FERC Accounting 101 | UtilityEducation.com
FERC & RUS Accounting  ·  Intermediate

Mastering Electric Construction Cost Accounting

Under FERC & RUS Standards

Master the complete work order accounting process — from project authorization through capitalization, overhead allocation, and asset retirement. Built for utility and co-op finance professionals who need to get construction accounting right.

★★★★★ 5.0
3.00 CPE Hours 2 Hours of Video Foundational Level NASBA Registered
Watch Free Lesson Preview
Module 1 — Why Construction Accounting Drives Your Rates · Opens in course platform
$257
One-time enrollment  ·  12-month access
Enroll Now — $257
This Course Includes
  • 22 lessons with 2 hours of video
  • Downloadable PDF & Excel materials
  • Interactive exercises and flip cards
  • Review questions in each module
  • NASBA-compliant final exam (15 questions)
  • Certificate of completion (3.00 CPE)
3.00
CPE Hours
10
Modules
22
Lessons
5.0
Average Rating
1,000+
Professionals Served
About This Course

Master the Complete Work Order Accounting Process Under FERC & RUS Standards

The FERC Uniform System of Accounts (USoA) is the bedrock of electric utility accounting in the United States. Every transaction, every capital project, every financial report ties back to this foundational framework — and understanding it is essential for anyone working in utility finance, operations, or management.

This course gives you a clear, practical grounding in how the system is structured and how to apply it with confidence. Plain language, real utility examples, and interactive exercises make the material stick.

Who This Course Is For
  • Utility and co-op accountants responsible for work orders
  • Engineers and project managers who initiate and manage capital projects
  • Finance managers overseeing plant-in-service and CWIP balances
  • Staff who calculate or review overhead rates
  • Anyone involved in rate cases who needs to understand construction cost recovery
  • CPAs and auditors serving utilities and cooperatives
Your Instructor

Russ Hissom, CPA

RH
Russ Hissom, CPA
Principal, UtilityEducation.com  ·  30+ Years of Utility Accounting Experience

Russ Hissom, CPA is a principal of UtilityEducation.com, providing on-demand professional education in FERC, RUS, FASB, and GASB accounting, finance, and ratemaking for electric utilities and cooperatives. With over 30 years of hands-on industry experience, he brings real-world expertise to a modern learning platform trusted by more than 1,000 professionals.

Learning Objectives

What You'll Be Able to Do After This Course

Describe how construction costs flow from project authorization through capitalization, depreciation, and recovery in customer rates under FERC and RUS standards
Classify construction costs into the four cost types — Labor, Materials, Direct Costs, and Overheads — and apply the correct treatment to each
Calculate labor overhead rates using total overhead costs divided by base wages, and apply those rates to construction work orders
Determine materials overhead rates and apply them as a percentage of materials issued to construction projects
Develop equipment hourly rates based on total annual ownership and operating costs divided by expected annual usage hours
Calculate and apply Allowance for Funds Used During Construction (AFUDC) on a monthly basis using the annual rate divided by 12 applied to the outstanding CWIP balance
Allocate general and administrative (G&A) overhead to construction using the 3-point allocation method averaging employee count, plant book value, and operating expense ratios
Build fully-loaded standard unit costs for common construction activities incorporating materials, labor, and all applicable overhead types
Record the unitization of completed projects by transferring costs from Construction Work in Progress (CWIP) to the appropriate plant in service accounts
Account for asset retirements including the proper treatment of cost of removal as an offset to accumulated depreciation of the retired asset
Detailed Curriculum

Inside the Course

Module 0 Introduction to FERC/RUS Construction Accounting Standards

Course overview, roadmap, and learning objectives — setting the stage for the full work order accounting process.

  • 0.1 – Introduction to FERC/RUS Construction Accounting
  • 0.2 – Your Course Roadmap
  • 0.3 – Course Learning Objectives
Module 1 Why Proper Construction Accounting Matters

Establishes why construction accounting decisions directly drive customer rates — and the cost of getting it wrong.

  • 1.1 – Why Construction Accounting Drives Your Rates Free Preview

To access the free preview: Click "Watch Free Lesson Preview" at the top of this page to view Lesson 1.1 at no charge before enrolling.

Module 2 The Four Cost Types for Every Project

Covers the four categories that every construction cost must be classified into: Labor, Materials, Direct Costs, and Overheads.

  • 2.1 – The Four Cost Types for Every Project
Module 3 Developing Standard Units — The Foundation of the Work Order System

Explains what standard units are, why they are essential to the work order system, and how to build them using a standard unit template.

  • 3.1 – Building a Standard Unit: Why You Need These in a Work Order System
  • 3.2 – Standard Unit Template
Module 4 Developing Labor Overheads

Walks through the calculation of fully-loaded labor overhead rates and how to apply them to construction work orders.

  • 4.1 – Developing Fully Costed Labor Overhead Rates
Module 5 Developing Materials Management Overheads

Covers stores (materials management) overhead rates, how they are calculated as a percentage of materials issued, and review questions for Modules 1–5.

