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 17.12.720.21 - OPERATIONS AND MAINTENANCE EXPENSE ACCOUNTS
Universal Citation: 17 NM Admin Code 17.12.720.21
Current through Register Vol. 35, No. 18, September 24, 2024
A. Source of Supply Expenses:
(1) 601 - Purchased Water.
(a) This account shall include the cost at
the point of delivery of water purchased for resale. This includes charges for
readiness to serve and the portion applicable to each accounting period of
annual or more frequent payments for the right to divert water at the source of
supply.
(b) The records supporting
this account shall be so kept as to show for each supplier from which water is
purchased, point of delivery, quantity purchased, basis of charges, and the
cost of water purchased.
(2) [RESERVED]
B. Pumping Expenses:
(1) 622 - Fuel or Power Purchased for
Pumping:
(a) This account shall include the
cost of fuel or power purchased used directly in operation of pumps.
(b) This account shall also include the cost
of power transferred to water pumping operations from other departments under
joint facility arrangements.
(c)
Item:
(i) Diesel fuel.
(ii) Electric power.
(iii) Gasoline.
(iv) Gas.
(v) Other fuel or power.
(vi) Steam.
(2) [RESERVED]
C. Water Treatment:
(1) 631 - Chemicals:
(a) This account shall include the cost of
all chemicals used in the treatment of water. Include also the entire cost of
any chemicals manufactured by the utility.
(b) Items:
(i) Activated carbon.
(ii) Ammonia.
(iii) Caustic soda.
(iv) Chlorine.
(v) Copper sulphate.
(vi) Fluorine compound.
(vii) High test hypochlorite.
(viii) Iron sulphate.
(ix) Lime.
(x) Soda ash.
(xi) Sodium chlorite.
(xii) Sulphate of alumina.
(xiii) Sulphuric acid.
(xiv) Other chemicals.
(2) [RESERVED]
D. General Expenses: Salaries:
(1) 920.1 - Salaries Paid to Owner(s): This
account shall include the compensation (salaries, bonuses, and other
consideration for services) of owners of the utility properly chargeable to
utility operations.
(2) 920.2 -
Salaries Paid to Other Employees: This account shall include the compensation
(salaries, wages, bonuses, and other consideration for services) of employees
of the utility, permanent or temporary and other than the owner(s), properly
chargeable to utility operations.
(3) 921 - Administrative and Office Expenses:
(a) This account shall include office
supplies and other expenses incurred in connection with the general
administration of the utility's operations which are assignable to specific
administrative or general departments and are not specifically provided for in
other accounts.
(b) Items:
(i) Bank messenger and service
charges.
(ii) Books, periodicals,
bulletins, and subscriptions to newspapers, newsletters, tax services,
etc.
(iii) Building service
expenses for customer accounts, sales, and administrative and general
purposes.
(iv) Communication
service (telephone, etc.)
(v) Cost
of individual items of office equipment used by general departments which are
of small value or short life.
(vi)
Membership fees and dues in trade, technical, and professional associations
paid by utility for employees. (Company memberships are includable in account
930.)
(vii) Office supplies and
expenses.
(viii) Payment of court
costs, witness fees, and other expenses of legal department.
(ix) Postage, printing, and
stationery.
(x) Meals, traveling,
and incidental expenses.
(4) 922 - Maintenance, Repairs, and Supplies:
This account shall include all Transmission and Distribution expenses,
including supplies and expenses associated with the operation and maintenance
of all utility plant, such as wells, reservoirs, tanks, mains, services,
hydrants, meters, pumps, water treatment equipment, etc., and including
contract labor and equipment costs.
(5) 923 - Outside Services Employed:
(a) This account shall include the fees and
expenses of professional consultants and others for general services which are
not applicable to a particular operating function nor to other accounts. It
shall also include the pay and expenses of persons engaged for a special or
temporary administrative or general purpose in circumstances where the person
so engaged is not considered as an employee of the utility.
(b) This account shall be so maintained as to
permit ready summarization according to the nature of service and the person
furnishing the same.
(c) Items:
(i) Fees, pay, and expenses of accountants
and auditors, actuaries, appraisers, attorneys, engineering consultants,
management consultants, negotiators, public relations counsel, tax consultants,
etc.
(ii) Supervision fees and
expenses paid under contracts for general management services.
(6) 924 - Property
Insurance:
(a) This account shall include the
cost of insurance or reserve accruals to protect the utility against losses and
damages to owned or leased property used in its utility operations It shall
also include the cost of labor and related supplies and expenses incurred in
property insurance activities.
(b)
Recoveries from insurance companies or others for property damages shall be
credited to that account charged with the cost of the damage. If the damaged
property has been retired, the credit shall be to the appropriate account for
accumulated provision for depreciation.
