Subchapter D. ACCOUNTS AND RECORDS

§ 57.41. Classification of electric public utilities.

 For accounting and reporting purposes, electric public utilities are classified as follows:

   (1)  Class A. Public utilities having annual electric operating revenues of $2.5 million or more.

   (2)  Class B. Public utilities having annual electric operating revenues of $1 million or more but less than $2.5 million.

   (3)  Class C. Public utilities having annual electric operating revenues of $150,000 or more but less than $1,000,000.

   (4)  Class D. Public utilities having annual electric operating revenues of $25,000 or more but less than $150,000.

 (a)  Each Class A and Class B electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)’’ of the Federal Energy Regulatory Commission.

 (b)  Each Class C electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class C)’’ of the Federal Energy Regulatory Commission.

 (c)  Each Class D electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class D)’’ of the Federal Energy Regulatory Commission.

   The provisions of this §  57.42 issued under Public Utility Code,66 Pa.C.S. § §  331, 501, 504 and 1501.

   The provisions of this §  57.42 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131. Immediately preceding text appears at serial pages (78456) to (78457).

   Federal Energy Regulatory Commission

   Although a public utility is required to keep its accounts in conformity with the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC), there is no evidence that the regulations governing the FERC were inextricably tied to or wholly incorporated into the Tax Reform Code (72 P. S. §  8101 et seq.). To the contrary, the FERC’s authority over state matters has been specifically limited such that federal regulation only extends to those matters which are not subject to regulation by the states. Thus, taxation on the ‘‘sales of electric energy’’ was governed by the Tax Reform Code and accordingly the taxability of gross receipts from residential and nonresidential late charges was not governed by the FERC regulations. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).

   Gross Receipts

   The Federal accounting procedure which the Pennsylvania Code requires the electric utility to follow does not control the court’s interpretation of the Pennsylvania Tax Reform Code; thus, the gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as do gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Board of Finance and Revenue, 717 A.2d 504 (Pa. 1998).

   The gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).

 Revenues, costs and expenses pertaining to merchandising, jobbing and contract work shall be recorded appropriately in accounts 914 and 915 or accounts 592 and 593 in the uniform accounting system prescribed in §  57.42 (relating to systems of accounts prescribed).

 A public utility having annual electric operating revenues of $25,000 or more shall, in its accounting for plant retirements, conform to the ‘‘Units of Property for Use in Accounting for Additions and Retirements of Electric Plant’’ of the Federal Energy Regulatory Commission.

   The provisions of this §  57.44 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504 and 1501.

 Each electric utility shall keep and preserve its records in conformity with the provisions applicable to it in the most recent publication of the National Association of Regulatory Utility Commissioners, entitled ‘‘Regulations to Govern the Preservation of Records of Electric Gas and Water Utilities, except as follows when the following retention periods apply:

   The provisions of this §  57.45 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504 and 1501; amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—506, 1301 and 1501.

 (a)  A public utility having annual electric operating revenues of $25,000 or more shall maintain a continuing property record of its electric plant, the cost of which is recorded in accounts 101, 102, 103, 104, and 105 in the uniform accounting system prescribed in §  57.42 (relating to systems of accounts prescribed).

 (b)  An outline of the plan of the company for the establishment and maintenance of its continuing property record shall be submitted to the Commission for approval. Major changes in the plan shall also be submitted to the Commission.

 (c)  The continuing property record shall contain the detailed description and classification of property record units as will provide all of the following:

   (1)  An inventory of plant by property record units which may be readily checked for proof of existence.

   (2)  The association of costs with the units, to assure accurate retirement accounting.

   (3)  The dates of installation and removal of property record units, to provide age and life data for use in depreciation studies.

 (d)  The continuing property record, or records supplemental to it, shall include information as to the kind, character, size, quantity, location, year of placement and retirement, percentage of ownership and original cost of electric plant.

 (e)  Plants comprising a large number of similar units, such as poles, wire, meters and line transformers, may be grouped, and the average cost used for retirement accounting. Grouping should be by years of construction within one cost-keeping area. The entire system may be considered as one cost-keeping area unless otherwise required for regulatory purposes. If it is impracticable to account for construction by years, the public utility may, with Commission approval, cost certain items by bands of years or by average costs for all years. The grouping does not relieve the utility from its requirements to provide age and life data and to maintain location records for such plant.

 Under 66 Pa.C.S. § §  504 and 3301 (relating to reports by public utilities; and civil penalties for violations), the Commission may require a public utility to file, and invoke penalties for failure to file, certain reports. In this regard, the following apply:

   (1)  Unless prior permission to do otherwise is granted, a public utility, other than transportation, subject to the jurisdiction of the Commission, shall file annual financial reports with the Commission by April 30 immediately following the reporting year, for reports based upon the calendar year; or by July 31 immediately following, for reports permitted to be based upon the fiscal year ending May 31. A request for an extension of time for filing an annual report shall be submitted to the Commission prior to the filing dates specified in this paragraph.

   (2)  If a public utility, other than transportation, fails to file its annual report in compliance with this section, the public utility may be subject to a penalty as provided under 66 Pa.C.S. §  3301. Continued failure to file annual reports may result in additional penalties.

   The provisions of this §  57.47 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504 and 1501; amended under the Public Utility Code, 66 Pa.C.S. § §  501 and 504.

   The provisions of this §  57.47 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended May 6, 1988, effective May 7, 1988, 18 Pa.B. 2106. Immediately preceding text appears at serial pages (125403) to (125404).

   Gross Receipts

   The gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).

   The provisions of this §  57.49 adopted January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended February 12, 1988, effective February 13, 1988, 18 Pa.B. 662; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (125405) to (125411).

   Construction

   This regulation is an expansion of 66 Pa.C.S. §  524. Pennsylvania Indus. Energy Coalition v. Pennsylvania Public Utility Commission, 653 A.2d 1336 (Pa. Cmwlth.), appeal granted, 665 A.2d 471 (Pa. 1995).

   General Comment

   The provisions of this §  57.50 adopted January 7, 1983, effective January 8, 1983, 13 Pa.B. 131; amended February 12, 1988, effective February 13, 1988, 18 Pa.B. 662; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (125411) to (125426).