Energy and Utilities Industry Solutions

1. FA Class (5607)
   Link via: [5600:9] = [5607:1]

[FAClass:CustomUtilityPlant] is true
AND [5600:CustomFERCAccount]

Type: Error

Message:
FERC ACCOUNT CLASSIFICATION REQUIRED

Asset: [5600:3]
Description: [5600:4]
FA Class: [FAClass:Name]
Acquisition Cost: [5600:14]

FERC UNIFORM SYSTEM OF ACCOUNTS:
Electric utilities subject to FERC jurisdiction must classify plant assets using FERC account codes.

FERC Account Structure:

PRODUCTION PLANT (Accounts 310-346):
• 311 - Intangible Plant
• 312 - Land and Land Rights
• 314 - Structures and Improvements
• 315 - Boiler Plant Equipment
• 316 - Turbogenerator Units
• Etc.

TRANSMISSION PLANT (Accounts 350-359):
• 350 - Land and Land Rights
• 352 - Structures and Improvements
• 354 - Towers and Fixtures
• 355 - Poles and Fixtures
• 356 - Overhead Conductors and Devices
• 357 - Underground Conduit
• 358 - Underground Conductors and Devices

DISTRIBUTION PLANT (Accounts 360-373):
• 360 - Land and Land Rights
• 361 - Structures and Improvements
• 362 - Station Equipment
• 364 - Poles, Towers and Fixtures
• 365 - Overhead Conductors and Devices
• 367 - Underground Conduit
• 368 - Underground Conductors and Devices
• 369 - Services (meter to customer connection)
• 370 - Meters
• 371 - Installations on Customer Premises

GENERAL PLANT (Accounts 389-399):
• 390 - Structures and Improvements
• 391 - Office Furniture and Equipment
• 392 - Transportation Equipment
• 393 - Stores Equipment
• 394 - Tools, Shop and Garage Equipment
• 395 - Laboratory Equipment
• 396 - Power Operated Equipment
• 397 - Communication Equipment
• 398 - Miscellaneous Equipment

Asset Classification Decision Tree:

Function: [Generation / Transmission / Distribution / General]

[IF Generation:
'Primary function: Electricity production
Account 310-346 series
Examples:
- Boiler = 315
- Turbine = 316
- Generator = 316
- Substation at generation = 352
']

[IF Transmission:
'Primary function: High voltage transport (typically >34.5kV)
Account 350-359 series
Examples:
- Transmission towers = 354
- Transmission conductor = 356
- Transmission substation = 352
']

[IF Distribution:
'Primary function: Customer delivery (typically ≤34.5kV)
Account 360-373 series
Examples:
- Distribution poles = 364
- Distribution conductor = 365
- Transformers = 368
- Meters = 370
']

This Asset:
[Asset description analysis]
Recommended FERC Account: [Suggested account based on description]

Rate Recovery Impact:
Different asset classes have different depreciation rates and recovery treatment.
Proper FERC classification ensures:
✓ Correct depreciation rate application
✓ Proper rate base inclusion
✓ Regulatory reporting accuracy
✓ Rate case cost support

Incorrect classification results in:
✗ Disallowed rate recovery
✗ Audit adjustments
✗ Regulatory scrutiny
✗ Rate case challenges

Select appropriate FERC account code before posting asset.

FERC Account Guide: [Reference document]
Utility Accountant: [Contact]

1. Work Order (Custom Table)

2. Work Order Line (Custom Table)
   Link via: [WorkOrder:No] = [WorkOrderLine:WorkOrderNo]

[WorkOrder:TotalCost] > [WorkOrder:CapitalizationThreshold]
AND [WorkOrder:Classification] is 'Expense'
AND [WorkOrder:Type]

Type: Warning

Message:
CAPITALIZATION REVIEW REQUIRED

Work Order: [WorkOrder:No]
Description: [WorkOrder:Description]
Type: [WorkOrder:Type]
Total Cost: $[WorkOrder:TotalCost]
Current Classification: EXPENSE

⚠️ WORK ORDER EXCEEDS CAPITALIZATION THRESHOLD

Utility Capitalization Policy:
Costs that extend useful life, increase capacity, or improve efficiency of utility plant should be capitalized.

