or other
identification assigned thereto, (c) date and
period of lease agreement, (d) first cost of
lease including details of the elements of
such cost, (e) annual rental provisions, (f)
date and cost of drilling, (g) date gas determined to exist, (h) date of completion of first
well drilled by the utility in each pool of gas,
(i) royalty provisions, (j) amortization and
depletion provisions, and (k) date of abandonment of lease.

H. Provision shall be made for amortizing amounts carried in the accounts
for limited-term interests in land, so as
to apportion equitably the cost of each
interest over the life thereof. For the
purposes of amortization of natural gas
rights, separate interests in land which
comprise an interest in a production
area may be grouped to form a depletion unit. (See account 111, Accumulated Provision for Amortization and
Depletion of Gas Utility Plant, account
404.1, Amortization and Depletion of
Producing Natural Gas Land and Land
Rights, account 404.3, Amortization of
Other Limited-Term Gas Plant, and account 797, Abandonment, leases.)

660

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00670

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

lpowell on DSK54DXVN1OFR with $$_JOB

I. The items of cost to be included in
the accounts for land and land rights
are as follows:
1. Bulkheads, buried, not requiring maintenance or replacement.
2. Cost, first, of acquisition including
mortgages and other liens assumed (but not
subsequent interest thereon).
3. [Reserved]
4. Condemnation proceedings, including
court and counsel costs.
5. Consents and abutting damages, payment for.
6. Conveyancers’ and notaries’ fees.
7. Fees, commissions, and salaries to brokers, agents, and others in connection with
the acquisition of the land or land rights.
8. [Reserved]
9. Leases, cost of voiding upon purchase to
secure possession of land.
10. Removing, relocating, or reconstructing, property of others, such as buildings, highways, railroads, bridges, cemeteries, churches, telephone and power lines,
etc., in order to acquire quiet possession.
11. Retaining walls unless identified with
structures.
12. Special assessments levied by public authorities for public improvements on the
basis of benefits for new roads, new bridges,
new sewers, new curbing, new pavements,
and other public improvements, but not
taxes levied to provide for the maintenance
of such improvements.
13. Surveys in connection with the acquisition, but not amounts paid for topographical
surveys and maps where such costs are attributable to structures or plant equipment
erected or to be erected or installed on such
land.
14. Taxes assumed, accrued to date of
transfer of title.
15. Title, examining, clearing, insuring,
and registering in connection with the acquisition and defending against claims relating
to the period prior to the acquisition.
16. Appraisals prior to closing title.
17. Cost of dealing with distributees or
legatees residing outside of the state or
county, such as recording power of attorney,
recording will or exemplification of will, recording satisfaction of state tax.
18. Filing satisfaction of mortgage.
19. Documentary stamps.
20. Photographs of property at acquisition.
21. Fees and expenses incurred in the acquisition of water rights, and grants.
22. Cost of fill to extend bulkhead line over
land under water, where riparian rights are
held, which is not occasioned by the erection
of a structure.
23. Sidewalks and curbs constructed by the
utility on public property.
24. Labor and expenses in connection with
securing rights of way, where performed by
company employees and company agents.

Pt. 201
8. Structures and improvements. A. The
accounts for structures and improvements shall include the cost of all
buildings and facilities to house, support, or safeguard property or persons,
including all fixtures permanently attached to and made a part of buildings
and which cannot be removed therefrom without cutting into the walls,
ceilings, or floors, or without in some
way impairing the buildings, and improvements of a permanent character
on or to land. Also include those costs
incurred in connection with the first
clearing and grading of land and rightsof-way, and the damage costs associated with construction and installation
of plant.
B. The cost of specially provided
foundations not intended to outlast the
machinery or apparatus for which provided, and the cost of angle irons, castings, etc., installed at the base of an
item of equipment, shall be charged to
the same account as the cost of the
machinery, apparatus, or equipment.
C. Minor buildings and structures
may be considered a part of the facility
in connection with which constructed
or operated and the cost thereof accounted for accordingly when the nature of the structure and facility indicates the correctness of such accounting.
D. Where furnaces and boilers are
used primarily for furnishing steam for
some particular department and only
incidentally for furnishing steam for
heating a building and operating the
equipment therein, the entire cost of
such furnaces and boilers shall be
charged to the appropriate plant account, and no part to the building account.
E. The cost of disposing of materials
excavated in connection with construction of structures shall be considered
as a part of the cost of such work, except as follows: (a) When such material
is used for filling, the cost of loading,
hauling, and dumping shall be equitably apportioned between the work in
connection with which the removal occurs and the work in connection with
which the material is used; (b) when
such material is sold, the net amount
realized from such sales shall be credited to the work in connection with
which the removal occurs. If the

661

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00671

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

lpowell on DSK54DXVN1OFR with $$_JOB

amount realized from the sale of excavated materials exceeds the removal
costs and the costs in connection with
the sale, the excess shall be credited to
the land account in which the site is
carried.
F. Lighting or other fixtures temporarily attached to buildings for purposes of display or demonstration shall
not be included in the cost of the building but in the appropriate equipment
account.
G. The items of cost to be included in
the accounts for structures and improvements are as follows:
1. Architects’ plans and specifications including supervision.
2. Ash pits (when located within the building).
3. Athletic field structures and improvements.
4. Boilers, furnaces, piping, wiring, fixtures, and machinery for heating, lighting,
signaling, ventilating, and air conditioning
systems, plumbing, vacuum cleaning systems, incinerator and smoke pipe, flues, etc.
5. Bulkheads, including dredging, riprap
fill, piling, decking, concrete, fenders, etc.,
when exposed and subject to maintenance
and replacement.
6. Chimneys.
7. Coal bins and bunkers.
8. Commissions and fees to brokers, agents,
architects and others.
9. Conduit (not to be removed) with its
contents.
10. Damages to abutting property during
construction.
11. Docks.
12. Door checks and door stops.
13. Drainage and sewerage systems.
14. Elevators, cranes, hoists, etc., and the
machinery for operating them.
15. Excavation, including shoring, bracing,
bridging, refill, and disposal of excess excavated material, cofferdams around foundation, pumping water from cofferdam during
construction, and test borings.
16. Fences and fence curbs (not including
protective fences insolating items of equipment, which shall be charged to the appropriate equipment account).
17. Fire protection systems when forming a
part of a structure.
18. Flagpole.
19. Floor covering (permanently attached).
20. Foundations and piers for machinery,
constructed as a permanent part of a building or other items listed herein.
21. Grading and clearing when directly occasioned by the building of a structure.
22. Holders—Relief.
23. Intrasite communication system, poles,
pole fixtures, wires and cables.

24. Landscaping, lawns, shrubbery, etc.
25. Leases, voiding upon purchase to secure
possession of structures.
26. Leased property, expenditures on.
27. Lighting fixtures and outside lighting
system.
28. Mailchutes when part of a building.
29. Marquee, permanently attached to
building.
30. Painting, first coat.
31. Permanent paving, concrete, brick,
flagstone, asphalt, etc. within the property
lines.
32. Partitions, including movable.
33. Permits and privileges.
34. Platforms, railings and gratings when
constructed as a part of a structure.
35. Power boards for services to a building.
36. Refrigerating systems for general use.
37. Retaining walls except when identified
with land.
38. Roadways, railroads, bridges, and trestles, intrasite, except railroads provided for
in equipment accounts.
39. Roofs.
40. Scales, connected to and forming a part
of a structure.
41. Screens.
42. Sewer systems, for general use.
43. Sidewalks, culverts, curbs and streets
constructed by the utility on its property.
44. Sprinkling systems.
45. Sump pumps and pits.
46. Stacks—brick, steel, or concrete, when
set on foundation forming part of general
foundation and steelwork of a building.
47. Steel inspection during construction.
48. Storage facilities constituting a part of
a building.
49. Storm doors and windows.
50. Subways, areaways, and tunnels, directly connected to and forming part of a
structure.
51. Tanks, constructed as part of a building
or as a distinct structural unit.
52. Temporary heating during construction
(net cost).
53. Temporary water connection during
construction (net cost).
54. Temporary shanties and other facilities
used during construction (net cost).
55. Topographical maps.
56. Tunnels, intake and discharge, when
constructed as part of a structure, including
sluice gates, and those constructed to house
mains.
57. Vaults constructed as part of a building.
58. Watchmen’s sheds and clock systems
(net cost when used during construction
only).
59. Water basins or reservoirs.
60. Water front improvements.
61. Water meters and supply system for a
building or for general company purposes.
62. Water supply piping, hydrants and
wells.

662

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00672

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
63. Wharves.
64. Window shades and ventilators.
65. Yard drainage system.
66. Yard lighting system.
67. Yard surfacing, gravel, concrete, or oil
(First cost only).

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE: Structures and Improvements accounts shall be credited with the cost of coal
bunkers, stacks, foundations, subways, tunnels, etc., the use of which has terminated
with the removal of the equipment with
which they are associated even though they
have not been physically removed.

9. Equipment. A. The cost of equipment chargeable to the gas plant accounts, unless otherwise indicated in
the text of an equipment account, includes the net purchase price thereof,
sales taxes, investigation and inspection expenses necessary to such purchase, expenses of transportation when
borne by the utility, labor employed,
materials and supplies consumed, and
expenses incurred by the utility in unloading and placing the equipment in
readiness to operate. Also include
those costs incurred in connection with
the first clearing and grading of land
and rights-of-way and the damage costs
associated with construction and installation of plant.
B. Exclude from equipment accounts
hand and other portable tools which
are likely to be lost or stolen or which
have relatively small value (for example, $500 or less) or short life, unless
the correctness of the accounting
therefor as gas plant is verified by current inventories. Special tools acquired
and included in the purchase price of
equipment shall be included in the appropriate plant account. Portable drills
and similar tool equipment when used
in connection with the operation and
maintenance of a particular plant or
department, such as production, transmission, distribution, etc., or in
‘‘stores,’’ shall be charged to the plant
account appropriate for their use.
C. The equipment accounts shall include angle irons and similar items
which are installed at the base of an
item of equipment, but piers and foundations which are designed to be as
permanent as the buildings which
house the equipment, or which are constructed as a part of the building and
which cannot be removed without cutting into the walls, ceilings or floors or
without in some way impairing the

Pt. 201
building, shall be included in the building accounts.
D. The equipment accounts shall include the necessary costs of testing or
running a plant or part thereof during
an experimental or test period prior to
becoming available for service. The
utility shall furnish the Commission
with full particulars of and justification for any test or experimental run
extending beyond a period of thirty
days.
E. The cost of efficiency or other
tests made subsequent to the date
equipment becomes available for service shall be charged to the appropriate
expense accounts, except that tests to
determine whether equipment meets
the specifications and requirements as
to efficiency, performance, etc., guaranteed by manufacturers, made after
operations have commenced and within
the period specified in the agreement
or contract of purchase, may be
charged to the appropriate gas plant
account.
10. Additions and retirements of gas
plant.
A. For the purpose of avoiding undue
refinement in accounting for additions
to and retirements and replacements of
gas plant, all property shall be considered as consisting of (1) retirement
units and (2) minor items of property.
Each utility shall maintain a written
property units listing for use in accounting for additions and retirements
of gas plant and apply the listing consistently.
B. The addition and retirement of retirement units shall be accounted for
as follows:
(1) When a retirement unit is added
to gas plant, the cost thereof shall be
added to the appropriate gas plant account, except that when units are acquired in the acquisition of any gas
plant constituting an operating system, they shall be accounted for as provided in gas plant instruction 5.
(2) When a retirement unit is retired
from gas plant, with or without replacement, the book cost thereof shall
be credited to the gas plant account in
which it is included, determined in the
manner set forth in paragraph D,
below. If the retirement unit is of a depreciable class, the book cost of the
unit retired and credited to gas plant

663

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00673

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

shall be charged to the accumulated
provision for depreciation applicable to
such property. The cost of removal and
the salvage shall be charged or credited, as appropriate, to such depreciation account.
C. The addition and retirement of
minor items of property shall be accounted for as follows:
(1) When a minor item of property
which did not previously exist is added
to plant, the cost thereof shall be accounted for in the same manner as for
the addition of a retirement unit, as
set forth in paragraph B(1), above, if a
substantial addition results, otherwise
the charge shall be to the appropriate
maintenance expense account.
(2) When a minor item of property is
retired and not replaced, the book cost
thereof shall be credited to the gas
plant account in which it is included;
and, in the event the minor item is a
part of depreciable plant, the account
for accumulated provision for depreciation shall be charged with the book
cost and cost of removal and credited
with the salvage. If, however, the book
cost of the minor item retired and not
replaced has been or will be accounted
for by its inclusion in the retirement
unit of which it is a part when such
unit is retired, no separate credit to
the property account is required when
such minor item is retired.
(3) When a minor item of depreciable
property is replaced independently of
the retirement unit of which it is a
part, the cost of replacement shall be
charged to the maintenance account
appropriate for the item, except that if
the replacement effects a substantial
betterment (the primary aim of which
is to make the property affected more
useful, more efficient, or of greater durability, or of greater capacity), the excess cost of the replacement over the
estimated cost at current prices of replacing without betterment shall be
charged to the appropriate gas plant
account.
D. The book cost of gas plant retired
shall be the amount at which such
property is included in the gas plant
accounts, including all components of
construction costs. The book cost shall
be determined from the utility’s
records and if this cannot be done it
shall be estimated. Utilities must fur-

nish the particulars of such estimates
to the Commission, if requested. When
it is impracticable to determine the
book cost of each unit, due to the relatively large number or small cost
thereof, an appropriate average book
cost of the units, with due allowance
for any differences in size and character, shall be used as the book cost of
the units retired.
E. The book cost of land retired shall
be credited to the appropriate land account. If the land is sold, the difference
between the book cost (less any accumulated provision for depreciation, depletion or amortization therefor which
has been authorized and provided) and
the sale price of the land (less commissions and other expenses of making the
sale) shall be recorded in account 411.6,
Gains from Disposition of Utility Plant
or 411.7, Losses from Disposition of
Utility Plant when the property has
been recorded in account 105, Gas Plant
Held for Future Use account 105.1, Production Properties Held for Future
Use, otherwise to accounts 421.1, Gain
on Disposition of Property or 421.2,
Loss on Disposition of Property, as appropriate. If the land is not used in
utility service but is retained by the
utility, the book cost shall be charged
to account 105, Gas Plant Held for Future Use, or account 121, Nonutility
Property as appropriate.
F. The book cost less net salvage of
depreciable gas plant retired shall be
charged in its entirety to account 108.
Accumulated Provision for Depreciation of Gas Plant in Service. Any
amounts which, by approval or order of
the Commission, are charged to account 182, Extraordinary Property
Losses, shall be credited to account 108.
G. The accounting for the retirement
of amounts included in account 302,
Franchises and Consents, and account
303, Miscellaneous Intangible Plant,
and the item of limited-term interest
in land included in the accounts for
land and land rights, shall be as provided for in the text of account 111, Accumulated Provision for Amortization
and Depletion of Gas Utility Plant, account 404.3, Amortization of Other
Limited-Term Gas Plant, and account
405, Amortization of Other Gas Plant.
11. Work order and property record system required. A. Each utility shall

664

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00674

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
record all construction and retirements
of gas plant by means of work orders or
job orders. Separate work orders may
be opened for additions to and retirements of gas plant or the retirements
may be included with the construction
work order, provided, however, that all
items relating to the retirements shall
be kept separate from those relating to
construction and provided, further,
that any maintenance costs involved in
the work shall likewise be segregated.
B. Each utility shall keep its work
order system so as to show the nature
of each addition to or retirement of gas
plant, the total cost thereof, the source
or sources of costs, and the gas plant
account or accounts to which charged
or credited. Work orders covering jobs
of short duration may be cleared
monthly.
C. Each utility shall maintain
records in which, for each plant account, the amounts of the annual additions and retirements are classified so
as to show the number and cost of the
various record units or retirement
units.
12. Transfers of property. When property is transferred from one gas plant
account to another, from one utility
department to another (such as from
gas to electric), from one operating division or area to another, to or from
account 101, Gas Plant in Service, 104,
Gas Plant Leased to Others, 105, Gas
Plant Held for Future Use, 105.1, Production Properties held for Future Use,
and 121, Nonutility Property, the transfer shall be recorded by transferring
the original cost thereof from the one
account, department, or location to the
other. Any related amounts carried in
the accounts for accumulated provisions for depreciation, depletion, or
amortization shall be transferred in accordance with the segregation of such
accounts.

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE: Amounts included in account 111,
Accumulated Provision for Amortization and
Depletion of Gas Utility Plant, shall not be
related to a particular natural gas lease, and
therefore, shall not be transferred under the
provisions of this instruction.

13. Common utility plant. A. If the utility is engaged in more than one utility
service such as gas, electric, and water,
and any of its utility plant is used in
common for several utility services or

Pt. 201
for other purposes to such an extent
and in such manner that it is impracticable to segregate it by utility services
currently in the accounts, such property, with the approval of the Commission, may be designated and classified
as ‘‘common utility plant.’’
B. The book amount of utility plant
designated as common plant shall be
included in account 118, Other Utility
Plant, and if applicable in part to gas
department, shall be segregated and accounted for in subaccounts as gas plant
is accounted for in accounts 101 to 107,
inclusive, and gas plant adjustments in
account 116; any amounts classifiable
as common plant acquisition adjustments or common plant adjustments
shall be subject to disposition as provided in paragraph C and B of accounts
114 and 116, respectively, for amounts
classified in those accounts. The original cost of common utility plant in
service shall be classified according to
detailed utility plant accounts appropriate for the property.
C. The utility shall be prepared to
show at any time and to report to the
Commission annually, or more frequently, if required, and by utility
plant accounts (301 to 399) the following: (1) The book cost of common
utility plant, (2) the allocation of such
cost to the respective departments
using the common utility plant, and (3)
the basis of the allocation.
D. The accumulated provision for depreciation and amortization of the utility shall be segregated so as to show
the amount applicable to the property
classified as common utility plant.
E. The expenses of operation maintenance, rents, depreciation and amortization of common utility plant shall be
recorded in the accounts prescribed
herein, but designated as common expenses, and the allocation of such expenses to the departments using the
common utility plant shall be supported in such manner as to reflect
readily the basis of allocation used.
14. Employee villages and living quarters. Where employee villages or living
quarters are provided for operators and
attendants of a functional installation
such as a compressor station or gasoline plant, the structures and improvements shall be classified in the related

665

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00675

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

functional structures and improvements account. The furnishings of such
residential and recreational facilities
shall be classified in the equipment account of the related function.
15. Fees for applications filed with the
Commission. A. Fees for applications involving construction of property shall
be accounted for as follows:
(1) All fees paid prior to the final disposition of the certificate application
shall be charged to account 186, Miscellaneous Deferred Debits.
(2) If the certificate is granted and
accepted, the amounts recorded in account 186 shall be cleared to account
107, Construction Work in Progress—
Gas, and subsequently cleared to the
appropriate plant accounts.
(3) If the certificate requested is not
granted or is not accepted by the applicant, the fees recorded in account 186
shall be cleared to account 928, Regulatory Commission Expenses.
(4) All amounts paid after the Commission has granted the certificate
shall be recorded in account 107, Construction Work in Progress—Gas, and
subsequently cleared to the appropriate plant accounts.
B. All amounts paid related to certificate applications involving the acquisitions of facilities including those
acquired by merger or pooling of interests shall be charged to account 928,
Regulatory Commission Expenses.
C. All other fees for applications not
involving construction or acquisition
of facilities shall be charged to account
928, Regulatory Commission Expenses.

lpowell on DSK54DXVN1OFR with $$_JOB

Operating Expense Instructions
1. Supervision and engineering. The supervision and engineering includible in
the operating expense accounts shall
consist of the pay and expenses of superintendents, engineers, clerks, other
employees and consultants engaged in
supervising and directing the operation
and maintenance of each utility function. Wherever allocations are necessary in order to arrive at the amount
to be included in any account the
method and basis of allocation shall be
reflected by underlying records.
ITEMS
Labor:

1. Special tests to determine efficiency of
equipment operation.
2. Preparing or reviewing budgets, estimates, and drawings relating to operation or
maintenance for departmental approval.
3. Preparing instructions for operations
and maintenance activities.
4. Reviewing and analyzing operating results.
5. Establishing organizational setup of departments and executing changes therein.
6. Formulating and reviewing routines of
departments and executing changes therein.
7. General training and instruction of employees by supervisors whose pay is chargeable hereto. Specific instruction and training in a particular type of work is chargeable
to the appropriate functional account. (See
Gas Plant Instruction 3(19).)
8. Secretarial work for supervisory personnel, but not general clerical and stenographic work chargeable to other accounts.
Expenses:
9. Consultants’ fees and expenses.
10. Meals, traveling and incidental expenses.

2. Maintenance. A. The cost of maintenance chargeable to the various operating expense and clearing accounts,
includes labor, materials, overheads
and other expenses incurred in maintenance work. A list of work operations
applicable generally to utility plant is
included hereunder. Other work operations applicable to specific classes of
plant are listed in functional maintenance expense accounts.
B. Materials recovered in connection
with the maintenance of property shall
be credited to the same account to
which the maintenance cost was
charged.
C. If the book cost of any property is
carried in account 102, Gas Plant Purchased or Sold, the cost of maintaining
such property shall be charged to the
accounts for maintenance of property
of the same class and use, the book
cost of which is carried in other gas
plant in service accounts. Maintenance
of property leased from others shall be
treated as provided in operating expense instruction 3.
ITEMS
1. Direct field supervision of maintenance.
2. Inspecting, testing, and reporting on
condition of plant specifically to determine
the need for repairs, replacements, rearrangements and changes and inspecting
and testing the adequacy of repairs which
have been made.

666

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00676

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

lpowell on DSK54DXVN1OFR with $$_JOB

3. Work performed specifically for the purpose of preventing failure, restoring serviceability or maintaining life of plant.
4. Rearranging and changing the location
of plant not retired.
5. Repairing for reuse materials recovered
from plant.
6. Testing for, locating and clearing trouble.
7. Net cost of installing, maintaining, and
removing temporary facilities to prevent
interruptions in service.
8. Replacing or adding minor items of plant
which do not constitute a retirement unit.
(See gas plant instruction 10.)

3. Rents. A. The rent expense accounts provided under the several functional groups of expense accounts shall
include all rents, including taxes paid
by the lessee on leased property, for
property used in utility operations, except (1) minor amounts paid for occasional or infrequent use of any property or equipment and all amounts
paid for use of equipment that, if
owned, would be includible in plant accounts 391 to 398, inclusive, which shall
be treated as an expense item and included in the appropriate functional
account and (2) rents which are chargeable to clearing accounts, and distributed therefrom to the appropriate account. If rents cover property used for
more than one function, such as production and transmission, or by more
than one department, the rents shall be
apportioned to the appropriate rent expense or clearing accounts of each department on an actual, or, if necessary,
an estimated basis.
B. When a portion of property or
equipment rented from others for use
in connection with utility operations is
subleased, the revenue derived from
such subleasing shall be credited to the
rent revenue account in operating revenues: Provided, however, That in case
the rent was charged to a clearing account, amounts received from subleasing the property shall be credited
to such clearing account.
C. The cost, when incurred by the lessee, of operating and maintaining
leased property, shall be charged to the
accounts appropriate for the expense if
the property were owned.
D. The cost incurred by the lessee of
additions and replacements to gas
plant leased from other shall be ac-

Pt. 201
counted for as provided in gas plant instruction 6.
4. Training costs. When it is necessary
that employees be trained to specifically operate or maintain plant facilities that are being constructed, the related costs shall be accounted for as a
current operating and maintenance expense. These expenses shall be charged
to the appropriate functional accounts
currently as they are incurred. However, when the training costs involved
relate to facilities which are not conventional in nature, or are new to the
company’s operations, then see Gas
Plant Instruction 3(19) for accounting.
Balance Sheet Chart of Accounts
ASSETS AND OTHER DEBITS

1. UTILITY PLANT
101 Gas plant in service.
101.1 Property under capital leases.
102 Gas plant purchased or sold.
103 Experimental gas plant unclassified.
104 Gas plant leased to others.
105 Gas plant held for future use.
105.1 Production properties held for future
use.
106 Completed construction not classified—
Gas.
107 Construction work in progress—Gas.
108 Accumulated provision for depreciation
of gas utility plant.
109 [Reserved]
111 Accumulated provision for amortization
and depletion of gas utility plant.
111.1–111.2 [Reserved]
112 [Reserved]
113.1–113.2 [Reserved]
114 Gas plant acquisition adjustments.
115 Accumulated provision for amortization
of gas plant acquisition adjustments.
116 Other gas plant adjustments.
117.1 Gas stored-Base gas.
117.2 System balancing gas.
117.3 Gas stored in reservoirs and pipelinesnoncurrent.
117.4 Gas owed to system gas.
118 Other utility plant.
119 Accumulated provision for depreciation
and amortization of other utility plant.
2. OTHER PROPERTY AND INVESTMENTS
121 Nonutility property.
122 Accumulated provision for depreciation
and amortization of nonutility property.
123 Investment in associated companies.
123.1 Investment in subsidiary companies.
124 Other investments.
125 Sinking funds.
126 Depreciation fund.
128 Other special funds.

667

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00677

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

3. CURRENT AND ACCRUED ASSETS
131 Cash.
132 Interest special deposits.
133 Dividend special deposits.
134 Other special deposits.
135 Working funds.
136 Temporary cash investments.
141 Notes receivable.
142 Customer accounts receivable.
143 Other accounts receivable.
144 Accumulated provision for uncollectible
accounts—Cr.
145 Notes receivable from associated companies.
146 Accounts receivable from associated
companies.
151 Fuel stock.
152 Fuel stock expenses undistributed.
153 Residuals and extracted products.
154 Plant materials and operating supplies
(Major only).
155 Merchandise.
156 Other materials and supplies.
163 Stores expense undistributed.
164.1 Gas stored—current.
164.2 Liquefied natural gas stored.
164.3 Liquefied natural gas held for processing.
165 Prepayments.
166 Advances for gas exploration, development, and production.
167 Other advances for gas.
171 Interest and dividends receivable.
172 Rents receivable.
173 Accrued utility revenues.
174 Miscellaneous current and accrued assets.
4. DEFERRED DEBITS
181 Unamortized debt expense.
182.1 Extraordinary property losses.
182.2 Unrecovered plant and regulatory study
costs.
182.3 Other regulatory assets.
183.1 Preliminary natural gas survey and investigation charges.
183.2 Other preliminary survey and investigation charges.
184 Clearing accounts.
185 Temporary facilities.
186 Miscellaneous deferred debits.
187 Deferred losses from disposition of utility
plant.
188 Research, development, and demonstration expenditures.
189 Unamortized loss on reacquired debt.
190 Accumulated deferred income taxes.
191 Unrecovered purchased gas costs.
LIABILITIES AND OTHER CREDIT

lpowell on DSK54DXVN1OFR with $$_JOB

6. LONG-TERM DEBT
221 Bonds.
222 Reacquired bonds.
223 Advances from associated companies.
224 Other long-term debt.
225 Unamortized premium on long-term debt.
226 Unamortized discount on long-term
debt—Debit.
7. OTHER NONCURRENT LIABILITIES.
227 Obligations under capital leases—noncurrent.
228.1 Accumulated provision for property insurance.
228.2 Accumulated provision for injuries and
damages.
228.3 Accumulated provision for pensions and
benefits.
228.4 Accumulated miscellaneous operating
provisions.
229 Accumulated provision for rate refunds.
8. CURRENT AND ACCRUED LIABILITIES
231 Notes payable.
232 Accounts payable.
233 Notes payable to associated companies.
234 Accounts payable to associated companies.
235 Customer deposits.
236 Taxes accrued.
237 Interest accrued.
238 Dividends declared.
239 Matured long-term debt.
240 Matured interest.
241 Tax collections payable.
242 Miscellaneous current and accrued liabilities.
243 Obligations under capital leases—current.
9. DEFERRED CREDITS
252 Customer advances for construction.
253 Other deferred credits.
254 Other regulatory liabilities.
255 Accumulated deferred investment tax
credits.
256 Deferred gains from disposition of utility
plant.

5. PROPRIETARY CAPITAL
201
202
203
204

205 Preferred stock subscribed.
206 Preferred stock liability for conversion.
207 Premium on capital stock.
208 Donations received from stockholders.
209 Reduction in par or stated value of capital stock.
210 Gain on resale or cancellation of reacquired capital stock.
211 Miscellaneous paid-in capital.
212 Installments received on capital stock.
213 Discount on capital stock.
214 Capital stock expense.
215 Appropriated retained earnings.
216 Unappropriated retained earnings.
216.1 Unappropriated undistributed subsidiary earnings.
217 Reacquired capital stock.

Common stock issued.
Common stock subscribed.
Common stock liability for conversion.
Preferred stock issued.

668

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00678

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
257 Unamortized gain on reacquired debt.
281 Accumulated deferred income taxes—Accelerated amortization property.
282 Accumulated deferred income taxes—
Other property.
283 Accumulated deferred income taxes—
Other.

Balance Sheet Accounts
101 Gas plant in service.
A. This account shall include the
original cost of gas plant, included in
accounts 301 to 399 prescribed herein,
owned and used by the utility in its gas
operations, and having an expectation
of life in service of more than one year
from date of installation. Including
such property owned by the utility but
held by nominees. (See also account 106
for unclassified construction costs of
completed plant actually in service.)
B. The cost of additions to and betterments of property leased from others, which are includible in this account, shall be recorded in subdivisions
separate and distinct from those relating to owned property. (See gas plant
instruction 6.)

lpowell on DSK54DXVN1OFR with $$_JOB

101.1 Property under capital leases.
A. This account shall include the
amount recorded under capital leases
for plant leased from others and used
by the utility in its utility operations.
B. The gas property included in this
account shall be classified separately
according to the detailed accounts (301
to 399) prescribed for gas plant in service.
C. Records shall be maintained with
respect to each capital lease reflecting:
(1) Name of lessor, (2) basic details of
lease, (3) terminal date, (4) original
cost fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7) present
value of minimum lease payments, (8)
the amounts representing interest and
the interest rate used, and (9) expenses
paid. Records shall also be maintained
for plant under a lease, to identify the
asset retirement obligation and cost
originally recognized for each lease and
the periodic charges and credits made
to the asset retirement obligations and
asset retirement costs.

Pt. 201
102 Gas plant purchased or sold.
A. This account shall be charged with
the cost of gas plant acquired as an operating unit or system by purchase,
merger, consolidation, liquidation, or
otherwise, and shall be credited with
the selling price of like property transferred to others pending the distribution to appropriate accounts in accordance with gas plant instruction 5.
B. Within six months from the date
of acquisition or sale of property recorded herein, the utility shall file
with the Commission the proposed
journal entries to clear from this account the amounts recorded herein.
103 Experimental gas plant unclassified.
A. This account shall include the
cost of gas plant which was constructed as a research, development,
and demonstration project under the
provisions of paragraph C, Account 107,
Construction Work in Progress—Gas,
and due to the nature of the plant it is
desirous to operate it for a period of
time in an experimental status.
B. Amounts in this account shall be
transferred to Account 101, Gas Plant
in Service, or Account 121, Nonutility
Property, as appropriate, when the
project is no longer considered as experimental. Prior to transfer to account 101 the subject plant must be
certified by the Commission for use as
gas plant in service.
C. The depreciation on plant in this
account shall be charged to account
403, Depreciation expense, and account
403.1, Depreciation expense for asset retirement costs, as appropriate, and
credited to account 108, Accumulated
provision for depreciation of gas utility
plant. The amounts herein shall be depreciated over a period which corresponds to the estimated useful life of
the relevant project considering the
characteristics
involved.
However,
when projects are transferred to account 101, Gas plant in service, a new
depreciation rate based on the remaining service life and undepreciated
amounts, will be established.
D. Records shall be maintained with
respect to each unit of experiment so
that full details may be obtained as to
the cost, depreciation, and the experimental status.

669

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00679

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

E. Should it be determined that experimental plants recorded in this account will fail to satisfactorily perform
its function, the costs thereof shall be
accounted for as directed or authorized
by the Commission.

lpowell on DSK54DXVN1OFR with $$_JOB

104 Gas plant leased to others.
A. This account shall include the
original cost of gas plant owned by the
utility but leased to others as operating units or systems, where the lessee has exclusive possession.
B. The property included in this account shall be classified according to
the detailed accounts (301 to 399) prescribed for gas plant in service and this
account shall be maintained in such detail as though the property were used
by the owner in its utility operations.
105 Gas plant held for future use.
A. This account shall include the
original cost of gas plant (except land
and land rights) owned and held for future use in gas service under a definite
plan for such use, to include: (1) Property acquired (except land and land
rights) but never used by the utility in
gas service, but held for such service in
the future under a definite plan, and (2)
property (except land and land rights)
previously used by the utility in gas
service, but retired from such service
and held pending its reuse in the future, under a definite plan, in gas service. This includes production properties
relating to leases acquired on or before
October 7, 1969.
B. This account shall also include the
original cost of land and land rights
owned and held for future use in gas
service relating to leases acquired on
or before October 7, 1969, under a plan
for such use, to include land and land
rights: (1) Acquired but never used by
the utility in gas service, but held for
such service in the future under a plan,
and (2) previously held by the utility in
gas service, but retired from such service and held pending its reuse in the future under a plan, in gas service. (See
Gas Plant Instruction 7.)
C. In the event that property recorded in this account shall no longer
be needed or appropriate for future
utility operations, the company shall
request Commission approval of journal entries to remove such property

from this account when the gain realized from the sale or other disposition
of the property is $100,000 or more,
prior to their being recorded. Such filings shall include the description and
original cost of individual properties
removed from this account, the accounts charged upon removal, and any
associated gains realized upon disposition of such property.
D. Gains or losses from the sale of
land and land rights or other disposition of such property previously recorded in this account and not placed
in utility service shall be recorded directly in accounts 411.6 or 411.7, as appropriate, except when determined to
be significant by the Commission.
Upon such a determination, the
amounts shall be transferred to account 256, Deferred Gains from Disposition of Utility Plant, or account 187,
Deferred Losses from Disposition of
Utility Plant, and amortized to accounts 411.6, Gains from Disposition of
Utility Plant, or 411.7, Losses from Disposition of Utility Plant, as appropriate.
E. The property included in this account shall be classified according to
the detail accounts (301 to 399) prescribed for gas plant in service and the
account shall be maintained in such detail as though the property were in
service.
NOTE A: Materials and supplies, meters and
house regulators held in reserve, and normal
spare capacity of plant in service shall not
be included in this account.
NOTE B: Include in this account natural
gas wells shut in after construction which
have not been connected with the line; also,
natural gas wells which have been connected
with the line but which are shut in for any
reason except seasonal excess capacity or
governmental proration requirements or for
repairs, provided that the related production
leases were acquired on or before October 7,
1969.
NOTE C (NONMAJOR ONLY): The loss on
abandonment of natural gas leases acquired
after October 7, 1969, shall be charged to Account 338, Unsuccessful Exploration and Development Costs.

105.1 Production properties held for future use.
A. This account shall include the
cost of production properties (except
land and land rights) relating to leases
acquired on or after October 8, 1969,

670

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00680

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
held under a definite plan for future
use to insure a future supply of natural
gas for use in pipeline operations, to
include: (1) Production property (except land and land rights) acquired but
never used by the utility in gas service,
but held for such service in the future
under a definite plan, and (2) production property (except land and land
rights) previously used by the utility
in gas service, but retired from such
service and held pending its reuse in
the future, under a definite plan, in gas
service.
B. This account shall also include the
original cost of land and land rights
held under a plan for future use to insure a future supply of natural gas for
use in pipeline operations, relating to
leases acquired on or after October 8,
1969, to include land and land rights: (1)
Acquired but never used by the utility
in gas service, but held for service in
the future under a plan, and (2) previously used by the utility in gas service, but retired from such service and
held pending its reuse in the future
under a plan, in gas service. (See Gas
Plant Instruction 7.)
C. In the event that property recorded in this account shall no longer
be needed or appropriate for future
utility operations, the company shall
request Commission approval of journal entries to remove such property
from this account when the gain realized from the sale or other disposition
of the property is $100,000 or more,
prior to their being recorded. Such filings shall include the description and
original cost of individual properties
removed from this account, the accounts charged upon removal, and any
associated gains realized upon disposition of such property.
D. Gains or losses from the sale of
land and land rights or other disposition of such property previously recorded in this account and not placed
in utility service shall be recorded directly in accounts 411.6 or 411.7, as appropriate, except when determined to
be significant by the Commission.
Upon such determination, the amounts
shall be transferred to account 256, Deferred Gains from Sale of Utility Plant,
or account 187, Deferred Losses from
Sale of Utility Plant, and amortized to
accounts 411.6, Gains from Disposition

Pt. 201
of Utility Plant or 411.7, Losses from
Disposition of Utility Plant, as appropriate.
E. The property included in this account shall be classified according to
the detailed accounts prescribed for
natural gas production and gathering
plant in service and such classification
shall be maintained in the same detail
as though the property were in service.
NOTE: Unsuccessful exploration and development costs incurred on leases acquired
after October 7, 1969, shall be charged to account 338, Unsuccessful Exploration and Development Costs.

106 Completed construction not classified—Gas.
At the end of the year or such other
date as a balance sheet may be required by the Commission, this account shall include the total of the balances of work orders for gas plant
which have been completed and placed
in service but which work orders have
not been classified for transfer to the
detailed gas plant accounts.
NOTE: For the purpose of reporting to the
Commission the classification of gas plant in
service by accounts is required, the utility
shall also report the balance in this account
tentatively classified as accurately as practicable according to prescribed account classifications. The purpose of this provision is
to avoid any significant omissions in reported amounts of gas plant in service.

107 Construction work in progress—
Gas.
A. This account shall include the
total of the balances of work orders for
gas plant in process of construction.
B. Work orders shall be cleared from
this account as soon as practicable
after completion of the job. Further, if
a project, such as a gas production
plant, a compressor station, or a transmission line, is designed to consist of
two or more units which may be placed
in service at different dates, any expenditures which are common to and
which will be used in the operation of
the project as a whole shall be included
in gas plant in service upon the completion and the readiness for service of
the first unit. Any expenditures which
are identified exclusively with units of
property not yet in service shall be included in this account.

671

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00681

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

C. Expenditures on research, development, and demonstration projects for
construction of utility facilities are to
be included in a separate subdivision in
this account. Records must be maintained to show separately each project
along with complete detail of the nature and purpose of the research, development, and demonstration project together with the related costs.
NOTE A: This account shall include certificate application fees paid to the Federal Energy Regulatory Commission as provided for
in gas plant instruction 15.
NOTE B: Unsuccessful exploration and development costs incurred on leases acquired
after October 7, 1969, shall be transferred to
account 338, Unsuccessful Exploration and
Development Costs.

lpowell on DSK54DXVN1OFR with $$_JOB

108 Accumulated provision for depreciation of gas utility plant.
A. This account shall be credited
with the following:
(1) Amounts charged to account 403,
Depreciation Expense, or to clearing
accounts for current depreciation expense for gas plant in service.
(2) Amounts charged to account 403.1,
Depreciation expense for asset retirement costs, for current depreciation
expense related to asset retirement
costs in gas plant in service in a separate subaccount.
(3) Amounts charged to account 421,
Miscellaneous Nonoperating Income,
for depreciation expense on property
included in account 105, Gas Plant Held
for Future Use, or 105.1, Production
Properties Held for Future Use. Include
also, the balance of accumulated provision for depreciation on property when
transferred to account 105 or 105.1,
from other property accounts. Normally, account 108 will not be used for
current depreciation provisions because, as provided herein, the service
life during which depreciation is computed commences with the date property is includible in gas plant in service; however, if special circumstances
indicate the propriety of current accruals for depreciation, such charges shall
be made to account 421, Miscellaneous
Nonoperating Income.
(4) Amounts charged to account 413,
Expenses of Gas Plant Leased to Others, for gas plant included in account
104, Gas Plant Leased to Others.

(5) Amounts charged to account 416,
Costs and Expenses of Merchandising,
Jobbing and Contract Work, or to
clearing accounts for current depreciation expense.
(6) Amounts of depreciation applicable to gas properties acquired as operating units or systems. (See gas plant
instruction 5.)
(7) Amounts charged to account 182.1,
Extraordinary Property Losses, when
authorized by the Commission.
(8) Amounts of depreciation applicable to gas plant donated to the utility.
(The utility shall maintain separate
subaccounts for depreciation applicable
to gas plant in service, gas plant leased
to others and gas plant held for future
use.)
B. At the time of retirement of depreciable gas utility plant, this account
shall be charged with the book cost of
the property retired and the cost of removal and shall be credited with the
salvage value and any other amounts
recovered, such as insurance. When retirements, cost of removal and salvage
are entered originally in retirement
work orders, the net total of such work
orders may be included in a separate
subaccount hereunder. Upon completion of the work order, the proper distribution to subdivision of this account
shall be made as provided in the following paragraph.
C. For general ledger and balance
sheet purposes, this account shall be
regarded and treated as a single composite provision for depreciation. For
purposes of analysis, however, each
utility
shall
maintain
subsidiary
records in which this account is segregating according to the following functional classification for gas plant:
(1) Production—manufactured gas, (2)
production and gathering—natural gas,
(3) products extraction—natural gas,
(4) underground gas storage, (5) other
storage, (6) base load LNG terminaling
and processing plant, (7) transmission,
(8) distribution, and (9) general. These
subsidiary records shall reflect the current credits and debits to this account
in sufficient detail to show separately
for each such functional classification
(a) the amount of provision for depreciation, (b) the book cost of property
retired, (c) cost of removal, (d) salvage,

672

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00682

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
and (e) other items, including recoveries from insurance. Separate subsidiary records shall be maintained for
the amount of accrued cost of removal
other than legal obligations for the retirement of plant recorded in account
108, Accumulated provision for depreciation of gas utility plant.
D. When transfers of plant are made
from one gas plant account to another,
or from or to another utility department, or from or to nonutility property
accounts, the accounting for the related accumulated provision for depreciation shall be as provided in gas
plant instruction 12.
E. The utility is restricted in its use
of the provision for depreciation to the
purposes set forth above. It shall not
transfer any portion of this account to
retained earnings or make any other
use thereof without authorization by
the Commission.
109 [Reserved]

lpowell on DSK54DXVN1OFR with $$_JOB

111 Accumulated provision for amortization and depletion of gas utility
plant.
A. This account shall be credited
with the following:
(1) Amounts charged to account 404.1,
Amortization and Depletion of Producing Natural Gas Land and Land
Rights, for current amortization and
depletion of such land and land rights.
(2) Amounts charged to account 404.2,
Amortization of Underground Storage
Land and Land Rights, for current amortization.
(3) Amounts charged to account 404.3,
Amortization of Other Limited-Term
Gas Plant, for the current amortization of limited-term gas plant.
(4) Amounts charged to account 421,
Miscellaneous Nonoperating Income,
for amortization expense on property
included in account 105, Gas Plant Held
for Future Use, or 105.1, Production
Properties Held for Future Use. Include
also, the balance of accumulated provision for amortization on property when
transferred to account 105 or 105.1 from
other property accounts.
NOTE: See also paragraph A(2), of account
108, Accumulated Provision for Depreciation
of Gas Utility Plant.

(5) Amounts charged to account 405,
Amortization of Other Gas Plant.

Pt. 201
(6) Amounts charged to account 413,
Expenses of Gas Plant Leased to Others, for current amortization thereof.
(7) Amounts charged to account 797,
Abandoned Leases, to provide for the
abandonment of nonproductive natural
gas leases.
(8) Amounts charged to account 425,
Miscellaneous Amortization, for the
amortization of intangible or other gas
plant which does not have a definite or
terminable life and is not subject to
charges for depreciation expense, with
Commission approval.
(The utility shall maintain subaccounts of this account for the amortization applicable to producing natural gas land and land rights, other gas
plant in service, gas plant leased to
others, abandonment of leases and gas
plant held for future use.)
B. When any property to which this
account applies is sold, relinquished, or
otherwise retired from service, this account shall be charged with the
amount previously credited in respect
to such property. The book cost of the
property so retired less the amount
chargeable to this account and less the
net proceeds realized at retirement
shall be included in account 421.1, Gain
on Disposition of Property, or account
421.2, Loss on Disposition of Property,
as appropriate.
C. For general ledger and balance
sheet purposes, this account shall be
regarded and treated as a single composite provision for amortization.
For purposes of analysis, however, each
utility
shall
maintain
subsidiary
records in which this account is segregating according to the following functional classification for gas plant:
(1) Production—manufactured gas, (2)
production and gathering—natural gas,
(3) products extraction—natural gas,
(4) underground gas storage, (5) other
storage, (6) base load LNG terminaling
and processing plant, (7) transmission,
(8) distribution, and (9) general. These
subsidiary records shall reflect the current credits and debits to this account
in sufficient detail to show separately
for each such functional classification
(a) the amount of provision for amortization, (b) the book cost of property retired, (c) cost of removal, (d) salvage,
and (e) other items, including recoveries from insurance. Records shall be

673

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00683

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

maintained so as to show separately
the balance applicable to each item of
land and land rights which is being amortized or depleted except that natural
gas land and land rights which comprise an interest in a production area
may be grouped to form a unit for amortization and depletion and the accumulated provision applicable thereto
need not be segregated to show the
amount related to each gas right included therein. Records shall also be
maintained so as to show separately
the balance applicable to each underground gas storage project.
D. The utility is restricted in its use
of the accumulated provision for amortization to the purposes set forth
above. It shall not transfer any portion
of this account to retained earnings or
make any other use thereof without
authorization by the Commission.

utility wish to account for debit
amounts in this account in any other
manner, it shall petition the Commission for authority to do so. Credit
amounts recorded in this account shall
be accounted for as directed by the
Commission.

112–113 [Reserved]

116 Other gas plant adjustments.
A. This account shall include the difference between the original cost, estimated if not known, and the book cost
of gas plant to the extent that such difference is not properly includible in account 114 Gas Plant Acquisition Adjustments. (See gas plant instruction
1C.)
B. Amounts included in this account
shall be classified in such manner as to
show the origin of each amount and
shall be disposed of as the Commission
may approve or direct.

lpowell on DSK54DXVN1OFR with $$_JOB

114 Gas plant acquisition adjustments.
A. This account shall include the difference between (a) the cost to the accounting utility of gas plant acquired
as an operating unit or system by purchase, merger, consolidation, liquidation, or otherwise, and (b) the original
cost, estimated, if not known, of such
property, less the amount or amounts
credited by the accounting utility at
the time of acquisition to accumulated
provisions for depreciation, depletion,
and amortization and contributions in
aid of construction with respect to
such property.
B. With respect to acquisitions after
the effective date of this system of accounts, this account shall be subdivided so as to show the amounts included herein for each property acquisition and to gas plant in service, gas
plant held for future use and gas plant
leased to others. (See gas plant instruction 5.)
C. Debit amounts recorded in this account related to plant and land acquisition may be amortized to account 425,
Miscellaneous Amortization, over a period not longer than the estimated remaining life of the properties to which
such amounts relate. Amounts related
to the acquisition of land only may be
amortized to account 425 over a period
of not more than 15 years. Should a

115 Accumulated provision for amortization of gas plant acquisition adjustments.
This account shall be credited or debited with amounts which are includible
in account 406, Amortization of Gas
Plant Acquisition Adjustments or account 425, Miscellaneous Amortization,
for the purpose of providing for the extinguishment of amounts in account
114, Gas Plant Acquisition Adjustments, in instances where the amortization of account 114 is not being made
by direct write-off of the account.

NOTE: The provisions of this account shall
not be construed as approving or authorizing
the recording of appreciation of gas plant.

