Accounts

(A) This account shall include the original cost of water plant included in accounts 301 to 399 prescribed herein, owned by the utility and used and useful in the service of the public in its water operations, and having an expectation of life in service of more than one year from date of installation, including such property owned by the utility but held by nominees. (See also account 106 for unclassified construction costs of completed plant actually in service.)

(B) The cost of additions to and betterments of property leased from others, which are includible in this account, shall be recorded in subdivisions separate and distinct from those relating to owned property. (See water plant instruction, § 563.6.)

(A) This account shall be charged with the cost of water plant acquired as an operating unit or system by purchase, merger, consolidation, liquidation, or otherwise, and shall be credited with the selling price of like property transferred to others pending the distribution to appropriate accounts in accordance with water plant instruction, § 563.5.

(A) This account shall include temporarily the balance of utility plant as of the effective date of the prior system of accounts, which has not yet been reclassified as of the effective date of this system of accounts. The detailed or primary accounts in support of this account employed prior to such date shall be continued pending reclassification into the water plant accounts herein prescribed (301-399), but shall not be used for additions, betterments, or new construction.

(B) No charges other than as provided in paragraph A, above, shall be made to this account, but retirements of such unclassified water plant shall be credited hereto and to the detailed or primary accounts maintained in support of this account until the reclassification shall have been accomplished.

(A) This account shall include the original cost of water plant owned by the utility, but leased to others as operating units or systems, where the lessee has exclusive possession.

(B) The property included in this account shall be classified according to the detailed accounts (301 to 399) prescribed for water plant in service, and this account shall be maintained in such detail as though the property were used by the owner in its water operations.

(A) This account shall include the original cost of water plant (except land and land rights) owned and held for future use in water service under a definite plan for such use, to include: (1) Property acquired (except land and land rights) but never used by the utility in water service, but held for such service in the future under a definite plan and (2) property (except land and land rights) previously used by the utility in water service, but retired from such service and held pending its reuse in the future, under a definite plan, in water service.

(B) This account shall also include the original cost of land and land rights owned and held for future use in water service under a plan for such use, to include land and land rights: (1) Acquired but never used by the utility in water service, but held for such service in the future under a plan, and (2) previously held by the utility in water service, but retired from such service and held pending its reuse in the future under a plan, in water service. (See water plant instruction 563.7.)

(C) In the event that property recorded in this account shall no longer be needed or appropriate for future utility operations, the company shall notify the commission of such condition and request approval of journal entries to remove such property from this account.

(D) Gains or losses from the sale of land and land rights or other disposition of such property previously recorded in this account and not placed in utility service shall be recorded directly in account 117, Accumulated Gains and Losses from Disposition of Utility Land and Land Rights.

(E) The property included in this account shall be classified according to the detail accounts (301 to 399) prescribed for water plant in service and the account shall be maintained in such detail as though the property were in service.

Note:

At the end of the year or such other date as a balance sheet may be required by the commission, this account shall include the total of the balances of work orders for water plant which has been completed and placed in service, but which work orders have not been classified for transfer to the detailed water plant accounts.

For the purpose of reporting to the commission, the classification of water plant in service by the prescribed accounts is required; the utility shall also report the balance in this account tentatively classified as accurately as practicable according to prescribed account classifications. The purpose of this provision is to avoid any significant omissions in reported amounts of water plant in service.

(A) This account shall include the total of the balances of work orders for water plant in process of construction.

(B) Work orders shall be cleared from this account as soon as practicable after completion of the job. Further, if a project, such as pumping station or water treatment plant, is designed to consist of two or more units which may be placed in service at different dates, any expenditures which are common to and which will be used in the operation of the project as a whole shall be included in water plant in service upon the completion and the readiness for service of the first unit. Any expenditures which are identified exclusively with units of property not yet in service shall be included in this account.

(C) Expenditures on research and development projects for construction of utility facilities are to be included in a separate subdivision in this account. Records must be maintained to show separately each project along with complete detail of the nature and purpose of the research and development project together with the related costs. Costs recorded in this account related to successful projects become a part of the cost of the project for accounting and rate purposes when the project is placed in service. Costs related to unsuccessful projects may be amortized to operating expenses with the approval of the commission.

Note:

(A) This account shall be credited with the following:

(B) At the time of retirement of depreciable water plant in service, this account shall be charged with the book cost of the property retired and the cost of removal, and shall be credited with the salvage value and any other amounts recovered, such as insurance. (See water plant instruction, § 563.10(b)(2).) When retirements, cost of removal and salvage are entered originally in retirement work orders, the net total of such orders may be included in a separate subaccount hereunder, titled 108.1, Retirement Work in Progress. Upon completion of the work order, the proper distribution to subdivisions of this account shall be made as provided in the following paragraph.

(C) For general ledger and balance sheet purposes, this account shall be regarded and treated as a single composite provision for depreciation. For purposes of analysis, however, each utility shall maintain subsidiary records in which this account is segregated according to the primary water plant accounts. Such subsidiary records shall reflect the current credits and debits to this account in sufficient detail to show separately for each primary water plant account (1) the amount of provision for depreciation, (2) the book cost of property retired, (3) cost of removal, (4) salvage, and (5) other items including recoveries from insurance. (See also, general instruction 561.13, [d].)

(D) When transfers of plant are made from one water plant account to another or from or to another utility department, or from or to nonutility property accounts, the accounting for the related accumulated provision for depreciation shall be as provided in water plant instruction, § 563.12.

(E) The utility is restricted in its use of the accumulated provisions for depreciation to the purposes set forth above. It shall not divert any portion of this account to retained earnings or make any other use thereof without authorization by the commission.

(A) This account shall be credited with amounts charged to account 413, Expenses of Water Plant Leased to Others for current depreciation expense of property included in account 104, Water Plant Leased to Others. Include, also, credits for depreciation applicable to plant acquired as operating units or systems, or for losses transferred to account 182, Extraordinary Property Losses.

(B) The requirements of account 108, Accumulated Provision for Depreciation of Water Plant in Service, regarding retirements chargeable thereto and of subsidiary data to be maintained shall be applicable likewise to this account.

(C) The utility is restricted in its use of the accumulated provisions for depreciation to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without authorization by the commission.

(A) This account shall be credited with amounts charged to account 421, Miscellaneous Nonoperating Income, for depreciation expense on property included in account 105, Water Plant Held for Future Use. Include, also, the balance of accumulated provision for depreciation on property which may be transferred to account 105, Water Plant Held for Future Use, from other property accounts.

(B) The utility is restricted in its use of accumulated provision for depreciation to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without authorization by the commission.

Note:

(A) This account shall be credited with amounts charged to account 404, Amortization of Limited-term Water Plant, for the current amortization of limited-term water investments. It shall be credited also with amounts which may be charged to account 405, Amortization of Other Water Plant, or to account 425, Miscellaneous Amortization, to amortize intangible or other water plant which does not have a definite or terminable life and is not subject to charges for depreciation expense.

(B) When any property to which this account applies is sold, relinquished, or otherwise retired from service, this account shall be charged with the amount previously credited in respect to such property. The book cost of the property so retired less the amount chargeable to this account and less the net proceeds realized at retirement shall be included in account 421.1, Gain or Disposition of Property, or 421.2, Loss on Disposition of Property as appropriate.

(C) Records shall be maintained so as to show separately the balance applicable to each class of property which is being amortized.

(D) The utility is restricted in its use of the accumulated provisions for amortization to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without authorization of the commission.

(A) This account shall be credited with amounts charged to account 413, Expenses of Water Plant Leased to Others, for the current amortization of limited-term or other investments subject to amortization included in account 104, Water Plant Leased to Others.

(B) When any property to which this account applies is sold, relinquished or otherwise retired from service, this account shall be charged with the amount previously credited in respect to such property. The book cost of the property so retired less the amount chargeable to this account and less the net proceeds realized at retirement shall be included in account 421.1, Gain on Disposition of Property, or account 421.2, Loss on Disposition of Property as appropriate.

(C) Records shall be maintained so as to show separately the balance applicable to each class of property which is being amortized.

(D) The utility is restricted in its use of the accumulated provision for amortization to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without authorization by the commission.

(A) This account shall be credited with amounts charged to account 421, Miscellaneous Nonoperating Income, for amortization expense on property included in account 105, Water Plant Held for Future Use. Include, also, the balance of accumulated provision for amortization on property which may be transferred to account 105, Water Plant Held for Future Use, from other property accounts.

(B) The utility is restricted in its use of the accumulated provision for amortization to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without amortization by the commission.

(A) This account shall include amounts determined in accordance with water plant instruction, § 563.5 representing the differences between (1) the amount of money actually paid (or the current money value of any consideration other than money exchanged) for water plant acquired as an operating unit or system by purchase, merger, consolidation, liquidation, or otherwise, plus the costs and expenses incurred in connection with the acquisition and properly related thereto the accounting disposition of which has not been otherwise provided for, and (2) the original cost, estimated if not known, of such property less credits thereto representing contributions in aid of construction and less the amount or amounts credited to accumulated provisions for depreciation and amortization with respect to such property.

(B) This account shall be subdivided so as to show the amounts included herein for each property acquisition, and the amounts related to water plant in service, water plant held for future use, and water plant leased to others. (See water plant instruction, § 563.5.)

(C) The amounts recorded in this account with respect to each property acquisition shall be disposed of, written off, or provision shall be made for the amortization thereof, as follows:

This account shall be credited or debited with amounts which are includible in account 406, Amortization of Water Plant Acquisition Adjustments or account 425, Miscellaneous Amortization, for the purpose of providing for the extinguishment of amounts in account 114, Water Plant Acquisition Adjustments, in instances where the amortization of account 114 is not being made by direct write-offs of the account.

(A) This account shall include the difference between the original cost, estimated if not known, and the book cost of utility plant to the extent that such difference is not properly includible in account 114, Water Plant Acquisition Adjustments.

(B) Amounts included in this account shall be classified in such manner as to show the origin of each amount and shall be disposed of as the commission may approve or direct.

Note:

(A) This account shall include gains and losses from disposition of utility land and land rights as determined by water plant instructions §§ 563.7(e), 563.10(e) and 563.12(c).

(B) Gains or losses recorded in this account in accordance with Paragraph A above shall be reduced by the related Federal income tax when realized and concurrently debited or credited, as appropriate, to account 411.8, Miscellaneous Adjustments of Income Taxes—Utility Operating Income.

(C) The records supporting the entries to this account shall be so kept that the utility can furnish full particulars with respect to the amounts included herein.

