Utility plant is generally a regulated utility’s most significant asset. The interaction of regulation with the accounting for utility plant can be particularly complex. Although regulated utilities are subject to the same capitalization and depreciation guidance applied by unregulated entities, there are specific requirements and nuances resulting from the regulatory environment. Authoritative guidance relating to regulated utility plant is primarily included in ASC 980. This chapter discusses key areas of focus for regulated utilities including:

See PwC’s PP&E and other assets guide for general guidance on accounting for property, plant, and equipment. See UP 12 for information on general plant matters that are relevant to both utilities and power companies and that are not specific to operating in a regulated environment. See UP 17 for further information on the application of regulated accounting matters in general.