FERC Order 898 is a landmark change for the energy industry, representing the first major update to the Uniform System of Accounts (USofA) in over a decade. It introduces new accounting rules and classifications specifically for renewable and energy storage assets, and other related technologies. This blog will explain the key provisions of Order 898 and demonstrate how a comprehensive disclosure management platform like IRIS CARBON® provides a superior solution compared to legacy systems, including Workiva.
The “Why” Behind Order 898: A Modern Energy Grid
The energy landscape has evolved dramatically with the rise of wind, solar, and battery storage. FERC’s previous accounting system, however, was designed for a grid dominated by traditional power plants. This led to inconsistent and often convoluted reporting, where renewables were shoehorned into generic “Other Production” accounts.
FERC Order 898 was issued to address this issue head-on. The core goal is to provide uniformity, consistency, and transparency in accounting for these new technologies. This makes it easier for FERC to fulfill its mission of ensuring just and reasonable rates, while also providing clearer data for investors and stakeholders.
Key Provisions of FERC Order 898: What’s New?
Compliance with Order 898 became effective on January 1, 2025. Here’s a breakdown of the key changes:
- New Accounts for Renewables: The order creates specific new subfunctions within the Production Plant accounts for Solar Production, Wind Production, and Other Non-Hydro Renewable Production. These new accounts include detailed classifications for assets like solar panels, wind turbines, collector systems, and inverters, which were previously lumped together.
- A Dedicated Class for Energy Storage: A new functional class for energy storage assets has been established. This eliminates the previous burden of reclassifying assets between different plant accounts (generation, transmission, distribution) as their function changed.
- Codification of Environmental Credits: The order formalizes the accounting treatment for Renewable Energy Credits (RECs) and similar environmental credits, ensuring consistent reporting across all types of environmental instruments.
- Updated Rules for Computer Equipment: New accounts are created for computer hardware, software, and communication equipment within their respective functional areas (e.g., generation or distribution), rather than just being classified under general administrative accounts. This provides a more accurate representation of where these costs are being incurred.
Why Your Current System May Fall Short
Many companies rely on spreadsheet-based systems or less specialized platforms like Workiva for their FERC reporting. While these tools offer some level of automation, they often lack the deep regulatory expertise needed for a change as significant as Order 898.
Financial Reporting Platforms are great for general collaboration and reporting, but their primary strength lies in SEC reporting. For FERC, they often require extensive manual configuration and data mapping, a process that becomes even more complex with the new accounts in Order 898. You might find yourself:
- Spending hours manually creating and updating new templates to accommodate the new USofA.
- Worrying about human errors during data reclassification and roll-forwards.
- Lacking the specialized, built-in validation checks that are essential for FERC compliance.
- Struggling to get timely, expert support from a team with a deep understanding of FERC-specific regulations.
The IRIS CARBON® Advantage: A Superior Solution for FERC Order 898
IRIS CARBON® is a disclosure management platform built from the ground up for regulatory reporting, with a specialization in FERC. This focus means we don’t just offer generic tools; we provide a purpose-built solution that not only simplifies compliance but also positions you for success.
- Automated Roll-Forwards: Unlike platforms that require you to manually carry data from one period to the next, IRIS CARBON®’s intelligent system automates this process. This saves countless hours and eliminates the risk of human error in a time of significant account changes.
- Built-in FERC Validation & Checks: Our platform isn’t just a blank canvas; it comes pre-loaded with FERC’s own validation rules. It automatically flags inconsistencies and errors related to the new Order 898 accounts, giving you peace of mind and reducing the risk of a filing rejection. This is a level of regulatory expertise that generic platforms can’t match.
- Automated Data Mapping: Our solution simplifies the complex process of mapping your internal financial data to the new FERC XBRL taxonomy. You don’t have to manually create these links; the system intelligently learns and automates the process, making the transition to the new rules seamless.
- Premium Support & Expert Guidance: Our dedicated team isn’t just tech support; they are FERC compliance specialists. They understand the nuances of Order 898 and can provide direct, knowledgeable assistance to ensure your filings are accurate and on time. This expert guidance is a core component of our service, not a costly add-on.
- Unbeatable Cost Efficiency: We understand the financial pressures of the energy industry. Our pricing model is designed to be a fraction of the cost of other enterprise-level solutions, including Workiva, while providing a more specialized and powerful tool for FERC compliance. You get a superior, purpose-built solution for a fifth of the price.
Future-Proof Your FERC Compliance with IRIS CARBON®
FERC Order 898 is more than just a new set of rules; it’s a clear signal of the future of energy reporting. As the grid continues to evolve, so will the regulations. Relying on outdated or generic systems is no longer a viable strategy.
IRIS CARBON® offers a future-proof solution that automates the complexities of FERC Order 898, ensures accuracy, and provides the expert support you need to navigate this new landscape with confidence. Don’t get left behind. Choose a platform that’s built for the energy industry’s future.
