N.M. Admin. Code § 17.12.720.7
Current through Register Vol. 35, No. 21, November 5, 2024
Section 17.12.720.7 - DEFINITIONSWhen used in this system of accounts unless otherwise specified the following definitions will apply.
A. "Accounts" means the accounts prescribed in this system of accounts.B. "Amortization" means the gradual extinguishment of an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.C. "Associated Companies" means companies or persons that directly or indirectly through one (1) or more intermediaries control, are controlled by, or are under common control with the accounting company.D. "Book Cost" means the amount at which property is recorded in these accounts without deduction of related provisions for accrued depreciation, amortization, or for other purposes.E. "Commission," unless otherwise indicated by the context, means the New Mexico Public Service Commission [New Mexico Public Regulation Commission].F. "Cost" means the amount of money actually paid for property or services. When the consideration given is other than cash, the value of such consideration shall be determined on a cash basis.G. "Cost of Removal" means the cost of demolishing, dismantling, tearing down, or otherwise removing utility plant, including the cost of transportation and handling incidental thereto.H. "Depreciation," as applied to depreciable utility plant, means the loss in service value not restored by current maintenance incurred in connection with the consumption or prospective retirement of utility plant in the course of service from causes which are known to be in current operation and against which the utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand, and requirements of public authorities. (See "Depreciation Accrual Rates.")I. "Minor Items of Property" means the associated parts or items of which retirement units are composed. (See "List of Retirement Units.")J. "Net Salvage Value" means the salvage value of property retired less the cost of removal.K. "Original Cost" as applied to utility plant means the cost of such property to the person first devoting it to public service.L. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, or any organized group of persons whether incorporated or not, or any receiver or trustee.M. "Property Retired," as applied to utility plant, means property which has been removed, sold, abandoned, destroyed, or which for any cause has been withdrawn from service.N. "Replacing" or "Replacement," when not otherwise indicated in the context, means the construction or installation of utility plant in place of property retired together with the removal of the property retired.O. "Retained Earnings" means the accumulated net income of the utility less distributions to stockholders or owners and other adjustments.P. "Retirement Units" means those items of utility plant which, when retired with or without replacement, are accounted for by crediting the book cost thereof to the utility plant account in which included. (See "List of Retirement Units.")Q. "Salvage Value" means the amount received for property retired less any expenses incurred in connection with the sale or in preparing the property for sale; or if retained, the amount at which the material recoverable is chargeable to materials and supplies or other appropriate account.R. "Service Life" means the time between the date utility plant is includable in utility plant in service or utility plant leased to others and the date of its retirement.S. "Utility," as used herein and when not otherwise indicated in the context, means any public utility to which this system of accounts is applicable.N.M. Admin. Code § 17.12.720.7