Serving the energy industry for over 30 years
By - Jon Brown

FERC Accounting 101
The Basics of the Uniform System Of Accounts (USofA) for Electric and Gas Utilities
January 22-23, 2020 | Costa Mesa, CA

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The overriding purpose of the Uniform System of Accounts (USofA) is to ensure uniformity and consistency in the reporting of the accounting transactions in the books and records of electric and gas utilities. Uniformity and consistency are important not only for regulators, but also for other parties requiring accounting information, such as utility management, shareholders, creditors and other parties to rate proceedings. Therefore, it is beneficial to anyone whose work involves public utilities to have a basic understanding of the FERC USofA since it is applicable both at the federal and state level.

This training in the basics of the FERC USofA will contain several modules, each one capsulizing a key component of the USofA. The course will highlight the development of the accounting system prescribed by FERC for electric and gas utilities. It will focus on the role of the USofA, the components of the USofA, and the role of USofA in the rate making (setting utility prices) process. To provide the attendees hands-on experience with the USofA, the final module in the course will contain classroom problems for the attendees to calculate using USofA accounts for the numerical impact of early retirement of utility plant as well as, calculating a utility’s revenue requirement from USofA account balances.

Learning Outcomes

Upon completion of this course, participants will be able to successfully:

  • Define public utilities and how their accounting system are unique
  • Describe government agencies’ regulatory authority over public utilities and how they apply the USofA to electric and gas utilities
  • Explain the role of accounting in public utilities
  • Demonstrate the structure and usage of the FERC Uniform System of Accounts for electric and gas utilities
  • Investigate Balance Sheet Accounts
  • Identify major categories of plant investments
  • Examine Income Statement Accounts
  • Explain the accounting for utility property process and depreciation accounting
  • List major categories of expenses
  • Classify the concepts of capital versus expense
  • Review USofA Financial Statements in the FERC Form No. 1 for electric utilities and the FERC Form No. 2 for gas utilities
  • Explain the work order process and project accounting
  • Examine the key concepts of Public Utility Depreciation
  • Review Construction Work in Progress (CWIP) and Allowance of Funds Used During Construction (AFUDC)
  • Discuss early retirement of utility plant and its associated accounting impacts
  • Define the impairment of utility assets
  • List key differences between USofA accounting and Generally Accepted Accounting Principles (GAAP)
  • Define the role of the USofA in the ratemaking process



EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this event.


Requirements for a Successful Completion of Program

Participants must sign in/out each day and be in attendance for the entirety of the course.

Instructional Methods

This program will use PowerPoint Presentations, group discussions, as well as active participation.


Wednesday, January 22, 2020

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 8:45 a.m. :: Course Introductions and Objectives

8:45 a.m. – 9:45 a.m. :: Reviewing Public Utilities Regulations

  • Development of Public Utility Regulation
  • What is a Public Utility and What Makes their Accounting System Unique?
  • Regulating Public Utilities and the Impact on their Accounting Systems
    • Books and records
    • Accounting entries for requested transactions
      • Sales
      • Acquisitions
      • Gains
      • Losses
      • Refunds
      • Cost assignment and allocation (CAAM)
  • The Role of Accounting in Public Utilities
    • Transparency
    • Uniformity between utilities for regulatory review

 9:45 a.m. – 10:00 a.m. :: Break

10:00 a.m. – 12:00 p.m. :: Understanding FERC Uniform System of Accounts (USofA): Electric and Gas Utilities

Bode Sanni, Office of the Administrative Law Judges and Dispute Resolution, Federal Energy Regulatory Commission

  • Development of the USofA
  • FERC USofA
  • Definitions
  •  Instructions:
    • General instructions
    • Plant instructions
    • Operating expense instructions

12:00 – 1:00 p.m. :: Group Luncheon

1:00 p.m. – 1:15 p.m. :: Differentiating between USOA Accounting and Generally Accepted Accounting Principles (GAAP)

  • Schedule M timing – temporary and permanent differences
  • Other

1:15 p.m. – 2:45 p.m. :: Building Balance Sheet Accounts, Part 1

  • What are the Balance Sheet Accounts?
  • Balance sheet accounts classifications
  • Major categories of utility plant
    • Electric plant
      • Intangible plant
      • Generation
      • Transmission
      • Distribution
      • General plant
    • Gas Plant
      • Intangible plant
      • Production plant
      • Natural gas storage and processing plant
      • Transmission
      • Distribution
      • General plant