Special Instructions to Accounts 117.1,
117.2 and 117.3
The investment in and use of system
gas included in Account 117.1, Gas
Stored—Base Gas, and Account 117.2,
System Balancing Gas, may be accounted for using either the ‘‘fixed
asset’’ method or an ‘‘inventory’’
method as set forth below. The cost of
stored gas included in Account 117.3
must be accounted for using an inventory method.
(a) Inventory Method—Gas stored during the year must be priced at cost according to generally accepted methods
of cost determination consistently applied from year to year. Transmission

674

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00684

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

lpowell on DSK54DXVN1OFR with $$_JOB

expenses for facilities of the utility
used in moving the gas to the storage
area and expenses of storage facilities
cannot be included in the inventory of
gas except as may be authorized or directed by the Commission.
Withdrawals of gas must be priced
using the first-in-first-out, last-infirst-out, or weighted average cost
method, provided the method adopted
by the utility is used consistently from
year to year and appropriate inventory
records are maintained. Approval of
the Commission must be obtained for
any other pricing method, or change in
the pricing method adopted by the utility.
Adjustments for inventory losses related to gas held in underground reservoirs due to cumulative inaccuracies
of gas measurements, or from other
causes, must be charged to Account
823, Gas Losses. Losses of system gas
not associated with underground reservoirs must be charged to Account
813, Other Gas Supply Expenses.
(b) Fixed Asset Method—When replacement of the gas is made, the amount
carried in Account 117.4 for such volumes must be cleared with a contra
entry to Account 808.2, Gas Delivered
to Storage—Credit. Any difference between the utility’s cost of replacement
gas volumes and the amount cleared
from Account 117.4 must be recognized
as a gain in Account 495, Other gas revenues, or as a loss in Account 813,
Other gas supply expenses, with contra
entries to Account 808.2.
Adjustments for inventory losses related to gas held in underground reservoirs due to cumulative inaccuracies
of gas measurements, or from other
causes, must be charged to Account
823, Gas Losses. Losses of system gas
not associated with underground reservoirs must be charged to Account
813, Other Gas Supply Expenses. Gas
losses must be priced at the market
price of gas available to the utility in
the month the loss is recognized.
Gas owned by the utility and injected
into its system will be deemed to satisfy any encroachment on system gas
first before any other use.
117.1 Gas stored-base gas.
This account is to include the cost of
recoverable gas volumes that are nec-

Pt. 201
essary, in addition to those volumes for
which cost are properly includable in
Account 101, Gas plant in service, to
maintain pressure and deliverability
requirements for each storage facility.
Nonrecoverable gas volumes used for
this purpose are to be recorded in Account 352.3, Nonrecoverable natural
gas. For utilities using the fixed asset
method of accounting, the cost of base
gas applicable to each gas storage facility shall not be changed from the
amount initially recorded except to reflect changes in volumes designated as
base gas. If an inventory method is
used to account for gas included herein, the utility may, at its election,
price withdrawals in accordance with
the instructions to Account 117.4.
117.2 System balancing gas.
This account is to be used to record
the cost of system gas designated as
available for transmission load balancing (including no-notice transportation) and other uses associated with
maintaining efficient transmission operations other than gas properly recordable in Account 117.1 or the plant
accounts. Detailed records must be
kept separately identifying volumes
and unit prices of system gas held in
underground storage facilities and held
in pipelines.
For utilities using fixed asset accounting, the cost initially recorded
herein cannot be changed except for adjustments to volumes designated as
system gas. Encroachments upon system gas must be accounted for in accordance with the instructions to Account 117.4, Gas owed to system gas.
117.3 Gas stored in reservoirs and pipelines—noncurrent.
This account is to include the cost of
stored gas owned by the utility and
available for sale or other purposes.
Gas included in this account must be
accounted for using an inventory method in accordance with the Special Instructions to Accounts 117.1, 117.2, and
117.3 above.
117.4 Gas owed to system gas.
This account is to be used to record
encroachments of system gas under the
fixed asset method. This account may
also be used to record encroachments

675

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00685

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

of base gas for utilities electing to use
an inventory method of accounting for
system gas. Utilities may revalve cumulative net imbalances, net all transactions, and record one monthly entry
with one month-end price for valuation
purposes.
118 Other utility plant.
This account shall include the balance in accounts for utility plant,
other than gas plant, such as electric,
railway, etc.

lpowell on DSK54DXVN1OFR with $$_JOB

119 Accumulated provision for depreciation and amortization of other
utility plant.
This account shall include the accumulated provision for depreciation and
amortization applicable to utility
property other than gas plant.
121 Nonutility property.
A. This account shall include the
book cost of land, structures, equipment or other tangible or intangible
property owned by the utility, but not
used in utility service and not properly
includible in account 105, Gas Plant
Held for Future Use. This account shall
also
include,
where
applicable,
amounts recorded for asset retirement
costs associated with nonutility plant.
B. This account shall also include the
amount recorded under capital leases
for property leased from others and
used by the utility in its nonutility operations. Records shall be maintained
with respect to each lease reflecting:
(1) name of lessor, (2) basic details of
lease, (3) terminal date, (4) original
cost or fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7) present
value of minimum lease payments, (8)
the amount representing interest and
the interest rate used, and (9) expenses
paid.
C. This account shall be subdivided
so as to show the amount of property
used in operations which are nonutility
in character but nevertheless constitute a distinct operating activity of
the company (such as operation of an
ice department where such activity is
not classed as a utility) and the
amount of miscellaneous property not
used in operations. The records in support of each subaccount shall be main-

tained so as to show an appropriate
classification of the property.
NOTE: In the event of the subsequent sale
or other disposition of property included in
this account which had been previously recorded in account 105, Gas Plant Held for Future Use, or account 105.1, Production Properties Held for Future Use, such property
costs shall be accounted for in accordance
with paragraph C of accounts 105 and 105.1,
respectively.

122 Accumulated provision for depreciation and amortization of nonutility property.
This account shall include the accumulated provision for depreciation and
amortization applicable to nonutility
property.
123 Investment in associated companies.
A. This account shall include the
book cost of investments in securities
issued or assumed by associated companies and investment advances to
such companies, including interest accrued thereon when such interest is not
subject to current settlement, provided
that the investment does not relate to
a subsidiary company. (If the investment relates to a subsidiary company
it shall be included in account entry to
the recording of amortization of discount or premium on interest bearing
investments. Include herein the offsetting 123.1, Investment in Subsidiary
Companies.) (See account 419, Interest
and Dividend Income.)
B. This account shall be maintained
in such manner as to show the investment in securities of, and advances to,
each associated company together with
full particulars regarding any of such
investments that are pledged.
NOTE A: Securities and advances of associated companies owned and pledged shall be
included in this account, but such securities,
if held in special deposits or in special funds,
shall be included in the appropriate deposit
or fund account. A complete record of securities pledged shall be maintained.
NOTE B: Securities of associated companies
held as temporary cash investments are includible in account 136, Temporary Cash Investments.
NOTE C: Balances in open accounts with associated companies, which are subject to
current settlement, are includible in account
146, Accounts Receivable from Associated
Companies.

676

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00686

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
NOTE D: The utility may write down the
cost of any security in recognition of a decline in the value thereof. Securities shall be
written off or written down to a nominal
value if there be no reasonable prospect of
substantial value. Fluctuations in market
value shall not be recorded but a permanent
impairment in the value of securities shall
be recognized in the accounts. When securities are written off or written down, the
amount of the adjustment shall be charged
to account 426.5, Other Deductions, or to an
appropriate account for accumulated provisions for loss in value established as a separate subdivision of this account.

lpowell on DSK54DXVN1OFR with $$_JOB

123.1 Investment in subsidiary companies.
A. This account shall include the
cost of investments in securities issued
or assumed by subsidiary companies
and investment advances to such companies, including interest accrued
thereon when such interest is not subject to current settlement plus the equity in undistributed earnings or losses
of such subsidiary companies since acquisition. This account shall be credited with any dividends declared by
such subsidiaries.
B. This account shall be maintained
in such a manner as to show separately
for each subsidiary: The cost of such
investments in the securities of the
subsidiary at the time of acquisition;
the amount of equity in the subsidiary’s undistributed net earnings or net
losses since acquisition; advances or
loans to such subsidiary; and full particulars regarding any such investments that are pledged.
124 Other investments.
A. This account shall include the
book cost of investments in securities
issued or assumed by nonassociated
companies, investment advances to
such companies, and any investments
not accounted for elsewhere. This account shall also include unrealized
holding gains and losses on trading and
available-for-sale types of security investments. Include also the offsetting
entry to the recording of amortization
of discount or premium on interest
bearing investments. (See account 419,
interest and dividend income.)
B. The cost of capital stock of the
utility reacquired by it under a definite
plan for resale pursuant to authorization by the Board of Directors may, if

Pt. 201
permitted by statutes, be included in a
separate subdivision of this account.
(See also account 210, Gain on Resale
or Cancellation of Reacquired Capital
Stock, and account 217, Reacquired
Capital Stock.)
C. The records shall be maintained in
such manner as to show the amount of
each investment and the investment
advances to each person.
NOTE A: Securities owned and pledged shall
be included in this account, but securities
held in special deposits or in special funds
shall be included in appropriate deposit or
fund accounts. A complete record of securities pledged shall be maintained.
NOTE B: Securities held as temporary cash
investments shall not be included in this account.
NOTE C: See Note D of account 123.

125 Sinking funds.
This account shall include the
amount of cash and book cost of investments held in sinking funds. This
account shall also include unrealized
holding gains and losses on trading and
available-for-sale types of security investments. A separate account, with
appropriate title, shall be kept for each
sinking fund. Transfers from this account to special deposit accounts may
be made as necessary for the purpose of
paying matured sinking-fund obligations, or obligations called for redemption but not presented, or the interest
thereon.
126 Depreciation fund.
This account shall include the
amount of cash and book cost of investments which have been segregated
in a special fund for the purpose of
identifying such assets with the accumulated provisions for depreciation.
This account shall also include unrealized holding gains and losses on trading
and available-for-sale types of security
investments.
128 Other special funds.
This account shall include the
amount of cash and book cost of investments which have been segregated
in special funds for insurance, employee pensions, savings, relief, hospital, and other purposes not provided
for elsewhere. This account shall also
include unrealized holding gains and

677

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00687

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

losses on trading and available-for-sale
types of security investments. A separate account with appropriate title,
shall be kept for each fund.

held until invested in property of the
utility, etc. Entries to this account
shall specify the purpose for which the
deposit is made.

NOTE: Amounts deposited with a trustee
under the terms of an irrevocable trust
agreement for pensions or other employee
benefits shall not be included in this account.

NOTE: Assets available for general corporate purposes shall not be included in this
account. Further, deposits for more than one
year, which are not offset by current liabilities, shall not be charged to this account
but to account 128, Other Special Funds.

SPECIAL INSTRUCTIONS FOR CURRENT AND
ACCRUED ASSETS

135 Working funds.

Current and accrued assets are cash, those
assets which are readily convertible into
cash or are held for current use in operations
or construction, current claims against others, payment of which is reasonably assured,
and amounts accruing to the utility which
are subject to current settlement, except
such items for which accounts other than
those designated as current and accrued assets are provided. There shall not be included
in the group of accounts designated as current and accrued assets any item, the
amount or collectibility of which is not reasonably assured, unless an adequate provision for possible loss has been made therefor.
Items of current character but of doubtful
value may be written down and for record
purposes carried in these accounts at nominal value.

131 Cash.
This account shall include the
amount of current cash funds except
working funds.
132 Interest special deposits.
This account shall include special deposits with fiscal agents or others for
the payment of interest.

lpowell on DSK54DXVN1OFR with $$_JOB

133 Dividend special deposits.
This account shall include special deposits with fiscal agents or others for
the payment of dividends.
134 Other special deposits.
This account shall include deposits
with fiscal agents or others for special
purposes other than the payment of interest and dividends. Such special deposits may include cash deposited with
federal, state, or municipal authorities
as a guaranty for the fulfillment of obligations; cash deposited with trustees
to be held until mortgaged property
sold, destroyed, or otherwise disposed
of is replaced; cash realized from the
sale of the accounting utility’s securities and deposited with trustees to be

This account shall include cash advanced to officers, agents, employees,
and others as petty cash or working
funds.
136 Temporary cash investments.
A. This account shall include the
book cost of investments, such as demand and time loans, bankers’ acceptances, United States Treasury certificates, marketable securities, and other
similar investments, acquired for the
purpose of temporarily investing cash.
B. This account shall be so maintained as to show separately temporary
cash investments in securities of associated companies and of others.
Records shall be kept of any pledged
investments.
141 Notes receivable.
This account shall include the book
cost, not includible elsewhere, of all
collectible obligations in the form of
notes receivable and similar evidences
(except interest coupons) of money due
on demand or within one year from the
date of issue, except, however, notes receivable from associated companies.
(See account 136, Temporary Cash Investments, and account 145, Notes Receivable from Associated Companies.)
NOTE: The face amount of notes receivable
discounted, sold, or transferred without releasing the utility from liability as endorser
thereon, shall be credited to a separate subdivision of this account and appropriate disclosure shall be made in financial statements of any contingent liability arising
from such transactions.

142 Customer accounts receivable.
A. This account shall include
amounts due from customers for utility service, and for merchandising, jobbing, and contract work. This account

678

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00688

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
shall not include amounts due from associated companies.
B. This account shall be maintained
so as to permit ready segregation of
the amounts due for merchandising,
jobbing, and contract work.
143 Other accounts receivable.
A. This account shall include
amounts due the utility upon open accounts, other than amounts due from
associated companies and from customers for utility services and merchandising, jobbing, and contract
work.
B. This account shall be maintained
so as to show separately amounts due
on subscriptions to capital stock and
from officers and employees, but the
account shall not include amounts advanced to officers or others as working
funds. (See account 135, Working
Funds.)
144

Accumulated
provision
uncollectible accounts—Cr.

for

A. This account shall be credited
with amounts provided for losses on accounts receivable which may become
uncollectible, and also with collections
on accounts previously charged hereto.
Concurrent charges shall be made to
account 904, Uncollectible Accounts,
for amounts applicable to utility operations, and to corresponding accounts
for other operations. Records shall be
maintained so as to show the write-offs
of accounts receivable for each utility
department.
B. This account shall be subdivided
to show the provision applicable to the
following classes of accounts receivable:

lpowell on DSK54DXVN1OFR with $$_JOB

Utility Customers.
Merchandising, Jobbing and Contract Work.
Officers and Employees.
Others.
NOTE A: Accretions to this account shall
not be made in excess of a reasonable provision against losses of the character provided
for.
NOTE B: If provisions for uncollectible
notes receivable or for uncollectible receivables from associated companies are necessary, separate subaccounts therefor shall
be established under the account in which
the receivable is carried.

Pt. 201
145 Notes receivable from associated
companies.
146 Accounts receivable from associated companies.
A. These accounts shall include notes
and drafts upon which associated companies are liable, and which mature
and are expected to be paid in full not
later than one year from date of issue,
together with any interest thereon,
and debit balances subject to current
settlement in open accounts with associated companies. Items which do not
bear a specified due date but which
have been carried for more than twelve
months and items which are not paid
within twelve months from due date
shall be transferred to account 123, Investment in Associated Companies.
B. A natural gas company participating in a cash management program
must maintain supporting documentation for all deposits into, borrowings
from, interest income from, and interest expense to such program. Cash
management programs include all
agreements in which funds in excess of
the daily needs of the natural gas company along with the excess funds of the
natural gas company’s parent, affiliated and subsidiary companies are concentrated, consolidated, or otherwise
made available for use by other entities within the corporate group. The
written documentation must include
the following information:
(1) For deposits with and withdrawals
from the cash management program:
the date of the deposit or withdrawal,
the amount of the deposit or withdrawal, and the maturity date, if any,
of the deposit;
(2) For borrowings from a cash management program: the date of the borrowing, the amount of the borrowing,
and the maturity date, if any, of the
borrowing;
(3) The security, if any, provided by
the cash management program for repayment of deposits into the cash management program and the security required, if any, by the cash management
program in support of borrowings from
the program; and
(4) The monthly balance of the cash
management program.
C. The natural gas company must
maintain current and up-to-date copies

679

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00689

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

of the documents authorizing the establishment of the cash management
program including the following:
(1) The duties and responsibilities of
the administrator and the natural gas
companies in the cash management
program;
(2) The restrictions on deposits or
borrowings by natural gas companies
in the cash management program;
(3) The interest rate, including the
method used to determine the interest
earning rates and interest borrowing
rates for deposits into and borrowings
from the program; and
(4) The method used to allocate interest income and expenses among natural
gas companies in the program.
NOTE A: On the balance sheet, accounts receivable from an associated company may be
set off against accounts payable to the same
company.
NOTE B: The face amount of notes receivable discounted, sold or transferred without
releasing the utility from liability as endorser thereon, shall be credited to a separate subdivision of this account and appropriate disclosure shall be made in financial
statements of any contingent liability arising from such transactions.

151 Fuel stock.
This account shall include the book
cost of fuel on hand.
ITEMS
1. Invoice price of fuel less any cash or
other discounts.
2. Freight, switching, demurrage and other
transportation charges, not including, however, any charges for unloading from the
shipping medium.
3. Excise taxes, purchasing agents’ commissions, insurance and other expenses directly assignable to cost of fuel.

lpowell on DSK54DXVN1OFR with $$_JOB

152 Fuel stock expenses undistributed.
A. This account may include the cost
of labor and of supplies used and expenses incurred in unloading fuel from
the shipping medium and in the handling thereof prior to its use, if such
expenses are sufficiently significant in
amount to warrant being treated as a
part of the cost of fuel inventory rather than being charged direct to expense
as incurred.
B. Amounts included herein shall be
charged to expense as the fuel is used
to the end that the balance herein,

shall not exceed the expenses attributable to the inventory of fuel on hand.
ITEMS
Labor:
1. Procuring and handling of fuel.
2. All routine fuel analyses.
3. Unloading from shipping facility and
putting in storage.
4. Moving of fuel in storage and transferring from one station to another.
5. Handling from storage or shipping facility to first bunker, hopper, bucket, tank or
holder of boiler house structure.
6. Operation of mechanical equipment,
such as locomotives, trucks, cars, boats,
barges, cranes, etc.
Supplies and Expenses:
7. Tools, lubricants and other supplies.
8. Operating supplies for mechanical equipment.
9. Transportation and other expenses in
moving fuel.
10. Stores expenses applicable to fuel.

153 Residuals and extracted products.
This account shall include the book
cost of residuals or extracted products
produced in the manufacture of gas or
in natural gas products extraction operations including like products purchased for resale.
154 Plant materials and operating supplies.
A. This account shall include the
cost of materials purchased primarily
for use in the utility business for construction, operation and maintenance
purposes. This account shall include
also the book cost of materials recovered in connection with construction,
maintenance or the retirement of property, such materials being credited to
construction, maintenance or accumulated depreciation provision, respectively, and included herein as follows:
(1) Reusable materials consisting of
large individual items shall be included
in this account at original cost, estimated if not known. The cost of repairing such items shall be charged to the
maintenance account appropriate for
the previous use.
(2) Reusable materials consisting of
relatively small items, the identity of
which (from the date of original installation to the final abandonment or sale
thereof) cannot be ascertained without
undue refinement in accounting, shall
be included in this account at current

680

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00690

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
prices new for such items. The cost of
repairing such items shall be charged
to the appropriate expense account as
indicated by previous use.
(3) Scrap and nonusable materials included in this account shall be carried
at the estimated net amount realizable
therefrom. The difference between the
amounts realized for scrap and nonusable materials sold and the net
amount at which the materials were
carried in this account, as far as practicable, shall be adjusted to the accounts credited when the materials
were charged to this account.
B. Materials and supplies issued shall
be credited hereto and charged to the
appropriate construction, operating expense, or other account on the basis of
a unit price determined by the use of
cumulative average, first-in-first out,
or such other method of inventory accounting as conforms with accepted accounting standards consistently applied.
ITEMS
1. Invoice price of materials less cash or
other discounts.
2. Freight, switching or other transportation charges when practicable to include
as part of the cost of particular materials to
which they relate.
3. Customs duties and excise taxes.
4. Costs of inspection and special tests
prior to acceptance.
5. Insurance and other directly assignable
charges.
NOTE: Where expenses applicable to materials purchased cannot be directly assigned
to particular purchases, they shall be
charged to account 163, Stores expenses Undistributed.

lpowell on DSK54DXVN1OFR with $$_JOB

155 Merchandise.
This account shall include the book
cost of materials and supplies, and appliances and equipment held primarily
for merchandising, jobbing, and contract work. The principles prescribed
in accounting for utility materials and
supplies shall be observed in respect to
items carried in this account.
156 Other materials and supplies.
This account shall include the book
cost of materials and supplies held primarily for nonutility purposes. The
principles prescribed in accounting for
utility materials and supplies shall be

Pt. 201
observed in respect to items carried in
this account.
163 Stores expense undistributed.
A. This account shall include the
cost of supervision, labor and expenses
incurred in the operation of general
storerooms, including purchasing, storage, handling and distribution of materials and supplies.
B. This account shall be cleared by
adding to the cost of materials and
supplies issued a suitable loading
charge which will distribute the expense equitably over stores issues. The
balance in the account at the close of
the year shall not exceed the amount
of stores expenses reasonably attributable to the inventory of materials
and supplies exclusive of fuel, as any
amount applicable to fuel cost should
be included in account 152, Fuel Stock
Expenses Undistributed.
ITEMS
Labor:
1. Inspecting and testing materials and
supplies when not assignable to specific
items.
2. Unloading from shipping facility and
putting in storage.
3. Supervision of purchasing and stores department to extent assignable to materials
handled through stores.
4. Getting materials from stock and in
readiness to go out.
5. Inventorying stock received or stock on
hand by stores employees but not including
inventories by general department employees as part of internal or general audits.
6. Purchasing department activities in
checking material needs, investigating
sources of supply, analyzing prices, preparing and placing orders, and related activities to extent applicable to materials handled through stores. (Optional. Purchasing
department expenses may be included in administrative and general expenses.)
7. Maintaining stores equipment.
8. Cleaning and tidying storerooms and
stores offices.
9. Keeping stock records, including recording and posting of material receipts and
issues and maintaining inventory record of
stock.
10. Collecting and handling scrap materials
in stores.
Supplies and Expenses:
11. Adjustments of inventories of materials
and supplies but not including large differences which can readily be assigned to important classes of materials and equitably
distributed among the accounts to which

681

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00691

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

such classes of materials have been charged
since the previous inventory.
12. Cash and other discounts not practically assignable to specific materials.
13. Freight, express, etc., when not assignable to specific items.
14. Heat, light and power for storerooms
and store offices.
15. Brooms, brushes, sweeping compounds
and other supplies used in cleaning and
tidying storerooms and stores offices.
16. Injuries and damages.
17. Insurance on materials and supplies and
on stores equipment.
18. Losses due to breakage, leakage, evaporation, fire or other causes, less credits for
amounts received from insurance, transportation companies or others in compensation
of such losses.
19. Postage, printing, stationery and office
supplies.
20. Rent of storage space and facilities.
21. Communication service.
22. Excise and other similar taxes not assignable to specific materials.
23. Transportation expense on inward
movement of stores and on transfer between
storerooms but not including charges on materials recovered from retirements which
shall be accounted for as part of cost of removal.
NOTE: A physical inventory of each class of
materials and supplies shall be made at least
every two years.

164.1 Gas stored—current.

lpowell on DSK54DXVN1OFR with $$_JOB

This account shall be debited with
such amounts as are credited to Account 117.2, System balancing gas, (for
utilities using an inventory method of
accounting for system gas) and Account 117.3, Gas Stored in Reservoirs
and Pipelines-Noncurrent, to reflect
classification for balance sheet purposes of such portion of the inventory
of gas stored as represents a current
asset according to conventional rules
for classification of current assets.
NOTE: It shall not be considered conformity to conventional rules of current
asset classification if the amount included in
this account exceeds an amount equal to the
cost of estimated withdrawals of gas from
storage within the 24-month period from
date of the balance sheet, or if the amount
represents a volume of gas which, in fact,
could not be withdrawn from storage without impairing pressure levels needed for normal operating purposes.

164.2 Liquefied natural gas stored.
A. This account shall include the
cost of liquefied natural gas stored in
above or below ground facilities.
B. Natural gas purchased in a liquefied form shall be priced at the cost of
such gas to the utility. Natural gas liquefied by the utility shall be priced according to generally accepted methods
of cost determination consistently applied from year to year. Transmission
expenses for facilities to the utility
used in moving the gas to the storage
facilities shall not be included in the
inventory of gas except as may be authorized by the Commission.
C. Amounts debited to this account
for natural gas placed in stored shall be
credited to account 808.2, Gas Delivered
to Storage—Credit. Amounts credited
to this account for gas withdrawn from
storage shall be debited to account
808.1, Gas Withdrawn from Storage—
Debit.
D. Withdrawals of gas may be priced
according to the first-in-first-out, lastin-first-out, or weighted average cost
method provided the method adopted
by the utility is used consistently from
year to year and inventory records are
maintained in accordance therewith.
Commission approval must be obtained
for any other pricing method or for any
change in the pricing method adopted
by the utility. Separate records shall
be maintained for each storage project
of the Dth of gas delivered to storage
and remaining in storage.
E. Adjustments for inventory losses
shall be charged to account 842.3, Gas
Losses.
164.3 Liquefied natural gas held for
processing.
A. This account shall include the
cost of base load liquefied natural gas
available for vaporization and injection
into the utility’s natural gas system.
B. Natural gas purchased in a liquefied form shall be priced at the cost of
such gas to the utility.
C. Amounts debited to this account
for liquefied natural gas purchased for
processing shall be credited to account
809.2, Deliveries of Natural Gas for
Processing—Credit. Amounts credited
for liquefied natural gas processed

682

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00692

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
shall be debited to account 809.1, Withdrawals of Liquefied Natural Gas Held
for Processing—Debit.
D. Withdrawals of gas held for vaporization may be priced according to the
first-in-first-out, last-in-first-out or
weighted average cost method provided
the method adopted by the utility is
used consistently from year to year
and inventory records are maintained
in accordance therewith. Commission
approval must be obtained for any
other pricing method or for any change
from the pricing method adopted by
the utility. Separate records shall be
maintained for Dth of gas purchased
for processing, processed, and remaining for processing.
E. Adjustments for inventory losses
shall be charged to account 846.1, Gas
Losses.

lpowell on DSK54DXVN1OFR with $$_JOB

165 Prepayments.
A. This account shall include payments for undelivered gas and other
prepayments of rents, taxes, insurance,
interest, and like disbursements made
prior to the period to which they apply.
Prepayments for gas are those amounts
paid to a seller of gas under ‘‘take or
pay’’ provisions of a gas purchase contract for a sale certificated by the
Commission where future makeup of
the gas not taken in the current period
is provided for by the contract.
B. As the periods covered by such
prepayments expire, credit this account and charge the proper operating
expense or other appropriate account
with the amount applicable to the period.
C. This account shall be kept or supported in such a manner as to disclose
the amount of each class of prepayments.
166 Advances for gas exploration, development and production.
A. This account shall include all advances made for gas (whether called
‘‘advances,’’ ‘‘contributions’’ or otherwise) to independent producers, affiliated or associated companies, or others
operating within the lower 48 states
and Alaska; for exploration, development or production (but not to include
lease acquisition) of natural gas. Under
each agreement with payee, such payments must be made prior to initial

Pt. 201
gas deliveries, or if the agreement provides for advances on a well by well
basis, each incremental payment must
be made prior to deliveries from an incremental well, or prior to Federal and/
or State authorization, as appropriate.
All agreements executed after June 17,
1975, (issuance date of Order No. 529)
shall specify that (1) the pipeline shall
have first call on any gas produced, attributable to the advance payment,
under a long-term contract which is for
a minimum initial term computed as
the lesser of fifteen years or the life of
the reserve in the field, and (2) the selling price of the gas committed by producers whose sales are subject to price
regulation shall be governed by and
limited to the area rate or national
rate or, under appropriate showing of
special circumstance, such other rate
as may be authorized by the Commission under the provisions of optional
pricing and special relief. As a determination of the initial rate, the time of
first delivery in interstate commerce
to the purchaser shall govern. Non-current advances not to be repaid within a
two-year period shall be reclassified
and transferred to account 124, Other
Investments, for balance sheet purposes. This transfer is for reporting
purposes only and has no effect on accounting and ratemaking.
B. When a pipeline obtains a working
interest as a result of funds advanced
to producers, such amounts shall be included in appropriate production accounts for formal contractual agreements executed prior to the date of
issuance of Order No. 499. When an associated company obtains a working
interest as a result of funds advanced
from a pipeline company, the pipeline
shall include such amounts in Account
123, Investment in Associated Companies, or Account 146, Accounts receivable from Associated Companies, as appropriate, for formal contractual commitments made during the period on or
after November 10, 1971 (effective date
of Order 441) but prior to December 29,
1972, the date of issuance of Order No.
465.
C. Outstanding advances shall be
fully reduced within 5 years, or as otherwise authorized by the Commission,
from the date gas deliveries commence

683

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00693

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

or the date it is determined that recovery will be in other than gas. This account shall be credited with advances
not fully recovered within the five-year
period, and the unrecovered portion
charged directly to Account 426.5,
Other Deductions. A sufficient portion
of all gas taken should be credited to
the related outstanding advance so as
to eliminate the advance within the 5year period or as otherwise authorized
by the Commission upon request by the
pipeline company. The reduction of the
outstanding advance should not be dependent on a buyer purchasing more
than 100 percent of the minimum take
or pay quantity provided in the contract. In those instances where the
five-year recovery period has lapsed,
but recovery of the advance continues
beyond the five-year period, the unrecovered advances shall be removed
from this account and transferred to
Account 167, Other Advances for Gas.
D. Where recovery is by gas, the recovered advance shall be credited to
this account and charged to the appropriate gas purchase account.
E. When an advance which is or has
been included in this account and in
rate base results in a source of proven
reserves of natural gas, gas deliveries
commence but no gas flows to the pipeline company making such advance,
the amount of the advance shall be removed from this account (and from
rate base) and recorded in account 167,
Other Advances for Gas. Any revenues
collected as a result of the advance
being included in rate base shall be refunded by the pipeline company to its
customers, together with interest, per
annum, at the rate established by
Order No. 513, issued October 10, 1974,
or as subsequently revised by Commission Order, from the date of payment
until refunded, within 12 months after
the removal of the advance from this
account, unless otherwise directed by
the Commission. Where there is partial
recovery of the advance by gas, in this
situation, the amount of the advance
transferred from this account to account 167 and the amount of revenues
refunded, with interest, shall be appropriately apportioned.
F. However, if 5 years elapses from
the time the advance has been included
in this account and during such time

no gas deliveries have commenced or
no determination has been made that
the recovery will be in economic consideration other than gas, the pipeline
shall at the end of the 5–year period,
transfer the advance from this account
to Account 167, and cease rate base
treatment thereof, unless otherwise directed by the Commission.
G. Whenever as a result of an advance included in this account, a pipeline receives any amount in excess of a
full recovery of the advance, e.g. interest income, such amount must be credited to Account 813, Other Gas Supply
Expenses, or as otherwise directed by
the Commission. If the income or return is received in other than money,
it shall be included at the market
value of the assets received.
H. If the recipient of an advance is
unable to repay it in full, through no
fault of the pipeline or contractual provisions, in gas or other assets, the unpaid or nonrecoverable portion must be
credited to this account at the time
such amount is recognized as nonrecoverable. Nonrecoverable advances
significant in amount must be eliminated within 5 years from the date of
determination as nonrecoverable by either a charge to account 435, Extraordinary Deductions, or when authorized
by the Commission, by a transfer to account 186, Miscellaneous Deferred Debits, and amortization to account 813,
Other Gas Supply Expenses. Nonrecoverable advances insignificant in
amount should be charged directly to
account 813 in the year recognized as
nonrecoverable, when authorized by
the Commission.
I. No transfers shall be made to or
from this account to any other accounts, unless otherwise provided herein, except as specifically authorized by
the Commission upon request by the
pipeline company.
J. Three copies of any agreement
concerning advances will be filed with
the Secretary within 30 days of the initial related entry in account 166.
NOTE A: This account may include advances for exploration (including lease acquisition costs) made according to the provisions of Order Nos. 410 and 410–A, for which
a contractual commitment was made prior
to November 10, 1971, (issue date of Order No.
441). All advances made pursuant to contractual commitments made prior to November

684

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00694

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
10, 1971, (issue date of Order No. 441) shall be
subject to the provisions of Order Nos. 410
and 410–A.
NOTE B: This account shall not include advances for exploration (including lease acquisition costs) in accordance with Order No.
441, for which a contractual commitment
was made on or after November 10, 1971
(issue date of Order No. 441), but prior to December 29, 1972 (issue date of Order No. 465).
All advances made pursuant to contractual
commitments made on or after November 10,
1971, but prior to December 29, 1972 (issue
date of Order No. 465) shall be subject to the
provisions of Order No. 441.
NOTE C: This account shall not include advances for lease acquisition costs but may
include advances for exploration where such
advances are pursuant to contractual commitments made on or after December 29, 1972
(issue date of Order No. 465).
NOTE D: All advances made pursuant to
contractual commitments made on or after
December 29, 1972 (issue date of Order No.
465) but prior to the date of issuance of Order
No. 499, shall be subject to the provisions of
Order No. 465.
NOTE E: All advances made pursuant to
contractual commitments made on or after
December 28, 1973 (issue date of Order No.
499), but prior to the date of issuance of
Order No. 529, shall be subject to the provisions of Order No. 499.
NOTE F: This account shall not include advances expended for delay rentals, nonproductive well drilling or abandoned leases
where such advances are related to lease acquisition, except in accordance with Note A
and Note B to this account.
NOTE G: To keep the Commission informed
when an advance is nonrecoverable by any
means the company must submit the full details including copies of Federal and State
plugging and abandonment reports involved
as soon as such fact becomes known.

lpowell on DSK54DXVN1OFR with $$_JOB

167 Other advances for gas.
This account shall include all advances not properly includible in Account 166, exclusive of amounts advanced where a working interest is obtained.
171 Interest and dividends receivable.
This account shall include the
amount of interest on bonds, mortgages, notes, commercial paper, loans,
open accounts, deposits, etc., the payment of which is reasonably assured,
and the amount of dividends declared
or guaranteed on stocks owned.
NOTE A: Interest which is not subject to
current settlement shall not be included
herein but in the account in which is carried

Pt. 201
the principal on which the interest is accrued.
NOTE B: Interest and dividends receivable
from associated companies shall be included
in account 146. Accounts Receivable from Associated Companies.

172 Rents receivable.
This account shall include rents receivable or accrued on property rented
or leased by the utility to others.
NOTE: Rents receivable from associated
companies shall be included in account 146.
Accounts Receivable From Associated Companies.

173 Accrued utility revenues.
At the option of the utility, the estimated amount accrued for service rendered, but not billed at the end of any
accounting period, may be included
herein. In case accruals are made for
unbilled revenues, they shall be made
likewise for unbilled expenses, such as
for the purchase of gas.
174 Miscellaneous current and accrued
assets.
A. This account shall include the
book cost of all other current and accrued assets, appropriately designated
and supported so as to show the nature
of each asset included herein.
B. The utility is to include in a separate subaccount amounts receivable for
gas in unbalanced transactions where
gas is delivered to another party in exchange, load balancing, or no-notice
transportation transactions. (See Account 806.) If the amount receivable is
settled by other than gas, Account 495,
Other Gas Revenues must be credited
or Account 813, Other Gas Supply Expenses, charged for the difference between the amount of the consideration
received and the recorded amount of
the receivable settled. Records are to
be maintained so that there is readily
available for each party entering gas
exchange, load balancing, or no-notice
transportation transactions, the quantity and cost of gas delivered, and the
amount and basis of consideration received, if other than gas.
175 Derivative instrument assets.
This account shall include the
amounts paid for derivative instruments, and the change in the fair value

685

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00695

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

of all derivative instrument assets not
designated as cash flow or fair value
hedges. Account 421, miscellaneous
nonoperating income, will be credited
or debited as appropriate with the corresponding amount of the change in
the fair value of the derivative instrument.
Derivative instrument assets—
Hedges.
A. This account shall include the
amounts paid for derivative instruments, and the change in the fair value
of derivative instrument assets designated by the utility as cash flow or
fair value hedges.
B. When a utility designates a derivative instrument asset as a cash flow
hedge it will record the change in the
fair value of the derivative instrument
in this account with a concurrent
charge to account 219, accumulated
other comprehensive income, with the
effective portion of the derivative gain
or loss. The ineffective portion of the
cash flow hedge shall be charged to the
same income or expense account that
will be used when the hedged item enters into the determination of net income.
C. When a utility designates a derivative instrument asset as a fair value
hedge it shall record the change in the
fair value of the derivative instrument
in this account with a concurrent
charge to a subaccount of the asset or
liability that carries the item being
hedged. The ineffective portion of the
fair value hedge shall be charged to the
same income or expense account that
will be used when the hedged item enters into the determination of net income.

lpowell on DSK54DXVN1OFR with $$_JOB

176

181 Unamortized debt expense.
This account shall include expenses
related to the issuance or assumption
of debt securities. Amounts recorded in
this account shall be amortized over
the life of each respective issue under a
plan which will distribute the amount
equitably over the life of the security.
The amortization shall be on a monthly basis, and the amounts thereof shall
be charged to account 428, Amortization of Debt Discount and Expense.
Any unamortized amounts outstanding
at the time that the related debt is pre-

maturely reacquired shall be accounted
for as indicated in General Instruction
17.
182.1 Extraordinary property losses.
A. When authorized or directed by
the Commission, this account shall include extraordinary losses, which could
not reasonably have been anticipated
and which are not covered by insurance
or other provisions, such as unforeseen
damages to property.
B. Application to the Commission for
permission to use this account shall be
accompanied by a statement giving a
complete explanation with respect to
the items which it is proposed to include herein, the period over which,
and the accounts to which it is proposed to write off the charges, and
other pertinent information.
182.2 Unrecovered plant and regulatory
study costs.
A. This account shall include: (1)
Nonrecurring costs of studies and analyses mandated by regulatory bodies related to plants in service, transferred
from account 183.2, Other Preliminary
Survey and Investigation Charges, and
not resulting in construction; and (2)
when authorized by the Commission,
significant unrecovered costs of plant
facilities where construction has been
cancelled or which have been prematurely retired.
B. This account shall be credited and
account 407.1, Amortization of Property Losses, Unrecovered Plant and
Regulatory Study Costs, shall be debited, over the period specified by the
Commission.
C. Any additional costs incurred, relative to the cancellation or premature
retirement, may be included in this account and amortized over the remaining period of the original amortization
period. Should any gains of recoveries
be realized relative to the cancelled or
prematurely
retired
plant,
such
amounts shall be used to reduce the
unamortized amount of the costs recorded herein.
D. In the event that the recovery of
costs included herein is disallowed in
rate proceedings, the disallowed costs
shall be charged to account 426.5, Other

686

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00696

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
Deductions, or account 435, Extraordinary deductions, in the year of such
disallowance.

lpowell on DSK54DXVN1OFR with $$_JOB

182.3 Other regulatory assets.
A. This account shall include the
amounts of regulatory-created assets,
not includible in other accounts, resulting from the ratemaking actions of
regulatory agencies. (See Definition No.
31.)
B. The amounts included in this account are to be established by those
charges which would have been included in net income, or accumulated
other comprehensive income, determinations in the current period under
the general requirements of the Uniform System of Accounts but for it
being probable that such items will be
included in a different period(s) for
purposes of developing rates that the
utility is authorized to charge for its
utility services. When specific identification of the particular source of a
regulatory asset cannot be made, such
as in plant phase-ins, rate moderation
plans, or rate levelization plans, account 407.4, regulatory credits, shall be
credited. The amounts recorded in this
account are generally to be charged,
concurrently with the recovery of the
amounts in rates, to the same account
that would have been charged if included in income when incurred, except
all
regulatory
assets
established
through the use of account 407.4 shall
be charged to account 407.3, Regulatory
debits, concurrent with the recovery in
rates.
C. If rate recovery of all or part of an
amount included in this account is disallowed, the disallowed amount shall
be charged to Account 426.5, Other Deductions, or Account 435, Extraordinary Deductions, in the year of the
disallowance.
D. The records supporting the entries
to this account shall be kept so that
the utility can furnish full information
as to the nature and amount of each
regulatory asset included in this account, including justification for inclusion of such amounts in this account.
183.1 Preliminary natural gas survey
and investigation charges.
A. This account shall be charged with
all expenditures for preliminary sur-

Pt. 201
veys, plans, investigations, etc. made
for the purpose of determining the feasibility of acquiring land and land
rights to provide a future supply of
natural gas. If such land or land rights
are acquired, this account shall be
credited and the appropriate gas plant
account (see gas plant instruction 7–G)
charged with the amount of the expenditures relating to such acquisition.
If a project is abandoned involving a
natural gas lease acquired before October 8, 1969, the expenditures related
thereto shall be charged to account 798,
Other Exploration. If a project is abandoned involving a lease acquired after
October 7, 1969, the expenditures related thereto shall be charged to account 338, Unsuccessful Exploration
and Development Costs.
B. The records supporting the entries
to this account shall be so kept that
the utility can furnish, for each investigation, complete information as to
the identification and location of territory investigated, the number or other
identification assigned to the land
tract or leasehold acquired, and the nature and respective amounts of the
charges.
NOTE: The amount of preliminary survey
and investigation charges transferred to gas
plant shall not exceed the expenditures
which may reasonably be determined to contribute directly and immediately and without duplication to gas plant.

183.2 Other preliminary survey and investigation charges.
A. This account shall be charged with
all expenditures for preliminary surveys, plans, investigations, etc., made
for the purpose of determining the feasibility of utility projects under contemplation, other than the acquisition
of land and land rights to provide a future supply of natural gas. If construction results, this account shall be credited and the appropriate utility plant
account charged. If the work is abandoned, the charge shall be made to account 426.5, Other Deductions, or the
appropriate operating expense account.
B. This account shall also include
costs of studies and analyses mandated
by regulatory bodies related to plant in
service. If construction results from
such studies, this account shall be
credited and the appropriate utility

687

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00697

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

plant account charged with an equitable portion of such study costs directly attributible to new construction. The portion of such study costs
not attributible to new construction or
the entire cost if construction does not
result shall be charged to account 182.2,
Unrecovered Plant and Regulatory
Study Costs, or the appropriate operating expense account. The costs of
such studies relative to plant under
construction shall be included directly
in account 107, Construction Work in
Progress—Gas.
C. The records supporting the entries
to this account shall be so kept that
the utility can furnish complete information as to the nature and the purpose of the survey, plans, or investigations and the nature and amounts of
the several charges.
NOTE: The amount of preliminary survey
and investigation charges transferred to utility plant shall not exceed the expenditures
which may reasonably be determined to contribute directly and immediately and without duplication to utility plant.

184 Clearing accounts.
This caption shall include undistributed balances in clearing accounts at
the date of the balance sheet. Balances
in clearing accounts shall be substantially cleared not later than the end of
the calendar year unless items held
therein relate to a future period.

lpowell on DSK54DXVN1OFR with $$_JOB

185 Temporary facilities.
This account shall include amounts
shown by work orders for plant installed for temporary use in utility
service for periods of less than one
year. Such work orders shall be
charged with the cost of temporary facilities and credited with payments received from customers and net salvage
realized on removal of the temporary
facilities. Any net credit or debit resulting shall be cleared to account 488,
Miscellaneous Service Revenues.
186 Miscellaneous deferred debits.
A. This account shall include all debits not elsewhere provided for, such as
miscellaneous work in progress, construction certificate application fees
paid prior to final disposition of the application as provided for in gas plant
instruction 15A, and unusual or ex-

traordinary expenses not included in
other accounts which are in process of
amortization, and items the final disposition of which is uncertain.
B. The records supporting the entries
to this account shall be so kept that
the utility can furnish full information
as to each deferred debit included herein.
187 Deferred losses from disposition of
utility plant.
This account shall include losses
from the sale or other disposition of
property previously recorded in account 105, Gas Plant Held for Future
Use and account 105.1, Production
Properties Held for Future Use, under
the provisions of paragraphs B, C, and
D thereof, where such losses are significant and are to be amortized over a period of 5 years, unless otherwise authorized by the Commission. The amortization of the amounts in this account
shall be made by debits to account
411.7, Losses from Disposition of Utility Plant. Subdivision of this account
shall be maintained so that amounts
relating to account 105, Gas Plant Held
for Future Use and account 105.1, Production Properties Held for Future
Use, can be readily identifiable. (See
accounts 105, Gas Plant Held for Future
Use and 105.1, Production Properties
Held for Future Use.)
188 Research, development, and demonstration expenditures.
A. This account shall be charged with
the cost of all expenditures coming
within the meaning of Research, Development, and Demonstration (R.D. & D.)
of this Uniform Systems of Accounts
(see definition 28.B), except those expenditures properly chargeable to Account 107, Construction Work in
Progress—Gas.
B. Costs that are minor or of a general or recurring nature shall be transferred from this account to the appropriate operating expense function or if
such costs are common to the overall
operations or cannot be feasibly allocated to the various operating accounts, then such costs shall be recorded in account 930.2, Miscellaneous
General Expenses.

688

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00698

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
C. In certain instances a company
may incur large and significant research, development, and demonstration expenditures which are nonrecurring and which would distort the
annual research, development, and
demonstration charges for the period.
In such a case the portion of such
amounts that cause the distortion may
be amortized to the appropriate operating expense account over a period
not to exceed five years unless otherwise authorized by the Commission.
D. The entries in this account must
be so maintained as to show separately
each project along with complete detail of the nature and purpose of the research, development, and demonstration project together with the related
costs.
189 Unamortized loss on reacquired
debt.
This account shall include the losses
on long-term debt reacquired or redeemed. The amounts in this account
shall be amortized in accordance with
General Instruction 17.

lpowell on DSK54DXVN1OFR with $$_JOB

190

Accumulated deferred income
taxes.
A. This account shall be debited and
account 411.1, Provision for Deferred
Income Taxes—Credit, Utility Operating Income, or account 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited with an
amount equal to that by which income
taxes payable for the year are higher
because of the inclusion of certain
items in income for tax purposes,
which items for general accounting
purposes will not be fully reflected in
the utility’s determination of annual
net income until subsequent years.
B. This account shall be credited and
account 410.1, Provision for Deferred
Income Taxes, Utility Operating Income, or account 410.2, Provision for
Deferred Income Taxes, Other Income
and Deductions, as appropriate, shall
be debited with an amount equal to
that by which income taxes payable for
the year are lower because of prior payment of taxes as provided by paragraph
A above, because of difference in timing for tax purposes of particular items
of income or income deductions from

Pt. 201
that recognized by the utility for general accounting purposes. Such credit
to this account and debit to account
410.1 or 410.2 shall, in general, represent
the effect on taxes payable in the current year of the smaller amount of
book income recognized, or the larger
deduction permitted, for tax purposes
as compared to the amount recognized
in the utility’s current accounts with
respect to the item or class of items for
which deferred tax concept of accounting is affected.
C. Vintage year records with respect
to entries to this account, as described
above, and the account balance shall be
so maintained as to show the factor of
calculation with respect to each annual
amount of the item or class of items
for which deferred tax accounting by
the utility is utilized.
D. The utility is restricted in its use
of this account to the purpose set forth
above. It shall not make use of the balance in this account or any portion
thereof except as provided in the text
of this account, without prior approval
of the Commission. Any remaining deferred tax account balance with respect
to an amount for any prior year’s tax
deferral, the amortization of which or
other recognition in the utility’s income accounts has been completed, or
other disposition made, shall be debited to account 410.1, Provision for Deferred Income Taxes, Utility Operating
Income, or account 410.2, Provision for
Deferred Income Taxes, Other Income
and Deductions, as appropriate, or otherwise disposed of as the Commission
may authorize or direct. (See General
Instruction 18.)
191 Unrecovered purchased gas costs.
A. This account shall include purchase gas costs related to Commission
approved purchased gas adjustment
clauses when such costs are not included in the utility’s rate schedule on
file with the Commission. This account
shall also include such other costs as
authorized by the Commission.
B. This account shall be debited or
credited, as appropriate, each month
for increases or decreases in purchased
gas costs with contra entries to Account 805.1, Purchased Gas Cost Adjustments.

689

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00699

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

C. After a change in a rate schedule
recognizing the increases or decreases
in purchased gas costs recorded in this
account is approved by the Commission, this account shall be debited or
credited, as appropriate, with contra
entries to expense Account 805.1, Purchased Gas Cost Adjustments, so that
the balance accumulated in this account will be amortized on an appropriate basis over a succeeding 6–month
period or over such other periods that
the Commission may have authorized.
Any over or under applied debits or
credits to this account shall be carried
forward to the succeeding period of amortization.
D. Separate subaccounts shall be
maintained for the amounts relating to
the period in which the increase or decrease is accumulated and for the amortization of purchase gas increases or
decreases, as applicable, so as to keep
each period separate.
201 Common stock issued.
202 Common stock subscribed.
203 Common stock liability for conversion.

lpowell on DSK54DXVN1OFR with $$_JOB

204 Preferred stock issued.
A. These accounts shall include the
par value or the stated value of stock
without par value if such stock has a
stated value, and, if not, the cash value
of the consideration received for such
nonpar stock, of each class of capital
stock actually issued, including the par
or stated value of such capital stock in
account 124, Other Investments and account 217, Reacquired Capital Stock.
B. When the actual cash value of the
consideration received is more or less
than the par or stated value of any
stock having a par or stated value, the
difference shall be credited or debited,
as the case may be, to the premium or
discount account for the particular
class and series.
C. When capital stock is retired,
these accounts shall be charged with
the amount at which such stock is carried herein.
D. A separate ledger account, with a
descriptive title, shall be maintained
for each class and series of stock. The
supporting records shall show the

shares nominally issued, actually
issued, and nominally outstanding.
NOTE: When a levy or assessment, except a
call for payment on subscriptions, is made
against holders of capital stock, the amount
collected upon such levy or assessment shall
be credited to account 207, Premium on Capital Stock; provided, however, that the credit shall be made to account 213, Discount on
Capital Stock, to the extent of any remaining balance of discount on the issue of stock.

205 Preferred stock subscribed.
A. These accounts shall include the
amount of legally enforceable subscriptions to capital stock of the utility.
They shall be credited with the par or
stated value of the stock subscribed,
exclusive of accrued dividends, if any.
Concurrently, a debit shall be made to
subscriptions to capital stock, included
as a Other Accounts Receivable, for the
agreed price and any discount or premium shall be debited or credited to
the appropriate discount or premium
account. When properly executed stock
certificates have been issued representing the shares subscribed, this
account separate subdivision of account 143, shall be debited, and the appropriate capital stock account credited, with the par or stated value of
such stock.
B. The records shall be kept in such
manner as to show the amount of subscriptions to each class and series of
stock.
206 Preferred stock liability for conversion.
A. These accounts shall include the
par value or stated value, as appropriate, of capital stock which the utility has agreed to exchange for outstanding securities of other companies
in connection with the acquisition of
properties of such companies under
terms which allow the holders of the
securities of the other companies to
surrender such securities and receive in
return therefor capital stock of the accounting utility.
B. When the securities of the other
companies have been surrendered and
capital stock issued in accordance with
the terms of the exchange, these accounts shall be charged and accounts

690

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00700

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
201, Common Stock Issued, or 204, Preferred Stock Issued, as the case may
be, shall be credited.
C. The records shall be kept so as to
show separately the stocks of each
class and series for which a conversion
liability exists.
207 Premium on capital stock.
A. This account shall include, in a
separate subdivision for each class and
series of stock, the excess of the actual
cash value of the consideration received on original issues of capital
stock over the par or stated value and
accrued dividends of such stock, together with assessments against stockholders representing payments required in excess of par or stated values.
B. Premium on capital stock shall
not be set off against expenses. Further, a premium received on an issue of
a certain class or series of stock shall
not be set off against expenses of another issue of the same class or series.
C. When capital stock which has been
actually issued is retired, the amount
in this account applicable to the shares
retired shall be transferred to account
210, Gain on Resale or Cancellation of
Reacquired Capital Stock.
208 Donations received from stockholders.
This account shall include the balance of credits for donations received
from stockholders consisting of capital
stock of the utility, cancellation or reduction of debt of the utility, and the
cash value of other assets received as a
donation.
209 Reduction in par or stated value of
capital stock.
This account shall include the balance of credits arising from a reduction
in the par or stated value of capital
stock.

lpowell on DSK54DXVN1OFR with $$_JOB

210 Gain on resale or cancellation of reacquired capital stock.
This account shall include the balance of credits arising from the resale
or cancellation of reacquired capital
stock. (See account 217, Reacquired
Capital Stock.)