Capital vs. Expense Decision Criteria:

CAPITALIZE IF (Capital Treatment):
✓ Replaces major equipment/component
✓ Extends useful life beyond original
✓ Increases capacity or efficiency
✓ Cost exceeds capitalization threshold ($[Threshold])
✓ Betterment or improvement
✓ New construction
✓ Asset acquisition

EXPENSE IF (O&M Treatment):
✓ Routine maintenance or repair
✓ Restores to original condition (not better)
✓ Does not extend life beyond original
✓ Minor component replacement
✓ Cost below threshold
✓ Consumable materials

This Work Order Analysis:
Type: [WorkOrder:Type]
Cost: $[WorkOrder:TotalCost] (EXCEEDS threshold of $[Threshold])

Materials:
[FOR EACH WorkOrderLine:
  Item: [Item description]
  Quantity: [Qty]
  Cost: $[Cost]
  Nature: [Component type]
]

Evaluation Questions:
☐ Does this replace major equipment?
   [IF Type is 'Equipment Replacement', '✓ YES - Major equipment replacement', '']

☐ Does this extend useful life?
   Original Life: [Asset:OriginalLife]
   Remaining Life Before: [Asset:RemainingLife]
   Estimated Life After: [Estimated]
   [IF Extended, '✓ YES - Extends life by [Years]', '']

☐ Does this increase capacity?
   [IF capacity increased, '✓ YES - Increases capacity from [Old] to [New]', '']

☐ Is this betterment vs. restoration?
   [Comparison of old vs. new specifications]

Recommendation:
[IF criteria suggest capital,
'RECOMMENDED CLASSIFICATION: CAPITAL

Rationale:
- Cost exceeds threshold
- [Additional factors]

Accounting Treatment:
- Capitalize cost to FERC Account: [Account]
- Add to rate base
- Depreciate over useful life: [Years]
- Recover through rates
',
'CONFIRM EXPENSE CLASSIFICATION

If truly expense, document reason for high cost:
- Emergency repair
- Storm damage
- Multiple small items
- Other: [Explanation]
']

FERC Requirements:
Capitalization policies must be consistently applied and documented.
Rate case scrutiny on classification decisions.

Regulatory Impact:
Capitalized costs → Rate base → Return on investment + depreciation
Expensed costs → O&M expense → Dollar-for-dollar rate recovery

Change Classification: [Option to change to Capital]
Document Decision: [Require management approval and documentation]

Utility Controller: [Contact]

1. Vendor (23)
   Link via: [38:2] = [23:1]

2. Purchase Line (39)
   Link via: [38:1] = [39:1]

[Vendor:CustomAffiliateEntity] is true
AND [38:CustomAffiliateDocumentation]

Type: Error

Message:
AFFILIATE TRANSACTION DOCUMENTATION REQUIRED

Purchase Order: [38:1]
Vendor: [23:2]
⚠️ AFFILIATE ENTITY

Affiliate Relationship:
Entity: [Vendor:LegalName]
Relationship: [Vendor:AffiliateRelationship]
Parent Company: [Vendor:ParentCompany]

FERC AFFILIATE TRANSACTION RULES:
Transactions between utility and affiliates are subject to special scrutiny.

