TVA Distributor Assurance Update Central District Power Accountants
Presentation by Autumn Burns at a meeting discussing updates on residential credits, green power revenue, contract reviews, accounting for credits on wholesale and retail invoices, and more.
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TVA Distributor Assurance Update Central District Power Accountants Association Meeting Presented by: Autumn Burns March 19, 2015 TVA Restricted Information - Deliberative and Pre-Decisional Privileged
DARS Monthly Report Updates Monthly Report Page 3 Customer Data Residential Credits Green Power Revenue 675 Gen Partners- Res 800 Gen. Power - 50 kW & under Green Power- Res 680 807 Gen Partners-GP < 50kW Gen. Power - Over 50 kW 685 801 Street and athletic - Codes 72, 73 & 74 690 Gen Partners-GP > 50kW Green Power- GP < 50kW 808 802 Outdoor Lighting - Code 78 693 SMC 803 Total 694 EGC 804 Special Outdoor Lighting - Code 75 Green Power- GP > 50kW 696 809 VCP 805 Outdoor Lighting - Code 77 697 VII 806 2
Rate & Credit Check Enhancements (Billing) Contract kW-The analyst will review customers with a contract demand of less than 1,000 kW, but a billing, measured, or metered demand over 1,000, indicating that the customer may need to have a retail contract. Determination of Demand-The RCC model will test and may identify a customer who is potentially not being billed correctly for Determination of Demand per the GSA rate schedule. Customers with the Billing Demand < than anticipated based on the determination of demand calculation will be reviewed. Wholesale Invoice (EMBED_WI)-The analyst also reviews potential exceptions for customers who should be listed on the wholesale invoice based on contract demand. 3
Accounting for Credits on Wholesale & Retail Invoices Electric Sales Summary (ESS) Energy Product Rate Schedule Revenue (RSR) EGC/SMC/VCC/VII No Economic Incentive 5MR/60MR/TDHUD Credit Yes Part of Rate Schedule Green Power Switch No Renewable Energy Generation Partners/Green Power Providers No Renewable Energy Retail Side - Customer's Bill: Debit Credit Energy Product Process Account # Account # EGC/SMC/VCC/VII System generated JE to reflect reduction in revenue 442 142 5MR/60MR/TDHUD Credit Processed as RSR reductions through ESS interface to the GL Auto feed from stats to GL Green Power Switch Charge Manually created JE to reflect increase in revenue 142 442 *Generation Partners/Green Power Providers Manually created JE to reflect reduction of revenue and AR 44X 142 or*Generation Partners/Green Power Providers Manually created JE to reflect increase in power cost (a wash to 555) and reduction of AR 555 142 *Reduction of revenue is preferred method for GP/GPP; however, in cases where revenue is skewed due to a large amount of GP / GPP activity, increase of purchased power is acceptable. Please consult your TVA representative(s). Wholesale Side - Power Bill: Debit Credit Energy Product Process Account # Account # EGC/SMC/VCC/VII Credits reflected on Wholesale Invoice - reduction in power cost 232 555 5MR/60MR/TDHUD Credit Credits reflected on Wholesale Invoice - reduction in power cost 232 555 Green Power Switch Charge (Admin Credit) Charges (credits) reflected on power invoice - increase (decrease) in power cost 555 (232) 232 (555) Generation Partners/Green Power Providers Credits reflected on Wholesale Invoice - reduction in power cost 232 555 Distributor Billing Option Reimbursement Credit account 903 Customer Records and Collection Expense to offset admin costs 903 4
Depreciation Rates Background: Historically, TVA has recommended depreciation for the following five accounts: 364- Poles, Towers, and Fixtures 365-Overhead Conductors and Devices 368-Line Transformers 369-Services 370-Meters TVA has not updated depreciation rates recently. General plant rates are determined by the LPC according to their policies. For example, if trucks are replaced every 5 years, a depreciation rate of 20% may be used. Many questions have arisen about what depreciation rates to use for AMI meters. 5
AMI Meter Depreciation TVA recommends that LPC s check with their auditor and/or the meter manufacturer to determine the useful life of the meter. As a guideline, many LPC s are using between 8-15 years. The depreciation rate for standard meters was between 20-39 years. Process for updating depreciation Notify TVA that you wish to update your depreciation rate for Account 370. TVA will not have an issue if the rate seems reasonable. Footnote the new depreciation rate on your Annual Report. 6
GASB 68 (Pensions) The accounting for defined benefit pensions for governmental entities will now be similar to that of forprofit entities. In addition to the revised accounting method, it will require extensive footnotes and supplemental information be provided in the financials. Overview: Does this effect my LPC? GASB 68 will apply to some of the TVA municipal LPC s Multi-employer plans (i.e. CERS in KY and similar plans in other states) External Auditors & Actuarial Study TVA Guidance 7
