Utility Accounting 101

Utility Accounting 101

October 27-28 or Nov 16-17, 2022 | Online :: Central Time

Utility Accounting takes fundamental accounting concepts around financial reporting and adds a layer of complexity through regulatory and compliance requirements.  Public Utilities have rates set by State and Federal commissions to ensure that they recover prudently incurred costs and earn a reasonable rate of return that does not overly burden the ratepayer.

However, state and federal environmental regulations put the electric and gas industries in the unenviable position of encouraging their customers to reduce power usage creating loss of traditional revenues.  These regulatory and compliance nuances result in some very interesting accounting treatment.

This course will introduce you to these regulatory requirements, the generally accepted accounting principles (GAAP) unique to regulated entities, the capital intensive nature of the industry, which may result in an unconventional balance sheet presentation, and the challenge of complying with GAAP, State and Federal Commission rulings, and the Securities and Exchange Commission (SEC), effectively requiring maintenance of multiple sets of books to address variations in reporting requirements.

Learning Outcomes  

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

  • Navigate the requirements of ASC 980: Regulated Operations
  • Identify utility specific accounts in a set of financial statements
  • Recognize utility specific disclosures in an annual 10-K filing with the SEC
  • Define terms such as CWIP, CIAC, AFUDC, REC, DSM, REST, PPA and PPFAC
  • Discuss accounting treatment for unbilled revenue, net-metering tariffs and cost recovery mechanisms
  • Explain the difference between shareholder and ratepayer expenses
  • Explain the concept of designing rates to recover prudently incurred costs and a reasonable return
  • Review a FERC rate order for accounting implications
  • List key differences between accounting for regulated and non-regulated entities
  • Define the reporting variations between FERC, GAAP and SEC.
  • Navigate FASB, FERC, FPSC (as an example of a State Commission) and SEC websites
  • Discuss the changing outlook for the Utility industry and the possible accounting implications
  • Identify financial reporting tools common to the Utility industry


Thursday, October 27 OR Wednesday, November 16, 2022 : Central time

8:45 – 9:00 a.m.
Log In and Welcome

12:00 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:30 p.m.
Course Timing

9:00 – 9:15 a.m. :: Course Introductions and Objectives

  • Benchmark Course Participants’ Utility and Accounting Knowledge

9:15 – 10:15 a.m. :: Utility Accounting in a Nutshell

  • Capital Intensive Industry
    • Property, Plant and Equipment (PP&E) largest asset balance
    • PP&E is the primary driver when determining rates
  • Typical Revenue Streams – Vertically Integrated Utility
    • Define vertically integrated
    • Define “above the line”, “below the line”
    • Retail revenue
    • Wholesale revenue
    • Other operating revenue
    • Non-operating revenue
  • Unbilled Revenue – Retail Rates
    • Estimating revenue for usage since last bill date
  • Net Metering
  • Common Utility Terms
    • Construction Work in Progress (CWIP)
    • Contributions in Aid of Construction (CIAC)
    • Allowance for Funds Used During Construction (AFUDC)
    • Renewable Energy Credits (REC)
    • Demand Side Management (DSM)
    • Renewable Energy Standards Tariff (REST)
    • Purchased Power Agreement (PPA)
    • Purchased Power and Fuel Adjuster Clause (PPFAC)
  • FERC vs. GAAP vs. SEC

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:00 p.m. :: Regulatory Accounting, A Deeper Dive – Focus on GAAP

  • Review ASC 980 Provisions
    • Requirements that allow application of guidance
    • Regular evaluation of compliance
  • Accounting for Regulatory Assets and Liabilities
    • Cost deferral unique to regulatory accounting
    • Deferral of gains and losses when retiring certain debt
  • If recovery is Probable but not Currently Approved in Base Rates
    • “Return of” and “return on”

12:00 – 1:00 p.m. :: Lunch break

1:00 – 2:45 p.m. :: Review SEC Form 10-K Financial Statements

  • Identify Utility Specific Accounts and Disclosures
    • What accounts are listed first on the Balance Sheet?
    • Why are long-term assets listed before current assets?
    • What is “the line” on the Income Statement?
    • What is the primary information disclosed in the Regulatory footnote?
    • What utility specific accounting treatment is referenced in the Accounts Receivable footnote
    • Where are AROs disclosed?

