Rural Development Utilities Programs. KENNETH M. ACKERMAN Assistant Administrator Program Accounting and Regulatory Analysis NARUC Staff Subcommittee on Accounting and Finance Phoenix, Arizona May 5, 2009. Topics. Leadership Changes Electric Program Telecommunications Program
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KENNETH M. ACKERMAN
Program Accounting and Regulatory Analysis
NARUC Staff Subcommittee on
Accounting and Finance
May 5, 2009
Loan 2008 2009 2010
Program: Actual Actual Proposed
Direct 5% 99.3 100.0 100.0
Municipal Rate 0.0 0.0 0.0
Direct Treasury Rate 0.0 0.0 0.0
FFB Guaranteed 6,500.0 6,500.0 6,500.0
Non-FFB Guaranteed 0.0 0.0 0.0
Total Loan Program 6,599.3 6,600.0 6,600.0
Rural Development, Electric Programs has
typically setaside $200 million of
FFB loan funds to finance renewable energy
projects, with priorityprocessing.
Infrastructure 2008 2009 2010 Proposed
Broadband: 2008 2009 2010(Proposed)
DLT and Public TV: 2008 2009 2010 (Proposed)
Proposed Changes(Proposed Rule/Statutory):
Rural Development – Rural Utilities Service
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”).
FY 2008 FY 2009 FY 2010 Proposed Actual Available Proposed
Total $1,709.97 $ 1,238.99 $1,467.89
Supplemental FY 2009
ARRA Direct Loans $ 2,733.51
ARRA Grants $ 924.68
2008 Disaster Direct Loans $ 49.58
2008 Disaster Grants $ 17.00
Total Supplemental $ 3,724.77
Authorizes funding of $ 1.38 Billion for the cost of direct loans and grants for the rural water, waster water, and waste disposal programs.
Water & Waster Disposal Grants $ 924,680,000
Direct Water & Waste Disposal Loans $ 2,733,515,731
Letter Issued: April 3, 2009
RUS authorizes the capitalization of the cost of Novinium’s Perficio and Ultrinum injected into underground cable.
RUS borrowers should consider the guaranteed life extension of the injected cable when setting its depreciation rates.
Goal was to recommend accounting treatment and record keeping requirements related to RECs (began its work June 2008)
RUS is establishing Account 159, Renewable Energy Credits, for recording the purchase and sale of RECs. The REC inventory should be valued either by using weighted average, first in first out (FIFO), or specific identification.
RECs that are used to satisfy state or regional Renewable Portfolio Standards should be removed from inventory at cost and offsetting expense recorded if the RECs are being carried with an associated dollar value. RECs accounted for as units with no associated costs shall reduce the number available for sale but will result in no recordable income statement transaction.