Ferc Account 371

FERC Account 371 is used to record the installed cost of utility-owned equipment located on customers’ premises.

Definition

Record in this account the cost installed of utility-owned equipment located on customers’ premises used in electric distribution operations.

Account 371 generally captures utility-owned distribution equipment installed on customer premises when that equipment is not otherwise classified in another account. This may include wiring, devices, or equipment that remains utility-owned and is installed to provide or control service.

What is typically included

• Utility-owned equipment installed on customer premises when properly classified here
• Special utility-owned devices or installations used to furnish electric service
• Installed costs, including direct labor and capitalizable overheads, when applicable
• Capital additions and replacements meeting utility capitalization policy
• Premise-based equipment that remains utility property

What is generally not included

• Customer-owned wiring and equipment
• Meters recorded in Account 370
• Service lines recorded in Account 369
• Routine repairs, inspection, and maintenance charged to expense
• Street lighting and signal systems recorded in Account 373

Why Account 371 matters

• This account helps utilities distinguish utility-owned premise installations from customer-owned facilities
• Proper classification supports depreciation and retirement accounting
• Clear treatment is important when utilities provide specialized customer-side equipment
• It improves consistency in plant records and customer contribution analysis

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

Utility-owned control device

A utility installs a utility-owned control device on a customer’s premises as part of providing electric service. If properly classified here and capitalized, the installed cost would generally be recorded in Account 371.

Replacement of utility-owned premise equipment

A utility replaces an older utility-owned installation on customer property. If the work meets capitalization policy, the installed replacement cost would generally be recorded in Account 371.

Customer-owned panel work

Work performed on a customer-owned panel or wiring system would generally not be recorded in Account 371.

Related FERC distribution plant accounts

• Account 369 – Services
• Account 370 – Meters
• Account 368 – Line Transformers
• Account 373 – Street Lighting and Signal Systems