Electric utilities must comply with FERC Form 1. Even if your company does not need to meet this requirement, then some form of cost of service is usually necessary to determine costs per kilowatt-hour for each customer class.
To achieve accuracy in rate making, detailed functional accounts for purchased power, generation, transmission, distribution, maintenance, and depreciation must adhere to detailed accounting definitions set fourth by local and state Public Utility Commissions, which often adopt the FERC chart of accounts.
How We Support Electric Utilities
Both regulatory compliance and robust internal management reporting for electric utilities can be achieved with HPC Utility Financials Accelerator (UFA), which supports a dual accounting chart of accounts.
The utility accounts required for FERC and PUC filings can co-exist next to the internal chart of accounts (which are often simpler and less detailed) such that you can use UFA to deliver financial electric account data to the right audience in the format required, quickly, easily, and with total confidence in account integrity. You’ll enjoy both great internal reporting and best-in-class external regulatory reporting, all from within SAP.