N.M. Admin. Code § 17.12.720.15
Current through Register Vol. 35, No. 21, November 5, 2024
Section 17.12.720.15 - OPERATING EXPENSE INSTRUCTIONSA. Maintenance: (1) The cost of maintenance includes contract material, contract labor, materials, overheads, and other expenses incurred in maintenance work. A list of work operations applicable generally to utility plant is included hereunder.(2) Materials recovered in connection with the maintenance of property shall be credited to the maintenance account.(3) If the book cost of any property is carried in account 106, Utility Plant Purchased or Sold, the cost of maintaining such property shall be charged to the account for maintenance, the book cost of which is carried in other utility plant in service accounts. Maintenance of property leased from others shall be treated as provided in Operating Expense Instruction 2. Items: (a) Direct field supervision of maintenance.(b) Inspecting, testing, and reporting on condition of plant specifically to determine the need for repairs, replacements, rearrangements, and changes and inspecting and testing the adequacy of repairs which have been made.(c) Work performed specifically for the purpose of preventing failure, restoring serviceability, or maintaining life of plant.(d) Rearranging and changing the location of plant not retired.(e) Repairing for reuse materials recovered from plant.(f) Testing for, locating, and clearing trouble.(g) Net cost of installing, maintaining, and removing temporary facilities to prevent interruption in service.(h) Replacing or adding minor items of plant which do not constitute a retirement unit. (See Utility Plant Instruction 9.)B. Rents: (1) Expense shall include all rents, including taxes paid by the lessee on leased property, for property used in utility operations.(2) When a portion of property or equipment rented from others for use in connection with utility operations is subleased, the revenue derived from such subleasing shall be credited to the rent revenue account in operating revenues; provided, however, that in case the rent was charged to a clearing account, amounts received from subleasing the property shall be credited to such clearing account.(3) The cost, when incurred by the lessee, of operating and maintaining leased property shall be charged to expense as if the property were owned.(4) The cost incurred by the Lessee of additions and replacements to utility plant leased from others shall be accounted for as provided in Utility Plant Instruction 5.N.M. Admin. Code § 17.12.720.15