FERC Account 360: Distribution Land and Land Rights

FERC Account 360 is used to record the cost of land and land rights devoted to electric distribution operations.

Definition

Record in this account the cost of land and land rights used in connection with electric distribution operations.

In practical terms, Account 360 captures the cost of real property interests used for distribution purposes, such as distribution substation sites, easements, and rights-of-way. The account generally reflects the cost of acquiring the land or right, plus related costs necessary to secure and place the property interest into utility service.

What is typically included

• Purchase price of land used for distribution substations, rights-of-way, and other distribution purposes
• Permanent easements and rights-of-way associated with distribution facilities
• Title, legal, survey, appraisal, recording, and related acquisition costs when capitalized
• Damages paid in connection with acquiring land rights
• Costs of clearing title or securing land rights for distribution use

What is generally not included

• Buildings and site improvements recorded in Account 361
• Routine property maintenance, mowing, and similar operating expenses
• Temporary access rights or short-term arrangements charged to expense when appropriate
• Distribution station equipment recorded in Account 362
• Overhead and underground line assets recorded in other distribution plant accounts

Why Account 360 matters

• Supports accurate plant-in-service reporting for property used in distribution operations
• Provides the basis for separating nondepreciable land from depreciable site improvements and utility plant
• Affects continuing property records and retirement accounting when land rights change
• Helps maintain proper classification between land, structures, and equipment in regulatory reporting

Utilities should apply their own capitalization policy, retirement procedures, and continuing property record practices when determining the final accounting treatment for a specific project or transaction.

Examples

Distribution substation site acquisition

A utility purchases a parcel of land for a new distribution substation. The purchase price and related legal and title costs would generally be recorded in Account 360, while fencing, grading, or structures placed on the site would generally be recorded in other applicable accounts.

Easement for overhead distribution line

A utility acquires a permanent easement across private property to construct and operate a distribution line. The cost of obtaining the easement would generally be capitalized to Account 360.

Routine grounds upkeep

A utility performs ordinary mowing and grounds maintenance on an existing site. These costs would generally be charged to expense rather than Account 360.

Related FERC distribution plant accounts

• Account 361 – Structures and Improvements
• Account 362 – Station Equipment
• Account 364 – Poles, Towers, and Fixtures
• Account 365 – Overhead Conductors and Devices
• Account 366 – Underground Conduit
• Account 367 – Underground Conductors and Devices