AUTHORITY: Implementing Section 5-102 and authorized by Section 10-101 of the Public Utilities Act [220 ILCS 5/5-102 and 10-101].

SOURCE: Adopted at 11 Ill. Reg. 8994, effective May 1, 1987; amended at 22 Ill. Reg. 11722, effective July 1, 1998.

SUBPART A: ADOPTION OF UNIFORM SYSTEM OF ACCOUNTS BY REFERENCE

 

Section 650.10  Adoption of Uniform System of Accounts by Reference

 

The Illinois Commerce Commission ("Commission") adopts the Uniform System of Accounts for Class A Wastewater Utilities (1996) of the National Association of Regulatory Utility Commissioners ("NARUC") as its uniform system of accounts for sewer utilities, subject to the exceptions set forth in Subpart B of this Part.  No incorporation in this Part incorporates any later amendment or edition.

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

SUBPART B: ADDITIONS TO AND DELETIONS FROM NARUC UNIFORM SYSTEM OF ACCOUNTS

 

Section 650.100  Accounting Instruction 1

 

Accounting Instruction 1, "General – Classification of Utilities," is deleted and replaced by the following:

 

"A.       For the purpose of applying the system of accounts prescribed by the Commission, sewer utilities are divided into two classes, as follows:

 

Class A – Utilities having annual sewer operating revenues of $1,000,000 or more.

 

Class B – Utilities having annual sewer operating revenues of less than $1,000,000.

 

B.        This system of accounts applies to Class A utilities.  Class B utilities shall keep all the accounts of this system of accounts applicable to their affairs.  Class B utilities may, however, keep accounts for operating revenues and operating expenses under the accounts of the condensed classifications provided by this Part.  (See Accounting Instruction 40.)

 

C.        The class to which any utility belongs shall originally be determined by the average of its annual sewer operating revenue for the last three consecutive years.  Subsequent changes in classification shall be made when the annual sewer operating revenues for each of the three immediately preceding years shall exceed $1,000,000 on a stand alone basis of the annual water and sewer operating revenues.

 

D.        Class B utilities desiring more detailed accounting may adopt the accounts prescribed for Class A utilities.  Class B utilities are not required to comply with more detailed accounts than what otherwise may be either case.

 

E.         The terms "wastewater" and "sewer" refer to the same utility service and can be used interchangeably within this system of accounts."

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.105  Accounting Instruction 2

 

The following is added to Accounting Instruction 2, "General – Records":

 

"G.       The Commission does not commit itself to the approval or acceptance of any item set out in any account for the purpose of fixing rates or in determining other matters before the Commission, such as security issues, original cost determinations, or contract approvals."

 

Section 650.110  Accounting Instruction 13

 

Accounting Instruction 13, "General – Records for Each Plant," shall have the following paragraph added:

 

            "The term 'plant' as here used means each collection plant, system, pumping plant, and treatment and disposal plant in each city or village, or such other operating areas as certified by the Commission."

 

Section 650.115  Accounting Instruction 18

 

In paragraph D of Accounting Instruction 18, the clause "For contributed utility plant, the accumulated depreciation or amortization account shall be charged" is replaced by "For contributed utility plant, the accumulated depreciation or amortization account shall be credited."

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.120  Accounting Instruction 19

 

a)         The Note in Item 3 of Accounting Instruction 19, Utility Plant – Components of Construction Cost, is revised to state:

            "Note: - The cost of individual items of equipment of small value or of short life, including portable tools and implements, shall not be charged to utility plant accounts unless the correctness of the accounting therefor is verified by current inventories.  The cost shall be charged to the appropriate operating expense or clearing accounts, according to the use of such items, or, if such items are consumed directly in construction work, the cost shall be included as part of the cost of the construction unit."

 

b)         In Accounting Instruction 19, "Utility Plant – Components of Construction Cost," Item 17 is deleted (except for the note) and replaced with the following:

 

            " 'Allowance for funds used during construction' ('AFUDC') includes the net cost for the period of construction of borrowed funds used for construction purposes and a reasonable rate on other funds when so used, not to exceed allowances computed in accordance with the formula prescribed in paragraph (a).  No AFUDC charges shall be included in these accounts upon expenditures for construction projects that have been abandoned.

 

1)         The formula and elements for the computation of AFUDC shall be:

 

A(i) = s(S/W) + d(D/(D + P + C)) (1 - S/W)

 

            A(e) = [1 - S/W] [p(P/(D + P + C)) + c (C/(D + P + C))]

 

A(1)	=	Gross allowance for borrowed funds used during construction rate
A(e)	=	Allowance for other funds used during construction rate
S	=	Average short term debt
s	=	Short-term debt interest rate
D	=	Short-term debt interest rate
d	=	Long-term debt interest rate
P	=	Preferred stock
p	=	Preferred stock cost rate
C	=	Common equity
p	=	Common equity cost rate
W	=	Average balance in construction work in progress

 

2)         The rates shall be determined annually except that the rates may be adjusted for current year security issues which affect the weighted average of long-term debt and/or preferred stock or when the return on equity awarded a current rate case exceeds the computational return on equity. The balances for long-term debt, preferred stock, and common equity shall be the actual book balances as of the end of the prior year.  The cost rates for long-term debt and preferred stock shall be the weighted average cost.  The cost rate for common equity shall be the rate granted common equity in the last rate proceeding before the Commission.  If such cost rate is not available, the average rate actually earned during the preceding three years shall be used.  The short-term debt balances and related cost and the average balance for construction work in progress shall be estimated for the current year with appropriate adjustments as actual data become available."

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.125  Accounting Instruction 21

 

a)         In Paragraph B(5) of Accounting Instruction 21, "Utility Plant - Purchased or Sold," delete "according to the regulatory treatment of the Commission."  (See also Accounting Instruction 39(B)(1), paragraph 4, for adjustment to Account 108, "Accumulated Depreciation," if Accounting Instruction 39(B)(2) is applicable.)