This account shall include the balances in accounts for utility plant which is used in common for water operations and other operations. (See water plant instruction, § 563.13.)

(A) This account shall include the balances in accounts for utility plant, other than water plant and common utility plant.

(B) A separate account shall be maintained for each utility department.

Note:

This account shall include the accumulated provision for depreciation and amortization applicable to property carried in common utility plant account 118.1. (See also general instruction, § 561.13 and water plant instruction, § 563.13.)

This account shall include the accumulated provision for depreciation and amortization applicable to property in account 118.2, Other Utility Plant.

In the case of utility services for which systems of accounts are prescribed by this commission, such as electric, gas, steam, etc., the appropriate accounts in such systems shall be used instead of this account.

(A) This account shall include the book cost (except as otherwise provided in water plant instruction § 563.12) of land, structures, equipment or other tangible or intangible property owned by the utility, but not used in utility service and not properly includible in account 105, Water Plant Held for Future Use.

(B) This account shall be subdivided so as to show the amount of property used in operations which are nonutility in character but nevertheless constitute a distinct operating activity of the company (such as operation of an ice department) and the amount of miscellaneous property not used in operations. The records in support of each subaccount shall be maintained so as to show an appropriate classification of the property.

This account shall include the accumulated provision for depreciation and amortization applicable to nonutility property.

(A) This account shall include the book cost of investments in securities issued or assumed by associated companies and investment advances to such companies, including interest accrued thereon when such interest is not subject to current settlement. Include also the offsetting entry to the recording of amortization of discount or premium on interest bearing investments. (See account 419, Interest and Dividend Income.)

(B) The account shall be maintained in such manner as to show the investment in securities of, and advances to, each associated company together with full particulars regarding any of such investments that are pledged.

Note A:

Note B:

Note C:

Note D:

Note E:

(A) This account shall include the book cost of investments in securities issued or assumed by nonassociated companies, investment advances to such companies, and any investments not accounted for elsewhere. Include also the offsetting entry to the recording of amortization of discount expense or premium on interest bearing investments. (See account 419, Interest and Dividend Income.)

(B) The records shall be maintained in such manner as to show the amount of each investment and the investment advances to each person.

(C) When securities with a fixed maturity date are purchased at a discount (that is, when the total cost, including brokerage fees, taxes, commissions, etc., is less than par), such discount may be amortized over the remaining life of the securities through periodic debits to the account in which the securities are carried (preferably coincident with entries recording interest accruals) and credits to the same account in which the interest revenue is recorded. No debits shall be made in respect to discount upon securities held as investments or in special funds if there is reason to believe that such securities will be disposed of by redemption or otherwise at less than par or will not be paid at date of maturity.

(D) When securities with a fixed maturity date are purchased at a premium (that is when the total cost including brokerage fees, taxes, commissions, etc., is in excess of par) such premium may be amortized over the remaining life of the securities through periodic credits to the account in which the securities are carried (preferably coincident with entries recording interest accruals) and debits to the same account in which the interest revenue is recorded.

Note A:

Note B:

Note C:

This account shall include the amount of cash and book cost of investments held in sinking funds. A separate account, with appropriate title, shall be kept for each sinking fund. Transfers from this account to special deposit accounts, may be made as necessary for the purpose of paying matured sinking-fund obligations, or obligations called for redemption but not presented, or the interest thereon.

This account shall include the amount of cash and the book cost of investments which have been segregated in a special fund for the purpose of identifying such assets with the accumulated provisions for depreciation.

This account shall include the amount of cash and book cost of investments which have been segregated in special funds for insurance, employee pensions, savings, relief hospital, and other purposes not provided for elsewhere. A separate account, with appropriate title, shall be kept for each fund.

Amounts deposited with a trustee under the terms of an irrevocable trust agreement for pensions of other employee benefits shall not be included in this account.

This account shall include the amount of current cash funds except working funds.

This account shall include special deposits with fiscal agents or others for the payment of interest.

This account shall include special deposits with fiscal agents or others for the payment of dividends.

This account shall include deposits with fiscal agents or others for special purposes other than the payment of interest and dividends. Such special deposits may include cash deposited with Federal, State, or municipal authorities as a guaranty for the fulfillment of obligations; cash deposited with trustees to be held until mortgaged property sold, destroyed, or otherwise disposed of is replaced; cash realized from the sale of the accounting utility's securities and deposited with trustees to be held until invested in property of the utility, etc. Entries to this account shall specify the purpose for which the deposit is made.

Assets available for general corporate purposes shall not be included in this account. Further deposits for more than one year, which are not offset by current liabilities, shall not be charged to this account but to account 128, Other Special Funds.

This account shall include cash advanced to officers, agents, employees and others as petty cash or working funds.

(A) This account shall include the book cost of investments, such as demand and time loans, bankers' acceptance, United States Treasury certificates, marketable securities, and other similar investments, acquired for the purpose of temporarily investing cash.

(B) This account shall be so maintained as to show separately temporary cash investments in securities of associated companies and of others. Records shall be kept of any pledged investments.

This account shall include the book cost, not includible elsewhere, of all collectible obligations in the form of notes receivable and similar evidences (except interest coupons) of money due on demand or within one year from the date of issue except, however, notes receivable from associated companies. (See account 136 Temporary Cash Investments, and account 145, Notes Receivable from Associate Companies.)

The face amount of notes receivable discounted, sold or transferred without releasing the utility from liability as endorser thereon, shall be credited to a separate subdivision of this account and appropriate disclosure shall be made in financial statements of any contingent liability arising from such transactions.

(A) This account shall include amounts due from customers for utility service and for merchandising, jobbing and contract work. This account shall not include amounts due from associated companies.

(B) This account shall be maintained so as to permit ready segregation of amounts due for merchandising, jobbing and contract work.

(A) This account shall include amounts due the utility upon open accounts, other than amounts due from associated companies and from customers for utility service and merchandising, jobbing and contract work.

(B) This account shall be maintained so as to show separately amounts due subscriptions to capital stock and from officers and employees, but the account shall not include amounts advanced to officers or others as working funds. (See account 135, Working Funds.)

(A) This account shall be credited with amounts provided for losses on accounts receivable which may become uncollectible, and also with collections on accounts previously charged hereto. Concurrent charges shall be made to account 904, Uncollectible Accounts, for amounts applicable to utility operations, and to corresponding accounts for other operations. Records shall be maintained so as to show the write-offs of accounts receivable for each utility department.

(B) This account shall be subdivided to show the provision applicable to the following classes of accounts receivable:

Note A:

Note B:

These accounts shall include notes and drafts upon which associated companies are liable, and which mature and are expected to be paid in full not later than one year from date of issue, together with any interest thereon, and debit balances subject to current settlement in open accounts with associated companies. Items which do not bear a specified due date but which have been carried for more than 12 months and items which are not paid within 12 months from due date shall be transferred to account 123, Investment in Associated Companies.

On the balance sheet, accounts receivable from an associated company may be set off against accounts payable to the same company.

The face amount of notes receivable discounted, sold or transferred without releasing the utility from liability as endorser thereon, shall be credited to a separate subdivision of this account and appropriate disclosure shall be made in financial statements of any contingent liability arising from such transactions.

(A) This account shall include the cost and related stores expense of unissued small tools and unapplied materials and supplies, including fuel; plant materials and operating supplies; merchandise for sale; and materials and supplies held primarily for nonutility purposes. The cost shall include, when practicable the purchase price at the point of free delivery, plus customs duties, excise and other taxes on purchases, insurance, costs of inspection, special tests prior to acceptance, loading and unloading, transportation, and other directly assignable charges; also the related stores expenses for purchasing, storage, handling, and distribution of materials.

(B) As far as practicable, transportation charges for materials shall be included as a part of the cost of the particular materials to which they relate; cash or other discounts on materials shall be deducted in determining the cost of the particular material, or credited to the account to which the material is charged. When such items cannot be assigned directly to particular purchases, they may be included in the subdivisions of this account, 150.152, Fuel Stock Expenses Undistributed, or 150.163, Stores Expenses Undistributed, as appropriate. Where other classes of expenses applicable to materials purchased cannot be directly assigned to particular purchases, they may be charged to account 150.152, or account 150.163, as appropriate.

(C) Materials recovered in connection with construction, maintenance, or the retirement of property shall be charged to this account in accordance with provisions set forth in account 150.154, Plant Materials and Operating Supplies.

(D) Materials and supplies issued shall be credited hereto and charged to the appropriate construction, operating expense, or other account on the basis of a unit price determined by the use of cumulative average, first-in first-out, or such other method of inventory accounting as conforms with accepted accounting standards consistently applied. Stores expenses related to the materials and supplies shall be cleared from the subaccount 150.163, Stores Expense Undistributed, by adding to the cost of materials and supplies issued a suitable loading charge which will distribute the expenses over the stores issued.

(E) Physical inventories of materials, supplies, fuel, etc., shall be taken at least every two years. The necessary adjustments shall be made to bring this account into harmony with the actual inventories. In effecting the adjustment, large differences which can be assigned to important classes of materials shall be equitably adjusted among the accounts to which such classes of materials have been charged since the previous inventory. Other differences shall be equitably apportioned among the accounts to which materials have been charged, or included in the stores expense accounts, 150.152, Fuel Stock Expenses Undistributed, or 150.163, Stores Expense Undistributed, as appropriate.

Note A:

Note B:

(F) Separate subaccounts of this account shall be maintained under the following titles:

Section 150.151.Fuel Stock

Section 150.152.Fuel Stock Expenses Undistributed

Section 150.154.Plant Materials and Operating Supplies

Section 150.155.Merchandise

Note:

Section 150.156.Other Materials and Supplies

Section 150.163.Stores Expense Undistributed

This account shall include amounts representing prepayments of insurance, rents, taxes, interest and miscellaneous items, and shall be kept or supported in such manner as to disclose the amount of each class of prepayment.

This account shall include the amount of interest on bonds, mortgages, notes, commercial paper, loans, open accounts, deposits, etc., the payment of which is reasonably assured and the amount of dividends declared or guaranteed on stocks owned.

Interest which is not subject to current settlement shall not be included herein but in the account in which is carried the principal on which the interest is accrued.

Interest and dividends receivable from associated companies shall be included in account 146, Accounts Receivable from Associated Companies.

This account shall include rents receivable or accrued on property rented or leased by the utility to others.

Rents receivable from Associated Companies shall be included in account 146, Accounts Receivable from Associated Companies.

At the option of the utility, the estimated amount accrued for service rendered, but not billed at the end of any accounting period, may be included herein. In case accruals are made for unbilled revenues, they shall be made likewise for unbilled expenses, such as for the purchase of electric energy.

