DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
PUBLIC SERVICE COMMISSION  
UNIFORM SYSTEM OF ACCOUNTS FOR MAJOR AND NONMAJOR  
ELECTRIC UTILITIES  
Filed with the secretary of state on May 7, 2025  
These rules become effective on January 1, 2025.  
(By authority conferred on the Michigan public service commission by section 5 of  
1919 PA 419, MCL 460.55)  
R 460.9002 and R 460.9003 of the Michigan Administrative Code are amended, as  
follows:  
R 460.9002 Adoption by reference of federal standards.  
Rule 1. (1) The federal uniform system of accounts for major and nonmajor electric  
utilities promulgated by the Federal Energy Regulatory Commission and codified at 18  
CFR part 101 and by Volume 88, Federal Register, Number 192, pages 69294 to 69388  
(Oct. 5, 2023), is adopted by reference in these rules as of January 1, 2025. The rules are  
prescribed for the use of all electric utilities under the jurisdiction of the public service  
commission, subject to the following exceptions and conditions unless otherwise ordered  
by the public service commission:  
(a) All orders and practices of the 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 major and nonmajor electric utilities at the request of  
or affecting each specific utility remain in effect, and future orders and practices with  
accounting impacts supersede the provisions of the uniform system of accounts for major  
and nonmajor electric utilities for retail jurisdictional purposes in this state.  
(b) All references to federal statutes, federal regulations, and other federal documents  
are inapplicable where they are not applicable to the jurisdiction exercised by the public  
service commission.  
(c) Nothing in these rules affects the validity of accounting practices approved in public  
service commission orders issued before the effective date of these rules. A utility  
subject to an order may conform the related accounts to the updated accounts adopted by  
these rules, with notice to the public service commission.  
(d) The public service commission may authorize electric utilities to utilize account  
numbers not listed in the Federal Energy Regulatory Commission's uniform system of  
accounts for major and nonmajor electric utilities.  
(e) The electric utilities under the jurisdiction of the public service commission shall  
apply to the public service commission for retail jurisdictional use of the following  
accounts:  
June 11, 2024  
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(i) Account 182.1 - Extraordinary property losses.  
(ii) Account 182.2 - Unrecovered plant and regulatory study costs.  
(iii) Account 182.3 - Other regulatory assets.  
(iv) Account 254 - Other regulatory liabilities.  
(v) Account 407 - Amortization of property losses, unrecovered plant and regulatory  
study costs.  
(vi) Account 407.3 - Regulatory debits.  
(vii) Account 407.4 - Regulatory credits.  
(f) In addition to the accounts listed in 18 CFR part 101, the following accounts are  
adopted to maintain consistency with accounts previously required by the public service  
commission:  
(i) Account 246 - Federal income taxes accrued for prior years.  
(ii) Account 246.1 - State and local taxes accrued for prior years.  
(iii) Account 247 - Federal income taxes accrued for prior years - adjustments.  
(iv) Account 247.1 - State and local taxes accrued for prior years - adjustments.  
(2) Each electric utility subject to this rule shall file the following with the public  
service commission:  
(a) In utility filings and other correspondence with the Federal Energy Regulatory  
Commission 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 major and nonmajor electric  
utilities, including, but not limited to, requests for accounting guidance or approval of  
accounting entries, or both, the portion of the initial filing or correspondence by the  
utility relating to accounting practices or the uniform system of accounts for major  
and nonmajor electric utilities, and the final disposition of the matter.  
(b) In other changes in the utility's accounting practices prompted by the Federal  
Energy Regulatory Commission 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 federal energy regulatory commission or its staff,  
notification of the commencement of the audit and a copy of the final audit report.  
(3) The adopted regulations are available at www.govinfo.gov/app/collection/cfr/ at no  
charge as of the time of the adoption of these rules. A printed copy of the code of  
federal regulations, Title 18, conservation of power and water resources, parts 1-399,  
revised as of April 1, 2024, is available from the United States Government Printing  
Office, 732 North Capitol Street, North West, Washington, D.C. 20401, or by  
telephone at 1-866-512-1800 (toll free) or 202-512-1800 for a cost 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 Department of Licensing and  
Regulatory Affairs, Michigan Public Service Commission, 7109 West Saginaw Highway,  
Lansing, Michigan, 48917 for a cost as of the time of adoption of these rules of $68.00,  
plus shipping and handling.  
R 460.9003 Adoption by reference of federal standards.  
Rule 1. (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, 2024, is adopted by reference in these rules as  
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of January 1, 2025. The rules are prescribed for the use of electric cooperatives under the  
jurisdiction of the public service commission, subject to the following exceptions and  
conditions, unless otherwise ordered by the Michigan public service commission:  
(a) The rules do not apply to electric cooperatives that have elected to be member-  
regulated and have complied with the requirements of the electric cooperative member-  
regulation act, 2008 PA 167, MCL 460.31 to 460.39.  
(b) The federal uniform system of accounts for rural utilities service electric borrowers  
supersedes the federal system of accounts for major and nonmajor electric utilities if  
there is a conflict.  
(c) All orders and practices of the 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 remain in effect, and future orders and practices with  
such impacts supersede the provisions of the uniform system of accounts for rural  
utilities service electric borrowers for retail jurisdictional purposes in this state.  
(d) All references to federal statutes, federal regulations, and other federal documents  
are inapplicable where they do not apply 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 or approval of  
accounting entries, or both, 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 at www.govinfo.gov/app/collection/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, 2024, is  
available from the United States Government Printing Office, 732 North Capitol Street,  
North West, Washington, D.C. 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 $55.00. The  
uniform system of accounts may also be purchased online at http://bookstore.gpo.gov/, or  
from the Department of Licensing and Regulatory Affairs, Michigan Public Service  
Commission, 7109 West Saginaw Highway, Lansing, Michigan, 48917 for a cost as of  
the time of adoption of these rules of $55.00, plus shipping and handling.  
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