Federal Energy Regulatory Commission Approves Accounting Entries for Columbia Energy Center Transfer

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has issued a delegated order approving proposed accounting entries for the transfer of ownership shares of the Columbia Energy Center from Wisconsin Public Service Corporation (WPSC) and Madison Gas and Electric Company (MGE) to Wisconsin Power and Light Company (WPL). This approval is based on the applicants' representations and is not intended to influence the outcome of any rate treatment that may be established for this transaction.

Key Takeaways:

  • The Commission authorized the transaction in Docket No. EC17-47-000, which allowed for the transfer of ownership shares of the jointly owned Columbia Energy Center.
  • The proposed accounting entries are approved, clearing the acquisitions from WPSC and MGE through Account 102 and recording the original cost and accumulated depreciation of the assets on WPL's books, consistent with Electric Plant Instruction No. 5, Electric Plant Purchased or Sold.
  • WPL proposes to record combined negative acquisition adjustments of $22,749 in Account 114, Electric Plant Acquisition Adjustments, representing the difference between the net book value of the assets acquired and the consideration paid.
  • WPSC and MGE will clear the sales through Account 102 and remove the original cost and accumulated depreciation of the facilities from their books, consistent with Electric Plant Instruction No. 5.
  • WPSC and MGE also represent that they recognized losses on the sale and propose to record the losses of $18,437 and $4,312, respectively, in Account 421.2, Loss on Disposition of Property.

Statistics:

  • The proposed accounting entries involve a total of $22,749 in combined negative acquisition adjustments.
  • The losses recognized by WPSC and MGE on the sale of the facilities total $18,437 and $4,312, respectively.
  • The Commission authorized the transaction in Docket No. EC17-47-000.
  • The proposed accounting entries are consistent with Electric Plant Instruction No. 5, Electric Plant Purchased or Sold.
  • The Commission's delegation of authority to act on this matter to the Director of the Office of Enforcement or his designee under 18 C.F.R. § 375.311 (2020) has been exercised by the Acting Chief Accountant.

Sources:

  • Wisconsin Power and Light Company et al., 159 FERC 62,248 (2017).
  • 18 C.F.R. Part 101 (2020).
  • Electric Plant Instruction No. 5.
  • 18 C.F.R. § 385.713 (2020).
  • Locust Ridge Gas Company, 29 FERC P 61,052 (1984).
  • Southwestern Public Service Company and New Mexico Electronic Service Company, 23 FERC 61,153 (1983).