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:30 p.m. :: Environmental Compliance Changing the Industry

  • Clean Energy Regulations
    • Critics of coal-fired generation
      • State requirements may differ from Federal regulation
      • Renewable energy mandates
      • Energy Efficiency programs – required to encourage less power usage through efficiency incentives, energy efficient appliances, SMART homes
  • Customers Purchasing Solar Panels (Generating Portions of Their Own Power, Reducing Traditional Consumption Based Revenues)
  • Accounting Consequences
    • Early retirement of plant assets
      • Change in rate structure to include more fixed charges
      • Recovery mechanisms to address lost revenues
      • Pursuing more non-traditional revenues, possibly requiring FERC approval, and creating accounting research

Friday, October 28 OR Thursday, November 17, 2022 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Course Timing

9:00 – 10:15 a.m. :: CASE STUDY – Review Accounting Impacts from a Rate Order

  • Rate Design vs. Revenue Requirement
    • New tariffs or riders impacting customer billing
    • Approval of new recovery mechanisms or amendments to existing mechanisms
    • Requirements to defer recognition/recovery of certain costs
      • Significant one-time costs recovered over time (minimizes rate shock)
        • Amortize over Commission approved recovery period
      • Commission tables/defers approval to recover certain costs until the next rate case
        • No amortization
    • Other Provision
      • Merger conditions
        • Primary concern of State Commission is protecting the ratepayer
        • Merger costs, as one-time expenses, are typically not recoverable through based rates and not FERC recoverable – excluded when calculating transmission rates
        • Other provisions to limit inequitable benefit between shareholders/executives and ratepayers

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:00 p.m. :: Navigating Industry Websites and Common Accounting Tools

  • Polling Questions 
    • Accounting system used
    • Familiarity with Industry websites
    • Company auditor
  • Key Information on ACC, FASB, FERC and SEC Websites
  • Auditor Accounting Resources – Deloitte Focus
    • Deloitte Accounting Research Tool (DART)
      • GAAP guidance organized by the Accounting Standards Codification (ASC) topics
      • SEC reporting requirements
      • Roadmaps – interpretive guidance on specific topics

Wrapping Up: Questions and Concluding Remarks


Jennifer L. Walker, CPA
Director of Corporate Accounting
Florida Power and Light Company
Master of Business Administration – University of Phoenix
Bachelor of Science, Accounting – Pennsylvania State University

Jennifer Walker joined Florida Power and Light Company in 2012 in the revenue accounting department, as an Accountant I.  Since then, she has worked various departments and held various positions, most recently serving as the Director of Corporate Accounting in the Financial Center of Excellence.  Jennifer earned her CPA in January 2014.  Jennifer has a strong passion for learning and teaching as she believes that education is the one thing that no one can ever take from you.

In addition to her day job, Jennifer is also passionate about improving her communication skills through Toastmasters, an organization that helps to improve leadership and communication.  In 2020, she received her Distinguished Toastmaster Designation, the highest achievement in the Toastmasters organization.  In her spare time pre-COVID, Jennifer loves to travel, her most recent trip was to the Amalfi Coast in Italy.

Jennifer is accountable for the reconciliation of FPL-related Workers Compensation and other benefits accounts. She was instrumental in creating variance analysis reporting for upper management during the critical close period while also being responsible for reconciling balance sheet accounts, creating ad hoc reports using SAP BW and creating budget to actual variance analysis. Jennifer has taught multiple accounting courses and workshops through the University of Phoenix on various accounting and finance topics.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.


This course will be held on both October 27-28, 2022 and November 16-17, 2022 in an online format. Your registration will allow you entry into either set of dates. Attendee login links will be sent via email upon registration and will include both session login links. However, attendance will be monitored, and you will only be able to attend one of the sessions, not both.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event


Utility Accounting 101

November 16-17, 2022 | Online
Individual attendee(s) - $ 1195.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)
Pack of 10 attendees - $ 8,365.00 (30% discount)
Pack of 20 attendees - $ 14,340.00 (40% discount)

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before September 26, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800




EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.9 CEUs for this event

Requirements for Successful Completion of Program 

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

Power point presentations and open discussion and question and answer sessions

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 10.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org


Who Should Attend 

This course is primarily designed for accounting and finance personnel who may be new to the Utility Industry or transitioning into an accounting/finance role and wish to obtain a basic understanding of accounting for electric and gas utilities.

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