Iowa Admin. Code r. 199-16.3 - Uniform systems of accounts-gas
The uniform systems of accounts for natural gas companies subject to the provisions of the Natural Gas Act, 18 CFR Part 201 published in the Federal Energy Regulatory Commission's rules and regulations, in effect on April 1, 2002, is adopted with the following modifications:
(1) Definition 7 is changed to read:
"Commission" means the commission except where reference is made to the
authority of the Federal Energy Regulatory Commission (FERC) under the Natural
Gas Act and where the commission does not have the same or similar authority
under Iowa Code chapter 476, where "Commission" shall mean FERC.
(2) Definition 22 is changed to read:
"Natural gas company" means a person furnishing gas by piped distribution
system to the public for compensation.
(3) Rescinded IAB 6/25/03, effective
7/30/03.
(4) General instruction
1-B of the uniform systems of accounts for gas utilities is modified to add the
following sentence: "Gas utilities subject to rate regulation by the commission
shall keep all the accounts of these systems of accounts which are applicable
to their affairs, and gas utilities not subject to rate regulation shall keep
the accounts of these systems of accounts for operating revenues
only."
(5) General instruction 1-D
of the uniform systems of accounts for gas utilities is modified by adding the
following sentence: "It is recommended but not required that gas utilities not
subject to rate regulation keep all applicable accounts in accordance with the
FERC uniform systems of accounts 18 CFR Part 201 ."
(6) General instruction 2-D of the uniform
systems of accounts for gas utilities is modified by adding the following
sentence: "This shall not prohibit the gas utilities from using additional
accounts as they are required or permitted to keep for their reporting to other
regulatory authorities or to their stockholders, providing the commission is
notified of the nature, amount and purpose of such accounts in the annual
report to the commission and at such other times as may be
requested."
(7) The definitions for
the uniform systems of accounts for gas utilities, when used in account 424,
Promotional Practices, are modified to include the following definitions:
a. The word"affiliate" shall
mean any person doing business in this state who directly or indirectly
controls or is controlled by or is under common control with a public
utility.
b. The
word"appliance" or "equipment" shall mean any
device, including a fixture, which consumes electric energy and any ancillary
device required for its operation.
c. The word"consideration"
shall mean any cash, donation, gift, allowance, rebate, bonds, merchandise (new
or used), property (tangible or intangible), labor, service conveyance,
commitment, right, or other thing of value.
d. The word"financing" shall
include acquisition of equity or debt interests, loans, guarantee of loans,
advances, sale and repurchase agreements, sale and lease-back agreements, sales
on open account, conditional or installment sales contracts, or other
investment or extensions of credit.
e. The word"person" shall
include any individual, group, firm, partnership, corporation, cooperative,
association, or other organization, but not including state or local political
subdivisions or municipal corporations.
f. The words"public utility"
or "utility" shall include persons defined to be public
utilities in Iowa Code section
476.1.
g. The words"promotional
practices" shall mean any consideration offered or granted by a public
utility or its affiliate to any person for the purpose, express or implied, of
inducing such person to select or use the service or additional service of such
utility, or to select or install any appliance or equipment designed to use
such utility service; provided that the words"promotional
practices" shall not include the following activities:
(1) Providing repairs and service to
appliances or equipment of customers of a public utility in an emergency or to
restore service or to prevent hazardous conditions or service
interruptions.
(2) Inspection and
adjustment of appliances or equipment by a public utility.
(3) Repairs and other maintenance to
appliances or equipment by a public utility that could be performed by an
independent appliance dealer or service shop if charges are at cost or
above.
(4) Providing service,
wiring, piping, appliances, or equipment in accordance with tariffs, rules, or
regulations of a public utility on file with and approved by the
commission.
(5) Providing
appliances, equipment, or instructional services to an educational institution
for the purpose of instructing students in the use or repair of such appliances
or equipment.
(6) Providing
discounts or financing to employees of a public utility to encourage their use
of the utility's service.
(7)
Merchandising and related inventory of appliances or equipment for sale at
retail and making and fulfilling reasonable warranties against defects in
material and workmanship in appliances or equipment existing at the time of
delivery; the elimination of hazardous conditions which due to a grandfather
provision would not be corrected by the customer and yet would require
correction to protect the public and minimize company liability.
(8) The replacement of or alterations to a
customer's obsolete or inefficient system.
(9) Technical, informational, or educational
assistance offered to persons on the use of energy furnished by a public
utility or on the use of maintenance of appliances or equipment.
(10) Lunches, gifts, door prizes, etc.,
presented for attendance at informational meetings, conferences, etc., valued
at $10 or less shall not be considered to be a promotional practice.
(11) Providing appliances or equipment
incidental to exhibitions, demonstrations, tests, or experiments of reasonable
duration.
(12) Any promotional
practice, or program which includes a promotional practice, designed to develop
or implement programs that promote energy efficiency.
(8) The uniform systems of
accounts for gas utilities are modified to include the following:
a. 424 Promotional Practices. This account
shall include the cost of labor, materials used, and expenses or losses
incurred by the utility or an affiliate (where such costs are charged back to
the company) on promotional practices. Promotional practices, or programs which
include promotional practices, and the labor, materials, and expenses related
to promotional practices, which are exempted by subrule 16.7(2) need not be
included in this account. The account shall include, but not be limited to, the
following items:
(1) The financing of land or
the construction of any building when the same is not owned or otherwise
possessed by the utility or its affiliate without commission written
approval.
(2) The furnishing of
consideration to any person for work done or to be done on property not owned
or otherwise possessed by the utility or its affiliate, except for the
following: Studies to determine comparative capital or operating costs and
expenses, or to show the desirability and feasibility of selecting one form of
energy over another, contributions for research and development of new energy
sources, etc.