18 CFR § 35.36 - Affiliate Restrictions:
• Non-discrimination requirements
• Information sharing restrictions
• Cost allocation standards
• Transfer pricing requirements

Required Documentation for Affiliate Transactions:

1. COST ALLOCATION METHOD
   ☐ Direct assignment (preferred)
   ☐ Cost-based allocation
   ☐ Allocated based on: [Labor / Equity / Revenue / Other]
   ☐ Allocation factor calculation documented

2. PRICING JUSTIFICATION
   ☐ At cost (no markup)
   ☐ Market price (provide market analysis)
   ☐ Cost + reasonable return (justify return rate)
   
   This PO Amount: $[PurchaseHeader:Amount]
   Market Comparison: [Comparable third-party quotes]

3. SERVICE DESCRIPTION
   Detailed description of goods/services provided:
   [FOR EACH PurchaseLine:
     Item: [Description]
     Quantity: [Qty]
     Unit Cost: $[Cost]
     Benefit: [Which utility function benefits?]
   ]

4. REGULATORY APPROVAL (if required)
   ☐ Service agreement on file with FERC
   ☐ Rate schedule approved
   ☐ Within approved limits

5. BOOKS AND RECORDS
   ☐ Affiliate transaction log entry
   ☐ Supporting documentation attached
   ☐ Segregated for audit purposes

Common Affiliate Services:
- Shared services (IT, HR, Finance)
- Management services
- Engineering services
- Construction services
- Equipment purchases from affiliate manufacturer

Cost Allocation Standards:

DIRECT COSTS:
Directly assign to benefiting entity when possible.
Example: Engineering study for specific utility project → Direct charge

INDIRECT COSTS (Shared Services):
Allocate based on reasonable methodology:
• Labor allocation: Based on time tracking
• Square footage: For facilities
• Number of employees: For HR services
• IT users/devices: For IT services

Allocation must be:
✓ Reasonable and consistently applied
✓ Based on cost causation
✓ Documented with supporting detail
✓ Auditable

This Transaction:
Service: [Service description]
Allocation Method: [Required entry]
Allocation Factor: [Required calculation]
Regulatory Approval: [Reference if required]

FERC Standards of Conduct:
Transmission function employees must function independently of marketing function.
Information sharing restrictions apply.

Complete affiliate transaction documentation before posting.

Affiliate Transaction Form: [Link]
Regulatory Compliance Officer: [Contact]

SUM([PurchaseAmount] WHERE Vendor is Affiliate AND Quarter = [Current])
> [TotalPurchases] × 0.25

To: cfo, regulatory.affairs, procurement
Subject: Affiliate Transaction Volume Alert - Q[Quarter]

Body:
AFFILIATE TRANSACTION CONCENTRATION

Quarter: Q[Quarter] [Year]

Affiliate Purchase Analysis:
Total Purchases: $[Total all vendors]
Affiliate Purchases: $[Total affiliate vendors]
Affiliate Percentage: [Percentage]%

⚠️ AFFILIATE CONCENTRATION EXCEEDS 25%

Affiliate Vendor Breakdown:
[FOR EACH affiliate vendor:
  Vendor: [Name]
  Relationship: [Type]
  Amount: $[Amount]
  % of Total: [Percent]%
  Primary Services: [Categories]
]

Top Affiliate Transactions:
[List largest affiliate POs with amounts and descriptions]

Regulatory Considerations:

RATE CASE SCRUTINY:
High affiliate transaction volume invites regulatory scrutiny:
• Are costs reasonable?
• Could services be obtained cheaper from third parties?
• Is utility subsidizing affiliate operations?
• Are allocation methodologies appropriate?

State PUC Review:
Regulators often disallow or reduce affiliate costs deemed:
- Above market rates
- Unnecessary services
- Improperly allocated
- Lacking supporting documentation

Best Practices:

1. COMPETITIVE BIDDING
   Obtain competitive bids for major services
   Document affiliate was competitive
   Demonstrate cost savings vs. alternatives

2. BENCHMARK ANALYSIS
   Compare affiliate charges to market rates
   Industry surveys
   Third-party quotes

3. SERVICE LEVEL AGREEMENTS
   Formal SLA with affiliate
   Performance metrics
   Pricing methodology
   Termination provisions

4. INDEPENDENT REVIEW
   Periodic audit of affiliate transactions
   Ensure compliance with cost allocation manual
   Verify pricing reasonableness

