N.Y. Comp. Codes R. & Regs. tit. 16 § 467.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 467.5 - Operating rents

(a) Rent expense accounts are provided under each functional group of expense accounts. These accounts shall be charged with all rents paid for property used in steam operations. If the rents cover property used for more than one function, such as production and distribution, the rents shall be apportioned to the appropriate rent expense accounts on an actual, or, if necessary, an estimated basis.

(b) Rents paid for property devoted to operations for which clearing accounts are used shall be charged to the appropriate clearing accounts.

(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) Taxes paid by the lessee upon leased property shall be charged to the appropriate rent expense or clearing account.

(e) When the lessee is responsible for the replacement of steam plant leased from others, the cost of replacements shall be charged to the appropriate rent expense or clearing account, unless a reserve therefor has been provided, in which event the charge shall be to the reserve. (See steam plant instruction § 463.6.)

(f) When a portion of property or equipment rented from others for use in connection with steam operations is subleased, the revenue derived from such subleasing shall be credited to account 610, Rent from Steam Property; 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.

(g) If leased property is used by more than one department, the rental on such property shall be apportioned to the appropriate rent or clearing accounts of the various departments of the utility.

(h) Property operated jointly by the utility and another or others under a definite arrangement whereby the actual costs are shared between or among the parties shall be considered for the purpose of this system of accounts as a joint facility, and the accounting in connection therewith shall be handled as provided in operation and maintenance instruction section 467.6, following.

(i) Rents payable to customers for use of their steam equipment shall be charged to a separate subdivision of account 710, Rents. (See note to account 710.)

N.Y. Comp. Codes R. & Regs. Tit. 16 § 467.5