18 C.F.R. PART 125—PRESERVATION OF RECORDS OF PUBLIC UTILITIES AND LICENSEES
Title 18 - Conservation of Power and Water Resources
Authority: 16 U.S.C. 825, 825c, and 825h; 44 U.S.C. 3501 et seq.
This Part is prescribed and promulgated as the regulations governing the preservation of records by public utilities subject to the jurisdiction of the Commission and by licensees holding licenses issued by the Commission, to the extent and in the manner set forth therein. [Order 617, 65 FR 48155, Aug. 7, 2000] (a) Scope of this part. (1) The regulations in this part apply to all books of account and other records prepared by or on behalf of the public utility or licensee. See item 40 of the schedule (§125.3) for those records that come into possession of the public utility or licensee in connection with the acquisition of property, such as purchase, consolidation, merger, etc. (2) The regulations in this part should not be construed as excusing compliance with other lawful requirements of any other governmental body, Federal or State, prescribing other record keeping requirements or for preservation of records longer than those prescribed in this part. (3) To the extent that any Commission regulations may provide for a different retention period, the records should be retained for the longer of the retention periods. (4) Records other than those listed in the schedule may be destroyed at the option of the public utility or licensee: Provided, however, That records which are used in lieu of those listed shall be preserved for the periods prescribed for the records used for substantially similar purposes. And, provided further, That retention of records pertaining to added services, functions, plant, etc., the establishment of which cannot be presently foreseen, shall conform to the principles embodied herein. (5) Notwithstanding the provisions of the Records Retention Schedule, the Commission may, upon the request of the Company, authorize a shorter period of retention for any record listed therein upon a showing by the Company that preservation of such record for a longer period is not necessary or appropriate in the public interest or for the protection of investors or consumers. (b) Designation of supervisory official. Each public utility or licensee subject to the regulations in this part shall designate one or more persons with official responsibility to supervise the utility's or licensee's program for preservation and the authorized destruction of its records. (c) Protection and storage of records. The public utility or licensee shall provide reasonable protection for records subject to the regulations in this part from damage by fire, floods, and other hazards and, in the selection of storage spaces, safeguards the records from unnecessary exposure to deterioration from excessive humidity, dryness, or lack of proper ventilation. (d) Record storage media. Each public utility and licensee has the flexibility to select its own storage media subject to the following conditions. (1) The storage media must have a life expectancy at least equal to the applicable record retention period provided in §125.3 unless there is a quality transfer from one media to another with no loss of data. (2) Each public utility and licensee is required to implement internal control procedures that assure the reliability of, and ready access to, data stored on machine readable media. Internal control procedures must be documented by a responsible supervisory official. (3) Each transfer of data from one media to another must be verified for accuracy and documented. Software and hardware required to produce readable records must be retained for the same period the media format is used. (e) Destruction of records. At the expiration of the retention period, public utilities and licensees may use any appropriate method to destroy records. (f) Premature destruction or loss of records. When records are destroyed or lost before the expiration of the prescribed period of retention, a certified statement listing, as far as may be determined, the records destroyed and describing the circumstances of accidental or other premature destruction or loss must be filed with the Commission within ninety (90) days from the date of discovery of the destruction. (g) Schedule of records and periods of retention. (1) Records related to plant in service must be retained until the facilities are permanently removed from utility service, all removal and restoration activities are completed, and all costs are retired from the accounting records unless accounting adjustments resulting from reclassification and original costs studies have been approved by the regulatory commission having jurisdiction. If the plant is sold, the associated records or copies thereof, must be transferred to the new owners. (2) Records related to hydroelectric facilities and additions, retirements, and betterments thereto must be retained until: (i) The Commission has