N.Y. Comp. Codes R. & Regs. tit. 16, § 661.14 – Nonregulated activities.

(a) This section describes the accounting treatment of activities classified for accounting purposes as nonregulated. Preemptively deregulated activities and activities (other than incidental activities) never subject to regulation will be classified for accounting purposes as nonregulated. Activities that qualify for incidental treatment under the policies of this commission will be classified for accounting purposes as regulated activities. Activities that have been deregulated by this commission will be classified for accounting purposes as nonregulated activities. Activities that have been deregulated at the interstate level, but not preemptively deregulated, will be classified for accounting purposes as regulated activities until such time as this commission decides otherwise. The treatment of nonregulated activities shall differ depending on the extent of the common or joint use of assets and resources in the provision of both regulated and nonregulated products and services.
(b) When a nonregulated activity does not involve the joint or common use of assets and resources in the provision of both regulated and nonregulated products and services, carriers shall account for these activities on a separate set of books consistent with the instructions set forth in accounts 1406, Nonregulated Investments, and 7990, Nonregulated Net Income. Transfers of assets and sales of products and services between the regulated activity and a nonregulated activity for which a separate set of books is maintained, shall be accounted for in accordance with the rules presented in section 661.16, Transactions with Affiliates. In a separate set of books, carriers may establish whatever detail they deem appropriate beyond what is necessary to provide this commission with the information required in accounts 1406 and 7990.
(c) When a nonregulated activity does involve the common or joint use of assets and resources in the provision of regulated and nonregulated products and services, carriers shall account for these activities within accounts prescribed in this system for telephone company operations. Assets and expenses shall be subdivided in subsidiary records among amounts solely assignable to nonregulated activities, amounts solely assignable to regulated activities, and amounts related to assets and expenses incurred jointly or in common, which will be allocated between regulated and nonregulated activities. Carriers shall submit reports identifying regulated and nonregulated amounts in the manner and at the times prescribed by this commission. Nonregulated revenue items not qualifying for incidental treatment, as provided in section 665.12, shall be recorded in a separate subaccount of account 5280, Nonregulated Operating Revenue.
(d) The following accounts shall be maintained:
Account 1406, Nonregulated Investments
Account 5280, Nonregulated Operating Revenue
Account 7130, Return from Nonregulated Use of Regulated Facilities"
Account 7990, Nonregulated Net Income