 

b)         In Paragraph D of Accounting Instruction 21, add "for approval based on compliance with this Part" to the end of the paragraph.

 

Section 650.130  Accounting Instruction 22

 

In Accounting Instruction 22, "Utility Plant - Accounting for Capital and Operating Leases," delete Paragraph B and replace with the following:

 

"B.       If the amount of the lease is material, then it will be recorded as a capital lease or as an operating lease as may be applicable.  Materiality is defined as the magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement."

 

Section 650.133  Accounting Instruction 26

 

Paragraph B of Accounting Instruction 26 is modified to state as follows:

 

            "Exclude from equipment accounts hand and other portable tools, which are likely to be lost or stolen or which have a relatively small value or short life, unless the correctness of the accounting therefor as utility plant is verified by current inventories. Special tools acquired and included in the purchase price of  equipment shall be included in the appropriate plant account.  Portable drills and similar tool equipment when used in connection with the operation and maintenance of a particular plant or department, such as pumping, transmission and distribution, etc., or in "stores", shall be charged to the plant account appropriate for their use."

 

(Source:  Added at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.135  Accounting Instruction 29

 

In Paragraph B of Accounting Instruction 29, "Utility Plant – Transfers of Property," delete the phrase "market value" and replace with "net book cost."

 

Section 650.140  Accounting Instruction 30

 

Paragraph C of Accounting Instruction 30, "Utility Plant – Common Plant shall be restated as follows:

 

            "The utility shall be prepared to show at any time by utility plant accounts (351 to 398) the following:

 

a)         the book cost of common utility plant,

 

b)         the allocation of such cost to the respective departments using the common utility plant, and

 

c)         the basis of the allocation."

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.150  Accounting Instruction 33

 

a)         Delete Paragraphs A and B of Accounting Instruction 33, "Operating Income – Depreciation Expense."

 

b)         Relabel Paragraph C as A, and replace "When the straight-line method is used, the" with "Depreciation."

 

c)         Relabel Paragraph D as B, and add "(See Accounting Instruction 39.)" at the end of the paragraph.

 

Section 650.155  Accounting Instruction 34

 

a)         In Paragraph C(1) of Accounting Instruction 34, "Operating Income - Income Taxes," delete "Certain regulatory bodies have required" and replace with "The Commission requires" in the first sentence.  In the second sentence of Paragraph C(1), delete "They have" and replace with "It has."

 

b)         In Paragraph C(2) of Accounting Instruction 34, delete the second sentence.

 

Section 650.160  Accounting Instruction – Example

 

Delete the material in the Accounting Instructions labeled "EXAMPLE" following Accounting Instruction 34 and preceding Accounting Instruction 35.

 

Section 650.165  Accounting Instruction 37

 

From Paragraph A of Accounting Instruction 37, "Operating Income-Operation and Maintenance Expense Account Matrix," delete "and B" in the first sentence and "(page 138)" in the second sentence.

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.170  Accounting Instruction 40

 

a)         Class A Utilities shall maintain the accounts listed in subsections (a)(1) through (a)(8) of this Section.

 

1)         Utility Operating Accounts

Account No.

 

400	Operating Revenues
401	Operating Expenses
403	Depreciation Expenses
406	Amortization of Utility Plant Acquisition Adjustments
407	Amortization Expense
407.1	Amortization of Limited Term Plant
407.2	Amortization of Property Losses
407.3	Amortization of Other Utility Plant
407.4	Amortization of Regulatory Assets
407.5	Amortization of Regulatory Liabilities
408	Taxes Other Than Income
408.10	Utility Regulatory Assessment Fees
408.11	Property Taxes
408.12	Payroll Taxes
408.13	Other Taxes and Licenses
409	Income Taxes
409.10	Federal Income Taxes, Utility Operating Income
409.11	State Income Taxes, Utility Operating Income
409.12	Local Income Taxes, Utility Operating Income
410	Provision for Deferred Income Taxes
410.10	Deferred Federal Income Taxes
410.11	Deferred State Income Taxes
410.12	Deferred Local Income Taxes
411	Provision for Deferred Income Taxes – Credit
411.10	Provision for Deferred Income Taxes – Credit, Utility Operating Income
412	Investment Tax Credits
412.10	Investment Tax Credits Deferred to Future Periods, Utility Operations
412.11	Investment Tax Credits Restored to Operating Income, Utility Operations
413	Income From Utility Plant Leased to Others
414	Gains (Losses) From Disposition of Utility Property

 

2)         Other Income and Deductions

 

415	Revenues from Merchandising, Jobbing and Contract Work
416	Costs and Expenses of Merchandising, Jobbing and Contract Work
419	Interest and Dividend Income
420	Allowance for Funds Used During Construction
421	Nonutility Income
426	Miscellaneous Nonutility Expenses

 

3)         Taxes Applicable to Other Income and Deductions

 

408	Taxes Other Than Income
408.20	Taxes
	Deductions
409	Income Taxes
409.20	Income Taxes, Other Income and Deductions
410	Provision for Deferred Income Taxes
410.20	Provision for Deferred Income Taxes Other Income and Deductions
411	Provision for Deferred Income Taxes – Credit
411.20	Provision for Deferred Income Taxes – Credit, Other Income and Deductions
412	Investment Tax Credit
412.20	Investment Tax Credits – Net, Nonutility Operations
412.30	Investment Tax Credits Restored to Non-operating Income, Utility Operations

 

4)         Interest Expense

 

427	Interest Expense
427.1	Interest on Debt to Affiliated Interests
427.2	Interest on Short-Term Debt
427.3	Interest on Long-Term Debt
427.4	Interest on Customer Deposits
427.5	Interest – Other
428	Amortization of Debt Discount and Expense
429	Amortization of Premium on Debt