(3) The acquisition
from any person of any tangible or intangible property or service for a
consideration in excess of the value thereof or the furnishing to any person of
any tangible property or service for a consideration of less than the value
thereof. "Value" in this instance is defined as the fair market price of the
property or service under competitive market conditions and under arm's length
conditions.
(4) The furnishing of
consideration to any person for the sale, installation, or use of appliances or
equipment of one form of energy over another. Employees who are paid a
commission in lieu of salary for the initial sale of appliances are
exempted.
(5) The provision of
free, or at less than cost or value, wiring, piping, appliances, or equipment
to any person; provided that a utility, engaged in an appliance merchandising
sales program, shall not be precluded from conducting legitimate closeouts of
appliances, clearance sales, or sales of damaged or returned appliances. All
items required by service rules of this commission are exempted.
(6) The provision of free, or at less than
cost or value, installation, operation, repair, modification, or maintenance of
appliances, equipment, wiring or piping to any person. This would not include
services provided for the convenience and safety of customers such as gas leak
testing, lighting of furnaces, etc.
(7) The granting of a trade-in allowance on
the purchase of any appliance or equipment in excess of the reasonable value of
the trade-in based on the past experience of a company or the granting of a
trade-in allowance for such appliance or equipment when such allowance varies
by the type of energy consumed in the trade-in.
(8) The financing of the acquisition of any
appliance or equipment at a rate of interest or on terms significantly more
favorable than those generally applicable to sales by nonutility dealers in
such appliances or equipment.
(9)
The furnishing of consideration to any person for any advertising or publicity
purpose, except where appropriately classified to another account.
(10) The guaranteeing of the maximum cost of
gas utility service, except under published tariffs.
(11) Labor items related to promotional
practices:
1. Salary of employees engaged
directly or indirectly in promotional practices defined.
2. Clerical and stenographic work performed
in relation to promotional practices.
3. Fees paid to consultants, agents,
attorneys, etc., on related promotional practices.
(12) Materials and expenses related to
promotional practices:
1. Amounts spent on
postage, office supplies, displays, posters, exhibits, etc.
2. Films, movies, photographs prepared for
promotional activities.
3. Expenses
paid such as lodging, food, entertainment expenses.
4. Transportation by company auto or plane
and public transportation of any mode.
b. 426 Miscellaneous Income Deductions.
Immediately following the current text and item list, add the following:
(1) Promotional advertising
expenses.
(2) Institutional or
goodwill advertising expenses.
(3)
Rate justification advertising expenses.
c. 426.4 Political Advertising Expenses.
(1) Account 426.4 pertains to items in
subparagraph 16.3(8)"a"(12)"1" and paragraph
16.3(8)"b" listed above. This account shall include the cost
of labor, materials used, and expenses incurred in advertising, whether on a
national, regional, or local basis, which are designed to influence public
opinion with respect to the election or appointment of public officials or the
adoption, repeal, revocation, or modification of referenda, legislation, or
ordinances. The account shall also include expenditures for influencing the
decisions of public officials not including such expenditures which are
directly related to appearances before regulatory or other governmental bodies
in connection with the utility's existing or proposed operations.
(2) Entries relating to political advertising
included in this account shall contain or refer to supporting documents which
identify the specific advertising message. If references are used, copies or
scripts of the advertising message shall be readily available to staff,
consumer advocate, or any party involved in a discovery proceeding.
(3) Where political advertising is undertaken
by an association on behalf of its members or by a holding company on behalf of
its subsidiaries, the amount of expenses for such advertising charged to any
member or subsidiary which is an Iowa gas utility and included in this account
shall be determined in accordance with the text of this account as set forth in
paragraph 16.3(8)"c."
(4) Labor items related to political
advertising:
1. Preparing material for
newspapers, periodicals, billboards, etc., and preparing and conducting
promotional motion pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used
in direct mail.
3. Preparing window
and other displays.
4. Clerical and
stenographic work.
5. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
political advertising:
1. Advertising in
newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters,
bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies
and commercial artists.
4.
Novelties for general distribution.
5. Postage on direct-mail
advertising.
6. Printing of
booklets, dodgers, bulletins, etc.
7. Supplies and expenses in preparing
advertising materials.
8. Office
supplies and expenses.
Note: Franchise advertising and related expenses shall be charged to account 913.5 shown in paragraph 16.3(8)"j" or FERC account 302.
d. 426.7 Promotional Advertising Expenses.
(1) 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, load factor advertising, or advertising which is part of a
promotional practice, or a program which includes a promotional practice,
designed to develop or implement programs that promote energy efficiency and
are part of the utility's energy efficiency plan developed pursuant to
199-Chapter 35.
(2) Entries
relating to promotional advertising included in this account shall contain or
refer to supporting documents which identify the specific advertising message.
If references are used, copies or scripts of the advertising message shall be
readily available to staff, consumer advocate, or any party involved in a
discovery proceeding.
(3) Where
promotional advertising is undertaken by an association on behalf of its
members or by a holding company on behalf of its subsidiaries, the amount of
expenses for such advertising charged to any member or subsidiary which is an
Iowa gas utility and included in this account shall be determined in accordance
with the text of this account as set forth in paragraph
16.3(8)"d."
(4)
Labor items related to promotional advertising:
1. Direct supervision of advertising
activities.
2. Preparing material
for newspapers, periodicals, billboards, etc., and preparing and conducting
motion pictures, radio, and television programs.
3. Preparing booklets, bulletins, etc., used
in direct mail.
4. Preparing window
and other displays.
5. Clerical and
stenographic work.
6. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
promotional advertising:
1. Advertising in
newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters,
bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies
and commercial artists.
