Power and Utilities Industry Regulatory Accounting|ASC 980|GASB 62|FERC| Session 2 - Revenue Decoupling, Long-term Obligations, and Discontinuing Regulatory Accounting

Using ASC 980/GASB 62 is an industry best practice in deferring expense and revenue recognition for future customer rates. It is the tool to use in matching accounting standards and FERC accounting best practices. We discuss best practices in some more complex areas of regulatory accounting in power and utilities organizations.

More complex areas of regulatory accounting, including discontinuing regulatory accounting for certain events

Regulatory accounting allows rate recovery of significant events that do not fit your organization's budget timeframes. At times, regulatory accounting must also be discontinued. This course discusses using regulatory accounting for revenue decoupling, contributions in aid of construction, and long term obligations. We also discuss the financial implications and presentations when regulatory accounting is discontinued for items that are no longer recoverable in customer rates.
Regulatory electric accounting

What you'll learn in this course

  • You'll learn the the fundamentals for regulatory accounting under private, electric cooperative, and municipal utility accounting standards (FASB and GASB) and why this is an accounting and ratemaking tool you need to use in your organization.

  • We'll use practical examples to show how GASB 62 and ASC 980 are used in timing of rate recovery of major impacts to expenses and revenues. This includes revenue decoupling, contributions, and long-term pension and post-employment benefits.

  • You will learn the financial impacts of discontinuing regulatory accounting in your organization, including determining regulatory items that will not be recovered in rates, closing journal entries, and financial statement disclosures.

  • You'll take a quiz to reinforce the course materials.

This course is for you if

  • You work in the finance area and are seeking additional tools to recover unexpected expenses over a longer timeframe than the current budget year

  • You need to discontinue regulatory accounting, but need information on how to do it and what journal entries and financial statement disclosures are needed

  • You are a rate analyst and need to understand these transactions to include them in cost of service studies

  • You are an auditor of electric utilities or cooperatives and want insights into more complex areas of power and utilities regulatory accounting

Take the course today, benefit your organization, and build your knowledge and value!

Meet your instructor!

Russ Hissom, CPA

Russ Hissom, CPA, is the owner of Utility Accounting Education Specialists (UAES). He has over 35 years of utility industry experience, serving as a partner in a national public accounting and consulting firm’s energy practice. Russ has worked with electric investor-owned and municipal utilities, and electric cooperatives, learning and leading industry best-practices. Russ brings this wealth of knowledge to every course, article, and book he develops. His speeches before national utility organizations share insights into helping utilities become more efficient and prepare for the “power and utilities organization of the future”. His goal is to provide value to you as an individual in your career development and to your utility/cooperative in these industry-focused areas.

Who should take this course?

  • Finance managers

  • Financial statement preparers

  • Electric rates analysts

  • Budget managers

  • New and senior accountants of your electric utility or cooperative

  • Auditors of electric utilities and cooperatives

What background should I have to take this course?

  • Introductory knowledge of electric industry accounting will enhance your learning experience.

  • Knowledge of electric ratemaking is not necessary, this will be discussed in the course.

  • This class provides you with details on industry best practices in using regulatory accounting to keep electric rates smooth and steady while recognizing these items in the financial statements. Utilities and electric cooperatives of all sizes can use regulatory accounting as part of a systematic short and long-term rate strategy.

What you'll get from this course

  • Course resources

    Over 30 + pages of course materials, including detailed examples and reports

  • Continuing Education Credits - CPE

    2.18 credits of CPE - Final approval of a course for CPE credits is based on the requirements of each states’ regulatory body

  • Analysis and insights

    Best practices in complex areas of power and utilities regulatory accounting including journal entries, financial statement presentations, and examples of notes to the financial statements for each transaction in the year of discontinuing regulatory accounting

Take the course today, benefit your organization, and build your knowledge and value!

Watch Intro Video

Course Highlights

Course Overview

13 videos with reference materials

  • 1

    Course Kickoff!

    • Introduction to regulatory accounting - Session 2 - Introduction

    • Here's a tour of the course player!

    • Course information

    • Utility regulatory accounting - Session 1 recap and Session 2 topics

  • 2

    Chapter 1 - Regulatory Capital Cost Recovery

    • Using regulatory accounting for capital cost recovery

    • Chapter 1 Recap Quiz - Capital cost recovery

  • 3

    Chapter 2 - Regulatory Long-term Liability Cost Recovery

    • Using regulatory accounting to account for long-term liabilities

    • Chapter 2 Recap Quiz - Long-term liabilties

  • 4

    Chapter 3 - Decoupling revenues and power costs

    • Regulatory accounting for decoupling revenues

    • Chapter 3 Recap Quiz - Decoupling

  • 5

    Chapter 4 - Discontinuing Regulatory Accounting

    • Discontinuing regulatory accounting

    • Chapter 4 Recap Quiz - Discontinuing regulatory accounting

  • 6

    Chapter 5 - Course Summary

    • Regulatory accounting - Class summary and wrap-up

    • Please complete this course evaluation - Introduction to regulatory accounting - Session 2

Take the course today, benefit your organization, and build your knowledge and value!

Complete one course and any future courses are 25% off!