Reminder: New Customer Classes Take Effect for PSC Regulated Water Utilities

January 9, 2014|Tom Karman

The Public Service Commission revised the Uniform System of Accounts for municipal water utilities to add two new customer classes: multifamily and irrigation. Multifamily residential properties, defined as those customers with three or more units served by a single meter, are currently classified as commercial customers. These customers are now to be reported in a new multifamily class. Irrigation customers would be those customers that have an additional meter used to measure irrigation or other outdoor purposes.

The PSC requires the change in reporting for multifamily customers starting with your utility’s 2014 annual report. Therefore, utilities will need to reclassify customers effective for the January or first quarter billing. You will need to establish a new general ledger account to record the revenues billed. You will continue to bill these customers at your current utility rates, however.

Irrigation customers will only need to be reclassified when a utility chooses to establish a separate rate for irrigation service.

Feel free to contact us with any questions regarding implementation of this requirement.


Tom Karman, CPA, is a shareholder on Schenck's government services team. Tom has over 30 years of experience working exclusively in the areas of accounting and auditing for governments and not-for-profit organizations.  



Tags: Government