4.
Novelties for general distribution.
5. Postage on direct-mail
advertising.
6. Premiums
distributed generally, such as recipe books, etc., when not offered as
inducement to purchase appliances.
7. Printing of booklets, dodgers, bulletins,
etc.
8. Supplies and expenses in
preparing advertising materials.
9.
Office supplies and expenses.
Note A: The cost of advertisements which set forth the value or advantages of utility service (without reference to specific appliances or if reference is made to appliances from dealers or refers to appliances not carried for sale by the utility) shall be considered sales promotion advertising and charged to this account. However, advertisements which are limited to specific makes of appliances sold by the utility and prices, terms, etc., thereof, without referring to the value or advantages of utility service, shall be considered as merchandise advertising, and the cost shall be charged to account 416, Costs and Expenses of Merchandising, Jobbing, and Contract Work.
Note B: Advertisements which substantially mention or refer to the value or advantages of utility service, together with specific reference to makes or appliances sold by the utility and the price, terms, etc., thereof, and designed for the joint purpose of increasing the use of utility service and the sales of appliances, shall be considered as a combination advertisement, and the costs shall be distributed between this account and account 416, Costs and Expenses of Merchandising, Jobbing, and Contract Work, on the basis of space, time, or other proportional factors.
e. 426.8 Institutional or Goodwill
Advertising Expenses.
(1) This account shall
include the cost of labor, materials used, and expenses incurred in advertising
which is designed to create, enhance, or sustain the utility's image or
goodwill to the general public or its customers.
(2) Entries relating to institutional or
goodwill advertising included in this account shall contain or refer to
supporting documents which identify the specific advertising message. If
references are used, copies or scripts of the advertising message shall be
readily available to staff, consumer advocate, or any party involved in a
discovery proceeding.
(3) Where
institutional or goodwill advertising is undertaken by an association on behalf
of its members or by a holding company on behalf of its subsidiaries, the
amount of expense for such advertising charged to any member or subsidiary
which is an Iowa gas utility and included in this account shall be determined
in accordance with the text of this account as set forth in paragraph
16.3(8)"e."
(4)
Labor items related to institutional or goodwill advertising:
1. Supervision of advertising
activities.
2. Preparing material
for newspapers, periodicals, billboards, etc., and preparing and conducting
motion pictures, radio, and television programs.
3. Preparing booklets, bulletins, etc., used
in direct mail.
4. Preparing window
and other displays.
5. Clerical and
stenographic work.
6. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
institutional or goodwill advertising:
1.
Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters,
bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies
and commercial artists.
4. Postage
on direct-mail advertising.
5.
Printing of booklets, dodgers, bulletins, etc.
6. Supplies and expenses in preparing
advertising materials.
7. Office
supplies and expenses.
8. Novelties
for general distribution.
Below are examples of the advertising to be included in this account:
* Pronouncements primarily lauding the utility or the area or community it serves.
* Advertising activities to inform the ratepayers of the social and economic advantages or status of the area or community it serves.
* Advertising activities to inform the public of the utility's participation in programs to improve the economic condition of the area or community the utility serves.
* Advertising activities to inform the public of the utility's role of good citizenship.
* Information and routine data supplied by the utility to local governments, planning agencies, civic groups, businesses, and the general public which are not inclusive in account 909.3, Informational Consumer Advertising Expenses. See paragraph 16.3(8)"i."
* Advertising activities to inform the public of the utility's consciousness of, or involvement in, health, safety, conservation, or environmental programs, except as included in accounts 909.1, 909.2 and 909.3. See paragraphs 16.3(8)"g," 16.3(8)"h," and 16.3(8)"i," respectively.
f. 426.9 Rate Justification
Advertising Expenses.
(1) This account shall
include the cost of labor, materials used, and expenses incurred in
advertising, whether on a regional or local basis, which is designed to promote
public acceptance of utility rate increases or the utility's filed rates. The
account shall also include all costs incurred by the utility for advertising in
opposition to the decision of the regulatory agency. However, the expenses
associated with simply informing customers that new rates have been requested
shall be recorded in FERC account 928, Regulatory Commission
Expenses.
(2) Entries relating to
rate justification advertising included in this account shall contain or refer
to supporting documents which identify the specific advertising message. If
references are used, copies or scripts of the advertising message shall be
readily available to staff, consumer advocate, or any party involved in a
discovery proceeding.
(3) Where
advertising is undertaken by an association on behalf of its members or by a
holding company on behalf of its subsidiaries, the amount of expense for such
advertising charged to any member or subsidiary which is an Iowa gas utility
and included in this account shall be determined in accordance with the text of
this account as set forth in paragraph 16.3(8)"f."
(4) Labor items related to rate justification
advertising:
1. Preparing material for
newspapers, periodicals, billboards, etc., and preparing and conducting motion
pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used
in direct mail.
3. Preparing window
and other displays.
4. Clerical and
stenographic work.
5. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to rate
justification advertising:
1. Advertising in
newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters,
bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies
and commercial artists.
4. Postage
on direct-mail advertising.
5.
Printing of booklets, dodgers, bulletins, etc.
6. Supplies and expenses in preparing
advertising materials.
7. Office
supplies and expenses.
g. 909.1 Conservation Advertising Expenses.
(1) This account shall include the cost of
labor, materials used, and expenses incurred in advertising activities which
primarily inform the customer of the reasons for and methods whereby energy may
be conserved and energy consumption reduced by the consumer. Include in this
account advertising activity relating to the gas utility, which is related
directly to the company's provision of service to the customer during energy,
fuel, and related shortages.
(2)
Entries relating to conservation advertising included in this account shall
contain or refer to supporting documents which identify the specific
advertising message. If references are used, copies or scripts of the
advertising message shall be readily available to staff, consumer advocate, or
any party involved in a discovery proceeding.
