Sec. 560.0. Order authorizing uniform system of accounts for classes A and B

(a) The uniform system of accounts for waterworks corporations (classes A and B) is hereby prescribed for every waterworks corporation (as that term is defined in the Public Service Law) which has annual operating revenues from water operations of $700,000 or more, subject to the jurisdiction of this commission, and every such water corporation is hereby required, on and after July 1, 1987, to keep its records and accounts in conformity therewith.

(b) During the 12 months following the date on which said uniform system of accounts becomes effective, any such waterworks corporation may for purposes of comparison, keep on its books, in addition to the accounts hereby prescribed, such portion or portions of its present accounts as may be deemed desirable by any such corporation.

(c) Each waterworks corporation for which this uniform system of accounts is prescribed shall classify, set forth, and carry all assets, liabilities, capital stock, and retained earnings (formerly surplus) existing as of the effective date of this uniform system of accounts, as prescribed in such system of accounts.

(d) As of the date a utility becomes subject to this system of accounts, it shall prepare opening entries in accordance with the following provisions:

(1) The accounts prescribed herein shall be opened by transferring thereto the balances carried in the accounts previously maintained. The company is authorized to make such subdivisions, reclassifications, or consolidations of such balances as are necessary to meet the requirements of this system of accounts.

(2) The company shall prepare and keep as supporting records summary statements showing:

(i) the closing balances in each account carried on the books prior to the adoption of this system of accounts;

(ii) the journal entries to effect the transfer of those balances to the accounts prescribed herein, arranging such entries so as to show for each account or subdivision thereof from what account and to what account each amount was transferred;

(iii) the resultant opening balance of each account under this system of accounts.

(3) The first annual report filed with this commission by a utility covering its operations subsequent to the adoption of this system of accounts shall include copies of the statements referred to in paragraph (2) of this subdivision.

(e) In prescribing this system of accounts, the commission does not commit itself to the approval or acceptance of any item set out in any account for the purpose of fixing rates or in determining other matters before the commission. The prescribed system of accounts is designed to set out the facts in connection with the capitalization, construction, income, expenditures, etc., and therefrom the commission will determine, in connection with such matters as may be under advisement from time to time, just what consideration shall be given to the various items in the several accounts.

(f) The system of accounts prescribed by this Part shall become effective July 1, 1987 and shall be put into effect by each water corporation affected thereby on July 1, 1987.