  • 5.1 – Developing Materials Management (Stores) Overhead Rates
  • 5.2 – Review Questions: Modules 1–5
Module 6 Developing Equipment Overheads

Covers equipment overhead rate development and application, with an interactive exercise classifying overhead types.

  • 6.1 – Developing and Applying Equipment Overhead Rates
  • 6.2 – Exercise: What Are These Overheads?
Module 7 Calculating the Cost of Capital (AFUDC)

Develops the Allowance for Funds Used During Construction (AFUDC) rate and demonstrates monthly application to outstanding CWIP balances.

  • 7.1 – The Cost of Capital: Developing the AFUDC Rate
Module 8 Developing Administrative Overheads

Covers G&A overhead development and the 3-point allocation method, with a cost classification exercise and a spreadsheet template to calculate your own rates.

  • 8.1 – Developing and Allocating Administrative Costs to Projects
  • 8.2 – Exercise: Classify These Costs
  • 8.3 – Spreadsheet Template: Calculate Your Overheads
Module 9 Closing Work Orders and Project Costs to the General Ledger

Covers the unitization process — transferring completed project costs from CWIP to plant in service — and review questions for Modules 6–9.

  • 9.1 – Closing Work Orders: The Unitization Process
  • 9.2 – Review Questions: Modules 6–9
Module 10 Putting It All Together — Course Wrap-Up & Final Exam

Course summary and the NASBA-compliant final exam. A passing score of 70% earns your 2.00 CPE certificate.

  • 10.1 – Putting It All Together: Course Summary
  • 10.2 – Final Exam for NASBA Certification (15 questions, 70% to pass)
  • 10.3 – Course Evaluation
  • 10.4 – You're Now a Construction Accounting Expert!
Course Accreditation
NASBA QAS Self Study
Course #AT-2
Program LevelIntermediate
Area of StudyAccounting – Technical
DeliveryQAS Self Study
PrerequisitesNone
Adv. PreparationNone
Exam Questions15
Passing Grade70%
CPE Credits3.00
3.00
NASBA CPE Credits
What Our Students Say

Trusted by Over 1,000 Utility Professionals

★★★★★

"Very good overview of the introduction to the electricity business. I just started a job with a utility and will definitely be taking another course through UtilityEducation.com."

— Jennifer
★★★★★

"The Intro to FERC class is a well thought out, easy to understand course for beginners!"

— Ted
★★★★★

"This was an incredible overview! I cannot wait to share this with others. I LOVED how you explained things."

— Nicole
★★★★★

"Russ was great and explained everything really well — someone who has actually been in the industry. I will be taking more courses!"

— Kritant
★★★★★

"I am new to the Co-op world and this did help me. Thank you!"

— Kristin
★★★★★

"I found it very helpful as a new employee needing to learn and understand FERC Accounting. I look forward to the next class."

— Erica
Common Questions

Frequently Asked Questions

What is included and how long do I have access?
All video lessons and course downloads are included. Course access is for 12 months from the date of purchase. Materials are in PDF and Excel formats, available in the introduction or throughout each lesson.
Does this course cover the difference between capital and expense?
Yes. Mastering Electric Construction Cost Accounting is designed as the foundation for all other utility accounting topics — including construction accounting, financial reporting, KPIs, and cost of service studies. It's the ideal first course for anyone new to the industry.
Does this course include CIAC and AFUDC applications?
Yes — CIAC and AFUDC are covered with formulas, examples, and journal entries showing exactly how each is calculated and recorded.
Does this course include real utility examples?
Yes — examples include building a FERC Form 1 and applying the USoA to everyday transactions. All material comes from industry best practices and the instructor's hands-on experience with utilities across the United States and Canada.
Are courses eligible for NASBA CPE credits?
Yes. This course is approved for 3.00 CPE credits through NASBA. Upon successful completion and a passing grade of 70% or more on the final exam, you'll receive a Certificate of Completion that meets NASBA documentation standards.
Where does the course content come from?
The information is taken from industry best practices and the direct experience of the instructor in working with power and utilities organizations across the United States and Canada. Every concept is grounded in real-world utility accounting work.
What if I have more questions?
We welcome your questions anytime. Email russ.hissom@utilityeducation.com or call 608-628-4020.
Part of a Learning Path

Continue Your Development

Learning Path
New Electric Utility Accounting Professional

Part of the New Electric Utility Accounting Professional and New Electric Cooperative Accounting Professional learning paths — a structured set of courses to build core electric utility accounting skills. Courses may be taken in any order.

View Learning Path →
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Utility Accounting and Rates Specialists, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBAregistry.org.

Refund & Cancellation Policy

Requests for refunds must be made in writing within 30 days of purchasing the course. No refunds will be granted after the qualified assessment has been completed. For any concerns, please contact us at 608-628-4020 or at russ.hissom@utilityeducation.com.

Legal Note

Course materials are provided for informational and educational purposes only. They do not constitute legal, accounting, or professional advice. © 2026 Utility Accounting & Rates Specialists, LLC. All rights reserved.