9
NERC/NARUC PARTNERSHIP GROUP 3

GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Embed Size (px)

Citation preview

Page 1: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

NERC/NARUC PARTNERSHIP GROUP 3

Page 2: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Establishing a Uniform System of Accounts (USoA) for the NESI

• The USoA establishes the regulatory accounting reporting framework for all licensees in the NESI.

• It enables the Commission to monitor the financial health and compliance with set performance benchmarks/KPIs.

• The USoA provides for the ring-fencing of accounts of licensed utilities from those of unregulated business.

2

Page 3: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

• Adapting the FERC version to suit our local peculiarities

• Getting the buy-in of key stakeholders who will be responsible for implementation?

• Reporting and enforcement issues?– What new items need to be added to our license

terms and conditions to ensure and improve compliance ?

– Are our requirements often vague?– What training programmes are required to

facilitate compliance by licensees?– Does NERC have resources to analyze the

submissions?– Do licensees have adequate/qualified staff to

perform the analysis we require?3

Challenges To Establishing The USoA

Page 4: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

3 day workshop for USoA

• No feedback/comments from participants• Desk officers of licensed utilities did not

attend the workshop• Participants from the Successor Companies

only

4

Page 5: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Going forward

• Set up Industry Working Group with representations from all Sectors of NESI

• Incorporate other operating licensees• Ensure only the key officers responsible for

accounts preparation are invited• Send out draft chart of accounts and draft

NESI USoA for review before next stakeholder meeting

5

Page 6: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Going forward cont’d

• Memo to Commission requesting approval of draft USoA to go for public consultation

» submitted

• Get a team1 to work on developing a draft template for transiting to the proposed system

» 1 week

• Draft document is uploaded to NERC website for stakeholder comments2

» 2 weeks after Commission approval

• Desk officer collates comments and sends them out to the team for review

» At expiration of 21days on website 6

Page 7: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Going forward cont’d• Team produces a final report with a covering

memo requesting approval for a consultation meeting

» After 2weeks

• Stakeholder consultation meeting» 2 weeks

• New comments are reviewed and incorporated.

» 1 week

• Team produces a final report for Commission to make rule

» 2 weeks

• Training workshops for utilities with the assistance of a consultant who may act as expert facilitator.

7

Page 8: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

RECOMMENDATIONS• Train Commission’s accountants on USoA so

that it first becomes an accepted in-house document before the industry adopts it.

• Commission should take responsibility for taking action on the advice of staff as relates to compliance and enforcements.

• The regulator first needs to be accountable if it demands accountability from the industry.

• Be consistent: decide, take action.

• Make the website electricity-user friendly.8

Page 9: GROUP 3. Establishing a Uniform System of Accounts (USoA) for the NESI The USoA establishes the regulatory accounting reporting framework for all licensees

Group members

9