determined the actual legitimate original cost of the facilities, or the licenses are surrendered. If the plant is sold, the associated records or copies thereof, must be transferred to the new owners. (ii) Records related to the determination of amortization reserves pursuant to section 10(d) of the Federal Power Act must be retained until a final determination and adjudication of the amortization reserves are made. (h) Retention periods designated “Destroy at option”. “Destroy at option” constitutes authorization for destruction of records at managements' discretion if it does not conflict with other legal retention requirements or usefulness of such records in satisfying pending regulatory actions or directives. (i) Records of services performed by associated companies. Public utilities and licensees must assure the availability of records of services performed by and for associated or affiliated companies with supporting cost information for the periods indicated in §125.3 as necessary to be able to readily furnish detailed information as to the nature of the transaction, the amounts involved, and the accounts used to record the transactions. (j) Index of records. Public utilities and licensees must arrange, file, and index records so records may be readily identified and made available to Commission representatives. (k) Rate case. Notwithstanding the minimum retention periods provided in these regulations, if a public utility or licensee wants to reflect costs in a current, future, or pending rate case, or if a public utility or licensee has abandoned or retired a plant subsequent to the test period of the utility's rate case, the utility must retain the appropriate records to support the costs and adjustments proposed in the current or next rate case. (l) Pending complaint litigation or governmental proceedings. Notwithstanding the minimum requirements, if a public utility or licensee is involved in pending litigation, complaint procedures, proceedings remanded by the court, or governmental proceedings, it must retain all relevant records. (m) Life or mortality study data. Life or mortality study data for depreciation purposes must be retained for 25 years or for 10 years after plant is retired, whichever is longer. (Secs. 3, 4, 15, 16, 308; 41 Stat. 1063–1066, 1068, 1072, 1075; 49 Stat. 838–841; 82 Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816, 825b, 825g, 826i); secs. 8, 10, 16; 52 Stat. 825, 826, 830 (15 U.S.C. 717g, 717i, 717o)) [Order 450, 37 FR 6293, Mar. 28, 1972, as amended by Order 567, 42 FR 30615, June 16, 1977; Order 258, 47 FR 42724, Sept. 29, 1982; Order 335, 48 FR 44483, Sept. 29, 1983; Order 617, 65 FR 48155, Aug. 7, 2000]
Table of Contents Corporate and General 1. Reports to stockholders. 2. Organizational documents. 3. Contracts including amendments and agreements. 4. Accountants' and auditors' reports. Information Technology Management 5. Automatic data processing records. General Accounting Records 6. General and subsidiary ledgers. 7. Journals: General and subsidiary. 8. Journal vouchers and entries. 9. Cash books. 10. Voucher registers. 11. Vouchers. Insurance 12. Insurance records. Operations and Maintenance 13.1. Production—Public utilities and licensees (less nuclear). 13.2 Production—Nuclear. 14. Transmission and distribution—Public utilities and licensees. 15. Maintenance work orders and job orders. Plant and Depreciation 16. Plant ledgers. 17. Construction work in progress ledgers. 18. Retirement work in progress ledgers. 19. Summary sheets. 20. Appraisals and valuations. 21. Engineering records. 22. Contracts relating to utility plant. 23. Reclassification of utility plant account records. 24. Accumulated depreciation and depletion of utility plant account records. Purchase and Stores 25. Procurement. 26. Material ledgers. 27. Materials and supplies received and issued. 28. Records of sales of scrap and materials and supplies. Revenue Accounting and Collection 29. Customers' service applications and contracts. 30. Rate schedules. 31. Maximum demand and demand meter record cards. 32. Miscellaneous billing data. 33. Revenue summaries. Tax 34. Tax records. Treasury 35. Statements of funds and deposits. 36. Records of deposits with banks and others. Miscellaneous 37. [Reserved.] 38. Statistics. 39. Budgets and other forecasts. 40. Records of predecessors companies. 41. Reports to Federal and State regulatory commissions. 42. Advertising. [Order 617, 65 FR 48156, Aug. 7, 2000; 65 FR 50638, Aug. 21, 2000]
Title 18: Conservation of Power and Water Resources
PART 125—PRESERVATION OF RECORDS OF PUBLIC UTILITIES AND LICENSEES
Section Contents
§ 125.1 Promulgation.
§ 125.2 General instructions.
§ 125.3 Schedule of records and periods of retention.
§ 125.1 Promulgation.
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§ 125.2 General instructions.
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§ 125.3 Schedule of records and periods of retention.
