FERC Issues NOPR Seeking to Modernize Accounting Systems

On July 28, 2022, the Federal Energy Regulatory Commission (FERC) announced plans to modernize its accounting system, citing a need to reflect the rapid changes in the market.

FERC’s News Release states: The Commission issued a Notice of Proposed Rulemaking (NOPR) that would modify its Uniform System of Accounts (USofA) by creating new accounts for wind, solar and other non-hydro renewable assets, establishing a new functional class for energy storage accounts, codifying the accounting treatment for renewable energy credits and creating new accounts for computer hardware, software and communication equipment. Creation of these discrete accounts would provide more accurate information to the Commission and the public during the ratemaking process by enabling more reasonable estimates for lifetimes of plant service and their recorded depreciation.

In addition, the NOPR seeks comments on whether accounting for hydrogen is needed.

Comments on the NOPR are due 45 days after publication in the Federal Register.

View FERC’s News Release here: https://www.ferc.gov/news-events/news/ferc-proposes-modernize-accounting-systems-reflect-changing-electricity-markets