5. BOARD OVERSIGHT
   Affiliate transaction reporting to board
   Board approval for material contracts

Recommendations:

IF Services Are Necessary and Cost-Effective:
☐ Document business justification
☐ Obtain market comparisons
☐ Strengthen supporting documentation
☐ Prepare for rate case testimony

IF Services Could Be Obtained Elsewhere:
☐ Issue RFP for competitive bidding
☐ Consider insourcing
☐ Renegotiate affiliate terms
☐ Diversify vendor base

Rate Case Preparation:
Anticipate discovery requests:
• Why use affiliate vs. third party?
• How was pricing determined?
• What cost allocation method used?
• How do rates compare to market?

Prepare responses now before filing next rate case.

Affiliate Transaction Report: [Detailed report]
Cost Allocation Manual: [Reference]
Next Rate Case Filing: [Estimated date]

1. Customer (18)
   Link via: [MeterReading:CustomerNo] = [18:1]

2. Rate Schedule (Custom Table)
   Link via: [Customer:RateSchedule] = [RateSchedule:Code]

3. Meter Data (Custom Table)
   Link via: [MeterReading:MeterNo] = [MeterData:MeterNo]

[RateSchedule:TimeOfUse] is true
AND [T]

Calculate Time-of-Use Bill:

Customer: [Customer:Name]
Rate Schedule: [RateSchedule:Code] - [RateSchedule:Description]
Billing Period: [Start date] to [End date]
Service Address: [Customer:ServiceAddress]
Meter: [MeterReading:MeterNo]

Time-of-Use (TOU) Rate Structure:

PEAK HOURS (Highest Rate):
[RateSchedule:PeakPeriod]
Rate: $[RateSchedule:PeakRate] per kWh

MID-PEAK HOURS (Medium Rate):
[RateSchedule:MidPeakPeriod]
Rate: $[RateSchedule:MidPeakRate] per kWh

OFF-PEAK HOURS (Lowest Rate):
[RateSchedule:OffPeakPeriod]
Rate: $[RateSchedule:OffPeakRate] per kWh

Seasonal Variation:
[IF RateSchedule has seasonal rates:
SUMMER (June-September): [Summer rates]
WINTER (October-May): [Winter rates]
]

Usage by Time Period:
[FROM meter interval data:
Peak kWh: [Peak usage]
Mid-Peak kWh: [Mid-peak usage]
Off-Peak kWh: [Off-peak usage]
Total kWh: [Total usage]
]

Energy Charges:
Peak Energy: [Peak kWh] × $[Peak rate] = $[Amount]
Mid-Peak Energy: [Mid-peak kWh] × $[Mid-peak rate] = $[Amount]
Off-Peak Energy: [Off-peak kWh] × $[Off-peak rate] = $[Amount]
Subtotal Energy: $[Total energy charges]

Demand Charge (if applicable):
Billing Demand: [Max 15-min kW during billing period]
Demand Rate: $[Rate] per kW
Demand Charge: [Billing demand] × $[Rate] = $[Amount]

Customer Charge (Fixed):
$[Monthly customer charge]

Additional Charges:
[IF applicable:
  Power Factor Penalty: $[Amount]
  Transformer Ownership Credit: -$[Amount]
  Renewable Energy Surcharge: $[Amount]
  Fuel Cost Adjustment: $[Amount]
]

Sales Tax:
[Taxable amount] × [Tax rate]% = $[Tax]

Total Bill: $[Sum of all charges]

Comparative Analysis:
Average Cost per kWh: [Total bill ÷ Total kWh]
Peak Usage %: [Peak kWh ÷ Total kWh]%
[IF peak usage high: '💡 TIP: Shift usage to off-peak hours to save money']

Bill Calculation Validation:
☐ Interval data quality verified
☐ TOU periods applied correctly
☐ Seasonal rates applied
☐ Demand charge calculated correctly
☐ All riders and adjustments applied
☐ Rates match approved tariff

Create Invoice:
Customer: [Customer:No]
Amount: [Total bill]
Due Date: [Billing date + payment terms]