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Schedule of Records and Periods of Retention------------------------------------------------------------------------ Item No. and description Retention period------------------------------------------------------------------------ Corporate and General1. Reports to stockholders: Annual 5 years. reports or statements to stockholders.2. Organizational documents: (a) Minute books of stockholders', 5 years or termination of the directors', and directors' corporation's existence, committee meetings. whichever occurs first. (b) Titles, franchises, and 6 years after final non- licenses: Copies of formal orders appealable order. of regulatory commissions served upon the utility.3. Contracts, including amendments and agreements (except contracts provided for elsewhere): (a) Service contracts, such as for All contracts, related management, accounting, and memoranda, and revisions financial services. should be retained for 4 years after expiration or until the conclusion of any contract disputes pertaining to such contracts, whichever is later. (b) Contracts with others for All contracts, related transmission or the purchase, sale memoranda, and revisions or interchange of product. should be retained for 4 years after expiration or until the conclusion of any contract disputes or governmental proceedings pertaining to such contracts, whichever is later. (c) Memoranda essential to For the same periods as clarifying or explaining contracts to which they provisions of contracts listed relate. above, including requests for discounts. (d) Card or book records of For the same periods as contracts, leases, and agreements contracts to which they made, showing dates of expirations relate. and of renewals, memoranda of receipts, and payments under such contracts.4. Accountants' and auditors' reports: (a) Reports of examinations and 5 years after the date of the audits by accountants and auditors report. not in the regular employ of the utility (such as reports of public accounting firms and commission accountants). (b) Internal audit reports and 5 years after the date of the working papers. report. Information Technology Management5. Automatic data processing records Retain as long as it represents (retain original source data used as an active viable program or input for data processing and data for periods prescribed for processing report printouts for the related output data, whichever applicable periods prescribed is shorter. elsewhere in the schedule): Software program documentation and revisions thereto. General Accounting Records6. General and subsidiary ledgers: (a) Ledgers: (1) General ledgers............ 10 years. (2) Ledgers subsidiary or 10 years. auxiliary to general ledgers except ledgers provided for elsewhere. (b) Indexes: (1) Indexes to general ledgers. 10 years. (2) Indexes to subsidiary 10 years. ledgers except ledgers provided for elsewhere. (c) Trial balance sheets of general 2 years. and subsidiary ledgers.7. Journals: General and subsidiary.... 10 years.8. Journal vouchers and journal entries including supporting detail: (a) Journal vouchers and journal 10 years. entries. (b) Analyses, summarization, distributions, and other computations which support journal vouchers and journal entries: (1) Charging plant accounts.... 25 years. See § 125.2(g). (2) Charging all other accounts 6 years. 9. Cash books: General and subsidiary 5 years after close of fiscal or auxiliary books. year.10. Voucher registers: Voucher 5 years. See § 125.2(g). registers or similar records when used as a source document.11. Vouchers: (a) Paid and canceled vouchers (one 5 years. See § 125.2(g). copy-analysis sheets showing detailed distribution of charges on individual vouchers and other supporting papers). (b) Original bills and invoices for 5 years. See § 125.2(g). materials, services, etc., paid by vouchers. (c) Paid checks and receipts for 5 years. payments of specific vouchers. (d) Authorization for the payment 5 years. See § 125.2(g). of specific vouchers. (e) Lists of unaudited bills Destroy at option. (accounts payable), list of vouchers transmitted, and memoranda regarding changes in audited bills. (f) Voucher indexes................ Destroy at option. Insurance12. Insurance records: (a) Records of insurance policies Destroy at option after in force, showing coverage, expiration of such policies. premiums paid, and expiration dates. (b) Records of amounts recovered 6 years. See § 125.2(g). from insurance companies in connection with losses and of claims against insurance companies, including reports of losses, and supporting papers. Operations and Maintenance13.1 Production_Public utilities and licensees (less Nuclear): (a) Boiler-tube failure report..... 3 years. (b) Generation and output logs with 3 years. supporting data:. (c) Station and system generation reports and clearance logs: (1) Hydro-electric............. 25 years. See § 125.2(g). (2) Steam and others........... 6 years. See § 125.2(g). (d) Generating high-tension and low- 3 years. tension load records. (e) Load curves, temperature logs, 3 years. coal, and water logs. (f) Gauge-reading reports.......... 