(c) Records shall be kept so as to show the
amount of coverage for each class of insurance carried, the property covered,
and the applicable premiums. Any dividends distributed by mutual insurance
companies shall be credited to the accounts to which the insurance premiums
were charged.
(d) Items:
(i) Premiums payable to insurance companies
for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and
similar insurance.
(ii) Amounts
credited to account 265, Operating Reserve, for similar protection.
(iii) Special costs incurred in procuring
insurance.
(iv) Insurance
inspection service.
(v) Insurance
counsel brokerage fees and expenses.
(7) 926 - Employees Pensions and Benefits:
(a) This account shall include pensions paid
to or on behalf of retired employees, or accruals to provide for pensions, or
payments for the purchase of annuities for the purpose when the utility has
definitely, by contract, committed itself to a pension plan under which the
pension funds are irrevocably devoted to pension purposes, and payments for
employee accident, sickness, hospital, and death benefits, or insurance
therefor. Include, also, expenses incurred in medical, educational, or
recreational activities for the benefit of employees and administrative
expenses in connection with employee pensions and benefits.
(b) The utility shall maintain a complete
record of accruals or payments for pensions and be prepared to furnish full
information to the Commission of the plan under which it has created or
proposes to create a pension fund and a copy of the declaration of trust or
resolution under which the pension plan is established.
(c) There shall be credited to this account
the portion of pensions and benefits expenses which is applicable to nonutility
operations or which is charged to construction unless such amounts are
distributed directly to the accounts involved and are not included herein in
the first instance.
(d) Records in
support of this account shall be kept so that the total pensions expense, the
total benefits expense, the administrative expenses included herein, and the
amounts of pensions and benefits expenses transferred to construction or other
accounts will be readily available.
(e) Items:
(i) Payment of pensions under a nonaccrual of
nonfunded basis.
(ii) Accruals for
or payments to pension funds or to insurance companies for pension
purposes.
(iii) Group and life
insurance premiums (credit dividends received).
(iv) Payments for medical and hospital
services and expenses of employees when not the result of occupational
injuries.
(v) Payments for
accident, sickness, hospital, and death benefits or insurance.
(vi) Payments to employees incapacitated for
service or on leave of absence beyond periods normally allowed when not the
result of occupational injuries or in excess of statutory awards.
(vii) Expenses in connection with educational
and recreational activities for the benefit of employees.
(f) Note A: The cost of labor and related
supplies and expenses of administrative and general employees who are only
incidentally engaged in employee pension and benefit activities may be included
in account 920 and 921, as appropriate.
(g) Note B: Salaries paid to employees during
periods of nonoccupational sickness may be charged to appropriate account 920.2
or 922.
(8) 928 -
Regulatory Commission Expenses:
(a) This
account shall include all expenses (except pay of regular employees only
incidentally engaged in such work properly) includable in utility operating
expenses, incurred by the utility in connection with formal cases before
regulatory commission or other regulatory bodies, or cases in which such a body
is a party.
(b) Amounts of
regulatory commission expenses which by approval or direction of the Commission
are to be spread over future periods shall be charged to account 183, Other
Deferred Debits, and amortized by charges to this account.
(c) The utility shall be prepared to report
the cost of each formal case.
(i) Salaries,
fees, retainers, and expenses of counsel, solicitors, attorneys, accountants,
engineers, clerks, attendants, witnesses, and others engaged in the prosecution
of, or defense against, petitions or complaints presented to regulatory bodies,
or in the valuation of property owned or used by the utility in connection with
such cases.
(ii) Office supplies
and expenses, payments to public service or other regulatory commissions,
stationery and printing, traveling expenses, and other expenses incurred
directly in connection with formal cases before regulatory
commissions.
(9) 930 - Miscellaneous General Expenses:
(a) This account shall include the cost of
labor and expenses incurred in connection with the general management of the
utility not provided for elsewhere.
(b) Items: Expenses:
(i) Industry association dues for company
memberships.
(ii) Contributions for
conventions and meetings of the industry.
(iii) Institutional or goodwill advertising.
(See note below.)
(iv) Public
notices of financial, operating, and other data required by regulatory
statutes, not including, however, notices required in connection with security
issues or acquisitions of property.
(10) Transportation Expenses:
(a) This account shall include the cost of
labor, materials used, and expenses incurred in the operation and maintenance
of general transportation equipment of the utility.
(b) Items:
(i) Insurance on transportation
equipment.
(ii) License fees for
vehicles and drivers.
(iii) Rents
for equipment and garages.
(iv)
Repairs of transportation equipment.
(v) Supplies such as gas, oil, tires, tubes,
grease, etc.
(c) Note:
Transportation expenses applicable to construction shall not be included in
operating expenses.
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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