N.Y. Comp. Codes R. & Regs. tit. 16 § 463.2

Current through Register Vol. 46, No. 36, September 4, 2024

Section 463.2 - Steam plant to be recorded at original cost

(a) All amounts included in subaccounts of accounts 101 to 104 for steam plant (except as otherwise provided in account 302, Franchises and Consents) shall be the original cost (see § 460.1[a][27] ) of such steam plant.

(b) When the term cost is used in the detailed steam plant accounts, it shall mean the original cost unless otherwise specified and shall include not only the materials, supplies, labor, services and other items consumed or employed in the construction and installation of steam plant, but also the cost of preliminary studies, plans, surveys, engineering, supervision, and general expenses, which contribute directly and immediately to steam plant without duplication of such costs.

(c) When the consideration given for property is other than cash, the value of such consideration shall be determined on a cash basis. 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.

(d) When property is purchased under a plan involving deferred payments, no charge shall be made to the steam plant accounts for interest, insurance, or other expenditures occasioned solely by such form of payment.

(e) Steam plant contributed to the utility or constructed by it from contributions to it of cash or its equivalent shall be charged to the steam plant accounts at cost (see § 460.1, subd. [a][13]) to the utility (i.e., original cost less the portion thereof contributed by or on behalf of customers). Records shall be kept so that the utility can readily furnish information as to the source, purpose, and amount of each contribution, the property to which each contribution relates, and the conditions, if any, upon which each contribution was made.

Note A:Amounts received for construction which are ultimately to be refunded, wholly or in part, shall be credited to account 241, Customers' Advances for Construction. When the amount to be refunded has been finally determined, the balance, if any, remaining in account 241 shall be debited thereto and credited to the steam plant accounts to which the cost of the property was charged.

Note B:Amounts in account 265, Contributions in Aid of Construction, as of the effective date of this amendment, which are applicable to and can be identified with property in service or held for future use, shall be transferred to the accounts in which the cost of such property is carried. The balance, if any, remaining in account 265, Contributions in Aid of Construction, shall be transferred to account 250, Reserve for Depreciation of Steam Plant (or account 253.1, Reserve for Depreciation and Amortization of Other Utility Plant, or 253.2, Reserve for Depreciation and Amortization of Common Utility Plant, if appropriate), unless the commission approves or directs other disposition.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 463.2