Section 460.9003. Adoption by reference of federal standards.

(1) The federal uniform system of accounts for rural utilities service electric borrowers promulgated by the United States Department of Agriculture and codified at 7 CFR 1767, as amended through January 1, 2010, is adopted by reference in these rules as of January 1, 2011. The rules are prescribed for the use of electric cooperatives under the jurisdiction of the Michigan public service commission, subject to the following exceptions and conditions unless otherwise ordered by the Michigan public service commission:

(a)    The rules shall not apply to electric cooperatives that have elected to be member-regulated and have complied with the requirements of MCL 460.31 et seq.

(b)    The federal uniform system of accounts for rural utilities service electric borrowers shall supersede the federal system of accounts for major and nonmajor electric utilities in the event of a conflict.

(c)   All orders and practices of the Michigan public service commission in effect as of the effective date of this rule with accounting  impacts  that conflict with  provisions of the uniform system of accounts for rural utilities service electric borrowers at the request of or affecting each specific utility shall remain in effect, and future orders and practices with such impacts shall supersede the provisions of the uniform system of accounts for rural utilities service electric borrowers  for   Michigan  retail jurisdictional purposes.

(d)    All references to federal statutes, federal regulations, and other federal documents are inapplicable where they are not  applicable   to  the jurisdiction exercised by the Michigan public service commission.

(2)   Each electric cooperative subject to  this  rule   shall  file  the following with the Michigan public service commission:

(a)   In utility filings and other correspondence with the  United   States Department of Agriculture or its staff, on and after the effective date of this rule, regarding the utility's accounting practices or the uniform system of accounts for rural utilities service electric borrowers, including but not

limited to requests for accounting guidance and or approval of accounting entries, the portion of the initial filing or correspondence by the utility relating to accounting practices or the uniform system of accounts for rural utilities service electric borrowers, and the final disposition of the matter.

(b)    In other changes in the utility's accounting practices prompted by the United States Department of Agriculture orders, directives, or correspondence, a written explanation of the change in practice.

(c)   In the regular periodic or special compliance audits performed on and after the effective date of this rule by the United States Department of Agriculture or its staff, notification of the commencement of the audit and a copy of the final audit report.

(3)         The adopted regulations are available via the internet at www.gpoaccess.gov/cfr/ at no charge as of the time of the adoption of these rules. A printed copy of the code of federal regulations, Title  7, Agriculture, parts 1700- 1799, revised as of January 1, 2010, is available from the United States government printing office, 732 N. Capitol Street, NW, Washington, DC 20401, or by telephone at 1-866-512-1800 (toll free)  or 202-512-1800 for a cost of as of the time of the adoption of these rules of $68.00. The uniform system of accounts may also be purchased online at http://bookstore.gpo.gov/, or from the Michigan Department of Energy, Labor, and Economic Growth, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan, 48909 for a cost as of the time of adoption of these rules of $68.00 plus shipping and handling.

History: 2011 MR 6, Eff. Mar. 18, 2011.