Pt. 201
211 Miscellaneous paid-in capital.
This account shall include the balance of all other credits for paid.in capital which are not properly includible
in the foregoing accounts. This account
may include all commissions and expenses incurred in connection with the
issuance of capital stock.
NOTE: Amounts included in capital surplus
at the effective date of this system of accounts which cannot be classified as to the
source thereof shall be included in this account.

212 Installments received on capital
stock.
A. This account shall include in a
separate subdivision for each class and
series of capital stock the amount of
installments received on capital stock
on a partial or installment payment
plan from subscribers who are not
bound by legally enforceable subscription contracts.
B. As subscriptions are paid in full
and certificates issued, this account
shall be charged and the appropriate
capital stock account credited with the
par or stated value of such stock. Any
discount or premium on an original
issue shall be included in the appropriate discount or premium account.
213 Discount on capital stock.
A. This account shall include in a
separate subdivision for each class and
series of capital stock all discount on
the original issuance and sale of capital stock, including additional capital
stock of a particular class or series as
well as first issues.
B. When capital stock which has been
actually issued is retired, the amount
in this account applicable to the shares
retired shall be written off to account
210, Gain on Resale or Cancellation of
Reacquired Capital Stock, provided,
however, that the amount shall be
charged to account 439, Adjustments to
Retained Earnings, to the extent that
it exceeds the balance in account 210.
214 Capital stock expense.
A. This account shall include in a
separate subdivision for each class and
series of stock all commissions and expenses incurred in connection with the
original issuance and sale of capital
stock, including additional capital

691

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00701

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

stock of a particular class or series as
well as first issues. Expenses applicable
to capital stock shall not be deducted
from premium on capital stock.
B. When capital stock which has been
actually issued by the utility is retired, the amount in this account applicable to the shares retired shall be
written off to account 210, Gain on Resale or Cancellation of Reacquired Capital Stock, provided, however, that the
amount shall be charged to account
439, Adjustments to Retained Earnings,
to the extent that it exceeds the balance in account 210.
NOTE A: Expenses in connection with the
reacquisition or resale of the utility’s capital stock shall not be included herein.
NOTE B: The utility may write off capital
stock expense in whole or in part by charges
to account 211, Miscellaneous Paid-In Capital.

215 Appropriated retained earnings.
This account shall include the
amount of earned surplus which has
been appropriated or set aside for specific purposes. Separate subaccounts
shall be maintained under such titles
as will designate the purpose for which
each appropriation was made.
216 Unappropriated retained earnings.
This account shall include the balances, either debit or credit, of unappropriated retained earnings arising
from earnings of the utility. This account shall not include any amounts
representing the undistributed earnings of subsidiary companies.

lpowell on DSK54DXVN1OFR with $$_JOB

216.1 Unappropriated undistributed
subsidiary earnings.
This account shall include the balances, either debit or credit, of undistributed retained earnings of subsidiary companies since their acquisition. When dividends are received from
subsidiary companies and the balances
have been included in this account,
this account shall be debited and account 216, Unappropriated Retained
Earnings, credited.
217 Reacquired capital stock.
A. This account shall include in a
separate subdivision for each class and
series of capital stock, the cost of capital stock actually issued by the utility

and reacquired by it and not retired or
canceled, except, however, stock which
is held by trustees in sinking or other
funds.
B. When reacquired capital stock is
retired or canceled, the difference between its cost, including commissions
and expenses paid in connection with
the reacquisition, and its par or stated
value plus any premium and less any
discount and expenses applicable to the
shares retired, shall be debited or credited, as appropriate, to account 210,
Gain on Resale or Cancellation of Reacquired Capital Stock, provided, however, that debits shall be charged to account 439, Adjustments to Retained
Earnings, to the extent that they exceed the balance in account 210.
C. When reacquired capital stock is
resold by the utility, the difference between the amount received on the resale of the stock, less expenses incurred in the resale, and the cost of the
stock included in this account shall be
accounted for as outlined in paragraph
B.
NOTE A: See account 124. Other Investments, for permissive accounting treatment
of stock reacquired under a definite plan for
resale.
NOTE B: The accounting for reacquired
stock shall be as prescribed herein unless
otherwise specifically required by statute.

219 Accumulated other comprehensive
income.
A. This account shall include revenues, expenses, gains, and losses that
are properly includable in other comprehensive income during the period.
Examples of other comprehensive income include foreign currency items,
minimum pension liability adjustments, unrealized gains and losses on
certain investments in debt and equity
securities, and cash flow hedges.
Records supporting the entries to this
account shall be maintained so that
the utility can furnish the amount of
other comprehensive income for each
item included in this account.
B. This account shall also be debited
or credited, as appropriate, with
amounts of accumulated other comprehensive income that have been included in the determination of net income during the period and in accumulated other comprehensive income in

692

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00702

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
prior periods. Separate records for each
category of items will be maintained to
identify the amount of the reclassification adjustments from accumulated
other comprehensive income to earnings made during the period.
221 Bonds.
This account shall include in a separate subdivision for each class and series of bonds the face value of the actually issued and unmatured bonds which
have not been retired or canceled; also
the face value of such bonds issued by
others the payment of which has been
assumed by the utility.
222 Reacquired bonds.
A. This account shall include the face
value of bonds actually issued or assumed by the utility and reacquired by
it and not retired, or canceled. The account for reacquired debt shall not include securities which are held by
trustee in sinking or other funds.
B. When bonds are reacquired, the
difference between face value, adjusted
for unamortized discount, expenses or
premium, and the amount paid upon
reacquisition, shall be included in account 189, Unamortized Loss on Reacquired
Debt,
or
account
257,
Unamortized Gain on Reacquired Debt,
as appropriate. (See General Instruction 17.)

lpowell on DSK54DXVN1OFR with $$_JOB

223 Advances from associated companies.
A. This account shall include the face
value of notes payable to associated
companies and the amount of open
book accounts representing advances
from associated companies. It does not
include notes and open accounts representing indebtedness subject to current settlement which are includible in
account 233, Notes Payable to Associated Companies, or account 234, Accounts Payable to Associated Companies.
B. The records supporting the entries
to this account shall be so kept that
the utility can furnish complete information concerning each note and open
account.
224 Other long-term debt.
A. This account shall include, until
maturity, all long-term debt not other-

Pt. 201
wise provided for. This covers such
items as receivers’ certificates, real estate mortgages executed or assumed,
assessments for public improvements,
notes and unsecured certificates of indebtedness not owned by associated
companies, receipts outstanding for
long-term debt, and other obligations
maturing more than one year from
date of issue or assumption.
B. Separate accounts shall be maintained for each class of obligation, and
records shall be maintained to show for
each class all details as to date of obligation, date of maturity, interest dates
and rates, security for the obligation,
etc.
NOTE: Miscellaneous long-term debt reacquired shall be accounted for in accordance
with the procedure set forth in account 222,
Reacquired Bonds.

225 Unamortized premium on long-term
debt.
A. This account shall include the excess of the cash value of consideration
received over the face value upon the
issuance or assumption of long-term
debt securities.
B. Amounts recorded in this account
shall be amortized over the life of each
respective issue under a plan which
will distribute the amount equitably
over the life of the security. The amortization shall be on a monthly basis,
with the amounts thereof to be credited to account 429, Amortization of
Premium on Debt—Credit. (See General Instruction 17.)
226 Unamortized discount on long-term
debt—Debit.
A. This account shall include the excess of the face value of long-term debt
securities over the cash value of consideration received therefor, related to
the issue or assumption of all types
and classes of debt.
B. Amounts recorded in this account
shall be amortized over the life of the
respective issues under a plan which
will distribute the amount equitably
over the life of the securities. The amortization shall be on a monthly basis,
with the amounts thereof charged to
account 428, Amortization of Debt Discount and Expense. (See General Instruction 17.)

693

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00703

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

SPECIAL INSTRUCTIONS FOR CURRENT AND
ACCRUED LIABILITIES

228.2 Accumulated provision for injuries and damages.

Current and accrued liabilities are those
obligations which have either matured or
which become due within one year from the
date thereof; except, however, bonds, receivers’ certificates and similar obligations
which shall be classified as long-term debt
until date of maturity; accrued taxes, such
as income taxes, which shall be classified as
accrued liabilities even though payable more
than one year from date; compensation
awards, which shall be classified as current
liabilities regardless of date due; and minor
amounts payable in installments which may
be classified as current liabilities. If a liability is due more than one year from date of
issuance or assumption by the utility, it
shall be credited to a long-term debt account
appropriate for the transaction, except, however, the current liabilities previously mentioned.

A. This account shall be credited
with amounts charged to account 925,
Injuries and Damages, or other appropriate accounts, to meet the probable
liability, not covered by insurance, for
deaths or injuries to employees and
others, and for damages to property
neither owned nor held under lease by
the utility.
B. When liability for any injury or
damage is admitted by the utility either voluntarily or because of the decision of a court or other lawful authority, such as a workmens’ compensation
board, the admitted liability shall be
charged to this account and credited to
the appropriate current liability account. Details of these charges shall be
maintained according to the year the
casualty occurred which gave rise to
the loss.

227 Obligations under capital leases—
noncurrent.
This account shall include the portion not due within one year, of the obligations recorded for the amounts applicable to leased property recorded as
assets in account 101.1, Property under
Capital Leases, or account 121, Nonutility property.
SPECIAL INSTRUCTIONS TO ACCOUNTS 228.1
THROUGH 228.4

lpowell on DSK54DXVN1OFR with $$_JOB

No amounts shall be credited to these accounts unless authorized by a regulatory authority or authorities to be collected in a
utility’s rate levels.

228.1 Accumulated provision for property insurance.
A. This account shall include
amounts reserved by the utility for
losses through accident, fire, flood, or
other hazards to its own property or
property leased from others, not covered by insurance. The amounts
charged to account 924, Property Insurance, or other appropriate accounts to
cover such risks shall be credited to
this account. A schedule of risks covered shall be maintained, giving a description of the property involved, the
character of the risks covered and the
rates used.
B. Charges shall be made to this account for losses covered, not to exceed
the account balance. Details of these
charges shall be maintained according
to the year the casualty occurred
which gave rise to the loss.

NOTE: Recoveries or reimbursements for
losses charged to this account shall be credited hereto; the cost of repairs to property of
others if provided for herein shall be charged
to this account.

228.3 Accumulated provision for pensions and benefits.
A. This account shall include provisions made by the utility and amounts
contributed by employees for pensions,
accident and death benefits, savings,
relief, hospital and other provident
purposes, where the funds are included
in the assets of the utility either in
general or in segregated fund accounts.
B. Amounts paid by the utility for
the purposes for which this liability is
established shall be charged hereto.
C. A separate account shall be kept
for each kind of provision included
herein.
NOTE: If employee pension or benefit plan
funds are not included among the assets of
the utility but are held by outside trustees,
payments into such funds, or accruals therefor, shall not be included in this account.

228.4 Accumulated miscellaneous operating provisions.
A. This account shall include all operating provisions which are not provided for elsewhere.
B. This account shall be maintained
in such manner as to show the amount

694

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00704

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
of each separate provision and the nature and amounts of the debits and
credits thereto.
NOTE: This account includes only provisions as may be created for operating purposes and does not include any reservations
of income the credits for which should be
carried in account 215, Appropriated Retained Earnings.

229 Accumulated provision for rate refunds.
A. This account shall be credited
with amounts charged to Account 496,
Provision for Rate Refunds, to provide
for estimated refunds where the utility
is collecting amounts in rates subject
to refund.
B. When a refund of any amount recorded in this account is ordered by a
regulatory authority, such amount
shall be charged hereto and credited to
Account 242, Miscellaneous Current
and Accrued Liabilities.
C. Records supporting the entries to
this account shall be kept so as to
identify each amount recorded by the
respective rate filing docket number.

lpowell on DSK54DXVN1OFR with $$_JOB

230

Asset retirement obligations.

A. This account shall include the
amount of liabilities for the recognition of asset retirement obligations related to gas utility plant and nonutility plant that gives rise to the obligations. This account shall be credited
for the amount of the liabilities for
asset retirement obligations with
amounts charged to the appropriate
gas utility plant accounts or nonutility
plant accounts to record the related
asset retirement costs.
B. This account shall also include the
period to period changes for the accretion of the liabilities in account 230,
Asset retirement obligations. The utility shall charge the accretion expense
to account 411.10, Accretion expense,
for gas utility plant, account 413, Expenses of gas plant leased to others, for
gas plant leased to others, or account
421, Miscellaneous nonoperating income, for nonutility plant, as appropriate, and credit account 230, Asset retirement obligations.
C. This account shall be debited with
amounts paid to settle the asset retirement obligations recorded herein.

Pt. 201
D. The utility shall clear from this
account any gains or losses resulting
from the settlement of asset retirement obligations in accordance with
the instructions prescribed in General
Instruction 24.
231 Notes payable.
This account shall include the face
value of all notes, drafts, acceptances,
or other similar evidences of indebtedness, payable on demand or within a
time not exceeding one year from date
of issue, to other than associated companies.
232 Accounts payable.
This account shall include all
amounts payable by the utility within
one year, which are not provided for in
other accounts.
233 Notes payable to associated companies.
234 Accounts payable to associated
companies.
These
accounts
shall
include
amounts owing to associated companies on notes, drafts, acceptances, or
other similar evidences of indebtedness, and open accounts payable on demand or not more than one year from
date of issue or creation.
NOTE: Exclude from these accounts notes
and accounts which are includible in account
223, Advances from Associated Companies.

235 Customer deposits.
This account shall include all
amounts deposited with the utility by
customers as security for the payment
of bills.
236 Taxes accrued.
A. This account shall be credited
with the amount of taxes accrued during
the
accounting
period,
corresponding debits being made to the
appropriate accounts for tax charges.
Such credits may be based upon estimates, but from time to time during
the year as the facts become known,
the amount of the periodic credits shall
be adjusted so as to include as nearly
as can be determined in each year the
taxes applicable thereto. Any amount
representing a prepayment of taxes applicable to the period subsequent to the

695

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00705

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

date of the balance sheet, shall be
shown under account 165, Prepayments.
B. If accruals for taxes are found to
be insufficient or excessive, correction
therefor shall be made through current
tax accruals.
C. Accruals for taxes shall be based
upon the net amounts payable after
credit for any discounts, and shall not
include any amounts for interest on
tax deficiencies or refunds. Interest received on refunds shall be credited to
account 419, Interest and Dividend Income, and interest paid on deficiencies
shall be charged to account 431, Other
Interest Expense.
D. The records supporting the entries
to this account shall be kept so as to
show for each class of taxes, the
amount accrued, the basis for the accrual, the accounts to which charged,
and the amount of tax paid.
237 Interest accrued.
This account shall include the
amount of interest accrued but not matured on all liabilities of the utility
not including, however, interest which
is added to the principal of the debt on
which incurred. Supporting records
shall be maintained so as to show the
amount of interest accrued on each obligation.
238 Dividends declared.

lpowell on DSK54DXVN1OFR with $$_JOB

This account shall include the
amount of dividends which have been
declared but not paid. Dividends shall
be credited to this account when they
become a liability.

241 Tax collections payable.
This account shall include the
amount of taxes collected by the utility through payroll deductions or otherwise pending transmittal of such
taxes to the proper taxing authority.
NOTE: Do not include liability for taxes assessed directly against the utility which are
accounted for as part of the utility’s own tax
expense.

242 Miscellaneous current and accrued
liabilities.
A. This account shall include the
amount of all other current and accrued liabilities not provided for elsewhere appropriately designated and
supported as to show the nature of
each liability.
B. The utility is to include in a separate subaccount amounts payable for
gas in unbalanced transactions where
gas is received from another party in
exchange, load balancing, or no-notice
transportation transactions. (See Account 806.) If the amount payable is
settled by other than gas, Account 495,
Other Gas Revenues, must be credited
or Account 813, Other gas supply expenses, charged for the difference between the amount of the consideration
paid and the recorded amount of the
payable settled. Records are to be
maintained so that there is readily
available for each party entering gas
exchange, load balancing, or no-notice
transportation transactions, the quantity and cost of gas received and the
amount and basis of consideration paid
if other than gas.

239 Matured long-term debt.

243 Obligations under capital leases—
current.

This account shall include the
amount of long-term debt (including
any obligation for premiums) matured
and unpaid, without specific agreement
for extension of the time of payment
and bonds called for redemption but
not presented.

This account shall include the portion due within one year, of the obligations recorded for the amounts applicable to leased property recorded as assets in account 101.1, Property under
Capital Leases, or account 121, NonUtility Property.

240 Matured interest.

244 Derivative instrument liabilities.

This account shall include the
amount of matured interest on longterm debt or other obligations of the
utility at the date of the balance sheet
unless such interest is added to the
principal of the debt on which incurred.

This account shall include the
change in the fair value of all derivative instrument liabilities not designated as cash flow or fair value
hedges. Account 426.5, other deductions, shall be debited or credited as

696

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00706

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
appropriate with the corresponding
amount of the change in the fair value
of the derivative instrument.
245 Derivative instrument liabilities—
Hedges.
A. This account shall include the
change in the fair value of derivative
instrument liabilities designated by
the utility as cash flow or fair value
hedges.
B. A utility shall record the change
in the fair value of a derivative liability related to a cash flow hedge in this
account, with a concurrent charge to
account 219, accumulated other comprehensive income, with the effective
portion of the derivative gain or loss.
The ineffective portion of the cash flow
hedge shall be charged to the same income or expense account that will be
charged when the hedged item enters
into the determination of net income.
C. A utility shall record the change
in the fair value of a derivative instrument liability related to a fair value
hedge in this account, with a concurrent charge to a subaccount of the
asset or liability that carries the item
being hedged. The ineffective portion
of the fair value hedge shall be charged
to the same income or expense account
that will be charged when the hedged
item enters into the determination of
net income.
252 Customer advances for construction.
This account shall include advances
by customers for construction which
are to be refunded either wholly or in
part. When a customer is refunded the
entire amount to which he is entitled,
according to the agreement or rule
under which the advance was made, the
balance, if any, remaining in this account shall be credited to the respective plant account.

lpowell on DSK54DXVN1OFR with $$_JOB

253 Other deferred credits.
This account shall include advance
billings and receipts and other deferred
credit items, not provided for elsewhere, including amounts which cannot be entirely cleared or disposed of
until additional information has been
received.

Pt. 201
254 Other regulatory liabilities.
A. This account shall include the
amounts of regulatory liabilities, not
includible in other accounts, imposed
on the utility by the ratemaking actions of regulatory agencies. (See Definition No. 30.)
B. The amounts included in this account are to be established by those
credits which would have been included
in net income, or accumulated other
comprehensive income, determinations
in the current period under the general
requirements of the Uniform System of
Accounts but for it being probable
that: Such items will be included in a
different period(s) for purposes of developing the rates that the utility is
authorized to charge for its utility
services; or refunds to customers, not
provided for in other accounts, will be
required. When specific identification
of the particular source of the regulatory liability cannot be made or
when the liability arises from revenues
collected pursuant to tariffs on file at
a regulatory agency, account 407.3, regulatory debits, shall be debited. The
amounts recorded in this account generally are to be credited to the same
account that would have been credited
if included in income when earned except: All regulatory liabilities established through the use of account 407.3
shall be credited to account 407.4, regulatory credits; and in the case of refunds, a cash account or other appropriate account should be credited when
the obligation is satisfied.
C. If it is later determined that the
amounts recorded in this account will
not be returned to customers through
rates or refunds, such amounts shall be
credited to Account 421, Miscellaneous
Nonoperating Income, or Account 434,
Extraordinary Income, as appropriate,
in the year such determination is
made.
D. The records supporting the entries
to this account shall be so kept that
the utility can furnish full information
as to the nature and amount of each
regulatory liability included in this account, including justification for inclusion of such amounts in this account.

697

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00707

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

lpowell on DSK54DXVN1OFR with $$_JOB

255 Accumulated deferred investment
tax credits.
A. This account shall be credited
with all investment tax credits deferred by companies which have elected
to follow deferral accounting, partial
or full, rather than recognizing in the
income statement the total benefits of
the tax credit as realized. After such
election, a company may not transfer
amounts from this account, except as
authorized herein and in accounts 411.4,
Investment Tax Credit Adjustments,
Utility Operations, 411.5, Investment
Tax Credit Adjustments, Nonutility
Operations, and 420, Investment Tax
Credits, or with approval of the Commission.
B. Where the company’s accounting
provides that investment tax credits
are to be passed on to customers, this
account shall be debited and account
411.4 credited with a proportionate
amount determined in relation to the
average useful life of gas utility plant
to which the tax credits relate to such
lesser period of time as allowed by a
regulatory agency having rate jurisdiction. If, however, the deferral procedure provides that investment tax
credits are not to be passed on to customers the proportionate restorations
to income shall be credited to account
420.
C. If any of the investment tax credits to be deferred are related to utility
operations other than gas or to nonutility operations, appropriate subdivisions of this account shall be maintained. Contra entries affecting such
subdivisions shall be appropriately recorded in accounts 413, Expenses of Gas
Plant Leased to Others; or 414, Other
Utility Operating Income.
D. Records shall be maintained identifying the properties related to the investment tax credits for each year, the
weighted average service life of such
properties, and any unused balance of
such credits. Such records are not necessary unless the credits are deferred.
256 Deferred gains from disposition of
utility plant.
This account shall include gains from
the sale or other disposition of property previously recorded in account
105, Gas Plant Held for Future Use and
account 105.1, Production Properties

Held for Future Use, under the provisions of paragraphs B, C, and D thereof,
where such gains are significant and
are to be amortized over a period of 5
years, unless otherwise authorized by
the Commission. The amortization of
the amounts in this account shall be
made by credits to account 411.6, Gains
from Disposition of Utility Plant. Subdivision of this account shall be maintained so that amounts relating to account 105, Gas Plant Held for Future
Use and account 105.1, Production
Properties Held for Future Use, can be
readily identifiable. (See accounts 105,
Gas Plant Held for Future Use and account 105.1, Production Properties Held
for Future Use.)
257 Unamortized gain on reacquired
debt.
This account shall include the
amounts of discount realized upon reacquisition or redemption of long-term
debt. The amounts in this account
shall be amortized in accordance with
General Instruction 17.
SPECIAL INSTRUCTIONS
Accumulated Deferred Income Taxes
A. Before using the deferred tax accounts
provided below refer to General Instruction
18. Comprehensive Interperiod Income Tax Allocation.
B. The text of these accounts are designed
primarily to cover deferrals of Federal income taxes. However, they are also to be
used when making deferrals of State and
local income taxes. Natural gas companies
which, in addition to a gas utility department, have another utility department, electric, water, etc., and nonutility property
which have deferred taxes on income with respect thereto shall separately classify such
deferrals in the accounts provided below so
as to allow ready identification of items relating to each utility department and to
Other Income and Deductions.

281

Accumulated deferred income
taxes—Accelerated
amortization
property.
A. This account shall include tax deferrals resulting from adoption of the
principles of comprehensive interperiod
tax allocation described in General Instruction 18 of this system of accounts
that relate to property for which the
utility has availed itself of the use of
accelerated (5-year) amortization of (1)

698

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00708

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

lpowell on DSK54DXVN1OFR with $$_JOB

Federal Energy Regulatory Commission
certified defense facilities as permitted
by Section 168 of the Internal Revenue
Code and (2) certified pollution control
facilities as permitted by Section 169 of
the Internal Revenue Code.
B. This account shall be credited and
accounts 410.1, Provision for Deferred
Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred
Income Taxes, Other Income and Deductions, as appropriate, shall be debited with tax effects related to property described in paragraph A above
where taxable income is lower than
pretax accounting income due to differences between the periods in which
revenue and expense transactions affect taxable income and the periods in
which they enter into the determination of pretax accounting income.
C. This account shall be debited and
accounts 411.1, Provision for Deferred
Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for
Deferred Income Taxes—Credit, Other
Income and Deductions, as appropriate,
shall be credited with tax effects related to property described in paragraph A above where taxable income is
higher than pretax accounting income
due to differences between the periods
in which revenue and expense transactions affect taxable income and the
periods in which they enter into the determination of pretax accounting income.
D. The utility is restricted in its use
of this account to the purposes set
forth above. It shall not transfer the
balance in this account or any portion
thereof to retained earnings or make
any use thereof except as provided in
the text of this account without prior
approval of the Commission. Upon the
disposition by sale, exchange, transfer,
abandonment or premature retirement
of plant on which there is a related balance herein, this account shall be
charged with an amount equal to the
related income tax expense, if any,
arising from such disposition and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating
Income, or 411.2, Provision for Deferred
Income Taxes—Credit, Other Income
and Deductions, as appropriate, shall
be credited. When the remaining balance, after consideration of any related
income tax expense, is less than $25,000,

Pt. 201
this account shall be charged and account 411.1 or 411.2, as appropriate,
credited with such balance. If after
consideration of any related income
tax expense, there is a remaining
amount of $25,000 or more, the Commission shall authorize or direct how such
amount shall be accounted for at the
time approval for the disposition of accounting is granted. When plant is disposed of by transfer to a wholly owned
subsidiary the related balance in this
account shall also be transferred. When
the disposition relates to retirement of
an item or items under a group method
of depreciation where there is no tax
effect in the year of retirement, no entries are required in this account if it
can be determined that the related balances would be necessary to be retained to offset future group item tax
deficiencies.
282

Accumulated deferred income
taxes—Other property.
A. This account shall include the tax
deferrals resulting from adoption of the
principle of comprehensive interperiod
income tax allocation described in
General Instruction 18 of this system of
accounts which are related to all property other than accelerated amortization property.
B. This account shall be credited and
accounts 410.1, Provision for Deferred
Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred
Income Taxes, Other Income and Deductions, as appropriate, shall be debited with tax effects related to property described in paragraph A above
where taxable income is lower than
pretax accounting income due to differences between the periods in which
revenue and expense transactions affect taxable income and the periods in
which they enter into the determination of pretax accounting income.
C. This account shall be debited and
accounts 411.1, Provision for Deferred
Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for
Deferred Income Taxes—Credit, Other
Income and Deductions, as appropriate,
shall be credited with tax effects related to property described in paragraph A above where taxable income is
higher than pretax accounting income
due to differences between the periods

699

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00709

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

in which revenue and expense transactions affect taxable income and the
periods in which they enter into the determination of pretax accounting income.
D. The utility is restricted in its use
of this account to the purposes set
forth above. It shall not transfer the
balance in this account or any portion
thereof to retained earnings or make
any use thereof except as provided in
the text of this account without prior
approval of the Commission. Upon the
disposition by sale, exchange, transfer,
abandonment or premature retirement
of plant on which there is a related balance herein, this account shall be
charged with an amount equal to the
related income tax expense, if any,
arising from such disposition and account 411.1, Income Taxes Deferred in
Prior Years—Credit, Utility Operating
Income, or 411.2, Income Taxes Deferred in Prior Years—Credit, Other Income and Deductions, shall be credited.
When the remaining balance, after consideration of any related tax expenses,
is less than $25,000, this account shall
be charged and account 411.1 or 411.2, as
appropriate, credited with such balance. If after consideration of any related income tax expense, there is a remaining amount of $25,000 or more, the
Commission shall authorize or direct
how such amount shall be accounted
for at the time approval for the disposition of accounting is granted. When
plant disposed of by transfer to a wholly owned subsidiary, the related balance in this account shall also be
transferred. When the disposition relates to retirement of an item or items
under a group method of depreciation
where there is no tax effect in the year
of retirement, no entries are required
in this account if it can be determined
that the related balance would be necessary to be retained to offset future
group item tax deficiencies.

lpowell on DSK54DXVN1OFR with $$_JOB

283

Accumulated deferred income
taxes—Other.
A. This account shall include all
credit tax deferrals resulting from the
adoption of the principles of comprehensive interperiod income tax allocation described in General Instruction
18 of this system of accounts other
than those deferrals which are includ-

ible in Accounts 281, Accumulated Deferred Income Taxes—Accelerated Amortization Property and 282, Accumulated Deferred Income Taxes—Other
Property.
B. This account shall be credited and
accounts 410.1 Provision for Deferred
Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred
Income Taxes, Other Income and Deductions, as appropriate, shall be debited with tax effects related to items
described in paragraph A above where
taxable income is lower than pretax accounting income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax
accounting income.
C. This account shall be debited and
accounts 411.1, Provision for Deferred
Income Taxes—Credit, Utility Operating Income or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate
shall be credited with tax effects related to items described in paragraph A
above where taxable income is higher
than pretax accounting income due to
differences between the periods in
which revenue and expense transactions affect taxable income and the
periods in which they enter into the determination of pretax accounting income.
D. Records with respect to entries to
this account, as described above, and
the account balance, shall be so maintained as to show the factors of calculation with respect to each annual
amount of the item or class of items.
E. The utility is restricted in its use
of this account to the purposes set
forth above. It shall not transfer the
balance in the account or any portion
thereof to retained earnings or to any
other account or make any use thereof
except as provided in the text of this
account, without prior approval of the
Commission. Upon the disposition by
sale, exchange, transfer, abandonment
or premature retirement of items on
which there is a related balance herein,
this account shall be charged with an
amount equal to the related income
tax effect, if any, arising from such disposition and account 411.1, Provision
For Deferred Income Taxes—Credit,

700

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00710

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
Utility Operating Income, or 411.2, Provision For Deferred Income Taxes—
Credit, Other Income and Deductions,
as appropriate, shall be credited. When
the remaining balance, after consideration of any related tax expenses, is
less than $25,000, this account shall be
charged and account 411.1 or 411.2, as
appropriate, credited with such balance. If after consideration of any related income tax expense, there is a remaining amount of $25,000 or more, the
Commission shall authorize or direct
how such amount shall be accounted
for at the time approval for the disposition of accounting is granted.
When plant is disposed of by transfer to
a wholly owned subsidiary, the related
balance in this account shall also be
transferred. When the disposition relates to retirement of an item or items
under a group method of depreciation
where there is no tax effect in the year
of retirement, no entries are required
in this account if it can be determined
that the related balance would be necessary to be retained to offset future
group item tax deficiencies.

Pt. 201
325.3 Gas rights.
325.4 Rights-of-way.
325.5 Other land and land rights.
326 Gas well structures.
327 Field compressor station structures.
328 Field measuring and regulating station
structures.
329 Other structures.
330 Producing gas wells—Well construction.
331 Producing gas wells—Well equipment.
332 Field lines.
333 Field compressor station equipment.
334 Field measuring and regulating station
equipment.
335 Drilling and cleaning equipment.
336 Purification equipment.
337 Other equipment.
338 Unsuccessful exploration and development costs.
B.2. Products Extraction Plant
340
341
342
343
344
345
346
347

Land and land rights.
Structures and improvements.
Extraction and refining equipment.
Pipe lines.
Extracted product storage equipment.
Compressor equipment.
Gas measuring and regulating equipment.
Other equipment.

3. NATURAL GAS STORAGE AND PROCESSING
PLANT
A. UNDERGROUND STORAGE PLANT

Gas Plant Accounts
1. INTANGIBLE PLANT
301 Organization.
302 Franchises and consents.
303 Miscellaneous intangible plant.
2. PRODUCTION PLANT
A. MANUFACTURED GAS PRODUCTION PLANT

304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320

Land and land rights.
Structures and improvements.
Boiler plant equipment.
Other power equipment.
Coke ovens.
Producer gas equipment.
Water gas generating equipment.
Liquefied petroleum gas equipment.
Oil gas generating equipment.
Generating equipment—Other processes.
Coal, coke, and ash handling equipment.
Catalytic cracking equipment.
Other reforming equipment.
Purification equipment.
Residual refining equipment.
Gas mixing equipment.
Other equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

B. NATURAL GAS PRODUCTION PLANT

350.1 Land.
350.2 Rights-of-way.
351 Structures and improvements.
352 Wells.
352.1 Storage leaseholds and rights.
352.2 Reservoirs.
352.3 Nonrecoverable natural gas.
353 Lines.
354 Compressor station equipment.
355 Measuring and regulating equipment.
356 Purification equipment.
357 Other equipment.
B. OTHER STORAGE PLANT

360 Land and land rights.
361 Structures and improvements.
362 Gas holders.
363 Purification equipment.
363.1 Liquefaction equipment.
363.2 Vaporizing equipment.
363.3 Compressor equipment.
363.4 Measuring and regulating equipment.
363.5 Other equipment.
C. BASE LOAD LIQUEFIED NATURAL GAS
TERMINALING AND PROCESSING PLANT

364.1
364.2
364.3
364.4
364.5
364.6

B.1. Natural Gas Production and Gathering
Plant
325.1 Producing lands.
325.2 Producing leaseholds.

Land and land rights .
Structures and improvements.
LNG processing terminal equipment.
LNG transportation equipment.
Measuring and regulating equipment.
Compressor station equipment.

701

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00711

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

364.7 Communication equipment.
364.8 Other equipment.

4. Office expenses incident to organizing
the utility.
5. Stock and minute books and corporate
seal.

4. TRANSMISSION PLANT
365.1 Land and land rights.
365.2 Rights-of-way.
366 Structures and improvements.
367 Mains.
368 Compressor station equipment.
369 Measuring and regulating station equipment.
370 Communication equipment.
371 Other equipment.
5. DISTRIBUTION PLANT
374 Land and land rights.
375 Structures and improvements.
376 Mains.
377 Compressor station equipment.
378 Measuring and regulating station equipment—General.
379 Measuring and regulating station equipment—City gate check stations.
380 Services.
381 Meters.
382 Meter installations.
383 House regulators.
384 House regulatory installations.
385 Industrial measuring and regulating station equipment.
386 Other property on customers’ premises.
387 Other equipment.
6. GENERAL PLANT
389
390
391
392
393
394
395
396
397
398
399

Land and land rights.
Structures and improvements.
Office furniture and equipment.
Transportation equipment.
Stores equipment.
Tools, shop and garage equipment.
Laboratory equipment.
Power operated equipment.
Communication equipment.
Miscellaneous equipment.
Other tangible property.

Gas Plant Accounts
301 Organization.
This account shall include all fees
paid to Federal or State governments
for the privilege of incorporation and
expenditures incident to organizing the
corporation, partnership, or other enterprises and putting it into readiness
to do business.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Cost of obtaining certificates authorizing an enterprise to engage in the public
utility business.
2. Fees and expenses for incorporation.
3. Fees and expenses for mergers or consolidations.

NOTE A: This account shall not include any
discounts upon securities issued or assumed;
nor shall it include any costs incident to negotiating loans, selling bonds or other evidences of debt, or expenses in connection
with the authorization, issuance, or sale of
capital stock.
NOTE B: Exclude from this account and include in the appropriate expense account the
cost of preparing and filing papers in connection with the extension of the term of incorporation unless the first organization costs
have been written off. When charges are
made to this account for expenses incurred
in mergers, consolidations, or reorganizations, amounts previously included herein or
in similar accounts in the books of the companies concerned shall be excluded from this
account.

302 Franchises and consents.
A. This account shall include
amounts paid to the Federal Government, to a State or to a political subdivision thereof in consideration for
franchises, consents, or certificates,
running in perpetuity or for a specified
term of more than 1 year, together
with necessary and reasonable expenses
incident to procuring such franchises,
consents, or certificates of permission
and approval, including expenses of organizing and merging separate corporations, where statutes require, solely for
the purpose of acquiring franchises.
B. If a franchise, consent, or certificate is acquired by assignment, the
charge to this account in respect thereof shall not exceed the amount paid
therefor by the utility to the assignor,
nor shall it exceed the amount paid by
the original grantee, plus the expense
of acquisition to such grantee. Any excess of the amount actually paid by the
utility over the amount above specified
shall be charged to account 426.5, Other
Deductions.
C. When any franchise has expired,
the book cost thereof shall be credited
hereto and charged to account 426.5,
Other Deductions, or to account 111,
Accumulated Provision for Amortization and Depletion of Gas Utility
Plant, as appropriate.
D. Records supporting this account
shall be kept so as to show separately

702

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00712

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
the book cost of each franchise or consent.
NOTE: Annual or other periodic payments
under franchises shall not be included herein
but in the appropriate operating expense account.

303 Miscellaneous intangible plant.
A. This account shall include the
cost of patent rights, licenses, privileges, and other intangible property
necessary or valuable in the conduct of
the utility’s gas operations and not
specifically chargeable to any other account.
B. When any item included in this account is retired or expires, the book
cost thereof shall be credited hereto
and charged to account 426.5, Other Deductions, or account 111, Accumulated
Provision for Amortization and Depletion of Gas Utility Plant, as appropriate.
C. This account shall be maintained
in such a manner that the utility can
furnish full information with respect to
the amounts included herein.
304 Land and land rights.
This account shall include the cost of
land and land rights used in connection
with manufactured gas production.
(See gas plant instruction 7.)
305 Structures and improvements.
This account shall include the cost of
structures and improvements used in
connection with manufactured gas production. (See gas plant instruction 8.)
NOTE: Include relief holders in this account.

306 Boiler plant equipment.
This account shall include the cost
installed of furnaces, boilers, steam
and feed water piping, boiler apparatus,
and accessories used in the production
of steam at gas production plants.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Accumulators.
2. Air preheaters, including fans and
drives, and ducts not part of building.
3. Ash
disposal
equipment,
including
sluiceways not part of a building, pumps and
piping, crane, ash bucket conveyor and
drives, ash cars, etc.
4. Belt conveyors, including drives.
5. Blast gate valves.
6. Blow-down tanks and piping.

Pt. 201
7. Boilers, including valves attached thereto, casings, safety valves, soot blowers, soot
hoppers, superheaters, and feed water regulators.
8. Cinder and dust catcher system, including mechanical and electric types.
9. Coal and coke handling equipment, including hoppers, lorries, etc., used wholly for
boilers.
10. Combustion control system, including
all apparatus installed for the regulation and
control of the supply of fuel or air to boilers.
11. Control apparatus.
12. Cranes, hoists, etc., wholly identified
with apparatus listed herein.
13. Desuperheaters and reducing valves.
14. Draft apparatus, including forced, induced, and other draft systems, with blowers, fans, and ducts not part of building.
15. Economizers.
16. Emergency lighting systems, not part
of building, keep-a-lite systems, etc.
17. Emergency signal systems, in connection with boiler operation.
18. Feed water heaters, including primary
and stage.
19. Flues, uptakes, and breeching, whether
or not stacks are included in this account.
20. Foundations and settings, specially
constructed for and not intended to outlast
the apparatus for which provided.
21. Furnaces.
22. Gas firing system, including gas lines,
burners, etc., for gas fired boilers.
23. Injectors.
24. Mechanical stoker and feeding systems,
clinker grinders, including drives.
25. Meters, gauges, recording instruments,
etc.
26. Oil burning equipment, including tanks,
heaters, pumps with drives, burner equipment, piping, and conditioning apparatus.
27. Painting, first cost.
28. Panels, control (for operating apparatus
listed herein).
29. Piping system, steam header and exhaust header, including accessory pipe hangers, steam traps, etc., make-up water, feed
water, drip, blow-off, water pipe lines used
for steam plant, and valve control system.
30. Platforms, railings, steps, gratings,
etc., appurtenant to apparatus listed herein.
31. Pulverizing equipment.
32. Pumps and driving units, for feed water,
heater condensate, condenser water, and
drip.
33. Stacks—brick, steel, and concrete,
when set on separate foundations independent of substructure or superstructure of
building.
34. Steam reheaters.
35. Steelwork, especially constructed for
apparatus listed herein.
36. Tanks, including surge, weighing, return, blow-off, feed water storage.

703

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00713

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

37. Tar burning equipment for utilization
of tar as boiler fuel, including tanks, pumps,
burner equipment, piping, etc.
38. Waste heat boilers and accessories—
stack valve and stack irrespective of location.
39. Water treatment system, including purifiers, settling tanks, filters, chemical mixing and dosing apparatus, etc.
NOTE A: This account shall not include
boilers or steam pipes whose primary purpose is the heating of buildings.
NOTE B: When the system for supplying
boiler or condenser water is elaborate, as
when it includes a dam, reservoir, canal, or
pipe line, the cost shall not be charged to
this account but to a special subdivision of
account 305, Structures and Improvements—
Manufactured Gas.

307 Other power equipment.
A. This account shall include the
cost installed of electric generating
and accessory equipment used for supplying electricity in gas production
plants.
B. This account shall also include the
cost installed of miscellaneous power
equipment at gas production plants
which is not included in any other account.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Acid proofing of battery rooms.
2. Air duct runs in battery rooms.
3. Air pump, streamjet.
4. Batteries for control and general station
use.
5. Belts, pulleys, hangers, shafts, and
countershafts.
6. Cables between generators and switchboards.
7. Cabinets, control.
8. Compartments, including buses, connections, and items permanently attached.
9. Enclosure equipment not an integral
part of building.
10. Engines, including steam rotary or reciprocating, steam turbines, and internal
combustion engines.
11. Foundations and settings, specially
constructed for and not intended to outlast
the apparatus for which provided.
12. Generators, a.c. or d.c., including excitation system.
13. Ground connections, for main station
ground.
14. Lightning arresters.
15. Motor generators, frequency changers
and converters.
16. Overhead power lines, including poles,
crossarms, insulators, conductors, etc.
17. Panels, control, including supports and
instruments.

18. Piping applicable to apparatus listed
herein.
19. Reactors.
20. Rectifiers.
21. Safety equipment, including rubber
mats, remote closing devices, glove cabinets.
22. Switchboards, including frames, panels,
meters, and instruments.
23. Switching equipment, including oil circuit breakers, disconnecting switches, and
connections.
24. Synchronous converters.
25. Transformers, including transformer
platforms.
26. Underground conduit system, including
manholes and conductors.
NOTE: When any unit of equipment listed
herein is wholly used to furnish power to
equipment included in another single account, its cost shall be included in such account.

308 Coke ovens.
This account shall include the cost
installed of coke ovens used for the
production of gas.
ITEMS
1. Apparatus for placing coal in ovens.
2. Bins, if not part of a building.
3. Cabinets, control.
4. Calorimeters.
5. Cars, quenching.
6. Charging lorry.
7. Clay mixers.
8. Coke guide.
9. Coke and pusher benches.
10. Collecting mains.
11. Control apparatus.
12. Conveyor, flight.
13. Cover lifting machinery.
14. Door handling machine.
15. Door luting machine.
16. Driving units for coke oven machinery.
17. Enclosures for machinery.
18. Engines, when not an integral part of
the driven equipment.
19. Firing equipment.
20. Flues, uptakes, and breeching.
21. Foundations.
22. Fuel handling equipment used exclusively for coal to be carbonized in ovens.
23. Fuel systems under ovens.
24. Hot coke wharves.
25. Hot coke cars.
26. Instruments or meters, electrical.
27. Locomotives.
28. Mud mill.
29. Motor control equipment.
30. Ovens.
31. Panel, control.
32. Piping, including ascension pipes, hydraulic main, liquor flushing decanter tank,
liquor pump, and return line to hydraulic
main.

704

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00714

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
33. Pushers, including tracks and driving
equipment.
34. Quenching station including structure,
tank, well, piping, etc.
35. Quenching towers, piping, etc.
36. Regenerator, from bottom of oven floor
tile to battery foundation.
37. Reversing machine, with enclosure.
38. Scale, platform.
39. Signal system.
40. Skip hoist.
41. Stacks.
42. Steel and iron work supports, platforms, stairways, etc.
43. Switches and switchboards.

309 Producer gas equipment.
This account shall include the cost
installed of equipment used for the production of producer gas.
ITEMS
1. Ash handling equipment, used exclusively for producers.
2. Blast apparatus, including blowers, driving units, and blast mains.
3. Control apparatus.
4. Coolers and scrubbers.
5. Driving apparatus for producers.
6. Foundations and settings, specially constructed for and not intended to outlast the
apparatus for which provided.
7. Fuel handling equipment, used exclusively for producers.
8. Humidifiers.
9. Piping—air, steam (commencing at
steam header), water (inside of building), and
producer gas (up to outlet of final piece of
apparatus in building).
10. Producer boosters, including driving
units.
11. Producers.
12. Water separators.

310 Water gas generating equipment.
This account shall include the cost
installed of equipment used in the generation of water gas.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Automatic operation equipment.
2. Back-run installations.
3. Blast equipment, including blowers and
driving units, piping and supports.
4. Bridge, coal shed to generator house.
5. Carburetors.
6. Charging equipment, fuel.
7. Circulating water pumps.
8. Concrete or brick pits, including cover,
not part of building.
9. Control apparatus.
10. Conveyors.
11. Dust collectors.
12. Enclosures for equipment (barriers, fire
walls, guards, housings, screens, etc.).

Pt. 201
13. Flow meters.
14. Foundations and settings, specially
constructed for and not intended to outlast
the apparatus for which provided.
15. Fuel handling equipment used exclusively for fuel for this account.
16. Gauges, indicating and recording.
17. Generators.
18. Hot valves.
19. Hydraulic operation equipment.
20. Instruments and meters, electrical.
21. Oil handling and storage apparatus used
solely for water gas apparatus (tanks, pumps
and oil lines, oil heaters, manholes, valve
pits, regulators, strainers, etc.).
22. Oil spray.
23. Operating floors and supports, stairways, etc.
24. Piling under foundations.
25. Piping and valves—steam (commencing
at steam header) tar (to decanter) water (inside of building), and gas up to outlet of final
pieces of apparatus in building).
26. Pressure regulators.
27. Scales, when used in connection with
items in this account.
28. Seal pots.
29. Superheaters and superheater stacks.
30. Tanks, hydraulic pressure.
31. Valve operating mechanisms.
32. Wash boxes.

311 Liquefied petroleum gas equipment.
A. This account shall include the
cost installed of equipment used for the
production of gas from petroleum derivatives, such as propane, butane, or
gasoline.
B. Subdivisions of this account shall
be maintained for each producing process for which this account is provided.
A separate subaccount shall be maintained also for bottling equipment included herein.
ITEMS
1. Blowers.
2. Boilers.
3. Calorimixer.
4. Carbureting equipment.
5. Compression equipment.
6. Controller.
7. Control apparatus.
8. Enclosures and protective fences.
9. Foundations and settings, specially constructed for and not intended to outlast the
apparatus for which provided.
10. Heat exchanger.
11. Gauges and instruments.
12. Mixing or proportioning equipment.
13. Motors, not an integral part of driven
equipment.
14. Odorizing equipment.
15. Oil separator.

705

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00715

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

16. Piping—steam (commencing at steam
header), water (inside of building), oil (from
supply tank), and gas (up to outlet of final
piece of apparatus in building).
17. Pits.
18. Prime movers.
19. Pumps, including driving units.
20. Regulator.
21. Stairs, platforms, and ladders.
22. Storage equipment, tanks, etc.
23. Superheater.
24. Traps.
25. Valves—regulating and check.
26. Vaporizing equipment.

312 Oil gas generating equipment.
This account shall include the cost
installed of equipment used for generating oil gas.
ITEMS
1. Air blast equipment, including blowers
and driving units, piping and supports.
2. Air inlet louvres and filters.
3. Foundations and settings, specially constructed for and not intended to outlast the
apparatus for which provided.
4. Generating equipment, including automatic cycle controls, generators, operating
floor, superheaters and wash boxes.
5. Instruments and instrument boards,
complete
with
signal
lights
and
thermocouples and including gauge board,
pressure gauges, and pyrometers.
6. Meters and regulators, such as, air flow
meter, generator oil meter, steam flow
meter, and steam regulator.
7. Piping and valves, air, steam (commencing at steam header), water (inside
building), and oil gas (up to outlet of final
piece of apparatus in building).
8. Pumps, hydraulic and oil.
9. Tanks, hydraulic accumulator, hydraulic
return, oil and steam accumulator.

313 Generating equipment—Other processes.
This account shall include, with subdivisions for each type of gas produced,
the cost installed of generating equipment which is not included in any of
the foregoing accounts, such as benches and retorts for the production of
coal gas, equipment used for generating acetylene gas, etc.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
As to coal gas production equipment:
1. Benches.
2. Charging and drawing machines.
3. Control apparatus.
4. Equipment for steaming retorts.
5. Flues, uptakes and breeching, whether
or not stacks are included in this account.

6. Foundations.
7. Fuel handling equipment used exclusively for retorts, including weight lorries,
tracks, etc., and grinders, breakers, and
screens located in retort house.
8. Fuel system under retorts, including
built-in producers.
9. Piping, including ascension pipes, hydraulic main, liquor flushing decanter tank.
liquor pump, and return line to hydraulic
main.
10. Primary atmospheric condensers.
11. Retorts.
12. Stacks—brick, steel, and concrete when
set on separate foundations independent of
substructure or superstructure of buildings,
including lightning arresters.

