Using GASB 62 and ASC 980 - Recording Future Recoverable Costs is a useful tool in regulatory accounting and managing utility financial results is to recognize the difference between bond principal payments on debt-financed fixed assets and the depreciation expense on those assets.

Electric regulatory accounting under ASC 980 and GASB 62 is your friend when it comes to events that cannot be recovered in customer rates. Events like unexpected major storms, increases in power costs, contributed assets, long-term pension obligations, and commodity mark-to-market gains or losses can impact current cash flows but not be collected from customers until a future rate change. Regulatory accounting will help structure the matching of expense recognition to rate recovery.