Chapter 36 Auditing Gas Electric and Telecommunications CompaniesWord文档格式.docx

Chapter 36 Auditing Gas Electric and Telecommunications CompaniesWord文档格式.docx

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（b）GasUtilities, 

（c）TelecommunicationsCompanies, 

36.2REGULATORYENVIRONMENT 

（a）Rate-MakingProcess, 

（b）Rate-MakingFormula, 

（i）CostofService, 

（ii）ReturnonInvestment, 

（1）RateBase, 

（2）RateofReturn, 

（iii）Performance-BasedRegulation, 

（c）ElectricUtilities, 

（d）GasUtilities, 

（e）TelecommunicationsCompanies, 

36.3ACCOUNTINGPRINCIPLESFORRATE-REGULATEDENTITIES 

（a）InterrelationshipofRateMakingandAccounting, 

（b）AbandonedPlantLossesandDisallowances, 

（c）Phase-inPlans, 

（d）GroupMethodDepreciation, 

（e）AllowanceforFundsUsedDuringConstruction, 

（f）EmbeddedRegulatoryAssets, 

（g）AlternativeRevenuePrograms, 

（h）OPEBCosts, 

（i）RevenueSubjecttoRefund, 

（j）UnbilledRevenues, 

（k）DeferredEnergyCosts, 

（l）Leases, 

（m）PurchasedPowerContracts, 

（n）Long-TermPowerSalesContracts, 

（o）DeferralsofGainsandLosses, 

（p）IncomeTaxes, 

（q）NuclearDecommissioningDisclosures, 

（r）FinancialStatementPresentation, 

（s）EnergyTradingContracts 

（t）WeatherDerivatives 

（u）InternalUseComputerSoftware

36.4RISKFACTORSandAUDITstrategy 

36.5TYPICALTRANSACTIONS,CONTROLS,ANDTESTSOFCONTROLS 

（a）RevenueCycle, 

（b）PurchasingCycle, 

（i）PurchasesorConstructionofUtilityPlant, 

（ii）FuelPurchases, 

（iii）PurchasesorSalesofPower, 

（iv）IncurringandAccountingforCostsThroughaWork-OrderSystem, 

36.6SUBSTANTIVETESTS 

（a）AllowanceforFundsUsedDuringConstruction, 

（b）RegulatoryAssets, 

（c）UnbilledRevenues, 

（d）DeferredCosts, 

（e）AnalyticalProcedures, 

36.1OVERVIEWOFTHEINDUSTRY

Historically,electric,gas,andtelephonecompaniesweregrantedmonopolystatuswithinadesignatedserviceareabecausethoseserviceswereconsideredessentialtothepublicwelfareandanexclusivefranchiseachievedtheeconomiesofscalethatcharacterizedmonopolyoperations.Withthismonopolystatuscamegovernmentalregulationoftheoperationsandrateschargedfortheseservices.Withadvancesintechnologyintheelectricindustry,comparablethird-partyaccesstogastransportation,andtheopeningofelectrictransmissionsystems,electricandgasutilitieshaveseentheirmonopolystatuschangeandareendeavoringtooperatesuccessfullyinamorecompetitive,lessregulatedenvironment.Comparableforcesalsohavebeenatworkinthetelecommunicationsindustry. 

Thelongdistancemarkethasbeenopentocompetitionformorethan15years.SincethepassageoftheTelecommunicationsActof1996,hundredsofnewcompanieshaveenteredthelocaltelecommunicationsmarketincompetitionwiththeformermonopolyproviders.

Publicutilities1arecapital-intensivebusinesses.Inthepast,forexample,itwasnotunusualforanelectricutilitytospendseveralbilliondollarsconstructingalargegeneratingstation.Morerecently,however,duetothechangingregulatoryenvironment,utilitieshavebeenbuildingsmallerunitswithconstructioncostsinthe$500millionrange.Theinvestmentbyelectric,gas,andtelecommunicationsutilitiesinplantfacilitiesnecessarytotransmitanddistributetheirservicesisalsosignificant.Asaresultofthesecapitalrequirements,theplantaccounttypicallyisthemostsignificantassetofautilityandusuallyapproximatesthelong-termdebtandequitycapitalonthebalancesheet.

Electricandgasutilitiesmaybeeitherinvestorownedorpubliclyowned（byeithergovernmentalagenciesorcustomers）.Ownershipbystockholdersisthepredominantformofbusiness.Incertainareas,thefederal,state,orlocalgovernmentprovidesutilityservices.Cooperativesystemsusuallyserveruralareasandareownedbytheircustomers（members）.

ThedivestitureofAmericanTelephoneandTelegraphCompany（AT&

T）in1983begananeweraintelecommunications,acceleratingthepenetrationofcompetitionintothelongdistancemarket.ThedivestiturecreatedsevenRegionalBellOperatingCompanies（RBOCs）,whichprovidelocalexchangeservicestomostareasoftheUnitedStates;

AT&

Tandtheotherinterexchangecarriersprimarilyprovidelongdistanceservice.Since1983,AT&

T'

smarketsharehasdeclinedto60percentorlessofthetotallongdistancemarket.ThelocaltelecommunicationsmarketcontinuestobeservedprimarilybytheRBOCs.Thisischanging,however,asaresultoftheTelecommunicationsActof1996（theAct）,whichiscontributingtothedissolutionoftheRBOCs'

monopolystatus.TheActrecognizedmultiplesourcesofsupply,rapidlyevolvingtechnologies,andgrowingdemandforneworimprovedtelecommunicationservices,andplacedrelianceonmarketforcestoachievereasonablepricesandeconomicefficiency.Thatisexpectedtobeachievedascompetitivelocalexchangecarriersandtraditionallongdistanceprovidersexpandtheirpresenceintolocalmarkets.