Line Items:
- Peak Energy: [kWh] @ $[Rate] = $[Amount]
- Mid-Peak Energy: [kWh] @ $[Rate] = $[Amount]
- Off-Peak Energy: [kWh] @ $[Rate] = $[Amount]
- Demand Charge: [kW] @ $[Rate] = $[Amount]
- Customer Charge: $[Amount]
- [Other charges itemized]

[Customer:ActualUsagePattern] does not match [RateSchedule:RequiredUsagePattern]

Type: Warning

Message:
RATE SCHEDULE ELIGIBILITY CONCERN

Customer: [Customer:Name]
Account: [Customer:No]
Rate Schedule: [RateSchedule:Code]

Rate Schedule Requirements:
[RateSchedule:EligibilityRequirements]

Examples of Rate Requirements:
- Residential rate: Single-family dwelling
- Small commercial: <50kW demand
- Large commercial: 50-500kW demand
- Industrial: >500kW demand, min 70% load factor
- Irrigation: Agricultural use only, seasonal
- EV charging: Dedicated EV charging station

Customer Analysis:
Current Rate: [RateSchedule:Code]
Average Monthly Usage: [Avg kWh]
Peak Demand: [Max kW]
Load Factor: [Load factor calculation]%
Service Type: [Customer:ServiceType]

Eligibility Issue:
[IF usage too high/low for rate:
'Usage level outside rate schedule limits
Customer avg: [Amount]
Rate requires: [Range]
']

[IF wrong customer class:
'Customer class mismatch
Customer type: [Type]
Rate requires: [Required type]
']

[IF load factor issue:
'Load factor below minimum
Customer: [Load factor]%
Rate requires: [Min load factor]%
']

Recommended Action:

Option 1: TRANSFER TO CORRECT RATE
Eligible Rate: [Recommended rate]
Estimated Bill Impact: [Comparison]
Effective Date: [Next billing cycle]

Option 2: VERIFY ELIGIBILITY
If customer meets requirements:
- Update customer classification
- Document eligibility verification
- Maintain current rate

Regulatory Requirement:
Tariff specifies rate eligibility.
Customers must be on appropriate rate schedule.

Improper rate assignment results in:
- Revenue leakage (if bill too low)
- Customer complaints (if bill too high)
- Audit findings
- Regulatory citations

Rate Analysis for This Customer:
[Comparison table showing bill under each eligible rate]

Optimal Rate: [Rate with lowest cost or best fit]

Customer Service: Contact customer to discuss rate options
Rate Design: Verify tariff requirements

Customer Notice Required: [If rate change needed]

[GenerationFacility:RenewableEligible] is true
AND [GenerationOutput:MWh] > 0
AND [T]

Generate Renewable Energy Certificates:

Facility: [GenerationFacility:Name]
Technology: [GenerationFacility:Technology]
Capacity: [GenerationFacility:NameplateCapacity] MW
State: [GenerationFacility:State]

Generation Data:
Period: [Month] [Year]
Gross Generation: [GenerationOutput:GrossMWh] MWh
Station Use: [GenerationOutput:StationUseMWh] MWh
Net Generation: [GenerationOutput:NetMWh] MWh

REC Issuance:
RECs are issued based on NET generation (after station use).

REC Eligibility (varies by state):
Technology: [GenerationFacility:Technology]
[Check state eligibility:
  Solar PV: ✓ Eligible
  Wind: ✓ Eligible
  Biomass: ✓ Eligible (if sustainable)
  Hydroelectric: [✓ if small hydro, ✗ if large dam]
  Geothermal: ✓ Eligible
]

State Program: [State REC program]
Vintage: [Generation month/year]

Calculate RECs:
1 REC = 1 MWh of renewable generation

RECs to Issue: [GenerationOutput:NetMWh] RECs

REC Serial Numbers:
[Generate unique serial numbers for each REC]
Format: [State]-[Technology]-[Facility ID]-[Vintage]-[Sequential]
Example: CA-SOLAR-12345-2024-12-000001