This account shall include the book cost of all other current and accrued assets, appropriately designated and supported so as to show the nature of each asset included herein.

(A) This account shall include expenses related to the issuance or assumption of debt securities. Amounts recorded in this account shall be amortized over the life of each respective issue under a plan which will distribute the amount equitably over the life of the security. The amortization shall be on a monthly basis, and the amount thereof shall be charged to account 428, Amortization of Debt Discount and Expense. Any unamortized amounts outstanding at the time that the related debt is prematurely reacquired shall be accounted for as indicated in general instruction 561.21.

(B) When the utility recognizes a mortgage recording tax as a tax deduction in the year incurred, account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, shall be debited and account 283, Accumulated Deferred Income Taxes—Other, shall be credited with the amount of the related tax effect, such amount to be amortized concurrently with the related debt expense.

(A) When authorized or directed by the commission, this account shall include extraordinary losses on property abandoned or otherwise retired from service which are not provided for by the accumulated provisions for depreciation or amortization and which could not reasonably have been foreseen and provided for, and extraordinary losses, such as unforeseen damages to property, which could not reasonably have been anticipated and which are not covered by insurance or other provisions.

(B) The entire cost, less net salvage, of depreciable property retired shall be charged to accumulated provision for depreciation. If all, or a portion, of the loss is to be included in this account, the accumulated provision for depreciation shall then be credited and this account charged with the amount properly chargeable hereto.

(C) Application to the commission for permission to use this account shall be accompanied by a statement giving a complete explanation with respect to the items which it is proposed to include herein, the period over which, and the accounts to which it is proposed to write off the charges, and other pertinent information.

(A) This account shall be charged with all expenditures for preliminary surveys, plans, investigations, etc., made for the purpose of determining the feasibility of utility projects under the contemplation. If construction results, this account shall be credited and the appropriate utility plant account charged. If the work is abandoned, the charge shall be to account 426.5, Other Deductions, or to the appropriate operating expense account. (See general instructions, § 561.18.)

(B) The records supporting the entries to this account shall be so kept that the utility can furnish complete information as to the nature and the purpose of the survey, plans, or investigations and the nature and amounts of the several charges.

Note:

(A) This caption shall include undistributed balances in clearing accounts at the date of the balance sheet. Balances in clearing accounts shall be substantially cleared not later than the end of the calendar year unless items held therein relate to a future period.

(B) In addition to the clearing accounts otherwise specifically provided for in this system of accounts (150.152, Fuel Stock Expenses Undistributed and 150.163, Stores Expense Undistributed), the utility shall maintain any other clearing accounts necessary as a medium through which to accumulate initial costs and expenses with respect to particular types of transactions in order to facilitate the distribution and apportionment of charges on equitable bases among the appropriate accounts to which such charges are applicable. The following clearing accounts should be used unless it can be clearly demonstrated that their use is not necessary. (See general instructions, § 561.2, [d], and § 561.15, [b]).

This account shall include amounts shown by work orders for plant installed for temporary use in utility service for periods of less than one year. Such work orders shall be charged with the cost of temporary facilities and credited with payments received from customers and net salvage realized on removal of the temporary facilities. Any net credit or debit resulting shall be cleared to account 471, Miscellaneous Service Revenues.

(A) This account shall include all debits not elsewhere provided for, such as miscellaneous work in progress, and unusual or extraordinary expenses, not included in other accounts, which are in process of amortization, and items the proper final disposition of which is uncertain.

(B) The records supporting the entries to this account shall be so kept that the utility can furnish full information as to each deferred debit.

(A) This account shall include the cost of all expenditures coming within the meaning of Definition (24) of the Uniform System of Accounts, except those properly includible in account 107, Construction Work in Progress.

(B) Costs that are minor or of a general or recurring nature shall be transferred from this account to the appropriate operating expense function or if such costs are common to the overall operations or cannot be feasibly allocated to the various operating accounts, then such costs shall be recorded in account 930, Miscellaneous General Expenses.

(C) When expenditures on a research project are relatively so large that their inclusion in the operating accounts in the year in which they were incurred would seriously distort those accounts, the company may request commission approval to defer such expenditures in this account and amortize them over a future period. Without such approval, expenditures charged to this account shall not be carried beyond the year in which they are incurred.

Note:

(D) The entries in this account shall be so maintained as to show separately each project with complete detail of the nature and purpose of the research and development undertaken together with related costs.

(E) Balances in this account will be considered for rate base treatment as if the amounts were part of the cost of plant in service.

(A) This account, when its use has been authorized by the commission, shall be debited and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or account 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited with an amount equal to that by which income taxes payable for the year are higher because of the inclusion of certain items in income for tax purposes, which items for general accounting purposes will not be fully reflected in the utility's determination of annual net income until subsequent years.

(B) This account shall be credited and account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, or account 410.2, Provision for Deferred Income Taxes, Other Income and Deductions, as appropriate, shall be debited with an amount equal to that by which income taxes payable for the year are lower because of prior payment of taxes as provided by paragraph A above, because of difference in timing for tax purposes of particular items of income or income deductions from that recognized by the utility for general accounting purposes. Such credit to this account and debit to account 410.1 or 410.2 shall, in general, represent the effect on taxes payable in the current year of the smaller amount of book income recognized for tax purposes as compared to the amount recognized in the utility's current accounts with respect to the item or class of items for which deferred tax accounting by the utility was authorized by the commission.

(C) Vintage year records with respect to entries to this account, as described above, and the account balance, shall be so maintained as to show the factor of calculation with respect to each annual amount of the item or class of items for which deferred tax accounting by the utility is utilized.

(D) The utility is restricted in its use of this account to the purposes set forth above. It shall not make use of the balance in this account or any portion thereof except as provided in the text of this account, without prior approval of the commission. Any remaining deferred tax account balance with respect to an amount for any prior year's tax deferral, the amortization of which or other recognition in the utility's income accounts has been completed, or other disposition made, shall be debited to account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, or account 410.2, Provision for Deferred Income Taxes, Other Income and Deductions, as appropriate, or otherwise disposed of as the commission may authorize or direct.

(A) These accounts shall include the par value or stated value of stock without par value if such stock has a stated value, and, if not, the cash value of the consideration received for such stock without par value, of each class of capital stock actually issued, including such capital stock in account 217, Reacquired Capital Stock.

(B) When the actual cash value of the consideration received is more than the par or stated value of any stock having a par or stated value, the difference shall be credited to the premium account for the particular class and series.

(C) When capital stock is retired, these accounts shall be charged with the amount at which such stock is carried herein.

(D) A separate ledger account, with a descriptive title, shall be maintained for each class and series of stock. The supporting records shall show the shares nominally issued, actually issued and nominally outstanding.

Note A:

Note B:

(A) These accounts shall include the amount of legally enforceable subscriptions to capital stock of the utility. They shall be credited with the par or stated value of the stock subscribed, or the subscription price of stock without par or stated value, exclusive of accrued dividends, if any. Concurrently, a debit shall be made to subscriptions to capital stock, included as a separate subdivision of account 143, Other Accounts Receivable, for the agreed price. Any premium on capital stock with par or stated value shall be included in the premium account.

(B) The records shall be kept in such manner as to show the amount of subscriptions to each class and series of stock.

(A) These accounts shall include the par or stated value or the cash value of the consideration for stock without par or stated value, as appropriate, of capital stock which the utility has agreed to exchange for outstanding securities of other companies in connection with the acquisition of properties of such companies under terms which allow the holders of the securities of the other companies to surrender such securities and receive in return therefor capital stock of the accounting utility.

(B) When the securities of the other companies have been surrendered and capital stock issued in accordance with the terms of the exchange, these accounts shall be charged and accounts 201, Common Stock Issued, or 204, Preferred Stock Issued, as the case may be, shall be credited.

(C) The records shall be kept so as to show separately the stocks of each class and series for which a conversion liability exits.

(A) This account shall include in a separate subdivision for each class and series of stock, the excess of the actual cash value of the consideration received on original issues of capital stock over the par or stated value and accrued dividends of such stock, together with assessments against stockholders representing payments required in excess of par or stated values.

(B) Premium on capital stock shall not be set off against expenses. Further, a premium received on an issue of a certain class or series of stock shall not be set off against expenses of another issue of the same class or series.

(C) When capital stock which has been actually issued is retired, the amount in this account applicable to the shares retired shall be transferred to account 210, Gain on Resale or Cancellation of Reacquired Capital Stock.

This account shall include the balance of credits for donations received from stockholders consisting of capital stock of the utility, cancellation or reduction of debt of the utility, and the cash value of other assets received as a donation.

This account shall include the balance of credits arising from a reduction in the par or stated value of capital stock.

This account shall include the balance of credits arising from the resale or cancellation of reacquired capital stock. (See account 217, Reacquired Capital Stock.)

This account shall include the balance of all other credits for paid-in capital which are not properly includible in the foregoing accounts.

Amounts included in unearned surplus at the effective date of this system of accounts which cannot be classified as to the source thereof shall be included in this account.

(A) This account shall include in a separate subdivision for each class and series of capital stock the amount of installments received on capital stock on a partial or installment payment plan from subscribers who are not bound by legally enforceable subscription contracts.

(B) As subscriptions are paid in full and certificates issued, this account shall be charged and the appropriate capital stock account credited with the par or stated value, or the consideration received for stock without par or stated value. Any premium on capital stock with par or stated value shall be included in the premium account.

(A) This account shall include in a separate subdivision for each class and series of stock all commissions and expenses incurred in connection with the original issuance and sale of capital stock, including additional capital stock of a particular class or series as well as first issues. Expenses applicable to capital stock shall not be deducted from premium on capital stock.

(B) When capital stock which has been actually issued by the utility is retired, the amount in this account applicable to the shares retired shall be written off to account 210, Gain on Resale or Cancellation of Reacquired Capital Stock, provided, however, that the amount shall be charged to account 439, Adjustments to Retained Earnings, to the extent that it exceeds the balance in account 210.

(C) The utility may amortize the balance in this account by systematic charges to account 425, Miscellaneous Amortization, or it may write off capital stock expense in whole or in part by charges to account 439, Adjustments to Retained Earnings.

Note:

This account shall include the amount of retained earnings which has been appropriated or set aside for specific purposes. Separate subaccounts shall be maintained under such titles as will designate the purpose for which each appropriation was made.

This account shall include the balance, either debit or credit, of unappropriated retained earnings arising from earnings. It shall not include items includible in any of the accounts for paid-in capital.

