N.Y. Comp. Codes R. & Regs. tit. 16 § 182.8

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

Section 182.8 - Expenditures on property leased for use in electric operations

(a) The cost of additions and betterments, excluding replacements by lessee of units of property installed by lessor, to property leased from others shall be charged to separate subdivisions of the electric plant accounts appropriate for the class of property leased. Depreciation thereon shall be computed on a basis consistent with the duration of the lease.

(b) The cost of initial repairs and rearrangements to adapt the property for use in electric operations shall be charged to a subdivision of account 1132, Pre-payments, and amortized over the life of the lease through credits to that account with concurrent debits to the rent account appropriate for the class of property involved.

(c) If, in the case of leased property replacements of units of property installed by the lessor become necessary, the utility shall make application to the commission for instructions regarding the accounting procedure to be followed and shall submit full particulars of the nature and extent of the replacements.

(d) When expenditures on property leased from others for use in electric operations are relatively minor, or the period of the lease less than one year, the cost shall be charged to the account appropriate for the cost of repairs of such plant.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 182.8