Transmission Revenue - FERC-Regulated Open Access Tariff (OATT)
Recording transmission revenue from third-party utilities and generators using the regulated utility's transmission system under FERC's Open Access Transmission Tariff (OATT).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Transmission Customers (OATT) | Asset (+) | 35,000,000.00 | - |
| Transmission Revenue - FERC Tariff | Revenue (+) | - | 35,000,000.00 |
💡 Accountant's Note
Under FERC Order 888 (1996), transmission-owning utilities must provide open access to their transmission systems under a filed OATT (Open Access Transmission Tariff) at rates approved by FERC. Third-party generators, utilities, and power marketers pay transmission access charges based on distance, load, and MW reserved. OATT revenue is FERC-regulated (not state-regulated), subject to its own cost-of-service regulatory framework. The revenue requirement includes: return on transmission rate base, depreciation, O&M, taxes, and allocated overhead.
Practitioner & Systems Framework
💻 ERP Architecture
OATT billing is typically managed through the RTO (for utilities in organized markets) or directly by the transmission owner. The FERC Annual Transmission Pricing Study (ATPS) determines the OATT rate annually. Any over/under-collection vs. the revenue requirement is true-up in the following year's rate. Track transmission revenue separately from distribution revenue for FERC reporting.
⚠️ Audit Flags
Auditors verify OATT revenue against FERC-filed tariff rates and usage data (MW-hours of transmission service reserved). FERC audit staff independently review OATT compliance. The transmission revenue requirement calculation (which feeds the OATT rate) must align with FERC-filed cost of service data.
📄 Required Documentation
FERC-approved OATT rates, transmission usage data (MW reserved by customer), billing statements by transmission customer, FERC Form 1 transmission revenue reporting, transmission rate base calculation supporting the OATT rate.
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