Compilation of Rules and Regulations of the State of Georgia
Department 515 - RULES OF GEORGIA PUBLIC SERVICE COMMISSION
Chapter 515-3 - GENERAL RULES
Subject 515-3-1 - GENERAL RULES
Rule 515-3-1-.10 - Accounting Requirements

Universal Citation: GA Rules and Regs r 515-3-1-.10

Current through Rules and Regulations filed through September 23, 2024

The books and records of each utility company shall be maintained in conformity with a Uniform System of Accounts prescribed by the Georgia Public Service Commission as follows:

(1) Each electric and gas utility company shall adopt the system of accounts devised by the Federal Energy Regulatory Commission for Class "A" and "B" or Class "C" and "D" companies, as appropriate.

(2) Uniform System of accounts.

(a) Each telephone and telegraph company shall adopt the revised system of account devised by the Federal Communications Commission for Class "A" and "B" companies, as appropriate, except as follows:
1. Depreciation. To the extent that the Uniform System of Accounts for Class "A" and "B" Telephone Companies of the Federal Communications Commission (47 CFR 32.2000(g)), adopted above may require that depreciation rates be based on estimated service lives developed by individual company histories and experience, the same are hereby superseded. The prescribed rates are as follows:
(i) Composite rate. Unless otherwise provided by the Commission, either through prior approval in individual cases or upon prescription by the Commission, depreciation rates for all classes of depreciable telephone plant shall be fixed at an overall composite rate not to exceed eight (8%) percent, effective January 1, 1995;

(ii) Individual Account Rate Limits. Subject to the composite rate just stated, the following maximum depreciation rates shall apply to the various classes of plant accounts as stated:

ACCOUNT

DEPRECIATION RATE (%)

Motor Vehicles

Cars

20.0

Light Trucks

20.0

Heavy Trucks

Garage Work Equipment

11.0

Other Work Equipment

11.0

Buildings

4.5

Furniture

10.0

Office Equipment

12.5

Office Equipment - Communications

12.5

Computer Equipment

18.0

Computer Equipment - PC

20.0

Central Office Equipment - Analog

17.0

Central Office Equipment - Digital

9.0

Central Office Equipment - Electromechanical

20.0

Operator Systems

8.0

Radio Systems - Analog

10.0

Radio Systems - Digital

8.0

Circuit - Analog

14.0

Circuit - Digital

14.0

Public Telephone Equipment

12.5

Other Terminal Equipment

12.5

Pole Line

15.0

Aerial Cable - Metallic

16.0

Aerial Cable - Fiber

14.0

Underground Cable - Metallic

4.5

Underground Cable - Fiber

3.5

Buried Cable - Metallic

9.0

Buried Cable - Fiber

5.2

Submarine Cable

10.0

Intrabuilding Cable

6.0

Aerial Wire

20.0

Conduit Systems

2.5

(iii) Company Specific Treatment. Other overall composite or specific account depreciation rates, or extraordinary retirements, may be authorized by the Commission for ratemaking purposes on an individual company basis where adequate evidence presented in a ratemaking proceeding justifies such treatment. Notwithstanding any other provision of this rule the Commission reserves the right, at its discretion, to require companies to present depreciation studies in ratemaking proceedings and to determine, based on the evidence in that proceeding the depreciation rate to be used for ratemaking purposes. Telephone companies may select the application of remaining life depreciation rate calculations for conducting such studies or any other approved methodology;

(iv) Composite Rate Modifications. The burden of proof for just and reasonable depreciation rates shall be upon the Company as provided in O.C.G.A. Section 46-2-25 and the Commission reserves the right to review and revise the composite rate of depreciation prescribed in paragraph (i)(I) hereof from time to time, based upon investigations and evidence presented in individual cases or in connection with depreciation studies on similar classes of plant performed by any telephone company;

(v) Savings Clause. Nothing herein shall be construed as abrogating or otherwise repealing any higher depreciation rate heretofore authorized by the Commission;

(vi) The provisions of this rule shall not apply to any telephone utility participating in the three-way process under the Communications Act of 1934, as amended, or any telephone utility serving over 100,000 access lines.

