1. Address plates and supplies.

2. Automobile service, including charges through clearing account.

3. Bank messenger and service charges. 4. Books, periodicals, bulletins and subscriptions to newspapers, newsletters, tax services, etc.

5. Building service expenses for customer accounts, sales, and administrative and general purposes.

6. Commissions or fees to others for collecting revenues.

7. Communication service expenses. 8. Cost of individual items of office equipment used by general departments which are of small value or short life.

9. Meals, traveling and incidental expenses. 10. Membership fees and dues in trade, technical, and professional associations paid by utility for employees. (Company memberships are includible in account 589). 11. Meter books and binders. 12. Office supplies and expenses.

13. Payment of court costs, witness fees, and other expenses of legal department. 14. Postage, printing and stationery. 15. Rent of office equipment.

16. Repairs of office equipment.

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

ITEMS

1. Fees, pay and expenses of accountants and auditors, actuaries, appraisers, attorneys, engineering consultants, management consultants, negotiators, public relations counsel, tax consultants, etc.

2. Supervision fees and expenses paid under contracts for general management services.

NOTE: Do not include inspection and brokerage fees and commissions chargeable to other accounts or fees and expenses in connection with security issues which are includible in the expenses of issuing securities. 584 Insurance expense.

A. This account shall include the cost of insurance or of reserve accruals (1) to protect the utility against losses and damages to owned or leased property used in its utility operations and (2) to protect the utility against injuries and damages claims of employees or others, losses of such character not covered by insurance, and expenses incurred in settlement of injuries and damages claims.

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. 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.

586 Employee pensions and benefits.

A. This account shall include pensions paid to or on behalf of retired employees, or accruals to provide for pensions, or payments for the purchase of annuities for the purpose, when the utility has definitely, by contract, committed itself to a pension plan under which the pension funds are irrevocably devoted to pension purposes, and payment for employee accident, sickness, hospital, and death benefits, or insurance therefor. Include, also, expenses incurred in medical, educational or recreational activities for the benefit of employees.

B. The utility shall maintain a complete record of accruals or payments for pensions and be prepared to furnish full information to the Commission of the plan under which it has created or proposes to create a pension fund and a copy of the declaration of trust or resolution under which the pension plan is established.

C. There shall be credited to this account the portion of pensions and benefits expenses which is applicable to nonutility operations or which is charged to construction unless such amounts are distributed directly to the accounts involved and are not included herein in the first instance.

588

Regulatory commission expenses.

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, and, also, including payments made to the United States for the administration of the Federal Power Act.

B. Amounts of regulatory commission expense which by approval or direction of the Commission are to be spread over future periods shall be charged to account 183, Other Deferred Debits, and amortized by charges to this account.

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

589 Miscellaneous general expenses.

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

10. Publishing and distributing annual reports to stockholders.

11. Institutional or goodwill advertising. 12. Public notices of financial, operating, and other data required by regulatory statutes, not including, however, notices required in connection with security issues or acquisitions of property.

13. Rents for property used in customer accounts, sales or administrative and general functions.

590 Uncollectible accounts.

This account shall be charged with losses from uncollectible accounts or with accruals to provide for anticipated losses from uncollectible utility revenues. Such accruals shall be credited to acccount 144, Accumulated Provision for Uncollectible Accounts-Cr. If the accrual method is used, losses from uncollectible accounts shall be charged to account 144.

592 Revenues from merchandising, jobbing, and contract work.

593 Costs and expenses of merchandising, jobbing, and contract work. These accounts shall include respectively all revenues derived from the sale of merchandise and jobbing or contract work, including any profit or commission accruing to the utility on jobbing work performed by it as agent under contracts whereby it does jobbing work for another for a stipulated profit or commission, and all expenses incurred in such activities.

NOTE A: The revenues and expenses of merchandising, jobbing and contract work shall be reported in this account if a state regulatory body having jurisdiction over the utility requires the net income therefrom to be reported as an operating expense item; but the amounts shall be reported in accounts 415 and 416 if such regulatory body requires such income to be reported as nonoperating income. In the absence of a requirement by a state regulatory body, the utility may use these accounts or accounts 415 and 416, at its option, in which case the practice of the utility must be consistent. NOTE B: See accounts 415 and 416 for list of items includible herein.

PART 116-UNITS OF PROPERTY FOR USE IN ACCOUNTING FOR ADDITIONS AND RETIREMENTS OF ELECTRIC PLANT

AUTHORITY: The provisions of this Part 116 issued under secs. 3(13), 4(b), 41 Stat. 1063, 1065, as amended, secs. 301, 304(a), 308, 309, 49 Stat. 854, 855, 858; 16 U.S.C. 796(13), 797(b), 825, 825c (a), 825g, 825h.

SOURCE: The provisions of this Part 116 contained in Order 235, 26 F.R. 9887, Oct. 21, 1961, unless otherwise noted.