(A) This account shall include in a separate subdivision for each class and series of capital stock, the cost of capital stock actually issued by the utility and reacquired by it and not retired or canceled, except, however, stock which is held by trustees in sinking or other funds.

(B) When reacquired capital stock is retired or canceled, the difference between its cost, including commissions and expenses paid in connection with the reacquisition, and its par or stated value (or the proportionate amount at which it is recorded in accounts 201 or 204 in the case of stock without par or stated value) plus any premium and less any expense applicable to the shares retired, shall be debited or credited as appropriate, to account 210, Gain on Resale or Cancellation of Reacquired Capital Stock; provided, however, that debits shall be charged to account 439, Adjustments to Retained Earnings, to the extent that they exceed the balance in account 210.

(C) Subject to the specific authorization or direction of the commission (see section 69 of Public Service Law), when reacquired capital stock is resold by the utility, the difference between the amount received on the resale of the stock, less expenses incurred in the resale, and the cost of the stock included in this account shall be accounted for as outlined in paragraph B.

This account shall include, in a separate subdivision for each class and series of bonds, the face value of the actually issued and unmatured bonds which have not been retired or canceled; also, the face value of such bonds issued by others the payment of which has been assumed by the utility.

(A) This account shall include the face value of bonds actually issued or assumed by the utility and reacquired by it and not retired or canceled. (See section 69 of Public Service Law.) The account for reacquired debt shall not include securities which are held by trustees in sinking or other funds.

(B) When bonds are reacquired, the difference between face value adjusted for unamortized discount, expense or premium and the amount paid upon reacquisition shall be accounted for in accordance with provisions set forth in general instruction 561.2.

(A) This account shall include the face value of notes payable to associated companies and the amount of open book accounts representing advances from associated companies. It does not include notes and open accounts representing indebtedness subject to current settlement which are includible in account 233, Notes Payable to Associated Companies, or account 234, Accounts Payable to Associated Companies. (See general instruction, § 561.15.)

(B) The records supporting the entries to these accounts shall be so kept that the utility can furnish complete information concerning each note and open account.

(A) This account shall include, until maturity, all long-term debt not otherwise provided for. This covers such items as receivers' certificates, real estate mortgages executed or assumed, assessments for public improvements, notes and unsecured certificates of indebtedness not owned by associated companies, receipts outstanding for long-term debt, and other obligations maturing more than one year from date of issue or assumption. (See balance sheet instruction, § 562.2.)

(B) Separate accounts shall be maintained for each class of obligation, and records shall be maintained to show separately for each class all details as to date of obligation, date of maturity, interest dates and rates, security for the obligation, etc.

Note:

(A) This account shall include the excess of the cash value of consideration received over the face value upon the issuance or assumption of long-term debt securities.

(B) Amounts recorded in this account shall be amortized over the life of each respective issue under a plan which will distribute the amount equitably over the life of the security. The amortization shall be on a monthly basis, with the amounts thereof to be credited to account 429, Amortization on Premium on Debt—Credit. (See general instruction 561.21.)

(A) This account shall include the excess of the face value of long-term debt securities over the cash value of consideration received therefor, related to the issue or assumption of all types and classes of debt.

(B) Amounts recorded in this account shall be amortized over the life of the respective issues under a plan which will distribute the amount equitably over the life of the securities. The amortization shall be on a monthly basis, with the amounts thereof charged to account 428, Amortization of Debt Discount and Expense. (See general instruction 561.21.)

This account shall include the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness, payable on demand or within a time not exceeding one year from date of issue, to other than associated companies.

This account shall include all amounts payable by the utility within one year, which are not provided for in other accounts.

These accounts shall include amounts owing to associated companies on notes, drafts, acceptances, or other similar evidences of indebtedness, and open accounts payable on demand or not more than one year from date of issue or creation.

Exclude from these accounts notes and accounts which are includible in account 223, Advances from Associated Companies.

This account shall include all amounts deposited with the utility by customers as security for the payment of bills.

(A) This account shall be credited with the amount of taxes accrued during the accounting period, corresponding debits being made to the appropriate accounts for tax charges. Such credits may be based upon estimates, but from time to time during the year as the facts become known, the amount of the periodic credits shall be adjusted so as to include as nearly as can be determined in each year the taxes applicable thereto. Any amount representing a prepayment of taxes applicable to the period subsequent to the date of the balance sheet, shall be shown under account 165, Prepayments.

(B) If accruals for taxes are found to be insufficient or excessive, correction therefor shall be made through current tax accruals. However, if such corrections are so large as to seriously distort current expenses, see general instruction, § 561.8.

(C) Accruals for taxes shall be based upon the net amounts payable after credit for any discounts, and shall not include any amounts for interest on tax deficiencies or refunds. Interest received on refunds shall be credited to account 419, Interest and Dividend Income, and interest paid on deficiencies shall be charged to account 431, Other Interest Expense.

(D) The records supporting the entries to this account shall be kept so as to show for each class of taxes, the amount accrued, the basis for the accrual, the accounts to which charged, and the amount of tax paid.

This account shall include the amount of interest accrued but not matured on all liabilities of the utility not including, however, interest which is added to the principal of the debt on which incurred. Supporting records shall be maintained so as to show the amount of interest accrued on each obligation.

This account shall include the amount of dividends which have been declared but not paid. Dividends shall be credited to this account when they become a liability.

This account shall include the amount of long-term debt (including any obligation for premiums) matured and unpaid, without specific agreement for extension of the time of payment and bonds called for redemption but not presented.

This account shall include the amount of matured interest on long-term debt or other obligations of the utility at the date of the balance sheet unless such interest is added to the principal of the debt on which incurred.

This account shall include the amount of taxes, collected by the utility through payroll deductions or otherwise pending transmittal of such taxes to the proper taxing authority.

Do not include liability for taxes assessed directly against the utility which are accounted for as part of the utility's own tax expense.

This account shall include the amount of all other current and accrued liabilities not provided for elsewhere appropriately designated and supported so as to show the nature of each liability.

This account shall include advances by customers for construction which are to be refunded either wholly or in part. When a customer is refunded the entire amount to which he is entitled according to the agreement or rule under which the advance was made, the balance if any, remaining in this account shall be credited to the water plant accounts to which the cost of the property was charged.

(A) This account shall include advance billings and receipts and other deferred credit items, not provided for elsewhere, including amounts which cannot be entirely cleared or disposed of until additional information has been received.

(B) Amounts for contributions in aid of construction still remaining in the account “Contributions in Aid of Construction” at the effective date of the uniform system of accounts prescribed herein shall be credited temporarily to an appropriate subdivision of this account and shall be disposed of in accordance with provisions of water plant instruction, § 563.2, subdivision (e).

(A) This account shall be credited with investment tax credits allowed in the current year on property defined in section 50 of the Internal Revenue Code of 1954, when the utility elects to defer such credits rather than to recognize in the income statement the total benefits of the tax credit as realized. The utility may not transfer amounts from this account except as authorized herein and in accounts 411.4, Investment Tax Credit Adjustments, Utility Operations; 411.5, Investment Tax Credit Adjustments, Nonutility Operations; and 420, Investment Tax Credits, or with approval of the commission. (See special instructions for accounts 411.4 and 411.5.)

(B) If the investment tax credits deferred in this account are to be applied as a reduction of the rate base, the utility shall amortize the amount of such deferrals by debiting this account and crediting account 420, Investment Tax Credits with a proportionate amount determined in relation to the book service life of the property to which the tax credits relate. If, however, the deferred investment tax credits are to be applied as a reduction of the cost of service, the proportionate restorations to income shall be credited to account 411.4, Investment Tax Credit Adjustments, Utility Operations.

(C) Subdivisions of this account by department shall be maintained for deferred investment tax credits which are related to utility operations other than water or to nonutility operations. Accounting procedures adopted for utility and nonutility operations are to be followed on a consistent basis.

(D) Separate records shall be maintained for each year's investment tax credit for water and other utility operations (by primary utility plant accounts) and for nonutility operations, identifying the properties giving rise to the investment tax credits for each year so that they can be amortized over the weighted average book service life of such properties.

(E) The utility is restricted in its use of this account to the purposes set forth above. Unless otherwise authorized by the commission, the utility shall not record in this account amounts of investment tax credits allowed on property other than that defined in section 50 of the Internal Revenue Code of 1954. Such amounts of investment tax credits shall be treated as a current reduction of income tax expense unless the commission has authorized other disposition.

(A) This account shall be credited and account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred Income Taxes, Other Income and Deductions, as appropriate, shall be debited with an amount equal to that by which taxes on income payable for the year are lower because of the use of accelerated (five-year) amortization of (1) certified defense facilities in computing such taxes, as permitted by section 168 of the Internal Revenue Code of 1954 and (2) certified pollution control facilities in computing such taxes, as permitted by section 169 of the Internal Revenue Code of 1954, as compared to the depreciation (deduction) otherwise appropriate and allowable for tax purposes according to the straight line or other nonaccelerated depreciation method and appropriate estimated useful life of such property.

(B) This account shall be debited and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited with an amount equal to that by which taxes on income payable for the year are greater because of the use in prior years of accelerated (five-year) amortization of (1) certified defense facilities and (2) pollution control facilities instead of nonaccelerated or nonliberalized depreciation otherwise appropriate for income tax purposes, and deferral of taxes in such prior years as described in paragraph A, above. Such debit to this account and credit to account 411.1 or 411.2, shall, in general, represent the effect of taxes payable for the current year of the unavailability of a depreciation deduction for tax purposes, or a reduced amount, with respect to any depreciable property for which accelerated amortization was used in prior years, as compared to the depreciation deduction otherwise available and appropriate for such property, considering its estimated useful life, according to the depreciation method ordinarily used by the utility for similar property in computing depreciation for tax purposes by a nonaccelerated or nonliberalized depreciation method.

(C) Records with respect to entries to this account, as described above, and the account balance, shall be so maintained as to show the factors of calculation and the separate amounts applicable to the facilities of each certification or authorization of accelerated amortization for tax purposes.

(D) The use of this account and the accounting described above are not mandatory for any utility which, in accordance with a consistent policy, elects not to follow deferred tax accounting even though accelerated amortization is used in computing taxes on income. If, however, deferred tax accounting is initiated with respect to any certified defense facility or certified pollution control facility, the accounting shall not be suspended or discontinued on the property covered by that certificate without approval of the commission.

