Notice of Proposed Rulemaking regarding Accounting, Financial Reporting, & Rate Filing Requirements for Asset Retirement Obligations under RM02-7. See Accession Number 20021030-0235 for Appendix A, Forms 1 et al.

101 FERC 61, 102 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION 18 CFR Parts 35, 101, 154, 201, 346, and 352 Docket No. RM02-7-000 Accounting, Financial Reporting, and Rate Filing Requirements for Asset Retirement Obligations (Issued October 30, 2002) AGENCY: Federal Energy Regulatory Commission. ACTION: Notice of Proposed Rulemaking SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes to revise its regulations to update the accounting and reporting requirements for liabilities for asset retirement obligations under its Uniform Systems of Accounts for public utilities, licensees, natural gas companies, and oil pipeline companies. The Commission proposes to establish uniform accounting and financial reporting for the recognition and measurement of liabilities arising from retirement and decommissioning obligations of tangible long-lived assets and the related capitalized costs. The Commission also proposes to add new income statement accounts to the Uniform Systems of Accounts to record the accretion of the liability and the depreciation of the related capitalized costs. The Commission proposes to add or revise as necessary the definitions, general and plant instructions, and balance sheet and income statement accounts contained in the Uniform Systems of Accounts. Additionally, the Commission Docket No. RM02-7-000 -2- proposes to revise its rate filing requirements to incorporate the above mentioned changes. Finally, the Commission proposes to revise the following Annual Reports: FERC Form No. 1, Annual Report of M ajor Public Utilities, Licensees and Others (Form 1); FERC Form No. 1-F, Annual Report of Nonmajor Public Utilities and Licensees (Form 1- F); FERC Form No. 2, Annual Report of Major Natural Gas Companies (Form 2); FERC Form No. 2-A, Annual Report of Nonmajor Natural Gas Companies (Form 2-A); and Form No. 6, Annual Report of Oil Pipeline Companies (Form 6) to include the new accounts and revised schedules proposed by this rulemaking. An important objective of the proposed rule is to provide sound and uniform accounting and financial reporting for the above types of transactions and events. The new instructions and accounts will result in improved, consistent and complete accounting and reporting of liabilities for obligations associated with the retirement of tangible long-lived assets and the related asset retirement costs capitalized. The additions of new accounts and changes to the FERC Forms noted above will add visibility, completeness and consistency of the accounting and reporting of liabilities for asset retirement obligations and the related asset retirement costs capitalized. DATES: Comments on the proposed rulemaking are due on or before [insert date 45 days after publication in the FEDERAL REGISTER]. Docket No. ...