Utility Accounting Education Update
Here are insights to help keep you current in the business!
utilityeducation.com
February, 2022
This month's newsletter focuses on ESG. ESG is front and center in the electric business and more reporting will become the norm. The SEC will be requiring disclosures for 2023 reporting, FASB has developed position papers on the topics, and GASB always follows FASB, so shortly this will impact all utilities, not just IOUs. We introduce background on the ESG topic and thoughts on jump-starting your approach.
We also have insights on the impact of fixed asset accounting on electric rates. Not a sizzling topic, but one that is common to many co-ops and utilities, maybe yours too.
Shine a light on ESG strategy in financial reports
Wind Farm - the “E” in ESG
ESG is a hot topic in the electric business. Environmental, Social, and Governance (ESG) and sustainable business practices are a key component of electric utility and cooperative strategy. The electric industry spends billions on ESG initiatives, but that spending is buried in your financials due to the way the FERC Chart of Accounts is structured. Here are some insights on how to shine a light on your efforts.
Kayak, or is it CIAC Accounting?
CIAC accounting is recording amounts paid by customers to construct services to provide them with electricity. It doesn't sound complicated, but some of the accounting methods aren't good for your electric rates. Here are some alternatives.
The UAES article library covers introductory and advanced co-op, FERC, and utility accounting, developing electric rates, and financial management. We include practical examples you can use now in your electric cooperative or utility!
How does fixed asset accounting impact rates?
If your fixed asset processes leave a bit to be desired, you're not alone. This is a common issue in many utilities - what's on the books isn't all in the field. The impact on your rates is not good though. We provide some insights and a work plan to move things towards where you'd like them to be.
New to the electric business? Here’s a FREE course on industry basics - finance, operations, and regulation!
Welcome to the Electric Business
Are you new to the electric business and need to get up to speed quickly? This FREE course gives a high level overview of the business - operations, finance, and governance. Be an expert!
Thank you for your support and interest in best practices in accounting, developing electric rates, and financial management. The Power and Utilities Industry is the foundation for a vibrant economy and an integral part of our society!
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See you next month, or check us out anytime at:
Final thoughts for this issue - Winter is almost over!
“If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome.”
“A lot of people like snow. I find it to be an unnecessary freezing of water.”