(E) The utility is restricted in its use of this account to the purpose set forth above. It shall not transfer the balance in this account or any portion thereof to retained earnings or make any use thereof except as provided in the text of this account without prior approval of the commission. Any remaining balance of accumulated deferred taxes with respect to any certified defense facility or certified pollution control facility for which deferred tax accounting has been followed, shall, upon expiration of the estimated useful life of the facility on which deferred tax calculations were based, or upon retirement from service of such facility or predominant part thereof be credited to account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, or otherwise be applied as the commission may authorize or direct.

(F) Upon the disposition by sale, exchange, transfer, abandonment or premature retirement of plant of which there is a related balance herein, this account shall be charged with an amount equal to the related income tax expense, if any, arising from such disposition and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited. When the remaining balance, after consideration of any related income tax expenses, is less than $25,000 this account shall be charged and account 411.1 or 411.2, as appropriate, credited with such balance. If after consideration of any related income tax expense, there is a remaining amount of $25,000 or more, the commission shall authorize or direct how such amount shall be accounted for at the time approval for the disposition of accounting is granted. When plant is disposed of by transfer of a wholly owned subsidiary, the related balance in this account shall also be transferred. When the disposition related to retirement of an item or items under a group method of depreciation, where there is no tax effect in the year of retirement, no entries are required in this account if it can be determined that the related balances would be necessary to be retained to offset future group item tax deficiencies.

Note:

(A) This account, when authorized by the commission, shall be used for the deferral and normalization of tax differentials resulting from the use of liberalized depreciation as permitted by section 167 of the Internal Revenue Code of 1954. It shall also be used for the deferral and normalization of tax differentials resulting from the use of the Class Life Asset Depreciation Range, as provided and required by the Revenue Act of 1971.

Note:

(B) This account shall be credited and account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred Income Taxes, Other Income and Deductions, as appropriate, shall be debited with an amount equal to that by which taxes on income payable for the year are lower because of the use of liberalized depreciation in computing such taxes, as permitted by section 167 of the Internal Revenue Code of 1954, as compared to the depreciation deduction otherwise appropriate and allowable for tax purposes for similar property of the same estimated useful life according to the straight line or other nonliberalized method of depreciation to include those accumulated tax deferrals arising from the use of the Class Life Asset Depreciation Range, as provided and required by the Revenue Act of 1971.

(C) This account shall be debited and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited with an amount equal to that by which taxes on income payable for the year are greater because of the use in prior years of liberalized depreciation for income tax purposes, and deferral of taxes in such prior years as described in paragraph B above. Such debit to this account and credit to account 411.1 or 411.2, shall, in general, represent the effect on taxes payable for the current year of the smaller amount of depreciation permitted for tax purposes for the current year with respect to any depreciable property for which liberalized depreciation including Class Life Asset Depreciation Range was used in prior years, as compared to the depreciation deduction otherwise appropriate and available for similar property of the same estimated useful life according to the straight line or other nonliberalized depreciation method ordinarily used by the utility in computing depreciation for tax purposes.

(D) Records with respect to entries to this account, as described above, and the account balance, shall be so maintained as to show the factors of calculation and the separate amounts applicable to the plant additions of each vintage year for each class, group, or unit as to which different liberalized depreciation methods and estimated useful lives have been used. The underlying calculations to segregate and associate deferred tax amounts with the respective vintage years may be based on reasonable methods of approximation, if necessary, consistently applied.

(E) Except for tax deferrals arising from the use of Class Life Asset Depreciation Range, the use of this account and the accounting described above are not permitted for any utility even though liberalized depreciation is used in computing taxes on income, unless prior approval of the commission is obtained. If, as authorized herein, deferred tax accounting is initiated with respect to any property, such accounting shall not be discontinued on that property without approval of the commission.

(F) The utility is restricted in its use of this account to the purposes set forth above. It shall not transfer the balance in the account or any portion thereof to retained earnings or make any use thereof except as provided in the text of this account without prior approval of the commission. Any remaining deferred tax reserve balance with respect to any year's plant additions or subdivisions thereof for which liberalized depreciation accounting has been followed or, upon retirement from service of such property or predominant portion thereof, or upon expiration of the estimated useful life on which the depreciation calculations for tax purposes are based, shall be credited to account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, or otherwise applied as the commission may authorize or direct.

(G) Upon the disposition by sale, exchange, transfer, abandonment or premature retirement of plant on which there is a related balance herein, this account shall be charged with an amount equal to the related income tax expense, if any, arising from such disposition and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited. When the remaining balance, after consideration of any related income tax expenses, is less than $25,000, this account shall be charged and account 411.1 or 411.2, as appropriate, credited with such balance. If after consideration of any related income tax expense, there is a remaining amount of $25,000 or more, the commission shall authorize or direct how such amount shall be accounted for at the time approval for the disposition of accounting is granted. When plant is disposed of by transfer to a wholly owned subsidiary, the related balance in this account shall also be transferred. When the disposition relates to retirement of an item or items under a group method of depreciation where there is no tax effect in the year of retirement, no entries are required in this account if it can be determined the related balances would be necessary to be retained to offset future group item tax deficiencies.

Note:

(A) This account, when its use has been authorized by the commission, shall be credited and account 410.1, Provision for Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for Deferred Income Taxes, Other Income and Deductions, as appropriate, shall be debited with an amount equal to that by which taxes on income payable for the year are lower because of the current use of deductions other than accelerated amortization or liberalized depreciation, in the computation of income taxes which deductions for general accounting purposes will not be fully reflected in the utility's determination of annual net income until subsequent years. However, commission approval is not required for transactions described in general instruction 561.21, subdivision (d), and in account 181, Unamortized Debt Expense. Also, without commission approval, this account and the accounting provided herein shall be used for the deferral and amortization of the tax effects resulting from the current deduction of the cost of removal included in the Class Life Asset Depreciation Range provisions of the Revenue Act of 1971.

(B) This account shall be debited and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, as appropriate, shall be credited with an amount equal to that by which taxes on income payable for the year are greater because of deferral of taxes on income in previous years, as provided by paragraph A, above, because of difference in timing for tax purposes of particular income deductions from that recognized by the utility for general accounting purposes, other than with respect to accelerated amortization or liberalized depreciation. Such debit to this account and credit to account 411.1 or 411.2, shall, in general, represent the effect on taxes payable in the current year of the smaller deduction permitted for tax purposes as compared to the amount recognized in the utility's current accounts with respect to the item or class of items for which deferred tax accounting by the utility was authorized by the commission.

(C) Vintage year records with respect to entries to this account, as described above, and the account balance, shall be so maintained as to show the factors of calculation with respect to each annual amount of the item or class of items for which deferred tax accounting by the utility is utilized.

(D) The utility is restricted in its use of this account to the purposes set forth above. It shall not transfer the balance in the account or any portion thereof to retained earnings or to any other account or make any use thereof except as provided in the text of this account, without prior approval of the commission. Upon the disposition by sale, exchange, transfer, abandonment or premature retirement of items on which there is a related balance herein, this account shall be charged with an amount equal to the related income tax effect, if any, arising from such disposition and account 411.1, Provision for Deferred Income Taxes—Credit, Utility Operating Income, or 411.2, Provision for Deferred Income Taxes—Credit, Other Income and Deductions, shall be credited. When the remaining balance, after consideration of any related tax expenses, is less than $25,000, this account shall be charged and account 411.1 or 411.2, as appropriate, credited with such balance. If after consideration of any related income tax expense, there is a remaining amount of $25,000 or more, the commission shall authorize or direct how such amount shall be accounted for at the time approval for the disposition of accounting is granted. When plant is disposed of by transfer to a wholly owned subsidiary, the related balance in this account shall also be transferred. When the disposition relates to retirement of an item or items under a group method of depreciation where there is no tax effect in the year of retirement, no entries are required in this account if it can be determined that the related balance would be necessary to be retained to offset future group item tax deficiencies.

Note:

(A) This account shall include amounts received by the utility for self-insurance against losses through accident, fire, flood, or other hazards to its own property or property leased from others. The amounts charged to account 924, Property Insurance, or other appropriate accounts to cover such risks shall be credited to this account. A schedule of risks covered by this reserve shall be maintained, giving a description of the property involved, the character of the risks covered and the rates used. (See general instruction, § 561.12.)

(B) Charges shall be made to this account for losses covered by self-insurance. Details of these charges shall be maintained according to the year the casualty occurred which gave rise to the loss.

(A) This account shall be credited with amounts charged to account 925, Injuries and Damages, or other appropriate accounts, to meet the probable liability, not covered by insurance, for deaths or injuries to employees and others, and for damages to property neither owned nor held under lease by the utility. (See general instruction, § 561.12.)

(B) When liability for any injury or damage is admitted by the utility either voluntarily or because of the decision of a court or other lawful authority, such as a workmen's compensation board, the admitted liability shall be charged to this account and credited to the appropriate liability account. Details of these charges shall be maintained according to the year the casualty occurred which gave rise to the loss.

Note:

(A) This account shall include provisions made by the utility and amounts contributed by employees, for pensions, accident and death benefits, savings, relief, hospital and other provident purposes, where the funds represented by the reserve are included in the assets of the utility either in general or in segregated fund accounts. (See general instruction, §§ 561.12 and 561.17; and Operating Expense account 926, Employee Pensions and Benefits.)

(B) Amounts paid by the utility for the purposes for which this reserve is established shall be charged hereto.

(C) A separate account shall be kept for each kind of reserve included herein.

Note:

(A) This account shall include all operating reserves maintained by the utility which are not provided for elsewhere.

(B) This account shall be maintained in such manner as to show the amount of each separate reserve and the nature and amounts of the debits and credits thereto.

Note:

(1) Cost of obtaining certificates authorizing an enterprise to engage in the public utility business.

(2) Fees and expenses for incorporation.

(3) Fees and expenses for mergers or consolidations.

(4) Office expenses incident to organizing the utility.

(5) Stock and minute books and corporate seal.

Annual or other periodic payments under franchises shall not be included herein but in the appropriate operating expense account.

(1) Aerators (when installed as an integral part of collecting and impounding reservoirs).

(2) Bridges and culverts.

(3) Clearing land.

(4) Dams.

(5) Drainage conduits.

(6) Embankments.

(7) Fish ladders and elevators.

(8) Fences.

(9) Gate houses and equipment.

(10) Landscaping.

(11) Lighting systems.

(12) Retaining walls.

(13) Roads and paths.

(14) Sewers.

(15) Spillways and channels.

(16) Any other permanent improvement to collecting and impounding reservoirs.

(1) Clearing land.

(2) Conduits.

(3) Cribs.

(4) Fences.

(5) Gate houses and equipment.

(6) Intake pipes (up to suction header).

(7) Intake wells.

