Wholesale Power Sales - FERC-Regulated Market Revenue
Recording revenue from wholesale electricity sales in organized wholesale markets (PJM, MISO, CAISO, SPP) at market clearing prices, recognized at the time of delivery.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Wholesale Power Sales (RTO/ISO) | Asset (+) | 48,500,000.00 | - |
| Wholesale Power Revenue - Energy Market | Revenue (+) | - | 48,500,000.00 |
💡 Accountant's Note
Utilities that sell power into organized wholesale markets (Regional Transmission Organizations like PJM, MISO, CAISO) recognize revenue at the real-time or day-ahead Locational Marginal Price (LMP) as power is delivered. Wholesale revenue is subject to FERC (not state PUC) jurisdiction. Large utilities may simultaneously be buyers and sellers in wholesale markets — netting is not permitted absent regulatory guidance. FERC market settlements (daily or monthly) drive the billing process. Revenue is highly volatile, tied to LMP which can swing from negative to thousands of dollars per MWh.
Practitioner & Systems Framework
💻 ERP Architecture
RTO/ISO settlement statements (from PJM, MISO, etc.) are received monthly and represent the authoritative source for wholesale market revenues and costs. These statements are complex — they include real-time energy, day-ahead energy, capacity, ancillary services, and transmission congestion components. The settlement statement must be reconciled to the utility's own meter data and position management system.
⚠️ Audit Flags
Auditors verify wholesale revenue against RTO/ISO settlement statements. Reconciling the utility's internal generation records (MW dispatched by hour) to the RTO settlement statement tests completeness and accuracy. Significant unreconciled differences may indicate metering errors or settlement disputes.
📄 Required Documentation
RTO/ISO settlement statements by market interval, meter data management system records (MWh by generating unit by hour), price verification (LMP by node and interval), disputes log for settlement discrepancies, FERC Form 1 wholesale revenue reporting.
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