2 years, except river flow data collected in connection with hydro operation must be retained for life of corporation. (g) Recording instrumentation 1 year, except where the basic charts. chart information is transferred to another record, the charts need only be retained 6 months provided the record containing the basic data is retained 1 year.13.2 Production_Nuclear: For informational purposes, refer to the document retention requirements of the Nuclear Regulatory Commission.14. Transmission and distribution_Public utilities and licensees. (a) Substation and transmission 3 years. line logs. (b) System operator's daily logs 3 years. and reports of operation. (c) Transformer history records.... For life of transformer. (d) Records of transformer Destroy at option. inspections, oil tests, etc.15. Maintenance work orders and job orders: (a) Authorizations for expenditures 5 years. for maintenance work to be covered by work orders, including memoranda showing the estimates of costs to be incurred. (b) Work order sheets to which are 5 years. posted in detail the entries for labor, material, and other charges in connection with maintenance, and other work pertaining to utility operations. (c) Summaries of expenditures on 5 years. maintenance and job orders and clearances to operating other accounts (exclusive of plant accounts). Plant and Depreciation16. Plant ledgers: (a) Ledgers of utility plant 25 years. See § 125.2(g). accounts including land and other detailed ledgers showing the cost of utility plant by classes. (b) Continuing plant inventory 25 years. See § 125.2(g). ledger, book or card records showing description, location, quantities, cost, etc., of physical units (or items) of utility plant owned.17. Construction work in progress ledgers, work orders, and supplemental records: (a) Construction work in progress 5 years after clearance to ledgers. plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. (b) Work orders sheets to which are 5 years after clearance to posted in summary form or in plant account, provided detail the entries for labor, continuing plant inventory materials, and other charges for records are maintained; utility plant additions and the otherwise 5 years after plant entries closing the work orders to is retired. utility plant in service at completion. (c) Authorizations for expenditures 5 years after clearance to for additions to utility plant, plant account except where including memoranda showing the there are ongoing Commission detailed estimates of cost, and proceedings. the bases therefor (including original and revised or subsequent authorizations). (d) Requisitions and registers of 5 years after clearance to authorizations for utility plant plant account except where expenditures. there are ongoing Commission proceedings. (e) Completion or performance 5 years after clearance to reports showing comparison between plant account except where authorized estimates and actual there are ongoing Commission expenditures for utility plant proceedings. additions. (f) Analysis or cost reports 5 years after clearance to showing quantities of materials plant account except where used, unit costs, number of man- there are ongoing Commission hours etc., in connection with proceedings. completed construction project. (g) Records and reports pertaining Destroy at option. to progress of construction work, the order in which jobs are to be completed, and similar records which do not form a basis of entries to the accounts.18. Retirement work in progress ledgers, work orders, and supplemental records: (a) Work order sheets to which are 5 years after plant is retired. posted the entries for removal costs, materials recovered, and credits to utility plant accounts for cost of plant retirement. (b) Authorizations for retirement 5 years after plant is retired. of utility plant, including memoranda showing the basis for determination to be retired and estimates of salvage and removal costs. (c) Registers of retirement work... 5 years.19. Summary sheets, distribution 5 years. sheets, reports, statements, and papers directly supporting debits and credits to utility plant accounts not covered by construction or retirement work orders and their supporting records.20. Appraisals and valuations: (a) Appraisals and valuations made 3 years after appraisal. by the company of its properties or investments or of the properties or investments of any associated companies. (Includes all records essential thereto.). (b) Determinations of amounts by which properties or investments of the company or any of its associated companies will be either written up or written down as a result of: (1) Mergers or acquisitions.... 10 years after completion of transaction or as ordered by the Commission. (2) Asset impairments.......... 10 years after recognition of asset impairment. (3) Other bases................ 10 years after the asset was written up or down.21. The original or reproduction of Retain until retired. engineering records, drawings, and other supporting data for proposed or as-constructed utility facilities: Maps, diagrams, profiles, photographs, field survey notes, plot plan, detail drawings, records of engineering studies, and similar records showing the location of proposed or as- constructed facilities.22. Contracts relating to utility plant: (a) Contracts relating to 6 years after plant is retired acquisition or sale of plant. or sold. (b) Contracts and other agreements 6 years after plant is retired relating to services performed in or sold. connection with construction of utility plant (including contracts for the construction of plant by others for the utility and for supervision and engineering relating to construction work).23. Records pertaining to 6 years. reclassification of utility plant accounts to conform to prescribed systems of accounts including supporting papers showing the bases for such reclassifications.24. Records of accumulated provisions for depreciation and depletion of utility plant and supporting computation of expense: (a) Detailed records or analysis 25 years. sheets segregating the accumulated depreciation according to functional classification of plant. (b) Records reflecting the service 25 years. life of property and the percentage of salvage and cost of removal for