Ferc Account 396

FERC Account 396 records the cost of power-operated construction and maintenance equipment used in utility operations.

Definition

Record in this account the cost of power-operated equipment used in construction and maintenance of utility plant.

Account 396 captures the cost of heavy power-operated equipment used in utility construction and maintenance activities. This is a key account for electric cooperatives and utilities with significant construction programs, capturing the cost of equipment that is charged to construction projects through equipment overhead rates. The cost of this equipment is recovered through equipment overhead charges applied to work orders.

What is typically included

• Bulldozers, backhoes, and excavating equipment
• Cranes and lifting equipment used in plant construction
• Cable plows and trenching equipment
• Concrete mixers and construction machinery
• Compressors and pneumatic equipment used in construction

What is generally not included

• Line trucks and transportation vehicles (Account 392)
• Hand tools and non-powered equipment (Account 394)
• Stores handling equipment such as forklifts in warehouses (Account 393)
• Leased equipment treated as operating leases (expensed)
• Equipment rented for specific jobs charged directly to work orders

Why this account matters

• Tracks major construction equipment investment for depreciation
• Provides the asset base for calculating equipment overhead rates charged to work orders
• Required for FERC Form 1 general plant-in-service reporting
• Enables proper equipment cost recovery through construction overhead
• Supports asset management decisions for construction equipment fleet