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NERC/NARUC PARTNERSHIP

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

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NERC/NARUC PARTNERSHIP

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  1. NERC/NARUC PARTNERSHIP GROUP 3

  2. 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.

  3. Challenges To Establishing The USoA • 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?

  4. 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

  5. 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

  6. 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

  7. 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.

  8. RECOMMENDATIONS • Train Commission’s accountants on USoA so that it first becomes an accepted in-house document before the industry adopts it. • Commissionshould 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.

  9. Group members

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