(3) Where conservation advertising is
undertaken by an association on behalf of its members or by a holding company
on behalf of its subsidiaries, the amount of expense for such advertising
charged to any member or subsidiary which is an Iowa gas utility and included
in this account shall be determined in accordance with the text of this account
as set forth in paragraph 16.3(8)"g."
(4) Labor items related to conservation
advertising:
1. Direct supervision of
advertising activities.
2.
Preparation of materials for newspapers, periodicals, billboards, etc., and
preparing and conducting motion pictures, radio, and television
programs.
3. Preparation of
booklets, bulletins, etc., used in direct mail.
4. Preparation of window and other
displays.
5. Clerical and
stenographic work.
6. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
conservation advertising:
1. Advertising in
newspapers, periodicals, billboards, radio, etc.
2. Fees and expenses of advertising agencies
and commercial artists.
3. Postage
on direct-mail advertising.
4.
Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing
advertising materials.
6. Office
supplies and expenses.
7. Novelties
for general distribution.
Below are examples of the advertising to be included in this account:
* Instructions in the proper use of equipment owned by the utility or the customer which will result in less consumption of energy.
* Advertising designed to convince consumers to turn down thermostats, turn off appliances, etc., when not in use.
h. 909.2 Environmental
Advertising Expenses.
(1) This account shall
include the cost of labor, materials used, and expenses incurred in advertising
activities which primarily are designed to inform the public concerning the
methods by which customers can participate with the utility in preserving and
improving the environment. However, advertising which is primarily designed to
laud the utility's achievements or projects purporting to preserve or enhance
the environment shall be recorded in account 426.8. See paragraph
16.2(3)"e."
(2)
Entries relating to environmental advertising included in this account shall
contain or refer to supporting documents which identify the specific
advertising message. If references are used, copies or scripts of the
advertising message shall be readily available to staff, consumer advocate, or
any party involved in a discovery proceeding.
(3) Where environmental advertising is
undertaken by an association on behalf of its members or by a holding company
on behalf of its subsidiaries, the amount of expenses for such advertising
charged to any member or subsidiary which is an Iowa gas utility and included
in this account shall be determined in accordance with the text of this account
as set forth in paragraph 16.3(8)"h."
(4) Labor items related to environmental
advertising:
1. Direct supervision of
advertising activities.
2.
Preparation of materials for newspapers, periodicals, billboards, etc., and
preparing and conducting motion pictures, radio, and television
programs.
3. Preparation of
booklets, bulletins, etc., used in direct mail.
4. Preparation of window and other
displays.
5. Clerical and
stenographic work.
6. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
environmental advertising:
1. Advertising in
newspapers, periodicals, billboards, etc.
2. Fees and expenses of advertising agencies
and commercial artists.
3. Postage
on direct-mail advertising.
4.
Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing
advertising materials.
6. Office
supplies and expenses.
7. Novelties
for general distribution.
i. 909.3 Informational Consumer Advertising
Expenses.
(1) This account shall include the
cost of labor, materials used, and expenses incurred in advertising activities
which primarily convey information as to what the utility urges or suggests
customers should do in utilizing gas service to protect their health and
safety, and to utilize their gas equipment safely and economically.
(2) Entries relating to informational
advertising included in this account shall contain or refer to supporting
documents which identify the specific advertising message. If references are
used, copies or scripts of the advertising message shall be readily available
to staff, consumer advocate, or any party involved in a discovery
proceeding.
(3) Where informational
advertising is undertaken by an association on behalf of its members or by a
holding company on behalf of its subsidiaries, the amount of expense for such
advertising charged to any member or subsidiary which is an Iowa gas utility
and included in this account shall be determined in accordance with the text of
this account as set forth in paragraph 16.3(8)"i."
(4) Labor items related to informational
consumer advertising:
1. Direct supervision of
advertising activities.
2.
Preparing materials for newspapers, periodicals, billboards, etc., and
preparing and conducting motion pictures, radio, and television
programs.
3. Preparing booklets,
bulletins, etc., used in direct mail.
4. Preparing window and other
displays.
5. Clerical and
stenographic work.
6. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(5) Materials and expenses related to
informational consumer advertising:
1.
Advertising in newspapers, periodicals, billboards, radio, etc.
2. Fees and expenses of advertising agencies
and commercial artists.
3. Postage
on direct-mail advertising.
4.
Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing
advertising materials.
6. Office
supplies and expenses.
7. Novelties
for general distribution.
Below are examples of the advertising to be included in this account:
* Instructions in the proper use of equipment owned by the utility or the customer which makes use of the utility's service.
* Information as to new rates, billing practices, new inspection, or meter-reading schedules.
* Notification of emergency conditions and procedures to be followed during the emergency.
* Advice concerning hazards associated with the utility's gas service.
(6)
Exclude from this account and charge to FERC account 930.2, Miscellaneous
General Expenses, the cost of publication of stockholder reports, dividend
notices, bond redemption notices, financial statements, and other notices of a
general corporate character. Also, exclude all expenses of promotional,
institutional, or goodwill, and political advertising. See paragraphs
16.3(8)"c," 16.3(8)"d," and
16.3(8)"e," which refer to accounts 426.4, Political
Advertising Expenses, 426.7, Promotional Advertising Expenses, and 426.8,
Institutional or Goodwill Advertising Expenses, respectively.
Advertising expense directly related to obtaining a franchise or renewing an old franchise shall be charged to FERC account 302, Franchise and Consents. Such amounts shall be maintained in a separate subaccount for ready identification.
