Electric utility finance and accounting professionals can rejoice! FERC has solved your dilemma regarding accounting for renewable energy fixed assets and the related software specific to each operational area.
With the issue of Order 898 - FERC has upgraded its chart of accounts to include the account number for:
- Solar production
- Wind production
- Other renewable production
- Energy storage
The chart of accounts upgrade also includes specific accounts in each operational plant category for computer hardware and software - moving these areas out of the administrative and general area of the accounts.
The excitement will carry over to cost-of-service studies, making assigning costs to the renewables category easier.
The FERC upgrades will eliminate the McGiver systems we have been using for solar and wind assets and bring uniformity to the process. Â The order is effective January 1, 2025.
Here is the link to the updates. Or contact Utility Accounting and Rates Specialists with any implementation questions.
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About Russ Hissom
Russ is the owner of Utility Accounting and Rates Specialists a firm that provides power utilities consulting services and online/on-demand courses on accounting, finance, FERC best-practices, improving business processes, and implementing strategy. Russ is passionate about the Power and Utilities Industry and his goal is to share industry best practices to help better your business and enhance your career knowledge. He has over 35 years serving electric investor-owned and public power utilities, electric cooperatives, broadband providers, and water, wastewater, and gas utilities as a past partner in a national public accounting and consulting firm's power and utilities practice.
Find out more about about Utility Accounting and Rates Specialists here or you can reach Russ at [email protected]
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by UAES. You should seek formal advice on this topic from your accounting advisor.
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