FERC Account 371 – Installations on Customers’ Premises
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
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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.