Section 57.42. Systems of accounts prescribed

(a) Each Class A and Class B electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)’’ of the Federal Energy Regulatory Commission.

(b) Each Class C electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class C)’’ of the Federal Energy Regulatory Commission.

(c) Each Class D electric public utility shall keep its accounts in conformity with the ‘‘Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class D)’’ of the Federal Energy Regulatory Commission.

The provisions of this § 57.42 adopted February 25, 1946; amended through May 29, 1973; amended January 7, 1983, effective January 8, 1983, 13 Pa.B. 131. Immediately preceding text appears at serial pages (78456) to (78457).

Notation

Authority

The provisions of this § 57.42 issued under Public Utility Code,66 Pa.C.S. § § 331, 501, 504 and 1501.

Notes of Decisions

Federal Energy Regulatory Commission

Although a public utility is required to keep its accounts in conformity with the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC), there is no evidence that the regulations governing the FERC were inextricably tied to or wholly incorporated into the Tax Reform Code (72 P. S. § 8101 et seq.). To the contrary, the FERC’s authority over state matters has been specifically limited such that federal regulation only extends to those matters which are not subject to regulation by the states. Thus, taxation on the ‘‘sales of electric energy’’ was governed by the Tax Reform Code and accordingly the taxability of gross receipts from residential and nonresidential late charges was not governed by the FERC regulations. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).

Gross Receipts

The Federal accounting procedure which the Pennsylvania Code requires the electric utility to follow does not control the court’s interpretation of the Pennsylvania Tax Reform Code; thus, the gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as do gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Board of Finance and Revenue, 717 A.2d 504 (Pa. 1998).

The gross receipts received from the higher rates imposed on late-paying customers constitute payment for the electricity sold as much as gross receipts derived from rates applicable to timely payments. Pennsylvania Power & Light Co. v. Commonwealth, 668 A.2d 620 (Pa. Cmwlth. 1995); affirmed 717 A.2d 504 (Pa. 1998).

Cross References

This section cited in 52 Pa. Code § 57.43 (relating to accounting for merchandising, jobbing and contract work); and 52 Pa. Code § 57.46 (relating to continuing property records).