Subchapter D. ACCOUNTS AND RECORDS
Sec.
57.41. Classification of electric public utilities.
57.42. Systems of accounts prescribed.
57.43. Accounting for merchandising, jobbing and contract work.
57.44. Retirement units for electric plant.
57.45. Preservation of records.
57.46. Continuing property records.
57.47. Filing of annual financial reports.
57.48. [Reserved].
57.49. [Reserved].
57.50. [Reserved].§ 57.41. Classification of electric public utilities.
For accounting and reporting purposes, electric public utilities are classified as follows:
(1) Class A. Public utilities having annual electric operating revenues of $2.5 million or more.
(2) Class B. Public utilities having annual electric operating revenues of $1 million or more but less than $2.5 million.
(3) Class C. Public utilities having annual electric operating revenues of $150,000 or more but less than $1,000,000.
(4) Class D. Public utilities having annual electric operating revenues of $25,000 or more but less than $150,000.
Source The provisions of this § 57.41 adopted February 25, 1946; amended through May 29, 1973.
§ 57.42. Systems of accounts prescribed.
(a) Each Class A and Class B electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)’’ of the Federal Energy Regulatory Commission.
(b) Each Class C electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class C)’’ of the Federal Energy Regulatory Commission.
(c) Each Class D electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class D)’’ of the Federal Energy Regulatory Commission.
Authority The provisions of this § 57.42 issued under Public Utility Code,66 Pa.C.S. § § 331, 501, 504 and 1501.
Source The provisions of this § 57.42 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131. Immediately preceding text appears at serial pages (78456) to (78457).
Notes of Decisions Federal Energy Regulatory Commission
Although a public utility is required to keep its accounts in conformity with the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC), there is no evidence that the regulations governing the FERC were inextricably tied to or wholly incorporated into the Tax Reform Code (72 P. S. § 8101 et seq.). To the contrary, the FERC’s authority over state matters has been specifically limited such that federal regulation only extends to those matters which are not subject to regulation by the states. Thus, taxation on the ‘‘sales of electric energy’’ was governed by the Tax Reform Code and accordingly the taxability of gross receipts from residential and nonresidential late charges was not governed by the FERC regulations. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).
Gross Receipts
The Federal accounting procedure which the Pennsylvania Code requires the electric utility to follow does not control the court’s interpretation of the Pennsylvania Tax Reform Code; thus, the gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as do gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Board of Finance and Revenue, 717 A.2d 504 (Pa. 1998).
The gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).
Cross References This section cited in 52 Pa. Code § 57.43 (relating to accounting for merchandising, jobbing and contract work); and 52 Pa. Code § 57.46 (relating to continuing property records).
§ 57.43. Accounting for merchandising, jobbing and contract work.
Revenues, costs and expenses pertaining to merchandising, jobbing and contract work shall be recorded appropriately in accounts 914 and 915 or accounts 592 and 593 in the uniform accounting system prescribed in § 57.42 (relating to systems of accounts prescribed).
Source The provisions of this § 57.43 adopted February 25, 1946; amended through May 29, 1973.
§ 57.44. Retirement units for electric plant.
A public utility having annual electric operating revenues of $25,000 or more shall, in its accounting for plant retirements, conform to the ‘‘Units of Property for Use in Accounting for Additions and Retirements of Electric Plant’’ of the Federal Energy Regulatory Commission.
Authority The provisions of this § 57.44 issued under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504 and 1501.
Source The provisions of this § 57.44 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131. Immediately preceding text appears at serial page (78457).
§ 57.45. Preservation of records.