INSTRUCTIONS

1. The retirement units listed herein are prescribed and are to be accounted for in accordance with Electric Plant Instruction 10, Additions and Retirements of Electric Plant, of the Uniform System of Accounts Prescribed for Class A and Class B Public Utilities and Licensees (Electric Plant Instruction 9 of the Uniform System of Accounts Prescribed for Class C Public Utilities and Licensees).

2. The list of units may be expanded by any utility without other authorization from this Commission, but it shall not to condensed. This, the retirement units listed herein are of maximum size and while a subdivision thereof, or the addition of other units, is permitted, the combination or the increase in size of such units is not permitted without the approval of the Commission.

3. Wherever appropriate, the retirement of any unit of property in the structures or equipment accounts shall include all costs of associated items which pertain solely to that unit, such as the cost of foundations, supports, ladders, runways, enclosures, guards, driving mechanisms, indicating, recording, and measuring devices with their mountings, starting, control, regulating, protective, and safety devices, switchboards, special lighting conduits and wiring, pipes, ducts, spouts, chutes, hoppers, etc.

4. The appearance of a retirement unit under an account warrants the inclusion of the unit in the account mentioned only when the text of the account also indicates the inclusion as the same unit frequently appears under more than one account.

The omission of an item from the list in an account or its inclusion in a functional system does not preclude its treatment as a retirement unit if it is relatively costly and not an integral part of a larger retirement unit. The list of General Retirement Units, instruction 6 below, should be read in connection with the lists under the respective accounts since in some cases retirement units have not been separately listed because they appear in the List of General Retirement Units and are common to more than one account. Likewise the List of General Retirement Units and these instructions should be considered in connection with listed retirement units

designated as "system," etc. In these cases, particularly if "system," etc., be extensive, a component of such system, such as a relative costly piece of apparatus not an integral part of a larger retirement unit, or a unit specified in the List of General Retirement Units, should be separately treated as a retirement unit. 5. It is contemplated that the list of units contained herein will be revised and amended from time to time as experience and conditions warrant.

6. List of General Retirement Units: In all accounts where they occur, the following shall be considered a retirement unit, if relatively costly and not an integral part of the retirement unit specifically listed.

The term "relatively costly" applies to the relationship of the cost of the item to the cost of other items in that particular account or sub-account for the particular station or plant.

(1) Assembly for two or more retirement units.

(2) Blower or fan.

(3) Control installation, automatic, semi-automatic, or remote (such as, pressure, voltage, current, speed, level, weight and volume regulators).

(4) Coupling device, i.e., speed reducer, speed increaser, clutch coupling, etc.

(5) Driving unit, i.e., prime mover, motor, gas engine, etc.

(6) Enclosure for two or more retirement units (fence, guard, railing, etc.).

(7) Foundation for a unit of equipment, when not an integral part of the building and its usefulness is not intended to outlast the equipment for which provided.

(8) Instrument or device for indicating, measuring, recording or weighing. (9) Instrument transformer.

(10) Landscaping (complete at one location).

(11) Plant piping (non-nuclear), a run of any system (gas, oil, steam, water, etc.), 6 inches or over in size, with or without valves, between two or more retirement units of property, and/or a header. (See Note A and Item 17.)

(12) Piping header, 6 inches or over in size, with or without valves or blocking. (See Note A and Item 17.)

(13) Platforms, ladders, stairs, runways (complete section).

(14) Pump.

(15) Road, walk, parking lot, etc. (16) Tank, vessel, etc.

(17) Valve, power operated, pressure reducing, atmospheric relief, or relatively costly valve.

NOTE A: Whenever appropriate, the "piping" costs of additions and retirements shall include all costs for pipes, valves, fittings, specials, covering, hangers, supports, etc., pertaining to the run or header in question.

LIST OF RETIREMENT UNITS (The article a, an, or the, as appropriate, should be read in connection with each retirement unit of property listed herein)

311

STEAM PRODUCTION

Structures and Improvements.

1. Air conditioning system, ventilating system, heating system, or any combination thereof.

2. Bin or bunker (when part of structure framework).

3. Bridge, trestle, etc.

4. Bulkhead, retaining wall, etc.
5. Canal, dam, dock, pier, wharf.
6. Drainage and sewerage system.

7. Elevator, crane, hoist, etc., complete with operating mechanism.

8. Equipment item, such as, a generator, engine, turbine, compressor, or similar item of equipment includible in structures, with or without associated wiring, control equipment, etc.

9. Fence, complete with gates.
10. Fire escape system.

11. Fire protection system.

12. Foundation (equipment) when in

cludible in structure.

13. Light and power system.

14. Plumbing system.

15. Refrigeration system.

16. Railroad or track system, including culverts, etc.

17. Roof, with or without supporting members. (A structure of irregular shape having more than one roof level may have several isolated roofs, each of which shall be considered an entire roof. In the case of structures to which lateral extensions have been made, even though having but one roof level, that part of the roof covering an entire section built at one time shall be considered an entire roof.)

18. Structure, complete, with or without stack or chimney.

19. Tunnel, pipe line, etc.

20. Vacuum cleaning system.

21. Water basin or reservoir.

22. Water supply system, including well.