 

5)         Extraordinary Items

 

433	Extraordinary Income
434	Extraordinary Deductions
409.30	Income Taxes, Extraordinary Items

 

6)         Retained Earnings Accounts

 

435	Balance Transferred From Income
436	Appropriations of Retained Earnings
437	Dividends Declared – Preferred Stock
438	Dividends Declared – Common Stock
439	Adjustments to Retained Earnings

 

7)         Sewer Operation Revenue Accounts

 

A)        Sewer Revenues

 

521	Flat Rate Revenues
521.1	Residential Revenues
521.2	Commercial Revenues
521.3	Industrial Revenues
521.4	Revenue from Public Authorities
521.5	Multiple Family Dwelling Revenues
521.6	Other Revenues
522	Measured Revenues
522.1	Residential Revenues
522.2	Commercial Revenues
522.3	Industrial Revenues
522.4	Revenues from Public Authorities
522.5	Multiple Family Dwelling Revenues
523	Revenues from Public Authorities
524	Revenues from Other Systems
525	Interdepartmental Revenues

 

B)        Other Sewer Revenues

 

530	Guaranteed Revenues
531	Sale of Sludge
532	Forfeited Discounts
534	Rents from Sewer Property
535	Interdepartmental Rents
536	Other Sewer Revenues

 

C)        Reclaimed Water Sales

 

540	Flat Rate Reuse Revenues
540.1	Residential Reuse Revenues
540.2	Commercial Reuse Revenues
540.3	Industrial Reuse Revenues
540.4	Reuse Revenues from Public Authorities
540.5	Other Revenues
541	Measured Reuse Revenues
541.1	Residential Reuse Revenues
541.2	Commercial Reuse Revenues
541.3	Industrial Reuse Revenues
541.4	Reuse Revenues from Public Utilities
544	Reuse Revenues from Other Systems

 

8)         Sewer Operation and Maintenance Expense Accounts

 

701	Salaries and wages – Employees
703	Salaries and wages – Officers, Directors and Majority Stockholders
704	Employee Pensions and Benefits
710	Purchased Sewage Treatment
711	Sludge Removal Expense
715	Purchased Power
716	Fuel for Power Production
718	Chemicals
720	Materials and Supplies
731	Contractual Services – Engineering
732	Contractual Services – Accounting
733	Contractual Services – Legal
734	Contractual Services – Management Fees
735	Contractual Services – Testing
736	Contractual Services – Other
741	Rental of Building/Real Property
742	Rental of Equipment
750	Transportation Expense
756	Insurance – Vehicle
757	Insurance – General Liability
758	Insurance – Workman's Compensation
759	Insurance – Other
760	Advertising Expense
766	Regulatory Commission Expenses – Amortization of Rate Case Expense
767	Regulatory Commission Expenses – Other
770	Bad Debt – Expense
775	Miscellaneous Expenses

 

b)         Class B utilities shall maintain the accounts listed in subsections (b)(1) through (b)(8) of this Section.

 

1)         Utility Operating Accounts

            Account No.

 

400	Operating Revenues
401	Operating Expenses
403	Depreciation Expenses
406	Amortization of Utility Plant Acquisition Adjustments
407	Amortization Expense
407.1	Amortization of Limited Term Plant
407.2	Amortization of Property Losses
407.3	Amortization of Other Utility Plant
407.4	Amortization of Regulatory Assets
407.5	Amortization of Regulatory Liabilities
408	Taxes Other Than Income
409	Income Taxes
410	Provision for Deferred Income Taxes
411	Provision for Deferred Income Taxes – Credit
412	Investment Tax Credits
413	Income From Utility Plant Leased to Others
414	Gains (Losses) From Disposition of Utility Property

 

2)         Other Income and Deductions

 

415	Revenues from Merchandising, Jobbing and Contract Work
416	Costs and Expenses of Merchandising, Jobbing and Contract Work
419	Interest and Dividend Income
420	Allowance for Funds Used During Construction
421	Nonutility Income
426	Miscellaneous Nonutility Expenses

 

3)         Taxes Applicable to Other Income and Deductions

 

408	Taxes Other Than Income
409	Income Taxes
410	Provision for Deferred Income Taxes
411	Provision for Deferred Income Taxes – Credit
412	Investment Tax Credits

 

4)         Interest Expense

 

427	Interest Expense
428	Amortization of Debt Discount and Expense
429	Amortization of Premium on Debt

 

5)         Extraordinary Items

 

433	Extraordinary Income
434	Extraordinary Deduction
409.30	Income Taxes, Extraordinary Items

 

6)         Retained Earnings Accounts

 

435	Balance Transferred From Income
436	Appropriations of Retained Earnings
437	Dividends Declared – Preferred Stock
438	Dividends Declared – Common Stock
439	Adjustments to Retained Earnings

 

7)         Sewer Operation Revenue Accounts

 

A)        Sewer Revenue

 

521	Flat Rate Revenue – General Customers
522	Measured Revenues – General Customers
523	Revenues from Public Authorities
524	Revenues from Other Systems
525	Interdepartmental Revenues

 

B)        Other Sewer Revenues

 

530	Guaranteed Revenues
531	Sale of Sludge
532	Forfeited Discounts
534	Rents and Sewer Property
535	Interdepartmental Rents
536	Other Sewer Revenues

 

C)        Reclaimed Water Sales

 

540	Flat Rate Reuse Revenues
541	Measured Reuse Revenues
544	Reuse Revenues from Other Systems

 

8)         Sewer Operation and Maintenance Expense Accounts

 

701	Salaries and Wages
704	Employee Pensions and Benefits
710	Purchased Sewage Treatment
711	Sludge Removal Expense
715	Purchased Power
716	Fuel for Power Production
718	Chemicals
720	Materials and Supplies
731	Contractual Services
741	Rental of Building/Real Property
742	Rental of Equipment
750	Transportation Expense
756	Insurance
760	Advertising Expense
766	Regulatory Commission Expense
770	Bad Debt Expense
775	Miscellaneous Expenses

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.175  Accounting Instruction 39

 

Add the following material as Accounting Instruction 39, "Transition Rules – Contribution in Aid of Construction":

 

"A.       The transition rules are to govern the accounting for Contributions in Aid of Construction.  They are based on the premise that the integrity of the 'Contribution' account was preserved during the period encompassed by the Commission's ratemaking policy of allowance of depreciation expense as a recoverable operation expense on property which was the contra to the 'Contribution' account.

