Ferc Account 370

FERC Account 370 is used to record the installed cost of meters used to measure electric service.

Definition

Record in this account the cost installed of meters and meter installations used in electric distribution operations.

Account 370 generally captures the utility-owned metering equipment installed to measure customer electricity use. Depending on utility practice, this may include meter bases, current transformers, communication components, and advanced metering equipment that are integral to the metering installation.

What is typically included

• Residential, commercial, and industrial meters
• Advanced metering infrastructure devices when classified as metering plant
• Meter sockets, instrument transformers, and related equipment integral to the installation when appropriately classified
• Installed cost, including direct labor and capitalizable overheads, when applicable
• Capital meter replacements and upgrades

What is generally not included

• Service lines recorded in Account 369
• Customer-premise installations recorded in Account 371 when separately classified there
• Routine meter testing, reading, maintenance, and communication service expense
• Customer-owned metering equipment
• General IT systems not properly classified as utility metering plant

Why Account 370 matters

• Metering is essential for billing accuracy, revenue protection, and customer service
• AMI and meter modernization projects can materially increase balances in this account
• Proper classification supports depreciation, retirement accounting, and capital planning
• Accurate meter accounting is important in cost-of-service and rate design work

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

AMI deployment

A utility rolls out advanced meters across its service territory. The capital cost of the meter units and associated installed metering equipment would generally be recorded in Account 370, subject to utility accounting policy.

Commercial meter set

A new commercial service requires a transformer-rated meter installation. The utility-owned metering equipment would generally be recorded in Account 370.

Routine meter testing

Periodic meter testing and normal maintenance would generally be charged to expense rather than Account 370.

Related FERC distribution plant accounts

• Account 369 – Services
• Account 371 – Installations on Customers’ Premises
• Account 368 – Line Transformers