Create REC Inventory:
FOR EACH MWh:
  Create REC Record:
    Serial Number: [Unique serial]
    Facility: [Facility ID]
    Technology: [Technology type]
    Vintage: [Month/Year]
    Eligibility: [State programs]
    Status: Active
    Owner: [Utility entity]

Then Update:
[GenerationOutput:RECsIssued] = [NetMWh]
[GenerationOutput:RECSerialNumberRange] = [First] to [Last]

Register RECs:
[IF state has REC tracking system:
  Submit generation data to: [WREGIS / M-RETS / NEPOOL-GIS / NAR / NC-RETS]
  Upload meter data attestation
  Await system to issue certificates
]

REC Accounting:
RECs are valuable commodity separate from electricity.

Accounting Treatment:
Dr. REC Inventory (Asset)
Cr. REC Revenue or Deferred Revenue

Track RECs as inventory until sold or retired.

REC Market Value:
Technology: [Technology]
State: [State]
Current Market Price: $[Market price] per REC
Total Value: [RECs] × $[Price] = $[Value]

REC Tracking System: [Platform]
Environmental Reporting: [Contact]

[Utility:RECObligationPercentage] > 0
AND [T:Month] is 6 AND [T:Day]

To: renewable.energy.manager, compliance.officer
Subject: RPS Compliance Filing Due - [State] - [Compliance Year]

Body:
RENEWABLE PORTFOLIO STANDARD (RPS) COMPLIANCE

State: [State]
Compliance Year: [Prior year]
Filing Deadline: [State-specific deadline]

RPS Requirements:
[State] requires [Percentage]% of retail sales from renewable sources by [Year].

Compliance Year Requirements:
Total Retail Sales: [Total MWh sold to retail customers]
RPS Percentage: [Percentage]%
Required RECs: [Sales × Percentage] RECs

Technology Carve-Outs:
[IF state has carve-outs:
Solar Carve-Out: [X]% = [RECs required]
Wind Requirement: [X]% = [RECs required]
]

REC Inventory Status:
[FOR EACH technology:
  Technology: [Type]
  RECs in Inventory: [Count]
  Vintage: [Year range]
  Eligible for Compliance: [Count meeting requirements]
]

Compliance Analysis:
Required: [Total RECs needed]
Available: [Total eligible RECs in inventory]
[IF Surplus: 'SURPLUS: ' + [Surplus amount] + ' RECs']
[IF Deficit: '⚠️ DEFICIT: ' + [Deficit amount] + ' RECs']

[IF Deficit:
'REC PURCHASE REQUIRED

Shortfall: [Deficit] RECs
Market Price: $[Price per REC]
Estimated Cost: [Deficit × Price]

REC Procurement Options:
1. Purchase RECs on spot market
2. Execute REC forward contract
3. Build/contract for renewable generation

REC Market Platform: [M-RETS / WREGIS / etc.]

Alternative Compliance Payment (ACP):
[IF state allows:
Some states allow ACP in lieu of REC submission.
ACP Rate: $[Rate per REC]
ACP Cost: [Deficit × ACP rate]
Note: ACP is typically more expensive than REC purchase
]
']

Compliance Filing Process:
☐ Verify REC inventory eligible for compliance
☐ Purchase additional RECs if needed
☐ Retire RECs in state tracking system
☐ Submit compliance report to [State PUC]
☐ Include generation data
☐ Include REC retirement certificates
☐ Certify compliance
☐ Pay any shortfall penalties

REC Retirement:
RECs must be formally "retired" (taken out of circulation) for compliance use.

Retirement Process:
1. Select RECs to retire (correct vintage and eligibility)
2. Submit retirement request in tracking system
3. Specify retirement purpose: [State] RPS Compliance [Year]
4. System issues retirement certificate
5. Submit retirement certificate with compliance filing

Retired RECs cannot be resold or reused.

