Section 415.10  Adoption of 18 CFR 101 by Reference

 

The Illinois Commerce Commission ("Commission") adopts 18 CFR 101, as of November 27, 2013, as its uniform system of accounts for electric utilities, subject to the exceptions set forth in Section 415.200 et seq. of this Part.  No incorporation in this Part includes any later amendment or edition.

 

(Source:  Amended at 38 Ill. Reg. 23806, effective December 2, 2014)

 

Section 415.20  Adoption of 18 CFR 116 by Reference (Repealed)

 

(Source:  Repealed at 23 Ill. Reg. 1346, effective February 1, 1999)

 

Section 415.200  Definitions

 

Definition 7, "Commission," is deleted and replaced by the following: "'Commission' means the Illinois Commerce Commission when not otherwise indicated in the context."  References to "Commission" in relation to "licensed projects" under the provisions of the Federal Power Act shall be construed to refer to the Federal Energy Regulatory Commission.

 

Section 415.210  General Instruction 1

 

General Instruction 1, "Classification of Utilities," is deleted and replaced by the following:

 

"A.       This system of accounts applies to all utilities; provided, however, if in the opinion of any utility having annual operating revenues of less than $10,000,000, this system of accounts should prove to be unduly burdensome, such utility may, with the approval of the Director of Accounting of the Commission, group or combine certain accounts herein in order that the accounting requirements for small utilities may conform more nearly to the nature and volume of business transacted.  Requests to group or combine accounts shall be made in writing, including a statement of the proposed modifications.  In determining whether this system of accounts is unduly burdensome with respect to a utility, the Director of Accounting shall consider, among other things, whether compliance will require additional resources.  The Director of Accounting shall make this determination within six months of receiving the written request.  Having obtained such approval, the utility shall continue to use the system as modified on a consistent basis.

 

B.        For purposes of implementation, all electric utilities subject to Illinois Commerce Commission jurisdiction shall be regarded as "major" utilities.  Account designations, instructions, interpretations, and references to "nonmajor" utilities will not apply.

 

C.        The Commission does not commit itself to the approval or acceptance of any item set out in any account, for the purpose of fixing rates or in determining other matters before the Commission."

 

(Source:  Amended at 22 Ill. Reg. 6647, effective April 1, 1998)

 

Section 415.250  General Instruction 5

 

In General Instruction 5, "Submittal of Questions," the phrase "Director of Accounting of the" is added between "the" and "Commission."

 

(Source:  Amended at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.270  General Instruction 7 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.280  General Instruction 7.1 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.330  General Instruction 12 (Repealed)

 

(Source:  Repealed at 9 Ill. Reg. 4016, effective April 1, 1985)

 

Section 415.340  General Instruction 13

 

In General Instruction 13, "Accounting for Other Departments," the term "proper authority" is deleted and replaced by the phrase "the Commission."

 

Section 415.380  General Instruction 17

 

In General Instruction 17, "Long-Term Debt:  Premium, Discount and Expense, and Gain or Loss on Reacquisition," in Paragraph J, "Alternate method," the phrase "Where a regulatory authority or group of regulatory authorities having prime rate jurisdiction over the utility" is deleted and replaced by the phrase "When the Commission."

 

Section 415.390  General Instruction 18

 

In General Instruction 18, "Comprehensive Interperiod Income Tax Allocation," in Paragraph B, the phrase "regulatory authority having rate jurisdiction over the utility" is deleted and replaced by the word "Commission".

 

Section 415.410  General Instruction 20

 

In General Instruction 20, "Accounting for leases" in paragraph A, second sentence the phrase which reads "is effective January 1, 1984" is replaced with "was effective August 15, 1985". In the third sentence of this paragraph, the phrase "reporting to the FERC," is amended to read "reporting to the Commission."

