DEPARTMENT OF ENERGY, LABOR, AND ECONOMIC GROWTHLICENSING AND REGULATORY AFFAIRS
MICHIGAN PUBLIC SERVICE COMMISSION
UNIFORM SYSTEM OF ACCOUNTS FOR MAJOR AND NONMAJOR ELECTRIC UTILITIES
Filed with the secretary of state on
These rules become effective on January 1, 2025.These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.
(By authority conferred on the Michigan public service commission by section 5 of 1919 PA 419, MCL 460.55)
R 460.9002 and R 460.9003 of the Michigan Administrative Code are amended, as follows:
R 460.9002 Adoption by reference of federal standards.
Rule 1. (1) The federal uniform system of accounts for major and nonmajor electric utilities promulgated by the United States Federal Energy Regulatory Commission federal energy regulatory commission and codified at 18 CFR part Part 101, as amended through April 1, 202410 and by Volume 88, Federal Register, Number 192, pages 69294 to 69388 (Oct. 5, 2023), is adopted by reference in these rules as of January 1, 202511. The rules are prescribed for the use of all electric utilities under the jurisdiction of the Michigan public service commission, subject to the following exceptions and conditions unless otherwise ordered by the Michigan public service commission:
(a) All orders and practices of the Michigan public service commission in effect as of the effective date of this rule with accounting impacts that conflict with provisions of the uniform system of accounts for major and nonmajor electric utilities at the request of or affecting each specific utility shall remain in effect, and future orders and practices with such impacts shall supersede the provisions of the uniform system of accounts for major and nonmajor electric utilities for Michigan retail jurisdictional purposes in this state.
(b) All references to federal statutes, federal regulations, and other federal documents are inapplicable where they are not applicable to the jurisdiction exercised by the Michigan public service commission.
(c) Nothing in these rules shall affects the validity of accounting practices approved in Michigan public service commission orders issued prior to before the effective date of these rules. Utilities subject to any such orders may conform the related accounts to the updated accounts adopted by these rules, with notice to the commission.
(d) The Michigan public service commission may authorize electric utilities to utilize account numbers not listed in the federal energy regulatory commission's uniform system of accounts for major and nonmajor electric utilities.
(e) The electric utilities under the jurisdiction of the Michigan public service commission shall apply to the Michigan public service commission for Michigan retail jurisdictional use of the following accounts:
(i) Account 182.1 - Extraordinary property losses.
(ii) Account 182.2 - Unrecovered plant and regulatory study costs.
(iii) Account 182.3 - Other regulatory assets.
(iv) Account 254 - Other regulatory liabilities.
(v) Account 407 - Amortization of property losses, unrecovered plant and regulatory study costs.
(vi) Account 407.3 - Regulatory debits.
(vii) Account 407.4 - Regulatory credits.
(f) In addition to the accounts listed in 18 CFR Part part 101 (202410), the following accounts shall be are adopted in order to maintain consistency with accounts previously required by the Michigan public service commission:
(i) Account 246 - Federal income taxes accrued for prior years.
(ii) Account 246.1 - State and local taxes accrued for prior years.
(iii) Account 247 - Federal income taxes accrued for prior years - adjustments.
(iv) Account 247.1 - State and local taxes accrued for prior years - adjustments.
(2) Each electric utility subject to this rule shall file the following with the Michigan public service commission:
(a) In utility filings and other correspondence with the Federal Energy Regulatory Commission federal energy regulatory commission or its staff, on and after the effective date of this rule, regarding the utility's accounting practices or the uniform system of accounts for major and nonmajor electric utilities, including, but not limited to, requests for accounting guidance and or approval of accounting entries, or both, the portion of the initial filing or correspondence by the utility relating to accounting practices or the uniform system of accounts for major and nonmajor electric utilities, and the final disposition of the matter.
(b) In other changes in the utility's accounting practices prompted by the federal energy regulatory commission Federal Energy Regulatory Commission orders, directives, or correspondence, a written explanation of the change in practice.
(c) In the regular periodic or special compliance audits performed on and after the effective date of this rule by the federal energy regulatory commission or its staff, notification of the commencement of the audit and a copy of the final audit report.
