N.M. Admin. Code § 17.12.720.21

Current through Register Vol. 35, No. 21, November 5, 2024

Section 17.12.720.21 - OPERATIONS AND MAINTENANCE EXPENSE ACCOUNTS

A. Source of Supply Expenses:

(1) 601 - Purchased Water.

(a) This account shall include the cost at the point of delivery of water purchased for resale. This includes charges for readiness to serve and the portion applicable to each accounting period of annual or more frequent payments for the right to divert water at the source of supply.

(b) The records supporting this account shall be so kept as to show for each supplier from which water is purchased, point of delivery, quantity purchased, basis of charges, and the cost of water purchased.

(2) [RESERVED]

B. Pumping Expenses:

(1) 622 - Fuel or Power Purchased for Pumping:

(a) This account shall include the cost of fuel or power purchased used directly in operation of pumps.

(b) This account shall also include the cost of power transferred to water pumping operations from other departments under joint facility arrangements.

(c) Item:

(i) Diesel fuel.

(ii) Electric power.

(iii) Gasoline.

(iv) Gas.

(v) Other fuel or power.

(vi) Steam.

(2) [RESERVED]

C. Water Treatment:

(1) 631 - Chemicals:

(a) This account shall include the cost of all chemicals used in the treatment of water. Include also the entire cost of any chemicals manufactured by the utility.

(b) Items:

(i) Activated carbon.

(ii) Ammonia.

(iii) Caustic soda.

(iv) Chlorine.

(v) Copper sulphate.

(vi) Fluorine compound.

(vii) High test hypochlorite.

(viii) Iron sulphate.

(ix) Lime.

(x) Soda ash.

(xi) Sodium chlorite.

(xii) Sulphate of alumina.

(xiii) Sulphuric acid.

(xiv) Other chemicals.

(2) [RESERVED]

D. General Expenses: Salaries:

(1) 920.1 - Salaries Paid to Owner(s): This account shall include the compensation (salaries, bonuses, and other consideration for services) of owners of the utility properly chargeable to utility operations.

(2) 920.2 - Salaries Paid to Other Employees: This account shall include the compensation (salaries, wages, bonuses, and other consideration for services) of employees of the utility, permanent or temporary and other than the owner(s), properly chargeable to utility operations.

(3) 921 - Administrative and Office Expenses:

(a) This account shall include office supplies and other expenses incurred in connection with the general administration of the utility's operations which are assignable to specific administrative or general departments and are not specifically provided for in other accounts.

(b) Items:

(i) Bank messenger and service charges.

(ii) Books, periodicals, bulletins, and subscriptions to newspapers, newsletters, tax services, etc.

(iii) Building service expenses for customer accounts, sales, and administrative and general purposes.

(iv) Communication service (telephone, etc.)

(v) Cost of individual items of office equipment used by general departments which are of small value or short life.

(vi) Membership fees and dues in trade, technical, and professional associations paid by utility for employees. (Company memberships are includable in account 930.)

(vii) Office supplies and expenses.

(viii) Payment of court costs, witness fees, and other expenses of legal department.

(ix) Postage, printing, and stationery.

(x) Meals, traveling, and incidental expenses.

(4) 922 - Maintenance, Repairs, and Supplies: This account shall include all Transmission and Distribution expenses, including supplies and expenses associated with the operation and maintenance of all utility plant, such as wells, reservoirs, tanks, mains, services, hydrants, meters, pumps, water treatment equipment, etc., and including contract labor and equipment costs.

(5) 923 - Outside Services Employed:

(a) This account shall include the fees and expenses of professional consultants and others for general services which are not applicable to a particular operating function nor to other accounts. It shall also include the pay and expenses of persons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the utility.

(b) This account shall be so maintained as to permit ready summarization according to the nature of service and the person furnishing the same.

(c) Items:

(i) Fees, pay, and expenses of accountants and auditors, actuaries, appraisers, attorneys, engineering consultants, management consultants, negotiators, public relations counsel, tax consultants, etc.

(ii) Supervision fees and expenses paid under contracts for general management services.

(6) 924 - Property Insurance:

(a) This account shall include the cost of insurance or reserve accruals to protect the utility against losses and damages to owned or leased property used in its utility operations It shall also include the cost of labor and related supplies and expenses incurred in property insurance activities.

(b) Recoveries from insurance companies or others for property damages shall be credited to that account charged with the cost of the damage. If the damaged property has been retired, the credit shall be to the appropriate account for accumulated provision for depreciation.

