TENTATIVE DRAFT K! »{• UNIFORM CLASSIFICATION OF ACCOUNTS FOR NATURAL GAS COMPANIES y PREPARED BY THE PUBLIC SERVICE COMMISSION OF THE COMMONWEALTH OF PENNSYLVANIA HARRISBURG, PENNA.: xm G57 P38t- t U1 ►J < SC C \l oi CONTENTS. it J jr* AuVCci1 ?K 1 Page. Letter to Natural Gas Companies. 7 General Definitions and Instructions. 8 Natural Gas Utility . 8 Classification of Natural Gas Utilities . 8 General Explanation of Accounting Plan . 8 Account Number. 10 Method of Bookkeeping . 10 Accounting Period . 10 Records .. 10 Affiliated Companies . n Control . 11 Forms of Control . 11 Index to Balance Sheet Accounts for Classes A B and C Natural Gas Utilities . Balance Sheet Accounts—Definitions and Instructions Balance Sheet Accounts. Assets . Liabilities . Debt Discount and Expense. Contingent Assets and Liabilities Capital Stock . Preferred Stock . Cumulative. Noncumulative . Participating . Nonparticipating. Common Stock. Debt. Funded Debt.. Unfunded Debt .. Text Explanatory of Balance Sheet Accounts. % Index to Fixed Capital Accounts. Fixed Capital Accounts—Definitions and Instructions Fixed Capital ... s* Original . » Additions . Betterments. H Replacements . Required Data in Fixed Capital Charges Land . 12 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 17 3S 41 41 41 41 41 41 41 42 Cost of Land . 42 Structures . 42 Cost of Structures . 43 Equipment . 43 Cost of Equipment . 43 ( 3 ) 4 Contents. Text Explanatory of Fixed Capital Accounts. Income Accounts—Definitions and Instructions.. Income Accounts . Operating Revenue Accounts . Operating Expense Accounts . Operation . Maintenance . Repairs . Cost.-. Labor . Cost of Labor . Expenses .. Non Operating Revenue Accounts . Non Operating Expense Accounts .. Operating Income or Loss . Non Operating Income or Loss . Gross Income . Net Income or Loss . Accounts Chargeable in Natural Gas Sales . •. . Index to Income Accounts — I. Operating Revenue Accounts. Prescribed for Classes A B and C Natural Gas Utilities. Prescribed for “Class B” Natural Gas Utilities. Prescribed for “Class C” Natural Gas Utilities . Text Explanatory of Income Accounts—I. Operating Revenue Ac¬ counts . Index to Income Accounts — II. Operating Expense Accounts . Prescribed for Classes A B and C Natural Gas Utilities. Prescribed for “Class B” Natural Gas Utilities. Prescribed for “Class C” Natural Gas Utilities. Text Explanatory of Income Accounts—II. Operating Expense Ac¬ counts . Index to Income Accounts—III. Non Operating Revenue Accounts Prescribed for Classes A B and C Natural Gas Utilities. Prescribed for “Class B’’ Natural Gas Utilities . Prescribed for “Class C” Natural Gas Utilities. Text Explanatory of Income Accounts—III. Non Operating Revenue Accounts . Index to Income Accounts—IV. Non Operating Expense Accounts . . Prescribed for Classes A B and C Natural Gas Utilities. Prescribed for “Class B” Natural Gas Utilities. Prescribed for “Class C” Natural Gas Utilities . Text Explanatory of Income Accounts — 'IV. Non Operating Expense Accounts . Index to Income Accounts—V. Gross Income Deduction Accounts .. Prescribed for Classes A B and C Natural Gas Utilities. Prescribed for “Class B’’ Natural Gas Utilities. Prescribed for “Class C” Natural Gas Utilities. Text Explanatory of Income Accounts—V. Gross Income Deduction \ '"'COUNTS . Page. 44 5S 58 5S 5S 58 58 58 59 59 59 59 59 59 59 59 59 59 59 GO GO 61 G2 G3 GT 0>7 72 74 7G 100 100 101 - 102 % 103 107 * • 107 108 109 is 110 113 113 114 115 116 Contents. Page. Index to Income Accounts—Net Income and Net Income Appropria- tion Accounts . 120 Prescribed for Classes A B and C Natural Gas Utilities. 120 Prescribed for “Class B” Natural Gas Utilities .• 121 Prescribed for “Class C’’ Natural Gas Utilities . 122 Text Explanatory of Income Accounts—Net Income and Net Income Appropriation Accounts . 123 Index to Surplus Accounts . 125 Prescribed for Classes A B and C Natural Gas Utilities. 125 Prescribed for “Class B” Natural Gas Utilities . 126 Prescribed for “Class C” Natural Gas Utilities . 127 Text Explanatory of Surplus Accounts . 12S Appendix .. . 133 Balance Sheet Accounts Prescribed for “Class D” Natural Gas Utilities .. 133 Income Accounts Prescribed for “Class D” Natural Gas Utili¬ ties . 135 Surplus Accounts Prescribed for “Class D” Natural Gas Utili¬ ties . 