Power, Utilities & Renewables FERC Audit Findings - April 2022 (January 2015 through December 2021)

As a result, Versant Power overstated the revenue credits included in its wholesale transmission formula rate calculations for the BHD, which led to understatement of its wholesale transmission revenue requirements and billings to its wholesale transmission customers. [...] Cleco Power LLC FA18-3-000 9/27/2019 Accounting for Jointly Owned Assets – Cleco Power improperly recorded the cost of a transmission asset it did not own in Account 353, Station Equipment, and improperly included the cost of the transmission asset it did not own in its transmission formula rate for the purpose of computing billings to wholesale transmission customers. [...] As a result, Cleco Power understated the revenue credits included in its wholesale transmission formula rates, which led to an overstatement of its wholesale transmission revenue requirements by approximately $100,000 and overbilled its wholesale transmission customers from 2016 to 2018. [...] The misclassifications in Account 165 resulted in an overstatement of NSPM’s rate base used in the wholesale transmission formula rate calculations and overbillings to wholesale transmission customers. [...] The accounting misclassification of the fees in Account 165 and inappropriate amortization of the fees overstated the transmission revenue requirement and resulted in overbillings to Alabama Power’s wholesale customers.