314 Coal, coke, and ash handling equipment.
This account shall include the cost
installed of structures or equipment
used for the transportation, storage,
washing, and treatment of coal, coke,
and ashes, when used for general gas
plant operations.
ITEMS
1. Bins—mixing, refuse, storage, etc.
2. Boom operating mechanism.
3. Breaker equipment.
4. Bridges, bridge track, and machinery.
5. Bucket conveyors and supports.
6. Capstan.
7. Cars.
8. Chutes.
9. Circuit breakers.
10. Coal loaders.
11. Coal preparation machinery, including
washing and drying equipment.
12. Conduit, electrical.
13. Conveyors and supports.
14. Crane, caterpillar.
15. Driving apparatus for equipment listed
herein.
16. Elevators.
17. Enclosure equipment.
18. Engines, not an integral part of driven
equipment.
19. Foundations and settings, specially
constructed for and not intended to outlast
the apparatus for which provided.
20. Gravity swing unloader.
21. Hoppers.
22. Instruments or meters, electrical.
23. Ladders, fixed.
24. Loading towers and equipment.
25. Locomotives.
26. Motor generators used only for equipment in this account.
27. Panel, control.
28. Pitts.
29. Pulverizing equipment.
30. Railroad sidings and yard tracks.
31. Sampling equipment.

706

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00716

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.

Scales.
Screens.
Sheds and fencing.
Shuttle boom.
Signal system equipment.
Silo.
Skip hoist.
Stairs, railings, etc.
Transfer cars and trucks.
Trestles.
Turntable.
Unloaders.
Weightometer.

10. Water gas generators, used primarily
for reforming gas.

317 Purification equipment.
This account shall include the cost
installed of apparatus used for the removal of impurities from gas and apparatus for conditioning gas, including
pumps, wells, and other accessory apparatus.
ITEMS

315 Catalytic cracking equipment.
This account shall include the cost
installed of equipment used for producing gas by the catalytic cracking
process.
ITEMS
1. Caloric meters.
2. Catalytic furnace, including catalyst and
foundation.
3. Combustion air blowers.
4. Compressors, air.
5. Control equipment.
6. Cooling coils, including foundations.
7. Cooling towers, including foundations.
8. Enclosures.
9. Fractionalizing units.
10. Piping and valves.
11. Preheaters.
12. Pressure regulators.
13. Proportioning controls.
14. Tanks.
15. Vaporizers.

316 Other reforming equipment.
This account shall include the cost
installed of equipment, other than
catalytic cracking equipment, used primarily for reforming gas with resultant changes in its chemical composition and calorific value.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

1. Blast equipment, including blowers and
driving units, piping, and supports.
2. Control apparatus.
3. Foundations and settings, specially constructed for and not intended to outlast the
apparatus for which provided.
4. Fuel and ash handling equipment, used
wholly in reforming gas.
5. Oil gas apparatus, used for reforming
gas.
6. Piping—steam (commencing at steam
header), water (inside of building), and gas
(up to outlet of final piece of apparatus in
building).
7. Pumps and driving units.
8. Purifiers for gas to be reformed.
9. Regulators.

1. Blowers for revivifying.
2. Blowers for activators.
3. Condensers and washer coolers.
4. Control apparatus—conduit, cable, cabinets, switchboards, etc.
5. Crane or cover lifting equipment, not
part of the structure.
6. Dehydrators.
7. Engines, not an integral part of driven
equipment.
8. Foundations and settings, specially constructed for and not intended to outlast the
equipment for which provided.
9. Instruments and meters, electric.
10. Lubricators.
11. Naphthalene and light oil scrubbers.
12. Other accessory equipment such as
coolers, spray ponds, pumps, platforms, railings, stairs.
13. Oxide elevators and pits, platforms, tables, and trenches.
14. Piping—air, steam, water, gas, condensate, liquor, tar, etc., from inlet valve of
first piece of apparatus to outlet valve of
final piece of apparatus (or, in building, from
entrance to building to exit from building).
15. Precipitators.
16. Purifiers—iron oxide or liquid, including first filling.
17. Recording gauges and thermometers.
18. Revivifying air ducts.
19. Saturator with auxiliary equipment.
20. Scrubbers.
21. Seal and drip pots.
22. Signal system identified with equipment herein.
23. Sulphur removal apparatus.
24.
Tar
extractors
and
Cottrell
precipitators.
25. Tar pumps and tanks.
26. Track runs for cranes and hoists.
27. Wash boxes.
28. Water meters, for cooling water.

318 Residual refining equipment.
This account shall include the cost
installed of apparatus used in refining
and handling of residuals except where
the apparatus is necessary for the operation of property included in account
317, Purification Equipment.

707

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00717

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)
ITEMS

1. Ammonia stills, condensers, saturators,
etc.
2. Apparatus for removal of residuals from
purifier liquids.
3. Coke filter.
4. Coke handling and storage facilities used
solely for coke held for sale.
5. Condensers.
6. Control apparatus.
7. Coolers.
8. Decanters.
9. Foundations specially constructed for
and not intended to outlast the apparatus for
which provided.
10. Gauges.
11. Heating equipment for apparatus included in this account.
12. Instruments.
13. Light oil stills, washers, etc.
14. Piping and pumps.
15. Platforms, stairs, and ladders.
16. Separators.
17. Storage tanks.
18. Supports.
19. Tar dehydrators, stills, etc.

319 Gas mixing equipment.
This account shall include the cost
installed of equipment used for mixing
manufactured and natural gas, or the
mixing of other gases incident to delivery of such mixed gases to the distribution system.
ITEMS
1. Alcohol units.
2. Automatic mixing controls.
3. Btu adjustor.
4. Calorimeter.
5. Calorimixer.
6. Compressor.
7. Gas heater.
8. Gas scrubber (air filter, dust cleaner).
9. Gauges and instruments.
10. Meters.
11. Mixing chambers.
12. Odorizing equipment.
13. Oil pump units.
14. Panel and control equipment.
15. Piping and valves.
16. Regulators, pressure and ratio.
17. Safety alarm equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

320 Other equipment.
This account shall include the cost
installed of equipment used in the production of gas, when not assignable to
any of the foregoing accounts.
ITEMS
1. Cabinet, control.
2. Compressed air system.
3. Fire hose carts.

4. First aid room equipment.
5. Foamite system.
6. Foundations and settings specially constructed for and not intended to outlast the
apparatus for which provided.
7. Gasoline pumps.
8. Hand pumps.
9. Machine shop equipment, such as lathes,
pipe cutting and threading machines, vise
grinders, power saw, shop motors, shafting
and belting, drill press, shapers, milling machines, planes, etc.
10. Odorizing equipment.
11. Office furniture and equipment.
12. Oil foggers.
13. Panel, control.
14. Piping—yard, when not includible in
other accounts.
15. Pits.
16. Platforms.
17. Portable scaffolds, ladders, etc.
18. Power shovels.
19. Production laboratory equipment.
20. Scales, not associated with other equipment.
21. Special signal equipment.
22. Tractors for general plant use.
23. Works exhauster including driving unit
and governor.
24. Works station meters, including gauges,
piping and accessories.
SPECIAL INSTRUCTIONS
Costs Related to Leases Acquired After October
7, 1969
The net book value of amounts recorded in
the natural gas production accounts incurred
on or related to leases acquired after October
7, 1969, shall, in general, not exceed the net
realizable value (estimated selling price less
estimated costs of extraction, completion,
and disposal) of recoverable hydrocarbon reserves discovered on such leases. After initiation of exploration and development on
leases acquired after October 7, 1969, the utility must determine after a reasonable period
of time, and annually thereafter, whether
the net realizable value of such recoverable
reserves will be sufficient to absorb the net
book value of amounts recorded in the accounts. The recoverable reserves shall be determined and attested to by independent appraisers no less frequently than every 3
years. If the net realizable value of recoverable reserves is not sufficient to absorb the
net book value of amounts in the production
accounts, the utility shall reduce the net
book value of the amounts in the accounts to
net realizable value of recoverable reserves.
The reduction shall be done by first reducing
the unamortized amounts recorded in Account 338, Unsuccessful Exploration and Development Costs, by debiting Account 404.1,
Amortization and Depletion of Producing
Natural Gas Land and Land Rights (for
Nonmajor companies, 403.1, Depreciation and

708

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00718

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
Depletion Expense). Next, if the net book
value related to successful costs exceeds the
net realizable value of the recoverable reserves, the production plant accounts shall
be written down to such net realizable value
by appropriate charges and credits to the expense and valuation accounts.

321

Asset retirement costs for manufactured gas production plant.

This account shall include asset retirement costs on plant included in the
manufactured gas production plant
function.
325.1 Producing lands.
This account shall include the cost of
lands held in fee on which producing
natural gas wells are located, and lands
held in fee which are being drained of
natural gas through the operation by
the utility of wells on other land. (See
gas plant instruction 7–G.)
325.2 Producing leaseholds.
A. This account shall include the
cost of acquiring leaseholds on which
the utility pays royalties for natural
gas obtained therefrom. (See gas plant
instruction 7–G.)
B. Exclude from this account rents
paid periodically for rights obtained
under leases. Exclude also from this account the cost of leaseholds which terminate in one year or less after they
become effective.
325.3 Gas rights.
This account shall include the cost of
natural gas rights used in producing
natural gas, whereby the utility obtains ownership in gas underlying land
not owned or leased by the utility. It
does not provide for gas rights which
are leased and which are properly
chargeable to account 325.2, Producing
Leaseholds.

325.5 Other land and land rights.
This account shall include the cost of
land and land rights used in connection
with the production of natural gas,
when not properly assignable to any of
the foregoing accounts. (See gas plant
instruction 7.)
326 Gas well structures.
This account shall include the cost of
well structures and improvements used
in connection with the housing of permanent bailers and other equipment
necessary to keep the wells in operation. (See gas plant instruction 8.)
327 Field compressor station structures.
This account shall include the cost of
structures and improvements used in
connection with the housing of compressor station equipment used to raise
the pressure of natural gas before it is
conveyed to the terminus of the field
lines. (See gas plant instruction 8.)
328 Field measuring and regulating station structures.
This account shall include the cost of
structures and improvements used in
connection with the housing of meters,
regulators, and appurtenant appliances
for measuring and regulating natural
gas before the point where it enters the
transmission or distribution system.
(See gas plant instruction 8.)
329 Other structures.
This account shall include the cost of
structures and improvements used in
connection with natural gas production
and gathering not provided for elsewhere. (See gas plant instruction 8.)
330 Producing gas wells—Well construction.
This account shall include the cost of
drilling producing gas wells.
ITEMS

325.4 Rights-of-way.

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

This account shall include the cost of
all interests in land which terminate
more than 1 year after they become effective and on which are located gathering pipelines, telephone pole lines,
and like property used in connection
with the production of natural gas.
(See gas plant instruction 7.)

1. Clearing well site.
2. Hauling, erecting, dismantling, and removing boilers, portable engines, derricks,
rigs, and other equipment and tools used in
drilling.
3. Drilling contractors’ charges.
4. Drive pipe.
5. Fuel or power.
6. Labor.
7. Rent of drilling equipment.

709

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00719

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

8. Water used in drilling, obtained either
by driving wells, piping from springs or
streams, or by purchase.
9. Hauling well equipment.
10. Shooting, fracturing, acidizing.

331 Producing gas wells—Well equipment.
This account shall include the cost of
equipment in producing gas wells.
ITEMS
1. Bailing equipment.
2. Boilers and drives permanently connected.
3. Casing.
4. Derrick.
5. Fence, when solely an enclosure for
equipment.
6. Fittings, including shut-in valves,
bradenheads and casing heads.
7. Packing.
8. Tank, oil or water, etc.
9. Tubing.

332 Field lines.
This account shall include the cost
installed of field lines used in conveying natural gas from the wells to
the point where it enters the transmission or distribution system.

6. Gas lines and equipment, including fuel
supply lines, cooling tower and pond and associated equipment, dehydrators, fuel gas
mixers, special pipe bends and connections,
and associated scrubbers, separators, tanks,
gauges and instruments.
7. Laboratory and testing equipment.
8. Lubricating oil system, including centrifuge, filter, tanks, purifier, and lubricating oil piping, etc.
9. Office furniture and fixtures and general
equipment such as heating boilers, steel
lockers, first-aid equipment, gasoline dispensing equipment, lawn mowers, incinerators, etc.
10. Shop tools and equipment.
11. Water supply and circulation system,
including water well, tank, water piping,
cooling tower, spray fence, and water treatment equipment, etc., but not including
water system equipment solely for domestic
and general use.

334 Field measuring and regulating station equipment.
This account shall include the cost
installed of meters, gauges, and other
equipment used in measuring and regulating natural gas collected in field
lines before the point where it enters
the transmission or distribution system.

ITEMS

ITEMS

1. Gathering lines, including pipe, valves,
fittings, and supports.
2. Cathodic protection equipment.
3. Creek crossings, suspension bridges and
other special construction.
4. Line drips and separators.
5. Line pack gas.

333 Field compressor station equipment.
This account shall include the cost
installed of compressor station equipment and associated appliances used to
raise the pressure of natural gas before
it is conveyed to the terminus of the
field lines.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Boiler plant, coal handling and ash handling equipment for steam powered compressor station.
2. Compressed air system equipment.
3. Compressor equipment and driving
units, including auxiliaries, foundations,
guard rails and enclosures, etc.
4. Electric system equipment, including
generating equipment and driving units,
power wiring, transformers, regulators, battery equipment, switchboard, etc.
5. Fire fighting equipment.

1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundations, pits, etc.
4. Gas cleaners, scrubbers, separators,
dehydrators, etc.
5. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
6. Headers.
7. Meters, orifice or positive, including
piping and connections.
8. Oil fogging equipment.
9. Odorizing equipment.
10. Regulators or governors, including controls and instruments.
11. Structures of a minor nature or portable type.

335 Drilling and cleaning equipment.
This account shall include the cost of
implements and equipment used in
drilling and cleaning natural gas wells.
ITEMS
1.
2.
3.
4.
5.
6.
7.

Bailers.
Bits and other drilling tools.
Boilers.
Derricks.
Drilling cables.
Drilling machines.
Engines.

710

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00720

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

Pt. 201

8. Motors.
9. Pulling machines.
10. Pumps.
11. Rigs.
12. Tanks.

4.
5.
6.
7.

336 Purification equipment.
This account shall include the cost
installed of apparatus used for the removal of impurities from gas and apparatus for conditioning gas.
ITEMS
1. Condensers and washer coolers.
2. Dehydrators.
3. Foundations and settings, specially constructed for and not intended to outlast the
equipment for which provided.
4. Other accessory equipment, such as
coolers, spray ponds, pumps, platforms, railings, stairs.
5. Piping, from inlet valve of first piece of
apparatus to outlet valve of final piece of apparatus (or, in building, from entrance to
building to exit from building).
6. Scrubbers.
7. Sulphur removal apparatus.
8. Water supply system.
NOTE: In general this account shall include
all dehydrators located in or adjacent to production areas which are used to remove
water and other stray liquids from gas produced by the utility or purchased in or adjacent to production areas. In some instances
such dehydrators may be located some distance from the production sources of the gas.
Where, however, the utility has no production and gathering facilities with respect to
any of the gas passing through the
dehydrators, such as at the purchase point at
the head of a transmission pipe line company, the dehydrators may be included in account 368, Compressor Station Equipment, or
account 367, Mains, whichever is the most
practicable and reasonable under the circumstances. Dehydrators which are an adjunct to products extraction operations shall
be included in account 342, Extraction and
Refining Equipment. Dehydrators used in
connection with underground gas storage operations shall be included in account 356, Purification Equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

337 Other equipment.
This account shall include the cost
installed of equipment used in the production and gathering of natural gas,
when not assignable to any of the foregoing accounts.
ITEMS
1. Calorimeter.
2. Control installation.
3. Crane.

Laboratory equipment.
Odorizing unit.
Office furniture and equipment.
Oil fogger.

338 Unsuccessful exploration and development costs.
A. This account shall include unsuccessful exploration and development
costs incurred on or related to hydrocarbon leases, on properties in the contiguous 48 States and the State of Alaska, acquired after October 7, 1969. It
shall also include costs of a preliminary nature incurred in the search for
natural gas in such areas after October
7, 1969.
B. The costs recorded in this account
shall be amortized by debiting account
404.1, Amortization and Depletion of
Producing Natural Gas Land and Land
Rights, and crediting this account
using the unit-of-production or other
acceptable method of amortization as
hydrocarbons are extracted from producing wells.
C. In general, the unamortized costs
recorded in this account shall not exceed the net realizable value (estimated selling price less estimated
costs of extraction, completion and disposal) of proven hydrocarbon reserves
on leases acquired after October 7, 1969.
(See ‘‘Special Instructions—Costs Related to Leases Acquired After October
7, 1969,’’ above.)
339

Asset retirement costs for natural
gas production and gathering plant.
This account shall include asset retirement costs on plant included in the
natural gas production and gathering
plant function.
340 Land and land rights.
This account shall include the cost of
land and land rights used in connection
with the processing of natural gas for
removal of gasoline, butane, propane,
or other salable products. (See gas
plant instruction 7.)
341 Structures and improvements.
This account shall include the cost of
structures and improvements used in
connection with the processing of natural gas for removal of gasoline, butane, propane, or other salable products. (See gas plant instruction 8.)

711

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00721

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

342 Extraction and refining equipment.
This account shall include the cost
installed of equipment used for the extraction from natural gas of gasoline,
butane, propane, or other salable products and for the refining of such products.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1. Boiler plant equipment, including boiler,
boiler setting, heat exchangers, etc.
2. Compressed air system, including air
compressor, air storage tank, etc.
3. Cooling equipment such as coolers, cooling tower and accessories for gas, extracted
products, etc.
4. Cranes, trolleys, and hoists.
5. Electrical system, including generator
and driving unit, power lines, transformers,
switchboard, yard lighting system, etc.
6. Extraction and refining equipment, such
as
absorbers,
reabsorbers,
stills,
dephlegmators, fractionating towers, stabilizing columns, control apparatus.
7. Foundations and structural supports for
equipment items not intended to outlast the
equipment for which provided.
8. Fuel regulating and measuring equipment.
9. Gasoline blending equipment including
dye pot, educator pumps, lead storage tanks,
weighing device, etc.
10. Gauges and instruments.
11. Loading racks and associated other
equipment.
12. Lubricating oil system.
13. Pumps of various types, such as boiler
feed water pumps, loading and transfer
pumps, drip still pumps, oil pumps, skimmer
basin pumps, etc.
14. Tanks of various types such as accumulator and dewatering tanks, separator tanks,
gasoline feed tanks, compressed air tanks,
oil surge tanks, etc., except tanks classifiable as storage equipment, account 344.
15. Water supply system including water
well, water tank and supports, water softener or purification apparatus, traveling
water screen and drive.
16. Yard piping, gas, water, steam, compressed air, fuel, vapor, extracted products,
including headers, valves, etc., but not including off-site lines includible in account
343, Pipe Lines.

343 Pipe lines.
This account shall include the cost
installed of gas and liquids pipe lines
used in connection with the processing
of natural gas for the removal of gasoline, butane, propane, or other salable
products, exclusive of runs of pipe appropriately includible in other equipment accounts, embracing principally

off-site gas, gasoline gathering, and
loading lines not includible as yard piping in account 342, Extraction and Refining Equipment.
ITEMS
1. Gas lines, off-site, relating solely to extraction operations.
2. Gasoline gathering lines connecting with
off-site sources.
3. Gathering line drips.
4. Instruments, indicating and recording.
5. Loading lines connecting with remote
off-site loading racks or storage facilities.
6. Pumps and driving units.

344 Extracted product storage equipment.
This account shall include the cost
installed of storage tanks and associated equipment used in the storing,
prior to sale, of gasoline, butane, propane, and other salable products extracted from natural gas.
ITEMS
1. Foundations.
2. Instruments.
3. Regulators.
4. Storage tanks for partially or fully processed products.
5. Valves.

345 Compressor equipment.
This account shall include the cost
installed of compressor equipment and
associated appliances used in connection with the receipt, processing, and
return of natural gas processed for removal of gasoline, butane, propane, or
other salable products.
ITEMS
(See account 333 for items.)

346

Gas measuring and regulating
equipment.
This account shall include the cost
installed of meters, gauges, and other
equipment used in measuring or regulating natural gas received and/or returned from processing for removal of
gasoline, butane, propane, or other salable products.
ITEMS
1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundations, pits, etc.
4. Gas cleaners, scrubbers, separators,
dehydrators, etc.

712

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00722

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
5. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
6. Headers.
7. Meters, orifice or positive, including piping and connections.
8. Oil fogging equipment.
9. Odorizing equipment.
10. Regulators or governors, including controls and instruments.
11. Structures of a minor nature or portable type.

347 Other equipment.
This account shall include the cost
installed of equipment used in processing natural gas and refining gasoline, butane, propane, and other salable
products extracted from natural gas,
when not assignable to any of the foregoing accounts.
ITEMS
1. Fire fighting equipment.
2. Laboratory and testing equipment.
3. Miscellaneous equipment, such as firstaid cabinet, gasoline dispensing pump, heating boiler, incinerator, lawn mower, warehouse truck.
4. Office furniture and equipment.
5. Shop tools and equipment.
SPECIAL INSTRUCTIONS—ACCOUNTS
THROUGH 363.5

350.1

The above accounts are to be used by
the transmission and distribution companies for the classification of storage
facilities used for peak shaving operations. The accounts shall be subdivided to classify the peak shaving
storage facilities according to the
transmission or distribution function,
if the utility operates both transmission and distribution systems. Only
base
load
liquefied
natural
gas
terminaling and processing facilities
are to be classified in accounts 364.1
through 364.8.
Asset retirement costs for products extraction plant.
This account shall include asset retirement costs on plant included in the
products extraction plant function.

lpowell on DSK54DXVN1OFR with $$_JOB

348

350.1 Land.
This account shall include the cost of
lands held in fee on which underground
storage wells are located, and other
lands held in fee within an area utilized
for the underground storage of gas.
(See gas plant instruction 7–G.)

Pt. 201
350.2 Rights-of-way.
This account shall include the cost of
all interests in land which do not terminate until more than 1 year after
they become effective and on which are
located underground storage lines,
telephone poles lines, and like property
used in connection with underground
gas storage operations. (See gas plant
instruction 7.)
351 Structures and improvements.
A. This account shall include the
cost in place of structures and improvements used wholly or predominantly in connection with underground
storage of natural gas. (See gas plant
instruction 8.)
B. This account shall be subdivided
as follows:
351.1 Well structures.
351.2 Compressor station structures.
351.3 Measuring and regulating station structures.
351.4 Other structures.

352 Wells.
This account shall include the drilling cost of wells used for injection and
withdrawal of gas from underground
storage projects, including wells kept
open and used for observation.
ITEMS
Drilling:
1. Clearing well site.
2. Hauling, erecting, dismantling, and removing boilers, portable engines, derricks,
rigs, and other equipment and tools used in
drilling.
3. Drilling contractors’ charges.
4. Drive pipe.
5. Fuel or power.
6. Labor.
7. Rent of drilling equipment.
8. Water used in drilling, obtained either
by driving wells, piping from springs or
streams, or by purchase.
9. Hauling well equipment.
10. Shooting, fracturing, acidizing.
Equipment:
11. Bailing equipment.
12. Boilers and drives permanently connected.
13. Casing.
14. Derrick.
15. Fence, when solely an enclosure for
equipment.
16. Fittings, including shut-in valves,
bradenheads and casing heads.
17. Packing.
18. Tank, oil or water, etc.

713

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00723

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

19. Tubing.

352.1 Storage leaseholds and rights.
A. This account shall include the
cost of leaseholds, storage rights, mineral deeds, etc. on lands for the purpose
of utilizing subsurface reservoirs for
underground gas storage operations.
(See gas plant instruction 7–G.)
B. Exclude from this account rents or
other charges paid periodically for use
of subsurface reservoirs for underground gas storage purposes.
NOTE: Items such as buildings, wells, lines,
equipment and recoverable gas used in storage operations acquired with land or storage
leaseholds and rights are to be classified in
the appropriate accounts.

352.2 Reservoirs.
This account shall include costs to
prepare underground reservoirs for the
storage of natural gas.
ITEMS
1. Geological, geophysical and seismic
costs.
2. Plugging abandoned wells.
3. Fuel and power.
4. Drilling and equipping fresh water wells,
disposal wells, and solution wells.
5. Leaching of salt dome caverns.
6. Rentals on storage rights and leases incurred during construction and development
period.
7. Gas used during the development period.
8. Costs incident to maintaining covenants
of production leaseholds during the period
required to convert them to storage leaseholds.
9. Other rehabilitation work.

lpowell on DSK54DXVN1OFR with $$_JOB

352.3 Nonrecoverable natural gas.
A. This account shall include the
cost of gas in underground reservoirs,
including depleted gas or oil fields and
other underground caverns or reservoirs used for the storage of gas
which will not be recoverable.
B. Such nonrecoverable gas shall be
priced at cost according to generally
accepted methods of cost determination consistently applied. (See the Special Instructions to Accounts 117.1,
117.2, and 117.3.
353 Lines.
This account shall include the cost
installed of gas pipe lines used wholly
or predominantly for conveying gas
from point of connection with trans-

mission or field lines to underground
storage wells and from underground
storage wells to the point where the
gas enters the transmission or distribution system.
ITEMS
1. Cathodic protection equipment.
2. Creek crossings, suspension bridges and
other special construction.
3. Lines, including pipe, valves, fittings,
and supports.
4. Line drips and separators.
5. Line pack gas.

354 Compressor station equipment.
This account shall include the cost
installed of compressor station equipment used wholly or predominantly for
the purpose of raising the pressure of
gas for delivery to underground storage
or to raise the pressure of gas withdrawn from underground storage for
delivery to the transmission or distribution system.
ITEMS
1. Boiler plant, coal handling and ash handling equipment for steam powered compressor station.
2. Compressed air system equipment.
3. Compressor equipment and driving
units, including auxiliaries, foundations,
guard rails and enclosures, etc.
4. Electric system equipment, including
generating equipment and driving units,
power wiring, transformers, regulators, battery equipment, switchboard, etc.
5. Fire fighting equipment.
6. Gas lines and equipment, including fuel
supply lines, cooling tower and pond and associated equipment, dehydrators, fuel gas
mixers, special pipe bends and connections,
and associated scrubbers, separators, tanks,
gauges and instruments.
7. Laboratory and testing equipment.
8. Lubricating oil system, including centrifuge, filter, tanks, purifier, and lubricating oil piping, etc.
9. Office furniture and fixtures and general
equipment such as steel lockers, first-aid
equipment, gasoline dispensing equipment,
lawn mowers, incinerators, etc.
10. Shop tools and equipment.
11. Water supply and circulation system,
including water well, tank, water piping,
cooling tower, spray fence, and water treatment equipment, etc., but not including
water system equipment solely for domestic
and general use.

714

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00724

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission

Pt. 201
ITEMS

355 Measuring and regulating equipment.
This account shall include the cost
installed if equipment used wholly or
predominantly for the purpose of measuring and regulating deliveries of gas
to underground storage and withdrawals of gas from underground storage.
ITEMS
1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundations, pits, etc.
4. Gas cleaners, scrubbers, separators,
dehydrators, etc.
5. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
6. Headers.
7. Meters, orifice or positive, including
piping and connections.
8. Oil fogging equipment.
9. Odorizing equipment.
10. Regulators or governors, including controls and instruments.
11. Structures of a minor nature or portable type.

358

Calorimeter.
Control installation.
Crane.
Odorizing unit.
Office furniture and equipment.
Oil foggers.

Asset retirement costs for underground storage plant.

This account shall include asset retirement costs on plant included in the
underground storage plant function.
360 Land and land rights.
This account shall include the cost of
land and land rights used in connection
with the storage of gas in holders. (See
gas plant instruction 7.)
361 Structures and improvements.
This account shall include the cost in
place of structures and improvements
used in connection with the storage of
gas in holders. (See gas plant instruction 8.)
362 Gas holders.

356 Purification equipment.
This account shall include the cost
installed of apparatus used wholly or
predominantly for the removal of impurities from and the conditioning of,
gas delivered to or removed from underground storage fields.

This account shall include the cost
installed of holders and associated appliances used in the storage of gas
above ground, or in underground receptacles.
ITEMS

357 Other equipment.

1. Alarm systems.
2. Buried piping, tanks or other underground construction for gas storage.
3. Flood and fire control equipment.
4. Foundations.
5. Holder pistons.
6. Holders-waterless, including elevators,
tar apparatus, and inlet and outlet connections.
7. Holders-waterseal, including oil skimmer, heating equipment, drips, and inlet and
outlet connections.
8. Hortonspheres and high pressure tanks,
including inlet and outlet connections, access equipment, etc.
9. Lighting.
10. Pumps.
11. Ventilating equipment.
12. Walkways.

This account shall include the cost
installed of equipment used wholly or
predominantly in connection with underground storage of gas, when not assignable to any of the foregoing accounts.

NOTE A: If the utility stores gas by the liquefaction process the holders for such liquids, whether above or below ground, shall
be included in a separate subaccount hereunder.
NOTE B: Relief holders used in connection
with manufactured gas operations shall be

ITEMS
1. Condensers and washer coolers.
2. Dehydrators.
3. Foundations and settings, specially constructed for and not intended to outlast the
equipment for which provided.
4. Other accessory equipment, such as
coolers, spray ponds, pumps, platforms, railings, stairs.
5. Piping, from inlet valve of first piece of
apparatus to outlet valve of final piece of apparatus (or, in building, from entrance to
building to exit from building).
6. Scrubbers.
7. Sulphur removal apparatus.
8. Water supply system.

lpowell on DSK54DXVN1OFR with $$_JOB

1.
2.
3.
4.
5.
6.

715

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00725

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

included in account 305, Structures and Improvements.

363 Purification equipment.
This account shall include the cost
installed of apparatus used for the removal of impurities from gas and apparatus for conditioning gas.
ITEMS
1. Condensers and washer coolers.
2. Dehydrators.
3. Foundations and settings, specially constructed for and not intended to outlast the
equipment for which provided.
4. Other accessory equipment, such as
coolers, spray ponds, pumps, platforms, railings, stairs.
5. Piping from inlet valve of first piece of
apparatus to outlet valve of final piece of apparatus (or, in building from entrance to
building to exit from building).
6. Scrubbers.
7. Sulphur removal apparatus.
8. Water supply system.

4. Gas cleaners, scrubbers, separators,
dehydrators, etc.
5. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
6. Headers.
7. Meters, orifice or positive, including piping and connections.
8. Oil fogging equipment.
9. Odorizing equipment.
10. Regulators or governors, including controls and instruments.
11. Structures of a minor nature or portable type.

363.5 Other equipment.
This account shall include the cost
installed of other equipment used in
connection with the storage of gas in
holders.
ITEMS
1.
2.
3.
4.
5.
6.

363.1 Liquefaction equipment.
This account shall include the cost
installed of equipment used in liquefaction of natural gas.
ITEMS
1.
2.
3.
4.
5.

Cold box.
Heat exchanger.
Condensers.
Pumps.
Tanks.

363.2 Vaporizing equipment.
This account shall include the cost
installed of vaporizing equipment used
in connection with liquefied natural
gas storage.
363.3 Compressor equipment.
This account shall include the cost
installed of compressor equipment and
associated appliances used in connection with other storage plant.

lpowell on DSK54DXVN1OFR with $$_JOB

363.4 Measuring and regulating equipment.
This account shall include the cost
installed of equipment used to measure
deliveries of gas to other storage and
withdrawals of gas from other storage.
ITEMS
1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundations, pits, etc.

Complete inlet and outlet connections.
Compressor.
Foundation.
Gauges and instruments.
Regulating apparatus.
Line pack gas.

363.6 Asset retirement costs for other
storage plant.
This account shall include asset retirement costs on plant included in the
other storage plant function.
364.1 Land and land rights.
A. This account shall include the
cost of land and land rights used in
connection with liquefied natural gas
terminaling and processing operations.
(See gas plant instruction 7.)
364.2 Structures and improvements.
A. This account shall include the
cost in place of structures and improvements used in connection with
liquefied natural gas terminaling and
processing operations. (See gas plant
instruction 8.)
B. This account shall be subdivided
as follows:
1.
2.
3.
4.
5.

Docking and harbor facilities.
LNG processing terminal structures.
Measuring and regulating structures.
Compressor station structures.
Other structures.

364.3 LNG processing terminal equipment.
This account shall include the cost
installed of equipment used to receive,
hold, and regasify liquefied natural gas

716

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00726

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
for delivery into the utility’s transmission or distribution system.
ITEMS
1. Aftercoolers.
2. Air compressors.
3. Air coolers.
4. Alarm systems.
5. Blowers.
6. Cold box, condensers.
7. Controls and control apparatus.
8. Dikes.
9. Drums.
10. Electrical power and ignition circuits
including wiring and conduits.
11. Emission control equipment.
12. Fire control devices and equipment.
13. Foundations.
14. Generators.
15. Heat exchangers.
16. Heaters and reheaters.
17. Instrumentation.
18. Intercoolers.
19. Liquefaction compressors.
20. Liquefied gas holders and storage
tanks.
21. Nitrogen system equipment.
22. Plant piping including pipe supports.
23. Pollution control facilities.
24. Pumps and driving units.
25. Stacks.
26. Tanks, other than LNG storage tanks
(including ladders, stairs, walkways, and
lighting).
27. Unloading and loading arms, and appurtenant equipment.
28. Valves.
29. Vaporizers.
30. Waste heat recovery units.
31. Water craft not to include LNG tankers
and barges.
32. Miscellaneous other equipment.
33. Line pack gas.

364.4 LNG transportation equipment.
This account shall include the cost of
vehicles used for the transportation of
liquefied natural gas.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1.
2.
3.
4.

LNG barges.
LNG maritime tankers.
LNG tank trucks.
Other LNG transportation equipment.

364.5 Measuring and regulating equipment.
This account shall include the cost
installed of meters, gauges and other
equipment used in base load LNG operations for measuring or regulating natural gas prior to its entrance into the
utility’s transmission or distribution
system.

Pt. 201
ITEMS
1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundation, pits, etc.
4. Gas analyzer equipment.
5. Gas cleaners, scrubbers, separators,
dehydrators, etc.
6. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
7. Headers.
8. Meters, orifice or positive, including piping and connections.
9. Oil fogging equipment.
10. Odorizing equipment.
11. Regulators or governors, including controls and instruments.
12. Stabilization equipment.
13. Structures of a minor or portable type.
14. Other equipment.

364.6 Compressor station equipment.
This account shall include the cost
installed of compressor station equipment and associated appliances used in
connection with liquefied natural gas
operations prior to entrance of vaporized gas into the utility’s transmission
or distribution system.
ITEMS
1. Boiler plant, coal handling, and ash handling equipment for steam powered compressor station.
2. Compressed air system equipment.
3. Compressor equipment and driving units,
including auxiliaries, foundations, guard
rails, and enclosures, etc.
4. Electric system equipment, including
generating equipment and driving units,
power wiring, transformers, regulators, battery equipment, switchboard, etc.
5. Fire fighting equipment.
6. Gas lines and equipment, including fuel
supply lines, cooling tower and pond and associated equipment, dehydrators, fuel gas
mixers, special pipebends and connections,
and associated scrubbers, separators, tanks,
gauges, and instruments.
7. Laboratory and testing equipment.
8. Lubricating oil system, including centrifuge, filter, tanks, purifier, and lubricating oil piping, etc.
9. Office furniture and fixtures and general
equipment such as steel lockers, first-aid
equipment, gasoline dispensing equipment,
lawn mowers, incinerators, etc.
10. Shop tools and equipment.
11. Water supply and circulation system,
including water well, tank, water pipeline,
cooling tower, spray fence, and water treatment equipment, etc., but not including
water system equipment used solely for domestic and general use.
12. Other equipment.

717

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00727

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

364.7 Communication equipment.
This account shall include the cost
installed of radio, telephone, microwave, and other equipment used wholly
or predominantly in connection with
the operation and maintenance of the
liquefied natural gas system. (See also
accounts 370 and 397, Communication
Equipment.)
ITEMS
1. Carrier terminal equipment including repeaters, power supply equipment, transmitting and receiving sets.
2. Microwave equipment, including power
supply equipment, transmitters, amplifiers,
paraboloids, towers, reflectors, receiving
equipment, etc.
3. Radio equipment, fixed and mobile, including antenna, power equipment, transmitter units.
4. Telephone equipment including switchboards, power and testing equipment, conductors, pole lines, etc.
5. Other equipment.

364.8 Other equipment.
This account shall include the cost
installed of equipment used in liquefied
natural gas operations, when not assignable to any of the foregoing accounts.

365.2 Rights-of-way.
This account shall include the cost of
rights-of-way used in connection with
transmission operations. (See gas plant
instruction 7.)
366 Structures and improvements.
A. This account shall include the
cost in place of structures and improvements used in connection with
transmission operations. (See gas plant
instruction 8.)
B. This account shall be subdivided
as follows:
366.1 Compressor station structures.
366.2 Measuring and regulating station
structures.
366.3 Other structures.
367 Mains.
A. This account shall include the
cost installed of transmission system
mains.
B. The records supporting this account shall be so kept as to show separately the cost of mains of different
sizes and types and of each tunnel,
bridge, or river crossing.
ITEMS

ITEMS
1. Garage and service equipment.
2. General tools, including power operated
equipment.
3. Laboratory equipment.
4. Materials handling equipment.
5. Office furniture and equipment.
6. Power generation equipment.
7. Shop equipment.
8. Tools, other than small hand tools.
9. Other equipment.

364.9 Asset retirement costs for base
load
liquefied
natural
gas
terminaling and processing plant.
This account shall include asset retirement costs on plant included in the
base
load
liquefied
natural
gas
terminaling and processing plant function.

lpowell on DSK54DXVN1OFR with $$_JOB

365.1 Land and land rights.
This account shall include the cost of
land and land rights except rights-ofway used in connection with transmission operations. (See gas plant instruction 7.)

1. Anti-freeze lubricating equipment.
2. Automatic valve operating mechanisms,
including pressure tanks, etc.
3. By-pass assembly.
4. Caissons, tunnels, trestles, etc., for submarine mains.
5. Cathodic protection equipment.
6. Drip lines and pots.
7. Excavation, including shoring, bracing,
bridging, pumping, backfill, and disposal of
excess excavated material.
8. Foundations.
9. Gas cleaners, scrubbers, etc. when not
part of compressor station or measuring and
regulating equipment.
10. Leak clamps. (See gas plant instruction
10–C (1).)
11. Line pack gas.
12. Linewalkers’ bridges.
13. Manholes.
14. Municipal inspection.
15. Pavement disturbed, including cutting
and replacing pavement, pavement base, and
sidewalks.
16. Permits.
17. Pipe coating.
18. Pipe and fittings.
19. Pipe laying.
20. Pipe supports.
21. Protection of street openings.

718

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00728

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
22. River, highway, and railroad crossings,
including revetments, pipe anchors, etc.
23. Valves.
24. Welding.

368 Compressor station equipment.
This account shall include the cost
installed of compressor station equipment and associated appliances used in
connection with transmission system
operations.
ITEMS
1. Boiler plant, coal handling and ash handling equipment for steam powered compressor station.
2. Compressed air system equipment.
3. Compressor equipment and driving
units, including auxiliaries, foundations,
guard rails and enclosures, etc.
4. Electric system equipment, including
generating equipment and driving units,
power wiring, transformers, regulators, battery equipment, switchboard, etc.
5. Fire fighting equipment.
6. Gas lines and equipment, including fuel
supply lines, cooling tower and pond and associated equipment, dehydrators, fuel gas
mixers, special pipe bends and connections,
and associated scrubbers, separators, tanks,
gauges and instruments.
7. Laboratory and testing equipment.
8. Lubricating oil system, including centrifuge, filter, tanks, purifier, and lubricating oil piping, etc.
9. Office furniture and fixtures and general
equipment such as steel lockers, first-aid
equipment, gasoline dispensing equipment,
lawn mowers, incinerators, etc.
10. Shop tools and equipment.
11. Water supply and circulation system,
including water well, tank, water piping,
cooling tower, spray fence, and water treatment equipment, etc., but not including
water system equipment solely for domestic
and general use.

369 Measuring and regulating station
equipment.
This account shall include the cost
installed of meters, gauges, and other
equipment used in measuring or regulating gas in connection with transmission system operations.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Automatic control equipment.
2. Boilers, heaters, etc.
3. Foundations, pits, etc.
4. Gas cleaners, scrubbers, separators,
dehydrators, etc.
5. Gauges and instruments, including piping, fittings, wiring, etc., and panel boards.
6. Headers.

Pt. 201
7. Meters, orifice or positive, including
piping and connections.
8. Oil fogging equipment.
9. Odorizing equipment.
10. Regulators or governors, including controls and instruments.
11. Structures of a minor nature or portable type.
NOTE: Pipeline companies, including companies who measure deliveries of gas to their
own distribution system, shall include in the
transmission function classification city
gate and main line industrial measuring and
regulating stations.

370 Communication equipment.
This account shall include the cost
installed of radio, telephone, microwave, and other equipment used wholly
or predominantly in connection with
the operation and maintenance of the
gas transmission system. (See also account 397, Communication Equipment.)
ITEMS
1. Carrier terminal equipment including repeaters, power supply equipment, transmitting and receiving sets.
2. Microwave equipment, including power
supply equipment, transmitters, amplifiers,
paraboloids, towers, reflectors, receiving
equipment, etc.
3. Radio equipment, fixed and mobile, including antenna, power equipment, transmitters and receivers, and portable receivertransmitter units.
4. Telephone equipment including switchboards, power and testing equipment, conductors, pole lines, etc.

371 Other equipment.
This account shall include the cost
installed of equipment used in transmission system operations, when not
assignable to any of the foregoing accounts.
372

Asset retirement costs for transmission plant.

This account shall include asset retirement costs on plant included in the
transmission plant function.
374 Land and land rights.
This account shall include the cost of
land and land rights used in connection
with distribution operations. (See gas
plant instruction 7.)

719

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00729

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

375 Structures and improvements.
This account shall include the cost in
place of structures and improvements
used in connection with distribution
operations. (See gas plant instruction
8.)

377 Compressor station equipment.
This account shall include the cost
installed of compressor station equipment and associated appliances used in
connection with distribution system
operations.
ITEMS

376 Mains.
A. This account shall include the
cost installed of distribution system
mains.
B. The records supporting this account shall be so kept as to show separately the cost of mains of different
sizes and types and of each tunnel,
bridge, or river crossing.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Caissons, tunnels, trestles, etc. for submarine mains.
2. Clamps, leak (bell and spigot) when installed at time of construction; when clamps
are installed subsequent to construction, the
accounting shall be in accordance with gas
plant instruction 10, paragraph (C) 1.
3. Drip lines and pots.
4. Electrolysis tests, in connection with
new construction.
5. Excavation, including shoring, bracing,
bridging, pumping, backfill, and disposal of
excess excavated material.
6. Hauling, unloading, and stringing pipe.
7. Lamping and watching new construction.
8. Line pack gas.
9. Municipal inspection.
10. Pavement disturbed, including cutting
and replacing pavement, pavement base, and
sidewalks.
11. Permits.
12. Pipe coating.
13. Pipe and fittings.
14. Pipe laying.
15. Pipe supports.
16. Protection of street openings.
17. Relocating city storm and sanitary sewers, catch basins, etc., or protecting same in
connection with new construction.
18. Replacement of municipal drains and
culverts in connection with new construction.
19. Roadway boxes.
20. Shifting excavated material due to traffic conditions in connection with new construction.
21. Sleeves and couplings.
22. Special crossovers, bridges and foundations for special construction.
23. Surveying and staking lines.
24. Valves not associated with pumping or
regulating equipment.
25. Welding.
26. Wood blocking.

1. Boiler plant, coal handling and ash handling equipment for steam powered compressor station.
2. Compressed air system equipment.
3. Compressor equipment and driving
units, including auxiliaries, foundations,
guard rails and enclosures, etc.
4. Electric system equipment, including
generating equipment and driving units
power wiring, transformers, regulators, battery equipment, switchboard, etc.
5. Fire fighting equipment.
6. Gas lines and equipment, including fuel
supply lines, cooling tower and pond and associated equipment, dehydrators, fuel gas
mixers, special pipe bends and connections,
and associated scrubbers, separators, tanks,
gauges and instruments.
7. Laboratory and testing equipment.
8. Lubricating oil system, including centrifuge, filter, tanks, purifier, and lubricating oil piping, etc.
9. Office furniture and fixtures and general
equipment such as steel lockers, first-aid
equipment, gasoline dispensing equipment,
lawn mowers, incinerators, etc.
10. Shop tools and equipment.
11. Water supply and circulation system,
including water well, tank water piping,
cooling tower, spray fence and water treatment equipment, etc., but not including
water system equipment solely for domestic
and general use.

378 Measuring and regulating station
equipment—General.
This account shall include the cost
installed of meters, gauges and other
equipment used in measuring and regulating gas in connection with distribution system operations other than the
measurement of gas deliveries to customers.
ITEMS
1. Automatic control equipment.
2. Foundations.
3. Gauges and instruments.
4. Governors or regulators.
5. Meters.
6. Odorizing equipment.
7. Oil fogging equipment.
8. Piping.
9. Pressure relief equipment.
10. Vaults or pits, including valves contained therein.

720

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00730

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
NOTE: By-passes outside governor pits are
includible in account 376, Mains.

379 Measuring and regulating station
equipment—City gate check stations.
This account shall include the cost
installed of meters, gauges, and other
equipment used in measuring and regulating the receipt of gas at entry points
to distribution systems.
NOTE: Pipeline companies, including companies who measure deliveries of gas to their
own distribution system, shall include in the
transmission function classification city
gate and main line industrial measuring and
regulating stations.

Pt. 201
381 Meters.
A. This account shall include the
cost installed of meters or devices and
appurtenances thereto, for use in measuring gas delivered to users, whether
actually in service or held in reserve.
B. When a meter is permanently retired from service, the installed cost
included herein shall be credited to
this account.
C. The records of meters shall be so
kept that the utility can furnish information as to the number of meters of
each type and capacity in service and
in reserve as well as the location of
each meter.
ITEMS

ITEMS
(See account 378 for items.)

380 Services.
A. This account shall include the
cost installed of service pipes and accessories leading to the customers’
premises.
B. A complete service begins with the
connection on the main and extends to
but does not include the connection
with the customer’s meter. A stub
service extends from the main to the
property line, or the curb stop.
C. Services which have been used but
have become inactive shall be retired
from utility plant in service immediately if there is no prospect for reuse,
and, in any event, shall be retired by
the end of the second year following
that during which the service became
inactive unless reused in the interim.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Curb valves and curb boxes.
2. Excavation, including shoring, bracing,
bridging, pumping, backfill, and disposal of
excess excavated material.
3. Landscaping, including lawns, and
shrubbery.
4. Municipal inspection.
5. Pavement disturbed, including cutting
and replacing pavement, pavement base, and
sidewalks.
6. Permits.
7. Pipe and fittings, including saddle, T, or
other fitting on street main.
8. Pipe coating.
9. Pipe laying.
10. Protection of street openings.
11. Service drips.
12. Service valves, at head of service, when
installed or furnished by the utility.

1. Meters, including badging and initial
testing.
Meter installations:
2. Cocks.
3. Labor.
4. Locks.
5. Meter bars.
6. Pipe and fittings.
7. Seals.
8. Shelves.
9. Swivels and bushings.
10. Transportation.
NOTE A: At the option of the utility, costs
of meter installations may be accounted for
separately from the cost of meters in accordance with the provisions of account 382,
Meter Installations. The practice of the utility, however, shall be consistent from year
to year and throughout the utility’s system.
NOTE B: The cost of removing and resetting
meters shall be charged to account 878,
Meter and House Regulator Expenses.

382 Meter installations.
A. This account shall include the
cost of labor and materials used, and
expenses incurred in connection with
the original installation of customer
meters.
B. When a meter installation is permanently retired from service, the cost
thereof shall be credited to this account.
ITEMS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Cocks.
Locks.
Labor.
Meter bars.
Pipe and fittings.
Seals.
Shelves.
Swivels and bushings.
Transportation.

721

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00731

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

NOTE: At the option of the utility, meter
installations may be accounted for as part of
the cost installed of meters, in accordance
with the provisions of account 381, Meters.
The practice of the utility, however, shall be
consistent from year to year and throughout
the utility’s system.

383 House regulators.
A. This account shall include the
cost installed of house regulators
whether actually in service or held in
reserve.
B. When a house regulator is permanently retired from service, the installed cost thereof shall be credited to
this account.
ITEMS

385 Industrial measuring and regulating station equipment.
This account shall include the cost of
special and expensive installations of
measuring and regulating station
equipment, located on the distribution
system, serving large industrial customers.
ITEMS
(See account 378 for items.)
NOTE A: Do not include in this account
measuring and regulating station equipment
serving main line industrial customers. (See
account 369.
NOTE B: By-passes outside of governor pits
are includible in account 376, Mains.

1. House regulator.
House regulator installations:
2. Cocks.
3. Labor.
4. Locks.
5. Pipe and fittings.
6. Regulator vents.
7. Swivels and bushings.
8. Transportation.

386 Other property on customers’ premises.

NOTE: At the option of the utility, costs of
house regulator installations may be accounted for separately from the cost of house
regulators in accordance with the provisions
of account 384, House Regulator Installations. The practice of the utility, however,
shall be consistent from year to year and
throughout the utility’s system.