137 THE PUBLIC SERVICE COMMISSION OF THE COMMONWEALTH OF PENNSYLVANIA BUREAU OF ACCOUNTS AND STATISTICS Harrisburg, Pa., October 7, 1018. To the Natural Gas Companies of Pennsylvania: The Public Service Commission of the Commonwealth of Pennsylvania, acting through its Bureau of Accounts and Statistics, under authority of Article V, Section 15, of The Public Service Company Law, has prepared the following tentative draft of a uniform classification of accounts for natural gas compa¬ nies which is submitted to them for their criticisms and suggestions as a preliminary step in the adoption of such a classification to be prescribed later for the use of natural gas companies in Pennsylvania. The term natural gas company or utility as used herein means any body corporate, joint stock company, association, its lessees, assignees, trustees, receivers or other successors in interest; any city, borough, town, township, or county; and any individual, partnership, or association engaged in rendering natural gas services within the Commonwealth of Pennsylvania. In submitting this tentative draff to natural gas companies and others, the Commission is desirous of obtaining from them criticisms, suggestions and recommendations which may in any way make the proposed classification most useful to the utilities and to the Commission. To be assured of proper consid¬ eration such criticisms and suggestions should be received by the Bureau of Accounts and Statistics not later than November 18, 1918. When these criticisms and suggestions have been studied by this Bureau, it will make such revision of this tentative draft as it considers necessary and submit a revised classification to the Commission and also make known to the natural gas companies and others the respects in which it lias amended the tentative draft. The Commission will then set a date for a formal hearing at which any natural gas company or any one else may appear and make objections to the classification of accounts as it then stands. When these objections have been fully considered, the Commission will decide upon the classification in its final form and prescribe it for the use of natural gas com¬ panies that are subject to its regulation. The Bureau of Accounts and Statistics desires to acknowledge the assistance received in the preparation of this tentative draft from the classifications pre¬ pared by the Commissions of other states for various public utilities, the accounting schemes of private corporations engaged in the natural gas industry. Uniform System of Accounts of the American Gas Institute, and the Tentative Scheme of Accounts for Natural Gas Companies prepared by the Natural Gas Association of America. It also desires to acknowledge its indebtedness to those companies that placed their men and facilities at the disposal of the Bureau for an exposition of the field and similar operations of the natural gas industry; and to Mr. H. E. Nease, Statistician of the Public Service Commission of West Virginia, Mr. E. H. Hanna, Auditor of the Public Utilities Commission of Ohio, and certain representatives of the Natural Gas Association of America, all of whom met this Bureau in conference at Pittsburgh on July 15th and made helpful suggestions in regard to different parts of this classification. C. .T. JOYCE. Chief. ( 7 ) GENERAL DEFINITIONS AND INSTRUCTIONS. Natural Gas Utility. In this classification of accounts the term Natural Gas Utility means any “Public Service Company,” as defined in Article I, Section 1, of The Public Service Company Law, engaged in selling natural gas within the Common¬ wealth of Pennsylvania. It includes any body corporate, joint stock company, association, its lessees, assignees, trustees, receivers, or other successors in interest; any city, borough, town, township, or county; and any individual, partnership or association engaged in the natural gas business. The expression “the utility” as used herein means in each instance any natural gas utility that is required to keep the accounts prescribed in this classification. Classification of Natural Gas Utilities. In this classification of accounts natural gas utilities are divided into four classes, as follows: Class A—Natural gas utilities that have an average total annual operating revenue of more than $250,000.00. Class B—Natural gas utilities that have an average total annual operating revenue of more than $50,000.00 but not more than $250,000.00. Class C—Natural gas utilities that have an average total annual operating revenue of more than $5,000.00 but not more than $50,000.00. Class D—Natural gas utilities that have an average total annual operating revenue of $5,000.00 or l*ss. If any company or individual maintains a natural gas system which derives most of its natural gas revenue from sales of its gas to consumers that are affiliated with it, or if any company which maintains a natural gas system primarily for its own use supplies gas tb others and thereby becomes a public service company within the meaning of The Public Service Company Law, it may with the consent of The Public Service Commission first had and obtained keep the accounts prescribed for “Class D” companies provided its annual revenue from sales of gas to other consumers does not exceed five thousand dollars. General Explanation of Accounting Plan. In this classification accounts are divided into the following main divisions: Balance Sheet Accounts Fixed Capital Accounts