Current through Register 1537, December 20, 2024
220 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