 

(Source:  Amended at 22 Ill. Reg. 11553, effective August 1, 2007)

 

Section 415.411  General Instruction 21

 

a)         In Paragraph A, the following sentences are added:

 

"Allowances allocated from the Environmental Protection Agency shall be recorded in Account 158.1, Allowance Inventory, and shall not be recorded in Account 124, Other Investments.  An emission allowance acquired for speculative purposes initially recorded in Account 124, Other Investments, may not be later transferred to Account 158.1, Allowance Inventory.  Conversely, an emission allowance not acquired for speculative purposes initially recorded in Account 158.1, Allowance Inventory, may not be later transferred to Account 124, Other Investments."

 

b)         In Paragraph C, the following sentence is added:

 

"The cost of allowances shall include any direct cost of acquisition, such as broker fees or sales commissions, but shall not include indirect expenses such as legal fees to draw up the allowance purchase contract."

 

c)         Paragraph H is deleted and replaced by the following:

 

"H.  Gains on dispositions of allowances, other than allowances held for speculative purposes, shall be accounted for as follows.  First, if there is uncertainty as to the regulatory treatment, the gain shall be deferred in Account 254, Other Regulatory Liabilities, pending resolution of the uncertainty.  Second, if there is certainty as to the existence of a regulatory liability, the gain will be credited to Account 254, with subsequent recognition in Account 411.8, Gains from Disposition of Allowances, which, at the utility's option, can be recognized in equal amounts over a period not to exceed twelve months.  Third, all other gains will be credited to Account 411.8, Gains from Disposition of Allowances.  Losses on disposition of allowances, other than allowances held for speculative purposes, shall be accounted for as follows. Losses that qualify as regulatory assets shall be charged directly to Account 182.3, Other Regulatory Assets.  All other losses shall be charged to Account 411.9, Losses from Disposition of Allowances which, at the utility's option, can be recognized in equal amounts over a period not to exceed twelve months.  (See Definition No. 30.) Gains or losses on disposition of allowances held for speculative purposes shall be recognized in Account 421, Miscellaneous Nonoperating Income, or Account 426.5, Other Deductions, as appropriate.

 

(Source:  Added at 18 Ill. Reg. 17996, effective December 15, 1994)

 

Section 415.420  Electric Plant Instruction 2 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.430  Electric Plant Instruction 3

 

In Electric Plant Instruction 3, "Components of Construction Cost," the changes set forth in the remainder of this Section are made.

 

a)         In Paragraph (17)(b), the words "Federal Energy Regulatory" are added between "the" and "Commission's".

 

b)         The following is added at the end of Paragraph (17)(b):

 

            "If the balance for S (Short-term debt balances) exceeds the balance for W (Average balance in construction work in progress plus nuclear fuel in process of refinement, conversion, enrichment and fabrication), the maximum total AFUDC rate to be utilized will be the weighted average short-term debt rate.  In instances where this occurs, the entire credit for AFUDC will be recorded in Account 432, Allowance for borrowed funds used during construction – credit."

 

c)         The following is added as Paragraph (17)(c):

 

            "(c)  All deviations from the AFUDC formula shown in Electric Plant Instruction 3(17)(a) above must have approval from the Commission before implementation.  In determining whether to approve such deviations, the Commission will consider the degree to which current securities issues have changed the embedded cost included in the annual computation provided in the formula."

 

(Source:  Amended at 28 Ill. Reg. 334, effective December 31, 2003)

 

Section 415.450  Electric Plant Instruction 5 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.470  Electric Plant Instruction 7

 

In Electric Plant Instruction 7, "Land and Land Rights," in Paragraph E, the phrase "411.6, Gains from Disposition of Utility Plant, or 411.7, Losses from Disposition of Utility Plant when such property has been recorded in Account 105, Electric Plant Held for Future Use, otherwise to account" is deleted.

 

Section 415.500  Electric Plant Instruction 10

 

In Electric Plant Instruction 10, "Additions and Retirements of Electric Plant," in Paragraph E, the phrase "411.6, Gains from Disposition of Utility Plant, or 411.7, Losses from Disposition of Utility Plant when the property has been recorded in Account 105, Electric Plant Held for Future Use, otherwise to accounts" is deleted.

 

Section 415.940  Income Chart of Accounts

 

In the Income Chart of Accounts, Account 426.1, "Donations," is deleted.

