The final stretch of the year is a busy time for municipal utilities, and while we hate to add to your long to-do list, there’s one thing you don’t want to ignore: preparing your Public Service Commission (PSC) Annual Report.
Wis. Stats. § 196.07 requires each public utility to file a report with the PSC no later than April 1, 2021 for the 2020 reporting year.
Has your utility begun preparations to file your PSC Annual Report? If your team preparing this report by yourself? Will you seek professional assistance? These are the questions you should be asking yourself now as you start the process and the year comes to a close.
BEST PRACTICES
Organize the Books to Easily Identify GAAP versus PSC Accounting. The PSC requires all books and records to conform with the PSC Uniform System of Accounts for the class (AB, C, or D) and type of utility service (water, electric, gas, or sewer) provided. Organizing your books to make PSC accounting easily identifiable will save time when completing the PSC Annual Report.
Balance Assets and Liabilities. PSC Annual Reports require assets and liabilities to balance. Make sure your utility’s assets and liabilities records are balanced early, and you’ll avoid unnecessary headaches when you complete the PSC Annual Report.
Report average number of individually metered accounts on Page W-02 Water Operating Revenues – Sales of Water. This amount should be the average meter count. For example, if a hospital has 5 meters, a total of 5 meters would be reported as the average number of customers.
Provide explanations for significant increases/decreases in Operation & Maintenance Expenses (O&M). Explanations are required if the difference is greater than 15 percent or $10,000 for Class AB utilities, $5,000 for Class C utilities, and $1,000 for Class D utilities.
Keep Labor and Non-labor expenses separate. The PSC requires that labor and non-labor O&M be reported separately on Page W-05, Operation and Maintenance Expense. Separating your labor and non-labor records in the same format required by the PSC will significantly simplify the completion of Page W-05.
Refer to the instruction in the PSC Annual Report program for guidance. Detailed instructions for each page of the PSC Annual Report are included in the link below. Refer to these instructions as you complete each page of the PSC annual report to ensure you completed each schedule correctly.
Learn More
The 2020 PSC annual report program will be available as of January 1, 2021. You can access the software here. Our team spoke with the PSC and confirmed that you can expect no changes to any of the schedules for the 2020 reporting year. If you have questions or would like assistance with your PSC annual report, please contact an R/M expert today.
About the Authors
Bridgot A. Gysbers
Economic Consultant
Bridgot recently joined the R/M team as a Financial Consultant. She has a diverse background in utility regulation, including 16 years of experience in municipal and investor-owned utility regulation in energy, gas, water, and sewer utilities. Bridgot developed the revenue requirement for a majority of the water rate cases regulated in Wisconsin and served as the lead auditor for several of the most complex investor-owned cases involving electric, gas, and water utilities. At R/M, Bridgot works to find financial and management solutions for public utilities.
Edward F. Maxwell
Economic Consultant
Edward joined Ruekert & Mielke, Inc. (R/M) in 2017 as a financial analyst. Before joining R/M, he worked in private-sector finance, analyzing capital investments, forecasting expenses and revenue, and crafting department budgets. At R/M, he creates financial solutions for all clients, from municipalities to corporate businesses.
