1767.21—Operating income.
The operating income accounts identified in this section shall be used by all RUS borrowers.
Utility Operating Income
400Operating Revenues
401Operation Expense
402Maintenance Expense
403Depreciation Expense
403.1Depreciation Expense—Steam Production Plant
403.2Depreciation Expense—Nuclear Production Plant
403.3Depreciation Expense—Hydraulic Production Plant
403.4Depreciation Expense—Other Production Plant
403.5Depreciation Expense—Transmission Plant
403.6Depreciation Expense—Distribution Plant
403.7Depreciation Expense—General Plant
403.8Depreciation Expense-Asset Retirement Costs
403.9Depreciation Expense-Regional Transmission and Market Operation Plant
404Amortization of Limited-Term Electric Plant
405Amortization of Other Electric Plant
406Amortization of Electric Plant Acquisition Adjustments
407Amortization of Property Losses, Unrecovered Plant and Regulatory Study Costs
407.3Regulatory Debits
407.4Regulatory Credits
408Taxes Other than Income Taxes
408.1Taxes—Property
408.2Taxes—U.S. Social Security—Unemployment
408.3Taxes—U.S. Social Security—F.I.C.A.
408.4Taxes—State Social Security—Unemployment
408.5Taxes—State Sales—Consumers
408.6Taxes—Gross Revenue or Gross Receipts Tax
408.7Taxes—Other
409 [Reserved]
409.1Income Taxes, Utility Operating Income
409.2Income Taxes, Other Income and Deductions
409.3Income Taxes, Extraordinary Items
410 [Reserved]
410.1Provision for Deferred Income Taxes, Utility Operating Income
410.2Provision for Deferred Income Taxes, Other Income and Deductions
411 [Reserved]
411.1Provision for Deferred Income Taxes—Credit, Utility Operating Income
411.2Provision for Deferred Income Taxes—Credit, Other Income and Deductions
411.3 [Reserved]
411.4Investment Tax Credit Adjustments, Utility Operations
411.5Investment Tax Credit Adjustments, Nonutility Operations
411.6Gains from Disposition of Utility Plant
411.7Losses from Disposition of Utility Plant
411.8Gains from Disposition of Allowances
411.9Losses from Disposition of Allowances
411.10Accretion Expense
412Revenues from Electric Plant Leased to Others
413Expenses of Electric Plant Leased to Others
414Other Utility Operating Income
Utility Operating Income
400Operating Revenues
There shall be shown under this caption the total amount included in the electric operating revenue accounts provided herein.
401Operation Expense
There shall be shown under this caption the total amount included in the electric operation expense accounts provided herein. (See note to § 1767.17 (c).)
402Maintenance Expense
There shall be shown under this caption the total amount included in the electric maintenance expense accounts provided herein.
403Depreciation Expense
A. This account shall include the amount of depreciation expense for all classes of depreciable electric plant in service except such depreciation expense as is chargeable to clearing accounts or to Account 416, Costs and Expenses of Merchandising, Jobbing and Contract Work.
B. The utility shall keep such records of property and property retirements as will reflect the service life of property which has been retired and aid in estimating probable service life by mortality, turnover, or other appropriate methods; and also such records as will reflect the percentage of salvage and costs of removal for property retired from each account, or subdivision thereof, for depreciable electric plant.
C. Account 403 shall be subaccounted as follows:
403.1Depreciation Expense—Steam Production Plant
403.2Depreciation Expense—Nuclear Production Plant
403.3Depreciation Expense—Hydraulic Production Plant
403.4Depreciation Expense—Other Production Plant
403.5Depreciation Expense—Transmission Plant
403.6Depreciation Expense—Distribution Plant
403.7Depreciation Expense—General Plant
403.8Depreciation Expense-Asset Retirement Costs
403.9Depreciation Expense-Regional Transmission and Market Operation Plant
404Amortization of Limited-Term Electric Plant
This account shall include amortization charges applicable to amounts included in the electric plant accounts for limited-term franchises, licenses, patent rights, limited-term interests in land, and expenditures on leased property where the service life of the improvements is terminable by action of the lease. The charges to this account shall be such as to distribute the book cost of each investment as evenly as may be over the period of its benefit to the utility. (See Account 111, Accumulated Provision for Amortization of Electric Utility Plant.)
405Amortization of Other Electric Plant
A. When authorized by RUS, this account shall include charges for amortization of intangible or other electric utility plant which does not have a definite or terminable life and which is not subject to charges for depreciation expense.
B. This account shall be supported in such detail as to show the amortization applicable to each investment being amortized, together with the book cost of the investment and the period over which it is being written off.
