New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 12 - WATER SERVICES
Part 720 - UNIFORM SYSTEMS OF ACCOUNTS AND ANNUAL REPORT FORMS FOR WATER UTILITIES
Section 17.12.720.15 - OPERATING EXPENSE INSTRUCTIONS
Universal Citation: 17 NM Admin Code 17.12.720.15
Current through Register Vol. 35, No. 18, September 24, 2024
A. Maintenance:
(1) The cost of maintenance includes contract
material, contract labor, materials, overheads, and other expenses incurred in
maintenance work. A list of work operations applicable generally to utility
plant is included hereunder.
(2)
Materials recovered in connection with the maintenance of property shall be
credited to the maintenance account.
(3) If the book cost of any property is
carried in account 106, Utility Plant Purchased or Sold, the cost of
maintaining such property shall be charged to the account for maintenance, the
book cost of which is carried in other utility plant in service accounts.
Maintenance of property leased from others shall be treated as provided in
Operating Expense Instruction 2. Items:
(a)
Direct field supervision of maintenance.
(b) Inspecting, testing, and reporting on
condition of plant specifically to determine the need for repairs,
replacements, rearrangements, and changes and inspecting and testing the
adequacy of repairs which have been made.
(c) Work performed specifically for the
purpose of preventing failure, restoring serviceability, or maintaining life of
plant.
(d) Rearranging and changing
the location of plant not retired.
(e) Repairing for reuse materials recovered
from plant.
(f) Testing for,
locating, and clearing trouble.
(g)
Net cost of installing, maintaining, and removing temporary facilities to
prevent interruption in service.
(h) Replacing or adding minor items of plant
which do not constitute a retirement unit. (See Utility Plant Instruction
9.)
B. Rents:
(1) Expense shall include all rents,
including taxes paid by the lessee on leased property, for property used in
utility operations.
(2) When a
portion of property or equipment rented from others for use in connection with
utility operations is subleased, the revenue derived from such subleasing shall
be credited to the rent revenue account in operating revenues; 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.
(3) The cost, when
incurred by the lessee, of operating and maintaining leased property shall be
charged to expense as if the property were owned.
(4) The cost incurred by the Lessee of
additions and replacements to utility plant leased from others shall be
accounted for as provided in Utility Plant Instruction 5.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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