The adoption of technology and digitalization in the electric industry varies and doesn't always correlate with the size of the cooperative or utility. Regardless of the utility's size, implementing technology can enhance efficiency and address challenges such as record accuracy and staffing shortages.

An overly conservative approach in accounting can result in missed opportunities to optimize business management and enhance customer service.

How can this lead to missing opportunities to improve cost recovery, stabilize revenues, and smooth customer rates?

Creating a capital budget involves planning for significant long-term investments in assets or projects. Sounds easy?, but it is a combination of long-term forecasting of system needs, financing (debt and equity), and impact on rates. Here is a framework that is effective.

In the utility business, overhead costs can be greater than the direct costs of a project, i.e., labor and inventory. An effective overhead calculation process is one crucial factor in ensuring that infrastructure costs are recovered in customer rates.

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 the account number for:

- Solar production

- Wind production

- Other renewable production

- Energy storage

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.