2. Extraordinary Retirements. Telephone Companies shall also be permitted to book extraordinary retirements without prior Commission approval due to obsolescence, technological change, abandonment or catastrophe, not to exceed in a single fiscal year one (1%) percent of telephone plant in service, less depreciation and not to exceed an amortization period of one year, such retirements to be in addition to the requested 8.0% overall composite rate; provided further, no more than a cumulative total of two (2%) percent of telephone plant in service, less depreciation, shall be extraordinary retired over a ten-year period without Commission approval. While this Rule is designed to relieve the administrative burden of the requirements of the Uniform System of Accounts for Class "A" and "B" telephone companies of the Federal Communications Commission (47 CFR 32.2000(g)(4)) adopted above for minor extraordinary retirements, the Company shall have the burden of proof as provided by O.C.G.A. Section 46-2-25 to show that these retirements were reasonable before recovery is allowed in rates.

(b) Each radio utility company shall adopt the system of accounts for radio common carriers 1976, devised by the National Association of Regulatory Utility Commissioners, as hereafter may be amended, except as revised by this Commission as follows:
1. Instruction I.D., page 5, shall read: Each RCC shall keep the primary accounts applicable to its operations. In addition, each RCC may keep any subaccount its management deems appropriate for better representing the RCC'S operations. Each RCC'S management shall be responsible for determining which primary and subaccounts are applicable to their company. On the other hand, each RCC shall be subject to periodic audits and reviews by this Commission's staff at which time this Commission shall exercise its authority to order affected RCC'S to install additional accounts the Commission deems needed to more adequately reflect the RCC'S operations.

2. Instruction I.E., page 5, shall be expanded to read: In this regard, all records required by these rules shall be preserved for the period of time specified in the current edition of the Federal Communications Commission's record retention schedule, FCC Rules and Regulations, Volume X, Part 42, unless otherwise specified by this Commission.

3. Instruction 5.C., last Sentence, page 9, shall read: The depreciation for each subaccount of 102 will be calculated by multiplying the beginning of the current month balance of each plant account 211 through 250 by the depreciation rate for that account. Such depreciation rates are to be approved in advance by this Commission.

4. Operating Tax Accounts 304 and 305: The titles to these accounts shall omit the word "Federal."

5. Operating Tax Account 306: The title of this account, both in the Index and the Text, shall read Investment Tax Credits-Net.

6. Operating Revenue Account 505 shall be expanded and subdivided as necessary to incorporate Dispatch Station Revenue.

7. Operating Expense Account 658, Vehicle Expense, paragraph B, shall read: In allocating vehicle expenses to plant accounts, credit this account and debit the affected plant accounts with the vehicle expenses charged to work orders. This Commission's preferred method by which vehicle expenses are to be allocated is to charge each work order on the basis of labor hours charged to that work order. Alternate allocation procedures that are of a rational and systematic manner may be installed at the option of the RCC'S management, and maintained as deemed appropriate by this Commission from its periodic audits and reviews of the radio utility's operations.

8. Clearing Accounts 804-817: This Commission prefers that all costs possible be charged direct to the ultimate accounts without processing through clearing accounts. On the other hand, this Commission shall permit radio utility management to use clearing accounts they deem necessary for more adequate recording of their radio utility operations.

(3) Each utility company shall adopt the following system to account for investment tax credits: For all investment tax credits used prior to the 1971 Federal Income Tax revision, the unamortized portion shall be shown on the balance sheet as unamortized investment tax credits and shall be amortized to the income statement, as other utility income, not less rapidly than ratably over the life of the property that gave rise to the investment tax credit. The rate making treatment for those investment tax credits shall be to deduct the unamortized portion from the rate base and add the annual amortization to income in determining the net operating income available for return on investment. The unamortized portion of all investment tax credits used subsequent to, or as a result of, the 1971 act shall be accounted for in a separate subaccount(s) from the above mentioned credits as will their annual amortizations. The rate making treatment to be accorded these investment tax credits will be to deduct the unamortized portion from the rate base unless the company has formerly notified the Internal Revenue Service, in writing, that it exercises the option provided by law to have the annual amortization added to the net operating income available for return and substantiates the election of said option by including a certified copy of said letter with its application. Account numbers pertinent to these transactions shall be in accordance with the Uniform System of Accounts prescribed in (a) and (b) above.