Advertising expense directly related to securing of new debt financing shall be charged to FERC account 181, Unamortized Debt Discount and Expense. Such amounts shall be maintained in a separate subaccount for ready identification.
Advertising expense directly related to securing of new equity financing shall be charged to FERC account 214, Capital Stock Expense. Such amounts shall be maintained in a separate subaccount for ready identification.
j.
913.5 Franchise Advertising Expenses.
(1)
This account shall include only reasonable advertising expenditures for the
purpose of obtaining approval, modification, or revocation of
franchises.
(2) Entries relating to
reasonable franchise advertising included in this account shall contain or
refer to supporting documents which identify the specific advertising message.
If references are used, copies or scripts of the advertising matter shall be
readily available to staff, consumer advocate, or any party involved in a
discovery proceeding.
(3) Labor
items related to franchise advertising:
1.
Preparing material for newspapers, periodicals, billboards, etc., and preparing
and conducting motion pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used
in direct mail.
3. Preparing window
and other displays.
4. Clerical and
stenographic work.
5. Investigating
advertising agencies and media and conducting negotiations in connection with
the placement and subject matter of advertising.
(4) Materials and expenses related to
franchise advertising:
1. Advertising in
newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters,
bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies
and commercial artists.
4.
Novelties for general distribution.
5. Postage on direct-mail
advertising.
6. Printing of
booklets, bulletins, etc.
7.
Supplies and expenses in preparing advertising materials.
8. Office supplies and expenses.
k. 930.2 Miscellaneous
General Expenses.
(9)
FERC accounts 421.1 or 421.2 as they are defined and exist in the uniform
systems of accounts shall be used to account for the gain or loss on the sale,
conveyance, exchange, or transfer of utility or other property, including land
and land rights, unless otherwise authorized or required by the commission for
good cause shown.
(10) FERC
accounts 105 and 105.1 of the uniform systems of accounts 18 CFR Part 201 are
modified in subparagraph "D" by deleting the following language: "in FERC
account 411.6 or 411.7, as appropriate except when determined to be significant
by the commission. Upon such a determination, the amounts shall be transferred
to FERC account 256, Deferred Gains from Disposition of Utility Plant, or FERC
account 187, Deferred Losses from Disposition of Utility Plant, and amortized
to FERC account 411.6, Gains from Disposition of Utility Plant, or FERC account
411.7, Losses from Disposition of Utility Plant, as appropriate," and
substituting in lieu thereof: "in FERC account 421.1 or 421.2, as appropriate,
unless otherwise authorized or required by the commission for good cause
shown."
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
The uniform systems of accounts for natural gas companies subject to the provisions of the Natural Gas Act, 18 CFR Part 201 published in the Federal Energy Regulatory Commission's rules and regulations, in effect on April 1, 2002, is adopted with the following modifications:
(1) Definition 7 is changed to read: "Commission" means the commission except where reference is made to the authority of the Federal Energy Regulatory Commission (FERC) under the Natural Gas Act and where the commission does not have the same or similar authority under Iowa Code chapter 476, where "Commission" shall mean FERC.
(2) Definition 22 is changed to read: "Natural gas company" means a person furnishing gas by piped distribution system to the public for compensation.
(3) Rescinded IAB 6/25/03, effective 7/30/03.
(4) General instruction 1-B of the uniform systems of accounts for gas utilities is modified to add the following sentence: "Gas utilities subject to rate regulation by the commission shall keep all the accounts of these systems of accounts which are applicable to their affairs, and gas utilities not subject to rate regulation shall keep the accounts of these systems of accounts for operating revenues only."
(5) General instruction 1-D of the uniform systems of accounts for gas utilities is modified by adding the following sentence: "It is recommended but not required that gas utilities not subject to rate regulation keep all applicable accounts in accordance with the FERC uniform systems of accounts 18 CFR Part 201 ."
(6) General instruction 2-D of the uniform systems of accounts for gas utilities is modified by adding the following sentence: "This shall not prohibit the gas utilities from using additional accounts as they are required or permitted to keep for their reporting to other regulatory authorities or to their stockholders, providing the commission is notified of the nature, amount and purpose of such accounts in the annual report to the commission and at such other times as may be requested."
(7) The definitions for the uniform systems of accounts for gas utilities, when used in account 424, Promotional Practices, are modified to include the following definitions:
a. The word"affiliate" shall mean any person doing business in this state who directly or indirectly controls or is controlled by or is under common control with a public utility.
b. The word"appliance" or "equipment" shall mean any device, including a fixture, which consumes electric energy and any ancillary device required for its operation.
c. The word"consideration" shall mean any cash, donation, gift, allowance, rebate, bonds, merchandise (new or used), property (tangible or intangible), labor, service conveyance, commitment, right, or other thing of value.
d. The word"financing" shall include acquisition of equity or debt interests, loans, guarantee of loans, advances, sale and repurchase agreements, sale and lease-back agreements, sales on open account, conditional or installment sales contracts, or other investment or extensions of credit.
e. The word"person" shall include any individual, group, firm, partnership, corporation, cooperative, association, or other organization, but not including state or local political subdivisions or municipal corporations.
f. The words"public utility" or "utility" shall include persons defined to be public utilities in Iowa Code section 476.1.
g. The words"promotional practices" shall mean any consideration offered or granted by a public utility or its affiliate to any person for the purpose, express or implied, of inducing such person to select or use the service or additional service of such utility, or to select or install any appliance or equipment designed to use such utility service; provided that the words"promotional practices" shall not include the following activities:
(1) Providing repairs and service to appliances or equipment of customers of a public utility in an emergency or to restore service or to prevent hazardous conditions or service interruptions.
(2) Inspection and adjustment of appliances or equipment by a public utility.