  2:45 p.m. – 3:00 p.m. :: Afternoon Break

3:00 p.m. – 4:30 p.m. :: Building Balance Sheet Accounts, Part 2

  • FERC Form No 1 and No 2 Balance Sheets
  • Creating Income Statement Accounts
    • What are the Income Statement Accounts?
    • How are revenue and expenses accounts classified?
    • FERC Form No. 1 and No. 2 Income Statements
  • Classifying capital versus expense

Thursday, January 23, 2020

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 10:15 a.m. :: Accounting for Utility Plant

  • Work Order Systems
    • What is a work order?
    • Work order content
    • Initiating the work order
    • Closing out the work order
  • Records and Progress
    • Continuing property records
      • What are Continuing Property Records (CPRs)?
      • What Information Provided by a CPR System
      • What are the Uses of CPRs
    • Public utility depreciation
    • Construction Work in Progress (CWIP)
    • Allowance of Funds Used During Construction (AFUDC)
    • Early retirement of utility plant
    • Impairment of utility assets
      • Regulatory assets
      • Regulatory liabilities

 10:15 a.m. – 10:30 a.m. Break

10:30 a.m. – 12:00 p.m. :: Ratemaking Process and Role of the USofA

  • Historical cost and ratemaking
  • Revenue requirements
  • Problem-solving using USofA
    • Calculating the impact of an early retirement of utility property using USofA Financial Statements
    • Calculating the revenue requirement for electric and gas utilities using the USofA accounting records

12:00 p.m. -12:15 p.m. Wrapping Up: Questions and Concluding Remarks


Bode Sanni, Office of the Administrative Law Judges and Dispute Resolution, Federal Energy Regulatory Commission

Mr. Sanni is an Energy Industry Analyst in the Office of the Administrative Law Judges and Dispute Resolution (OALJDR) at FERC. He serves as a subject matter expert and advisor to the Administrative Law Judges on utility accounting and finance matters in hearings and settlement cases at the Commission. Prior to serving in the OALJDR, Mr. Sanni also worked as a regulatory accountant in the Office of Enforcement at FERC, leading various accounting projects that required applying professional accounting principles and techniques to solve complex accounting and financial reporting policy matters involving but not limited to acquisitions and dispositions of jurisdictional facilities; rate filings; and gas certificate applications.

Before coming to FERC, Mr. Sanni has previously served in various accounting and finance roles including the public accounting, consulting and energy industries. He has a Bachelor of Science Degree in Accounting and Business from the State University of New York at Plattsburgh and is also a licensed Certified Public Accountant in the State of New York.

Bill Steele, President, Bill Steele and Associates

Mr. Steele has over 40 years of experience in public utility regulation in which he has acquired an extensive knowledge of electric, gas and telecommunications industries. Mr. Steele’s has expertise in utility accounting, revenue requirements, cost allocation, class cost-of-service studies, rate design, cost-of-capital, alternative forms of regulation, mergers and acquisitions.

Prior to forming Bill Steele and Associates LLC in May of 2012, he spent 34 years with the Colorado Public Utilities Commission (CPUC) as an advisor to the Commissioners, Mr. Steele served as an advisor to the three Colorado Public Utilities Commissioners and the Commission’s six Administrative Law Judges. Mr. Steele demonstrated his broad expertise in the areas of electricity and natural gas utility regulation, which included the areas of revenue requirements, cost-of-service analysis and rate design. He also served in the role as the Commission’s subject matter expert in utility accounting and finance matters.

In addition, Mr. Steele’s advisory responsibilities included the training of new Commissioners as well as conducting in-house training courses on various utility issues, such as how to apply traditional regulatory principles to emerging issues in public utility regulation.

Prior to becoming a commission advisor, Mr. Steele supervised the Financial Analysts’ in the Commission’s Fixed Utilities Section for 17 years. His duties in that role included the training of new financial analysts, supervising audits of utility accounting systems, management practices, special investigations, as well as, providing expert testimony in over 50 regulatory proceedings on policy issues concerning accounting, financial, and management issues.

On January 5, 2018, Colorado Governor Hickenlooper by Executive Order (A 2008 002) appointed Mr. Steele to serve as a representative of small business on the Utility Consumers Board (UCB). Mr. Steele as a board member of UCB, provides to the Office of Consumer Counsel general policy guidance on matters that involve utility regulation and legislative matters.


Hilton Costa Mesa

3050 Bristol St.

Costa Mesa, CA 92626

Reserve your room:

please call 1-714-540-7000

click here to book online

Room Block Reserved For:

Nights of January 21 – 22, 2020

Room rate through EUCI:

$178.00 single or oduble single or double plus applicable taxes
Make your reservations prior to December 31, 2019.


Event Standard RateAttendees

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