387 Other equipment.

This account shall include the cost,
including first setting and connecting,
of equipment owned by the utility installed on customer premises which is
not includible in other accounts.

This account shall include the cost
installed of all other distribution system equipment not provided for in the
foregoing accounts, including street
lighting equipment.
ITEMS

384 House regulator installations.
A. This account shall include the
cost of labor and materials used and
expenses incurred in connection with
the original installation of house regulators.
B. When a house regulator installation is permanently retired from service, the cost thereof shall be credited
to this account.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1.
2.
3.
4.
5.
6.
7.

1. Carbon monoxide tester and indicators.
2. Explosimeters.
3. Fire extinguisher.
4. Gas masks.
5. Lockers.
6. Portable pump.
7. Recording gauges.
8. Street lighting equipment.
9. Test meters.
10. Watchmen’s clocks.

388

Cocks.
Labor.
Locks.
Pipe and fittings.
Regulator vents.
Swivels and bushings.
Transportation.

Asset retirement costs for distribution plant.

This account shall include asset retirement costs on plant included in the
distribution plant function.
389 Land and land rights.

NOTE: At the option of the utility, house
regulator installations may be accounted for
as part of the cost installed of house regulators in accordance with the provisions of
account 383. House Regulators. The practice,
however, shall be consistent from year to
year and throughout the utility’s system.

This account shall include the cost of
land and land rights used for utility
purposes, the cost of which is not properly includible in other land and land
rights accounts. (See gas plant instruction 7.)

722

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00732

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
390 Structures and improvements.
This account shall include the cost in
place of structures and improvements
used for utility purposes, the cost of
which is not properly includible in
other structures and improvements accounts. (See gas plant instruction 8.)
391 Office furniture and equipment.
This account shall include the cost of
office furniture and equipment owned
by the utility and devoted to utility
service, and not permanently attached
to buildings, except the cost of such
furniture and equipment which the
utility elects to assign to other plant
accounts on a functional basis.
ITEMS
1. Book cases and shelves.
2. Desks, chairs, and desk equipment.
3. Drafting-room equipment.
4. Filing, storage and other cabinets.
5. Floor covering.
6. Library and library equipment.
7. Mechanical office equipment such as accounting machines, typewriters, etc.
8. Safes.
9. Tables.

392 Transportation equipment.
This account shall include the cost of
transportation vehicles used for utility
purposes.
ITEMS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Airplanes.
Automobiles.
Bicycles.
Electrical vehicles.
Motor trucks.
Motorcycles.
Repair cars or trucks.
Tractors and trailers.
Other transportation vehicles.

393 Stores equipment.
This account shall include the cost of
equipment used for the receiving, shipping, handling and storage of materials
and supplies.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Chain falls.
2. Counters.
3. Cranes (portable).
4. Elevating and stacking equipment (portable).
5. Hoists.
6. Lockers.
7. Scales.
8. Shelving.

Pt. 201
9. Storage bins.
10. Trucks, hand and power driven.
11. Wheelbarrows.

394 Tools, shop and garage equipment.
This account shall include the cost of
tools, implements, and equipment used
in construction, repair work, general
shops and garages and not specifically
provided for or includible in other accounts.
ITEMS
1. Air compressors.
2. Anvils.
3. Automobile repair shop equipment.
4. Battery charging equipment.
5. Belts, shafts and countershafts.
6. Boilers.
7. Cable pulling equipment.
8. Concrete mixers.
9. Derricks.
10. Drill presses.
11. Electric equipment.
12. Engines.
13. Forges.
14. Foundations and settings specially constructed for equipment in this account and
not expected to outlast the equipment for
which provided.
15. Furnaces.
16. Gas producers.
17. Gasoline pumps, oil pumps, and storage
tanks.
18. Greasing tools and equipment.
19. Hoists.
20. Ladders.
21. Lathes.
22. Machine tools.
23. Motor driven tools.
24. Motors.
25. Pipe threading and cutting tools.
26. Pneumatic tools.
27. Pumps.
28. Riveters.
29. Smithing equipment.
30. Tool racks.
31. Vises.
32. Welding apparatus.
33. Work benches.

395 Laboratory equipment.
This account shall include the cost
installed of laboratory equipment used
for general laboratory purposes and not
specially provided for or includible in
other departmental or functional plant
accounts.
ITEMS
1. Balances and scales.
2. Barometers.
3. Calorimeters-bomb,
types, etc.

723

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00733

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

flow,

recording

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

4. Electric furnaces.
5. Gas burning equipment.
6. Gauges.
7. Glassware, beakers, burettes, etc.
8. Humidity testing apparatus.
9. Laboratory hoods.
10. Laboratory tables and cabinets.
11. Muffles.
12. Oil analysis apparatus.
13. Piping.
14. Specific gravity apparatus.
15. Standard bottles for meter prover testing.
16. Stills.
17. Sulphur and ammonia apparatus.
18. Tar analysis apparatus.
19. Thermometers—indicating and recording.
20. Any other item of equipment for testing
gas, fuel, flue gas, water, residuals, etc.

396 Power operated equipment.

ITEMS
1. Carrier terminal equipment including repeaters, power supply equipment, transmitting and receiving sets.
2. Microwave equipment, including power
supply equipment, transmitters, amplifiers,
paraboloids, towers, reflectors, receiving
equipment, etc.
3. Radio equipment, fixed and mobile, including antenna, power equipment, transmitters and receivers, and portable receivertransmitter units.
4. Telephone equipment including switchboards, power and testing equipment, conductors, pole lines, etc.

398 Miscellaneous equipment.
This account shall include the cost of
equipment, apparatus, etc., used and
useful in gas operations, which is not
includible in any other account.
ITEMS

This account shall include the cost of
power operated equipment used in construction or repair work exclusive of
equipment includible in other accounts. Include, also, the tools and accessories acquired for use with such
equipment and the vehicle on which
such equipment is mounted.
ITEMS
1. Air compressors, including driving unit
and vehicle.
2. Back filling machines.
3. Boring machines.
4. Bulldozers.
5. Cranes and hoists.
6. Diggers.
7. Engines.
8. Pile drivers.
9. Pipe cleaning machines.
10. Pipe coating or wrapping machines.
11. Tractors—Crawler type.
12. Trenchers.
13. Other power operated equipment.

1.
2.
3.
4.
5.
6.
7.
8.

Hospital and infirmary equipment.
Kitchen equipment.
Operator’s cottage furnishings.
Radios.
Recreation equipment.
Restaurant equipment.
Soda fountains.
Other miscellaneous equipment.

NOTE: Miscellaneous equipment of the nature indicated above wherever practicable
shall be assigned to the utility plant accounts on a functional basis.

399 Other tangible property.
This account shall include the cost of
tangible utility plant not provided for
elsewhere.
399.1 Asset retirement costs for general plant.
This account shall include asset retirement costs on plant included in the
general plant function.

NOTE: It is intended that this account include only such large units as are generally
self-propelled or mounted on movable equipment.

Income Chart of Accounts
1. UTILITY OPERATING INCOME
OPERATING EXPENSES

lpowell on DSK54DXVN1OFR with $$_JOB

397 Communication equipment.
This account shall include the cost
installed of telephone, telegraph and
wireless equipment for general use in
connection with the utility’s gas operations. (See account 370 for communication equipment used wholly or predominantly in connection with operation and maintenance of the transmission system.)

400 Operating revenues.
401 Operation expense.
402 Maintenance expense.
403 Depreciation expense.
404.1 Amortization and depletion of producing natural gas land and land rights.
404.2 Amortization of underground storage
land and land rights.
404.3 Amortization of other limited-term gas
plant.
405 Amortization of other gas plant.

724

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00734

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
406 Amortization of gas plant acquisition adjustments.
407.1 Amortization of property losses, unrecovered plant and regulatory study costs.
407.2 Amortization of conversion expense.
407.3 Regulatory debits.
407.4 Regulatory credits.
408 [Reserved]
408.1 Taxes other than income taxes, utility
operating income.
409 [Reserved]
409.1 Income taxes, utility operating income.
410 [Reserved]
410.1 Provision for deferred income taxes,
utility operating income.
411 [Reserved]
411.1 Provision for deferred income taxes—
Credit, utility operating income.
411.3 [Reserved]
411.4 Investment tax credit adjustments,
utility operations.
411.6 Gains from disposition of utility plant.
411.7 Losses from disposition of utility plant.
Total utility operating expenses.
OTHER OPERATING INCOME

412 Revenues from gas plant leased to others.
413 Expenses of gas plant leased to others.
414 Other utility operating income. Net utility operating income.
2. OTHER INCOME AND DEDUCTIONS
A. OTHER INCOME

415 Revenues from merchandising, jobbing
and contract work.
416 Costs and expenses of merchandising, jobbing and contract work.
417 Revenues from nonutility operations.
417.1 Expenses of nonutility operations.
418 Nonoperating rental income.
418.1 Equity in earnings of subsidiary companies.
419 Interest and dividend income.
419.1 Allowance for other funds used during
construction.
421 Miscellaneous nonoperating income.
421.1 Gain on disposition of property. Total
other income.

lpowell on DSK54DXVN1OFR with $$_JOB

B. OTHER INCOME DEDUCTIONS

421.2 Loss on disposition of property.
425 Miscellaneous amortization.
426 [Reserved]
426.1 Donations.
426.2 Life insurance.
426.3 Penalties.
426.4 Expenditures for certain civic, political
and related activities.
426.5 Other deductions. Total other income
deductions. Total other income and deductions.

Pt. 201
C. TAXES APPLICABLE TO OTHER INCOME AND
DEDUCTIONS

408.2 Taxes other than income taxes, other
income and deductions.
409.2 Income taxes, other income and deductions.
410.2 Provision for deferred income taxes,
other income and deductions.
411.2 Provision for deferred income taxes—
Credit, other income and deductions.
411.5 Investment tax credit adjustments,
nonutility operations.
420 Investment tax credits. Total taxes on
other income and deductions. Net other income and deductions.
3. INTEREST CHARGES
427 Interest on long-term debt.
428 Amortization of debt discount and expense.
428.1 Amortization of loss on reacquired debt.
429 Amortization of premium on debt—Credit.
429.1 Amortization of gain on reacquired
debt—Credit.
430 Interest on debt to associated companies.
431 Other interest expense.
432 Allowance for borrowed funds used during
construction—Credit. Net interest charges.
4. EXTRAORDINARY ITEMS
434 Extraordinary income.
435 Extraordinary deductions.
409.3 Income taxes, extraordinary items. Net
income

Income Accounts
400 Operating revenues.
There shall be shown under this caption the total amount included in the
gas operating revenue accounts provided herein.
401 Operation expense.
There shall be shown under this caption the total amount included in the
gas operation expense accounts provided herein. (See note to operating expense instruction 3.)
402 Maintenance expense.
There shall be shown under this caption the total amount included in the
gas maintenance expense accounts provided herein.
403 Depreciation expense.
A. This account shall include the
amount of depreciation expense for all
classes of depreciable gas plant in service except such depreciation expense as

725

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00735

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

is chargeable to clearing accounts or to
account 416, Costs and Expenses of
Merchandising, Jobbing and Contract
Work.
B. The utility shall keep such records
of property and property retirements
as will reflect the service life of property which has been retired and aid in
estimating probable service life by
mortality, turnover, or other appropriate methods; and also such records
as will reflect the percentage of salvage and cost of removal for property
retired from each account, or subdivision thereof, for depreciable gas plant.
NOTE A: Depreciation expense applicable to
property included in account 104, Gas Plant
Leased to Others, shall be charged to account 413, Expenses of Gas Plant Leased to
Others.
NOTE B: Depreciation expense applicable to
transportation equipment, shop equipment,
tools, work equipment, power operated
equipment and other general equipment may
be charged to clearing accounts as necessary
in order to obtain a proper distribution of expenses between construction and operation.

403.1 Depreciation expense for asset
retirement costs.
This account shall include the depreciation expense for asset retirement
costs included in gas utility plant in
service.
404.1 Amortization and depletion of
producing natural gas land and
land rights.
A. This account shall include charges
for amortization and depletion of producing natural gas land and land
rights. (See account 111, Accumulated
Provision for Amortization and Depletion of Gas Utility Plant).
B. The charges to this account shall
be made in such manner as to distribute the cost of producing natural
gas land and land rights over the period of their benefit to the utility,
based upon the exhaustion of the natural gas deposits recoverable from such
land and land rights.

lpowell on DSK54DXVN1OFR with $$_JOB

404.2 Amortization of underground
storage land and land rights.
A. This account shall include charges
for amortization of land and land
rights of underground storage projects
for natural gas. (See account 111, Accu-

mulated Provision for Amortization
and Depletion of Gas Utility Plant.)
B. The charges to this account shall
be made in such manner as to distribute the cost of amortizable land
and land rights over the period of their
benefit to the utility, and with respect
to any land or land rights which include native gas in the storage reservoir, such amounts shall be amortized or depleted on the basis of production of such native gas after the
volume of stored gas has been withdrawn from the reservoir.
404.3 Amortization of other limitedterm gas plant.
This account shall include amortization charges applicable to amounts included in the gas plant accounts for
limited-term franchises, licenses, patent rights limited-term interests in
land, and expenditures on leased property where the service life of the improvements is terminable by action of
the lease. The charges to this account
shall be such as to distribute the book
cost of each investment as evenly as
may be over the period of its benefit to
the utility. (See account 111, Accumulated Provision for Amortization and
Depletion of Gas Utility Plant.)
405 Amortization of other gas plant.
A. When authorized by the Commission, this account shall include charges
for amortization of intangible or other
gas utility plant, which does not have
a definite or terminable life and which
is not subject to charges for depreciation expense.
B. This account shall be supported in
such detail as to show the amortization
applicable to each investment being
amortized, together with the book cost
of the investment and the period over
which it is being written off.
406 Amortization of gas plant acquisition adjustments.
This account shall be debited or credited, as the case may be, with amounts
includible in operating expenses, pursuant to approval or order of the Commission, for the purpose of providing
for the extinguishment of the amount
in account 114, Gas Plant Acquisition
Adjustments.

726

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00736

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
407.1 Amortization of property losses,
unrecovered plant and regulatory
study costs.
This account shall be charged with
amounts credited to Account 182.1, Extraordinary Property Losses, and Account 182.2 Unrecovered Plant and Regulatory Study Costs, when the Commission has authorized the amount in
the latter account to be amortized by
charges to gas operating expenses.
407.2 Amortization of conversion expenses.
This account shall be charged with
amortization of amounts authorized by
the Commission to be included in Account 186, Miscellaneous Deferred Debits, for expenses incurred in the conversion of distribution plant from manufactured gas service to natural gas
service.
407.3 Regulatory debits.
This account shall be debited, when
appropriate, with the amounts credited
to Account 254, Other Regulatory Liabilities, to record regulatory liabilities imposed on the utility by the
ratemaking actions of regulatory agencies. This account shall also be debited,
when appropriate, with the amounts
credited to Account 182.3, Other Regulatory Assets, concurrent with the recovery of such amounts in rates.
407.4 Regulatory credits.
This account shall be credited, when
appropriate, with the amounts debited
to Account 182.3, Other Regulatory Assets, to establish regulatory assets.
This account shall also be credited,
when appropriate, with the amounts
debited to Account 254, Other Regulatory Liabilities, concurrent with the
return of such amounts to customers
through rates.
408 [Reserved]
SPECIAL INSTRUCTIONS

lpowell on DSK54DXVN1OFR with $$_JOB

Accounts 408.1 and 408.2
A. These accounts shall include the
amounts of ad valorem, gross revenue or
gross receipts, taxes, state unemployment
insurance, franchise taxes, federal excise
taxes, social security taxes, and all other
taxes assessed by federal, state, county, mu-

Pt. 201
nicipal, or other local governmental authorities, except income taxes.
B. These accounts shall be charged in each
accounting period with the amounts of taxes
which are applicable thereto, with concurrent credits to account 236, Taxes Accrued,
or account 165, Prepayments, as appropriate.
When it is not possible to determine the
exact amounts of taxes, the amounts shall be
estimated and adjustments made in current
accruals as the actual tax levies become
known.
C. The charges to these accounts shall be
made or supported so as to show the amount
of each tax and the basis upon which each
charge is made. In the case of a utility rendering more than one utility service, taxes of
the kind includible in these accounts shall be
assigned directly to the utility department
the operation of which gave rise to the tax in
so far as a specific utility department, it
shall be distributed among the utility departments or nonutility operations on an equitable basis after appropriate study to determine such basis.
NOTE A: Special assessments for street and
similar improvements shall be included in
the appropriate utility plant or nonutility
property account.
NOTE B: Taxes specifically applicable to
construction shall be included in the cost of
construction.
NOTE C: Gasoline and other sales taxes
shall be charged as far as practicable to the
same amount as the materials on which the
tax is levied.
NOTE D: Social security and other forms of
so-called payroll taxes shall be distributed to
utility departments and to nonutility functions on a basis related to payroll. Amounts
applicable to construction shall be charged
to the appropriate plant accounts.
NOTE E: Interest on tax refunds or deficiencies shall not be included in these accounts but in account 419, Interest and Dividend Income, or 431, Other Interest Expense,
as appropriate.

408.1 Taxes other than income taxes,
utility operating income.
This account shall include those
taxes other than income taxes which
relate to utility operating income This
account shall be maintained so as to
allow ready identification of the various classes of taxes relating to Utility
Operating Income (by department),
Utility Plant Leased to Others and
Other Utility Operating Income.

727

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00737

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

408.2 Taxes other than income taxes,
other income and deductions.
This account shall include those
taxes other than income taxes which
relate to Other Income and Deductions.

eral income taxes (both positive and
negative), which relate to Other Income and Deductions.

409 [Reserved]

This account shall include the
amount of those local, state and federal income taxes (both positive and
negative), which relate to Extraordinary Items.

SPECIAL INSTRUCTIONS
Accounts 409.1, 409.2 and 409.3
A. These accounts shall include the
amounts of local, state and federal income
taxes on income properly accruable during
the period covered by the income statement
to meet the actual liability for such taxes.
Concurrent credits for the tax accruals shall
be made to account 236, Taxes Accrued, and
as the exact amounts of taxes become
known, the current tax accruals shall be adjusted by charges or credits to these accounts so that these accounts as nearly as
can be ascertained shall include the actual
taxes payable by the utility.
B. The accruals for income taxes shall be
apportioned among utility departments and
to Other Income and Deductions so that, as
nearly as practicable, each tax shall be included in the expenses of the utility department or Other Income and Deductions, the
income from which gave rise to the tax. The
tax effects relating to Interest Charges shall
be allocated between utility and nonutility
operations. The basis for this allocation
shall be the ratio of net investment in utility plant to net investment in nonutility
plant.
NOTE A: Taxes assumed by the utility on
interest shall be charged to account 431,
Other Interest Expense.
NOTE B: Interest on tax refunds or deficiencies shall not be included in these accounts but in account 419, Interest and Dividend Income, or account 431, Other Interest
Expense, as appropriate.

lpowell on DSK54DXVN1OFR with $$_JOB

409.1 Income taxes, utility operating income.
This account shall include the
amount of those local, state and federal income taxes which relate to utility operating income. This account
shall be maintained so as to allow
ready identification of tax effects (both
positive and negative) relating to Utility Operating Income (by department),
Utility Plant Leased to Others and
Other Utility Operating Income.
409.2 Income taxes, other income and
deductions.
This account shall include the
amount of those local, state and fed-

409.3 Income
items.

taxes,

410 [Reserved]
SPECIAL INSTRUCTIONS
Accounts 410.1, 410.2, 411.1 and 411.2
A. Accounts 410.1 and 410.2 shall be debited,
and Accumulated Deferred Income Taxes
shall be credited with amounts equal to any
current deferrals of taxes on income or any
allocations of deferred taxes originating in
prior periods, as provided by the texts of accounts 190, 281, 282 and 283. There shall not be
netted against entries required to be made to
these accounts any credit amounts appropriately includible in accounts 411.1 or 411.2.
B. Accounts 411.1 and 411.2 shall be credited, and Accumulated Deferred Income
Taxes shall be debited with amounts equal to
any allocations of deferred taxes originating
in prior periods or any current deferrals of
taxes on income, as provided by the texts of
accounts 190, 281, 282, and 283. There shall not
be netted against entries required to be made
to these accounts any debit amounts appropriately includible in accounts 410.1 or 410.2.

410.1 Provision for deferred income
taxes, utility operating income.
This account shall include the
amounts of those deferrals of taxes and
allocations of deferred taxes which relate to Utility Operating Income (by
department).
410.2 Provision for deferred income
taxes, other income and deductions.
This account shall include the
amounts of those deferrals of taxes and
allocations of deferred taxes which relate to other income and deductions.
411 [Reserved]
411.1 Provision for deferred income
taxes—Credit, utility operating income.
This account shall include the
amounts of those allocations of deferred taxes and deferrals of taxes,

728

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00738

Fmt 8010

extraordinary

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
credit, which relate to Utility Operating Income (by department).
411.2 Provision for deferred income
taxes—Credit, other income and deductions.
This account shall include the
amounts of those allocations of deferred taxes and deferrals of taxes,
credit, which relate to Other Income
and Deductions.
411.3 [Reserved]
SPECIAL INSTRUCTIONS
Accounts 411.4 and 411.5
A. Account 411.4 shall be debited with the
amounts of investment tax credits related to
gas utility property that are credited to account 255, Accumulated Deferred Investment
Tax Credits, by companies which do not
apply the entire amount of the benefits of
the investment credit as a reduction of the
overall income tax expense in the year in
which such credit is realized (see account
255).
B. Account 411.4 shall be credited with the
amounts debited to account 255 for proportionate amounts of tax credit deferrals allocated over the average useful life of gas utility property to which the tax credits relate
or such lesser period of time as may be
adopted and consistently followed by the
company.
C. Account 411.5 shall also be debited and
credited as directed in paragraphs A and B,
for investment tax credits related to nonutility property.

411.4 Investment tax credit adjustments, utility operations.
This account shall include the
amount of those investment tax credit
adjustments related to property used
in Utility Operations (by department).

lpowell on DSK54DXVN1OFR with $$_JOB

411.5 Investment tax credit adjustments, nonutility operations.
This account shall include the
amount of those investment tax credit
adjustments related to property used
in Nonutility Operations.
411.6 Gains from disposition of utility
plant.
A. This account shall include, as approved by the Commission, amounts relating to gains from the disposition of
future use utility plant including
amounts which were previously recorded in and transferred from account

Pt. 201
105, Gas Plant Held for Future Use and
account 105.1, Production Properties
Held for Future Use, under the provisions of paragraphs B, C, and D thereof.
Income taxes relating to gains recorded
in this account shall be recorded in account 409.1, Income Taxes, Utility Operating Income.
B. The utility shall record in this account gains resulting from the settlement of asset retirement obligations
related to utility plant in accordance
with the accounting prescribed in General Instruction 24.
411.7 Losses from disposition of utility
plant.
A. This account shall include, as approved by the Commission, amounts relating to losses from the disposition of
future use utility plant including
amounts which were previously recorded in and transferred from account
105, Gas Plant Held for Future Use and
account 105.1, Production Properties
Held for Future Use, under the provisions of paragraphs B, C, and D thereof.
Income taxes relating to losses recorded in this account shall be recorded in account 409.1, Income Taxes,
Utility Operating Income.
B. The utility shall record in this account losses resulting from the settlement of asset retirement obligations
related to utility plant in accordance
with the accounting prescribed in General Instruction 24.
411.10 Accretion expense.
This account shall be charged for accretion expense on the liabilities associated with asset retirement obligations included in account 230, Asset retirement obligations, related to gas
utility plant.
412 Revenues from gas plant leased to
others.
413 Expenses of gas plant leased to others.
A. These accounts shall include, respectively, revenues from gas property
constituting a distinct operating unit
or system leased by the utility to others, and which property is properly includible in account 104, Gas Plant
Leased to Others, and the expenses attributable to such property.

729

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00739

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

B. The detail of expenses shall be
kept or supported so as to show separately the following:
Operation.
Maintenance.
Depreciation.
Amortization.

ITEMS

NOTE: Related taxes shall be recorded in
account 408.1, Taxes Other Than Income
Taxes, Utility Operating Income, or account
409.1, Income Taxes, Utility Operating Income, as appropriate.

414 Other utility operating income.
A. This account shall include the revenues received and expenses incurred in
connection with the operations of utility plant, the book cost of which is included in account 118, Other Utility
Plant.
B. The expenses shall include every
element of cost incurred in such operations, including depreciation, rents,
and insurance.
NOTE: Related taxes shall be recorded in
account 408.1, Taxes Other Than Income
Taxes, Utility Operating Income, or account
409.1, Income Taxes, Utility Operating Income, as appropriate.

415 Revenues from merchandising, jobbing and contract work.
416 Costs and expenses of merchandising, jobbing and contract work.
A. These accounts shall include, respectively, all revenues derived from
the sale of merchandise and jobbing or
contract work, including any profit or
commission accruing to the utility on
jobbing work performed by it as agent
under contracts whereby it does jobbing work for another for a stipulated
profit or commission, and all expenses
incurred in such activities. Interest related income from installment sales
shall be recorded in Account 419, Interest and Dividend Income.
B. Records in support of these accounts shall be so kept as to permit
ready summarization of revenues, costs
and expenses by such major items as
are feasible.

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE B: Related taxes shall be recorded in
account 408.2, Taxes Other Than Income
Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and
Deductions, as appropriate.

NOTE A: The classification of revenues,
costs and expenses of merchandising, jobbing
and contract work as nonoperating, and thus
inclusion in this account, is for accounting
purposes. It does not preclude consideration
for justification to the contrary for ratemaking or other purpose.

Account 415:
1. Revenues from sale of merchandise and
from jobbing and contract work.
2. Discounts and allowances made in settlement of bills for merchandise and jobbing
work.
Account 416:
Labor:
1. Canvassing and demonstrating appliances in homes and other places for the purpose of selling appliances.
2. Demonstrating and selling activities in
sales rooms.
3. Installing appliances on customer premises where such work is done only for purchasers of appliances from the utility.
4. Installing piping or other property work
on a jobbing or contract basis.
5. Preparing advertising materials for appliance sales purposes.
6. Receiving and handling customer orders
for merchandise or for jobbing services.
7. Cleaning and tidying sales rooms.
8. Maintaining display counters and other
equipment used in merchandising.
9. Arranging merchandise in sales rooms
and decorating display windows.
10. Reconditioning repossessed appliances.
11. Bookkeeping and other clerical work in
connection with merchandise and jobbing activities.
12. Supervising merchandise and jobbing
operations.
Materials and expenses:
13. Advertising in newspapers, periodicals,
radio, television, etc.
14. Cost of merchandise sold and of materials used in jobbing work.
15. Stores expenses on merchandise and
jobbing stocks.
16. Fees and expenses of advertising and
commercial artists’ agencies.
17. Printing booklets, dodgers, and other
advertising data.
18. Premiums given as inducement to buy
appliances.
19. Light, heat, and power.
20. Depreciation on equipment used primarily for merchandise and jobbing operations.
21. Rent of sales rooms or of equipment.
22. Transportation expense in delivery and
pick-up of appliances by utility’s facilities or
by others.
23. Stationery and office supplies and expenses.
24. Losses from uncollectible merchandise
and jobbing accounts.

730

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00740

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
417 Revenues from nonutility operations.

418.1 Equity in earnings of subsidiary
companies.

417.1 Expenses of nonutility operations.

This account shall include the utility’s equity in the earnings or losses of
subsidiary companies for the year.

A. These accounts shall include revenues and expenses applicable to operations which are nonutility in character but nevertheless constitute a distinct operating activity of the enterprise as a whole, such as the operation
of an ice department where applicable
statutes do not define such operation
as a utility, or the operation of a servicing organization for furnishing supervision, management, engineering, and
similar services to others.
B. The expenses shall include all elements of costs incurred in such operations, and the accounts shall be maintained so as to permit ready summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.
NOTE B: Related taxes shall be recorded in
account 408.2, Taxes Other Than Income
Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and
Deductions, as appropriate.

418 Nonoperating rental income.
A. This account shall include all rent
revenues and related expenses of land,
buildings, or other property included in
account 121, Nonutility Property,
which is not used in operations covered
by accounts 417 or 417.1.
B. The expenses shall include all elements of costs incurred in the ownership and rental of property and the accounts shall be maintained so as to
permit ready summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

NOTE: Related taxes shall be recorded in
account 408.2, Taxes Other Than Income
Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and
Deductions, as appropriate.

419 Interest and dividend income.
A. This account shall include interest
revenues on securities, loans, notes, advances, special deposits, tax refunds
and all other interest-bearing assets,
and dividends on stocks of other companies, whether the securities on which
the interest and dividends are received
are carried as investments or included
in sinking or other special fund accounts.
B. This account may include the pro
rata amount necessary to extinguish
(during the interval between the date
of acquisition and the date of maturity) the difference between the cost to
the utility and the face value of interest-bearing securities. Amounts thus
credited or charged shall be concurrently included in the accounts in
which the securities are carried.
C. Where significant in amount expenses, excluding operating taxes and
income taxes, applicable to security investments and to interest and dividend
revenues thereon shall be charged hereto.
NOTE A: Related taxes shall be recorded in
account 408.2, Taxes Other Than Income
Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and
Deductions, as appropriate.
NOTE B: Interest accrued, the payment of
which is not reasonably assured, dividends
receivable which have not been declared or
guaranteed, and interest or dividends upon
reacquired securities issued or assumed by
the utility shall not be credited to this account.

419.1 Allowance for other funds used
during construction.
This account shall include concurrent credits for allowance for other
funds used during construction, not to
exceed amounts computed in accordance with the formula prescribed in
Gas Plant Instruction 3(17).
420 Investment tax credits.
This account shall be credited as follows with investment tax credit
amounts not passed on to customers:

731

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00741

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

(a) By amounts equal to debits to accounts 411.4, Investment Tax Credit
Adjustments, Utility Operations, and
411.5, Investment Tax Credit Adjustments, Nonutility Operations, for investment tax credits used in calculating income taxes for the year when
the company’s accounting provides for
nondeferral of all or a portion of such
credits; and,
(b) By amounts equal to debits to account 255, Accumulated Deferred Investment Tax Credits, for proportionate amounts of tax credit deferrals
allocated over the average useful life of
the property to which the tax credits
relate, or such lesser period of time as
may be adopted and consistently used
by the company.
421

Miscellaneous nonoperating income.
This account shall include all revenue and expense items except taxes
properly includible in the income account and not provided for elsewhere.
Related taxes shall be recorded in account 408.2, Taxes Other Than Income
Taxes, Other Income and Deductions,
or account 409.2, Income Taxes, Other
Income and Deductions, as appropriate.
ITEMS

421.2 Loss on disposition of property.
This account shall be charged with
the loss on the sale, conveyance, exchange or transfer of utility or other
property to another. Amounts relating
to losses on land and land rights held
for future use recorded in accounts 105,
Gas Plant Held for Future Use and
105.1, Production Properties Held for
Future Use, will be accounted for as
prescribed in paragraphs B, C, and D
thereof. (See gas plant instructions 5F,
7E, and 10E.) The reduction in income
taxes relating to losses recorded in this
account shall be recorded in account
409.2, Income Taxes, Other Income and
Deductions.
425 Miscellaneous amortization.

1. Profit on sale of timber. (See gas plant
instruction 7C.)
2. Profits from operations of others realized by the utility under contracts.
3. Gains on disposition of investments.
Also gains on reacquisition and resale or retirement of utilities debt securities when the
gain is not amortized and used by a jurisdictional regulatory agency to reduce embedded
debt cost in establishing rates. See General
Instruction 17.
4. This account shall include the accretion
expense on the liability for an asset retirement obligation included in account 230,
Asset retirement obligations, related to nonutility plant.
5. This account shall include the depreciation expense for asset retirement costs related to nonutility plant.
6. The utility shall record in this account
gains resulting from the settlement of asset
retirement obligations related to nonutility
plant in accordance with the accounting prescribed in General Instruction 24.
lpowell on DSK54DXVN1OFR with $$_JOB

property to another. Amounts relating
to gains on land and land rights held
for future use recorded in accounts 105,
Gas Plant Held for Future Use and
105.1, Production Properties Held for
Future Use, will be accounted for as
prescribed in paragraphs B, C, and D
thereof. (See gas plant instructions 5F,
7E, and 10E.) Income taxes on gains recorded in this account shall be recorded in account 409.2, Income Taxes,
Other Income and Deductions.

421.1 Gain on disposition of property.
This account shall be credited with
the gain on the sale, conveyance, exchange or transfer of utility or other

This account shall include amortization charges not includible in other accounts which are properly deductible in
determining the income of the utility
before interest charges. Charges includible herein, if significant in amount,
must be in accordance with an orderly
and systematic amortization program.
ITEMS
1. Amortization of utility plant acquisition
adjustments, or of intangibles included in
utility plant in service when not authorized
to be included in utility operating expenses
by the Commission.
2.
Other
miscellaneous
amortization
charges allowed to be included in this account by the Commission.
SPECIAL INSTRUCTIONS
Accounts 426.1, 426.2, 426.3, 426.4 and 426.5
These accounts shall include miscellaneous
expense items which are nonoperating in nature but which are properly deductible before
determining total income before interest
charges.

732

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00742

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
NOTE: The classification of expenses as
nonoperating and their inclusion in these accounts is for accounting purposes. It does
not preclude Commission consideration of
proof to the contrary for ratemaking or
other purposes.

426.1 Donations.
This account shall include all payments or donations for charitable, social or community welfare purposes.
426.2 Life insurance.
This account shall include all payments for life insurance of officers and
employees where company is beneficiary (net premiums less increase in
cash surrender value of policies).
426.3 Penalties.
This account shall include payments
by the company for penalties or fines
for violation of any regulatory statutes
by the company or its officials.
426.4 Expenditures for certain civic, political and related activities.
This account shall include expenditures for the purpose of influencing
public opinion with respect to the election or appointment of public officials,
referenda, legislation, or ordinances
(either with respect to the possible
adoption of new referenda, legislation
or ordinances or repeal or modification
of existing referenda, legislation or ordinances) or approval, modification, or
revocation of franchises; or for the purpose of influencing the decisions of
public officials, but shall not include
such expenditures which are directly
related to appearances before regulatory or other governmental bodies in
connection with the reporting utility’s
existing or proposed operations.
426.5 Other deductions.
This account shall include other miscellaneous expenses which are nonoperating in nature, but which are properly deductible before determining
total income before interest charges.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Loss relating to investments in securities written-off or written-down.
2. Loss on sale of investments.
3. Loss on reacquisition, resale or retirement of utility’s debt securities, when the
loss is not amortized and used by a jurisdic-

Pt. 201
tional regulatory agency to increase embedded debt cost in establishing rates. See General Instruction 17.
4. Preliminary survey and investigation expenses related to abandoned projects, when
not written-off to the appropriate operating
expense account.
5. Costs of preliminary abandonment costs
recorded in accounts 182.1, Extraordinary
Property Losses, and 182.2, Unrecovered
Plant and Regulatory Study Costs, not allowed to be amortized to account 407.1, Amortization of Property Losses, Unrecovered
Plant and Regulatory Study Costs.
6. The utility shall record in this account
losses resulting from the settlement of asset
retirement obligations related to nonutility
plant in accordance with the accounting prescribed in General Instruction 24.

427 Interest on long-term debt.
A. This account shall include the
amount of interest on outstanding
long-term debt issued or assumed by
the utility, the liability for which is included in account 221, Bonds, or account 224, Other Long-Term Debt.
B. This account shall be so kept or
supported as to show the interest accruals on each class and series of longterm debt.
NOTE: This account shall not include interest on nominally issued or nominally outstanding long-term debt, including securities
assumed.

428 Amortization of debt discount and
expense.
A. This account shall include the amortization of unamortized debt discount and expense on outstanding longterm debt. Amounts charged to this account shall be credited concurrently to
accounts 181, Unamortized Debt Expense, and 226, Unamortized Discount
on Long-Term Debt—Debit.
B. This account shall be so kept or
supported as to show the debt discount
and expense on each class and series of
long-term debt.
428.1 Amortization of loss on reacquired debt.
A. This account shall include the amortization of the losses on reacquisition of debt. Amounts charged to this
account shall be credited concurrently
to account 189, Unamortized Loss on
Reacquired Debt.
B. This account shall be maintained
so as to allow ready identification of

733

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00743

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

the loss amortized applicable to each
class and series of long-term debt reacquired. See General Instruction 17.
429 Amortization of premium on debt—
Credit.
A. This account shall include the amortization of unamortized net premium
on
outstanding
long-term
debt.
Amounts credited to this account shall
be charged concurrently to account 225,
Unamortized Premium on Long-Term
Debt.
B. This account shall be so kept or
supported as to show the premium on
each class and series of long-term debt.
429.1 Amortization of gain on reacquired debt—Credit.
A. This account shall include the amortization of the gains realized from reacquisition of debt. Amounts credited
to this account shall be charged concurrently to account 257, Unamortized
Gain on Reacquired Debt.
B. This account shall be maintained
so as to allow ready identification of
the gains amortized applicable to each
class and series of long-term debt reacquired. See General Instruction 17.
430 Interest on debt to associated companies.
A. This account shall include interest
accrued on amounts included in account 223, Advances from Associated
Companies, and on all other obligations to associated companies.
B. The records supporting the entries
to this account shall be so kept as to
show to whom the interest is to be
paid, the period covered by the accrual,
the rate of interest and the principal
amount of the advances or other obligations on which the interest is accrued.
431 Other interest expense.
This account shall include all interest charges not provided for elsewhere.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Interest on notes payable on demand or
maturing one year or less from date and on
open accounts, except notes and accounts
with associated companies.
2. Interest on customers’ deposits.
3. Interest on claims and judgments, tax
assessments, and assessments for public improvements past due.

4. Income and other taxes levied upon
bondholders of utility and assumed by it.

432 Allowance for borrowed funds used
during construction—Credit.
This account shall include concurrent credits for allowance for borrowed
funds used during construction, not to
exceed amounts computed in accordance with the formula prescribed in
Gas Plant Instruction 3(17).
434 Extraordinary income.
This account shall be credited with
gains of unusual nature and infrequent
occurrence, which would significantly
distort the current year’s income computed before Extraordinary Items, if
reported other than as extraordinary
items. Income tax relating to the
amounts recorded in this account shall
be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
435 Extraordinary deductions.
This account shall be debited with
losses of unusual nature and infrequent
occurrence, which would significantly
distort the current year’s income computed before Extraordinary Items, if
reported other than as extraordinary
items. Income tax relating to the
amounts recorded in this account shall
be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
Retained Earnings Chart of Accounts
433
436
437
438
439

Balance transferred from income.
Appropriations of retained earnings.
Dividends declared—preferred stock.
Dividends declared—common stock.
Adjustments to retained earnings.

Retained Earnings Accounts
433 Balance transferred from income.
This account shall include the net
credit or debit transferred from income
for the year.
436 Appropriations of retained earnings.
This account shall include appropriations of retained earnings.

734

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00744

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
ITEMS
1. Appropriations required under terms of
mortgages, orders of courts, contracts, or
other agreements.
2. Appropriations required by action of regulatory authorities.
3. Other appropriations made at option of
utility for specific purposes.

437

Dividends
stock.

declared—preferred

A. This account shall include
amounts declared payable out of retained earnings as dividends on actually outstanding preferred or prior lien
capital stock issued by the utility.
B. Dividends shall be segregated for
each class and series of preferred stock
as to those payable in cash, stock and
other forms. If not payable in cash, the
medium of payment shall be described
with sufficient detail to identify it.
438 Dividends declared—common stock.
A. This account shall include
amounts declared payable out of retained earnings as dividends on actually outstanding common capital stock
issued by the utility.
B. Dividends shall be segregated for
each class of common stock as to those
payable in cash, stock and other forms.
If not payable in cash, the medium of
payment shall be described with sufficient detail to identify it.

lpowell on DSK54DXVN1OFR with $$_JOB

439 Adjustments to retained earnings.
A. This account shall, with prior
Commission approval, include significant nonrecurring transactions accounted for as prior period adjustments, as follows:
(1) Correction of an error in the financial statements of a prior year.
(2) Adjustments that result from realization of income tax benefits of preacquisition
operating
loss
carryforwards of purchased subsidiaries.
All other items of profit and loss recognized during a year shall be included in
the determination of net income for
that year.
B. Adjustments, charges, or credits
due to losses on reacquisition, resale or
retirement of the company’s own capital stock shall be included in this account. (See account 210, Gain on Resale

Pt. 201
or Cancellation of Reacquired Capital
Stock, for the treatment of gains.)
Operating Revenue Chart of Accounts
1. SALES OF GAS
480
481
482
483
484
485

Residential sales.
Commercial and industrial sales.
Other sales to public authorities.
Sales for resale.
Interdepartmental sales.
Intracompany transfers.
2. OTHER OPERATING REVENUES

487 Forfeited discounts.
488 Miscellaneous service revenues.
489.1 Revenues from transportation of gas of
others through gathering facilities.
489.2 Revenues from transportation of gas of
others through transmission facilities.
489.3 Revenues from transportation of gas of
others through distribution facilities.
489.4 Revenues from storing gas of others.
490 Sales of products extracted from natural
gas.
491 Revenues from natural gas processed by
others.
492 Incidental gasoline and oil sales.
493 Rent from gas property.
494 Interdepartmental rents.
495 Other gas revenues.
496 Provision for rate refunds.

Operating Revenue Accounts
480 Residential sales.
A. This account shall include the net
billing for gas supplied for residential
or domestic purposes.
B. Records shall be maintained so
that the quantity of gas sold and the
revenues received under each rate
schedule shall be readily available.
NOTE: When gas supplied through a single
meter is used for both residential and commercial purposes, the total revenue shall be
included in this account or account 481, Commercial and Industrial Sales, according to
the rate schedule which is applied. If the
same rate schedules are applicable to both
residential and commercial service, classification shall be according to principal use.

481 Commercial and industrial sales.
A. This account shall include the net
billing for gas supplied to commercial
and industrial customers.
B. Records shall be maintained so
that the quantity of gas sold and revenue received under each rate schedule
shall be readily available.

735

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00745

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

lpowell on DSK54DXVN1OFR with $$_JOB

C. Records shall be maintained so as
to show separately the revenues from
commercial and industrial customers,
as follows:
Large commercial and industrial sales
(wherein shall be included the revenues
from customers which use large volumes of gas, generally in excess of
200,000 Dth per year or approximately
800 Dth per day of normal requirements. Reasonable deviations are permissible in order that transfers of customers between the large and small
classifications may be minimized).
Small commercial and industrial sales
(wherein shall be included the revenues
from customers which use volumes of
gas generally less than 200,000 Mcf per
year or less than approximately 800
Mcf per day of normal requirements).

utilities or to public authorities for resale purposes.
B. Records shall be maintained so
that there shall be readily available
the revenues for each customer under
each revenue schedule and the billing
determinants, as applicable, i.e., volume of gas (actual and billing), contract demand, maximum actual demand, billing demand, and Btu adjustment factor.
NOTE: Revenues from gas supplied to other
public utilities for use by them and not for
distribution, shall be included in account 481,
Commercial and Industrial Sales, unless supplied under the same contract as and not
readily separable from revenues includible in
this account.

484 Interdepartmental sales.

NOTE: When gas supplied through a single
meter is used for both commercial and residential purposes, the total revenue shall be
included in this account or in account 480,
Residential Sales, according to the rate
schedule which is applied. If the same rate
schedules are applicable to both residential
and commercial service, classification shall
be according to principal use.

A. This account shall include
amounts charged by the gas department at tariff or other specified rates
for gas supplied by it to other utility
departments.
B. Records shall be maintained so
that the quantity of gas supplied each
other department and the charge made
therefor shall be readily available.

482 Other sales to public authorities.

485 Intracompany transfers

A. This account shall include the net
billing for gas supplied to municipalities or divisions or agencies of Federal
or State Governments, under special
contracts or agreements or service
classifications, applicable only to public authorities, for general governmental and institutional purposes, except any revenues under rate schedules
the revenues from which are includible
in account 481 or 483, and except any
revenues from gas used for purposes
such as powerplant fuel for publicly
owned electric systems, manufacturing
processes of arsenals, etc., and other
major uses of gas which appropriately
may be classified in account 481, Commercial and Industrial Sales.
B. Records shall be maintained so
that the quantity of gas sold and the
revenue received from each customer
and from each major special contract
shall be readily available.

A. This account shall include, for informational purposes only, the amount
recorded for gas supplied by the production division when the price is not
determined by a cost-of-service rate
proceeding.
B. Records shall be maintained so
that the quality of gas transferred
shall be readily available.
487 Forfeited discounts.
This account shall include the
amount of discounts forfeited or additional charges imposed because of the
failure of customers to pay gas bills on
or before a specified date.
488 Miscellaneous service revenues.
This account shall include revenues
from all miscellaneous services and
charges billed to customers which are
not specifically provided for in other
accounts.

483 Sales for resale.

ITEMS

A. This account shall include the net
billing for gas supplied to other gas

1. Fees for changing, connecting, or disconnecting service.

736

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00746

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
2. Profit on maintenance of appliances, piping, gas firing, and other utilization facilities, or other installations on customers’
premises.
3. Net credit or debit (cost less net salvage
and less payment from customers) on closing
work orders for plant installed for temporary
service of less than 1 year. (See account 185,
Temporary Facilities.)
4. Recovery of expenses in connection with
gas diversion cases. (Billing for the gas consumed shall be included in the appropriate
gas revenue account.)
5. Services performed for other gas companies for testing and adjusting meters, changing charts, etc.

489.1 Revenues from transportation of
gas of others through gathering facilities.
This account includes revenues from
transporting gas for other companies
through the gathering facilities of the
utility.
489.2 Revenues from transportation of
gas of others through transmission
facilities.
This account includes revenues from
transporting gas for other companies
through the transmission facilities of
the utility.
489.3 Revenues from transportation of
gas of others through distribution
facilities.
This account includes revenues from
transporting gas for other companies
through the distribution facilities of
the utility.
489.4 Revenues from storing gas of others.
This account includes revenues from
storing gas for other companies.

lpowell on DSK54DXVN1OFR with $$_JOB

490 Sales of products extracted from
natural gas.
A. This account shall include revenues from sales of gasoline, butane,
propane, and other products extracted
from natural gas, net of allowances, adjustments, and discounts, including
sales of similar products purchased for
resale.
B. Records shall be maintained so
that the quantity, sales price, and revenues for each type of product sold to
each purchaser shall be readily available.

Pt. 201
491 Revenues from natural gas processed by others.
A. This account shall include revenues from royalties and permits, or
other bases of settlement, for permission granted others to remove products
from natural gas of the utility.
B. The records supporting this account must be maintained so that full
information concerning determination
of the revenues will be readily available concerning each processor of gas
of the utility, including as applicable
(a) The Dth of gas delivered to such
other party for processing, (b) the Dth
of gas received back from the processor, (c) the field, general production
area , or other source of the gas processed, (d) Dth of gas used for processing
fuel, etc., which is chargeable to the
utility, (e) total gallons of each product recovered by the processor and the
utility’s share thereof, (f) the revenues
accruing to the utility, and (g) the
basis of determination of the revenues
accruing to the utility. Such records
shall be maintained even though no
revenues are derived from the processor.
492 Incidental gasoline and oil sales.
This account shall include revenues
from natural gas gasoline produced direct from gas wells or recovered from
drips or obtained in connection with
purification or dehydration processes,
and revenues from oil obtained from
wells which produce oil and gas, the investment in which is carried in accounts 330, Producing Gas Wells—Well
Construction, and 331, Producing Gas
Wells—Well Equipment.
493 Rent from gas property.
A. This account shall include rents
received for the use by others of land,
buildings, and other property devoted
to gas operations by the utility.
B. When property owned by the utility is operated jointly with others
under a definite arrangement for sharing the actual expenses among the parties to the arrangement, any amount
received by the utility for interest or
return or in reimbursement of taxes or
depreciation on the property shall be
credited to this account.

737

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00747

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

NOTE: Do not include rent from property
constituting an operating unit or system in
this account. (See account 412, Revenues
From Gas Plant Leased to Others.)

494 Interdepartmental rents.
This account shall include credits for
rental charges made against other departments of the utility. In the case of
property operated under a definite arrangement to allocate actual costs
among the departments using the property, any allowance to the gas department for interest or return and depreciation and taxes shall be credited to
this account.
495 Other gas revenues.
This account includes revenues derived from gas operations not includible in any of the foregoing accounts.

496 Provision for rate refunds.
A. This account shall be charged with
provisions for the estimated pretax effects on net income of the portions of
amounts being collected subject to refund which are estimated to be required to be refunded. Such provisions
shall be credited to Account 229, Accumulated Provision for Rate Refunds.
B. This account shall also be charged
with amounts refunded when such
amounts had not been previously accrued.
C. Income tax effects relating to the
amounts recorded in this account shall
be recorded in account 410.1, Provision
for Deferred Income Taxes, Utility Operating Income, or account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, as appropriate.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Commission on sale or distribution of
gas of others when sold under rates filed by
such others.
2. Compensation for minor or incidental
services provided for others such as customer
billing, engineering, etc.
3. Profit or loss on sale of material and
supplies not ordinarily purchased for resale
and not handled through merchandising and
jobbing accounts.
4. Sales of steam, water, or electricity, including sales or transfers to other departments of the utility.
5. Miscellaneous royalties received.
6. Revenues from dehydration and other
processing of gas of others, except products
extraction where products are received as
compensation and sales of such are includible in account 490, Sales of Products Extracted From Natural Gas, and except compression of gas of others, revenues from
which are includible in accounts 489.1, 489.2,
or 489.3, Revenues from Transportation of
Gas of Others.
7. Include in a separate subaccount, revenues in payment for rights and/or benefits
received from others which are realized
through research, development, and demonstration ventures.
8. Include in a separate subaccount, gains
on settlements of imbalance receivables and
payables (See Accounts 174 and 242) and
gains on replacement of encroachment volumes (See Account 117.4). Records must be
maintained and readily available to support
the gains included in this account.
9. Include in a separate subaccount revenues from penalties earned pursuant to tariff
provisions, including penalties associated
with cash-out settlements.

