FERC Account 361 – Structures and Improvements
FERC Account 361 is used to record the installed cost of structures and improvements used in electric distribution operations.
Definition
Record in this account the cost installed of buildings, fences, roads, yards, and other structures and improvements devoted to electric distribution operations.
In practice, Account 361 captures the physical improvements placed on distribution property that support utility operations but are not themselves electrical equipment. This often includes substation buildings, control houses, fences, drainage, paving, and similar site improvements.
What is typically included
- Distribution substation buildings and control houses
- Fences, gates, retaining walls, and yard improvements
- Roads, paving, sidewalks, drainage, grading, and similar site work
- Foundations and structural improvements serving distribution operations
- Installed costs, including direct labor and capitalizable overheads, when applicable
What is generally not included
- Land and land rights recorded in Account 360
- Distribution electrical equipment recorded in Account 362
- Routine repairs and maintenance charged to expense
- Office furniture or general equipment not part of the structure
- Overhead and underground line assets recorded in other distribution accounts
Why Account 361 matters
- Separates site and building improvements from land and electrical equipment
- Supports depreciation studies and proper assignment of useful lives
- Improves clarity in continuing property records and retirement accounting
- Helps utilities report distribution plant consistently in regulatory filings
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
New control house
A utility constructs a control house at a distribution substation. The installed cost of the structure, foundation, and related building elements would generally be capitalized to Account 361.
Fence replacement as a capital project
A utility replaces perimeter fencing around a distribution site as part of a broader capital improvement program. If the work meets capitalization policy, the installed cost would generally be recorded in Account 361.
Minor patching and repairs
Routine patching of pavement or minor building repairs would generally be charged to expense rather than Account 361.
Related FERC distribution plant accounts
- Account 360 – Land and Land Rights
- Account 362 – Station Equipment
- Account 364 – Poles, Towers, and Fixtures
- Account 366 – Underground Conduit
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