The FERC issued a Notice of Inquiry (NOI) on December 16th to assess the rate recovery, reporting and accounting treatment of industry association dues and certain civic, political, and related expenses. The NOI also evaluates the ratemaking impact of potential accounting and reporting developments and whether increased disclosure or guidance is needed concerning defining donations for charitable, social, or community welfare purposes. The notice also considers whether modifications are necessary to guarantee those expenses are appropriately accounted for and recovered in rates. {expires: 2022-02-23}
The FERC does not have a clear line that separates recoverable expenses and those excluded from rate recovery. However, based on information provided by the industry associations concerning their activities and related costs, the FERC allows regulated entities to determine how much of their industry association dues to include in either accounts. In most cases, the FERC considers the appropriate delineation between the two classes of expenses on an individual basis and makes determinations based on the facts presented.
Interested parties may submit responses to the notice until February 22, 2022. Methods for submitting feedback are detailed in the FERC Notice published in the Federal Register. For more information, contact Mary O’Driscoll via email at mediadl@ferc.gov, or by phone at (202) 502-8680.
Sources:
FERC Seeks Comment on Recovery, Reporting of Industry Dues, Expenses (ferc.gov)
Rate Recovery, Reporting, and Accounting Treatment of Industry Association Dues and Certain Civic, Political, and Related Expenses (federalregister.gov)