 

Section 415.970  Operation and Maintenance Expense Chart of Accounts

 

In the Operation and Maintenance Expense Chart of Accounts, Account 914 and the caption "Revenues from merchandising, jobbing and contract work" are added, and Account 915 and the caption "Cost and expenses of merchandising, jobbing and contract work" are added.

 

Section 415.1020  Account 102 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.1050  Account 105

 

In Account 105, "Electric plant held for future use," changes set forth in the remainder of this Section are made.

 

a)         The last sentence of Paragraph D is deleted, and in the first sentence of Paragraph D, the phrase "411.6 or 411.7, as appropriate, except when determined to be significant by the Commission" is deleted and replaced by the following phrase:  "421.1 or 421.2, as appropriate, except as otherwise authorized or determined by the Commission.  In determining whether to allow such an exception, the Commission shall consider, among other things, the prior rate treatment of the asset involved, the purpose for which the asset is used, and the length of time the asset is held."

 

b)         The following is added as Paragraph F:  "F.  Gains or losses from abandonment shall be recorded in Account 434 or 435 as may be appropriate unless otherwise directed by the Commission.  In determining whether to direct alternate recording, the Commission shall consider, among other things, the history of the land parcel, and the reason for abandonment."

 

c)         Paragraph C is deleted in its entirety.

 

(Source:  Amended at 9 Ill. Reg. 4016, effective April 1, 1985)

 

Section 415.1080  Account 108 (Repealed)

 

(Source:  Repealed at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.2010  Accounts 201, 202, 203, and 204

 

In Account 201, Common Stock Issued, Account 202, Common Stock Subscribed, Account 203, Common Stock Liability for Conversion, and Account 204, Preferred Stock Issued, the following changes are adopted:

 

a)         Identify the NOTE as NOTE A.

 

b)         Adopt the following as NOTE B:

            "Records with respect to this account shall be maintained so as to identify the amount of discount, including underwriting discounts recorded in this account.  The records shall be kept so as to show separately the amount of discount on common stock issuances and preferred issuances.  Amounts which have been recovered through rates shall also be identified separately.  The details of this account as to amounts of discount on common and preferred stock issuances and amounts recovered through rates shall be disclosed in the annual report to the Commission (ICC Form 21).  This procedure may be followed for existing common stock expenses which have not been recovered through rates as of December 31, 1993."

 

(Source:  Added at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.2070  Account 207

 

In Account 207, Premium on Capital Stock, add the following as NOTE A:

 

            "Records with respect to this account shall be maintained so as to identify the amount of discount, including underwriting discounts recorded in this account.  The records shall be kept so as to show separately the amount of discount on common stock issuances and preferred issuances.  Amounts which have been recovered through rates shall also be identified separately.  The details of this account as to amounts of discount on common and preferred stock issuances and amounts recovered through rates shall be disclosed in the annual report to the Commission (ICC Form 21).  This procedure may be followed for existing common stock expenses which have not been recovered through rates as of December 31, 1993."

 

(Source:  Added at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.2110  Account 211

 

In Account 211, Miscellaneous Paid In Capital, delete the word "all" in the last sentence of the first paragraph.

 

(Source:  Added at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.2140  Account 214

 

In Account 214, Capital Stock Expense, add the following to NOTE B:

            "The utility may elect to delay amortization of common stock expenses until the Commission determines the recoverability of such expenses through rates.  In any case, only those common stock expenses which remain unrecovered through rates shall be recorded in this account.  Common stock expenses, which have been recovered through rates, shall be amortized to Account 211, Miscellaneous Paid-In-Capital.  This procedure may be followed for existing capital stock expenses which have not been recovered through rates as of December 31, 1993."

 

(Source:  Added at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.4118  Account 411.8

 

The following is added to the last sentence in this Section:

            "or in the appropriate deferred tax accounts such as Account 410.1 or 411.1 to recognize IRS tax requirements."