406Amortization of Electric Plant Acquisition Adjustments
This account shall be debited or credited, as appropriate, with amounts includible in operating expenses, pursuant to approval or order of RUS, for the purpose of providing for the extinguishment of the amount in Account 114, Electric Plant Acquisition Adjustments.
407Amortization of Property Losses, Unrecovered Plant and Recovery Study Costs
This account shall be charged with amounts credited to Account 182.1, Extraordinary Property Losses, when RUS has authorized the amount in the latter account to be amortized by charges to electric operations.
407.3Regulatory Debits
This account shall be debited, when appropriate, with the amounts credited to Account 254, Other Regulatory Liabilities, to record regulatory liabilities imposed on the utility by the ratemaking actions of regulatory agencies. This account shall also be debited, when appropriate, with the amounts credited to Account 182.3, Other Regulatory Assets, concurrent with the recovery of such amounts in rates.
407.4Regulatory Credits
This account shall be credited, when appropriate, with the amounts debited to Account 182.3, Other Regulatory Assets, to establish regulatory assets. This account shall also be credited, when appropriate, with the amounts debited to Account 254, Other Regulatory Liabilities, concurrent with the return of such amounts to customers through rates.
408Taxes Other Than Income Taxes
A. This account shall include the amounts of ad valorem, gross revenue, or gross receipts taxes, state unemployment insurance, franchise taxes, Federal excise taxes, social security taxes, and all other taxes assessed by Federal, state, county, municipal, or other local governmental authorities, except income taxes.
B. These accounts shall be charged in each accounting period with the amounts of taxes which are applicable thereto, with concurrent credits to Account 236, Taxes Accrued, or Account 165, Prepayments, as appropriate. When it is not possible to determine the exact amounts of taxes, the amounts shall be estimated and adjustments made in current accruals as the actual tax levies become known.
C. The charges to these accounts shall be made or supported so as to show the amount of each tax and the basis upon which each charge is made. In the case of a utility rendering more than one utility service, taxes of the kind includible in these accounts shall be assigned directly to the utility department the operation of which gave rise to the tax, in so far as practicable. Where the tax is not attributable to a specific utility department, it shall be distributed among the utility departments or nonutility operations on an equitable basis after appropriate study to determine such basis.
D. Account 408 shall be subaccounted as follows:
408.1Taxes—Property
408.2Taxes—U.S. Social Security—Unemployment
408.3Taxes—U.S. Social Security—F.I.C.A.
408.4Taxes—State Social Security—Unemployment
408.5Taxes—State Sales—Consumers
408.6Taxes—Gross Revenue or Gross Receipts Tax
408.7Taxes—Other
409 [Reserved]
Special Instructions
Accounts 409.1, 409.2, and 409.3
A. These accounts shall include the amount of local, state, and Federal income taxes on income properly accruable during the period covered by the income statement to meet the actual liability for such taxes. Concurrent credits for the tax accruals shall be made to Account 236, Taxes Accrued, and as the exact amounts of taxes become known, the current tax accruals shall be adjusted by charges or credits to these accounts.
B. The accruals for income taxes shall be apportioned among utility departments and to Other Income and Deductions so that, as nearly as practicable, each tax shall be included in the expenses of the utility department or Other Income and Deductions, the income from which gave rise to the tax. The tax effects relating to interest charges shall be allocated between utility and nonutility operations. The basis for this allocation shall be the ratio of net investment in utility plant to net investment in nonutility plant.
409.1Income Taxes, Utility Operating Income
This account shall include the amount of those local, state, and Federal income taxes which relate to utility operating income. This account shall be maintained so as to allow ready identification of tax effects (both positive and negative) relating to Utility Operating Income (by department), Utility Plant Leased to Others, and Other Utility Operating Income.
409.2Income Taxes, Other Income and Deductions
This account shall include the amount of those local, state, and Federal income taxes (both positive and negative), which relate to Other Income and Deductions.
409.3Income Taxes, Extraordinary Items
This account shall include the amount of those local, state, and Federal income taxes (both positive and negative), which relate to Extraordinary Items.
410 [Reserved]
Special Instructions
Accounts 410.1, 410.2, 411.1, and 411.2
A. Accounts 410.1 and 410.2 shall be debited, and Accumulated Deferred Income Taxes, shall be credited, with amounts equal to any current deferrals of taxes on income or any allocations of deferred taxes originating in prior periods, as provided by the texts of Accounts 190, 281, 282, and 283. There shall not be netted against entries required to be made to these accounts any credit amounts appropriately includible in Account 411.1 or Account 411.2.
B. Accounts 411.1 or 411.2 shall be credited, and Accumulated Deferred Income Taxes, shall be debited, with amounts equal to any allocations of deferred taxes originating in prior periods or any current deferrals of taxes on income, as provided by the texts of Accounts 190, 281, 282, and 283. There shall not be netted against entries required to be made to these accounts any debit amounts appropriately includible in Account 410.1 or Account 410.2.