Operation and Maintenance Expense
Chart of Accounts
1. PRODUCTION EXPENSES
A. MANUFACTURED GAS PRODUCTION

A.1. Steam Production
OPERATION
700
701
702
703
704

Operation supervision and engineering.
Operation labor.
Boiler fuel.
Miscellaneous steam expenses.
Steam transferred—Credit.
MAINTENANCE

705 Maintenance supervision and engineering.
706 Maintenance of structures and improvements.
707 Maintenance of boiler plant equipment.
708 Maintenance of other steam production
plant.
A.2. Manufactured Gas Production
OPERATION
710 Operation supervision and engineering.
PRODUCTION LABOR AND EXPENSES
711
712
713
714
715
716
717
718

Steam expenses.
Other power expenses.
Coke oven expenses.
Producer gas expenses.
Water gas generating expenses.
Oil gas generating expenses.
Liquefied petroleum gas expenses.
Other process production expenses.
GAS FUELS

719 Fuel under coke ovens.

738

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00748

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
720
721
722
723
724

Producer gas fuel.
Water gas generator fuel.
Fuel for oil gas.
Fuel for liquefied petroleum gas process.
Other gas fuels.

725
726
727
728
729
730
731
732
733
734
735
736

Coal carbonized in coke ovens.
Oil for water gas.
Oil for oil gas.
Liquefied petroleum gas.
Raw materials for other gas processes.
Residuals expenses.
Residuals produced—Credit.
Purification expenses.
Gas mixing expenses.
Duplicate charges—Credit.
Miscellaneous production expenses.
Rents.

GAS RAW MATERIALS

Pt. 201
772 Gas shrinkage.
773 Fuel.
774 Power.
775 Materials.
776 Operation supplies and expenses.
777 Gas processed by others.
778 Royalties on products extracted.
779 Marketing expenses.
780 Products purchased for resale.
781 Variation in products inventory.
782 Extracted products used by the utility—
Credit.
783 Rents.
MAINTENANCE

MAINTENANCE
740 Maintenance supervision and engineering.
741 Maintenance of structures and improvements.
742 Maintenance of production equipment.
B. NATURAL GAS PRODUCTION EXPENSES

784 Maintenance supervision and engineering.
785 Maintenance of structures and improvements.
786 Maintenance of extraction and refining
equipment.
787 Maintenance of pipe lines.
788 Maintenance of extracted products storage equipment.
789 Maintenance of compressor equipment.
790 Maintenance of gas measuring and regulating equipment.
791 Maintenance of other equipment.

B.1. Natural Gas Production and Gathering

C. EXPLORATION AND DEVELOPMENT EXPENSES

OPERATION

OPERATION

750 Operation supervision and engineering.
751 Production maps and records.
752 Gas wells expenses.
753 Field lines expenses.
754 Field compressor station expenses.
755 Field compressor station fuel and power.
756 Field measuring and regulating station
expenses.
757 Purification expenses.
758 Gas well royalties.
759 Other expenses.
760 Rents.
MAINTENANCE
761 Maintenance supervision and engineering.
762 Maintenance of structures and improvements.
763 Maintenance of producing gas wells.
764 Maintenance of field lines.
765 Maintenance of field compressor station
equipment.
766 Maintenance of field measuring and regulating station equipment.
767 Maintenance of purification equipment.
768 Maintenance of drilling and cleaning
equipment.
769 Maintenance of other equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

B.2. Products Extraction
OPERATION
770 Operation supervision and engineering.
771 Operation labor.

795
796
797
798

Delay rentals.
Nonproductive well drilling.
Abandoned leases.
Other exploration.
D. OTHER GAS SUPPLY EXPENSES

OPERATION
800 Natural gas well head purchases.
800.1 Natural gas well head purchases,
intracompany transfers.
801 Natural gas field line purchases.
802 Natural gas gasoline plant outlet purchases.
803 Natural gas transmission line purchases.
804 Natural gas city gate purchases.
804.1 Liquefied natural gas purchases.
805 Other gas purchases.
805.1 Purchased gas cost adjustments.
806 Exchange gas.
807 Purchased gas expenses.
808.1 Gas withdrawn from storage—Debt.
808.2 Gas delivered to storage—Credit.
809.1 Withdrawals of liquefied natural gas
held for processing—Debt.
809.2 Deliveries of natural gas for processing—Credit.
810 Gas used for compressor station fuel—
Credit.
811 Gas used for products extraction—Credit.
812 Gas used for other utility operations—
Credit.
813 Other gas supply expenses.

739

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00749

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A. UNDERGROUND STORAGE EXPENSES

814 Operation supervision and engineering.
815 Maps and records.
816 Wells expenses.
817 Lines expenses.
818 Compressor station expenses.
819 Compressor station fuel and power.
820 Measuring and regulating station expenses.
821 Purification expenses.
822 Exploration and development.
823 Gas losses.
824 Other expenses.
825 Storage well royalties.
826 Rents.
MAINTENANCE
830 Maintenance supervision and engineering.
831 Maintenance of structures and improvements.
832 Maintenance of reservoirs and wells.
833 Maintenance of lines.
834 Maintenance of compressor station equipment.
835 Maintenance of measuring and regulating
station equipment.
836 Maintenance of purification equipment.
837 Maintenance of other equipment.

844.4 LNG transportation labor and expenses.
844.5 Measuring and regulating labor and expenses.
844.6 Compressor station labor and expenses.
844.7 Communication system expenses.
844.8 System control and load dispatching.
845.1 Fuel.
845.2 Power.
845.3 Rents.
845.4 Demurrage charges.
845.5 Wharfage receipts—credit.
845.6 Processing liquefied or vaporized gas by
others.
846.1 Gas losses.
846.2 Other expenses.
MAINTENANCE
847.1 Maintenance supervision and engineering.
847.2 Maintenance of structures and improvements.
847.3 Maintenance of LNG processing terminal equipment.
847.4 Maintenance of LNG transportation
equipment.
847.5 Maintenance of measuring and regulating equipment.
847.6 Maintenance of compressor station
equipment.
847.7 Maintenance of communication equipment.
847.8 Maintenance of other equipment.

B. OTHER STORAGE EXPENSES

3. TRANSMISSION EXPENSES

OPERATION

OPERATION

840 Operation supervision and engineering.
841 Operation labor and expenses.
842 Rents.
842.1 Fuel.
842.2 Power.
842.3 Gas losses.
MAINTENANCE
843.1 Maintenance supervision and engineering.
843.2 Maintenance of structures and improvements.
843.3 Maintenance of gas holders.
843.4 Maintenance of purification equipment.
843.5 Maintenance of liquefaction equipment.
843.6 Maintenance of vaporizing equipment.
843.7 Maintenance of compressor equipment.
843.8 Maintenance of measuring and regulating equipment.
843.9 Maintenance of other equipment.
C. LIQUEFIED NATURAL GAS TERMINALING AND
PROCESSING EXPENSES

lpowell on DSK54DXVN1OFR with $$_JOB

OPERATION
844.1 Operation supervision and engineering.
844.2 LNG processing terminal labor and expenses.
844.3 Liquefaction processing labor and expenses.

850 Operation supervision and engineering.
851 System control and load dispatching.
852 Communication system expenses.
853 Compressor station labor and expenses.
854 Gas for compressor station fuel.
855 Other fuel and power for compressor stations.
856 Mains expenses.
857 Measuring and regulating station expenses.
858 Transmission and compression of gas by
others.
859 Other expenses.
860 Rents.
MAINTENANCE
861 Maintenance supervision and engineering.
862 Maintenance of structures and improvements.
863 Maintenance of mains.
864 Maintenance of compressor station equipment.
865 Maintenance of measuring and regulating
station equipment.
866 Maintenance of communication equipment.
867 Maintenance of other equipment.
870 Operation supervision and engineering.

740

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00750

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
4. DISTRIBUTION EXPENSES
OPERATION
871 Distribution load dispatching.
872 Compressor station labor and expenses.
873 Compressor station fuel and power (Major
only).
874 Mains and services expenses.
875 Measuring and regulating station expenses—General.
876 Measuring and regulating station expenses—Industrial.
877 Measuring and regulating station expenses—City gate check stations.
878 Meter and house regulator expenses.
879 Customer installations expenses.
880 Other expenses.
881 Rents.
MAINTENANCE
885 Maintenance supervision and engineering.
886 Maintenance of structures and improvements.
887 Maintenance of mains.
888 Maintenance of compressor station equipment.
889 Maintenance of measuring and regulating
station equipment—General.
890 Maintenance of measuring and regulating
station equipment—Industrial.
891 Maintenance of measuring and regulating
station equipment—City gate check stations.
892 Maintenance of services.
893 Maintenance of meters and house regulators.
894 Maintenance of other equipment.
5. CUSTOMER ACCOUNTS EXPENSES
OPERATION
901 Supervision.
902 Meter reading expenses.
903 Customer records and collection expenses.
904 Uncollectible accounts.
905 Miscellaneous customer accounts expenses.
6. CUSTOMER SERVICE AND INFORMATIONAL
EXPENSES
OPERATION
907 Supervision.
908 Customer assistance expenses.
909 Informational and instructional advertising expenses.
910 Miscellaneous customer service and informational expenses.

lpowell on DSK54DXVN1OFR with $$_JOB

7. SALES EXPENSES

Pt. 201
913
914
915
916

Advertising expenses.
[Reserved]
[Reserved]
Miscellaneous sales expenses.

8. ADMINISTRATIVE AND GENERAL EXPENSES
OPERATION
920 Administrative and general salaries.
921 Office supplies and expenses.
922 Administrative expenses transferred—
Credit.
923 Outside services employed.
924 Property insurance.
925 Injuries and damages.
926 Employee pensions and benefits.
927 Franchise requirements.
928 Regulatory commission expenses.
929 Duplicate charges—Credit.
930.1 General advertising expenses.
930.2 Miscellaneous general expenses.
931 Rents.
MAINTENANCE
932 Maintenance of general plant.

Operation and Maintenance
Expense Accounts
700 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of the
operation of steam production. (See operating expense instruction 1.)
701 Operation labor.
This account shall include the cost of
labor used in boiler rooms and elsewhere about the premises engaged in
the production of steam or assignable
to the production of steam.
ITEMS
1. Blowing flues.
2. Cleaning boilers.
3. Handling coal, coke, and breeze from
place of storage to boilers.
4. Janitorial, messenger, watchmen, and
similar services.
5. Operating boilers.
6. Operating elevators.
7. Pulverizing coal.
8. Pumping tar from storage tank to boilers.
9. Removing ashes.
10. Testing steam meters, gauges, and
other instruments.

702 Boiler fuel.
A. This account shall include the
cost of coal, oil, gas, or other fuel used

OPERATION
911 Supervision.
912 Demonstrating and selling expenses.

741

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00751

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

in the production of steam, including
applicable amounts of fuel stock expenses. It shall also include the net
cost of, or the net amount realized
from, the disposal of ashes.
B. Records shall be maintained to
show the quantity and cost of each
type of fuel used. Respective amounts
of fuel stock and fuel stock expenses
shall be readily available.
NOTE: The cost of fuel, except gas, and related fuel stock expenses, shall be charged
initially to appropriate fuel accounts carried
under accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of fuel used. See
accounts 151 and 152 for basis of fuel costs
and includible items of fuel stock expenses.

703 Miscellaneous steam expenses.
This account shall include the cost of
materials used and expenses incurred
in the production of steam, not includible in the foregoing accounts.
ITEMS
1. Boiler compounds.
2. Building service expenses.
3. Chemicals.
4. Communication service.
5. Lubricants.
6. Miscellaneous supplies.
7. Pumping supplies and expenses.
8. Purification supplies and expenses.
9. Tools, hand.
10. Waste.
11. Water purchased.
12. Research, development, and demonstration expenses.

lpowell on DSK54DXVN1OFR with $$_JOB

704 Steam transferred—Credit.
A. This account shall include such
portion of the cost of producing steam
as is charged to other gas operating expense accounts, or to others or to a coordinate department under a joint facility arrangement.
B. The records supporting the entries
to this account shall be so kept that
the utility can furnish readily an explanation of the bases of the credits to
this account and the amounts charged
to (1) other gas accounts, (2) other utility departments, and (3) outside parties
under a joint facility arrangement. The
records shall show, likewise, the
amounts of steam production operation
and steam production maintenance expenses, respectively, chargeable to
each of the foregoing.

NOTE A: If the utility produces gas by a
single process at only one plant, credits need
not be made to this account for the cost of
steam used in such gas production facility.
NOTE B: Where steam is produced by producer gas equipment or waste heat boilers,
and such steam becomes part of the general
plant supply, this account should be charged
and the steam expense account in the appropriate functional group of accounts (coal gas
production, water gas production, etc.) credited with the value of such steam. However,
if the steam so produced is used in the same
functional operation as that through which
derived, such entries need not be made.

705 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of steam production facilities.
Direct field supervision of specific jobs
shall be charged to the appropriate
maintenance accounts. (See operating
expense instruction 1.)
706 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures and improvements used in steam
production operations, the book cost of
which is includible in account 305,
Structures and Improvements. (See operating expense instruction 2.)
707 Maintenance of boiler plant equipment.
This account shall indicate the cost
of labor, materials used and expenses
incurred in the maintenance of equipment used in steam production the
book cost of which is includible in account 306, Boiler Plant Equipment.
(See operating expense instruction 2.)
708 Maintenance of other steam production plant.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment used in steam production operations, the book cost of which is includible in account 314, Coal, Coke, and
Ash Handling Equipment, or account
320, Other Equipment. (See operating
expense instruction 2.)

742

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00752

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
710 Operation supervision and engineering.
A. This account shall include the
cost of labor and expenses occurred in
the general supervision and direction
of the operation of manufactured gas
stations. Direct supervision of specific
activities such as steam production
and power operations, coke oven operations, water gas generation, etc., shall
be charged to the appropriate account.
(See operating expense instruction 1.)
711 Steam expenses.
A. This account shall include the
cost of steam used in manufactured gas
production. This includes the cost of
steam transferred from the gas department’s own supply and charges for
steam transferred from others or from
coordinate departments under joint facility arrangements. (See account 704,
Steam Transferred—Credit.)
B. This account shall be so kept as to
show separately for each source of
steam the point of delivery, the quantity, the charges therefor, and the
bases of such charges.
712 Other power expenses.
This account shall include the cost of
electricity or other power, except
steam, used in manufactured gas operation. This includes the cost of power
purchased, the operation cost of electricity or other power such as compressed air produced by the gas department and charges from others or from
coordinate departments for power produced under joint facility arrangements.
713 Coke oven expenses.
This account shall include the cost of
labor used and expenses incurred in the
operation of coke ovens for the production of coal gas, exclusive of the cost of
fuel for the coke ovens and coal carbonized.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Work of the following character in operation of coke ovens:
a. Charging and leveling coal.
b. Heating ovens to produce coke.
c. Pushing, transporting, quenching, and
dumping coke on wharf.

Pt. 201
d. Reclaiming coke spillage, removing, replacing, and luting oven doors and lids.
e. Handling and mixing luting mud.
f. Controlling oven heats and gas heating
value with dilution gas.
g. Controlling flue temperature, stack
drafts, collecting main pressure and the flow
of flushing liquor and drains.
h. Operating, cleaning, and lubricating
equipment not incidental to maintenance
work, such as: charger, pusher, door operating and luting, mud mixing, gas reversal,
transportation machinery and equipment,
quenching pumps and tower, together with
valves,
instruments,
meters,
controls,
gauges, and records connected with their operation.
i. Tar chasing (spooning tar in hot drains.)
j. Cleaning doors, jambs, and stand pipes.
3. Handling and transporting coal from
storage or boats to battery bins.
4. Operating, cleaning and lubricating mechanical equipment, such as: hoist machines,
conveyors and their housing, hammermills
and breakers, mixing and battery bins, together with their control valves, instruments, etc.
5. Wetting and handling coke to the coke
wharf or storage including cleaning and lubricating of equipment not incident to maintenance.
6. Pumping gas from ovens and maintaining the proper pressures on the collecting
main and throughout the apparatus train, including cleaning and lubricating the oven
gas exhausters and revivifying blowers, not
incident to maintenance.
7. Removing and disposing of carbon, fines,
sediment, and waste material.
8. Cleaning ovens and exhauster house, including janitor service in the employees’
locker and wash room within this operating
area.
Materials and expenses:
9. Packing, waste, lubricants, etc.
10. Small hand tools.
11. Building service, communication service, transportation.

714 Producer gas expenses.
This account shall include the cost of
labor used and expenses incurred in
making producer gas exclusive of the
cost of fuel for producer gas.
ITEMS
Labor:
1. Supervising.
2. Work of the following character in connection with operation of producer gas sets
(excepting the waste heat boiler and auxiliaries):
a. Inspecting, testing, clinkering, lighting
and starting set.
b. Controlling fire and heats with fuel
charges.

743

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00753

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

c. Barring, measuring, and rodding fires.
d. Observing pyrometers, pressures and CO2
in stack gases.
e. Regulating input materials, such as
coke, steam and air and making required
flow rate and operating cycle changes.
f. Cleaning and removal of ash, dust, sediment and materials from the set and connections, seal pots, duct pockets, bootlegs, collectors and pumps.
g. Cleaning and reluting producer set
doors.
h. Operating, cleaning and lubricating fuel
charging lorries, grates, jackets and auxiliaries, ash removal apparatus, and associated
instruments, meters, gauges, controls, etc.
3. Handling fuel from storage into bins
with conveyors.
4. Operating, cleaning and lubricating auxiliary equipment, not incident to maintenance work, such as coolers, pumps, blowers,
exhausters or boosters, fuel handling equipment, etc.
5. Removing and disposing of ashes, sediment and other waste material.
6. Cleaning the producer and booster
houses including janitorial and similar services.
Materials and expenses:
7. Packing, waste, lubricants, etc.
8. Small hand tools.
9. Building service, communication service, transportation.

715 Water gas generating expenses.
This account shall include the cost of
labor used and expenses incurred in the
operation of water gas sets exclusive of
the cost of fuel and oil for water gas
production.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Work of the following character in connection with the operation of water gas sets
(excepting the waste heat boiler and auxiliaries):
a. Inspecting, testing, clinkering, lighting
and starting up.
b. Controlling fire and heats with fuel
charges, barring and rodding fires, operating
grates and jackets, taking stains, observing
pyrometers, pressures, seal pot water flow
and stack gases, regulating input materials
such as coke, oil, natural gas, steam and air.
c. Making required flow rate and operating
cycle changes.
d. Cleaning and removing ashes, carbon,
and sediment from the set and connections,
the wash box, seal pot, oil spray, duct pockets, bootlegs, and collectors, and cleaning
and reluting producer set doors.
e. Operating, cleaning and lubricating fuel
charging lorries, blowers, valves, automatic

operators, and grates, together with their instruments, gauges, and controls, also the ash
belts.
3. Operating, cleaning and lubricating auxiliary equipment, such as hydraulic pumps,
circulating water pumps, oil pumps from
storage to sets, steam accumulators and regulators and reducers on natural gas for reforming, exhausters, revivifying air blowers,
and purifier exhausters.
4. Handling fuel from storage into bins
with conveyors.
5. Removing and disposing of ashes, carbon, sediment, and other waste material.
6. Cleaning of generator and exhauster
houses, including janitorial and similar services.
Materials and expenses:
7. Packing, waste, lubricants, etc.
8. Small hand tools.
9. Building service, communication service, transportation.

716 Oil gas generating expenses.
This account shall include the cost of
labor used and expenses incurred in the
operation of equipment for the production of oil gas exclusive of cost of the
oil.
ITEMS
Labor:
1. Supervising.
2. Cleaning, firing and operating oil gas
machines.
3. Handling oil from place of storage to oil
gas sets.
4. Measuring oil.
5. Removing and disposing of carbon deposits, and other cleaning and incidental labor.
Materials and expenses:
6. Packing, waste, lubricants, etc.
7. Small hand tools.
8. Building service, communication service, transportation.

717 Liquefied petroleum gas expenses.
This account shall include the cost of
labor used and expenses incurred in the
operation of equipment used for vaporizing petroleum derivatives such as
propane, butane or gasoline exclusive
of cost of the materials vaporized or
used for fuel in the vaporizing process.
ITEMS
Labor:
1. Supervising.
2. Operating, cleaning and lubricating liquid petroleum vaporizers and injectors.
3. Taking pressures and temperatures, and
reading gauges on storage tanks.

744

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00754

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
4. Inspecting and testing equipment and
setting and adjusting controls and regulators.
5. Watching pressure gauges, maintaining
pressures and relieving excess pressures
through lines.
6. Repressuring storage tanks.
Materials and expenses:
7. Packing, waste, lubricants, etc.
8. Small hand tools.
9. Building service, communication service, transportation.

718 Other process production expenses.
This account shall include the cost of
labor used and expenses incurred in operating equipment used for the production of gas by processes not provided
for in the foregoing accounts.
719 Fuel under coke ovens.
A. This account shall include the
cost of gas, other than coke oven gas or
producer gas, or other fuel used under
coke ovens for making coal gas. Concurrent credits shall be made to account 734, Duplicate Charges—Credit,
for gas made by the utility and so used,
or account 812, Gas Used for Other Utility Operations—Credit, for other gas
used under coke ovens.
B. Records shall be kept to show the
quantity and cost of each type of fuel
used and fuel handling expenses.
ITEMS
1. Gas made by the utility and used under
coke ovens.
2. Natural and other purchased gas used
under coke ovens.

720 Producer gas fuel.

lpowell on DSK54DXVN1OFR with $$_JOB

A. This account shall include the
cost of fuel used in making producer
gas including applicable amounts of
fuel stock expenses. It shall also include the net cost of, or the net
amount realized from, the disposal of
ashes.
B. Records shall be kept to show the
quantity and the cost of each type of
fuel used. Respective amounts of fuel
stock and fuel stock expenses shall be
readily available.
NOTE: The cost of fuel and related fuel
stock expenses shall be charged initially to
the appropriate fuel account carried under
accounts 151, Fuel Stock, and 152, Fuel Stock
Expenses Undistributed, and cleared to this
account on the basis of fuel used. See ac-

Pt. 201
counts 151 and 152 for basis of fuel costs and
includible items of fuel stock expenses.

721 Water gas generator fuel.
A. This account shall include the
cost of fuel used in making water gas,
including applicable amounts of fuel
stock expenses. It shall also include
the net cost of, or net proceeds from,
the disposal of ashes.
B. Records shall be kept to show the
quantity and cost of each type of fuel
used. Respective amounts of fuel stock
and fuel stock expenses shall be readily
available.
NOTE: The cost of fuel and related fuel
stock expenses shall be charged initially to
the appropriate fuel account carried under
accounts 151, Fuel Stock, and 152, Fuel Stock
Expenses Undistributed, and cleared to this
account on the basis of fuel used. See accounts 151 and 152 for basis of fuel costs and
includible items of fuel stock expenses.

722 Fuel for oil gas.
This account shall include the cost of
fuel for the manufacture of gas by the
oil gas process.
723 Fuel for liquefied petroleum gas
process.
This account shall include the cost of
fuel for vaporization of liquefied petroleum gas and for the compression of air
in liquefied petroleum gas process.
724 Other gas fuels.
This account shall include the cost of
fuel for the manufacture of gas by
processes not provided for in the above
fuel accounts.
725 Coal carbonized in coke ovens.
A. This account shall include the
cost of coal used in coke ovens for
making coal gas, including applicable
amounts of fuel stock expenses.
B. Records shall be kept to show the
type, quantity, and cost of coal used.
Respective amounts of fuel stock and
fuel stock expenses shall be readily
available.
NOTE: The cost of coal carbonized and related fuel stock expenses shall be charged
initially to the appropriate account carried
under accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of coal used. See
accounts 151 and 152 for basis of costs and includible items of fuel stock expenses.

745

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00755

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

726 Oil for water gas.
A. This account shall include the
cost of oil used in carbureting water
gas, including applicable amounts of
fuel stock expenses.
B. Records shall be kept to show the
type, quantity, and cost of oil used. Respective amounts of fuel stock and fuel
stock expenses shall be readily available.
NOTE: The cost of oil and related fuel stock
expenses shall be charged initially to the appropriate accounts carried under accounts
151, Fuel Stock, and 152, Fuel Stock Expenses Undistributed, and cleared to this account on the basis of oil used. See accounts
151 and 152 for basis of costs and includible
items of fuel stock expenses.

727 Oil for oil gas.
A. This account shall include the
cost of oil used in making oil gas, including applicable amounts of fuel
stock expenses.
B. Records shall be kept to show the
type, quantity, and cost of oil used. Respective amounts of fuel stock and fuel
stock expenses shall be readily available.
NOTE: The cost of oil and related fuel stock
expenses shall be charged initially to the appropriate raw materials account carried
under accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of oil used. See
accounts 151 and 152 for basis of costs and includible items of fuel stock expenses.

728 Liquefied petroleum gas.

lpowell on DSK54DXVN1OFR with $$_JOB

A. This account shall include the
cost of liquefied petroleum gas, such as
propane, butane, or gasoline, vaporized
for mixing with other gases or for sale
unmixed, including applicable amounts
of fuel stock expenses.
B. Records shall be kept to show the
type, quantity, and cost of liquefied petroleum gas. Respective amounts of
fuel stock and fuel stock expenses shall
be readily available.
NOTE: The cost of liquefied petroleum gas
and related fuel stock expenses shall be
charged initially to the appropriate accounts
under accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of liquefied petroleum gas used. See accounts 151 and 152
for basis of costs and includible items of fuel
stock expenses.

729 Raw materials for other gas processes.
A. This account shall include the
cost of raw materials used in the production of manufactured gas by any
process not provided for by the foregoing accounts including the production of coal gas by use of retorts, including applicable amounts of fuel
stock expenses.
B. Records shall be kept to show the
type, quantity, and cost of each raw
material used, comparable to the accounting specified in the foregoing accounts for specified types of gas processes. Respective amount of fuel stock
and fuel stock expenses shall be readily
available.
NOTE: The cost of raw materials and fuel
stock expenses shall be charged initially to
the appropriate accounts carried under accounts 151, Fuel Stock, and 152, Fuel Stock
Expenses Undistributed, and cleared to this
account on the basis of raw materials used.
See accounts 151 and 152 for basis of raw materials costs and includible items of raw materials stock expenses.

730 Residuals expenses.
A. This account shall include the
cost of labor, materials used and expenses incurred including uncollectible
accounts in obtaining, handling, preparing, refining, and marketing residuals produced in manufactured gas production processes.
B. Divisions of this account shall be
maintained for each of the principal
types of expenses chargeable hereto
and for each residual or by-product carried in account 731, Residuals Produced—Credit.
731 Residuals produced—Credit.
A. This account shall be credited and
the appropriate subdivision of account
153, Residuals and Extracted Products,
debited monthly with the estimated
value of residuals and other by-products obtained in connection with the
production
of
manufactured
gas,
whether intended for sale or for use in
operations.
B. If the net amount realized from
the sale of residuals is greater or less
than the amount at which they were
originally credited hereto, an adjusting
entry shall be made crediting or debiting this account and charging or

746

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00756

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
crediting the appropriate subdivision
of account 153, Residuals and Extracted
Products, with the difference.

7. Small hand tools.
8. Building service, communication service, transportation.

732 Purification expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating purification equipment and apparatus used for conditioning manufactured gas.

734 Duplicate charges—Credit.

ITEMS
Labor:
1. Supervising.
2. Operating conveyors, condensers, coolers, tar extractors and precipitators, shaving
scrubbers and naphthalene and light oil
scrubbers.
3. Emptying, rearranging, shifting, cleaning, purging, and refilling purifier boxes.
4. Removing spent oxide to refuse pile.
5. Revivifying oxide.
6. Oiling dip sheets of purifier boxes.
7. Inspecting, testing, controlling adjustments, and taking stains.
8. Cleaning and lubricating purification
equipment.
Materials and expenses:
9. Iron oxide.
10. Unslacked lime.
11. Shavings.
12. Soda ash for liquid purifiers.
13. Wash oil for naphthalene scrubber.
14. Sulphuric acid.

733 Gas mixing expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating equipment for mixing natural and manufactured gas, or
vaporized liquefied petroleum gases for
delivery to the distribution system.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

Labor:
1. Supervising.
2. Mixing enrichment gas and other gases
or air, including mixing of liquid petroleum
gas with air in a liquid petroleum air gas
plant, and operation of air jetting equipment
and controls.
3. Operating, cleaning and lubricating of
cleaners,
reducers,
calorimeters,
calorimixers, appliances and mixing apparatus with their related recorders, gauges,
valves and controls, and gravitometers.
4. Inspecting, testing and adjusting mixing
equipment.
5. Reading instruments and gauges, changing charts, and recording instrument and
gauge readings.
Materials and expenses:
6. Packing, waste, lubricants, etc.

This account shall include concurrent credits for charges which are made
to manufactured gas production operating expenses for manufactured gas
not entering common system supply,
steam or electricity used for which
there is no direct money outlay.
NOTE: For manufactured gas used from the
common system supply, concurrent credits
shall be made to account 812, Gas Used for
Other Utility Operations—Credit.

735 Miscellaneous production expenses.
This account shall include the cost of
labor, materials used and expenses incurred in manufacturing gas production operations not includible in any of
the foregoing accounts.
ITEMS
Labor:
1. Supervising.
2. Cleaning gas works yard of coke dust
and other waste materials.
3. Humidifying gas or oil fogging gas at the
production plant.
4. Cutting grass and care of the grounds
around the gas works.
5. Clearing gas works yard of snow.
6. Janitor service and messenger service.
7. Operating elevators and other conveyances for general use at the gas works.
8. General clerical and stenographic work
at gas works.
9. Guarding and patrolling plant and yard.
10. Testing plant instruments not elsewhere provided for.
11. Laboratory labor, except that chargeable to other accounts.
12. Reading manufactured gas meters, and
calculating and recording hourly volumes
produced.
13. Pumping drips (water) at plant (not
provided for elsewhere).
14. Odorizing manufactured gas.
15. Operating, cleaning, and lubricating of
air compressors with their tanks, instruments, meters, gauges, and controls when
used to supply compressed air into the
plant’s air system.
16. Operating effluent water treatment systems,
including
chemical
treatment
ozonation, filter, and related equipment, including treatment of carbon and residual
sludge, and removing spent oxide, and spent
filtering materials.
17. Pumping water for cooling and condensing.

747

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00757

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

18. Cleaning filters and other operating duties of water system.
Materials and expenses:
19. Producer gas transferred from coke
oven plant to water gas plant for dilution
purposes.
20. Building service, communication service, transportation.
21. First aid supplies and safety equipment.
22. Office supplies, printing and stationery.
23. Meals, travelling and incidental expenses.
24. Fuel for heating plant, water for fire
protection or general use, and similar items.
25. Lubricants, packing, waste, etc.
26. Odorizing chemicals.
27. Hand tools, drills, saw blades, files, etc.
28. Fire protection supplies.
29. Fogging oils, alcohol, etc.
30. Chemicals, filter materials, etc., and
payments to others for disposal of plant
effluents and waste.
31. Chemicals for water treatment.
32. Research, development, and demonstration expenses.

736 Rents.
This account shall include rents for
property of others used, occupied or operated in connection with manufactured gas production operations. (See
operating expense instruction 3.)
740 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of manufactured gas production facilities. Direct field supervision
of specific jobs shall be charged to the
appropriate
maintenance
accounts.
(See operating expense instruction 1.)

lpowell on DSK54DXVN1OFR with $$_JOB

741 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 305, Structures and Improvements. (See operating expense instruction 2.)
742 Maintenance of production equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment for the production of manufactured gas, the book cost of which is in-

cluded in accounts 306 to 320, inclusive,
except such equipment as is used for
the production of steam the maintenance of which is includible in accounts 707, Maintenance of Boiler
Plant Equipment, and 708, Maintenance
of Other Steam Production Plant. (See
operating expense instruction 2.)
750 Operation supervision and engineering.
A. This account shall include the
cost of labor and expenses incurred in
the general supervision and direction
of the operation of production and
gathering systems. Direct supervision
of specific activities such as turning on
and shutting off wells, operating measuring and regulating stations, etc.,
shall be charged to the appropriate account. (See operating expense instruction 1.)
B. For Nonmajor companies, this account shall include the cost of supervision and labor in the operation of gas
wells, lines, compressors and other
equipment of the natural gas production and gathering system including
miscellaneous labor such as care of
grounds, building service, and general
clerical and stenographic work at field
offices.
ITEMS
1. Supervision. (See operating expense instruction 1.)
2. Gas depletion and gas reserve activities.
3. Geological activities in connection with
gas production.
4. Rights-of-way office activities and supervision, not in connection with construction or retirement work, or storage.

751 Production maps and records.
This account shall include the cost of
labor, materials used and expenses incurred in the preparation and maintenance of production maps and records.
ITEMS
Labor:
With respect to production maps:
1. Supervising.
2. Preparing farm maps, field inventory
maps, well location plats, and other maps
used in connection with natural gas production and gathering operations.
3. Posting changes and making corrections
of maps.
4. Maintaining files of maps and tracings.

748

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00758

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
5. Surveying deeds, leases, rights-of-way,
well locations, etc., for map revisions.
6. Reproducing maps (blueprints, photostats, etc.).
With respect to land records:
7. Supervising.
8. Abstracting titles to date for extension
and renewal of leases.
9. Adjusting land and well rentals.
10. Checking free gas rights.
11. Maintaining land and lease records.
12. Delivering rental and royalty checks.
13. Assigning, pooling, merging, renewing,
and extending leases.
14. Patrolling land.
15. Preparing expiration calendars.
16. Replacing leases (not involving additional consideration).
17. Transferring payees.
Materials and expenses:
18. Blueprints, photostats, etc.
19. Drafting materials and supplies.
20. Surveying materials and supplies.
21. Employee transportation and travel expenses.
22. Freight, express, parcel post, trucking,
and other transportation.
23. Janitor and washroom supplies, etc.
24. Office supplies, stationery and printed
forms.
25. Utility services: light, water, and telephone.

752 Gas wells expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating producing gas
wells.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Testing, bailing, swabbing, blowing and
gauging producing gas wells.
3. Cleaning off old well locations.
4. Painting signs, etc.
5. Minor upkeep of well roads and fences,
etc.
6. Turning wells off and on.
7. Pumping wells.
Materials and expenses:
8. Gas, gasoline, and oil used in pumping,
bailing, heating, and swabbing.
9. Lumber, nails, and other materials used
for upkeep of fences, making signs, etc.
10. Materials for upkeep of well roads, etc.
11. Well swabs.
12. Employees’ transportation and travel
expenses.
13. Freight, express, parcel post, trucking
and other transportation.
14. Transportation: company and rented
vehicles.

Pt. 201
753 Field lines expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating field lines.
ITEMS
Labor:
1. Supervising.
2. Walking or patrolling lines.
3. Attending valves, lubricating valves and
other equipment, blowing and cleaning lines
and drips, draining water from lines, operating and cleaning scrubbers, thawing
freezes.
4. Taking line pressures, changing pressure
charts, operating alarm gauges.
5. Building and repairing gate boxes, foot
bridges, stiles, tool boxes, etc., used in line
operations, erecting line markers and warning signs, repairing old line roads.
6. Cleaning debris, cutting grass and weeds
on rights-of-way.
7. Inspecting and testing not specifically to
determine necessity for repairs.
8. Protecting utility property during work
by others.
9. Standby time of emergency crews, responding to fire calls, etc.
10. Locating valve boxes or drip riser
boxes.
11. Cleaning and repairing tools used in
mains operations, making tool boxes, etc.
12. Cleaning structures and equipment.
13. Driving trucks.
Materials and expenses:
14. Line markers and warning signs.
15. Lumber, nails, etc., used in building and
repairing gate boxes, foot bridges, stiles, tool
boxes, etc.
16. Charts.
17. Scrubber oil.
18. Hand tools.
19. Lubricants, wiping rags, waste, etc.
20. Freight, express, parcel post, trucking
and other transportation charges.
21. Employees’ transportation and travel
expenses.
22. Janitor and washroom supplies.
23. Utility services: light, water, telephone.
24. Gas used in field line operations.

754 Field compressor station expenses.
This account shall include the cost of
labor, materials used, except fuel, and
expenses incurred in operating field
compressor stations.
ITEMS
Labor:
1. Supervising.
2. Operating and checking engines, equipment valves, machinery, gauges, and other
instruments, including cleaning, wiping,
polishing, and lubricating.

749

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00759

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

3. Operating boilers and boiler accessory
equipment, including fuel handling and ash
disposal, recording fuel used, and unloading
and storing coal and oil.
4. Repacking valves and replacing gauge
glasses, etc.
5. Recording pressures, replacing charts,
keeping logs, and preparing reports of station operations.
6. Inspecting and testing equipment when
not specifically to determine necessity for
repairs or replacement of parts.
7. Pumping drips at the station.
8. Taking dew point readings.
9. Testing water.
10. Cleaning structures, cutting grass and
weeds, and minor grading around station.
11. Cleaning and repairing hand tools used
in operations.
12. Driving trucks.
13. Watching during shut downs.
14. Clerical work at station.
Materials and expenses:
15. Scrubber oil.
16. Lubricants, wiping rags, and waste.
17. Charts and printed forms, etc.
18. Gauge glasses.
19. Chemicals to test waters.
20. Water tests and treatment by other
than employees.
21. Janitor and washroom supplies, first
aid supplies, landscaping supplies, etc.
22. Employees’ transportation and travel
expenses.
23. Freight, express, parcel post, trucking,
and other transportation.
24. Utility services: light, water, telephone.

755 Field compressor station fuel and
power.

lpowell on DSK54DXVN1OFR with $$_JOB

A. This account shall include the
cost of gas, coal, oil, or other fuel, or
electricity, used for the operation of
field compressor stations, including applicable amounts of fuel stock expenses.
B. Records shall be maintained to
show the quantity of each type of fuel
consumed or electricity used at each
compressor station, and the cost of
such fuel or power. Respective amounts
of fuel stock and fuel stock expenses
shall be readily available.
NOTE: The cost of fuel, except gas, and related fuel stock expenses shall be charged
initially to appropriate fuel accounts carried
in accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of fuel used. See
accounts 151 and 152 for the basis of fuel
costs and includible fuel stock expenses.

756 Field measuring and regulating station expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating field measuring and
regulating stations.
ITEMS
Labor:
1. Supervising.
2. Recording pressures and changing
charts, reading meters, etc.
3. Estimating lost meter registrations,
etc., except gas purchases and sales.
4. Calculating gas volumes from meter
charts, except for gas purchases and sales.
5. Adjusting and calibrating measuring
equipment, changing meters, orifice plates,
gauges, clocks, etc., not in connection with
maintenance or construction.
6. Testing gas samples, inspecting and testing gas sample tanks and other meter engineer’s equipment, determining specific gravity and Btu content of gas.
7. Inspecting and testing equipment not
specifically to determine necessity for repairs including pulsation tests.
8. Cleaning and lubricating equipment.
9. Keeping log and other operating records,
preparing reports of operations, etc.
10. Attending boilers and operating other
accessory equipment.
11. Installing and removing district gauges
for pressure survey.
12. Thawing freeze in gauge pipes.
13.
Inspecting
and
pumping
drips,
dewatering manholes and pits, inspecting
sumps, cleaning pits, etc., blowing meter
drips.
14. Moving equipment, minor structures,
etc., not in connection with construction, retirement, or maintenance work.
Materials and expenses:
15. Charts and printed forms, stationery
and office supplies, etc.
16. Lubricants, wiping rags, waste.
17. Employees’ transportation and travel
expense.
18. Freight, express, parcel post, trucking
and other transportation.
19. Utility services: light, water, telephone.

757 Purification expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating equipment used for
purifying, dehydrating, and conditioning of natural gas.
ITEMS
Labor:
1. Supervising.
2. Changing charts on fuel meters.

750

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00760

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
3. Emptying, cleaning and refilling purifier
boxes.
4. Oiling dip sheets of purifier covers.
5. Removing spent oxide to refuse piles.
6. Revivifying oxide.
7. Taking readings of inlet and outlet pressures and temperature.
8. Unloading and storing glycol.
9. Watching station and equipment.
10. Cutting grass and weeds, and minor
grading around equipment and stations.
11. Hauling operating employees, materials, supplies and tools, etc.
12. Inspecting and testing equipment, not
specifically to determine necessity for repairs or replacement of parts.
13. Lubricating equipment, valves, etc.
14. Operating and checking equipment,
valves, instruments, etc.
Materials and expenses:
15. Liquid purifying supplies.
16. Iron oxide.
17. Odorizing materials.
18. Charts, printed forms, etc.
19. Employees’ transportation and travel
expenses.
20. Freight, express, parcel post, trucking,
and other transportation.
21. Gas used in operations.
22. Janitor, washroom, and landscaping
supplies.
23. Lubricants, wiping rags, waste, etc.
24. Utility services: light, water, telephone.
NOTE: Inclusion of dehydration expenses in
this account shall be consistent with the
functional classification of dehydration
plant as to which, see the note to account
336, Purification Plant, relating to cases
where dehydrators may be located some distance from the production sources of gas.

758 Gas well royalties.
A. This account shall include royalties paid for natural gas produced by
the utility from wells on land owned by
others.
B. Records supporting the entries to
this account shall be so kept that the
utility can furnish the name of the parties to each contract involving royalties, the terms of each contract, the location of the property involved, the
method of determining the royalties,
and the amounts payable.

lpowell on DSK54DXVN1OFR with $$_JOB

759 Other expenses.
This account shall include the cost of
labor, materials used and expenses incurred in producing and gathering natural gas and not includible in any of
the foregoing accounts.

Pt. 201
ITEMS
Labor:
1. Moving cleaning tools between locations.
2. Operating communications system.
3. Reading limited and unlimited free gas
meters.
Materials and expenses:
4. Miscellaneous small tools, etc.
5. Research, development, and demonstration expenses.

760 Rents.
This account shall include rents for
property of others used, occupied or operated in connection with the production and gathering of natural gas,
other than rentals on land and land
rights held for the supply of natural
gas. (See operating expense instruction
3.)
NOTE: See account 795, Delay Rentals, for
rentals paid on lands held for the purpose of
obtaining a supply of gas in the future.

761 Maintenance supervision and engineering.
This account shall include the cost of
labor, materials used and expenses incurred in the general supervision and
direction of maintenance of the production and gathering facilities as a
whole. Direct field supervision of specific jobs shall be charged to the appropriate maintenance account. (See operating expense instruction 1.)
762 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures and improvements, the book cost
of which is includible in accounts 326,
Gas Well Structures, 327, Field Compressor Station Structures, 328, Field
Measuring and Regulating Station
Structures, and 329, Other Structures.
(See operating expense instruction 2.)
763

Maintenance of producing gas
wells.
This account shall include the cost of
labor, materials used and expenses incurred in maintenance of gas wells and
equipment includible in accounts 330.
Producing Gas Wells—Well Construction, and 331, Producing Gas Wells—
Well Equipment. (See operating expense instruction 2.)

751

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00761

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

764 Maintenance of field lines.
This account shall include the cost of
labor, materials used and expenses incurred in maintenance of field lines the
book cost of which is includible in account 332, Field Lines. (See operating
expense instruction 2.)
ITEMS
1. Electrolysis and leak inspections (not
routine).
2. Installing and removing temporary lines,
when necessitated by maintenance.
3. Lamping and watching while making repairs.
4. Lowering and changing location of portion of lines, when the same pipe is used.
5. Protecting lines from fires, floods, land
slides, etc.
6. Rocking creek crossings.

765 Maintenance of field compressor
station equipment.
This account shall include the cost of
labor and expenses incurred in the
maintenance of field compressor station equipment includible in account
333, Field Compressor Station Equipment. (See operating expense instruction 2.)
766 Maintenance of field measuring and
regulating station equipment.
This account shall include the cost of
labor, materials used and expenses incurred in maintenance of field measuring and regulating station equipment
includible in account 334, Field Measuring and Regulating Station Equipment. (See operating expense instruction 2.)
767 Maintenance of purification equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of purification equipment includible in account
336, Purification Equipment. (See operating expense instruction 2.)
NOTE: Inclusion of dehydration maintenance expenses in this account shall be consistent with the functional classification of
dehydration plant as to which see the note
to account 336, Purification Equipment, relating to cases where dehydrators may be located some distance from the production
sources of gas.

768 Maintenance of drilling and cleaning equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of drilling
and cleaning equipment includible in
account 335, Drilling and Cleaning
Equipment, except such costs of maintaining drilling tools or other equipment which are assignable to the cost
of drilling wells. (See operating expense instruction 2.)
769 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in maintenance of other production and gathering equipment includible in account 337, Other Equipment.
(See operating expense instruction 2.)
770 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of products extraction and refining operations, except supervision of marketing
and selling operations which shall be
charged to account 779, Marketing Expenses. Direct supervision of specific
extraction and refining activities shall
be charged to the appropriate account.
(See operating expense instruction 1.)
771 Operation labor.
This account shall include the cost of
labor used in the operation of facilities
for the extraction of gasoline, butane,
propane, or other salable products from
natural gas and for refining such products.
ITEMS
Labor:
1. Supervising.
2. Operating, checking, lubricating, wiping,
polishing, and cleaning engines, equipment,
valves, machinery, gauges, and other instruments, etc.
3. Inspecting and testing equipment and instruments, not specifically to determine necessity for repairs or replacement of parts.
4. Reading meters, gauges, and other instruments, changing charts, preparing operating reports, etc.
5. Testing gasoline samples, water, etc.
6. Cleaning structures housing equipment,
cutting grass and weeds and doing minor
grading work around equipment and structures, etc.

752

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00762

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
7. Driving trucks used in products extraction operations.
8. Cleaning and repairing hand tools used
in operations, etc.
9. Watching plant during shut-down periods.
10. Making electricity or steam.

772 Gas shrinkage.
A. This account shall include the
cost of gas lost or absorbed in the process of extraction of salable products
from natural gas, exclusive of gas used
as fuel, the cost of which shall be included in account 773, Fuel.
B. Concurrent credits offsetting
charges to this account shall be made
to account 811, Gas Used for Products
Extraction—Credit.
773 Fuel.
A. This account shall include the
cost of natural gas or other fuel used in
extracting gasoline, butane, propane
and other salable products from natural gas, including fuel used for generation of electricity or making steam.
B. Concurrent Credits offsetting
charges to this account shall be made
to account 811, Gas Used for Products
Extraction—Credit.
774 Power.
This account shall include the cost of
electricity purchased for operation of
facilities used in the extraction of gasoline, butane, propane, or other salable
products from natural gas.
775 Materials.
This account shall include the cost of
materials used in extracting salable
products from natural gas and blending
and refining such products.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1. Absorption oil.
2. Charcoal.
3. Water (payments to others for water).
4. Steam (payments to others for steam).
5. Blending agents.
6. Natural gasoline removed from inventory for blending and refining purposes.
7. Tetraethyl lead.

776 Operation supplies and expenses.
This account shall include supplies
used and expenses incurred in the operation of facilities for recovering salable
products from natural gas and blending

Pt. 201
and refining such products, not provided for elsewhere.
ITEMS
1. Employee transportation and travel expenses.
2. Freight, express, parcel post, trucking
and other transportation.
3. Utility services: light, water, telephone.
4. Charts, gas measurement, etc.
5. Janitor, washroom and landscaping supplies.
6. Lubricants: oil and grease, wiping rags
and waste, etc.
7. Testing equipment, hand tools, etc., of a
portable nature and relatively minor cost or
of short life.
8. Research, development, and demonstration expenses.

777 Gas processed by others.
A. This account shall include the
cost of gas shrinkage, gas consumed for
fuel, royalties, and other expenses in
connection with the processing of gas
of the utility by others for extraction
of salable products, for which the related revenues are includible in account 491, Revenues from Natural Gas
Processed by Others.
B. Concurrent credits offsetting
charges to this account for the difference between gas delivered to others
for processing and gas returned after
processing, such as shrinkage in the
processing operations and gas of the
utility used for fuel, shall be made to
account 811, Gas Used for Products Extraction of Credit.
C. Records supporting this account
shall be so maintained that full information will be readily available concerning gas shrinkage, gas used for
fuel, royalties, and other expenses assumed or paid by the utility with regard to each processor of gas of the
utility. (See paragraph B of account
491, Revenues from Natural Gas Processed by Others.)
ITEMS
1. Gas shrinkage, being cost of the reduction in gas from products extraction operations of gas of the utility processed by others.
2. Gas for fuel, being cost of gas of the utility used for fuel in connection with the products extraction processing of the utility’s
gas by others.
3. Royalties, being payments of fractional
interests of royalty holders in products extracted by others from gas of the utility.

753

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00763

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

778 Royalties on products extracted.
This account shall include royalties
paid by the utility to others for the
right to extract salable products from
natural gas.
779 Marketing expenses.
A. This account shall include the
cost of labor, materials used and expenses incurred in the marketing of
products extracted from natural gas
and of similar products purchased for
resale.
B. The records supporting this account shall be so maintained that summaries of the various types of expenses
shall be readily available.
ITEMS
Labor:
1. Salaries of persons directly engaged in
marketing operations.
Materials and expenses:
2. Employee transportation and travel expenses.
3. Tank car rentals.
4. Freight and hauling charges for products
shipped.
5. Miscellaneous marketing expenses.
6. Building service charges for space occupied by marketing personnel.
7. Uncollectible accounts for extracted
products sold.

