FERC Account 350 – Land and Land Rights
FERC Account 350 is used to record the cost of land and land rights used in connection with electric transmission operations.
Definition
Record in this account the cost of land and land rights used in connection with electric transmission operations.
Account 350 captures the cost of real property interests devoted to transmission purposes, such as transmission substation sites, rights-of-way for transmission lines, and land for switching stations. It includes the purchase price plus all costs necessary to acquire and place the land rights into utility service.
What is typically included
- Purchase price of land used for transmission substations and switching stations
- Rights-of-way acquired for overhead and underground transmission lines
- Title, legal, survey, appraisal, recording, and related acquisition costs when capitalized
- Damages paid in connection with acquiring transmission land rights
- Costs of clearing title or securing land rights for transmission use
What is generally not included
- Land used for distribution substations (recorded in Account 360)
- Land used for generation facilities (recorded in generation plant accounts)
- Routine property taxes and maintenance costs (expensed)
- Short-term access rights or temporary easements charged to expense
- Administrative and general costs not directly related to acquisition
Why this account matters
- Supports accurate plant-in-service reporting for transmission property
- Provides the basis for separating nondepreciable land from depreciable transmission plant
- Affects transmission rate base calculations used in wholesale rate filings
- Helps maintain proper classification between transmission and distribution land costs
- Supports FERC Form 1 reporting of transmission plant investment
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Disclaimer: The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists, LLC. You should seek formal advice on this topic from your accounting or legal advisor.