 

(Source:  Added at 18 Ill. Reg. 17996, effective December 15, 1994)

 

Section 415.4119  Account 411.9

 

The following is added to the last sentence in this Section:

            "or in the appropriate deferred tax accounts such as Account 410.1 or 411.1 to recognize IRS tax requirements."

 

(Source:  Added at 18 Ill. Reg. 17996, effective December 15, 1994)

 

Section 415.4160  Account 416

 

In Account 416, "Costs and expenses of merchandising, jobbing and contract work," Note 1 is deleted and replaced by the following:  "NOTE 1: Classification between operating and nonoperating functions will depend upon the nature of the revenues, costs and expenses.  Refer to Accounts 914 and 915 for operating function classification."

 

Section 415.4261  Account 426.1 (Repealed)

 

(Source:  Repealed at 28 Ill. Reg. 334, effective December 31, 2003)

 

Section 415.4390  Account 439

 

Account 439, "Adjustments to retained earnings." The phrase "Director of Accounting of the" is added before "Commission."

 

(Source:  Amended at 18 Ill. Reg. 10692, effective July 1, 1994)

 

Section 415.5180  Account 518

 

In Account 518, "Nuclear fuel expense," the following is added as Paragraph E:  "E.  This account shall also include provisions for storage and disposal of spent nuclear fuel including spent fuel disposal fees."

 

Section 415.9140  Accounts 914 and 915

 

Accounts 914 and 915 are added as set forth in Appendix G, Exhibit A.

 

Section 415.9302  Account 930.2 (Repealed)

 

(Source:  Repealed at 28 Ill. Reg. 334, effective December 31, 2003)

Section 415.APPENDIX G   Operation and Maintenance Expense Accounts

 

Section 415.EXHIBIT A   Accounts 914 and 915

 

914      Revenues from merchandising, jobbing and contract work.

915      Costs and expenses of merchandising, jobbing and contract work.

 

A.        These accounts shall include respectively all revenues derived from the sale of merchandise and jobbing or contract work and all expenses incurred in such activities.

 

B.        Records in support of these accounts shall be so kept as to permit summarization of revenues, costs and expenses by major items.

 

ITEMS

 

Account 914:

 

1.         Revenues from sale of merchandise and from jobbing and contract work.

 

2.         Discounts and allowances made in settlement of bills from merchandise and jobbing work.

 

Account 915:

Labor:

 

1.         Canvassing and demonstrating appliances in homes and other places for the purpose of selling appliances.

 

2.         Demonstrating and selling activities in sales rooms.

 

3.         Installing appliances on customer premises where such work is done only for purchasers of appliances from the utility.

 

4.         Installing pipe, or other property work on a jobbing or contract basis.

 

5.         Preparing advertising materials for appliance sale purposes.

 

6.         Receiving and handling customer orders for merchandise for jobbing services.

 

7.         Cleaning and tidying sales rooms.

 

8.         Maintaining display counters and other equipment used in merchandising.

 

9.         Arranging merchandise in sales rooms and decorating display windows.

 

10.          Reconditioning repossessed appliances.

 

11.          Bookkeeping and other clerical work in connection with merchandise and jobbing activities.

 

12.          Supervising merchandising and jobbing operations.

 

Materials and Expenses:

 

13.          Advertising in newspapers, periodicals, radio, television, etc.

 

14.          Cost of merchandise sold and of materials used in jobbing work.

 

15.          Stores expenses on merchandise and jobbing stocks.

 

16.          Fees and expenses of advertising and commercial artists' agencies.

 

17.          Printing booklets, dodgers, and other advertising data.

 

18.          Premiums given as inducement to buy appliances.

 

19.          Light, heat, and power.

 

20.          Rent of sales rooms or of equipment.

 

21.          Transportation expense in delivery and pick-up of appliances by utility's facilities or by others.

 

22.          Stationery and office supplies and expenses.

 

23.          Taxes directly assignable to merchandising and jobbing operations.

 

24.          Losses from uncollectible merchandising and jobbing accounts.

 

Note A:  Classification between operating and nonoperating functions will depend upon the nature of the revenues, costs and expenses.  Refer to Accounts 415 and 416 for non-operating function classification.