 

B.        The rules provide for recording the impairment of the 'Contribution' account which occurred subsequent to the change in Commission policy of disallowance of depreciation expense on 'contributed property' for ratemaking purposes.

 

1.         Subsidiary records will be maintained for Account 271, 'Contributions in Aid of Construction' and Account 272, 'Accumulated Amortization of Contributions in Aid of Construction.'

 

            Subsidiary accounts of Account 271 shall segregate the Contributions in Aid of Construction recorded prior to the change in ratemaking policy from amounts recorded subsequent thereto.

 

            The subsidiary accounts of Account 272 shall be maintained to provide a segregation of the accumulated amortization charges which relate to or correlate to the 'Contribution' segregated balances.

 

            The 'pre' and 'post' segregation categories will coincide with the effective date of the first definitive Commission order applicable to the subject utility which applies the ratemaking disallowance policy.

 

2.         Utilities that discontinued recording depreciation expense in their books of account subsequent to its disallowance for ratemaking purposes shall record the impairment of the 'Contribution' account for the period from date of disallowance to December 31, 1986 by debit Account 272, 'Accumulated Amortization of Contributions in Aid of Construction' and credit to the appropriate subaccount of Account 108, 'Accumulated Depreciation.'

 

3.         Utilities that continued to record depreciation expense in their books of account subsequent to its disallowance for ratemaking shall record the impairment of the 'Contribution' account by debit to Account 272, 'Accumulated Amortization of Contributions in Aid of Construction' and credit to Account 439, 'Adjustments to Retained Earnings.'  It shall cover the period from date of disallowance to December 31, 1986.

 

4.         The amortization of the 'Pre' disallowance balance of Account 271 shall continue until it is fully amortized at which time it shall be written off against its related Account 272 balance.

 

5.         Within six months of the effective date of this System of Accounts (83 Ill. Adm. Code 650), each utility shall submit its proposed journal entries for recording the implementation of the transition rules to the Director of Accounting of the Commission to ascertain whether the utility has complied with Accounting Instruction 39.

 

6.         Should an impairment of the 'Contribution' account have occurred prior to the period covered by the transition rules in this Accounting Instruction, the utility shall submit its proposed journal entries to record such impairment accompanied by a complete explanation to the Director of Accounting for acceptance and approval.  The Director of Accounting shall accept and approve the journal entries if an impairment has occurred and if the entries reflect the level of impairment."

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.180  Plant Account Matrix

 

Delete the Account Matrix of the NARUC Uniform System of Accounts and replace it with the material in TABLE A.

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.185  Expense Accounts Matrix

 

Delete the Operation and Maintenance Expense Accounts of the NARUC Uniform System of Accounts and replace it with the material in TABLE B.

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.200  Retirement Units Generally

 

a)         A retirement unit is defined as the smallest item of property which, on replacement, is required to be written out of the plant account. Expressed another way, a retirement unit is an item of property which is not replaced through the maintenance accounts.

 

b)         The adoption of a list of retirement units should not be construed as requiring a classification of utility plant in the accounts corresponding to the list of the retirement units.  The retirement unit is used for the purpose of distinguishing between items replaced through the plant accounts and those replaced through maintenance and can be used in plant accounting regardless of the classification reflected by the plant accounts.  For example, the plant account might show only the total cost of a structure although it may be composed of a number of retirement units.

 

c)         The Retirement Unit Accounts 351 through 398 are to be added to the NARUC Uniform System of Accounts.

 

Section 650.204  General Instructions with Respect to Structures and Equipment

 

a)         With respect to structures and equipment, treat as retirement units any item of property which is readily separable from and separately useful from the larger assembly of which it forms a part and which has a life of several years.  It is, of course, contemplated that consideration will be given to the cost of an item and that certain items otherwise meeting the above distinction but which cost $100 or less would not be considered a retirement unit (see Note at Accounting Instruction 19(3)).

 

b)         Treat, also, as retirement units portions of structures or equipment replaced in cases where the replacement operates to extend the life of the structure or equipment or where itis necessary to record the replacement in the plant accounts in order that the records may, as nearly as practicable, show the cost of the structure or equipment as it actually exists.

 

c)         Wherever appropriate, the retirement of any unit of property in the structures or equipment accounts shall include all costs of associated items which pertain solely to that unit, such as the costs of foundations; supports, ladders, runways, enclosures, guards; driving mechanisms; indicating, recording and measuring devices with their mountings; starting, control, regulating, protective, and safety devices; switchboards; special lighting conduits and wiring; pipes; ducts; spouts; chutes; hoppers; etc.

 

Section 650.205  Retirement Unit Instructions

 

a)         The list of retirement units is representative but not necessarily exhaustive.  The appearance of a retirement unit under an account warrants the inclusion of the unit in the account mentioned only when the function, character, primary purpose, and text of the account also indicates inclusion inasmuch as the same unit frequently appears in more than one list.

 

b)         The omission of an item from the list in an account or its inclusion in a functional system, does not preclude its treatment as a retirement unit if it costs more than $100 and is not an integral part of a larger retirement unit.  The term "integral part" is used in a physical sense rather than a functional sense.  For instance, both the pump and the heat exchanger mounted separately in a vaporizing system will be considered retirement units, as contrasted with a packaged unit where both would be considered an integral part of the package.

