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File numbers RM21-11-000
Post E-3 | Presentation

FERC today announced plans to modernize its accounting systems to better reflect the rapidly changing resources and technologies in the electric power market.

The Commission has issued a Notice of Proposed Rulemaking (NOPR) that would amend its Uniform System of Accounts (USofA) by creating new accounts for wind, solar and other non-hydro renewable assets, establishing a new functional category for accounts energy storage, codifying the accounting treatment for renewable energy credits and creating new accounts for computer hardware, software and communications equipment. The creation of these separate accounts would provide more accurate information to the Board and the public during the ratemaking process by allowing for more reasonable estimates of plant life and recorded depreciation.

FERC’s USofA facilitates the Commission’s ratemaking responsibilities and consistently captures financial and operational information from regulated entities. Today’s NOPR serves to increase transparency and improve the Commission’s ratemaking processes.

In addition, NOPR is seeking comments on whether the Chief Accountant should issue guidance on hydrogen accounting.

This NOPR is the result of a notice of inquiry dated January 19, 2021 into the proper accounting treatment of renewable energy assets. Comments on today’s NOPR are due 45 days after publication in the Federal Register.