Each electric utility shall keep and preserve its records in conformity with the provisions applicable to it in the most recent publication of the National Association of Regulatory Utility Commissioners, entitled ‘‘Regulations to Govern the Preservation of Records of Electric Gas and Water Utilities, except as follows when the following retention periods apply:
Item No. and Description Retention Period 6. (a) Minute books of stockholders’, directors’, and directors’ committee meetings. 25 years 6. (b)(4) Licenses (including amendments thereof) granted by Federal or State authorities for construction and operation of utility plant. 5 years after plant is retired or expiration of license, whichever is shorter. 8. (a) Reports of examinations and audits by accountants and auditors not in the regular employ of the utility (such as reports of public accounting firms and regulatory commission accountants). 5 years after date of report or Commission audit, whichever comes last. 8. (b) Internal audit reports and work papers. 5 years after date of report or Commission audit, whichever comes last. 10. (a)(1) General ledgers. 20 years 10. (a)(2) Ledgers subsidiary or auxiliary to general ledgers except ledgers provided for elsewhere. 20 years 10. (b)(1) Indexes to general ledgers. 20 years 10. (b)(2) Indexes to subsidiary ledgers except ledgers provided for elsewhere. 20 years 11. (a) Journals, general and subsidiary. 20 years 12. (a) Journal vouchers and journal entries. 20 years 13. (a) Cash books, general and subsidiary or auxiliary books. 5 years after close of fiscal year. 14. (a) Voucher registers or similar records when used as a source document. 5 years 15. (a) Paid and cancelled vouchers (1 copy analysis sheets showing detailed distribution of charges on individual vouchers and other supporting papers). 5 years 15. (b) Original bills and invoices for materials, services, and the like, paid by vouchers. 5 years 15. (c) Paid checks and receipts for payments by voucher or otherwise. 5 years 15. (d) Authorization for the payment of specific vouchers. 5 years 22.4. (e) Pumping output logs with supporting data. 3 years 26. (a) Authorization for expenditures for maintenance work to be covered by work orders, including memoranda showing the estimates of costs to be incurred. 5 years 26. (b) Work order sheets to which are posted in detail the entries for labor, material and other charges in connection with maintenance and other work pertaining to utility operations. 5 years 26. (c) Summaries of expenditures on maintenance and job orders and clearances to operating and other accounts (exclusive of plant accounts). 5 years 30. (a) Ledgers of utility plant accounts including land and other detailed ledgers showing the costs of utility plant by classes. 30 years 31. (a) Construction work in progress ledgers. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 31. (b) Work order sheets to which are posted in summary form or in detail the entries for labor, materials and other charges for utility plant additions and the entries closing the work orders to utility plant in service at completion. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 31. (f) Analysis or cost reports showing quantities of materials used, unit costs, number of man-hours, etc., in connection with completed construction project. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 5 years after plant is retired. 33. Summary sheets, distribution sheets, reports, statements, and papers directly supporting debits and credits to utility plant accounts not covered by construction or retirement work orders and their supporting records. 5 years after clearance to the plant account, provided continuing property plant inventory records are maintained; otherwise 6 years after plant is retired. 41. (a) Ledger sheets and card records of materials and supplies received, issued and on hand. 6 years 45. (a) Applications for utility service for which contracts have been executed. 4 years 45. (g) Applications and contracts for extensions covered by refundable deposits or guarantees of revenue, also records pertaining to such contracts. 4 years after entire amount is refunded. 45. (h) Applications and contracts for extensions for which donations or contributions are made by customers or others. 4 years after expiration. 46. (a) General files of published rate sheets and schedules of utility service (including schedules suspended or superseded). 6 years 51. (a) Summaries of monthly operating revenues according to classes of service for entire utility. 5 years 51. (b) Summaries of monthly operating revenues according to classes of service by towns, districts, or divisions (including summaries of forfeited discounts and penalties). 5 years 53. (e) Cashiers’ stubs for merchandise collection. 1 year 57. (a)(1) Federal income tax returns. 5 years after settlement. 57. (a)(5) Agreements between associate companies as to allocation of consolidated income taxes. 5 years after settlement. 57. (c) Filings with taxing authorities to qualify employee benefit plans. 5 years after settlement of Federal return or discontinuance of plan, whichever is later. 59. (f) Check stubs, registers, or other records of checks issued. 5 years 59. (g) Correspondence and memoranda relating to the stopping of payment of bank checks and to the issuance of duplicate checks. 5 years or destroy at option after check is recovered. 61. (a) Annual financial, operating and statistical reports regularly prepared in the course of business for internal administrative or operating purposes (and not used as the basis for entries to accounts of the companies concerned) to show the results of operations and the financial condition of the utility. 5 years after date of report. 65. (a) Annual financial, operating and statistical reports. 15 years 65. (c)(1) Transaction with associated companies. 5 years 65. (c)(7) Purchases and sales, utility properties. 10 years 65. (c)(9) Service interruptions. 5 years 66. (a) Copies of advertisements by the company on behalf of itself or any associate company in newspapers, magazines and other publications including records thereof. (Excluding advertising of product, appliances, employment opportunities, services, territory, routine notices and invitations for bids for securities, all of which may be destroyed at option). 3 years
Authority The provisions of this § 57.45 issued under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504 and 1501; amended under the Public Utility Code, 66 Pa.C.S. § § 501, 504—506, 1301 and 1501.