(3) The adopted regulations are available via the internet at www.govinfogpoaccess.gov/app/collection/cfr/ at no charge as of the time of the adoption of these rules. A printed copy of the code of federal regulations, Title 18, Conservation of power and water resources, parts 1-399, revised as of April 1, 202410, is available from the United States government printing office, 732 N. North Capitol Street, NW North West, Washington, DC D.C. 20401, or by telephone at 1-866-512-1800 (toll free) or 202-512-1800 for a cost of as of the time of the adoption of these rules of $68.00. The uniform system of accounts may also be purchased online at http://bookstore.gpo.gov/, or from the Michigan Department of Energy, Labor, and Economic Growth Licensing and Regulatory Affairs, Michigan Public Service Commission, P.O. Box 30221 7109 West Saginaw Highway, Lansing, Michigan, 4890917 for a cost as of the time of adoption of these rules of $68.00, plus shipping and handling.
R 460.9003 Adoption by reference of federal standards.
Rule 1. (1) The federal uniform system of accounts for rural utilities service electric borrowers promulgated by the United States Department of Agriculture and codified at 7 CFR 1767, as amended through January 1, 202410, is adopted by reference in these rules as of January 1, 202511. The rules are prescribed for the use of electric cooperatives under the jurisdiction of the Michigan public service commission, subject to the following exceptions and conditions, unless otherwise ordered by the Michigan public service commission:
(a) The rules shall do not apply to electric cooperatives that have elected to be member-regulated and have complied with the requirements of the MCL 460.31 et seq. electric cooperative member-regulation act, 2008 PA 167, MCL 460.31 to 460.39.
(b) The federal uniform system of accounts for rural utilities service electric borrowers shall supersedes the federal system of accounts for major and nonmajor electric utilities if there is in the event of a conflict.
(c) All orders and practices of the Michigan public service commission in effect as of the effective date of this rule with accounting impacts that conflict with provisions of the uniform system of accounts for rural utilities service electric borrowers at the request of or affecting each specific utility shall remain in effect, and future orders and practices with such impacts shall supersede the provisions of the uniform system of accounts for rural utilities service electric borrowers for Michigan retail jurisdictional purposes in this state.
(d) All references to federal statutes, federal regulations, and other federal documents are inapplicable where they do not apply are not applicable to the jurisdiction exercised by the Michigan public service commission.
(2) Each electric cooperative subject to this rule shall file the following with the Michigan public service commission:
(a) In utility filings and other correspondence with the United States Department of Agriculture or its staff, on and after the effective date of this rule, regarding the utility's accounting practices or the uniform system of accounts for rural utilities service electric borrowers, including, but not limited to, requests for accounting guidance and or approval of accounting entries, or both, the portion of the initial filing or correspondence by the utility relating to accounting practices or the uniform system of accounts for rural utilities service electric borrowers, and the final disposition of the matter.
(b) In other changes in the utility's accounting practices prompted by the United States Department of Agriculture orders, directives, or correspondence, a written explanation of the change in practice.
(c) In the regular periodic or special compliance audits performed on and after the effective date of this rule by the United States Department of Agriculture or its staff, notification of the commencement of the audit and a copy of the final audit report.
(3) The adopted regulations are available via the internet at www.govinfogpoaccess.gov/app/collection/cfr/ at no charge as of the time of the adoption of these rules. A printed copy of the code of federal regulations, Title 7, Agriculture, parts 1700-1799, revised as of January 1, 202410, is available from the United States government printing office, 732 N. North Capitol Street, NW North West, Washington, DC D.C. 20401, or by telephone at 1-866-512-1800 (toll free) or 202-512-1800 for a cost of as of the time of the adoption of these rules of $5568.00. The uniform system of accounts may also be purchased online at http://bookstore.gpo.gov/, or from the Michigan Department of Energy, Labor, and Economic Growth Licensing and Regulatory Affairs, Michigan Public Service Commission, P.O. Box 30221 7109 West Saginaw Highway, Lansing, Michigan, 4890917 for a cost as of the time of adoption of these rules of $5568.00, plus shipping and handling.