(3) Repairs and other maintenance to appliances or equipment by a public utility that could be performed by an independent appliance dealer or service shop if charges are at cost or above.
(4) Providing service, wiring, piping, appliances, or equipment in accordance with tariffs, rules, or regulations of a public utility on file with and approved by the commission.
(5) Providing appliances, equipment, or instructional services to an educational institution for the purpose of instructing students in the use or repair of such appliances or equipment.
(6) Providing discounts or financing to employees of a public utility to encourage their use of the utility's service.
(7) Merchandising and related inventory of appliances or equipment for sale at retail and making and fulfilling reasonable warranties against defects in material and workmanship in appliances or equipment existing at the time of delivery; the elimination of hazardous conditions which due to a grandfather provision would not be corrected by the customer and yet would require correction to protect the public and minimize company liability.
(8) The replacement of or alterations to a customer's obsolete or inefficient system.
(9) Technical, informational, or educational assistance offered to persons on the use of energy furnished by a public utility or on the use of maintenance of appliances or equipment.
(10) Lunches, gifts, door prizes, etc., presented for attendance at informational meetings, conferences, etc., valued at $10 or less shall not be considered to be a promotional practice.
(11) Providing appliances or equipment incidental to exhibitions, demonstrations, tests, or experiments of reasonable duration.
(12) Any promotional practice, or program which includes a promotional practice, designed to develop or implement programs that promote energy efficiency.
(8) The uniform systems of accounts for gas utilities are modified to include the following:
a. 424 Promotional Practices. This account shall include the cost of labor, materials used, and expenses or losses incurred by the utility or an affiliate (where such costs are charged back to the company) on promotional practices. Promotional practices, or programs which include promotional practices, and the labor, materials, and expenses related to promotional practices, which are exempted by subrule 16.7(2) need not be included in this account. The account shall include, but not be limited to, the following items:
(1) The financing of land or the construction of any building when the same is not owned or otherwise possessed by the utility or its affiliate without commission written approval.
(2) The furnishing of consideration to any person for work done or to be done on property not owned or otherwise possessed by the utility or its affiliate, except for the following: Studies to determine comparative capital or operating costs and expenses, or to show the desirability and feasibility of selecting one form of energy over another, contributions for research and development of new energy sources, etc.
(3) The acquisition from any person of any tangible or intangible property or service for a consideration in excess of the value thereof or the furnishing to any person of any tangible property or service for a consideration of less than the value thereof. "Value" in this instance is defined as the fair market price of the property or service under competitive market conditions and under arm's length conditions.
(4) The furnishing of consideration to any person for the sale, installation, or use of appliances or equipment of one form of energy over another. Employees who are paid a commission in lieu of salary for the initial sale of appliances are exempted.
(5) The provision of free, or at less than cost or value, wiring, piping, appliances, or equipment to any person; provided that a utility, engaged in an appliance merchandising sales program, shall not be precluded from conducting legitimate closeouts of appliances, clearance sales, or sales of damaged or returned appliances. All items required by service rules of this commission are exempted.
(6) The provision of free, or at less than cost or value, installation, operation, repair, modification, or maintenance of appliances, equipment, wiring or piping to any person. This would not include services provided for the convenience and safety of customers such as gas leak testing, lighting of furnaces, etc.
(7) The granting of a trade-in allowance on the purchase of any appliance or equipment in excess of the reasonable value of the trade-in based on the past experience of a company or the granting of a trade-in allowance for such appliance or equipment when such allowance varies by the type of energy consumed in the trade-in.
(8) The financing of the acquisition of any appliance or equipment at a rate of interest or on terms significantly more favorable than those generally applicable to sales by nonutility dealers in such appliances or equipment.
(9) The furnishing of consideration to any person for any advertising or publicity purpose, except where appropriately classified to another account.
(10) The guaranteeing of the maximum cost of gas utility service, except under published tariffs.
(11) Labor items related to promotional practices:
1. Salary of employees engaged directly or indirectly in promotional practices defined.
2. Clerical and stenographic work performed in relation to promotional practices.
3. Fees paid to consultants, agents, attorneys, etc., on related promotional practices.
(12) Materials and expenses related to promotional practices:
1. Amounts spent on postage, office supplies, displays, posters, exhibits, etc.
2. Films, movies, photographs prepared for promotional activities.
3. Expenses paid such as lodging, food, entertainment expenses.
4. Transportation by company auto or plane and public transportation of any mode.
b. 426 Miscellaneous Income Deductions. Immediately following the current text and item list, add the following:
(1) Promotional advertising expenses.
(2) Institutional or goodwill advertising expenses.
(3) Rate justification advertising expenses.
c. 426.4 Political Advertising Expenses.
(1) Account 426.4 pertains to items in subparagraph 16.3(8)"a"(12)"1" and paragraph 16.3(8)"b" listed above. This account shall include the cost of labor, materials used, and expenses incurred in advertising, whether on a national, regional, or local basis, which are designed to influence public opinion with respect to the election or appointment of public officials or the adoption, repeal, revocation, or modification of referenda, legislation, or ordinances. The account shall also include expenditures for influencing the decisions of public officials not including such expenditures which are directly related to appearances before regulatory or other governmental bodies in connection with the utility's existing or proposed operations.
(2) Entries relating to political advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where political advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expenses for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"c."
(4) Labor items related to political advertising:
1. Preparing material for newspapers, periodicals, billboards, etc., and preparing and conducting promotional motion pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used in direct mail.
3. Preparing window and other displays.
4. Clerical and stenographic work.
5. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to political advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters, bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies and commercial artists.