 

Section 650.206  List of General Retirement Units

 

a)         In all accounts where they occur, the following shall be considered a retirement unit if costing more than $100 and not an integral part of the retirement unit specifically listed:

 

1)         Piping;

 

2)         Manholes;

 

3)         Motors and engines;

 

4)         Pumps;

 

5)         Collection sewers;

 

6)         Landscaping, grading of land improvements;

 

7)         Foundation for a unit of equipment, when not an integral part of a building and which is not intended to outlast the equipment;

 

8)         Road, walk, parking lot, etc.;

 

9)         Chemical equipment;

 

10)         Sedimentation equipment;

 

11)         Sludge digestion and filtration equipment;

 

12)         Land fill equipment.

 

b)         In Retirement Unit Accounts 351 through 398, the article "a," "an," or "the," as appropriate, should be read in connection with each listed retirement.

 

Section 650.210  Variances

 

a)         The retirement units listed in this Part are prescribed and are to be accounted for in accordance with Accounting Instruction 27.

 

b)         The list of units may be expanded by any sewer utility without authorization from the Commission.

 

c)         If adherence to the list of retirement units contained in this Part would cause a utility undue harddhip, such as the loss of revenue, the utility should file a petition for relief in accordance with the Commission's Rules of Practice, 83 Ill. Adm. Code 200, giving a full disclosure of facts and a suggested modification of the list necessary to avoid the hardship.  The Commission will approve a suggested modification if the economic benefits of the modification outweigh the economic cost and the modification does not preclude required reporting.

 

Section 650.351  Retirement Unit Account 351 Organization

 

a)         Item

 

1)         Actual cost of obtaining certificates authorizing an enterprise to engage in the public utility business.

 

2)         Fees and expenses for incorporation.

 

3)         Fees and expenses for mergers or consolidations.

 

4)         Office expenses incident to organizing the utility.

 

5)         Stock and minute books and corporate seal.

 

b)         This account shall not include any discounts upon securities issued or assumed; nor shall it include any costs incident to negotiating loans, selling bonds or other evidences of debt, or expenses in connection with the authorization, issuance and sale of capital stock.

 

c)         Exclude from this account and include in the appropriate expense account the cost of preparing and filing papers in connection with the extension of the term of incorporation unless the first organization costs have been written off.  Where charges are made to this account for expenses incurred in mergers, consolidations or reorganizations, amounts previously included herein or in similar accounts in the books of the companies concerned shall be excluded from this account.

 

Section 650.352  Retirement Unit Account 352 Franchises

 

Any payments to the federal government, to a state or political subdivision thereof in consideration for franchises, consents, or certificate rights for a specified term of more than one year.

 

Section 650.353  Retirement Unit Account 353 Land and Land Rights

 

a)         Any land or land rights used in connection with sewage collection, pumping, treatment and disposal and general plant operation.

 

b)         List

 

Appraisals prior to closing title

Bulkheads buried, not requiring maintenance or replacement

Condemnation proceedings, including court and counsel costs

Consents and abutting damages, payment for Conveyancers' and notaries' fees

Cost, first, or acquisition including mortgages and other liens assumed (but not subsequent interest thereon)

Cost of dealing with distributees or legatees residing outside of the state or county, such as recording power of attorney, recording will or exemplification of will, recording satisfaction of state tax

Cost of fill to extend bulkhead line over land under water, where riparian rights are held, which is not occasioned by the erection of a structure

Documentary stamps

Fees, commissions, and salaries to brokers, agents and others in connection with the acquisition of the land or land rights

Fees and expenses incurred in the acquisition of rights and grants

Filing satisfaction of mortgage

Labor and expenses in connection with security rights of way, where performed by company employees and company agents

Leases, cost of voiding upon purchase to secure possession of land

Photographs of property at acquisition

Removing, relocating or reconstructing property of others, such as buildings, highways, railroads, bridges, cemeteries, churches, telephone and power lines, etc., in order to acquire possession

Retaining walls unless identified with structures

Sidewalks and curbs constructed by the utility on public property

Special assessments levied by public authorities for public improvements on the basis of benefits for new roads, new bridges, new sewers, new curbing, new pavements and other public improvements, but not taxes levied to provide for the maintenance of such improvements

Surveys in connection with the acquisition, but not amounts paid for topographical surveys and maps where such costs are attributable to structures or plant equipment erected or to be erected or installed on such land

Taxes assumed, accrued to date of transfer of title

Title, examining, clearing, insuring and registering in connection with the acquisition and defending against claims relating to the period prior to the acquisition

 

Section 650.354  Retirement Unit Account 354 Structures and Improvements

 

a)         Any applicable unit of structures and improvements used in connection with sewage collection, pumping, treatment and disposal, and general plant operations.

 

b)         List

 

Architect and engineer plans and specifications including supervision

Boilers, furnaces, piping, wiring, fixtures, and machinery for heating, lighting, signaling, ventilating and air conditioning systems, plumbing, vacuum cleaning systems, incinerator and smoke pipe flues, ect.

Bulkheads, including dredging, riprap fill, piling, decking, concrete fenders, etc., when exposed and subject to maintenance and replacement

Commissions and fees to brokers, agents, architects and others

Conduit (not to be removed) with its contents

Damages to abutting property during construction

Drainage systems

Elevators, cranes, hoists, ect., and the machinery for operating them

Excavation, including shoring, bracing, bridging, refill and disposal of excess excavated material, cofferdams around foundation, pumping water from cofferdam during construction, test borings

Fences and fence curbs (not including protective fences isolating items of equipment which should be charged to the appropriate equipment account)

Fire protection systems when forming a part of a structure

Flagpole

Floor covering (permanently attached)

Foundations and piers for machinery, constructed as a permanent part of a building or other item listed herein

Grading and clearing when directly occasioned by the building of a structure

Intrasite communication system, poles, pole fixtures, wires and cables

Landscaping, laws, shrubbery, etc.

