FERC Issues Order 898 - New Accounts for Renewable Electric Assets
An upgrade to your electric chart of accounts
Electric utility finance and accounting professionals can rejoice! FERC has solved your dilemma regarding accounting for renewable energy fixed assets and the related software specific to each operational area.
With the issue of Order 898 - FERC has upgraded its chart of accounts to include account numbers for:
- Solar production
- Wind production
- Other renewable production
- Energy storage
Solar power
The chart of accounts upgrade also includes specific accounts in each operational plant category for computer hardware and software - moving these areas out of the administrative and general area of the accounts.
The excitement will carry over to cost-of-service studies, making assigning costs to the renewables category easier.
The FERC upgrades will eliminate the McGiver systems we have been using for solar and wind assets and bring uniformity to the process. The order is effective January 1, 2025.
Here is the link to the updates. Or contact Utility Accounting and Rates Specialists with any implementation questions.
Utility Accounting and Rates Specialists provides on-line/on-demand courses on operations and construction project accounting, rates, and management for new and experienced co-op and utility professionals and Board members. Click on the button to see a highlighted listing and description of our course offerings.
About Russ Hissom - Article Author
Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utilities rate, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.
Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@utilityeducation.com.
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists. You should seek formal advice on this topic from your accounting or legal advisor.