410.1Provision for Deferred Income Taxes, Utility Operating Income
This account shall include the amounts of those deferrals of taxes and allocations of deferred taxes which relate to Utility Operating Income (by department).
410.2Provision for Deferred Income Taxes, Other Income and Deductions
This account shall include the amounts of those deferrals of taxes and allocations of deferred taxes which relate to Other Income and Deductions.
411 [Reserved]
411.1Provision for Deferred Income Taxes—Credit, Utility Operating Income
This account shall include the amounts of those allocations of deferred taxes and deferrals of taxes, credit, which relate to Utility Operating Income (by department).
411.2Provision for Deferred Income Taxes—Credit, Other Income and Deductions
This account shall include the amounts of those allocations of deferred taxes and deferrals of taxes, credit, which relate to Other Income and Deductions.
411.3 [Reserved]
Special Instructions
Accounts 411.4 and 411.5
A. Account 411.4 shall be debited with the amounts of investment tax credits related to electric utility property that are credited to Account 255, Accumulated Deferred Investment Tax Credits, by companies which do not apply the entire amount of the benefits of the investment credit as a reduction of the overall income tax expense in the year in which such credit is realized. (See Account 255).
B. Account 411.4 shall be credited with the amounts debited to Account 255 for proportionate amounts of tax credit deferrals allocated over the average useful life of electric utility property to which the tax credits relate or such lesser period of time as may be adopted and consistently followed by the company.
C. Account 411.5 shall be debited and credited as directed in paragraphs A and B, for investment tax credits related to nonutility property.
411.4Investment Tax Credit Adjustments, Utility Operations
This account shall include the amount of those investment tax credit adjustments related to property used in Utility Operations (by department).
411.5Investment Tax Credit Adjustments, Nonutility Operations
This account shall include the amount of those investment tax credit adjustments related to property used in Nonutility Operations.
411.6Gains from Disposition of Utility Plant
A. This account shall include, as approved by RUS, amounts relating to gains from the disposition of future use utility plant including amounts which were previously recorded in and transferred from Account 105, Electric Plant Held for Future Use, under the Provisions of Paragraphs B, C, and D thereof. Income taxes relating to gains recorded in this account shall be recorded in Account 409.1, Income Taxes, Utility Operating Income.
B. The utility shall record in this account gains resulting from the settlement of asset retirement obligations related to utility plant in accordance with the accounting prescribed in Sec. 1767.15(y).
411.7Losses from Disposition of Utility Plant
A. This account shall include, as approved by RUS, amounts relating to losses from the disposition of future use utility plant including amounts which were previously recorded in and transferred from Account 105, Electric Plant Held for Future Use, under the provisions of Paragraphs B, C, and D thereof. Income taxes relating to losses recorded in this account shall be recorded in Account 409.1, Income Taxes, Utility Operating Income.
B. The utility shall record in this account losses resulting from the settlement of asset retirement obligations related to utility plant in accordance with the accounting prescribed in Sec. 1767.15(y).
411.8Gains from Disposition of Allowances
This account shall be credited with the gain on the sale, exchange, or other disposition of allowances in accordance with § 1767.15 (u)(8). Income taxes relating to gains recorded in this account shall be recorded in Account 409.1, Income Taxes, Utility Operating Income.
411.9Losses from Disposition of Allowances
This account shall be debited with the loss on the sale, exchange, or other disposition of allowances in accordance with § 1767.15 (u)(8). Income taxes relating to losses recorded in this account shall be recorded in Account 409.1, Income Taxes, Utility Operating Income.
411.10Accretion Expense
This account shall be charged for accretion expense on the liabilities associated with asset retirement obligations included in Account 230, Asset Retirement Obligations, relating to electric utility plant.
412Revenues from Electric Plant Leased to Others
This account shall include revenues from electric property constituting a distinct operating unit or system leased by the utility to others, and which property is properly includible in Account 104, Electric Plant Leased to Others.
413Expenses of Electric Plant Leased to Others
A. This account shall include expenses from electric property constituting a distinct operating unit or system leased by the utility to others, and which property is properly includible in Account 104, Electric Plant Leased to Others.
B. The detail of expenses shall be kept or supported so as to show separately the following:
1. Operation.
2. Maintenance.
3. Depreciation.
4. Amortization.
414Other Utility Operating Income
A. This account shall include the revenues received and expenses incurred in connection with the operations of utility plant, the book cost of which is included in Account 118, Other Utility Plant.
B. The expenses shall include every element of cost incurred in such operations, including depreciation, rents, and insurance.