Powering up: FERC’s overhaul of the uniform system of accounts
The US Federal Energy Regulatory Commission (FERC) has approved an update to the Uniform System of Accounts to better reflect the energy industry’s changing landscape. As renewable energy makes up an increasing share of the grid, reporting and accounting amendments are essential to ensure uniformity, consistency, and transparency in reporting for wind, solar, and other related renewable energy sources and stores.
Following FERC’s adoption of XBRL for utilities reporting in 2019, these changes adapting to renewables reporting will (in due course) be accompanied by XBRL tagging and an associated taxonomy. This will provide additional clarity, fostering greater transparency in financial reporting within the energy industry.
These changes will not only provide regulatory clarity but also assist in evaluating the performance and investment in these technologies. The revised system of accounts is intended to accommodate these changes without dictating specific ratemaking outcomes, thereby fostering greater transparency in financial reporting within the energy industry.
The changes will be implemented by 1 January 2024, with utilities expected to comply with FERC’s revised accounting practice requirements by this deadline.
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