FERC Account 397 – Communication Equipment
FERC Account 397 records the cost of communication equipment used in general utility operations and system control.
Definition
Record in this account the cost of communication equipment used in utility operations.
Account 397 captures the cost of radio systems, fiber optic networks, microwave systems, telephone systems, and other communication infrastructure used in utility operations. This includes both the equipment used for operational communications (dispatch, field crew coordination) and system control communications supporting SCADA and energy management systems. Communication equipment integral to specific plant (such as substation SCADA) may be recorded in the functional plant account.
What is typically included
- Radio systems for field crew dispatch and coordination
- Fiber optic and microwave communication systems for system operations
- SCADA communication infrastructure not integral to specific substation equipment
- Telephone and intercom systems for general operations
- Mobile communication devices and repeater systems
What is generally not included
- Communication equipment integral to specific substation equipment (Account 353 or 362)
- Office telephone systems used purely for administrative purposes (Account 391)
- Computer hardware for processing communication data (Account 391)
- Communication towers that are part of transmission plant (Account 352 or 353)
- Leased communication circuits treated as operating expense
Why this account matters
- Tracks investment in operational communication infrastructure
- Supports depreciation of communication equipment with varying useful lives
- Required for FERC Form 1 general plant-in-service reporting
- Enables cost allocation of communication systems to operating departments
- Provides asset tracking for critical operational communication infrastructure
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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.