（a）ElectricUtilities

Electricityisproducedbylargegeneratingplants,althoughrecenttechnologyismakingitpossibletooperatesmallerplantseconomically.Typically,exceptforhydroelectricplants,aheatsourcesuchascoal,oil,gas,ornuclearfuelisconsumedtoproduceelectricpower.Thepowerisdeliveredthroughouttheutility'

sserviceareabyitstransmissionsystemandismadeavailabletoindividualcustomersviatheutility'

sdistributionsystem.

Electricpowercannotbestored;

itmustbeproducedasitisneeded.Thisplacesunusualcapitalrequirementsontheutility,whichmusthavesufficientgeneratingcapacitytomeetpeakloadrequirementseventhoughthoserequirementsmightexistonlyforshortperiodsduringadayorduringcertaintimesoftheyear.Toalleviatethissituation,utilitieshaveengagedindemand-sidemanagementactivitiestoinfluencecustomeruseofelectricityinordertoaffectelectricitydemand.Theseactivitiesincludeloadmanagement（whichinvolvesshiftingdemandfrompeaktooff-peakperiods）,energyconservation,newusesofelectricity,andinnovativeratestructures.Someutilitycommissionsallowutilitiestoearnareturnontheirdemand-sidemanagementinvestmentsbecauseoftheirreportedcostsavingsandenvironmentalbenefits.

Anelectricutilityalsomusthavesufficientexcessorreservecapacitytooperateevenifoneormoreofitslargestgeneratingunitsareunavailable.Utilitiescanreducetheneedtobuildreserveplantcapacity,however,byjoiningpowerpools,integratingtheirsystemswiththoseofneighboringutilities,andcontractingwithotherutilities,independentpowerproducers,andcogeneratorstopurchaseneededcapacity.Cogeneratorsareoftenmajorcommercialorindustrialcustomerswhoinstallgeneratingfacilitiesfortheirownuse.Thesefacilitiesgenerateelectricityandaby-product,suchassteam,whichthecogeneratorusesinitsoperationsorproduction.

Currentfederalregulationsprovideanincentivetocommercialandindustrialcustomerstobuildtheirowngeneratingfacilities,sincesurpluselectricitygeneratedmaybepurchasedbythelocalutilityattheutility'

savoidedcost.Avoidedcostisdetermineddifferentlyineachjurisdiction,butthegoalistodeterminethecosttheutilitywouldhaveincurredtogeneratetheelectricityorpurchaseitelsewhere.Eventhoughtheutilityhastheobligationtopurchaseelectricitygeneratedbycogeneratorswhenoffered,italsomustbuildcapacitysufficienttosatisfytheneedsofitsentireserviceterritory,whichincludesthecogenerator.

Totheextentthatelectricutilitiesarestillmonopoliesandregulatedentities,theyareoneofthelastremainingindustriestobeso.Asaresult,pressurehasbeenplacedontheindustrytodrivethecostofitsservicedowntoamarket-basedlevelratherthanaregulatory-determinedrate.Theabilitytocompeteinacompetitivemarketrequiresadetailedunderstandingofthecostofprovidingallformsofservice.Regulatorycommissionsinthepastoftenfounditpoliticallyexpedienttoallowutilitiestoearnagreaterrateofreturnfromtheirindustrialcustomerssothatresidentialratescouldbekeptlower.Giventhiscross-subsidy,itisnotsurprisingthatitistheindustrialcustomerswhoareleadingthechargetopushcompetitionfromthewholesaletotheretaillevel.Manyelectricutilitiesarenotpositionedtocompeteinanopenmarketand,therefore,areinthemidstofarestructuring,primarilyalongfunctionallines,namely,powergeneration,transmission,anddistribution.

Thegeneratingsectoroftheelectricutilityindustryinparticularhasbecomeincreasinglycompetitive,withindependentandaffiliatednonutilitypowerdevelopersprovidingagrowingpercentageofthenation'

snewcapacity.Thepricesthatutilitiespayfornonutility-generatedpowerundernewerpowerpurchasecontractsareusuallymarket-based,determinedthroughacompetitivebiddingprocessorsetadministrativelybystateregulators.Becausethemarginalcostofpowerhasdroppedsubstantiallyoverthepastfivetotenyears,someoftheoldercontractshavelocked-inpricesthatareconsiderablyabovethecurrentmarketpriceofelectricity.Utilitiesburdenedwiththesehigh-costpowerpurchasecontractsarecaughtbetweentryingtohonorthesecontractsandreducingcostsinordertostaycompetitive.

Regulatorsandlegislatorsinmanystateshaveevaluatedandconsideredsignificantrestructuringsoftheutilityregulatoryprocesses,includingmarket-basedratesforutilityservicesandotherdramaticchanges,suchasretailchoice,divestitureofgenerationassets,an