4. Novelties for general distribution.
5. Postage on direct-mail advertising.
6. Printing of booklets, dodgers, bulletins, etc.
7. Supplies and expenses in preparing advertising materials.
8. Office supplies and expenses.
Note: Franchise advertising and related expenses shall be charged to account 913.5 shown in paragraph 16.3(8)"j" or FERC account 302.
d. 426.7 Promotional Advertising Expenses.
(1) 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, load factor advertising, or advertising which is part of a promotional practice, or a program which includes a promotional practice, designed to develop or implement programs that promote energy efficiency and are part of the utility's energy efficiency plan developed pursuant to 199-Chapter 35.
(2) Entries relating to promotional advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where promotional advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expenses for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"d."
(4) Labor items related to promotional advertising:
1. Direct supervision of advertising activities.
2. Preparing material for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
3. Preparing booklets, bulletins, etc., used in direct mail.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to promotional advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters, bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies and commercial artists.
4. Novelties for general distribution.
5. Postage on direct-mail advertising.
6. Premiums distributed generally, such as recipe books, etc., when not offered as inducement to purchase appliances.
7. Printing of booklets, dodgers, bulletins, etc.
8. Supplies and expenses in preparing advertising materials.
9. Office supplies and expenses.
Note A: The cost of advertisements which set forth the value or advantages of utility service (without reference to specific appliances or if reference is made to appliances from dealers or refers to appliances not carried for sale by the utility) shall be considered sales promotion advertising and charged to this account. However, advertisements which are limited to specific makes of appliances sold by the utility and prices, terms, etc., thereof, without referring to the value or advantages of utility service, shall be considered as merchandise advertising, and the cost shall be charged to account 416, Costs and Expenses of Merchandising, Jobbing, and Contract Work.
Note B: Advertisements which substantially mention or refer to the value or advantages of utility service, together with specific reference to makes or appliances sold by the utility and the price, terms, etc., thereof, and designed for the joint purpose of increasing the use of utility service and the sales of appliances, shall be considered as a combination advertisement, and the costs shall be distributed between this account and account 416, Costs and Expenses of Merchandising, Jobbing, and Contract Work, on the basis of space, time, or other proportional factors.
e. 426.8 Institutional or Goodwill Advertising Expenses.
(1) This account shall include the cost of labor, materials used, and expenses incurred in advertising which is designed to create, enhance, or sustain the utility's image or goodwill to the general public or its customers.
(2) Entries relating to institutional or goodwill advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where institutional or goodwill advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expense for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"e."
(4) Labor items related to institutional or goodwill advertising:
1. Supervision of advertising activities.
2. Preparing material for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
3. Preparing booklets, bulletins, etc., used in direct mail.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to institutional or goodwill advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters, bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies and commercial artists.
4. Postage on direct-mail advertising.
5. Printing of booklets, dodgers, bulletins, etc.
6. Supplies and expenses in preparing advertising materials.
7. Office supplies and expenses.
8. Novelties for general distribution.
Below are examples of the advertising to be included in this account:
* Pronouncements primarily lauding the utility or the area or community it serves.
* Advertising activities to inform the ratepayers of the social and economic advantages or status of the area or community it serves.
* Advertising activities to inform the public of the utility's participation in programs to improve the economic condition of the area or community the utility serves.
* Advertising activities to inform the public of the utility's role of good citizenship.
* Information and routine data supplied by the utility to local governments, planning agencies, civic groups, businesses, and the general public which are not inclusive in account 909.3, Informational Consumer Advertising Expenses. See paragraph 16.3(8)"i."
* Advertising activities to inform the public of the utility's consciousness of, or involvement in, health, safety, conservation, or environmental programs, except as included in accounts 909.1, 909.2 and 909.3. See paragraphs 16.3(8)"g," 16.3(8)"h," and 16.3(8)"i," respectively.
f. 426.9 Rate Justification Advertising Expenses.
(1) This account shall include the cost of labor, materials used, and expenses incurred in advertising, whether on a regional or local basis, which is designed to promote public acceptance of utility rate increases or the utility's filed rates. The account shall also include all costs incurred by the utility for advertising in opposition to the decision of the regulatory agency. However, the expenses associated with simply informing customers that new rates have been requested shall be recorded in FERC account 928, Regulatory Commission Expenses.
(2) Entries relating to rate justification advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expense for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"f."
(4) Labor items related to rate justification advertising:
1. Preparing material for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used in direct mail.
3. Preparing window and other displays.
4. Clerical and stenographic work.
5. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to rate justification advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters, bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies and commercial artists.
4. Postage on direct-mail advertising.
5. Printing of booklets, dodgers, bulletins, etc.
6. Supplies and expenses in preparing advertising materials.
7. Office supplies and expenses.
g. 909.1 Conservation Advertising Expenses.
(1) This account shall include the cost of labor, materials used, and expenses incurred in advertising activities which primarily inform the customer of the reasons for and methods whereby energy may be conserved and energy consumption reduced by the consumer. Include in this account advertising activity relating to the gas utility, which is related directly to the company's provision of service to the customer during energy, fuel, and related shortages.
(2) Entries relating to conservation advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where conservation advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expense for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"g."
(4) Labor items related to conservation advertising:
1. Direct supervision of advertising activities.
2. Preparation of materials for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
3. Preparation of booklets, bulletins, etc., used in direct mail.
4. Preparation of window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to conservation advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Fees and expenses of advertising agencies and commercial artists.
3. Postage on direct-mail advertising.
4. Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing advertising materials.
6. Office supplies and expenses.
7. Novelties for general distribution.
Below are examples of the advertising to be included in this account:
* Instructions in the proper use of equipment owned by the utility or the customer which will result in less consumption of energy.
* Advertising designed to convince consumers to turn down thermostats, turn off appliances, etc., when not in use.
h. 909.2 Environmental Advertising Expenses.
