FERC Account 359.1 – Asset Retirement Costs for Transmission Plant
FERC Account 359.1 records capitalized asset retirement obligation costs associated with electric transmission plant not covered in other transmission ARO accounts.
Definition
Record in this account the asset retirement costs for electric transmission plant where a legal obligation to retire the asset in a specific manner exists.
Account 359.1 serves as a catch-all for capitalized ARO costs associated with transmission plant not specifically covered by Accounts 351.1-351.3. When utilities have legal obligations to retire transmission assets in particular ways — such as removing transmission towers with environmental requirements, restoring rights-of-way, or decommissioning certain transmission facilities — the estimated retirement costs are capitalized and accreted over the asset's useful life.
What is typically included
- Capitalized ARO costs for transmission lines and structures not in Accounts 351.1-351.3
- Estimated costs to restore transmission rights-of-way upon line retirement
- Legal obligations to remove transmission structures in environmentally sensitive areas
- ARO costs for transmission roads and trails (Account 359) upon retirement
- Any other legally obligated transmission plant retirement costs
What is generally not included
- Transmission station ARO costs covered in Accounts 351.1-351.3
- Distribution plant ARO costs (Account 363.1-363.3 series)
- Estimated removal costs with no underlying legal obligation
- Normal retirement and removal costs expensed through depreciation
- Generation plant ARO costs (recorded in generation accounts)
Why this account matters
- Required under ASC 410 for legal asset retirement obligations on transmission plant
- Ensures ARO costs are properly capitalized and matched with asset useful life
- Supports accurate transmission rate base calculations including ARO assets
- Required for FERC Form 1 transmission plant-in-service detail
- Provides transparency in reporting transmission retirement liabilities
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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.