(4) Each utility company utilizing accelerated depreciation for income tax purposes under Sections 167 and 168 of the Internal Revenue Code of 1986 shall set up in the appropriate account, provided for in the Uniform System of Accounts prescribed in (a) or (b) above, as deferred income tax liability the difference between the company's actual tax liability computed using accelerated depreciation and the tax liability the company would have incurred had it taken the depreciation expense computed for book purposes on a straight line basis. These accumulated deferred income tax liabilities shall be deducted from the rate base for rate making purposes. The company shall charge this account for any future income tax expense which is greater than its tax expense would be if the book depreciation expense were used in computing its income tax liability rather than the depreciation expense actually shown on the income tax return and said amount shall not be included as an operating expense of the company in determining its revenue requirements in future rate proceedings.

(5) No utility shall require a cash deposit to establish or reestablish credit in an amount in excess of two-and-one-half twelfths of the estimated charge for the service for the ensuing twelve months; and, in the case of seasonal service, in an amount in excess of one-half of the estimated charge for the service for the season involved. Each electric and gas utility company shall account for any deposits collected from customers in the following manner: Each electric and gas utility shall pay interest on applicants' or customers' deposits for utility service held six months or longer at a simple rate of 7% per annum unless a different rate for such utility is set by the Commission. Upon receipt of a customer or applicant deposit, the utility shall furnish the customer/applicant a receipt showing the following information:

1. Name of customer/applicant;

2. Amount of deposit;

3. Date of receipt;

4. Name of utility;

5. Interest rate;

6. Address where service is to be rendered;

7. Statement of the terms under which the deposit may be refunded.

Upon discontinuance of service, each utility shall promptly and automatically refund the customers' deposits plus accrued interest on the balance, if any, in excess of the unpaid bills for service furnished by the utility. In the case of any residential customer who has received utility service at the same location for twenty-four consecutive months, and who has paid his monthly utility bills promptly and regularly, and is not, at the end of such twenty-four-month period, delinquent in the payment of his bills, the utility shall, within thirty days of the end of the twenty-four-month period, automatically refund the deposit plus accrued interest, provided however, that the term promptly and regularly shall not be construed to disallow the refund to a customer who has had only two delinquent payments during the twenty-four month period. If a customer has had service discontinued for nonpayment of his bill, or has not paid his bills promptly and regularly, the utility shall withhold the refund, but thereafter, review the customer's account every twelve billings, and at the completion of twenty-four month during which a record of prompt and regular payments has been established, the utility shall automatically refund the deposit, plus accrued interest. At the option of the utility, a deposit plus accrued interest may be refunded in whole or in part, at any time earlier than the times here in above prescribed, and based on any credit review period less than twenty-four months in the discretion of the utility.

(6) Reserved.

(7) Rural Telephone Bank borrowers shall follow the accounting treatment described by the National Association of Regulatory Utility Commissioners in their accounting interpretation of the Uniform System of Accounts applicable to Rural Telephone Bank stock. The account numbers pertinent to these transactions shall be in accordance with the Uniform System of Accounts prescribed in (b) above.

(8) A Tier 2 Local Exchange Company (defined in O.C.G.A. § 46-5-162(10)(b)) that has elected alternative regulation (defined in O.C.G.A. § 46-5-162(1)) pursuant to O.C.G.A. § 46-5-165 may use Generally Accepted Accounting Principles (GAAP) in lieu of the Uniform System of Accounts (USOA) required in Rule 515-3-1-.10(b)(I)(i) to calculate depreciation.

O.C.G.A. § 46-2-20. Ga. L. 1878-79, p. 125; 1907, pp. 72-81; 1922, pp. 142-147; 1975, pp. 404-412

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