N.Y. Comp. Codes R. & Regs. tit. 16, § 577.1 – Water plant to be recorded at original cost. | Midpage
§ 577.1
N.Y. Comp. Codes R. & Regs. tit. 16, § 577.1
Water plant to be recorded at original cost.
Department of Public Service
(a) All amounts included in subaccounts 1301-1336 of accounts 1101 to 1104 for water plant (except as otherwise provided in account 1302, Franchises and Consents) shall be the original cost (see definition § 575.1, subd. [a] [8]) of such water plant. (See also paragraphs B and C of account 1106.)
(b) When the term cost is used in the detailed water plant accounts (1301-1336), it shall mean the original cost unless otherwise specified and shall include not only the materials, supplies, labor, services and other items consumed or employed in the construction and installation of water plant, but also the cost of preliminary studies, plans, surveys, engineering, supervision, and general expenses, which contribute directly and immediately to water plant without duplication of such cost.
(c) When the consideration given for property is other than cash, the value of such consideration shall be determined on a cash basis. 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.
(d) 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.
(e) Water plant contributed to the utility or constructed by it from contributions to it of cash or its equivalent shall be charged to the water plant accounts at cost (see § 575.1, subd. [a] [6]) to the utility (i.e., original cost less the portion thereof contributed by, or on behalf of customers). 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.