780 Products purchased for resale.
A. This account shall include the
cost of gasoline, butane, propane, or
other salable products purchased from
others for resale.
B. The records supporting this account shall be so maintained that the
kind, quantity, and cost of products
purchased from each vendor are readily
available.

lpowell on DSK54DXVN1OFR with $$_JOB

781 Variation in products inventory.
This account shall include credits for
increases, and debits for decreases in
the inventories of salable products extracted from natural gas or purchased
for resale. The net debit or credit in
this account shall equal the difference
between the inventory at the beginning
of the accounting year and the end of
the accounting month.
782 Extracted products used by the
utility—Credit.
This account shall include concurrent credits for charges which are made

of operating expenses or other accounts
of the gas department for gasoline or
other extracted products which are
used from stocks recovered in the natural gas extraction process or purchased for resale, and for such products
used for blending and refining processes, the contra debit for which is account 775, Materials.
783 Rents.
This account shall include all rents
for the property of others used, occupied, or operated in connection with
the extraction of salable products from
natural gas, exclusive of tank car rentals and other similar rentals includible
in account 779, Marketing Expenses.
(See operating expense instruction 3.)
784 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of facilities used in the extraction and refining of salable products
from natural gas. Direct field supervision of specific jobs shall be charged
to the appropriate maintenance account. (See operating expense instruction 1.)
785 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 341, Structures and Improvements. (See operating expense instruction 2.)
786 Maintenance of extraction and refining equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 342, Extraction and Refining Equipment. (See operating expense instruction 2.)

754

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00764

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
787 Maintenance of pipe lines.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 343, Pipe Lines. (See operating expense instruction 2.)
788 Maintenance of extracted products
storage equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 344, Extracted Products
Storage Equipment. (See operating expense instruction 2.)
789 Maintenance of compressor equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 345, Compressor Equipment. (See operating expense instruction 2.)
790 Maintenance of gas measuring and
regulating equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 346, Gas Measuring and
Regulating Equipment. (See operating
expense instruction 2.)
791 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 347, Other Equipment.
(See operating expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

795 Delay rentals.
A. This account shall be charged with
the amount of rents paid periodically
on natural gas lands acquired by lease
before October 8, 1969, in order to hold
natural gas land and land rights for the
purpose of obtaining a supply of gas in
the future.
B. Include also in this account, the
cost of obtaining natural gas leases for
a period of 1 year or less when such

Pt. 201
leases were acquired before October 8,
1969.
C. Records supporting this account
shall be so kept that the utility can
furnish complete details of the charges
made for each natural gas leasehold.
(See note to gas plant instruction 7G.)
NOTE: Rents paid periodically on natural
gas lands acquired by lease after October 7,
1969, shall be charged to account 105.1, Production Properties Held for Future Use.

796 Nonproductive well drilling.
This account shall include the net
cost of drilling wells on natural gas
leases acquired before October 8, 1969,
which prove to be nonproductive.
NOTE A: Records in support of the charges
to this account shall conform, as appropriate, to Note B of General Instruction 12,
Records for Each Plant.
NOTE B: The net cost of drilling wells on
natural gas leases acquired after October 7,
1969, which prove to be nonproductive, shall
be charged to account 338, Unsuccessful Exploration and Development Costs.

797 Abandoned leases.
A. This account shall be charged with
amounts credited to account 111, Accumulated Provision for Amortization
and Depletion of Gas Utility Plant, to
cover the probable loss on abandonment of natural gas leases acquired before October 8, 1969, included in account 105, Gas Plant Held for Future
Use, which has never been productive.
(See account 182.1.)
B. When natural gas leaseholds which
were acquired before October 8, 1969,
and which have never been productive
are abandoned, and the amounts provided in account 111, Accumulated Provision for Amortization and Depletion
of Gas Utility Plant, are not sufficient
to cover the cost thereof, the deficiency shall be charged to this account
unless otherwise authorized or directed
by the Commission. (See account 182.1.)
NOTE: Losses on abandonment of natural
gas leases acquired after October 7, 1969,
shall be charged to account 338, Unsuccessful
Exploration and Development Costs.

798 Other exploration.
This account shall be charged with
the cost of abandoned projects involving natural gas leases acquired before
October 8, 1969, on which preliminary

755

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00765

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

expenditures were made for the purpose
of determining the feasibility of acquiring acreage to provide a future supply of natural gas (see account 183.1,
Preliminary Natural Gas Survey and
Investigation Charges).
NOTE: Preliminary expenditures on abandoned projects involving natural gas leases
acquired after October 7, 1969, shall be
charged to account 338, Unsuccessful Exploration and Development Costs.

800 Natural gas well head purchases.
A. This account shall include the
cost at well head of natural gas purchased from producers in gas fields or
production areas where only the utility’s facilities are used in bringing the
gas from the well head into the utility’s natural gas system.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and well head the quantity of gas,
basis of charges, and amount paid for
the gas.
NOTE: If gas purchases are made under one
contract covering both well head and field
line purchases and such amounts are not
readily separable, the utility may classify
such purchases according to predominant
source or according to a reasonable estimate.

lpowell on DSK54DXVN1OFR with $$_JOB

800.1 Natural gas well-head purchases;
intracompany transfers.
A. This account shall include, for informational purposes only, the amount
recorded for gas supplied by the production division when the price is not
determined by a cost-of-service rate
proceeding.
B. The records supporting this account shall be so maintained that there
will be readily available for each wellhead, the quantity of gas, the basis of
intracompany charges, and the amount
of intracompany charges for gas.
801 Natural gas field line purchases.
A. This account shall include the
cost, at point of receipt by the utility,
of natural gas purchased in gas fields
or production areas at points along
gathering lines, and at points along the
utility’s transmission lines within field
or production areas, exclusive of purchases at outlets of gasoline plants includible in account 802, where facilities
of the vendor or others are used in

bringing the gas from the well head to
the point of entry into the utility’s
natural gas system.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and each point of receipt, the quantity of gas, basis of charges, and
amount paid for the gas.
NOTE: If gas purchases are made under one
contract covering both well head and field
line purchases and such amounts are not
readily separable, the utility may classify
such purchases according to predominant
source or according to a reasonable estimate.

802 Natural gas gasoline plant outlet
purchases.
A. This account shall include the
cost, at point of receipt by the utility,
of natural gas purchased at the outlet
side of vendor’s natural gas products
extraction plants.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and for each products extraction
plant, the quantity of gas, basis of the
charges, and the amount paid for the
gas.
803 Natural gas transmission line purchases.
A. This account shall include the
cost, at point of receipt by the utility,
of natural gas purchased at points
along the utility’s transmission lines
not within gas fields or production
areas, excluding purchases at the outlets of products extraction plants includible in account 802.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and each point of receipt, the quantity of gas, basis of charges, and the
amount paid for the gas.
804 Natural gas city gate purchases.
A. This account shall include the
cost, at point of receipt by the utility,
of natural gas purchased which is received at the entrance to the distribution system of the utility.
B. The records supporting this account shall be so maintained that there

756

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00766

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
shall be readily available for each vendor and each point of receipt, the quantity of gas, basis of the charges, and
the amount paid for the gas.
NOTE: Do not credit this account for gas
used in reforming for which the cost is
charged to manufactured gas production expenses. Credits for such gas should be made
to account 812, Gas Used for Other Utility
Operations—Credit.

lpowell on DSK54DXVN1OFR with $$_JOB

804.1 Liquefied natural gas purchases.
A. This account shall include the
cost, including transportation, at point
of receipt by the utility, of liquefied
natural gas purchased for the purpose
of vaporization and injection into the
utility’s transmission or distribution
system for resale.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and point of receipt, the quantity
of liquefied natural gas purchased,
basis of charges, the amount paid for
the liquefied gas, and transportation
charges incurred up to the point of receipt of the liquefied gas.
805 Other gas purchases.
A. This account shall include the
cost, at point of receipt by the utility,
of manufactured gas, refinery gas, or
any gas other than natural gas, or
other than any mixed gas in which the
natural gas is an important proportion
of the mixture.
B. The records supporting this account shall be so maintained that there
shall be readily available for each vendor and each point of receipt, the kind
and quantity of gas, Btu content, basis
of the charges, and the amount paid for
the gas.
C. Utilities recognizing revenue for
shipper-supplied gas must include the
current market price of such gas in
this account. Current market price is
the delivered spot price of gas in the
utility’s supply area, as published in a
recognized industry journal. The publication used must be the same one identified in the pipeline’s tariff for use in
its cash-out provision, if it has one. If
it has no cash-out provision, the utility
must use one publication consistently.
Contra entries to those recorded herein
must be made to the appropriate transportation revenue account (Account

Pt. 201
489.1 through Account 489.4). Records
are to be maintained and readily available that include the name of shipper,
quantity of gas, and the publication
and price used to value shipper-supplied gas.
D. The value of gas received from
shippers under tariff allowances that is
not consumed in operations nor returnable to customers through rate tracking mechanisms must be credited to
Account 495, Other Gas Revenues and
charged to this account. Utilities must
simultaneously charge Accounts 117.3
or 117.4 as appropriate, with contra
credits to Account 808.2, Gas Delivered
to Storage—Credit. Records are to be
maintained and readily available that
include the name of shipper, quantity
of gas, and the publication and price
used to value shipper-supplied gas.
805.1 Purchased gas cost adjustments.
A. This account shall be debited or
credited with decreases or increases in
purchased gas costs related to Commission approved purchased gas adjustment clauses when such costs are not
included in the utility’s rate schedules
on file with the Commission.
B. This account shall be debited or
credited with amounts amortized from
Account 191, Unrecovered Purchased
Gas Costs.
806 Exchange gas.
This account includes debits or credits for the cost of gas in unbalanced
transactions where gas is received from
or delivered to another party in exchange, load balancing, or no-notice
transportation transactions. The costs
are to be determined consistent with
the accounting method adopted by the
utility for its system gas. If the utility
has adopted the inventory method of
accounting, the amounts to be recorded
in Account 806 must be based on the
historical cost of the gas. If the utility
has adopted the fixed asset method of
accounting, the amounts to be recorded
in Account 806 must be based on the
current market price of gas at the time
gas is tendered for transportation. (See
the Special Instructions to Accounts
117.1, 117.2, and 117.3 for a description of
the inventory and fixed asset methods
and the definition of the current market price of gas.) Contra entries to

757

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00767

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

those in this account are to be made to
account 174, Miscellaneous Current and
Accrued Assets, for gas receivable and
to account 242, Miscellaneous Current
and Accrued Liabilities, for gas deliverable under such transactions. Such
entries must be reversed and appropriate contra entries made to this account when gas is received or delivered
in satisfaction of the amounts receivable or deliverable.
807 Purchased gas expenses.
A. This account shall include expenses incurred directly in connection
with the purchase of gas for resale.
B. The utility shall not include as
purchased gas expense, segregated or
apportioned expenses of operating and
maintaining gathering system plant
whether such plant is devoted solely or
partially to purchases of gas, except
that the utility shall include the cost
of turning on and off purchase gas
wells and operating measuring stations
devoted exclusively to measuring purchased gas.
C. In general, it is intended that this
account include only the expenses directly related to purchased gas, including the expenses of computing volumes
of gas purchased, and special items directly related to gas purchases which
are not includible in other accounts.
D. This account shall be subdivided
as follows:
807.1 Well expenses—Purchased gas.
807.2 Operation of purchased gas measuring
stations.
807.3 Maintenance of purchased gas measuring stations.
807.4 Purchased gas calculations expenses.
807.5 Other purchased gas expenses.

lpowell on DSK54DXVN1OFR with $$_JOB

808.1 Gas
Debit.

withdrawn

from

storage-

A. This account shall include debits
for the cost of gas withdrawn from
storage during the year. Contra credits
for entries to this account shall be
made to accounts 117.1 through 117.4, or
account 164.2, Liquefied Natural Gas
Stored, as appropriate. (See the Special
Instructions to accounts 117.1, 117.2,
and 117.3).
B. Withdrawal of gas from storage
shall not be netted against deliveries
to storage. (See account 808.2.)

NOTE: Adjustments for gas inventory losses
due to cumulative inaccuracies in gas measurement, or from other causes, shall be entered in account 823, Gas Losses. If, however,
any adjustment is substantial, the utility
may, with approval of the Commission, amortize the amount of the adjustment to account 823 over future operating periods.

808.2 Gas delivered to storage-Credit.
A. This account shall include credits
for the cost of gas delivered to storage
during the year. Contra debits for entries to this account shall be made to
accounts 117.1 through 117.4, or account
164.2, Liquefied Natural Gas Stored, as
appropriate. (See the Special Instructions to accounts 117.1, 117.2, and 117.3).
809.1 Withdrawals of liquefied natural
gas held for processing—Debit.
A. This account shall include debits
for the cost of liquefied gas withdrawn
during the year. Contra credits for entries to this account shall be made to
account 164.3, Liquefied Natural Gas
Held for Processing.
B. Withdrawals of liquefied natural
gas held for processing shall not be netted against deliveries. (See account
809.2).
NOTE: Adjustments for gas inventory losses
due to cumulative inaccuracies in gas measurement, or from other causes, shall be entered in account 846.1, Gas Losses, in the
month determined, if, however, any adjustment is substantial, the utility may, with
approval of the Commission, amortize the
amount of the adjustment to account 846.1
over future operating periods.

809.2 Deliveries of natural gas for processing—Credit.
A. This account shall include credits
for the cost of gas delivered for processing during the year. Contra debits
for entries to this account shall be
made to account 164.3, Liquefied Natural Gas Held for Processing.
B. Deliveries of natural gas for processing shall not be netted against withdrawals from processing. (See account
809.1).
810 Gas used for compressor station
fuel—Credit.
This account shall include concurrent credits for charges which are made
to operating expenses for gas consumed

758

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00768

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
for compressor station fuel from the
common system gas supply.
811 Gas used for products extraction—
Credit.
This account shall include concurrent credits for charges which are made
to products extraction expenses for gas
shrinkage and gas used for fuel in products extraction operations of the utility and for similar uses of gas of the
utility by others processing gas of the
utility for extraction of salable products.
812 Gas used for other utility operations—Credit.
This account shall include concurrent credits for charges which are made
to operating expenses or other accounts of the gas department for gas
consumed from the common system
supply for operating and utility purposes other than uses for which credits
are includible in any of the foregoing
accounts. (See account 484, Interdepartmental Sales, for gas supplied to
departments other than the gas utility
department.)

lpowell on DSK54DXVN1OFR with $$_JOB

813 Other gas supply expenses.
A. This account shall include the
cost of labor, materials used and expenses incurred in connection with gas
supply functions not provided for in
any of the above accounts, including,
research and development expenses.
These accounts are to be used by both
transmission and distribution companies to account for natural gas storage
expenses. If the utility operates both
transmission and distribution systems,
subaccounts
shall
be
maintained
classifying the expenses to the transmission or distribution function.
B. Include in separate subaccounts:
(1) losses on settlements of imbalance
receivables and payables (See Account
174 and 242) and losses on replacement
of encroachment volumes (See the Special Instructions to Accounts 117.1,
117.2 and 117.3); (2) revaluations of storage encroachments; and (3) system gas
losses not associated with storage. Appropriate records must be maintained
and readily available that include the
amount of losses and associated volumes in Dth.

Pt. 201
814 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of underground storage operations. Direct supervision of specific activities such as
turning on and shutting off storage
wells, compressor station operations,
etc., shall be charged to the appropriate account. (See operating expense
instruction 1.)
815 Maps and records.
This account shall include the cost of
labor, materials used and expenses incurred in the preparation and maintenance of storage maps and land
records.
ITEMS
Labor:
With respect to land records:
1. Supervising.
2. Abstracting titles to date for extension
and renewal of leases.
3. Adjusting land and well rentals.
4. Renewing and extending leases or replacing leases not involving additional consideration.
5. Transferring, assigning, pooling, and
merging leases.
6. Delivering rental checks.
7. Clerical work in maintaining storage
land and lease records.
8. Preparing and maintaining lease expiration calendars.
With respect to maps:
9. Supervising.
10. Preparing maps, well location plats,
etc.
11. Reproducing maps (blueprints or photostats).
12. Posting and revising maps.
13. Surveying deeds, leases, rights-of-way,
well locations, etc., for map revisions.
14. Maintaining files of maps and tracings.
15. Field checking boundaries, markers,
etc. in connection with preparation of maps.
Materials and expenses (general):
16. Reproduction of land and lease records
and maps (blueprints, photostats, etc.).
17. Drafting materials and supplies.
18. Surveying materials and supplies.
19. Employees’ transportation and travel
expenses.

816 Wells expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating storage gas wells.

759

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00769

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)
ITEMS

Labor:
1. Supervising.
2. Testing, bailing, swabbing, blowing, and
gauging storage wells.
3. Painting signs, etc.
4. Minor upkeep of well roads, fences, etc.
5. Turning storage wells on and off.
6. Moving cleaning out tools between locations.
7. Driving trucks.
Materials and expenses:
8. Gas, gasoline, and oil used in pumping,
bailing, heating, and swabbing.
9. Lumber, nails, and other materials used
for repairing old well roads and fences.
10. Well swabs.
11. Employees’ transportation and travel
expenses.
12. Freight, express, parcel post, trucking,
and other transportation.

817 Lines expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating underground storage lines.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Walking or patrolling lines.
3. Attending valves, lubricating valves and
other equipment, blowing and cleaning lines
and drips, draining water from lines, operating and cleaning scrubbers, thawing
freezes.
4. Taking line pressures, changing pressure
charts, operating alarm gauges.
5. Building and repairing gate boxes, foot
bridges, stiles, tool boxes, etc., used in line
operations, erecting line markers and warning signs, repairing old line roads.
6. Cleaning debris, cutting grass and weeds
on rights-of-way.
7. Inspecting and testing not specifically to
determine necessity for repairs.
8. Protecting utility property during work
by others.
9. Standby time of emergency crews, responding to fire calls, etc.
10. Locating valve boxes or drip riser
boxes.
11. Cleaning and repairing tools used in
storage lines operations.
12. Cleaning structures and equipment.
13. Driving trucks.
Materials and expenses:
14. Line markers and warning signs.
15. Lumber, nails, etc., used in building and
repairing gate boxes, foot bridges, stiles, etc.
16. Charts.
17. Scrubber oil.
18. Hand tools.
19. Lubricants, wiping rags, waste, etc.

20. Freight, express, parcel post, trucking
and other transportation.
21. Employees’ transportation and travel
expenses.
22. Janitor and washroom supplies.
23. Utility services: light, water, telephone.
24. Gas used in operations.

818 Compressor station expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating underground storage compressor stations.
ITEMS
Labor:
1. Supervising.
2. Operating and checking engines, equipment, valves, machinery, gauges, and other
instruments, including cleaning, wiping,
polishing, and lubricating.
3. Operating boilers and boiler accessory
equipment, including fuel handling and ash
disposal, recording fuel used, and unloading
and storing coal and oil.
4. Repacking valves and replacing gauge
glasses, etc.
5. Recording pressures, replacing charts,
keeping logs, and preparing reports of station operations.
6. Inspecting and testing equipment when
not specifically to determine necessity for
repairs or replacement of parts.
7. Pumping drips at the station.
8. Taking dew point readings.
9. Testing water.
10. Cleaning structures housing equipment,
cutting grass and weeds, and minor grading
around station.
11. Cleaning and repairing hand tools used
in operations.
12. Driving trucks
13. Watching during shut downs.
14. Clerical work at station.
Materials and expenses:
15. Scrubber oil.
16. Lubricants, wiping rags, and waste.
17. Charts and printed forms, etc.
18. Gauge glasses.
19. Chemicals to test water.
20. Water tests and treatment by other
than employees.
21. Janitor and washroom supplies, first
aid supplies, landscaping supplies, etc.
22. Employees’ transportation and travel
expenses.
23. Freight, express, parcel post, trucking,
and other transportation.
24. Utility services: light, water, telephone.

819 Compressor station fuel and power.
A. This account shall include the
cost of gas, coal, oil, or other fuel, or
electricity, used for the operation of

760

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00770

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
underground storage compressor stations, including applicable amounts of
fuel stock expenses.
B. Records shall be maintained to
show the quantity of each type of fuel
consumed or electricity used at each
compressor station, and the cost of
such fuel or power. Respective amounts
of fuel stock and fuel stock expenses
shall be readily available.
NOTE: The cost of fuel, except gas, and related fuel stock expenses shall be charged
initially to appropriate fuel accounts carried
in accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of fuel used. See
accounts 151 and 152 for the basis of fuel
costs and includible fuel stock expenses.

820 Measuring and regulating station
expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating underground storage measuring and regulating stations.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Recording pressures and changing
charts, reading meters, etc.
3. Estimating lost meter registrations, etc.
except gas purchases and sales.
4. Calculating gas volumes from meter
charts except gas purchases and sales.
5. Adjusting and calibrating measuring
equipment, changing meters, orifice plates,
gauges, clocks, etc., not in connection with
construction or maintenance.
6. Testing gas samples, inspecting and testing gas sample tanks and other meter engineers equipment, determining specific gravity and Btu content of gas.
7. Inspecting and testing equipment not
specifically to determine necessity for repairs, including pulsation tests.
8. Cleaning and lubricating equipment.
9. Keeping log and other operating records,
preparing reports of operation, etc.
10. Attending boilers and operating other
accessory equipment.
11. Installing and removing district gauges
for pressure survey.
12. Thawing freeze in gauge pipe.
13.
Inspecting
and
pumping
drips,
dewatering manholes and pits, inspecting
sumps, cleaning pits, etc., blowing meter
drips.
14. Moving equipment, minor structures,
etc., not in connection with maintenance or
construction.
Materials and expenses:
15. Charts and printed forms, stationery
and office supplies, etc.

Pt. 201
16. Lubricants, wiping rags, waste.
17. Employees’ transportation and travel
expense.
18. Freight, express, parcel post, trucking
and other transportation.
19. Utility services: light, water, telephone.

821 Purification expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating equipment used for
purifying, dehydrating, and conditioning of natural gas in connection
with underground storage operations.
ITEMS
Labor:
1. Supervising.
2. Changing charts on fuel meters.
3. Emptying, cleaning and refilling purifier
boxes.
4. Oiling dip sheets of purifier covers.
5. Removing spent oxide to refuse piles.
6. Revivifying oxide.
7. Taking readings of inlet and outlet pressures and temperature.
8. Unloading and storing glycol.
9. Watching station and equipment.
10. Cutting grass and weeds, and minor
grading around equipment and stations.
11. Hauling operating employees, materials, supplies and tools, etc.
12. Inspecting and testing equipment, not
specifically to determine necessity for repairs or replacement of parts.
13. Lubricating equipment, valves, etc.
14. Operating and checking equipment,
valves, instruments, etc.
Materials and expenses:
15. Liquid purifying supplies.
16. Iron oxide.
17. Odorizing materials.
18. Charts, printed forms, etc.
19. Employees’ transportation and travel
expenses in connection with purification and
dehydration operations.
20. Freight, express, parcel post, trucking
and other transportation.
21. Gas used in operations.
22. Janitor, washroom and landscaping
supplies.
23. Lubricants, wiping rags, waste, etc.
24. Utility services: light, water, telephone.

822 Exploration and development.
This account shall include expenses
of investigation, exploration, and development of underground storage
projects under consideration which
prove not feasible. There also shall be
included in this account the net cost of
drilling nonoperative wells within an
existing storage project. (For Major

761

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00771

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

companies see account 183.2, Other Preliminary Survey and Investigation
Charges.)
NOTE: Include in account 352, Wells, the
cost of wells which may be drilled within a
storage project for purposes of pressure observation rather than for injection or withdrawal of gas.

823 Gas losses.
This account shall include the
amounts of inventory adjustments representing the cost of gas lost or unaccounted for in underground storage operations due to cumulative inaccuracies of gas measurements or other
causes. (See the Special Instructions to
Accounts 117.1, 117.2 and 117.3). If however, any adjustment is substantial,
the utility may, with approval of the
Commission, amortize the amount of
the adjustment to this account over future operating periods.
824 Other expenses.
This account shall include the cost of
labor, material used and expenses incurred in operating underground storage plant, and other underground storage operating expenses, not includible
in any of the foregoing accounts, including research, development, and
demonstration expenses.

lpowell on DSK54DXVN1OFR with $$_JOB

825 Storage well royalties.
A. This account shall include royalties, rents, and other payments includible in operating expenses for gas wells
and gas land acreage located within
and comprising underground storage
projects of the utility. (See operating
expense instruction 3.)
B. The records supporting this account shall be so maintained that information will be readily available for
each storage project, of the parties to
each contract, basis of the charges, and
location of wells to which the royalties
or rents of each contract relate.
826 Rents.
This account shall include rents for
property of others used in connection
with the storage of gas underground,
other than rents and royalties paid
with respect to storage wells and gas
lands utilized for the holding of gas in
underground storage. (See operating
expense instruction 3.)

830 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of underground storage facilities. Direct field supervision of specific
jobs shall be charged to the appropriate
maintenance account. (See operating
expense instruction 1.)
831 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 351, Structures and Improvements. (See operating expense instruction 2.)
832

Maintenance
wells.

of

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00772

Fmt 8010

and

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of storage
wells, the book cost of which is included in account 352, Wells, and the
maintenance of reservoirs, the book
cost of which is included in account
352.2, Reservoirs. (See operating expense instruction 2.)
833 Maintenance of lines.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of underground storage lines, the book cost of
which is includible in account 353,
Lines. (See operating expense instruction 2.)
834 Maintenance of compressor station
equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 354, Compressor Station
Equipment. (See operating expense instruction 2.)

762

VerDate Sep<11>2014

reservoirs

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
835 Maintenance of measuring and regulating station equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 355, Measuring and Regulating Equipment. (See operating expense instruction 2.)
836 Maintenance of purification equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of purification equipment, the book cost of
which is includible in account 356, Purification Equipment. (See operating
expense instruction 2.)
837 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 357, Other Equipment.
(See operating expense instruction 2.)
840 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of the
operation of other storage facilities.
Direct supervision of specific activities
such as operation of gas holders shall
be charged to the appropriate account.
(See operating expense instruction 1.)
841 Operation labor and expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating storage holders and
other storage equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Operating, checking, lubricating, cleaning, and polishing equipment, machinery,
valves, instruments, and other local storage
equipment.
3. Reading meters, gauges and other instruments, changing charts, preparing operating reports, etc.
4. Pumping inlet and outlet holder drips.
5. Inspecting and testing equipment when
not specifically for repairs or replacement of
parts.

Pt. 201
6. Cleaning structures and housing equipment, cutting grass and weeds, and doing
minor grading work around structures and
equipment.
7. Cleaning and repairing hand tools used
for operations, etc.
8. Operating steam lines for heating storage facilities.
Materials and expenses:
9. Charts for pressure gauges and meters,
printed forms, etc.
10. Lubricants, wiping rags, waste, etc.
11. Janitor and washroom supplies, landscaping supplies, etc.
12. Employee travel and transportation expenses.
13. Freight, express, parcel post, trucking,
and other transportation.
14. Utility services: light, water, and telephone.
15. Chemicals.
16. Refrigerants.
17. Research, development, and demonstration expenses.

842 Rents.
This account shall include rents for
property of others used or operated in
connection with other storage operations. (See operating expense instruction 3.)
842.1 Fuel.
A. This account shall include the
cost of natural gas or other fuel used in
the operation of other storage plant.
B. Concurrent credits offsetting
charges to this account for natural gas
used for fuel shall be made to account
812, Gas Used for Other Utility Operations—Credit.
842.2 Power.
This account shall include the cost of
electricity consumed for operation of
facilities used in the operation of other
storage plant.
842.3 Gas Losses.
This account shall include the
amounts of inventory adjustments representing the cost of gas lost or unaccounted for in other storage operations
due to shrinkage or other causes.

763

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00773

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

843.1 Maintenance supervision and engineering.

843.7 Maintenance of compressor equipment.

This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of other storage facilities. Direct field supervision of specific jobs
shall be charged to the appropriate
maintenance account. (See operating
expense instruction 1.)

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of compressor equipment, the book cost of
which is includible in account 363.3,
Compressor Equipment. (See operating
expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

843.2 Maintenance of structures and improvements.

843.8 Maintenance of measuring and
regulating equipment.

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 361, Structures and Improvements. (See operating expense instruction 2.)

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of measuring and regulating equipment, the
book cost of which is includible in account 363.4, Measuring and Regulating
Equipment. (See operating expense instruction 2.)

843.3 Maintenance of gas holders.

843.9 Maintenance of other equipment.

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of gas holders, the book cost of which is includible
in account 362, Gas Holders. (See operating expense instruction 2.)

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment the book cost of which is includible in account 363.5, Other Equipment.
(See operating expense instruction 2.)

843.4 Maintenance
equipment.

purification

844.1 Operations supervision and engineering.

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of purification equipment, the book cost of
which is includible in account 363, Purification Equipment. (See operating
expense instruction 2.)

This account shall include the cost of
labor and expenses incurred in the general supervision and direction of operations of liquefied natural gas facilities. Direct supervision of specific activities shall be charged to the appropriate operations accounts.

843.5 Maintenance
equipment.

liquefaction

844.2 LNG processing terminal labor
and expenses.

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of liquefaction equipment, the book cost of
which is includible in account 363.1,
Liquefaction Equipment. (See operating expense instruction 2.)

This account shall include the cost of
labor, materials used and expenses incurred in operating liquefied natural
gas processing equipment.

of

of

843.6 Maintenance of vaporizing equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of vaporizing equipment, the book cost of
which is includible in account 363.2,
Vaporizing Equipment. (See operating
expense instruction 2.)

ITEMS
Labor
1. Supervising.
2. Operating, checking, lubricating, cleaning, and polishing equipment, machinery,
valves, instruments, and other processing
equipment.
3. Reading meters, gauges and other instruments, changing charts, preparing operating reports, etc.
4. Inspecting and testing equipment when
not specifically for repairs or replacement of
parts.

764

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00774

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
5. Cleaning structures housing equipment,
cutting grass and weeds, and doing minor
grading work around structures and equipment.
6. Cleaning and repairing hand tools used
for operations, etc.
7. Operating offshore facilities such as
piers, docks, loading and unloading arms,
water craft, etc.
Materials and expenses
8. Charts for pressure gauges and meters,
printed forms, office supplies, etc.
9. Lubricants, wiping rags, cleaning materials, etc.
10. Janitor and washroom supplies, landscaping supplies, etc.
11. Employee travel and transportation expenses.
12. Freight, express, parcel post, trucking,
and other transportation.
13. Utility services: light, water, and telephone.
14. Chemicals.
15. Refrigerants.
16. Small hand tools.

844.3 Liquefaction processing labor and
expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating natural gas liquefaction equipment.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor
1. Supervising.
2. Operating, checking, lubricating, cleaning, and polishing equipment, machinery,
valves, instruments, and other processing
equipment.
3. Reading meters, gauges and other instruments, changing charts, preparing operating reports, etc.
4. Inspecting and testing equipment when
not specifically for repairs or replacement of
parts.
5. Cleaning structures housing equipment,
cutting grass and weeds, and doing minor
grading work around structures and equipment.
6. Cleaning and repairing hand tools used
for operations, etc.
7. Operating offshore facilities such as
piers, docks, loading and unloading arms,
water craft, etc.
Materials and expenses
8. Charts for pressure gauges and meters,
printed forms, office supplies, etc.
9. Lubricants, wiping rags, cleaning materials, etc.
10. Janitor and washroom supplies, landscaping supplies, etc.
11. Employee travel and transportation expenses.

Pt. 201
12. Freight, express, parcel post, trucking,
and other transportation.
13. Utility services: light, water, and telephone.
14. Chemicals.
15. Refrigerants.
16. Small hand tools.

844.4 LNG transportation labor and expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating LNG transportation equipment.
ITEMS
Labor
1. Supervision.
2. Operating LNG maritime tankers, LNG
barges, LNG tank trucks and other LNG
transportation equipment.
3. Cleaning and lubricating equipment.
4. Inspecting and testing equipment.
Materials and expenses
5. Charts, printed forms, office supplies,
etc.
6. Dry dock charges.
7. Lubricants, wiping rags, cleaning materials, etc.
8. Employee’s transportation travel and
temporary housing expenses.

844.5 Measuring and regulating labor
and expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating, measuring and
regulating stations in connection with
liquefied natural gas operations.
ITEMS
Labor
1. Supervising.
2. Recording pressures and changing
charts, reading meters, etc.
3. Estimating lost meter registrations,
etc., except gas purchases and sales.
4. Calculating gas volumes from meter
charts, except gas purchases and sales.
5. Adjusting and calibrating measuring
equipment, changing meters, orifice plates,
gauges, clocks, etc., not in connection with
construction or maintenance.
6. Testing gas samples, determining specific gravity and Btu content of gas.
7. Inspecting and testing equipment not
specifically to determine necessity for repairs including pulsation tests.
8. Cleaning and lubricating equipment.
9. Keeping log and other operating records,
preparing records of operations, etc.
10. Attending boilers and operating other
accessory equipment.

765

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00775

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

11. Installing and removing district gauges
for pressure survey.
12. Thawing freeze in gauge pipe.
13.
Inspecting
and
pumping
drips,
dewatering manholes and pits, inspecting
sumps, cleaning pits, blowing meter drips,
etc.
14. Moving equipment, minor structures,
etc., not in connection with maintenance or
construction.
Materials and expenses
15. Charts and printed forms.
16. Lubricants, wiping rags, waste.
17. Employees’ transportation and travel
expense.
18. Freight, express, parcel post, trucking
and other transportation.
19. Utility services: light, water, telephone.

844.6 Compressor station labor and expenses.
This account shall include the cost of
labor, materials used and expenses incurred, including fuel and power, in operating compressor stations in connection with liquefied natural gas operations.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor
1. Supervising.
2. Operating and checking engines, equipment valves, machinery, gauges, and other
instruments, including cleaning, wiping,
polishing, and lubricating.
3. Operating boilers and boiler accessory
equipment, including fuel handling, recording fuel used, etc.
4. Repacking valves and replacing gauge
glasses, etc.
5. Recording pressures, replacing charts,
keeping logs, and preparing reports of station operations.
6. Pumping drips at the station.
7. Taking dew point readings.
8. Testing water.
9. Cleaning structures housing equipment,
cutting grass and weeds, and minor grading
around station.
10. Cleaning and repairing hand tools used
in operations.
11. Driving trucks.
12. Watching during shutdowns.
13. Clerical work at station.
Materials and expenses
14. Scrubber oil.
15. Lubricants, wiping rags, waste.
16. Charts and printed forms, etc.
17. Gauge glasses.
18. Chemicals to treat water.
19. Water tests and treatment by other
than employees.
20. Janitor and washroom supplies, first
aid supplies, landscaping supplies, etc.

21. Employees’ transportation and travel
expenses.
22. Freight, express, parcel post, trucking,
and other transportation.
23. Utility services: light, water, telephone.

844.7 Communication system expenses.
This account shall include the cost of
labor, materials used and expenses incurred in connection with the operation of liquefied natural gas communications facilities, such as radio, telephone, microwave and other communication systems, including payments
to others for communications services.
ITEMS
Labor
1. Supervising.
2. Operating switchboards, radio equipment, power generators, microwave equipment, etc. (except general office switchboards).
3. Tagging telephone poles.
4. Testing and replacing telephone batteries, radio tubes, etc.
5. Cutting weeds and grass along telephone
rights-of-way and around structures and
equipment.
6. Changing radio frequencies.
7. Securing FCC authorization to change
frequencies.
8. Taking FCC radio operator tests.
9. Transferring mobile radios between vehicles and/or vessels.
10. Changing locations of telephones and
other communications equipment not in connection with maintenance or construction.
11. Inspecting and testing not specifically
to determine necessity for repairs.
12. Cleaning and lubricating equipment.
13. Cleaning structures housing equipment.
Materials and expenses
14. Payments to others for communications services.
15. Telephone batteries, radio tubes and
other electronic components.
16. Radio crystals and other materials used
in changing radio frequencies.
17. Lubricants, wiping rags, and waste.
18. Employees’ transportation and travel
expenses.
19. Freight, express, parcel post, trucking
and other transportation.

844.8 System control and load dispatching.
This account shall include the cost of
labor and expenses incurred in dispatching and controlling the supply
and flow of liquefied gas and vaporized

766

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00776

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
gas prior to introduction of such vaporized gas into the utility’s transmission
or distribution system.
ITEMS
Labor
1. Supervising.
2. Analysis of pressures for irregularities,
as received.
3. Collecting pressures by telephone and
radio.
4. Controlling mixture of various gases to
maintain proper Btu content.
5. Correspondence and records, typing and
maintaining files.
6. Controlling inputs and withdrawals of
liquefied gas for processing.
7. Instructing field men to increase or decrease pressures at regulators.
8. Maintaining pressures at compressor
stations, key line junctions and regulating
stations to divide the available gas during
heavy demand periods.
9. Maintaining pressure log sheets.
10. Maintaining proper compression ratios
at compressor stations, consistent with economical operations.
11. Maintaining lowest necessary line pressures consistent with satisfactory service.
12. Requesting pressure changes at compressor stations, regulating stations, and
key line junctions.
13. Rerouting gas during emergencies and
planned shutdowns.
Materials and expenses
14. Consultants’ fees and expenses.
15. Meals, traveling and incidental expenses in connection with system load dispatching.
16. Office supplies, stationery and printed
forms.
17. Transportation: company and rental vehicles.
18. Utility services: light, water, telephone.

845.1 Fuel.
A. This account shall include the
cost of gas or other fuel used for the
operation of liquefied natural gas
terminaling and processing facilities,
except compressor station fuel.
B. Concurrent credits offsetting
charges to this account for natural gas
used for fuel shall be made to account
812, Gas Used for Other Utility Operations—Credit.

lpowell on DSK54DXVN1OFR with $$_JOB

845.2 Power.
This account shall include the cost of
purchased power used in operation of
liquefied natural gas processing facilities, except compressor station power.

Pt. 201
845.3 Rents.
This account shall include rents for
property of others used, occupied or operated in connection with liquefied
natural gas processing operations. (See
operating expense instruction 3.)
845.4 Demurrage charges.
This account shall include demurrage
charges incurred by the utility relative
to LNG shipments received or processed by the utility.
845.5 Wharfage receipts—Credit.
This account shall include wharfage
receipts received or receivable from
LNG shippers or other parties relative
to LNG shipments received or processed by the utility.
845.6 Processing of liquefied or vaporized gas by others.
A. This account shall include
amounts paid to others for the processing of liquefied or vaporized gas of
the utility.
B. Records supporting this account
shall be so maintained that there shall
be readily available for each agreement, the name of the other party, Dth
of gas delivered to the other party for
processing and the Dth, of gas received
back by the utility after processing,
points of delivery to and receipt of gas
from the other party, amount and basis
of charges for the processing service.
NOTE: If in connection with any gas delivered to another for processing such other
party also processes the gas for extraction of
gasoline or other salable products, credits
attributable to the products so extracted
shall be made to account 491, Revenues from
Natural Gas Processed by Others, to the end
that amounts recorded in this account shall
only be charges for processing other than for
extraction of salable products.

846.1 Gas losses.
This account shall include the
amounts of inventory adjustments representing the cost of gas lost or unaccounted for in liquefied natural gas operations due to cumulative inaccuracies of gas measurements or other
causes. (See paragraph E of account
164.3, Liquefied Natural Gas Held for
Processing.) If, however, any adjustment is substantial, the utility may,

767

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00777

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

with approval of the Commission, amortize the amount of the adjustment to
this account over future operating periods.
846.2 Other expenses.
This account shall include the cost of
labor, materials used, and expenses incurred in operating liquefied natural
gas plant not includible elsewhere.
847.1 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of liquefied natural gas
terminaling and processing facilities.
Direct field supervision of specific jobs
shall be charged to the appropriate
maintenance accounts. (See operating
expense instruction 1.)
847.2 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures and improvements, the book cost
of which is included in account 364.2,
Structures and Improvements. (See operating expense instruction 2.)
847.3 Maintenance of LNG processing
terminal equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of LNG terminal processing equipment, the book
cost of which is included in account
364.3, LNG Processing Terminal Equipment. (See operating expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

847.4 Maintenance of LNG transportation equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of transportation equipment, the book cost of
which is included in account 364.4, LNG
Transportation Equipment. (See operating expense instruction 2.)
847.5 Maintenance of measuring and
regulating equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of meas-

uring and regulating equipment, the
book cost of which is included in account 364.5, Measuring and Regulating
Equipment. (See operating expense instruction 2.)
847.6 Maintenance of compressor station equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of compressor station equipment, the book
cost of which is included in account
364.6, Compressor Station Equipment.
(See operating expense instruction 2.)
847.7 Maintenance of communication
equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of communication equipment, the book cost of
which is included in account 364.7,
Communication Equipment. (See operating expense instruction 2.)
847.8 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is included in account 364.8, Other Equipment. (See operating expense instruction 2.)
850 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of the
operation of transmission facilities. Direct supervision of specific activities
such as operation of transmission lines,
compressor stations, etc. shall be
charged to the appropriate account.
(See operating expense instruction 1.)
851

System control and load dispatching.
This account shall include the cost of
labor and expenses incurred in dispatching and controlling the supply
and flow of gas through the system.
ITEMS
Labor:
1. Supervising.
2. Analyses of pressures for irregularities,
as received.

768

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00778

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
3. Collecting pressures by telephone and
radio.
4. Controlling mixture of various gases to
maintain proper Btu content.
5. Correspondence and records, typing and
maintaining files.
6. Controlling production and storage inputs and withdrawals.
7. Instructing field men to increase or decrease pressures at regulators.
8. Maintaining pressures at compressor
stations, key line junctions and regulating
stations to divide the available gas during
heavy demand periods.
9. Maintaining pressure log sheets.
10. Maintaining proper compression ratios
at compressor stations, consistent with economical operations.
11. Maintaining lowest necessary line pressures consistent with satisfactory service.
12. Maintaining well operation record by
well classification.
13. Requesting pressure changes at compressor stations, regulating stations, and
key line junctions.
14. Rerouting gas during emergencies and
planned shut downs.
Materials and expenses:
15. Consultants’ fees and expenses.
16. Meals, traveling, and incidental expenses in connection with system load dispatching.
17. Office supplies, stationery and printed
forms.
18. Transportation: company and rental vehicles.
19. Utility services: light, water, telephone.

852 Communication system expenses.
A. This account shall include the
cost of labor, materials used and expenses incurred in connection with the
operation of transmission communications facilities, such as radio and telephone communications systems, including payments to others for communications services for transmission and
load dispatching operations.
B. Credits shall be made to this account and charges made to production,
distribution and other gas utility functions and to other utility departments
for equitable portions of transmission
communications expenses attributable
to use of transmission communications
facilities other than in connection with
gas transmission and load dispatching
operation.
lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Operating switchboards, radio equipment, power generators, microwave equip-

Pt. 201
ment, etc. (except general office switchboards.)
3. Tagging telephone poles.
4. Testing and replacing telephone batteries, radio tubes, etc.
5. Cutting weeds and grass along telephone
rights-of-way and around structures and
equipment.
6. Changing radio frequencies.
7. Securing FCC authorization to change
frequencies.
8. Taking FCC radio operator tests.
9. Transferring mobile radios between vehicles.
10. Changing locations of telephones and
other communications equipment not in connection with maintenance or construction.
11. Inspecting and testing not specifically
to determine necessity for repairs.
12. Cleaning and lubricating equipment.
13. Cleaning structures housing equipment.
Materials and expenses:
14. Payments to others for communications services.
15. Telephone batteries, radio tubes, etc.
16. Radio crystals and other materials used
in changing radio frequencies.
17. Lubricants, wiping rags, and waste.
18. Employees’ transportation and travel
expenses.
19. Freight, express, parcel post, trucking,
and other transportation.

853 Compressor station labor and expenses.
This account shall include the cost of
labor, materials used and expenses incurred (other than fuel and power) in
operating transmission compressor stations.
ITEMS
Labor:
1. Supervising.
2. Operating and checking engines, equipment valves, machinery, gauges, and other
instruments, including cleaning, wiping,
polishing, and lubricating.
3. Operating boilers and boiler accessory
equipment, including fuel handling and ash
disposal, recording fuel used, and unloading
and storing coal and oil.
4. Repacking valves and replacing gauge
glasses, etc.
5. Recording pressures, replacing charts,
keeping logs, and preparing reports of station operations.
6. Inspecting and testing equipment not
specifically to determine necessity for repairs.
7. Pumping drips at the station.
8. Taking dew point readings.
9. Testing water.

769

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00779

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

10. Cleaning structures housing equipment,
cutting grass and weeds, and minor grading
around station.
11. Cleaning and repairing hand tools used
in operations.
12. Driving trucks.
13. Watching during shut downs.
14. Clerical work at station.
Materials and expenses:
15. Scrubber oil.
16. Lubricants, wiping rags, and waste.
17. Charts and printed forms, etc.
18. Gauge glasses.
19. Chemicals to treat water.
20. Water tests and treatment by other
than employees.
21. Janitor and washroom supplies, first
aid supplies, landscaping supplies, etc.
22. Employees’ transportation and travel
expenses.
23. Freight, express, parcel post, trucking,
and other transportation.
24. Utility services: light, water, telephone.

854 Gas for compressor station fuel.
A. This account shall include the
cost of gas used for the operation of
transmission compressor stations.
B. Records shall be maintained to
show the Dth of gas consumed at each
compressor station, and the cost of
such gas.
855 Other fuel and power for compressor stations.
A. This account shall include the
cost of coal, oil, and other fuel, or electricity, used for the operation of transmission compressor stations, including
applicable amounts of fuel stock expenses.
B. Records shall be maintained to
show the quantity of each type of fuel
consumed or electricity used at each
compressor station, and the cost of
such fuel or power. Respective amounts
of fuel stock and fuel stock expenses
shall be readily available.

lpowell on DSK54DXVN1OFR with $$_JOB

NOTE: The cost of fuel, includible in this
account, and related fuel stock expenses
shall be charged initially to appropriate fuel
accounts carried in accounts 151, Fuel Stock,
and 152, Fuel Stock Expenses Undistributed,
and cleared to this account on the basis of
fuel used. See accounts 151 and 152 for the
basis of fuel costs and includible fuel stock
expenses.

856 Mains expenses.
This account shall include the cost of
labor, materials used and expenses in-

curred
mains.

in

operating
ITEMS

Labor:
1. Supervising.
2. Walking or patrolling lines.
3. Attending valves, lubricating valves and
other equipment, blowing and cleaning lines
and drips, draining water from lines, operating and cleaning scrubbers, thawing
freezes.
4. Taking line pressures, changing pressure
charts, operating alarm gauges.
5. Building and repairing gate boxes, foot
bridges, stiles, etc., used in line operations,
erecting line markers and warning signs, repairing old line roads.
6. Cleaning debris, cutting grass and weeds
on rights-of-way.
7. Inspecting and testing not specifically to
determine necessity for repairs.
8. Protecting utility property during work
by others.
9. Standby time of emergency crews, responding to fire calls, etc.
10. Locating valve boxes or drip riser
boxes.
11. Cleaning and repairing tools used in
mains operations, making tool chests, etc.
12. Cleaning structures and equipment.
13. Driving trucks.
Materials and expenses:
14. Line markers and warning signs.
15. Lumber, nails, etc., used in building and
repairing gate boxes, foot bridges, stiles, etc.
16. Charts.
17. Scrubber oil.
18. Hand tools.
19. Lubricants, wiping rags, waste, etc.
20. Freight, express, parcel post, trucking
and other transportation.
21. Employees’ transportation and travel
expenses.
22. Janitor and washroom supplies.
23. Utility services: light, water, telephone.
24. Gas used in mains operations.

857 Measuring and regulating station
expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating transmission measuring and regulating stations.
ITEMS
Labor:
1. Supervising.
2. Recording pressures and changing
charts, reading meters, etc.
3. Estimating lost meter registrations,
etc., except gas purchases and sales.
4. Calculating gas volumes from meter
charts, except gas purchases and sales.

770

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00780

Fmt 8010

transmission

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
5. Adjusting and calibrating measuring
equipment, changing meters, orifice plates,
gauges, clocks, etc. not in connection with
construction or maintenance.
6. Testing gas samples, inspecting and testing gas sample tanks and other meter engineers’ equipment, determining specific gravity and Btu content of gas.
7. Inspecting and testing equipment not
specifically to determine necessity for repairs including pulsation tests.
8. Cleaning and lubricating equipment.
9. Keeping log and other operating records,
preparing reports of operations, etc.
10. Attending boilers and operating other
accessory equipment.
11. Installing and removing district gauges
for pressure survey.
12. Thawing freeze in gauge pipe.
13.
Inspecting
and
pumping
drips,
dewatering manholes and pits, inspecting
sumps, cleaning pits, etc., blowing meter
drips.
14. Moving equipment, minor structures,
etc., not in connection with maintenance or
construction.
Materials and expenses:
15. Charts and printed forms.
16. Lubricants, wiping rags, waste.
17. Employees’ transportation and travel
expense.
18. Freight, express, parcel post, trucking
and other transportation.
19. Utility services: light, water, telephone.

lpowell on DSK54DXVN1OFR with $$_JOB

858 Transmission and compression of
gas by others.
A. This account shall include
amounts paid to others for the transmission and compression of gas of the
utility.
B. Records supporting this account
shall be so maintained that there shall
be readily available for each agreement, name of other party, Dth of gas
delivered to the other party for transmission or compression and the Dth of
gas received back by the utility after
transmission or compression, points of
delivery to and receipt of gas from
other party, amount and basis of
charges for the transmission or compression service.
NOTE: If in connection with any gas delivered to another for transmission or compression such other party also processes the gas
for extraction of gasoline or other salable
products, credits attributable to the products so extracted shall be made to account
491, Revenues from Natural Gas Processed by
Others, to the end that amounts recorded in
this account shall only be charges for transportation or compression service.