Source The provisions of this § 57.45 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended January 24, 1997, effective January 25, 1997, 27 Pa.B. 414; amended December 5, 2003, effective December 6, 2003, 33 Pa.B. 5923; amended March 25, 2005, effective March 26, 2005, 35 Pa.B. 1886. Immediately preceding text appears at serial pages (301425) to (301430).
§ 57.46. Continuing property records.
(a) A public utility having annual electric operating revenues of $25,000 or more shall maintain a continuing property record of its electric plant, the cost of which is recorded in accounts 101, 102, 103, 104, and 105 in the uniform accounting system prescribed in § 57.42 (relating to systems of accounts prescribed).
(b) An outline of the plan of the company for the establishment and maintenance of its continuing property record shall be submitted to the Commission for approval. Major changes in the plan shall also be submitted to the Commission.
(c) The continuing property record shall contain the detailed description and classification of property record units as will provide all of the following:
(1) An inventory of plant by property record units which may be readily checked for proof of existence.
(2) The association of costs with the units, to assure accurate retirement accounting.
(3) The dates of installation and removal of property record units, to provide age and life data for use in depreciation studies.
(d) The continuing property record, or records supplemental to it, shall include information as to the kind, character, size, quantity, location, year of placement and retirement, percentage of ownership and original cost of electric plant.
(e) Plants comprising a large number of similar units, such as poles, wire, meters and line transformers, may be grouped, and the average cost used for retirement accounting. Grouping should be by years of construction within one cost-keeping area. The entire system may be considered as one cost-keeping area unless otherwise required for regulatory purposes. If it is impracticable to account for construction by years, the public utility may, with Commission approval, cost certain items by bands of years or by average costs for all years. The grouping does not relieve the utility from its requirements to provide age and life data and to maintain location records for such plant.
Source The provisions of this § 57.46 adopted February 25, 1946; amended through May 29, 1973.
§ 57.47. Filing of annual financial reports.
Under 66 Pa.C.S. § § 504 and 3301 (relating to reports by public utilities; and civil penalties for violations), the Commission may require a public utility to file, and invoke penalties for failure to file, certain reports. In this regard, the following apply:
(1) Unless prior permission to do otherwise is granted, a public utility, other than transportation, subject to the jurisdiction of the Commission, shall file annual financial reports with the Commission by April 30 immediately following the reporting year, for reports based upon the calendar year; or by July 31 immediately following, for reports permitted to be based upon the fiscal year ending May 31. A request for an extension of time for filing an annual report shall be submitted to the Commission prior to the filing dates specified in this paragraph.
(2) If a public utility, other than transportation, fails to file its annual report in compliance with this section, the public utility may be subject to a penalty as provided under 66 Pa.C.S. § 3301. Continued failure to file annual reports may result in additional penalties.
Authority The provisions of this § 57.47 issued under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504 and 1501; amended under the Public Utility Code, 66 Pa.C.S. § § 501 and 504.
Source The provisions of this § 57.47 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended May 6, 1988, effective May 7, 1988, 18 Pa.B. 2106. Immediately preceding text appears at serial pages (125403) to (125404).
Notes of Decisions Gross Receipts
The gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).
Cross References This section cited in 52 Pa. Code § 101.2 (relating to definitions); and 52 Pa. Code § 101.4 (relating to reporting requirements).
§ 57.48. [Reserved].
Source The provisions of this § 57.48 adopted May 19, 1928, effective May 20, 1978, 8 Pa.B. 1403; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (126828) and (125405).
§ 57.49. [Reserved].
Source The provisions of this § 57.49 adopted January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended February 12, 1988, effective February 13, 1988, 18 Pa.B. 662; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (125405) to (125411).
Notes of Decisions Construction
This regulation is an expansion of 66 Pa.C.S. § 524. Pennsylvania Indus. Energy Coalition v. Pennsylvania Public Utility Commission, 653 A.2d 1336 (Pa. Cmwlth.), appeal granted, 665 A.2d 471 (Pa. 1995).
General Comment
The Public Utility Commission established these regulations to require utilities to implement a ‘‘least-cost planning strategy’’ by planning long-term, cost efficient methods to supply electricity and to lessen the demand needed. Pennsylvania Indus. Energy Coalition v. Pennsylvania Public Utility Commission, 653 A.2d 1336 (Pa. Cmwlth.), appeal granted, 665 A.2d 471 (Pa. 1995).
§ 57.50. [Reserved].
Source The provisions of this § 57.50 adopted January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended February 12, 1988, effective February 13, 1988, 18 Pa.B. 662; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (125411) to (125426).
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