General Accounting
Embracing Artificial Intelligence in Power and Utilities Accounting and Ratemaking
Embracing AI will make it possible to maximize efficiencies in the accounting and finance departments, open up team members for other tasks, and provide the tools for deeper analysis of customer use of electricity. The depth of AI data analysis will provide additional tools to directly design rates that can modify customer behavior in their electricity use and with choices on how they use electricity.
This article provides a very high-level view of areas used in the accounting and rates functions of power and utilities organizations. The list will undoubtedly grow.
GASB 96 and Cloud Computing - It’s Implementation Time!
The implementation period for GASB 96 Subscription Based Technology Arrangements is here; how exciting! Well, if you do accounting for a living, you know that there’s a certain satisfaction in implementing new standards and changing the face of your financial statements, especially when it is a benefit to your organization.
What is the benefit of using GASB 96 to account for your move to cloud-based software systems? This article walks you through the implementation of GASB 96.
What is FERC Accounting?
FERC 101 - The FERC Chart of Accounts is cool. Bet you don’t hear that often. Seriously, the Federal Energy Regulatory Commission (FERC) Chart of Accounts is the bedrock of electric utility accounting. It can be difficult for new employees to get their arms around it at first. Train employees early in using the FERC Chart of Accounts and your electric cooperative or utility will reap the benefits.
Harmony in Allocating Inter-Departmental Power and Utilities Costs with the Three-Point Formula
Here is the Three-point formula! This article will discuss how using a cost allocation method based strictly on math, and metrics can smooth budget discussions and bring equitable allocations to your business units (doesn't sound exciting, but you'll be glad you read on). Here is the Three-point formula!
Locked into a Municipal Chart of Accounts, an Electric Utility Needed Some Changes to Make it Work for Financial Management
Utilities find that the standard chart of accounts for a municipal general fund doesn’t meet their needs. General fund accounting is based on a flow of funds basis, while utilities use the accrual basis of accounting like a private sector business. The general fund chart of accounts is not a good fit.
Here is one utility’s approach to making the municipal chart of accounts string usable to meet the utility’s reporting and management needs.
Impaired Power Plant Asset With Attached Debt? Use ASC 360 and ASC 980 in Tandem
ASC 360 defines the impairment rules for utility assets under FASB. Asset impairment evaluation is the new way of life for electric utilities. ASC 360 for Impairment Accounting has become a steady part of our utility accounting world.
The electric utility power supply model is rapidly changing, as technological and political forces change the industry power supply framework. These changes require electric utilities to take a close look at asset utilization and the long-term viability of current power supply assets. Impairing assets may be a necessary step.