property retired from each account for depreciable utility plant. Purchase and Stores25. Procurement: (a) Agreements entered into for the acquisition of goods or the performance of services. Includes all forms of agreements not specifically set forth in Subsection 7 such as but not limited to: Letters of intent, exchange of correspondence, master agreements, term contracts, rental agreements, and the various types of purchase orders: (1) For goods or services 6 years. See § 125.2(g). relating to plant construction. (2) For other goods or services 6 years. (b) Supporting documents including 6 years. See § 125.2(g). accepted and unaccepted bids or proposals (summaries of unaccepted bids or proposals may be kept in lieu of originals) evidencing all relevant elements of the procurement.26. Material ledgers: Ledger sheets of 6 years after the date the materials and supplies received, records/ledgers were created. issued, and on hand27. Materials and supplies received and 6 years. See § 125.2(g). issued: Records showing the detailed distribution of materials and supplies issued during accounting periods28. Records of sales of scrap and materials and supplies: (a) Authorization for sale of scrap 3 years. and materials and supplies. (b) Contracts for sale of scrap 3 years. materials and supplies. Revenue Accounting and Collecting29. Customers' service applications and 4 years after expiration. contracts: Contracts, including amendments for extensions of service, for which contributions are made by customers and others30. Rate schedules: General files of 6 years after published rate published rate sheets and schedules of sheets and schedules are utility service. Including schedules superseded or no longer used suspended or superseded to charge for utility service.31. Maximum demand, and demand meter 1 year, except where the basic record cards chart information is transferred to another record the charts need only be retained 6 months, provided the basic data is retained 1 year.32. Miscellaneous billing data: Billing Destroy at option. department's copies of contracts with customers (other than contracts in general files)33. Revenue summaries: Summaries of 5 years. monthly operating revenues according to classes of service. Including summaries of forfeited discounts and penalties Tax34. Tax records: (a) Copies of tax returns and supporting schedules filed with taxing authorities, supporting working papers, records of appeals of tax bills, and receipts for payment. See Subsection 11(b) for vouchers evidencing disbursements: (1) Income tax returns......... 2 years after final tax liability is determined. (2) Property tax returns....... 2 years after final tax liability is determined. (3) Sales and other use taxes.. 2 years. (4) Other taxes................ 2 years after final tax liability is determined. (5) Agreements between 2 years after final tax associate companies as to liability is determined. allocation of consolidated income taxes. (6) Schedule of allocation of 2 years after final tax consolidated Federal income liability is determined. taxes among associate companies. (b) Filings with taxing 5 years after discontinuance of authorities to qualify plan. employee benefit plans. (c) Information returns and 3 years after final tax reports to taxing authorities. liability is determined. Treasury35. Statements of funds and deposits... For nuclear decommissioning funds, retain records for all items listed for 3 years after final decommissioning is completed. If amortization reserve funds related to licensed projects are maintained, retain until the Commission makes a final determination of the disposition of amortization reserves. (a) Statements of periodic deposits Retain records for the most with fund administrators or recent 3 years. trustees. (b) Statements of periodic Retain records for the most withdrawals from fund. recent 3 years. (c) Statements prepared by fund Retain records until the fund administrator or trustees of fund is dissolved or terminated. activity including: (1) Beginning of the year balance of fund; (2) Deposits with the fund; (3) Acquisition of investments held by the fund; (4) Disposition of investments held by the fund; (5) Disbursements from the fund, including party to whom disbursement was made; (6) End of year balance of fund.36. Records of deposits with banks and others: (a) Statements from depositories Destroy at option after showing the details of funds completion of audit by received, disbursed, transferred, independent accountants. and balances on deposit. (b) Check stubs, registers, or 3 years. other records of checks issued. Miscellaneous37. [Reserved]38. Statistics: Financial, operating 5 years. and statistical reports used for internal administrative or operating purposes.39. Budgets and other forecasts 3 years. (prepared for internal administrative or operating purposes) of estimated future income, receipts and expenditures in connection with financing, construction and operations, including acquisitions and disposals of properties or investments.40. Records of predecessor companies... Retain consistent with the requirements for the same types of records of the utility.41. Reports to Federal and State 5 years. regulatory commissions including annual financial, operating and statistical reports.42. Advertising: Copies of 2 years. advertisements by or for the company on behalf of itself or any associate company in newspapers, magazines, and other publications, including costs and other records relevant thereto (excluding advertising of appliances, employment opportunities, routine notices, and invitations for bids all of which may be destroyed at option).------------------------------------------------------------------------