(8) Lighting systems.

(9) Screens and racks.

(1) Clearing land.

(2) Collecting basins.

(3) Collecting pipes.

(4) Fences.

(5) Landscaping.

(6) Lighting systems.

(7) Overflow spillways and channels.

(8) Sewers.

(9) Springs and appurtenances.

(10) Wells, casings and appurtenances, including cost of test wells and non-productive wells drilled as part of a project resulting in a source of water within the same supply area.

(1) Conduits.

(2) Gate houses and equipment.

(3) Piping.

(1) Air chambers.

(2) Blow-offs and overflows.

(3) Bridges and culverts.

(4) Canals.

(5) Electrolysis control equipment.

(6) Gauges and recorders.

(7) Jointing and jointing material.

(8) Manholes.

(9) Meters and meter houses.

(10) Municipal inspection or permits.

(11) Pavement disturbed, including cutting and replacing pavement, pavement base and sidewalks. (See § 563.10, subd. (i).)

(12) Pipes, aqueducts or conduits.

(13) Placing mains and accessories.

(14) Pressure regulators.

(15) Protection of street openings.

(16) Shut-offs.

(17) Special castings.

(18) Sterlizing new mains.

(19) Surge tanks.

(20) Trenching, including shoring, bracing, bridging, pumping, backfill and disposal of excess excavated material.

(21) Tunnels.

(22) Valves and appurtenances.

(23) Valve vaults.

(1) Ash handling equipment, including hoppers, gates, cars, conveyors, hoists, sluicing equipment; including pumps and motors, sluicing water pipe and fittings, sluicing trenches and accessories, etc., except sluices which are a part of a building.

(2) Boiler feed system, including feed water heaters, evaporative condensers, heater drain pumps, heater drainers, deaerators and vent condensers, boiler feed pumps, surge tanks, feed water regulators, feed water measuring equipment and all associated drives.

(3) Boiler plant cranes and hoists and associated drives.

(4) Boilers and equipment, including boilers and baffles, economizers, superheaters, soot blowers, foundations and settings, water walls, arches, grates, insulation, blow-down system, drying out of new boilers, also associated motors or other power equipment.

(5) Breeching and accessories, including breeching, dampers, soot spouts, hoppers and gates, cinder eliminators, breeching insulation, soot blowers and associated motors.

(6) Coal handling and storage equipment, including coal towers, coal lorries, coal cars, locomotives and tracks when devoted principally to the transportation of coal, hoppers, downtakes, unloading and hoisting equipment, skip hoists and conveyors, weighing equipment, magnetic separators, cable ways, housings and supports for coal handling equipment.

(7) Draft equipment, including air preheaters and accessories, induced and forced draft fans, air ducts, combustion control mechanisms and associated motors or other power equipment.

(8) Gas burning equipment, including holders, burner equipment and piping control equipment, etc.

(9) Instruments and devices, including all measuring, indicating and recording equipment for boiler plant service together with mountings and supports.

(10) Lighting systems.

(11) Oil burning equipment, including tanks, heaters, pumps with drive, burner equipment and piping, control equipment, etc.

(12) Pulverized fuel equipment, including pulverizers, accessory motors, primary air fans, cyclones and ducts, dryers, pulverized fuel bins, pulverized fuel conveyors and equipment, burners, burner piping, priming equipment, air compressors, motors, etc.

(13) Stacks, including foundations and supports, stack steel and ladders, stack brick work, stack concrete, stack lining, stack painting (first), when set on separate foundations, independent of substructure or superstructure of building.

(14) Station piping, including pipe, valves, fittings, separators, traps, desuperheaters, hangers excavation, covering, etc., for station piping system, including all steam, condensate, boiler feed and water supply piping, etc.

(15) Stoker or equivalent feeding equipment, including stokers and accessory motors, clinker grinders, fans and motors, etc.

(16) Ventilating equipment.

(17) Water purification equipment, including softeners and accessories, evaporators and accessories, heat exchangers, filters, tanks for filtered or softened water, pumps, motors, etc.

(18) Water supply systems, including pumps, motors, strainers, raw water storage tanks, boiler wash pumps, intake and discharge pipes and tunnels not a part of a building.

(19) Wood fuel equipment, including hoppers, fuel hogs and accessories, elevators and conveyors, bins and gates, spouts, measuring equipment and associated drives.

Diesel engines which drive pumps directly shall not be included in this account but in account 326, Diesel Pumping Equipment.

(1) Engines for driving pumps.

(2) Pumps, including setting, gearing, shafting, and belting.

(3) Water piping within station, including valves.

(4) Auxiliary equipment for engines and pumps such as oiling systems, cooling systems, condensers, etc.

(5) Steam lines and valves.

(6) Regulating, recording and measuring devices.

(7) Foundations, frames and bed plates.

(8) Ladders, stairs and platforms if a part of pumping unit.

(1) Motors for driving pumps.

(2) Pumps, including setting, gearing, shafting, and belting.

(3) Water piping within station, including valves.

(4) Auxiliary equipment for motors and pumps such as oiling systems, cooling systems, condensers, etc.

(5) Electric power lines and switching.

(6) Regulating, recording and measuring devices.

(7) Foundations, frames and bed plates.

(8) Ladders, stairs and platforms if a part of pumping unit.

(1) Engines for driving pumps.

(2) Pumps, including setting, gearing, shafting and belting.

(3) Water piping within station, including valves.

(4) Auxiliary equipment for engines and pumps such as oiling systems, cooling systems, condensers, etc.

(5) Oil supply lines and accessories.

(6) Regulating, recording and measuring devices.

(7) Foundations, frames and bed plates.

(8) Ladders, stairs and platforms if a part of pumping unit.

(1) Water wheels and turbines and driving pumps.

(2) Pumps, including setting, gearing, shafting and belting.

(3) Water piping within station, including valves.

(4) Auxiliary equipment for water wheels and turbines and pumps such as oiling systems, cooling systems, condensers, etc., (within walls of pumping station structure).

(5) Regulating, recording and measuring devices.

(6) Foundations, frames and bed plates.

(7) Ladders, stairs and platforms if a part of pumping unit.

Aerators (when installed as an integral of the water treatment plant):

Chemical Treating Plant:

Clear Water Basin:

Filter Plant:

Mixing Chambers:

Sedimentation or Coagulation Basin:

Softening Plant:

(1) Aerators (when installed as an integral part of distribution reservoirs).

(2) Bridges and culverts.

(3) Clearing land.

(4) Dams.

(5) Embankments.

(6) Fences.

(7) Foundations.

(8) Gates and gate houses.

(9) Landscaping.

(10) Lighting systems.

(11) Piping system within reservoirs.

(12) Retaining walls.

(13) Roads and paths.

(14) Rust-proofing apparatus.

(15) Sewers.

(16) Spillways and channels.

(17) Standpipes.

(18) Superstructures.

(19) Tanks.

(20) Towers.

(21) Valves and appurtenances.

(22) Valve vaults and houses.

(23) Water level and control apparatus.

When transmission and distribution mains and associated devices are raised or lowered or other change in their location is made, the cost of the work shall be charged to the maintenance account appropriate for the class of property which is moved. Incidental replacement of retirement units in connection with a change in location shall be accounted for as additions and retirements.

When services are raised or lowered or other change in their location is made, the cost of the work shall be charged to account 675, Maintenance of Services.

This account shall not include meters for recording the output of a supply or treatment plant, or those located on mains. It includes only those meters to record water delivered to customers, including company use and for those used elsewhere in the system if a type available for general use.

The cost of removing and resetting meters shall be charged to account 663, Meter Expenses, to which account shall be credited the salvage recovered from minor items when a meter is removed from service but not permanently retired.

The utility shall maintain a statistical record to show separately the number of each type and size of meter or group of types and sizes as carried in the continuing property record. Underlying records shall be kept so that the utility can determine readily for each such classification the number of company-owned meters in service (subdivided between active and inactive) and the number of meters carried herein but not in service, the latter to include meters undergoing repairs; and the number of meters in service owned by customers.

Minor items shall be included in this account only when in service or associated with a unit of property held in reserve; otherwise they shall be carried in account 150.154, Plant Materials and Operating Supplies.

Charges made to customers for connection, disconnection or reconnection of meters shall be credited to account 471, Miscellaneous Service Revenues.

(1) Cisterns or basins.

(2) Connections to main.

(3) Excavation, backfill, and disposal of excess excavated material.

(4) Fountains, basins, troughs, pools, etc.

(5) Pavement disturbed, cutting and replacing pavement, pavement base and sidewalks. (See § 563.10 subd. (i).)

(6) Piping.

(7) Valves and valve boxes.

(1) Airplanes.

(2) Automobiles.

(3) Bicycles.

(4) Electrical vehicles.

(5) Motor trucks.

(6) Motorcycles.

(7) Repair cars or trucks.

(8) Tractors and trailers.

(9) Other transportation vehicles.

Office equipment, desks, chairs, etc. shall not be included herein but in account 391, Office Furniture and Equipment.

Office equipment, desks, chairs, etc., shall not be included herein but in account 391, Office Furniture and Equipment.

(1) Air compressors, including driving unit and vehicle.

(2) Back filling machines.

(3) Boring machines.

(4) Bulldozers.

(5) Cranes and hoists.

(6) Diggers.

(7) Engines.

(8) Pile drivers.

(9) Pipe cleaning machines.

(10) Pipe coating or wrapping machines.

(11) Tractors—crawler type.

(12) Trenches.

(13) Other power operated equipment.

(1) Antennae.

(2) Booths.

(3) Cables.

(4) Distribution boards.

(5) Extension cords.

(6) Gongs.

(7) Handsets, manual and dial.

(8) Insulators.

(9) Intercommunicating sets.

(10) Loading coils.

(11) Operators' desks.

(12) Poles and fixtures used wholly for telephone and telegraph wires.

(13) Radio transmitting and receiving sets.

(14) Remote control equipment and lines.

(15) Sending keys.

(16) Storage batteries.

(17) Switchboards.

(18) Telautograph circuit connections.

(19) Telegraph receiving sets.

(20) Telephone and telegraph circuits.

(21) Testing instruments.

(22) Towers.

(23) Underground conduit used wholly for telephone or telegraph wires and cable wires.

(1) Hospital and infirmary equipment.

(2) Kitchen equipment.

(3) Recreation equipment.

(4) Radios.

(5) Restaurant equipment.

(6) Soda fountains.

(7) Operator's cottage furnishings.

(8) Other miscellaneous equipment.

Depreciation expense applicable to property included in account 104, Water Plant Leased to Others, shall be charged to account 413, Expenses of Water Plant Leased to Others.

