UNIFORM SYSTEM OF ACCOUNTS FOR GENERAL INSTRUCTIONS AND DEFINITIONS 1. Authority for Uniform System of Accounts. This Uniform System of Accounts for Electrical Corporations is established and issued by the Public Service Commission under the following provision of the Public Service Commission Law (chapter 48 of the Consolidated Laws): § 66. The commission shall . . 4. Have power, in its discretion, to prescribe uniform methods of keeping accounts, records and books, to be observed by gas corporations and electrical corporations and by municipalities engaged in the manufacture, sale and distribution of gas and electricity for light, heat or power. It may also in its discretion prescribe, by order, forms of accounts, records and memoranda to be kept by such persons, corporations and municipalities. Notice of alterations by the commission in the required method or form of keeping a system of accounts shall be given to such persons or corporations by the commission at least six months before the same shall take effect. Any other and additional forms of accounts, records and memoranda kept by such corporation shall be subject to examination by the commission." The Public Service Commission Law defines electrical corporation as follows: § 2, subdivision 13. 'The term 'electrical corporation,' when used in this chapter, includes every corporation, company, association, joint-stock association, partnership and person, their lessees. trustees or receivers, appointed by any court whatsoever (other than a railroad or street railroad corporation generating electricity solely for railroad or street railroad purposes or for the use of its tenants and not for sale to others) owning, operating or managing any electric plant except where electricity is generated or distributed by the producer solely on or through private property for railroad or street railroad purposes or for its own use or the use of its tenants and not for sale to others." § 5b. Corporations formed to acquire property or to transact business which would be subject to the provisions of this chapter, and corporations possessing franchises for any of the purposes contemplated by this chapter, shall be deemed to be subject to the provisions of this chapter although no property may have been acquired, business transacted or franchises exercised." Whenever the term "electrical corporation" is used in this classification it shall be understood to have the inclusive meaning given it by the definition quoted above. The term "accounting company " is used in a like sense. 3. Accounts to be Kept by Double Entry Method. All the accounts (other than purely statistical accounts) defined in this classification must be kept by the double entry method. 4. Account Numbers Not a Part of Title. The numbers prefixed to account titles in this classification are solely for convenience of reference and are not part of the titles or definitions. 5. Accounting Period. It is recommended that each electrical corporation select the month as its accounting period and that it make its bookkeeping entries on a monthly basis. It may, however, select a quarterly or other basis if that will better meet the conditions under which it conducts its business. Each corporation will be required to close its бooks at the end of the fiscal year for which it makes its annual report. 6. Records. Each electrical corporation shall so keep its general accounting books and all other books and records which support in any way the entries to such accounting books that it can furnish at any time full information as to any account kept by it. Moreover, it shall support each entry to each account with such detailed information. as will enable a ready identification and verification of the facts recorded therein. The books referred to herein include not only books of account in a limited technical sense but all other records such as minute books, stock books, etc., which will be useful in developing the history of any of the accounting company's transactions. 7. Questions of Interpretation. In order that uniformity in the application of the provisions of this classification may be secured, accounting officers are requested to submit all questions of doubtful interpretation to this Commission for consideration and decision. 8. Accounts to be Kept. For the purpose of effectively applying the classification of Operating Expenses herein set forth to the accounts of electrical corporations, such corporations are divided into four classes, as follows: Class A-Corporations having average annual operating revenues exceeding $500,000. Class B-Corporations having average annual operating revenues exceeding $50,000, but not over $500,000. Class C-Corporations having average annual operating revenues exceeding $10,000, but not over $50,000. Class D-Corporations having average annual operating revenues of $10,000 or less. All electrical corporations for whom this Uniform System of Accounts is prescribed will keep Balance Sheet, Fixed Capital, Income, Profit and Loss, and Operating Revenue accounts as provided in this System of Accounts (so far as applicable to their business). |