Accounting Policy Section 2100 - PP&E

The section outlines procedures for PP&E classification and classification units, as well as the example items of different classes of PP&E. Attribution rules for certain PP&E items to PP&E categories and subcategories, as well as PP&E classes and functional subgroups, are also provided. Regulated companies are required to follow specific guidance based on standards, including regulatory treatment on recognition of certain tangible items as PP&E. This includes the use of the straight-line method of depreciation and the mandatory submission of depreciation studies to the Commission. Regulatory treatment also sets rules for keeping records, including the impairment loss separately or as PP&E, and the capitalization of costs. PP&E items are assigned to different categories, including "In Operation" and "Held for Future Use." The principles and rules for attribution of PP&E items to functions of regulated companies are clarified, including segregation and functional breakdown to subgroups. The section also provides rules and guidance for PP&E items classification and attribution. The Property, Plant, and Equipment (in operation) comprises different classes of PP&E, including land, buildings, constructions, machinery and equipment, transferring assets, office equipment, furniture and fixtures, vehicles, and instruments and other long-term tangible assets in operation. The structure comprises general formulations for the type of PP&E attributable and non-attributable to certain classes of property, as well as rules for classification and attribution for PP&E items. The class of property "Transmissive units" includes completed functional installations through which different specification energy and communication signals, as well as liquid and gaseous substances, are transferred. The example items of cost components of certain classes of PP&E items include contract work, labor, the cost of materials and supplies, and the cost of individual items of equipment of small value or of short life. The class of PP&E "Mains" includes gas pipelines, gas conduits, mains for petrochemicals, and other types of mains and conduits. The example items of different types of "Transmissive units" do not include bus systems, facilities constituent equipment and devices, cable channeling, control wiring, and tunnels, which should be attributed to the appropriate class of PP&E directly benefitted.