Depreciation expense applicable to transportation equipment, shop equipment, tools, work equipment and power operated equipment and other general equipment may be charged to clearing accounts as necessary in order to obtain a proper distribution of expenses between construction and operation.

Related taxes shall be recorded in account 408.1, Taxes Other Than Income Taxes, Utility Operating Income, or account 409.1, Income Taxes, Utility Operating Income, as appropriate.

Related taxes shall be recorded in account 408.1, Taxes Other Than Income Taxes, Utility Operating Income, or account 409.1, Income Taxes, Utility Operating Income, as appropriate.

Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate.

Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate.

Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate.

Interest accrued, the payment of which is not reasonably assured, dividends receivable which have not been declared or guaranteed, and interest or dividends upon reacquired securities issued or assumed by the utility shall not be credited to this account.

Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate.

This account shall include concurrent credits for allowance for funds used during construction based upon the net cost for the period of construction of borrowed funds used for construction purposes and a reasonable rate upon the utility's own funds when so used. (See Water Plant Instruction 563.3[a], [17].)

By amounts equal to the authorized debits to account 411.4, Investment Tax Credit Adjustments, Utility Operations, for investment tax credits used in calculating income taxes for the current year when the utility's accounting does not provide for the deferral of such credits.

By amounts equal to the debits to account 255, Accumulated Deferred Investment Tax Credits, for the amortization of the deferred tax credits over the book service life of the property to which the tax credits relate when such credits are to be applied as a reduction of the rate base.

(1) Fees collected in connection with the exchange of coupon bonds for registered bonds.

(2) Gain on disposition of investments and reacquisition and resale or retirement of utility's debt securities and investments.

(3) Profit on sale of timber or other natural resources. (See water plant instruction § 563.7(c).)

(4) Profits from operations of others realized by the utility under contracts.

This account shall be credited with the gain on the sale, conveyance, exchange or transfer of utility or other property to another. Amounts relating to gains on land and land rights held for future use recorded in account 105, Water Plant Held for Future Use will be accounted for as prescribed in paragraphs B, C, and D thereof. (See water plant instructions 563.5 subd. [f], 563.7, subd. [e] and 563.10, subd. [e].)

Income taxes on gains recorded in this account shall be recorded in account 409.2, Income Taxes, Other Income and Deductions.

(1) Amortization of utility plant acquisition adjustments, or of intaingibles included in utility plant in service when not authorized to be included in utility operating expenses by the commission. (See account 114, Water Plant Acquisition Adjustments.)

(2) Amortization of amounts in account 182, Extraordinary Property Losses, when not authorized to be included in utility operating expenses by the commission.

(3) Amortization of capital stock expenses when in accordance with a systematic program.

This account shall include all payments or donations for charitable, social or community welfare purposes.

This account shall include all payments for life insurance of officers and employees where company is beneficiary (net premiums less increase in cash surrender value of policies). (See account 926.2, Employee Welfare Expenses—note A.)

This account shall include payments by the company for penalties or fines for violation of any regulatory statutes by the company or its officials.

This account shall include expenditures for the purpose of influencing public opinion with respect to the election or appointment of public officials, referenda, legislation, or ordinances (either with respect to the possible adoption of new referenda, legislation or ordinances or repeal or modification of existing referenda, legislation or ordinances) or approval, modification or revocation of franchises; or for the purpose of influencing the decisions of public officials, but shall not include such expenditures which are directly related to appearances before regulatory or other governmental bodies in connection with the reporting utility's existing or proposed operations.

This account shall include other miscellaneous expenses which are nonoperating in nature, but which are properly deductible before determining total income before interest charges.

This account shall not include interest on nominally issued or nominally outstanding long-term debt, including securities assumed.

(1) Interest on notes payable on demand or maturing one year or less from date and on open accounts, except notes and accounts with associated companies.

(2) Interest on customers' deposits.

(3) Interest on claims and judgments, tax assessments, and assessments for public improvements past due.

(4) Income and other taxes levied upon bondholders of utility and assumed by it.

(1) Significant nonrecurring adjustments or settlements of income taxes.

(2) Significant amounts resulting from litigation or similar claims.

(3) Significant amounts relating to adjustments or settlement of utility revenue under rate processes.

(4) Significant adjustments to plant in service, depreciation and amortization as a result of commission direction.

(5) Write-off of unamortized capital stock expenses.

This account includes all revenues under service classifications which consist of a rate for a specified diameter of service pipe, or per meter, fixture, room, foot of frontage, or other similar unit, plus an additional charge or an adjustment dependent upon the quantity of water delivered.

The records supporting the entries to this account shall be kept so as to show separately for each political subdivision the number, size (i.e., size of hydrant valve opening), and type of hydrants and the diameter of the main to which they are connected, the rate per hydrant or other fire protection charge, and the total revenue.

Do not include herein revenues from water supplied for fire protection or for resale (see accounts 463 and 466) or from sales billed under general service classifications.

Where the contract is reciprocal, i.e., where either party thereto may take water from the other, the total amount receivable for water supplied to the other party shall be included herein and the total amount payable for water received from the other party shall be charged to account 602, Purchased Water.

(1) Fees for changing, or reconnecting service.

(2) Profit on maintenance of appliances, piping or other installations on customers' premises.

(3) Net credit or debit (cost less net salvage and less payment from customers) on closing of work order for plant installed for temporary service of less than one year. (See account 185, Temporary Facilities.)

(4) Recovery of expenses in connection with unauthorized taking of water (billing for the water used shall be included in the appropriate water revenue account.)

Do not include in this account rents from property constituting an operating unit or system. (See account 412, Revenues from Water Plant Leased to Others, and income account instruction § 565.3.)

(1) Commissions on sales or distribution of water of others when sold under rates filed by such others.

(2) Compensation for minor or incidental services provided for others such as customer billing, engineering, etc.

(3) Profit or loss on sale of material and supplies not ordinarily purchased for resale and not handled through merchandising and jobbing accounts.

(4) Sale of steam, but not including sales made by a steam-heating department or transfers of steam under joint facility operations.

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of water source of supply facilities. Direct supervision of specific activities shall be charged to the appropriate account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the operation of the source of supply plant.

(A) This account shall include the cost at the point of delivery of water purchased for resale. This includes charges for readiness to serve and the portion applicable to each accounting period of annual or more frequent payments for the right to divert water at the source of supply.

(B) The records supporting this account shall be so kept as to show each supplier from which water is purchased, point of delivery, quantity purchased, basis of charges and the cost of water purchased. (See note to account 466, Sales for Resale.)

This account shall include the cost of labor, materials used and expenses incurred which are not specifically provided for or are not readily assignable to other water source of supply expense accounts.

This account shall include all rents of property of others used, occupied, or operated in connection with the source of supply system. (See operating expense instruction § 567.3.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the maintenance of water source of supply facilities. Direct supervision of specific jobs shall be charged to the appropriate maintenance account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of structures and improvements, the book cost of which is includible in account 311, Structures and Improvements and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of collecting and impounding reservoirs, the book cost of which is includible in account 312, Collecting and Impounding Reservoirs, and of similar property leased from others. (See operating expense instructions § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of lake, river and other intakes, the book cost of which is includible in account 313, Lake, River and Other Intake, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of wells and springs, the book cost of which is includible in account 314, Wells and Springs, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of infiltration galleries and tunnels, the book cost of which is includible in account 315, Infiltration Galleries and Tunnels, and of similar property leased from others. (See operating instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of mains and appurtenances, the book cost of which is includible in account 316, Supply Mains, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of other water source plant, the book cost of which is includible in account 317, Other Water Source Plant, and any general or other plant the maintenance of which is assignable to the source of supply function and is not provided for elsewhere. (See operating expense instruction § 567.2.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of power production and pumping. Direct supervision of specific activities such as fuel handling, power production, etc., shall be charged to the appropriate account. (See operating expense instruction § 567.1.)

(A) This account shall include the cost of fuel used in the production of power to operate pumps. Records shall be maintained to show the quantity and cost of each type of fuel used.

(B) The cost of fuel shall be charged initially to appropriate fuel accounts carried under account 150.151, Fuel Stock, and cleared to this account on the basis of the fuel used. Fuel handling expenses may be charged to this account as incurred or charged initially to account 150.152, Fuel Stock Expenses Undistributed. In the latter event they shall be cleared to this account on the basis of the fuel used.

(C) The net cost of disposal of residuals (disposal expenses less proceeds from any sales) shall be included herein.

Note:

This account shall include the cost of labor, materials used and expenses incurred in the production of power used to operate pumps. This includes all expenses in preparing and handling of fuel incurred beyond the point where the fuel enters the first boiler plant bunker, hopper, tank or holder, etc. and all expense involved in handling and disposal of fuel residuals within the plant.

When water used for power production is taken from the supply for general distribution, the cost of the water so used may, at the option of the company, be charged to this account and credited to account 929, Duplicate Charges—Credit.

(A) This account shall include the cost of fuel or power purchased used directly in operation of pumps.

(B) This account shall also include the cost of power transferred to water pumping operations from other departments under joint facility arrangements.

(C) The cost of fuel shall be charged initially to appropriate fuel accounts carried under account 150.151, Fuel Stock, and cleared to this account on the basis of the fuel used.

This account shall include the cost of labor, materials used and expenses incurred in operating pumps and auxiliary equipment.

(A) This account shall include credits for expenses of power production or pumping which are charged to others or to other departments under a joint operating arrangement. Include also credits for expenses chargeable to other water accounts outside the pumping group. Full details of the basis of determination of the costs transferred shall be maintained.

(B) If the charge to others or to other departments of the utility include an amount for depreciation, taxes and return on the joint facilities, such portion of the charge shall be credited, in the case of others, to account 472, Rents from Water Property, and in the case of other departments of the utility, to account 473, Interdepartmental Rents.

This account shall include the cost of labor, materials used and expenses incurred which are not specifically provided for or are not readily assignable to other pumping expense accounts.

This account shall include all rents of property of others used, occupied or operated in connection with the pumping of water. (See operating expense instruction § 567.3.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the maintenance of power production and pumping plant. Direct supervision of specific maintenance work shall be charged to the appropriate maintenance account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of structures and improvements used in connection with pumping, the book cost of which is includible in account 321, Structures and Improvements, and of similar property leased from others. (See operating expense instruction § 567.2.)

(A) This account shall include the cost of labor, materials used and expenses incurred in the maintenance of power production equipment used directly in pumping operations, the book cost of which is includible in accounts 322, Boiler Plant Equipment, and 323, Other Power Production Equipment, and of similar equipment leased from others.