Income Accounts Surplus Accounts Each of these divisions of accounts is defined in the section of this classifica¬ tion allotted to it. The “Balance Sheet Accounts” are prescribed alike for “Class A”, “Class B”, and “Class C” utilities. Each utility in each of these classes is required to record its assets and liabilities in the appropriate balance sheet accounts pro¬ vided in this classification. Special balance sheet accounts are prescribed for “Class D” utilities on pages 133 and 134. The utilities in “Class D” may keep the balance sheet accounts prescribed for utilities in the other classes. u General Definitions and Instructions. The detailed “Fixed Capital Accounts” for property acquired after December 31, 1918, are prescribed alike for “Class A”, “Class B”, “Class C”, and “Class D” utilities. Each utility in each of these classes is required to record the various items of fixed capital that it acquires after December 31, 1918, in the appro¬ priate fixed capital accounts provided in this classification. The “Income Accounts” and “Surplus Accounts” are not prescribed alike for the different classes of utilities. A minimum number of accounts is pre¬ scribed for the utilities in each class. Each utility in each class is required to keep this minimum number of accounts in so far as such accounts apply to its activities. Utilities in “Class C” may, however, keep the accounts pre¬ scribed for “Class B” or “Class A” utilities and likewise utilities in “Class B” may keep the accounts prescribed for utilities in “Class A”. Special “Income Accounts” on pages 135 and 136 and “Special Surplus Ac¬ counts” on page 137 are prescribed for utilities in “Class D”. The utilities in “Class D” may keep the income and surplus accounts prescribed for utilities in the other classes. The income and surplus accounts of this classification which are defined and which are assigned specific numbers are primarily “Class A” accounts. Some of them, however, contain information which should be kept separately by each utility regardless of its class. Such accounts are therefore prescribed alike for “Class A”, “Class B”, “Class C”, and “Class D” utilities. The other income and surplus accounts prescribed for “Class B”, “Class C”, and “Class D” utilities are not separately defined. They are the result of combining certain defined “Class A” accounts under titles that are each descriptive of a common characteristic of the accounts combined; thus in an account entitled “Metered Private Sales” “Class C” utilities record all those private sales which “Class A” utilities record separately in accounts 300 to 303 inclusive. In like manner “Class D” utilities record in an account entitled “Private Sales” all those private sales which “Class A” utilities record in accounts 300 to 303 inclusive, and accounts 308 to 312 inclusive. Any “Class C” utility therefore will find the substance of its “Metered Private Sales” account described in accounts 300 to 303 inclusive and any “Class D” utility will find the substance of its “Private Sales” account described in accounts 300 to 303 inclusive and accounts 30S to 312 inclusive. In like manner the content of any other account prescribed for “Class D”, “Class C”, or “Class B” utilities, which is not separately defined, is described in the various “Class A” accounts that constitute it. The inter-relation of the income and surplus accounts prescribed for “Class A”, “Class B”, and “Class C” utilities is shown in the various sections of the “Index to Income Accounts Prescribed for Classes A B and C Natural Gas Utilities” and the “Index to Surplus Accounts Prescribed for Classes A B and C Natural Gas Utilities”. In each of these indexes each account which the utilities in each class is required to keep is designated by the class letter of the utility; thus “Class C” utilities are required to keep all those accounts that are followed by the designations (Class C), (Classes B and C), or (Classes A B and C). In like manner “Class B” utilities are required to keep the accounts that are followed by the designations (Class B), (Classes B and C), or (Classes A B and C), and “Class A” utilities are required to keep those followed by the designations (Class A), (Classes A and B), or (Classes A B and C). Where any “Class C” or “Class B” account is the result of combining certain “Class A” accounts these indexes show the “Class A” accounts combined to make the “Class C” or “Class B” account, 1(1 General Definitions and Instructions. Special indexes which show the income and surplus accounts which are prescribed for “Class C” utilities only and which show the “Class A’’ accounts which constitute these “Class C” accounts, are provided. Like special indexes are also provided for “Class B” utilities. Any utility may subdivide any balance sheet, fixed capital, income, or surplus account in order to procure information which