(1) This account shall include the cost of labor, materials used, and expenses incurred in advertising activities which primarily are designed to inform the public concerning the methods by which customers can participate with the utility in preserving and improving the environment. However, advertising which is primarily designed to laud the utility's achievements or projects purporting to preserve or enhance the environment shall be recorded in account 426.8. See paragraph 16.2(3)"e."
(2) Entries relating to environmental advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where environmental advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expenses for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"h."
(4) Labor items related to environmental advertising:
1. Direct supervision of advertising activities.
2. Preparation of materials for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
3. Preparation of booklets, bulletins, etc., used in direct mail.
4. Preparation of window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to environmental advertising:
1. Advertising in newspapers, periodicals, billboards, etc.
2. Fees and expenses of advertising agencies and commercial artists.
3. Postage on direct-mail advertising.
4. Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing advertising materials.
6. Office supplies and expenses.
7. Novelties for general distribution.
i. 909.3 Informational Consumer Advertising Expenses.
(1) This account shall include the cost of labor, materials used, and expenses incurred in advertising activities which primarily convey information as to what the utility urges or suggests customers should do in utilizing gas service to protect their health and safety, and to utilize their gas equipment safely and economically.
(2) Entries relating to informational advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising message shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Where informational advertising is undertaken by an association on behalf of its members or by a holding company on behalf of its subsidiaries, the amount of expense for such advertising charged to any member or subsidiary which is an Iowa gas utility and included in this account shall be determined in accordance with the text of this account as set forth in paragraph 16.3(8)"i."
(4) Labor items related to informational consumer advertising:
1. Direct supervision of advertising activities.
2. Preparing materials for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
3. Preparing booklets, bulletins, etc., used in direct mail.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(5) Materials and expenses related to informational consumer advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Fees and expenses of advertising agencies and commercial artists.
3. Postage on direct-mail advertising.
4. Printing of booklets, dodgers, bulletins, etc.
5. Supplies and expenses in preparing advertising materials.
6. Office supplies and expenses.
7. Novelties for general distribution.
Below are examples of the advertising to be included in this account:
* Instructions in the proper use of equipment owned by the utility or the customer which makes use of the utility's service.
* Information as to new rates, billing practices, new inspection, or meter-reading schedules.
* Notification of emergency conditions and procedures to be followed during the emergency.
* Advice concerning hazards associated with the utility's gas service.
(6) Exclude from this account and charge to FERC account 930.2, Miscellaneous General Expenses, the cost of publication of stockholder reports, dividend notices, bond redemption notices, financial statements, and other notices of a general corporate character. Also, exclude all expenses of promotional, institutional, or goodwill, and political advertising. See paragraphs 16.3(8)"c," 16.3(8)"d," and 16.3(8)"e," which refer to accounts 426.4, Political Advertising Expenses, 426.7, Promotional Advertising Expenses, and 426.8, Institutional or Goodwill Advertising Expenses, respectively.
Advertising expense directly related to obtaining a franchise or renewing an old franchise shall be charged to FERC account 302, Franchise and Consents. Such amounts shall be maintained in a separate subaccount for ready identification.
Advertising expense directly related to securing of new debt financing shall be charged to FERC account 181, Unamortized Debt Discount and Expense. Such amounts shall be maintained in a separate subaccount for ready identification.
Advertising expense directly related to securing of new equity financing shall be charged to FERC account 214, Capital Stock Expense. Such amounts shall be maintained in a separate subaccount for ready identification.
j. 913.5 Franchise Advertising Expenses.
(1) This account shall include only reasonable advertising expenditures for the purpose of obtaining approval, modification, or revocation of franchises.
(2) Entries relating to reasonable franchise advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies or scripts of the advertising matter shall be readily available to staff, consumer advocate, or any party involved in a discovery proceeding.
(3) Labor items related to franchise advertising:
1. Preparing material for newspapers, periodicals, billboards, etc., and preparing and conducting motion pictures, radio, and television programs.
2. Preparing booklets, bulletins, etc., used in direct mail.
3. Preparing window and other displays.
4. Clerical and stenographic work.
5. Investigating advertising agencies and media and conducting negotiations in connection with the placement and subject matter of advertising.
(4) Materials and expenses related to franchise advertising:
1. Advertising in newspapers, periodicals, billboards, radio, etc.
2. Advertising matters such as posters, bulletins, booklets, and related items.
3. Fees and expenses of advertising agencies and commercial artists.
4. Novelties for general distribution.
5. Postage on direct-mail advertising.
6. Printing of booklets, bulletins, etc.
7. Supplies and expenses in preparing advertising materials.
8. Office supplies and expenses.
k. 930.2 Miscellaneous General Expenses.
(9) FERC accounts 421.1 or 421.2 as they are defined and exist in the uniform systems of accounts shall be used to account for the gain or loss on the sale, conveyance, exchange, or transfer of utility or other property, including land and land rights, unless otherwise authorized or required by the commission for good cause shown.
(10) FERC accounts 105 and 105.1 of the uniform systems of accounts 18 CFR Part 201 are modified in subparagraph "D" by deleting the following language: "in FERC account 411.6 or 411.7, as appropriate except when determined to be significant by the commission. Upon such a determination, the amounts shall be transferred to FERC account 256, Deferred Gains from Disposition of Utility Plant, or FERC account 187, Deferred Losses from Disposition of Utility Plant, and amortized to FERC account 411.6, Gains from Disposition of Utility Plant, or FERC account 411.7, Losses from Disposition of Utility Plant, as appropriate," and substituting in lieu thereof: "in FERC account 421.1 or 421.2, as appropriate, unless otherwise authorized or required by the commission for good cause shown."