Leases, voiding upon purchase, to secure possession of structures

Lighting fixtures and outside lighting systems

Marquee, permanently attached to building

Painting, first cost

Partitions, including movable

Permanent paving, concrete, brick, flagstone, asphalt, etc., within the property lines

Permits and privileges

Power boards for services to a building

Refrigerating systems for general use

Retaining walls except when identified with land

Roadways

Roofs

Scales, connected to and forming a part of a structure

Sidewalks, culverts, curbs and streets constructed by the utility on its property

Sprinkling systems

Stacks-brick, steel, or concrete when set on foundation forming part of general foundation and steelwork of a building

Steel inspection during construction

Storage facilities constituting a part of a building

Storm doors and windows

Temporary heating during construction (net cost)

Temporary water connection during construction (net cost)

Temporary shanties and other facilities used during construction (net cost)

Topographical maps

Tunnels, intake and discharge when constructed as part of a structure including sluice gates and those constructed to house.

Vaults constructed as part of a building

Watchmen's sheds and clock systems (net cost when used during construction only)

Water and sewer systems, for general use

Water meters and supply system for a building or for general company purposes

Water supply piping, hydrants and wells

Yard surfacing, gravel, conrete, or oil (First cost only)

 

Section 650.360  Retirement unit Account 360 Collection Sewers – Force

 

Piping used to transfer sewage from low elevation to higher elevation.

 

Section 650.361  Retirement Unit Account 361 Collection Sewers – Gravity

 

a)         Items

 

All gravity collecting sewer

Branch

Interceptor

Lampholes

Lateral including service wye

Manholes

Trunk

 

b)         Manholes shall be included as a separate unit of property.

 

Section 650.362  Retirement Unit Account 362 Special Collecting Structures

 

a)         Inverted siphon

 

b)         Any other specially designed structure unusual to sewer systems.

 

Section 650.363  Retirement Unit Account 363 Service to Customers

 

Items

 

Initial disturbance of pavement

Jointing and jointing material

Manhole or clean-out

Municipal inspection and permits

Protection of street openings

Service connection wye

 

Section 650.364  Retirement Unit Account 364 Flow Measuring Devices

 

Items

 

Flow measuring and recording equipment

Initial testing for measuring the quantity of sewage

 

Section 650.365  Retirement Unit Account 365 Flow Measuring Installation

 

Items

 

Floats, connections, flumes, or wires

Special manhole, boxes, or other separate housing

 

Section 650.370  Retirement Unit Account 370 Receiving Wells

 

Items

 

Any chemical feed apparatus and holding basin associated with the receiving well

Well construction (at pumping stations or any other junction points along the collecting system)

 

Section 650.371  Retirement Unit Account 371 Pumping Equipment

 

Items

 

Auxiliary equipment for motors and pumps such as oiling systems, cooling systems, condensers, etc.

Electric power lines and switching

Foundations, frames, and bed plates

Hoist units

Motors or engines

Pumps, including settings, gearing, shafting and belting

Sewage piping within station, including valves

 

Section 650.380  Retirement Unit Account 380 Treatment and Disposal Equipment

 

Items

 

Aeration chambers

Chemical equipment

Imhoff tank

Land fill equipment and appurtenances

Oxidation pond or lagoon

Package mechanical treatment plant

Screen unit

Sedimentation basin

Sedimentation equipment

Sludge digestion equipment

Sludge filtration or dewatering equipment

Sludge system

Trickling filter

 

Section 650.381  Retirement Unit Account 381 Plant Sewers

 

Items

 

Pipe tunnels or galleries

Unit to unit sections of yard piping

Valves and vaults

 

Section 650.382  Retirement Unit Account 382 Outfall Sewer Lines

 

Items

 

            Any part of sewer line carrying effluent from treatment facility to point of discharge

            Headwall or outlet

 

Section 650.389  Retirement Unit Account 389 Other Plant and Miscellaneous Equipment

 

Any item of other intangible, collection system pumping, and treatment and disposal plant not provided for in the foregoing accounts.

 

Section 650.390  Retirement Unit Account 390 Office Furniture and Equipment

 

Each principal item or equipment such as:

 

Adding or calculating machine (including coin counters)

Blueprint machine

Bookcase (complete)

Cabinet

Chair

Checkwriter

Desk

Dictating machine (recording or reproducing)

Electronic data processing equipment

Photostat machine (including letter press)

Rug or removable floor covering

Safe

Sofa or lounge

Table

Typewriter

Wardrobe

 

Section 650.391  Retirement Unit Account 391 Transportation Equipment

 

a)         Each principal item of equipment such as:

 

Airplane

Automobile

Bicycle

Boat

Dray

Electric vehicle

Motorcycle

Repair car or truck

Tractor

Truck

 

b)         Other type of transportation vehicles not specifically listed above.

 

Section 650.392  Retirement Unit Account 392 Store Equipment

 

Items

 

Chain falls

Counters

Cranes (Portable)

Elevating and stacking equipment (portable)

Hoists

Lockers

Scales

Shelving

Storage bins

Trucks, hand and power driven

Wheelbarrows

 

Section 650.393  Retirement Unit Account 393 Tools, Shop and Garage Equipment

 

Items

 

Air compressors

Anvils

Automobile repair shop equipment

Battery charging equipment

Belts, shafts and countershafts

Boilers

Cable pulling equipment

Concrete mixers

Drill presses

Derricks

Electric equipment

Engines

Forges

Furnaces

Foundations and settings specially constructed for and not expected to outlast the equipment for which provided

Gas producers

Gas pumps, oil pumps, and storage tanks

Greasing tools and equipment

Hoists

Ladders

Lathes

Machine tools

Motor driven tools

Motors

Pipe treading and cutting tools

Pneumatic tools

Pumps

Riveters

Smithing equipment

Tool racks

Vises

Welding apparatus

Work benches

 

Section 650.394  Retirement Unit Account 394 Laboratory Equipment

 

a)         Each principal item of equipment such as:

 

Autoclaves

Barometers

Cameras

Centrifuge

Distilling apparatus

Furnaces

Microscopes

Ovens

Pitometers

Rain gauges

Refrigerators

Scales

Sterilizers

Stop watches

Testing machines

Thermometers

Voltmeters

 

b)         Other bacteriological, electric, chemical hydraulic or research equipment not listed in subsection (a).

