GASB 89 requires municipal electric utilities to expense construction period interest. This does a dis-service to current electric ratepayers but there is an exception that gives a more reasonable outcome. We'll discuss the options.

CIAC accounting is accounting for amounts paid by developers, customers, and governments for reimbursement of electric assets that a utility or co-op is constructing to serve them. CIAC accounting is straightforward for electric co-ops and private sector utilities, but complicated for GASB-following municipal utilities. We discuss the methods and some alternatives.

The FERC Chart of Accounts sets the standard for electric fixed assets accounting. This case study presents an electric utility seeking to strengthen its work order fixed asset processes. The solution took time, but the outcome was spot-on. This article is a bit technical, but if your electric co-op or utility is considering addressing deficiencies in its fixed assets, this is a detailed approach that will be a winner.

In FERC work order accounting, overhead costs are part of the universe of costs that should also be charged to construction projects - along with the direct costs of utility construction - direct labor and materials. These costs fall under the umbrella of "overheads" and can sometimes be close to or above a project's direct labor and inventory costs.

This article is a high-level discussion of utility construction overheads, i.e. their make-up, calculation, and application.