Plant in Service - Capital Addition (FERC Uniform System of Accounts)
Recording the transfer of a completed plant addition from Construction Work in Progress (CWIP) to Plant in Service, following the FERC Uniform System of Accounts structure for electric utilities.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Electric Plant in Service - Steam Production (FERC Acct 311) | Asset (+) | 285,000,000.00 | - |
| Construction Work in Progress - CWIP (FERC Acct 107) | Asset (-) | - | 285,000,000.00 |
💡 Accountant's Note
FERC's Uniform System of Accounts (18 CFR Part 101) prescribes detailed account classifications for electric utility plant. Unlike commercial GAAP (which might use a single 'Property, Plant & Equipment' account), regulated electric utilities must classify ALL plant by function: Steam Production (301–315), Nuclear Production (320–335), Hydraulic Production (330–346), Other Production (340–346), Transmission (350–359), Distribution (360–374), General Plant (389–399). The account number classification affects the rate base composition and is critical for rate case proceedings. Plant is transferred from CWIP (Account 107) to Plant in Service when commercially operational.
Practitioner & Systems Framework
💻 ERP Architecture
Government ERP systems for regulated utilities maintain plant records in the FERC Chart of Accounts structure. The plant accounting module must track: FERC account, vintage year, installation date, unit of property (for retirement tracking), cost component (materials, labor, overheads, AFUDC), and estimated life. FERC Order 584 requires detailed plant addition reporting. Regulators use FERC Form 1 plant data to verify rate base in rate cases.
⚠️ Audit Flags
The FERC account classification of plant additions is audited both by external auditors and FERC staff. Misclassification between accounts affects rate base and thus revenue requirements. The determination of 'commercial operation' (triggering the CWIP-to-plant transfer and the start of depreciation) requires specific criteria documentation — particularly for complex facilities like renewable generation units.
📄 Required Documentation
Commercial operation date determination memo, capital cost summary by FERC account, construction contract and change orders, work order completion records, FERC account classification analysis, depreciation rate study supporting estimated useful life, FERC Form 1 plant addition reporting.
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