CROSS REFERENCE Uniform system of accounts prescribed for Class A and Class B public utilities and licensees: See Part 101. GENERAL PROVISIONS Section 102.01-1 Application of uniform system of accounts to State and municipal licensees. (a) The definitions, instructions, and accounts contained in the foregoing main body of this system of accounts, as modified and supplemented by this part, shall apply to municipal licensees, to the extent applicable to operations of the electric department of the municipality, with the same force and effect as in the case of other licensees and public utilities subject to the jurisdiction of the Commission. (b) The word "municipality", as defined in the definitions, shall, for the purpose of this part, and when used hereinafter, be deemed to include States. (c) Whenever the term "electric department" is used in this part, it shall be understood to mean the electric department of a municipality, or such department of a municipality as is responsible for the construction or operation of the electric works and it shall also mean the electric works themselves and their operations. In case the business of a licensee technically defined as a "municipality" (see Definition 22, § 101.02-22) is wholly and exclusively devoted to owning and operating an electric plant, then "electric department" and "municipality" will be synonymous terms. (d) Separate accounts and accounting records shall be maintained for the electric department as though it were a separate corporation or concern unless the electric department be synonymous with municipality. (See (c).) (e) In order that the books of the electric department may show accurately the results of operations, the electric department shall credit the appropriate accounts with the cost of property, services, materials, supplies, use of space or equipment, etc., furnished to the municipality or any other department thereof. (f) Similarly, the accounts for electric operations shall include the cost of all items applicable thereto, including expenses of the electric department paid by the municipality, and services, materials, supplies, water supply, use of space or equipment, etc., furnished by the municipality or any other department thereof to the electric department. (g) The offsetting debits or credits for the transactions covered in paragraphs (e) and (f), to the extent that cash outlays or current settlements are not involved, shall be to Account 272, Constructive Surplus or Deficit. (h) These provisions are intended to make possible an accurate determination of the results of operations of the electric department by including in the operating accounts all applicable items, whether or not they represent actual payments. Thus, if an office of an electric department is located in a general municipal building and if no rent is paid to the municipality for such space, the appropriate account for Page 203 such rent shall be debited with an equitable amount and the offsetting credit shall be to Account 272, Constructive Surplus or Deficit. (i) For convenience, all of the balance sheet, surplus, and clearing accounts prescribed for municipal licensees are listed hereinafter, but the texts are given for only those accounts which are in addition to those prescribed for other licensees and public utilities and for those accounts which are modified. (j) Where fund accounting is required, fund accounts may be kept, provided, however, that the keeping of such fund accounts shall not relieve municipal licensees of the obligation to keep accounts and records as prescribed herein.* [Appen. I, effective Jan. 1, 1937, p. 146] *§§ 102.01-1 to 102.901, inclusive, issued under the authority contained in secs. 3 (13), 4 (b), 301 (a), 304 (a), 309, 49 Stat. 839, 854, 855, 858; 16 U.S.C., Sup., 796 (13), 797 (b), 825 (a), 825c (a), 825h. 250. Reserve for Depreciation of Electric Plant. 251. Reserve for Amortization of Limited-Term Electric Investments. 254. Reserve for Uncollectible Accounts. 255. Insurance Reserve. 256. Injuries and Damages Reserve. 257. Employees' Provident Reserve. 258. Other Reserves. CONTRIBUTIONS IN AID OF CONSTRUCTION 265. Contributions in Aid of Construction. 271. Earned Surplus. SURPLUS 272. Constructive Surplus or Deficit. SUPPLEMENTAL BALANCE SHEET ACCOUNTS 102.111 Advances to municipality. This account shall include the amount of loans and advances made by the electric department to the municipality or its other departments, when such loans or advances are subject to repayment but not subject to current settlement.*t NOTE: Charges to the municipality or its other departments which are subject to current settlement shall not be included in this account but in Account 126, Receivables from Municipality. †In 88 102.111 to 102.411, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Appendix I of Uniform system of accounts prescribed for public utilities and licensees, Federal Power Commission, effective Jan. 1, 1937, pp. 149-151. Cross references to accounts are made by citing the account number, e. g., Account 126, instead of the corresponding section number (§ 101.126). *For statutory citation, see note to § 102.01-1. Page 205 102.126 Receivables from municipality. This account shall include all charges by the electric department against the municipality or its other departments which are subject to current settlement.*t NOTE: When the combined balances of this account and Account 223, Payables to Municipality, result in a credit balance, such balance shall be reported, in stating the balance sheet, under the latter account. 102.200 Investment of municipality. (a) This account shall include the investment of the municipality in its electric department, when such investments are not subject to cash settlement on demand or at a fixed future time. Include herein the cost of debt-free electric plant constructed or acquired by the municipality and made available for use of the electric department, cash transferred to the electric department for working capital, and other expenditures of an invest ment nature. (b) There shall be charged to this account all amounts paid by the electric department in liquidation of the investment of the municipality.