Utility and Regulatory Accounting

Utility and Regulatory accounting is a specialized area of accounting and special rules apply in both general accounting and taxation.

Most counties in Florida are regulated by the Florida Public Service Commission or by the Boards of County Commissioners. Specialized reporting is required by these Regulators and specialized rules are used to control how rates are established.

We have the specialized knowledge and experience to help you meet the needs of the Regulators and Taxing Authorities.

Utility Audits

Special accounting rules apply in the audit of regulated utilities. We are experienced in how these rules may apply to your utility. Visit our Audit Services area for more information on these services.

Utility Tax Returns

Tax treatment for depreciation and certain types of cash receipts are different than in a non-regulated business. Visit our tax center for more information about our tax services.

Annual Reporting

Regulated utilities are required to report their results of operations on a prescribed form on an annual basis. We can prepare this report or review yours to insure that it complies with Regulatory rules.

Regulatory Assessment Fees

Large utilities are required to pay Regulatory taxes twice a year. Small utilities are required to pay these taxes once a year. Penalties apply for late filing. We can assist you in the preparation of these tax returns to insure that you pay the correct tax.

Rate Increases

Subject to certain rules, utilities may increase their rates up to two times a year using Index and Pass-Through Adjustments:

This annual adjustment increases rates based on inflation. Certain expenses are “passed through” directly to the customer.

A utility may also increase rates in:

Limited Proceedings - In certain cases, due to a specific significant increase in a component of plant or element of expense, a limited rate proceeding to include that component in rates may be in order.

General Rate Cases - Occasionally, a significant increase to infrastructure and associated costs require that the Company be evaluated as a whole and new rates established to allow cost recovery.

Each of these methods require different information to be filed and may include tax and engineering information as well. We can assist you in the preparation of these applications.

If you are not sure if you qualify for a rate increase, we can also assist you in making that determination.

Are you a new utility, or new to Regulation? If so, we can assist you in filing the application for your original certificate and initial rates and charges. We can help you set up your accounting and bookkeeping system in accordance with the rules established by the National Association of Regulatory Utility Commissioners (NARUC) and train you or your staff in how to properly account for utility operations.