Free Power and Utilities Accounting and Finance Tools

Electric Co-op and Utility Interdepartmental Cost Allocation Worksheet

Interdepartmental cost allocations using industry standards like the Three-Point Formula are used to allocate common costs that cannot be directly assigned to a single cost center. Industry standard formulas like the Three-Point have proven to be a best-practice and constant allocator no matter the size of the co-op or utility. This type of allocator is useful when your organization has a number of utility services - electric, gas, water, wastewater, and broadband.

This worksheet includes a template you can use for the Three-point formula and other common allocators for general and administrative expenses.

Download this template now and check your approach to interdepartmental cost allocations. Using standards like this can make budget discussions easier, since the allocators are based on the business contribution of each cost center, backed up by math and industry standards.!