18 CFR § 367.2450 - Account 245, Derivative instrument liabilities—Hedges

---
identifier: "/us/cfr/t18/s367.2450"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "18 CFR § 367.2450 - Account 245, Derivative instrument liabilities—Hedges"
title_number: 18
title_name: "Conservation of Power and Water Resources"
section_number: "367.2450"
section_name: "Account 245, Derivative instrument liabilities—Hedges"
chapter_name: "FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY"
subchapter_number: "U"
subchapter_name: "REGULATIONS UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT"
part_number: "367"
part_name: "UNIFORM SYSTEM OF ACCOUNTS FOR CENTRALIZED SERVICE COMPANIES SUBJECT TO THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 717  16 U.S.C. 791a  and 42 U.S.C. 16451-16463."
regulatory_source: "Order 684, 71 FR 65226, Nov. 7, 2006, unless otherwise noted."
cfr_part: "367"
---


# 367.2450 Account 245, Derivative instrument liabilities—Hedges

(a) This account must include the change in the fair value of derivative instrument liabilities designated by the service company as cash flow or fair value hedges.

(b) A service company must record the change in the fair value of a derivative instrument liability related to a cash flow hedge in this account, with a concurrent charge to account 219, Accumulated other comprehensive income (§ 367.2190), with the effective portion of the derivative's gain or loss. The ineffective portion of the cash flow hedge must be charged to the same income or expense account that will be used when the hedged item enters into the determination of net income.

(c) A service company must record the change in the fair value of a derivative instrument liability related to a fair value hedge in this account, with a concurrent charge to a subaccount of the asset or liability that carries the item being hedged. The ineffective portion of the fair value hedge must be charged to the same income or expense account that will be used when the hedged item enters into the determination of net income.