*+ NOTE A: Do not include in this account any amount representing advances subject to repayment or amounts subject to current settlement. (See Account 212, Advances from Municipality, and Account 223, Payables to Municipality.) NOTE B: Amounts authorized to be paid to municipalities representing interest upon the municipality's investment in the electric department, shall be charged to Account 535, Other Interest Charges; amounts paid as taxes or tax equivalents shall be charged to Account 507, Taxes. 102.210 Bonds-electric. (a) There shall be included in this account the face value of actually outstanding bonds, maturing more than one year from date of issue, which are primarily the obligation of the electric department or which are payable solely out of the funds or earnings of the electric department, and not matured at the date of the balance sheet, including bonds issued by others which have been assumed by, and are payable solely out of the funds or earnings of, the electric department. (b) The obligations included herein shall be so recorded as to show the amount of each issue and each class of bonds.*t NOTE A: Bonds issued or assumed for purposes of the electric department as to which no separate legal obligation to pay is imposed on the electric department, shall not be included in this account but in Account 211, Bonds▬▬ Municipality. NOTE B: Bonds matured at the date of the balance sheet shall be excluded herefrom and included in Account 225, Matured Long-Term Debt. NOTE C: In cases where the electric department and the municipality, as defined herein, are one and the same, all bonds issued or assumed for its purposes shall be included herein. NOTE D: Securities of the electric department maturing one year or less from date of issue shall be included in Account 220, Notes Payable, except that where an issue of securities maturing serially over a period of more than one year contains short-term obligations, such obligations shall be included in this account. NOTE E: For instructions relative to accounting for discount, expense, and premium on long-term debt includible in this account, see Balance sheet instruction 6 (§ 101.1-6). 102.211 Bonds-municipality. (a) There shall be included in this account the face value of actually outstanding bonds, maturing more than one year from date of issue, issued by the municipality for purposes of the electric department, which are primarily legal obli Page 206 *For statutory citation, see note to § 102.01-1. gations of the municipality and not of the electric department, even though an implied obligation to pay is imposed on the electric department, and, in fact, payments thereon may be made by, or out of funds of, such electric department. (b) The obligations included herein shall be so recorded as to show the amount of each issue and each class of bonds.** NOTE A: Bonds issued or assumed by the municipality for purposes of the electric department but which by their express terms are payable solely out of funds or earnings of the electric department, shall not be included in this account but in Account 210, Bonds-Electric. NOTE B: Bonds matured at the date of the balance sheet shall be excluded herefrom and included in Account 225, Matured Long-Term Debt. NOTE C: In cases where the municipality, as defined herein, and the electric department are one and the same, all bonds issued or assumed by the municipality shall be included in Account 210, Bonds-Electric. NOTE D: Securities of the municipality maturing one year or less from date of issue, the proceeds of which were used or are specifically set aside to be used for purposes of the electric department, shall be included in Account 212, Advances from Municipality, Account 220, Notes Payable, Account 223, Payables to Municipality, or Account 200, Investment of Municipality, as appropriate, except that where an issue of securities of the municipality maturing serially over a period of more than one year contains short-term obligations, such obligations shall be included in this account. NOTE E: For instructions relative to accounting for discount, expense, and premium on long-term debt includible in this account, see Balance sheet instruction 6 (§ 101.1-6). 102.212 Advances from municipality. This account shall include the amount of loans and advances made by the municipality or its other departments to the electric department when such loans and advances are subject to repayment but not subject to current settlement.** NOTE: Charges to the electric department by the municipality or its other departments which are subject to current settlement shall not be included in this account but in Account 223, Payables to Municipality. 102.223 Payables to municipality. This account shall include amounts payable to the municipality which are subject to current settlement; also amounts authorized to be paid within one year from the date of the balance sheet as repayment of advances from, or investment of, the municipality, concurrent charges being made to Account 212, Advances from Municipality, or Account 200, Investment of Municipality, as appropriate.** NOTE: When the combined balances of this account and Account 126, Receivables from Municipality, result in a debit balance, such balance shall be reported, in stating the balance sheet, under the latter account. 102.271 Earned surplus. This account shall include the balance, either debit or credit, of unappropriated surplus of the electric department arising from earnings. It shall not include amounts properly includible in Account 272, Constructive Surplus or Deficit.** 102.272 Constructive surplus or deficit. There shall be credited to this account amounts representing services, supplies, etc., furnished the electric department by the municipality or its other departments without charge, or the amount of the reduction if furnished at a reduced charge. There shall be charged to this account *For statutory citation, see note to § 102.01-1. Page 207 |