(c) Records shall be kept so as to show the amount of coverage for each class of insurance carried, the property covered, and the applicable premiums. Any dividends distributed by mutual insurance companies shall be credited to the accounts to which the insurance premiums were charged.

(d) Items:

(i) Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and similar insurance.

(ii) Amounts credited to account 265, Operating Reserve, for similar protection.

(iii) Special costs incurred in procuring insurance.

(iv) Insurance inspection service.

(v) Insurance counsel brokerage fees and expenses.

(7) 926 - Employees Pensions and Benefits:

(a) This account shall include pensions paid to or on behalf of retired employees, or accruals to provide for pensions, or payments for the purchase of annuities for the purpose when the utility has definitely, by contract, committed itself to a pension plan under which the pension funds are irrevocably devoted to pension purposes, and payments for employee accident, sickness, hospital, and death benefits, or insurance therefor. Include, also, expenses incurred in medical, educational, or recreational activities for the benefit of employees and administrative expenses in connection with employee pensions and benefits.

(b) The utility shall maintain a complete record of accruals or payments for pensions and be prepared to furnish full information to the Commission of the plan under which it has created or proposes to create a pension fund and a copy of the declaration of trust or resolution under which the pension plan is established.

(c) There shall be credited to this account the portion of pensions and benefits expenses which is applicable to nonutility operations or which is charged to construction unless such amounts are distributed directly to the accounts involved and are not included herein in the first instance.

(d) Records in support of this account shall be kept so that the total pensions expense, the total benefits expense, the administrative expenses included herein, and the amounts of pensions and benefits expenses transferred to construction or other accounts will be readily available.

(e) Items:

(i) Payment of pensions under a nonaccrual of nonfunded basis.

(ii) Accruals for or payments to pension funds or to insurance companies for pension purposes.

(iii) Group and life insurance premiums (credit dividends received).

(iv) Payments for medical and hospital services and expenses of employees when not the result of occupational injuries.

(v) Payments for accident, sickness, hospital, and death benefits or insurance.

(vi) Payments to employees incapacitated for service or on leave of absence beyond periods normally allowed when not the result of occupational injuries or in excess of statutory awards.

(vii) Expenses in connection with educational and recreational activities for the benefit of employees.

(f) Note A: The cost of labor and related supplies and expenses of administrative and general employees who are only incidentally engaged in employee pension and benefit activities may be included in account 920 and 921, as appropriate.

(g) Note B: Salaries paid to employees during periods of nonoccupational sickness may be charged to appropriate account 920.2 or 922.

(8) 928 - Regulatory Commission Expenses:

(a) This account shall include all expenses (except pay of regular employees only incidentally engaged in such work properly) includable in utility operating expenses, incurred by the utility in connection with formal cases before regulatory commission or other regulatory bodies, or cases in which such a body is a party.

(b) Amounts of regulatory commission expenses which by approval or direction of the Commission are to be spread over future periods shall be charged to account 183, Other Deferred Debits, and amortized by charges to this account.

(c) The utility shall be prepared to report the cost of each formal case.

(i) Salaries, fees, retainers, and expenses of counsel, solicitors, attorneys, accountants, engineers, clerks, attendants, witnesses, and others engaged in the prosecution of, or defense against, petitions or complaints presented to regulatory bodies, or in the valuation of property owned or used by the utility in connection with such cases.

(ii) Office supplies and expenses, payments to public service or other regulatory commissions, stationery and printing, traveling expenses, and other expenses incurred directly in connection with formal cases before regulatory commissions.

(9) 930 - Miscellaneous General Expenses:

(a) This account shall include the cost of labor and expenses incurred in connection with the general management of the utility not provided for elsewhere.

(b) Items: Expenses:

(i) Industry association dues for company memberships.

(ii) Contributions for conventions and meetings of the industry.

(iii) Institutional or goodwill advertising. (See note below.)

(iv) Public notices of financial, operating, and other data required by regulatory statutes, not including, however, notices required in connection with security issues or acquisitions of property.

(10) Transportation Expenses:

(a) This account shall include the cost of labor, materials used, and expenses incurred in the operation and maintenance of general transportation equipment of the utility.

(b) Items:

(i) Insurance on transportation equipment.

(ii) License fees for vehicles and drivers.

(iii) Rents for equipment and garages.

(iv) Repairs of transportation equipment.

(v) Supplies such as gas, oil, tires, tubes, grease, etc.

(c) Note: Transportation expenses applicable to construction shall not be included in operating expenses.

N.M. Admin. Code § 17.12.720.21

Recompiled 12/30/01