Section 51.02 - Summary of Modifications to the FERC System220 CMR 51.02 summarizes the major modifications to the FERC system. This summary is intended to present a general overview of the changes to the FERC system; it is not intended to be a comprehensive presentation of all the changes. The actual textual changes are presented in 220 CMR 51.03. In the event there is a conflict between 220 CMR 51.02 and 51.03, 51.03 shall prevail.
(1)Changes to the Definition Section(a) The word "Commission" shall mean the Department of Public Utilities except in specific instances (which are cited in 220 CMR 51.03) where FERC is the appropriate agency.(b) All references to the stated value of no par stocks are deleted since companies subject to M.G.L. c. 164, § 6, cannot issue no par stocks.(2)Changes to the General Instruction Section.(a) The FERC classification of electric utilities shall not apply to utilities within the Department's jurisdiction. The Massachusetts system requires all Massachusetts electric utilities, with the exception of municipal lighting plants, to adopt this system of accounts.(b) The following instruction relating to the combined gas and electric utilities has been added: Combined gas and electric utilities will maintain their books for electric utility reporting purposes in accordance with this system. Gas operations will continue to utilize the existing system applicable to gas utilities.
(3)Changes to the Electric Plant Instructions Section. (a) The FERC methodology for determining the allowance for funds used during construction shall not apply to utilities within the Department's jurisdiction unless the Department issues a separate order specifying the adoption of this method.(b) The method for recording gains or losses on the disposition of utility property has been changed. The methodology is as follows: 1. If the property disposed of has ever been included in the company's Electric Plant in Service or Construction Work in Progress accounts, the difference between the amounts received from the disposition of the utility property and the agent's commissions, other costs incident to the disposition of the property and the book cost of the property shall be included in either Account 411.6, Gains from Disposition of Utility Plant, or 411.7, Losses from Disposition of Utility Plant.2. If the property disposed of has never been included in the company's Electric Plant in Service or Construction Work in Progress accounts, the difference between the amounts received from the disposition of utility property and the agent's commissions, other costs incident to the disposition of property and the book cost of the property shall be included in either Account 421.1, Gain on Disposition of Property, or 421.2, Loss on Disposition of Property. The wording of the accounts affected by this modification has been changed to correspond with the above methodology. The specific textual changes are presented in 220 CMR 51.03.
(c) Electric Plant Acquisition Adjustment accounts may not be used without prior approval of the Department.(4)Changes to the Balance Sheet Accounts Section. Electric utilities must have Department approval before establishing Operating Reserve accounts.(5)Changes to the Operating Revenue Accounts Section. The Department will permit the continued use of Account 449, Miscellaneous Electric Sales, an account which does not exist in the FERC system