 

Section 650.395  Retirement Unit Account 395 Power Operated Equipment

 

a)         Items

 

Air Compressor, including driving unit and vehicle

Back filling machines

Boring machines

Bulldozers

Cranes and hoists

Diggers

Engines

Pile drivers

Pipe cleaning machines

Pipe coating or wrapping machines

Tractor – crawler type

Trenches

Other power operated equipment

 

b)         It is intended that this account include only such large units as are generally self-propelled or mounted on moveable equipment.

 

Section 650.396  Retirement Unit Account 396 Communication Equipment

 

Each principal item of equipment such as:

 

Antenna

Booths

Cables

Distribution boards

Extension cords

Gongs

Handsets, manual and dial

Insulators

Intercommunicating sets

Loading coils

Operators desks

Poles and fixtures used wholly for telephone and telegraph wires

Radio transmitting and receiving sets

Remote control equipment and lines

Sending keys

Storage batteries

Switchboards

Teleautograph circuit connections

Telegraph receiving sets

Telephone and telegraph circuits

Testing instruments

Towers

Underground conduit used wholly for telephone or telegraph wires and cable wires

 

Section 650.397  Retirement Unit Account 397 Miscellaneous Equipment

 

a)         Items

 

Electric signs advertising the corporate name or symbol

Hospitals and infirmary equipment

Kitchen equipment

Radios

Recreation equipment

Restaurant equipment

Operator's cottage furnishings

Soda fountains

Other miscellaneous equipment

 

b)         Miscellaneous equipment of the nature above wherever practical shall be included in the utility plant accounts on a functional basis.

 

Section 650.398  Retirement Unit Account 398 Other Tangible Property

 

Any unit of tangible utility plant which is not provided for elsewhere

 

Section 650.1030  Account 103

 

In Account 103, "Property Held for Future Use," add "Director of Accounting" before "Commission" in Paragraph B.

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.1080  Account 108 (Repealed)

 

(Source:  Repealed at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.1081  Account 108.1

 

In Paragraph A(4) of Account 108.1, "Accumlated Depreciation of Utility Plant in Service," delete the phrase "if such amortization is recognized by the Commission."

 

Section 650.1240  Account 124

 

In Account 124, "Utility Investments," delete the phrase "for the purpose of insuring adequate sewer service."

 

Section 650.1410  Account 141

 

In Account 141, "Customer Accounts Receivable," delete Paragraph B.

 

Section 650.2150  Account 215

 

In Account 215, "Unappropriated Retained Earnings," add "(See Accounting Instruction 39)" to the last sentence.

 

Section 650.2180  Account 218

 

a)         In Note B of Account 218, "Proprietary Capital (for proprietorships and partnerships only)," delete the words "earned surplus" and replace with "retained earnings."

 

b)         Add as Note C:  "Amounts payable to the proprietor as just and reasonable compensation for services performed (that level of compensation which would be paid to an equally qualified non-proprietor employee in the same circumstances) shall not be charge to this account but to appropriate operating expense or other accounts."

 

Section 650.2710  Account 271

 

In Account 271, "Contributions in Aid of Construction," add the phrase "(See Accounting Instruction 39)" to the end of Paragraph B.

 

Section 650.2720  Account 272

 

In Paragraph A of Account 272, "Accumulated Amortization of Contributions in Aid of Construction," delete the phrase "if recognized by the Commission" and replace it with "(See Accounting Instruction 39)."

 

Section 650.2830  Account 283

 

In Account 283, "Accumulated Deferred Income Taxes – Other," delete Paragraph E.

 

Section 650.3330  Account 333 (Repealed)

 

(Source:  Repealed at 22 Ill. Reg. 11722, effective July 1, 1998)

 

Section 650.4030  Account 403

 

In Paragraph A of Account 403, "Depreciation Expenses," delete the second sentence.

 

Section 650.4120  Account 412

 

In Account 412, "Investment Tax Credits," delete Paragraph B(1) and replace with the following:

 

            "(1) In amortizing the deferred investment tax credits related to property used in utility operations, the annual proportional amount credited to Account 412, 'Investment Tax Credits,' the utility must use Internal Revenue Code Section 46(f)(2) (26 U.S.C.46(f)(2)) treatment in proportional amortization to be credited to subaccount 412.11, 'Investment Tax Credits Restored to Operating Income, Utility Operations.'"

 

Section 650.4200  Account 420

 

In Account 420, "Allowance for Funds Used During Construction," delete the second sentence, retaining the reference to Accounting Instruction 19).

 

Section 650.4330  Account 433

 

In Account 433, "Extraordinary Income" delete the phrase "Upon approval of the regulatory authority."

 

Section 650.4340  Account 434

 

In Account 434, "Extraordinary Deductions," delete the phrase "Upon approval of the Commission."

 

Section 650.7600  Account 760

 

Delete material in Account 760, "Advertising Expenses," and replace with the following:

 

            "This account shall include the cost of labor, materials used and expenses incurred in advertising designed to promote or retain the use of utility service, except advertising the sale of merchandise by the utility.  The account shall be maintained so that informational and instructional advertising can be readily ascertained.  For expenses related to merchandising, jobbing, and contract work, see Account 416, 'Cost and Expenses of Merchandising, Jobbing, and Contract Work.'"







