Changing Rates Retroactively
Utility companies often must use an interim depreciation rate pending FERC settlement of a rate case. The process of changing rates retroactively enables utility companies to retroactively recalculate group depreciation using a new rate.
This topic discusses how to process retroactive rate changes.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
Create New Group Rate |
AMGRPRRC_RQST |
Enter a new rate and initiate the Group Asset Rate Change process. |
|
Group Asset Depreciation |
RUN_AMDPCGRP |
Run the depreciation calculation process for group assets. This process picks up the retroactive rate change (RRC) open transaction records and recalculates depreciation as of the transaction date. |
|
Run Depreciation Close Process |
DEPR_CLOSE_RQST |
Run the depreciation close process (AM_DPCLOSE) to pick up the prior period depreciation (PDP) entries and generate accounting entries. |
To process retroactive rate changes:
On the Create New Group Rate page, enter the new rate, a range of assets to which the rate applies, and the transaction date on which the rate change retroactively became effective.
Run the Group Asset Rate Change process (AMGRPRRC).
The process updates the asset book and creates a book history entry with the new rate for the range of group assets that you specify. It also creates RRC open transaction records.
When you next run the Group Asset Depreciation process (AMDPCGRP), it picks up the RRC open transaction records and recalculates depreciation as of the transaction date.
The Group Asset Depreciation process also generates PDP entries in the depreciation table for the difference in the depreciation amounts.
When you next run the Depreciation Close process (AM_DPCLOSE), it picks up the PDP entries and generates accounting entries.