N.Y. Comp. Codes R. & Regs. tit. 16, § 563.2 – Water plant to be recorded at original cost.

(a) All amounts included in the accounts for water plant acquired as an operating unit or system, except as otherwise provided in the texts of the intangible plant accounts, shall be stated at the cost incurred by the person who first devoted the property to utility service. All other water plant shall be included in the accounts at the cost incurred by the utility. Where the term “cost” is used in the detailed plant accounts, it shall have the meaning stated in this subdivision. (See also § 560.1, definition [19].)
(b) When the consideration given for property is other than cash, the value of such consideration shall be determined on a cash basis. (See, however, § 560.1, definition [9].) In the entry recording such transaction, the actual consideration shall be described with sufficient particularity to identify it. The utility shall be prepared to furnish the commission the particulars of its determination of the cash value of the consideration if other than cash.
(c) When property is purchased under a plan involving deferred payments, no charge shall be made to the water plant accounts for interest, insurance, or other expenditures occasioned solely by such form of payment.
(d) Contributions for construction purposes made in cash, services or property by any governmental agency, individuals or others shall be credited to the plant account chargeable with the cost of construction. In the case of water plant contributed to the utility, water plant accounts shall be charged only with such expenses, if any, incurred by the utility for which it was not reimbursed, to obtain title, possession or ownership of said plant. Records shall be kept so that the utility can readily furnish information as to the source, purpose, and amount of each contribution, the property to which each contribution relates and the conditions, if any, upon which each contribution was made.
(e) As of the effective date of this uniform system of accounts, the account “Contributions in Aid of Construction” is discontinued. Amounts for contributions in aid of construction still remaining in such account at the effective date of the uniform system of accounts prescribed herein shall be transferred temporarily to an appropriate subdivision of account 253, Other Deferred Credits. The amounts which can be identified with property in water plant accounts and with property which has been retired shall be charged to account 253 and concurrently credited to the water plant accounts or to the accumulated provisions for depreciation, as appropriate. With respect to the remaining amounts of contributions, which cannot be identified or associated with specific water plant property, the utility shall submit a proposal for an account disposition of such remaining balance to the commission for its consideration and determination. Except as provided herein, such amounts representing contributions in aid of construction shall not be transferred to any other account without the approval of the commission.
Note:
Amounts received for construction which are ultimately to be refunded, wholly or in part, shall be credited to account 252, Customers' Advances for Construction. When the amount to be refunded has been finally determined, the balance, if any, remaining in account 252 shall be debited thereto and credited to the water plant accounts to which the cost of the property was charged.