FERC Accounts 351.1–351.3: Computer Hardware, Software, and Communication Equipment

FERC Accounts 351.1, 351.2, and 351.3 record the cost of computer hardware, computer software, and communication equipment used to support electric transmission system scheduling, system control, and dispatch functions.

Definition

Record in these accounts the cost of computer hardware, computer software, and communication equipment used in the operation of transmission facilities for scheduling, system control, and dispatch. Account 351.1 covers computer hardware, Account 351.2 covers computer software, and Account 351.3 covers communication equipment — each limited to equipment supporting the transmission scheduling, system control, and dispatch function, such as SCADA-type systems, energy management systems, and the data communication equipment that ties them together.

Account 351.1 — Computer Hardware

Includes the physical computer equipment — servers, workstations, data storage, and related hardware — that runs SCADA and energy management system (EMS) applications supporting transmission system control and dispatch.

Account 351.2 — Computer Software

Includes software applications, whether purchased off-the-shelf or developed in-house, used for transmission scheduling, system control, dispatch, and related SCADA/EMS functions. Capitalizable software costs follow the utility's standard policy for distinguishing capitalizable software from expensed licenses and subscriptions.

Account 351.3 — Communication Equipment

Includes the data communication equipment — telemetry, data links, and related communication devices — used to acquire operating data from, and issue control signals to, transmission facilities in support of dispatch and system control.

What is typically included

• Servers, workstations, and data storage hardware running SCADA/EMS applications for transmission dispatch (351.1)
• Purchased and internally developed software used for transmission scheduling, system control, and dispatch (351.2)
• Data acquisition and control communication equipment, such as telemetry and data links, supporting transmission dispatch (351.3)
• Upgrades and replacements of hardware, software, and communication equipment dedicated to the transmission dispatch function

What is generally not included

• General office or administrative computer systems, such as billing, accounting, or enterprise IT hardware and software (Account 391 or 397)
• Distribution-function SCADA hardware, software, and communication equipment where a utility tracks it separately from transmission (recorded in the corresponding distribution plant accounts)
• Generation control systems and equipment (recorded in the appropriate generation plant accounts)
• Routine software licenses or subscription fees that do not meet capitalization criteria and are properly expensed
• Asset retirement costs for transmission plant (Account 359.1)

Why this account matters

• Separates the technology investment supporting transmission dispatch and system control from general office IT and other plant accounts
• Supports accurate useful life and depreciation treatment for rapidly evolving computer hardware, software, and communication equipment
• Required for FERC Form 1 detailed transmission plant reporting
• Helps utilities distinguish capitalizable software costs from expensed licensing and subscription costs
• Keeps transmission technology costs properly separated from the distribution and generation functions for rate-making purposes