(B) For the purpose of making charges hereto and to account 633, Maintenance of Pumping Equipment, the point at which power production plant is distinguished from pumping equipment is defined as follows:

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of pumping equipment, the book cost of which is includible in account 324, Steam Pumping Equipment, 325, Electric Pumping Equipment, 326, Diesel Pumping Equipment, 327, Hydraulic Pumping Equipment, and 328, Other Pumping Equipment and, of similar equipment leased from others, and any general or other plant the maintenance of which is assignable to the pumping function and is not provided for elsewhere. (See paragraph B of account 632, Maintenance of Power Production Equipment.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of water treatment facilities. Direct supervision of specific activities shall be charged to the appropriate account. (See operating expense instruction § 567.1.)

This account shall include the cost of all chemicals used in the treatment of water. Include also the entire cost of any chemicals manufactured by the utility.

(A) This account shall include the cost of labor, materials used and expenses incurred in the operation of the water treatment plant.

(B) The cost of water used for washing filters or for washing or cleaning other water treatment facilities may be charged to this account. When such charges are made, concurrent credits shall be made to account 929, Duplicate Charges Credit.

This account shall include the cost of labor, materials used and expenses incurred which are not specifically provided for or are not readily assignable to other water treatment operation expense accounts.

This account shall include all rents of property of others used, occupied or operated in connection with water treatment. (See operating expense instruction § 567.3.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the maintenance of water treatment plant. Direct supervision of specific jobs shall be charged to the appropriate maintenance account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of structures and improvements, the book cost of which is includible in account 331, Structures and Improvements, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of water treatment equipment, the book cost of which is includible in account 332, Water Treatment Equipment, and of similar equipment leased from others. Include also any general or other plant the maintenance of which is assignable to the water treatment function and is not provided for elsewhere. (See operating expense instruction § 567.2.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of the transmission and distribution system. Direct supervision of specific activities shall be charged to the appropriate account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the operation of distribution reservoirs, tanks and standpipes.

This account shall include the cost of labor, material used and expenses incurred in the operation of transmission and distribution mains, fire mains, services and hydrants.

This account shall include the cost of labor, materials used and expenses incurred in the operation of customer meters and associated equipment.

This account shall include the cost of labor, materials used and expenses incurred in work on customer installations and in inspecting premises and in rendering services to customers of the nature of those indicated by the list of items hereunder.

Amounts billed customers for any work, the cost of which is charged to this account, shall be credited to this account. Any excess over costs shall be transferred to account 471, Miscellaneous Service Revenues.

Do not include in this account expenses incurred in connection with merchandising, jobbing and contract work.

This account shall include the cost of labor, materials used and expenses incurred in transmission and distribution system operation not provided for elsewhere.

This account shall include all rents of property of others used, occupied or operated in connection with the transmission and distribution system. (See operating expense instruction § 567.3.)

This account shall include the cost of labor and expenses incurred in the general supervision and direction of the maintenance of the transmission and distribution system. Direct supervision of specific jobs shall be charged to the appropriate maintenance account. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of structures and improvements, the book cost of which is includible in account 341, Structures and Improvements, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of distribution reservoirs, tanks, standpipes, and related facilities, the book cost of which is includible in account 342, Distribution Reservoirs and Standpipes, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of mains, the book cost of which is includible in account 343, Transmission and Distribution Mains, and of similar property leased from others. (See operating expenses instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of fire mains, the book cost of which is includible in account 344, Fire Mains, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of services, the book cost of which is includible in account 345, Services, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of meters and meter testing equipment, the book cost of which is includible in account 346, Meters, account 395, Laboratory Equipment, and of similar property leased from others. (See operating expense instruction § 567.2.)

The initial testing of meters shall be charged to account 346, Meters.

When water used for testing meters is taken from the supply for general distribution, the cost of water so used may be charged to this account and credited to account 929, Duplicate Charges—Credit.

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of fire hydrants and associated equipment, the book cost of which is includible in account 348, Hydrants, and of similar property leased from others. (See operating expense instruction § 567.2.)

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of plant, the book cost of which is includible in account 349, Other Transmission and Distribution Plant, and any general or other plant the maintenance of which is assignable to the transmission and distribution function and is not provided for elsewhere. (See operating expense instruction § 567.2.)

This account shall include the cost of labor and expenses incurred in the general direction and supervision of customer accounting and collecting activities. Direct supervision of a specific activity shall be charged to account 902, Meter Reading Expenses, or account 903, Customer Records and Collection Expenses, as appropriate. (See operating expense instruction § 567.1.)

This account shall include the cost of labor, materials used and expenses incurred in reading customer meters, and determining consumption when performed by employees engaged in reading meters.

This account shall include the cost of labor, materials used and expenses incurred in work on customer applications, contracts, orders, credit investigations, billing and accounting, collections and complaints.

The cost of work on meter history and meter location records is chargeable to account 663, Meter Expenses.

This account shall be charged with amounts sufficient to provide for losses from uncollectible utility revenues. Concurrent credits shall be made to account 144, Accumulated Provision for Uncollectible Accounts—Credit. Losses from uncollectible accounts shall be charged to account 144.

This account shall include the cost of labor, materials used and expenses incurred not provided for in other accounts.

This account shall include the cost of supervising and directing the sales department, salaries and commissions for soliciting business, sales advertising expenses, and miscellaneous supplies and expenses incurred in sales activities.

Where sales activities of the utility are minor and the expenses are not material, this account need not be maintained, in which event the expenses shall be charged to the administrative and general expense account appropriate for the nature of the expense.

(A) This account shall include the compensation (salaries, bonuses, and other consideration for services, but not including directors' fees) of officers, executives, and other employees of the utility properly chargeable to utility operations and not chargeable directly to a particular operating function.

(B) This account shall be subdivided in accordance with the utility's administrative organization such as executive, accounting, treasury, legal, etc.

(A) This account shall include office supplies and other expenses incurred in connection with the general administration of the utility's operations which are assignable to specific administrative or general departments and are not specifically provided for in other accounts. This includes the expenses of the various administrative and general departments, the salaries and wages of which are includible in account 920.

(B) This account shall be subdivided in accordance with the utility's administrative organization such as executive, accounting, treasury, legal, etc.

Note:

This account shall be credited with administrative expenses recorded in account 920 and 921 which are transferred to construction costs or to nonutility accounts. (See water plant instruction § 563.4.)

(A) This account shall include the fees and expenses of professional consultants and others for general services which are not applicable to a particular operating function nor to other accounts. It shall include also the pay and expenses of persons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the utility.

(B) This account shall be so maintained as to permit ready summarization according to the nature of service and the person furnishing the same.

Note:

(A) This account shall include the cost of insurance or reserve accruals to protect the utility against losses and damages to owned or leased property used in its utility operations. It shall include also the cost of labor and related supplies and expenses incurred in property insurance activities.

(B) Recoveries from insurance companies or others for property damages shall be credited to the account charged with the cost of the damage. If the damaged property has been retired, the credit shall be to the appropriate account for accumulated provision for depreciation.

(C) Records shall be kept so as to show the amount of coverage for each class of insurance carried, the property covered, and the applicable premiums. Any dividends distributed by mutual insurance companies shall be credited to the accounts to which the insurance premiums were charged.

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Note B:

Note C:

(A) This account shall include the cost of insurance or reserve accruals to protect the utility against injuries and damage claims of employees or others, losses of such character not covered by insurance, and expenses incurred in settlement of injuries and damages claims. It shall also include the cost of labor and related supplies and expenses incurred in injuries and damages activities.

(B) Reimbursements from insurance companies or others for expenses charged hereto on account of injuries and damages and insurance dividends or refunds shall be credited to this account.

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Note E:

This account shall include employee pensions, welfare expenses and the costs incurred in the administration of the pension and welfare department. The account shall be maintained according to subaccounts shown below:

Section 926.1.Employee Pensions

Section 926.2.Employee Welfare Expenses

Section 926.3.Pension and Welfare Administration

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Note B:

(A) This account shall include payments to municipal or other governmental authorities, and the cost of materials, supplies and services furnished such authorities without reimbursement in compliance with franchise, ordinance, or similar requirements; provided, however, that the utility may charge to this account at regular tariff rates, instead of cost, utility service furnished without charge under provisions of franchises. (See also account 302, Franchises and Consents.)

(B) When no direct outlay is involved, concurrent credit for such charges shall be to account 929, Duplicate Charges—Credit.

(C) The account shall be maintained so as to readily reflect the amounts of cash outlays, utility service supplied without charge, and other items furnished without charge.

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Note B:

(A) This account shall include all expenses (except pay of regular employees only incidentally engaged in such work) properly includible in utility operating expenses, incurred by the utility in connection with formal cases before regulatory commissions, or other regulatory bodies, or cases in which such a body is a party, including payments made to a regulatory commission for fees assessed against the utility for pay and expenses of such commission, its officers, agents, and employees.

(B) Amounts of regulatory commission expenses which by approval or direction of the commission are to be spread over future periods, shall be charged to account 186, Miscellaneous Deferred Debits, and amortized by charges to this account.

(C) The utility shall be prepared to show the cost of each formal case.

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Note E:

This account shall include concurrent credits for charges which may be made to operating expenses or to other accounts of the utility for the use of utility service from its own supply. Include, also, offsetting credits for any other charges made to operating expenses for which there is no direct money outlay.

(A) This account shall include the cost of labor and expenses incurred in connection with the general management of the utility not provided for elsewhere.

(B) This account shall be maintained or supported in such manner as to readily disclose the principal types of items included herein, as corporate and fiscal expenses, association dues, contributions, etc.

Note A:

Note B:

This account shall include rent properly includible in water operating expenses covering the property of others used, occupied or operated in connection with the administrative and general functions of the utility; and also amounts payable for depreciation, taxes, interest or return, under joint facility agreements. (See operating expense instructions § 567.3 and account 931.2.)

This account shall include expenses properly includible in water operating expenses charged direct or through clearing accounts for costs covering the use of electronic data processing equipment and other mechanical equipment, whether owned or rented from others, in connection with the administrative and general functions of the utility. (See operating expense instruction § 567.3 and account 931.1.)

(A) This account shall include the cost of maintenance of general plant. (See operating expense instruction § 567.2.)

(B) This account shall be subdivided as indicated below:

Section 932.1.Maintenance of Structures

Section 932.2.Maintenance of Office Furniture and Equipment

Section 932.3.Maintenance of Communication Equipment

Section 932.4.Maintenance of Miscellaneous Equipment