Pt. 201
859 Other expenses.
This account shall include the cost of
labor, material used and expenses incurred in operating transmission system equipment and other transmission
system expenses not includible in any
of the foregoing accounts, including research, development, and demonstration expenses.
860 Rents.
This account shall include rents for
property of others used, occupied or operated in connection with the operation of the transmission system. Include herein rentals paid for regulator
sites, railroad crossings, rights-of-way,
annual payments to governmental bodies and others for use of public or private lands, and reservations for rightsof-way. (See operating expense instruction 3.)
861 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of transmission system facilities. Direct field supervision of specific
jobs shall be charged to the appropriate
maintenance accounts. (See operating
expense instruction 1.)
862 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 366, Structures and Improvements. (See operating expense instruction 2.)
863 Maintenance of mains.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of mains,
the book cost of which is includible in
account 367, Mains. (See operating expense instruction 2.)
ITEMS
1. Supervising.
2. Electrolysis and leak inspection.
3. Installing and removing temporary lines,
when necessitated by maintenance.
4. Lamping and watching while making repairs.

771

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00781

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

5. Lowering and changing location of lines,
when the same pipe is used.
6. Protecting lines from fires, floods, landslides, etc.
7. Rocking creek crossings.

864 Maintenance of compressor station
equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 368, Compressor Station
Equipment. (See operating expense instruction 2.)
865 Maintenance of measuring and regulating station equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 369, Measuring and Regulating Station Equipment. (See operating expense instruction 2.)
866

Maintenance
equipment.

of

communication

This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 370, Communication
Equipment. (See operating expense instruction 2.)
867 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 371, Other Equipment.
(See operating expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

870 Operation supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of distribution system operations. Direct supervision of specific activities such as
load dispatching, mains operation, removing and resetting meters, etc.,
shall be charged to the appropriate account. (See operating expense instruction 1.)

871 Distribution load dispatching.
This account shall include the cost of
labor, materials used and expenses incurred in dispatching and controlling
the supply and flow of gas through the
distribution system.
ITEMS
Labor:
1. Supervising.
2. Analyzing pressures for irregularities.
3. Collecting pressures by telephone and
radio.
4. Controlling mixture of various gases to
maintain proper Btu content.
5. Correspondence and records, typing and
maintaining files.
6. Controlling gas-make and inputs to distribution system.
7. Maintaining pressures at key points to
divide the available gas during heavy demand periods.
8. Maintaining pressure log sheets.
9. Maintaining lowest necessary line pressures consistent with satisfactory service.
10. Rerouting gas during emergencies and
planned shut downs.
Materials and expenses:
11. Consultants’ fees and expenses.
12. Meals, traveling, and incidental expenses.
13. Office supplies, stationery and printed
forms.
14. Transportation: company and rented
vehicles.
15. Utility services: light, water, telephone.

872 Compressor station labor and expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating distribution compressor stations.
ITEMS
Labor:
1. Supervising.
2. Operating and checking engines, equipment valves, machinery, gauges, and other
instruments, including cleaning, wiping,
polishing, and lubricating.
3. Operating boilers and boiler accessory
equipment, including fuel handling and ash
disposal, recording fuel used, and unloading
and storing coal and oil.
4. Repacking valves and replacing gauge
glasses, etc.
5. Recording pressures, replacing charts,
keeping logs, and preparing reports of station operations.
6. Inspecting and testing equipment and instruments when not specifically to determine necessity for repairs or replacement of
parts.

772

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00782

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
7. Pumping drips at the station.
8. Taking dew point readings.
9. Testing water.
10. Cleaning structures housing equipment,
cutting grass and weeds, and doing minor
grading around station.
11. Cleaning and repairing hand tools used
in operations.
12. Driving trucks.
13. Watching during shut downs.
14. Clerical work at station.
Materials and expenses:
15. Scrubber oil.
16. Lubricants, wiping rags, and waste.
17. Charts and printed forms, etc.
18. Gauge glasses.
19. Chemicals to test water.
20. Water tests and treatment by other
than employees.
21. Janitor and washroom supplies, first
aid supplies, landscaping supplies, etc.
22. Employees’ transportation and travel
expenses.
23. Freight, express, parcel post, trucking,
and other transportation.
24. Utility services: light, water, telephone.

873 Compressor station fuel and power
(Major only).
A. This account shall include the
cost of gas, coal, oil, or other fuel, or
electricity, used for the operation of
distribution compressor stations, including applicable amounts of fuel
stock expenses.
B. Records shall be maintained to
show the quantity of each type of fuel
consumed or electricity used at each
compressor station, and the cost of
such fuel or power. Respective amounts
of fuel stock and fuel stock expenses
shall be readily available.
NOTE: The cost of fuel, except gas, and related fuel stock expenses shall be charged
initially to appropriate fuel accounts carried
in accounts 151, Fuel Stock, and 152, Fuel
Stock Expenses Undistributed, and cleared
to this account on the basis of fuel used. See
accounts 151 and 152 for the basis of fuel
costs and includible fuel stock expenses.

874 Mains and services expenses.
This account shall include the cost of
labor, materials used and expenses incurred in operating distribution system
mains and services.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Walking or patrolling lines.
3. Attending valves, lubricating valves and
other equipment, blowing and cleaning lines

Pt. 201
and drips, draining water from lines, thawing
freezes.
4. Taking line pressures, changing pressure
charts, operating alarm gauges.
5. Building and repairing gate boxes, foot
bridges, stiles, etc. used in distribution
mains operations, erecting line markers and
warning signs, etc.
6. Cleaning debris, cutting grass and weeds
on rights-of-way.
7. Inspecting and testing equipment not
specifically to determine necessity for repairs.
8. Protecting utility property during work
by others.
9. Standby time of emergency crews, responding to fire calls, etc.
10. Locating and inspecting valve boxes or
drip riser boxes, service lines, mains, etc.
11. Cleaning and repairing tools used in
mains operations, making tool boxes, etc.
12. Cleaning structures and equipment.
13. Driving trucks used in mains and service operations.
14. Making routine leak survey.
15. Oil fogging.
Materials and Expenses:
1. Line markers and warning signs.
2. Lumber, nails, etc., used in building and
repairing gate boxes (foot bridges, stiles, tool
boxes, etc.).
3. Charts and printed forms.
4. Scrubber oils.
5. Hand tools.
6. Lubricants, wiping rags, waste, etc.
7. Freight, express, parcel post, trucking
and other transportation.
8. Uniforms.
9. Employee transportation and travel expenses.
10. Janitor and washroom supplies.
11. Utility services: light, water, telephone.
12. Gas used in mains operation.
13. Oil for fogging.

875 Measuring and regulating station
expenses—General.
This account shall include the cost of
labor, materials used and expenses incurred in operating general distribution measuring and regulating stations.
ITEMS
Labor:
1. Supervising.
2. Recording pressures and changing
charts, reading meters, etc.
3. Estimating lost meter registrations, etc.
except purchases and sales.
4. Calculating gas volumes from meter
charts, except gas purchases and sales.
5. Adjusting and calibrating measuring
equipment, changing meters, orifice plates,
gauges, clocks, etc.

773

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00783

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

6. Taking and testing gas samples, inspecting and testing valves, regulators, gas sample tanks and other meter engineers’ equipment, determining specific gravity and Btu
content of gas.
7. Inspecting and testing equipment and instruments not specially to determine necessity for repairs, including pulsation tests.
8. Cleaning and lubricating equipment.
9. Keeping log and other operating records.
10. Attending boilers and operating other
accessory equipment.
11. Installing and removing district gauges
for pressure survey.
12. Thawing freeze in gauge pipe.
13.
Inspecting
and
pumping
drips,
dewatering manholes and pits, inspecting
sumps, cleaning pits, blowing meter drips,
etc.
14. Moving equipment, minor structures,
etc., not in connection with maintenance or
construction.
Materials and expenses:
15. Charts and printed forms, stationery
and office supplies, etc.
16. Lubricants, wiping rags, waste.
17. Uniforms.
18. Employee transportation and travel expenses.
19. Freight, express, parcel post, trucking
and other transportation.
20. Utility services: light, water, telephone.

876 Measuring and regulating station
expenses—Industrial.
This account shall include the cost of
labor, materials used and expenses incurred in operating large measuring
and regulating stations located on
local distribution systems to serve specific commercial and industrial customers.
ITEMS
(See account 875 for items.)

877 Measuring and regulating station
expenses—City gate check stations.

lpowell on DSK54DXVN1OFR with $$_JOB

This account shall include the cost of
labor, materials used and expenses incurred in operating measuring and regulating stations used to measure and
regulate the receipt of gas at entry
points to distribution systems.
NOTE: Pipe line companies shall include in
the transmission functional classification
city gate and main line industrial measuring
and regulating stations, except that where
pipe line companies measure deliveries of gas
at entry points to their own distribution systems, they shall have the option, if consistently observed, of including such stations ei-

ther in the transmission or distribution
function for accounting purposes.
ITEMS
(See account 875 for items.)

878 Meter and house regulator expenses.
This account shall include the cost of
labor, materials used and expenses incurred in connection with removing,
resetting, changing, testing, and servicing customer meters and house regulators.
ITEMS
Labor:
(a) Removing, reinstalling, and changing
or exchanging customer meters and house
regulators:
1. Initiating or terminating service, including incidental meter reading.
2. Periodic replacement of meters and
house regulators because of age.
3. Changing or exchanging meters and
house regulators because of complaints or removal for inspection.
4. Resetting meters on existing connections.
5. Handling meters and house regulators to
and from customer premises and meter shop.
6. Listing, tagging, and placing meter labels, etc., for removed and reset meters.
7. Changing position of meters or house
regulators on the same premises.
8. Installing or removing blank linings.
9. Unproductive calls, etc.
(b) Turning on and turning off meters, except for failures of customers to pay bills:
10. Turning on meters, including necessary
time to insure that gas lines are proper to
use and that appliances are in usable condition.
11. Turning off meters including time to
make safety precautions.
(c) Other:
12. Supervising.
13. Clerical work on meter history and associated equipment record cards, test cards,
and reports.
14. Handling and recording meters for
stock.
15. Inspecting and testing meters and
house regulators.
16. Inspecting and adjusting meter testing
equipment.
17. Driving trucks used in meter operations.
Materials and expenses:
18. Meter locks and seals.
19. Lubricants, wiping rags, waste, etc.
20. Uniforms.
21. Freight, express, parcel post, trucking,
and other transportation.

774

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00784

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
22. Utility services: light, water, telephone,
heating.
23. Office supplies, stationery and printing.
24. Employees’ transportation expenses.
25. Janitor, washroom, first aid supplies,
etc.
NOTE: The cost of the first setting of a
meter or house regulator shall be charged to
account 382, Meter Installations, or account
384, House Regulator Installations, as appropriate.

879 Customer installations expenses.
A. This account shall include the
cost of labor, materials used and expenses incurred in work on customer
premises other than expenses includible in account 878, Meter and House
Regulator Expenses, including the cost
of servicing customer-owned appliances
when the cost of such work is borne by
the utility.
B. Damage to customer equipment by
employees of the utility whether incidental to the work or the result of negligence, shall be charged to the job on
which the employee was engaged at the
time of damage.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Supervising.
2. Altering customer-owned service extensions or meter connections.
3. Investigating and correcting pressure
difficulties or stoppages in customer-owned
piping.
4. Adjusting and repairing burner pilots because of impurities in the gas or failure of
the distribution system.
5. Oiling or spraying noisy customer meters.
6. Investigating and stopping gas leaks on
customers’ premises caused by defective
meter, customer-owned piping, or customer
appliances.
7. Inspecting new installations to determine that the customers’ equipment and piping are properly installed and connected.
8. Consolidating meter installations, without change of size, due to elimination of separate meters for different service classifications.
9. Investigating and adjusting complaints
of service on customers’ premises.
10. Gas load surveys including the incidental preparations and replacement of meters.
11. Unproductive calls.
12. Stenographic and clerical work.
13. Janitorial services, etc.
14. Installing demand or test meters.
15. Inspecting, cleaning, repairing and adjusting customer-owned appliances for do-

Pt. 201
mestic, industrial, or commercial use, including house heating furnaces and other
space heating appliances, hotel and restaurant appliances.
16. Replacing defective parts in customerowned appliances and salvaging reusable appliance parts.
Materials and expenses:
17. Lubricants, wiping rags, waste, etc.
18. Uniforms.
19. Replacement parts for appliances.
20. Office supplies, printing and stationery.
21. Janitor, washroom, first aid supplies,
etc.
22. Employees’ transportation and travel
expenses.
23. Utility services: light, water, telephone.
NOTE: Amounts billed customers for any
work, the cost of which is charged to this account, shall be credited to this account. Any
excess over costs resulting therefrom shall
be transferred to account 488, Miscellaneous
Service Revenues.

880 Other expenses.
This account shall include the cost of
distribution maps and records, distribution office expenses, and the cost
of labor and materials used and expenses incurred in distribution systems
operations not provided for elsewhere,
including the expenses of operating
street lighting systems and research,
development, and demonstration expenses.
881 Rents.
This account shall include rents for
property of others used, occupied or operated in connection with the operation of the distribution system. Include herein rentals paid for regulator
sites, railroad crossings, rights-of-way,
annual payments to governmental bodies and others for use of public or private lands, and reservations for rightsof-way. (See operating expense instruction 3.)
885 Maintenance supervision and engineering.
This account shall include the cost of
labor and expenses incurred in the general supervision and direction of maintenance of distribution system facilities. Direct field supervision of specific
jobs shall be charged to the appropriate
maintenance accounts. (See operating
expense instruction 1.)

775

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00785

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

886 Maintenance of structures and improvements.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of structures, the book cost of which is includible in account 375, Structures and Improvements. (See operating expense instruction 2.)
887 Maintenance of mains.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of distribution mains, the book cost of which is
includible in account 376, Mains. (See
operating expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Supervising.
2. Trenching, backfilling, and breaking and
restoring pavement in connection with the
installation of leak or reinforcing clamps.
3. Work performed as the result of municipal improvements, such as street widening,
sewers, etc., where the gas mains are not retired.
4. Municipal inspections relating to maintenance work.
5. Other work of the following character:
a. Locating leaks incident to maintenance.
b. Cutting off mains without replacement.
(Minor cuts not retired.)
c. Repairing leaking joints.
d. Repairing broken mains.
e. Repairing leaks on main drip riser or
valve test pipe.
f. Bringing main valve box, main drip riser
box, valve test pipe box, or pressure pipe
roadway box up to grade.
g. Cleaning, repainting, coating, and wrapping exposed mains.
h. Repacking main valves.
i. Locating and clearing gas main faults.
j. Lowering and changing location of
mains.
k. Trenching, backfilling, cutting-in or removal of pipe not retired in connection with
the installation of leak clamps, valves, or
drips.
l. Watching and lamping open cuts associated with maintenance.
m. Restoration of permanent pavement in
connection with work chargeable to maintenance.
n. Emergency stand-by time associated
with maintenance.
o. Repairing sewers, drains, walls, etc.,
when damaged by maintenance work.
p. Making electrolysis tests to maintain
life of plant.
q. Repairing property of others damaged by
maintenance work.

888 Maintenance of compressor station
equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 377, Compressor Station
Equipment. (See operating expense instruction 2.)
889 Maintenance of measuring and regulating station equipment—General.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 378, Measuring and Regulating Station Equipment—General.
(See operating expense instruction 2.)
890 Maintenance of measuring and regulating station equipment—Industrial.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 385, Industrial Measuring and Regulating Station Equipment. (See operating expense instruction 2.)
891 Maintenance of measuring and regulating station equipment—City
gate check stations.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 379, Measuring and Regulating Station Equipment—City Gate
Check Stations. (See operating expense
instruction 2.)
892 Maintenance of services.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of services,
the book cost of which is includible in
account 380, Services. (See operating
expense instruction 2.)
ITEMS
1. Supervising.
2. Testing pipe for leaks and condition of
wrapping.
3. Testing for, locating, and clearing trouble on company maintained services.

776

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00786

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
4. Inspecting and testing after repairs have
been made.
5. Reporting on the condition of gas services to determine the need for repairs.
6. Making minor repairs and changes.
7. Rearranging and changing the location
of services not retired.
8. Repairing service valves for reuse.
9. Stopping leaks on service pipes and drip
risers.
10. Lowering and raising curb boxes to
grade.
11. Replacing less than a complete service
when not retired.
12. Installing fittings, valves, drips, frost
protection devices, or replacing similar
items on existing services.
13. Cutting and replacing pavement, pavement base and sidewalks in connection with
maintenance work.
14. Restoring condition of services damaged by fire, storm, leakage, flood, accident
or other casualties.
15. Repairing property of others damaged
by maintenance work.
16. Transferring services in connection
with the installation of new mains.
17. Installing, maintaining, and removing
temporary facilities to prevent the interruption of service.
18. Converting low pressure gas distribution service to medium or high pressure service.
19. Relocating and rerouting gas service
temporarily during alterations of buildings.
20. Performing work resulting from municipal improvements, such as street widening,
sewers, etc.
21. Replacing service valve box or drip riser
box.
22. Installing, removing or replacing service valve, drip pot, or drip riser.
23. Repacking service valve.

893 Maintenance of meters and house
regulators.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of meters
and house regulators, the book cost of
which is includible in accounts 381, Meters, and 383, House Regulators. (See
operating expense instruction 2.)

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
1. Inspecting and testing meters and house
regulators on customers’ premises or in
shops in connection with repairs.
2. Cleaning, repairing, and painting meters,
house regulators, and accessories and equipment.
3. Repairing testing equipment.
4. Rebuilding and overhauling meters without changing their rated capacities.

Pt. 201
5. Resealing house regulators with mercury, replacing diaphragms, springs and
other defective or worn parts.
6. Replacing or adding any item not constituting a retirement unit.

894 Maintenance of other equipment.
This account shall include the cost of
labor, materials used and expenses incurred in the maintenance of street
lighting equipment and all other distribution system equipment not provided for elsewhere, the book cost of
which is includible in accounts 386,
Other Property on Customers’ Premises, and 387, Other Equipment. (See
operating expense instruction 2.)
901 Supervision.
This account shall include the cost of
labor and expenses incurred in the general direction and supervision of customer accounting and collecting activities. Direct supervision of a specific
activity shall be charged to account
902, Meter Reading Expenses, or account 903, Customer Records and Collection Expenses, as appropriate. (See
operating expense instruction 1.)
902 Meter reading expenses.
This account shall include the cost of
labor, materials used and expenses incurred in reading customer meters, and
determining consumption when performed by employees engaged in reading meters.
ITEMS
Labor:
1. Addressing forms for obtaining meter
readings by mail.
2. Changing and collecting meter charts
used for billing purposes.
3. Inspecting time clocks, checking seals,
etc., when performed by meter readers and
the work represents a minor activity incidental to regular meter reading routine.
4. Meter reading—small consumption, and
obtaining load information for billing purposes. (Exclude and charge to account 878,
Meter and House Regulator Expenses, or to
account 903, Customer Records and Collection Expenses, as applicable, the cost of obtaining meter readings, first and final, if incidental to the operation of removing or resetting, sealing or locking, and disconnecting, or reconnecting meters.)

777

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00787

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

5. Measuring gas—large consumption, including reading meters, changing charts, calculating charts, estimating lost meter registrations, determining specific gravity, etc.,
for billing purposes.
6. Computing consumption from meter
reader’s book or from reports by mail when
done by employees engaged in reading meters.
7. Collecting from prepayment meters
when incidental to meter reading.
8. Maintaining record of customers’ keys.
9. Computing estimated or average consumption when performed by employees engaged in reading meters.
Materials and expenses:
10. Badges, lamps, and uniforms.
11. Demand charts, meter books and binders and forms for recording readings, but not
the cost of preparation.
12. Postage and supplies used in obtaining
meter readings by mail.
13. Transportation, meals and incidental
expenses.

903 Customer records and collection expenses.
This account shall include the cost of
labor, materials used and expenses incurred in work on customer applications, contracts, orders, credit investigations, billing and accounting, collections and complaints.

lpowell on DSK54DXVN1OFR with $$_JOB

Items
Labor:
1. Receiving, preparing, recording and handling routine orders for service, disconnections, transfers or meter tests initiated by
the customer, excluding the cost of carrying
out such orders, which is chargeable to the
account appropriate for the work called for
by such orders.
2. Investigations of customers’ credit and
keeping of records pertaining thereto, including records of uncollectible accounts
written off.
3. Receiving, refunding or applying customer deposits and maintaining customer
deposit, line extension, and other miscellaneous records.
4. Checking consumption shown by meter
readers’ reports where incidental to preparation of billing data.
5. Preparing address plates and addressing
bills and delinquent notices.
6. Preparing billing data.
7. Operating billing and bookkeeping machines.
8. Verifying billing records with contracts
or rate schedules.
9. Preparing bills for delivery, and mailing
or delivering bills.

10. Collecting revenues, including collection from prepayment meters unless incidental to meter reading operations.
11. Balancing collections, preparing collections for deposit, and preparing cash reports.
12. Posting collections and other credits or
charges to customer accounts and extending
unpaid balances.
13. Balancing customer accounts and controls.
14. Preparing, mailing, or delivering delinquent notices and preparing reports of delinquent accounts.
15. Final meter reading of delinquent accounts when done by collectors incidental to
regular activities.
16. Disconnecting and reconnecting services because of nonpayment of bills.
17. Receiving, recording, and handling of
inquiries, complaints, and requests for investigations from customers, including preparation of necessary orders, but excluding the
cost of carrying out such orders, which is
chargeable to the account appropriate for
the work called for by such orders.
18. Statistical and tabulating work on customer accounts and revenues, but not including special analyses for sales department,
rate department, or other general purposes,
unless incidental to regular customer accounting routines.
19. Preparing and periodically rewriting
meter reading sheets.
20. Determining consumption and computing estimated or average consumption
when performed by employees other than
those engaged in reading meters.
Materials and expenses:
21. Address plates and supplies.
22. Cash overages and shortages.
23. Commissions or fees to others for collecting.
24. Payments to credit organizations for
investigations and reports.
25. Postage.
26. Transportation expenses, including
transportation of customer bills and meter
books under centralized billing procedure.
27. Transportation, meals, and incidental
expenses.
28. Bank charges, exchange, and other fees
for cashing and depositing customers’
checks.
29. Forms for recording orders for services,
removals, etc.
30. Rent of mechanical equipment.
NOTE: The cost of work on meter history
and meter location records is chargeable to
account 878, Meter and House Regulator Expenses.

904 Uncollectible accounts.
This account shall be charged with
amounts sufficient to provide for losses
from uncollectible utility revenues.

778

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00788

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
Concurrent credits shall be made to account 144, Accumulated Provision for
Uncollectible Accounts—Credit. Losses
from uncollectible accounts shall be
charged to account 144.
905 Miscellaneous customer accounts
expenses.
This account shall include the cost of
labor, materials used and expenses incurred not provided for in other accounts.
ITEMS
Labor:
1. General clerical and stenographic work.
2. Miscellaneous labor.
Materials and expenses:
3. Communication service.
4. Miscellaneous office supplies and expenses and stationery and printing other
than those specifically provided for in accounts 902 and 903.

907 Supervision.
This account shall include the cost of
labor and expenses incurred in the general direction and supervision of customer service activities, the object of
which is to encourage safe, efficient
and economical use of the utility’s
service. Direct supervision of a specific
activity within customer service and
informational expense classification
shall be charged to the account wherein the costs of such activity are included. (See operating expense instruction 1.)
908 Customer assistance expenses.
This account shall include the cost of
labor, materials used, and expenses incurred in providing instructions or assistance to customers, the object of
which is to promote safe, efficient and
economical use of the utility’s service.

lpowell on DSK54DXVN1OFR with $$_JOB

ITEMS
Labor:
1. Direct supervision of department.
2. Processing customer inquiries relating
to the proper use of gas equipment, the replacement of such equipment and information related to such equipment.
3. Advice directed to customers as to how
they may achieve the most efficient and
safest use of gas equipment.
4. Demonstrations, exhibits, lectures, and
other programs designed to instruct customers in the safe, economical or efficient

Pt. 201
use of gas service, and/or oriented toward
conservation of energy.
5. Engineering and technical advice to customers, the object of which is to promote
safe, efficient and economical use of the utility’s service.
Materials and expenses:
6. Supplies and expenses pertaining to demonstrations, exhibits, lectures, and other
programs.
7. Loss in value on equipment and appliances used for customer assistance programs.
8. Office supplies and expenses.
9. Transportation, meals, and incidental
expenses.
NOTE: Do not include in this account expenses that are provided for elsewhere, such
as accounts 416, Costs and Expenses of Merchandising, Jobbing and Contract Work, 879,
Customer Installations Expenses, and 912,
Demonstrating and Selling Expenses.

909 Informational and instructional advertising expenses.
This account shall include the cost of
labor, materials used and expenses incurred in activities which primarily
convey information as to what the utility urges or suggests customers should
do in utilizing gas service to protect
health and safety, to encourage environmental protection, to utilize their
gas equipment safely and economically, or to conserve natural gas.
ITEMS
Labor:
1. Direct supervision of informational activities.
2. Preparing informational materials for
newspapers, periodicals, billboards, etc., and
preparing and conducting informational motion pictures, radio and television programs.
3. Preparing informational booklets, bulletins, etc., used in direct mailings.
4. Preparing informational window and
other displays.
5. Employing agencies, selecting media and
conducting negotiations in connection with
the placement and subject matter of information programs.
Materials and expenses:
6. Use of newspapers, periodicals, billboards, radio, etc., for informational purposes.
7. Postage on direct mailings to customers
exclusive of postage related to billings.
8. Printing of informational booklets,
dodgers, bulletins, etc.
9. Supplies and expenses in preparing informational materials by the utility.
10. Office supplies and expenses.

779

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00789

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

NOTE A: Exclude from this account and
charge to account 930.2, Miscellaneous General Expenses, the cost of publication of
stockholder reports, dividend notices, bond
redemption notices, financial statements,
and other notices of a general corporate
character. Exclude also all expenses of a promotional, institutional, goodwill or political
nature, which are includible in such accounts as 913, Advertising Expenses, 930.1,
General Advertising Expenses, and 426.4, Expenditures for Certain Civic, Political and
Related Activities.
NOTE B: Entries relating to informational
advertising included in this account shall
contain or refer to supporting documents
which identify the specific advertising message. If references are used, copies of the advertising message shall be readily available.

910 Miscellaneous customer service and
informational expenses.
This account shall include the cost of
labor, materials used and expenses incurred in connection with customer
service and informational activities
which are not includible in other customer information expense accounts.
ITEMS
Labor:
1. General clerical and stenographic work
not assigned to specific customer service and
information programs.
2. Miscellaneous labor.
Materials and expenses:
3. Communication service.
4. Printing, postage and office supplies expenses.

911 Supervision.
This account shall include the cost of
labor and expenses incurred in the general direction and supervision of sales
activities, except merchandising. Direct supervision of a specific activity,
such as demonstrating, selling, or advertising shall be charged to the account wherein the costs of such activity are included. (See operating expense instruction 1.)

lpowell on DSK54DXVN1OFR with $$_JOB

912

Demonstrating and selling expenses.
This account shall include the cost of
labor, materials used and expenses incurred in promotional, demonstrating,
and selling activities, except by merchandising, the object of which is to
promote or retain the use of utility
services by present and prospective
customers.

ITEMS
Labor:
1. Demonstrating uses of utility services.
2. Conducting cooking schools, preparing
recipes, and related home service activities.
3. Exhibitions, displays, lectures, and other
programs designed to promote use of utility
services.
4. Experimental and development work in
connection with new and improved appliances and equipment, prior to general public
acceptance.
5. Solicitation of new customers or of additional business from old customers, including commissions paid employees.
6. Engineering and technical advice to
present or prospective customers in connection with promoting or retaining the use of
utility services.
7. Special customer canvasses when their
primary purpose is the retention of business
or the promotion of new business.
Materials and expenses:
8. Supplies and expenses pertaining to demonstration, and experimental and development activities.
9. Booth and temporary space rental.
10. Loss in value on equipment and appliances used for demonstration purposes.
11. Transportation, meals, and incidental
expenses.

913 Advertising expenses.
This account shall include the cost of
labor, materials used and expenses incurred in advertising designed to promote or retain the use of utility service, except advertising the sale of merchandise by the utility.
ITEMS
Labor:
1. Direct supervision of department.
2. Preparing advertising material for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio
and television programs.
3. Preparing booklets, bulletins, etc., used
in direct mail advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and
media and conducting negotiations in connection with the placement and subject matter of sales advertising.
Materials and expenses:
7. Advertising in newspapers, periodicals,
billboards, radio, etc., for sales promotion
purposes, but not including institutional or
goodwill advertising includible in account
930.1, General Advertising Expenses.
8. Materials and services given as prizes or
otherwise in connection with canning, or
cooking contests, bazaars, etc., in order to

780

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00790

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
publicize and promote the use of utility services.
9. Fees and expenses of advertising agencies and commercial artists.
10. Novelties for general distribution.
11. Postage on direct mail advertising.
12. Premiums distributed generally, such
as recipe books, etc., when not offered as inducement to purchase appliances.
13. Printing booklets, dodgers, bulletins,
etc.
14. Supplies and expenses in preparing advertising material.
15. Office supplies and expenses.

1. General clerical and stenographic work
not assigned to specific functions.
2. Special analysis of customer accounts
and other statistical work for sales purposes
not a part of the regular customer accounting and billing routine.
3. Miscellaneous labor.
Materials and expenses:
4. Communication service.
5. Printing, postage, and office supplies and
expenses applicable to sales activities, except those chargeable to account 913, Advertising Expenses.

NOTE A: The cost of advertisements which
set forth the value or advantages of utility
service without reference to specific appliances, or, if reference is made to appliances,
invites the reader to purchase appliances
from his dealer, or refer to appliances not
carried for sale by the utility, shall be considered sales promotion advertising and
charged to this account. However, advertisements which are limited to specific makes of
appliances sold by the utility and prices,
terms, etc., thereof, without referring to the
value or advantages of utility service, shall
be considered as merchandise advertising
and the cost shall be charged to Costs and
Expenses of Merchandising, Jobbing and
Contract Work, accounts 416.
NOTE B: Advertisements which substantially mention or refer to the value or advantages of utility service, together with specific reference to makes of appliances sold by
the utility and the price, terms, etc., thereof,
and designed for the joint purpose of increasing the use of utility service and the sales of
appliances, shall be considered as a combination advertisement and the costs shall be
distributed between this account and account 416 on the basis of space, time, or
other proportional factors.
NOTE C: Exclude from this account and
charge to account 930.2, Miscellaneous General Expenses, the cost of publication of
stockholder reports, dividend notices, bond
redemption notices, financial statements,
and other notices of a general corporate
character. Exclude also all institutional or
goodwill advertising. (See account 930.1, General Advertising Expenses.)

920 Administrative and general salaries.

914–915 [Reserved]

lpowell on DSK54DXVN1OFR with $$_JOB

Pt. 201

916 Miscellaneous sales expenses.
This account shall include the cost of
labor, materials used and expenses incurred in connection with sales activities, except merchandising, which are
not includible in other sales expense
accounts.

A. This account shall include the
compensation (salaries, bonuses, and
other consideration for services, but
not including directors’ fees) of officers, executives, and other employees
of the utility properly chargeable to
utility operations and not chargeable
directly to a particular operating function.
B. This account may be subdivided in
accordance with a classification appropriate to the departmental or other
functional organization of the utility.
921 Office supplies and expenses.
A. This account shall include office
supplies and expenses incurred in connection with the general administration of the utility’s operations which
are assignable to specific administrative or general departments and are
not specifically provided for in other
accounts. This includes the expenses of
the various administrative and general
departments, the salaries and wages of
which are includible in account 920.
B. This account may be subdivided in
accordance with a classification appropriate to the departmental or other
functional organization of the utility.
NOTE: Office expenses which are clearly applicable to any group of operating expenses
other than the administrative and general
group shall be included in the appropriate
account in such group. Further, general expenses which apply to the utility as a whole
rather than to a particular administrative
function shall be included in account 930.2,
Miscellaneous General Expenses.
ITEMS
1. Automobile service, including charges
through clearing account.
2. Bank messenger and service charges.

ITEMS
Labor:

781

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00791

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

3. Books, periodicals, bulletins and subscriptions to newspapers, newsletters, tax
services, etc.
4. Building service expenses for customer
accounts, sales, and administrative and general purposes.
5. Communication service expenses.
6. Cost of individual items of office equipment used by general departments which are
of small value or short life.
7. Membership fees and dues in trade, technical, and professional associations paid by a
utility for employees. (Company memberships are includible in account 930.2.)
8. Office supplies and expenses.
9. Payment of court costs, witness fees, and
other expenses of legal department.
10. Postage, printing and stationery.
11. Meals, traveling and incidental expenses.

922

Administrative
ferred—Credit.

expenses

trans-

This account shall be credited with
administrative expenses recorded in accounts 920 and 921 which are transferred to construction costs or to nonutility accounts. (See gas plant instruction 4.)
923 Outside services employed.
A. This account shall include the fees
and expenses of professional consultants and others for general services
which are not applicable to a particular operating function or to other
accounts. It shall include also the pay
and expenses of persons engaged for a
special or temporary administrative or
general purpose in circumstances
where the person so engaged is not considered as an employee of the utility.
B. This account shall be so maintained as to permit ready summarization according to the nature of service and the person furnishing the same.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1. Fees, pay and expenses of accountants
and auditors, actuaries, appraisers, attorneys, engineering consultants, management
consultants, negotiators, public relations
counsel, tax consultants, etc.
2. Supervision fees and expenses paid under
contracts for general management services.
NOTE: Do not include inspection and brokerage fees and commissions chargeable to
other accounts or fees and expenses in connection with security issues which are includible in the expenses of issuing securities.

924 Property insurance.
A. This account shall include the
cost of insurance or reserve accruals to
protect the utility against losses and
damages to owned or leased property
used in its utility operations. It shall
include also the cost of labor and related supplies and expenses incurred in
property insurance activities.
B. Recoveries from insurance companies or others for property damages
shall be credited to the account
charged with the cost of the damage. If
the damaged property has been retired,
the credit shall be to the appropriate
account for accumulated provision for
depreciation.
C. Records shall be kept so as to
show the amount of coverage for each
class of insurance carried, the property
covered, and the applicable premiums.
Any dividends distributed by mutual
insurance companies shall be credited
to the accounts to which the insurance
premiums were charged.
ITEMS
1. Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and similar insurance.
2. Amounts credited to account 228.1, Accumulated Provision for Property Insurance;
for similar protection.
3. Special costs incurred in procuring insurance.
4. Insurance inspection service.
5. Insurance counsel, brokerage fees, and
expenses.
NOTE A: The cost of insurance or reserve
accruals capitalized shall be charged to construction either directly or by transfer to
construction work orders from this account.
NOTE B: The cost of insurance or reserve
accruals for the following classes of property
shall be charged as indicated.
(1) Materials and supplies and stores equipment, to account 163, Stores Expense Undistributed or appropriate materials account.
(2) Transportation and other general equipment to appropriate clearing accounts that
may be maintained.
(3) Gas plant leased to others, to account
413, Expenses of Gas Plant Leased to Others.
(4) Nonutility property, to the appropriate
nonutility income account.
(5) Merchandise and jobbing property, to
account 416, Costs and Expenses of Merchandising, Jobbing and Contract Work.
NOTE C: The cost of labor and related supplies and expenses of administrative and general employees, who are only incidentally

782

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00792

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
engaged in property insurance work, may be
included in accounts 920 and 921, as appropriate.

925 Injuries and damages.
A. This account shall include the
cost of insurance or reserve accruals to
protect the utility against injuries and
damages claims of employees or others,
losses of such character not covered by
insurance, and expenses incurred in
settlement of injuries and damages
claims. It shall also include the cost of
labor and related supplies and expenses
incurred in injuries and damages activities.
B. Reimbursements from insurance
companies or others for expenses
charged hereto on account of injuries
and damages and insurance dividends
or refunds shall be credited to this account.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

1. Premiums payable to insurance companies for protection against claims from injuries and damages by employees or others,
such as public liability, property damages,
casualty, employee liability, etc., and
amounts credited to account 228.2, Accumulated Provision for Injuries and Damages; for
similar protection.
2. Losses not covered by insurance or reserve accruals on account of injuries or
deaths to employees or others and damages
to the property of others.
3. Fees and expenses of claim investigators.
4. Payment of awards to claimants for
court costs and attorneys’ services.
5. Medical and hospital service and expenses for employees as the result of occupational injuries, or resulting from claims of
others.
6. Compensation payments under workmen’s compensation laws.
7. Compensation paid while incapacitated
as the result of occupational injuries. (See
Note A.)
8. Cost of safety, accident prevention and
similar educational activities.
NOTE A: Payments to or in behalf of employees for accident or death benefits, hospital expenses, medical supplies or for salaries while incapacitated for service or on
leave of absence beyond periods normally allowed, when not the result of occupational
injuries, shall be charged to account 926, Employee Pensions and Benefits. (See also Note
B of account 926.)
NOTE B: The cost of injuries and damages
or reserve accruals capitalized shall be
charged to construction directly or by transfer to construction work orders from this account.

Pt. 201
NOTE C: Exclude herefrom the time and expenses of employees (except those engaged in
injuries and damages activities) spent in attendance at safety and accident prevention
educational meetings, if occurring during
the regular work period.
NOTE D: The cost of labor and related supplies and expenses of administrative and general employees, who are only incidentally
engaged in injuries and damages activities,
may be included in accounts 920 and 921, as
appropriate.

926 Employee pensions and benefits.
A. This account shall include pensions paid to or on behalf of retired employees, or accruals to provide for pensions, or payments for the purchase of
annuities for this purpose, when the
utility has definitely, by contract,
committed itself to a pension plan
under which the pension funds are irrevocably devoted to pension purposes,
and payments for employee accident,
sickness, hospital, and death benefits,
or insurance therefor. Include, also, expenses incurred in medical, educational
or recreational activities for the benefit of employees, and administrative
expenses in connection with employee
pensions and benefits.
B. The utility shall maintain a complete record of accruals or payments
for pensions and be prepared to furnish
full information to the Commission of
the plan under which it has created or
proposes to create a pension fund and a
copy of the declaration of trust or resolution under which the pension plan is
established.
C. There shall be credited to this account the portion of pensions and benefits expenses which is applicable to
nonutility operations or which is
charged to construction unless such
amounts are distributed directly to the
accounts involved and are not included
herein in the first instance.
D. Records in support of this account
shall be so kept that the total pensions
expense, the total benefits expense, the
administrative expenses included herein, and the amounts of pensions and
benefits expenses transferred to construction or other accounts will be
readily available.
ITEMS
1. Payment of pensions under a nonaccrual
or nonfunded basis.

783

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00793

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 201

18 CFR Ch. I (4–1–16 Edition)

2. Accruals for or payments to pension
funds or to insurance companies for pension
purposes.
3. Group and life insurance premiums
(credit dividends received).
4. Payments for medical and hospital services and expenses of employees when not the
result of occupational injuries.
5. Payments for accident, sickness, hospital, and death benefits or insurance.
6. Payments to employees incapacitated
for service or on leave of absence beyond periods normally allowed, when not the result
of occupational injuries, or in excess of statutory awards.
7. Expenses in connection with educational
and recreational activities for the benefit of
employees.
NOTE A: The cost of labor and related supplies and expenses of administrative and general employees who are only incidentally engaged in employee pension and benefit activities, may be included in accounts 920 and
921, as appropriate.
NOTE B: Salaries paid to employees during
periods of nonoccupational sickness may be
charged to the appropriate labor account
rather than to employee benefits.

927 Franchise requirements.

lpowell on DSK54DXVN1OFR with $$_JOB

A. This account shall include payments to municipal or other governmental authorities, and the cost of materials, supplies and services furnished
such authorities without reimbursement in compliance with franchise, ordinance, or similar requirements; provided, however, that the utility may
charge to this account at regular tariff
rates, instead of cost, utility service
furnished without charge under provisions of franchises.
B. When no direct outlay is involved,
concurrent credit for such charges
shall be made to account 929, Duplicate
Charges—Cr.
C. The account shall be maintained
so as to readily reflect the amounts of
cash outlays, utility service supplied
without charge, and other items furnished without charge.
NOTE A: Franchise taxes shall not be
charged to this account but to account 408.1,
Taxes Other Than Income Taxes, Utility Operating Income.
NOTE B: Any amount paid as initial consideration for a franchise running for more than
one year shall be charged to account 302,
Franchises and Consents.

928 Regulatory commission expenses.
A. This account shall include all expenses (except pay of regular employees only incidentally engaged in such
work) properly includible in utility operating expenses, incurred by the utility in connection with formal cases before regulatory commissions, or other
regulatory bodies, or cases in which
such a body is a party, including payments made to a regulatory commission for fees assessed against the utility for pay and expenses of such commission, its officers, agents, and employees.
B. Amounts of regulatory commission expenses which by approval or direction of the Commission are to be
spread over future periods shall be
charged to account 186, Miscellaneous
Deferred Debits, and amortized by
charges to this account.
C. The utility shall be prepared to
show the cost of each formal case.
ITEMS
1. Salaries, fees, retainers, and expenses of
counsel, solicitors, attorneys, accountants,
engineers, clerks, attendants, witnesses, and
others engaged in the prosecution of, or defense against petitions or complaints presented to regulatory bodies, or in the valuation of property owned or used by the utility in connection with such cases.
2. Office supplies and expenses, payments
to public service or other regulatory commissions, stationery and printing, traveling
expenses, and other expenses incurred directly in connection with formal cases before
regulatory commissions.
3. All application fees except those involving construction certificate applications
which have been approved. (See Gas Plant
Instruction 16.)
NOTE A: Exclude from this account and include in other appropriate operating expense
accounts, expenses incurred in the improvement of service, additional inspection, or
rendering reports, which are made necessary
by the rules and regulations, or orders, of
regulatory bodies.
NOTE B: Do not include in this account
amounts includible in account 302, Franchises
and
Consents,
account
181,
Unamortized Debt Expense, or account 214,
Capital Stock Expense.

929 Duplicate charges—Credit.
This account shall include concurrent credits for charges which may be
made to operating expenses or to other
accounts for the use of utility service

784

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00794

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Federal Energy Regulatory Commission
from its own supply. Include, also, offsetting credits for any other charges
made to operating expenses for which
there is no direct money outlay.
930.1 General advertising expenses.
This account shall include the cost of
labor, materials used, and expenses incurred in advertising and related activities, the cost of which by their content and purpose are not provided for
elsewhere.
ITEMS

lpowell on DSK54DXVN1OFR with $$_JOB

Labor:
1. Supervision.
2. Preparing advertising material for newspapers, periodicals, billboards, etc., and preparing or conducting motion pictures, radio
and television programs.
3. Preparing booklets, bulletins, etc., used
in direct mail advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating and employing advertising
agencies, selecting media and conducting negotiations in connection with the placement
and subject matter of advertising.
Materials and expenses:
7. Advertising in newspapers, periodicals,
billboards, radio, etc.
8. Advertising matter such as posters, bulletins, booklets and related items.
9. Fees and expenses of advertising agencies and commercial artists.
10. Postage and direct mail advertising.
11. Printing of booklets, dodgers, bulletins,
etc.
12. Supplies and expenses in preparing advertising materials.
13. Office supplies and expenses.
NOTE A: Properly includible in this account is the cost of advertising activities on
a local or national basis of a goodwill or institutional nature, which is primarily designed to improve the image of the utility or
the industry, including advertisements
which inform the public concerning matters
affecting the company’s operations, such as,
the cost of providing service, the company’s
efforts to improve the quality of service, the
company’s efforts to improve and protect the
environment, etc. Entries relating to advertising included in this account shall contain
or refer to supporting documents which identify the specific advertising message. If references are used, copies of the advertising
message shall be readily available.
NOTE B: Exclude from this account and include in account 426.4. Expenditures for Certain Civic, Political and Related Activities,
expenses for advertising activities, which are
designed to solicit public support or the sup-

Pt. 201
port of public officials in matters of a political nature.

930.2 Miscellaneous general expenses.
This account shall include the cost of labor
and expenses incurred in connection with the
general management of the utility not provided for elsewhere.
ITEMS
Labor:
1. Miscellaneous labor not elsewhere provided for:
Expenses:
2. Industry Association dues for company
memberships.
3. Contributions for conventions and meetings of the industry.
4. Research, development, and demonstration expenses not charged to other operation
and maintenance expense accounts on a
functional basis.
5. Communication service not chargeable
to other accounts.
6. Trustee, registrar, and transfer agent
fees and expenses.
7. Stockholders meeting expenses.
8. Dividend and other financial notices.
9. Printing and mailing dividend checks.
10. Directors’ fees and expenses.
11. Publishing and distributing annual reports to stockholders.
12. Public notices of financial, operating,
and other data required by regulatory statutes, not including, however, notices required in connection with security issues or
acquisitions of property.

931 Rents.
This account shall include rents
properly includible in utility operating
expenses for the property of others
used, occupied, or operated in connection with the customer accounts, customer service and informational, sales,
and general and administrative functions of the utility. (See operating expense instruction 3.)
932 Maintenance of general plant.
A. This account shall include the
cost assignable to customer accounts,
sales and administrative and general
functions of labor, materials used and
expenses incurred in the maintenance
of property, the book cost of which is
includible in account 390, Structures
and Improvements, account 391, Office
Furniture and Equipment, account 397,
Communication Equipment, and account 398, Miscellaneous Equipment.
(See operating expense instruction 2.)

785

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00795

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31

Pt. 204

18 CFR Ch. I (4–1–16 Edition)

B. Maintenance expenses on office
furniture and equipment used elsewhere than in general, commercial and
sales offices shall be charged to the following accounts:
Manufactured Gas Production, accounts 708,
742
Natural Gas Production and Gathering, account 769
Natural Gas Production
Extraction, account 791
Underground Storage, account 837
Local Storage, account 846.2
Transmission Expenses, account 867
Distribution Expenses, account 894
Merchandising and Jobbing, account 416
Garage, Shops, etc.—appropriate clearing account, if used.
NOTE: Maintenance of plant included in
other general plant equipment accounts
shall be included herein unless charged to
clearing accounts or to a particular functional maintenance expense indicated by the
use of the equipment.

PART 204—RESERVED [NOTE]
NOTE: For the Uniform System of Accounts
for Natural Gas Companies subject to the
Natural Gas Act, see part 201 of this subchapter. (Order 390, 49 FR 32526, Aug. 14, 1984;
50 FR 5745, Feb. 12, 1985)

PART
225—PRESERVATION
OF
RECORDS OF NATURAL GAS
COMPANIES
Sec.
225.1 Promulgation.
225.2 General instructions.
225.3 Schedule of records and periods of retention.
AUTHORITY: 15 U.S.C. 717–717w, 3301–3432; 16
U.S.C. 792–828c; 42 U.S.C. 7101–7352; E.O. 12009,
3 CFR 1978 Comp. p. 142.

§ 225.1 Promulgation.
This part is prescribed and promulgated as the regulations governing the
preservation of records by natural gas
companies subject to the jurisdiction
of the Commission, to the extent and
in the manner set forth therein.

lpowell on DSK54DXVN1OFR with $$_JOB

[Order 617, 65 FR 48160, Aug. 7, 2000]

§ 225.2 General instructions.
(a) Scope of this part. (1) The regulations in this part must apply to all
books of account and other records prepared by or on behalf of the natural gas

company. See item 40 of the schedule
for those records that come into possession of the natural gas company in
connection with the acquisition of
property, such as purchases, consolidation, merger, etc.
(2) The regulations in this part
should not be construed as excusing
compliance with other lawful requirements of any other governmental body,
Federal or State, prescribing other
record keeping requirements, or for
preservation of records for periods
longer than those prescribed in this
part.
(3) To the extent that any Commission regulations may provide for a different retention period, the records
should be retained for the longer of the
retention periods.
(4) Records other than those listed in
the schedule may be destroyed at the
option of the natural gas company:
Provided, however, That records which
are used in lieu of those listed shall be
preserved for the periods prescribed for
the records used for substantially similar purposes. And, provided further,
That retention of records pertaining to
added services, functions, plant, etc.,
the establishment of which cannot be
presently foreseen, shall conform to
the principles embodied herein.
(5) Notwithstanding the provisions of
the Records Retention Schedule, the
Commission may, upon the request of
the company, authorize a shorter period of retention for any record listed
therein upon a showing by the company that preservation of such record
for a longer period is not necessary or
appropriate in the public interest or for
the protection of investors or consumers.
(b) Designation of supervisory official.
Each natural gas company subject to
the regulations in this part shall designate one or more persons with official responsibility to supervise the natural gas company’s program for preservation and the authorized destruction
of its records.
(c) Protection and storage of records.
The natural gas company shall provide
reasonable protection for records subject to the regulations in this part
from damage by fires, floods, and other
hazards and, in the selection of storage

786

VerDate Sep<11>2014

10:28 May 13, 2016

Jkt 238061

PO 00000

Frm 00796

Fmt 8010

Sfmt 8010

Q:\18\18V1.TXT

31