Section 650.TABLE A   Prescribed Plant Account Matrix

 

		SEWER UTILITY PLANT ACCOUNTS
		.1	.2	.3	.4	.5	.6	.7
		Intangible Plant	Collection Plant	System Pumping Plant	Treatment and Disposal Plant	Reclaimed Water Treatment Plant	Distribution Plant	General Plant
351	Organization	351.1
352	Franchises	352.1					352.6
353	Land and Land Rights		353.2	353.3	353.4	353.5	353.6	353.7
354	Structures and Improvements		354.2	354.3	354.4	354.5	354.6	354.7
355	Power Generation Equipment		355.2	355.3	355.4	355.5	355.6
360	Collection Sewers – Force		360.2
361	Collection Sewers – Gravity		361.2
362	Special Collecting Structures		362.2
363	Services to Customers		363.2
364	Flow Measuring Devices		364.2
365	Flow Measuring Installation		365.2
366	Reuse Services						366.6
367	Reuse Meters and Meter Installation						367.6
370	Receiving Wells			370.3
371	Pumping Equipment			371.3		371.5	371.6
374	Reuse Distribution Reservoirs					374.5
375	Reuse Transmission & Distribution System						375.6
380	Treatment and Disposal Equipment				380.4	380.5
381	Plant Sewers				381.4	381.5
382	Outfall Sewer Line				382.4	382.5
389	Other Plant and Misc. Equipment	389.1	389.2	389.3	389.4	389.5	389.6
390	Office Furniture and Equipment							390.7
391	Transportation Equipment							391.7
392	Store Equipment							392.7
393	Tools, Shop and Equipment							393.7
394	Laboratory Equipment							394.7
395	Power Operated Equipment							395.7
396	Communication Equipment							396.7
397	Misc. Equipment							397.7
398	Other Tangible Plant							398.7

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)




Section 650.TABLE B   Prescribed Expenses Accounts Matrix

 

		SEWER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS
		.1	.2	.3	.4	.5	.6
		Collection Expenses Oper.	Collection Expenses Maint.	Pumping Expenses Oper.	Pumping Expenses Maint.	Treatment & Disposal Expenses Oper.	Treatment & Disposal Expenses Maint.
701	Salaries and Wages – Employees	701.1	701.2	701.3	701.4	701.5	701.6
703	Salaries and Wages – Officers and Majority Stockholders
704	Employee Pensions and Benefits
710	Purchases Sewage Treatment					710.5
711	Sludge Removal Expenses					711.5	711.6
715	Purchased Power	715.1		715.3		715.5
716	Fuel for Power Production	716.1		716.3		715.5
718	Chemicals	718.1		718.3	718.4	718.5
720	Material and Supplies	720.1	720.2	720.3	720.4	720.5	720.6
731	Contractual Services – Engineering	731.1	731.2	731.3	731.4	731.5
732	Contractual Services – Accounting
733	Contractual Services – Legal
734	Contractual Services – Management Fees
735	Contractual Services – Testing
736	Contractual Services – Other	736.1	736.2	736.3	736.4	736.5	736.6
741	Rental of Building/Rental Property	741.1	741.2	741.3	741.4	741.5	741.6
742	Rental of Equipment	742.1	742.2	742.3	742.4	742.5	742.6
750	Transportation Expense	750.1	750.2	750.3	750.4	750.5	750.6
756	Insurance – Vehicle
757	Insurance – General Liability
758	Insurance – Workman's Compensation	758.1	758.2	758.3	758.4	758.5	758.6
759	Insurance – Other
760	Advertising Expense
766	Regulatory Commissions – Amortization of Rate Case Expense
767	Regulatory Commission Expenses – Other
770	Bad Debt Expense
775	Miscellaneous Expense	775.1	775.2	775.3	775.4	775.5	775.6
701	Salaries and Wages – Employees		701.8	701.9	701.10	701.11	701.12
703	Salaries and Wages – Officers and Majority Stockholders		703.8
704	Employee Pensions and Benefits		704.8
710	Purchases Sewage Treatment
711	Sludge Removal Expenses
715	Purchased Power	715.7	715.8	715.9		715.11
716	Fuel for Power Production	716.7	716.8	716.9		716.11
718	Chemicals
720	Materials and Supplies	720.7	720.8	720.9	720.10	720.11	720.12
731	Contractual Services – Engineering	731.7	731.8	731.9	731.10	731.11	731.12
732	Contractual Services – Accounting
733	Contractual Services – Legal
734	Contractual Services – Management Fees
735	Contractual Services – Testing			735.9	735.10	735.11	735.12
736	Contractual Services – Other	736.7	736.8	736.9	736.10	736.11	736.12
741	Rental of Building/Rental Property	741.7	741.8	741.9	741.10	741.11	741.12
742	Rental of Equipment	742.7	742.8	742.9	742.10	742.11	742.12
750	Transportation Expense	750.7	750.8	850.9	750.10	750.11	750.12
756	Insurance – Vehicle
757	Insurance – General Liability
758	Insurance – Workman's Compensation	758.7	758.8	758.9	758.10	758.11	758.12
		SEWER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS
		.1	.2	.3	.4	.5	.6
		Collection Expenses Oper.	Collection Expenses Maint.	Pumping Expenses Oper.	Pumping Expenses Maint.	Treatment & Disposal Expenses Oper.	Treatment & Disposal Expenses Maint.
759	Insurance – Other		759.9
760	Advertising Expense		760.8
766	Regulatory Commissions – Amortization of Rate Case Expense		766.8
767	Regulatory Commission Expenses – Other		767.8
770	Bad Debt Expense	770.7
775	Miscellaneous Expense	775.7	775.8	775.9	775.10	775.11	775.12

 

(Source:  Amended at 22 Ill. Reg. 11722, effective July 1, 1998)