Late Filing Penalties:
[State penalty structure for non-compliance]
- Late filing fee
- ACP for shortfall
- Potential additional penalties

COMPLIANCE DEADLINE: [Date] (60 days away)

Begin compliance filing preparation immediately.

REC Tracking System: [Login]
REC Inventory Report: [Link]
State PUC Filing Portal: [Link]

[WorkOrder:StormEventCode] is not ''
AND [WorkOrder:CostClassification]

Type: Warning

Message:
STORM COST CLASSIFICATION REQUIRED

Work Order: [WorkOrder:No]
Storm Event: [WorkOrder:StormEventCode] - [StormEvent:Name]
Event Date: [StormEvent:Date]
Type: [WorkOrder:Type]
Estimated Cost: $[WorkOrder:EstimatedCost]

REGULATORY STORM COST RECOVERY:
Storm restoration costs often exceed normal O&M budgets.
Many states allow special recovery mechanisms:
- Deferred accounting
- Storm reserve fund
- Separate rate rider
- Regulatory asset creation

Proper cost classification is essential for recovery.

Storm Cost Categories:

1. INCREMENTAL STORM COSTS (Typically Recoverable):
   ☐ Emergency restoration labor (including overtime premium)
   ☐ Contract labor and mutual aid crews
   ☐ Emergency equipment rental
   ☐ Materials consumed for emergency repairs
   ☐ Meals and lodging for restoration crews
   ☐ Tree removal and debris clearing
   ☐ Temporary power (generators)

2. NORMAL O&M COSTS (Not Incremental):
   ☐ Regular crew labor (straight time)
   ☐ Routine inspections after storm
   ☐ Already-budgeted activities
   ☐ Indirect costs (office support, general overhead)

3. CAPITAL COSTS (Permanent Repairs):
   ☐ Pole replacements (capitalize as fixed assets)
   ☐ Transformer replacements
   ☐ Conductor replacement
   ☐ Equipment upgrades
   ☐ Better than before repairs

Cost Classification Decision:

Is this cost INCREMENTAL to storm event?
• Would cost have been incurred without storm? NO → Incremental
• Is cost directly caused by storm? YES → Incremental
• Is cost above normal budget? YES → Likely incremental

Is this cost CAPITAL or EXPENSE?
• Does it replace major component? → Capital
• Does it extend life beyond original? → Capital
• Is it temporary repair? → Expense

This Work Order:
Description: [WorkOrder:Description]
Nature: [WorkOrder:NatureOfWork]

Preliminary Classification:
[Analysis based on work order details]

Required Documentation for Storm Recovery:

☐ Storm event declared by utility
☐ Event start and end date documented
☐ Damage assessment report
☐ Outage statistics (customers affected, duration)
☐ Emergency declaration (if applicable)
☐ FEMA declaration (if applicable)
☐ Mutual aid invoices
☐ Time sheets with storm code
☐ Material usage tags
☐ Equipment rental agreements
☐ Before/after photos
☐ Cost vs. budget variance analysis

Cost Tracking Structure:
Storm Event: [Storm name/code]
Work Order: [This WO]
Cost Type: [Labor / Material / Contractor / Equipment / Other]
Classification: [Incremental O&M / Normal O&M / Capital]
FERC Account: [Account code]

Regulatory Recovery Process:
1. Segregate storm costs in accounting system
2. Track all storm-related costs to storm code
3. Compile total storm costs after event
4. File regulatory petition for recovery
5. Demonstrate costs were prudent and incremental
6. Obtain approval for regulatory asset or rate rider
7. Recover costs over approved period

State [State] Storm Recovery Mechanism:
[State-specific mechanism description]

Estimated Regulatory Lag:
Filing to approval: [Months]
Recovery period: [Years]

Carrying charges on deferred storm costs: [If allowed]

Classify storm costs accurately to support regulatory filing.

Storm Cost Tracker: [System]
Storm Event File: [Documentation repository]
Regulatory Affairs: [Contact]