it may desire for its own use provided that in doing so it does not impair the integrity of any of the ac¬ counts prescribed. A utility shall not open an account which is not prescribed for its class until it has obtained permission to do so from The Public Service Commission. Account Number. The number prefixed to any account title in this classification is intended to be used for convenience in reference. Any such number need not be treated as a part of the account title to which it is prefixed. Method of Bookkeeping. Every natural gas utility, which is subject to “The Public Service Company Law” of the Commonwealth of Pennsylvania, shall on and after January 1, P.ill), keep its accounts by the double entry method. This requirement does not apply to purely statistical accounts. Accounting Period. It is desired that each natural gas utility select the month as its accounting period and that it make its bookkeeping entries on a monthly basis. It may select a three month or any other base. It will, ihowever. be required to close its books at the end of its fiscal year which under ruling of The Public Service Commission is the year ending December thirty-first. Records. Each natural gas utility shall so keep its general accounting books, and all other books and recoads which support in any way the entries to such account¬ ing books, that it can furnish at any time full information as to any account kept by it. Moreover it shall support each entry to each account with such detailed information as will enable a ready identification and verification of the facts recorded therein. The records referred to herein include not only accounting records, but all other records such as minute books, etc., which will be useful in developing the history of any of the utility’s transactions. Each natural gas utility shall not destroy or otherwise dispose of any records which support entries to any of its accounts until it has been authorized to do so by The Public Service Commission. Moreover each natural gas utility is required under Article II, Section 1, (j), of “The Public Service Company Law” of the Commonwealth of Pennsylvania to keep all books, accounts, records and memoranda in an office within the Com¬ monwealth of Pennsylvania. Furthermore it shall not remove any of them from the Commonwealth except upon such terms and conditions as The Public Service Commission may prescribe. 11 General Definitions and Instructions. Affiliated Companies. In this classification affiliated companies include those companies which the utility solely or jointly controls; those companies which solely or jointly control the utility; those companies that are controlled by companies which the utility controls; those companies which are controlled by companies which control the utility. Control. Control means the ability to determine the action of a company. Such control is sole when it rests in one company. It is joint when it rests in two or more companies and is exercised under a joint arrangement. Forms of Control. One company may exercise control over another through its title to a major portion of the voting securities of such company; through an agreement which enables it to name the majority of the directors, managers, or trustees of such company; through its ability to foreclose a first lien mortgage on all or a major part in value of the property of such company; through its advances for con¬ struction, equipment, additions, or betterments, made to such company and conditioned upon the right to determine its action; through any other right that it may possess to influence the policy of such company in any respect. A leasehold interest in property of a company is not a form of control over that company. INDEX TO BALANCE SHEET ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. ASSET ACCOUNTS. Account Number. Name of Account. Page. I. FIXED CAPITAL ACCOUNTS. KtO. Fixed Capital Installed Prior to January 1, 1919. 17 101. Fixed Capital Installed Since December 31, 191S, . 17 102. Depreciation of Structures and Equipment Reserve. 17 103. Amortization of Intangible Capital Reserve. 19 104. Cost of Fixed Capital Purchased. 19 105. Construction Work in Progress . 19 II. INVESTMENT ACCOUNTS. 106. Investment Securities . 20 107. Property Used in Other Public Services .* . 20 10S. Advances to Affiliated Companies for Construction,- Equipment, or Additions and Betterments . 20 109. Other Investments . 21 III. REACQUIRED SECURITIES ACCOUNTS. 110. Reacquired Capital Stock . 21 111. Reacquired Bonds . 21 IV. FUND ACCOUNTS. 112. Sinking Fund Assets .'. 21 113. Insurance and Other Reserve Fund Assets. 22 V. SPECIAL DEPOSIT ACCOUNTS. 114. Interest Special Deposits . 22 115. Dividend Special Deposits . 22 116. Other Special Deposits .. ..22 VI. CURRENT ASSET ACCOUNTS. 117. Cash . 23 118. Notes Receivable ..*. 23 119. Accounts Receivable from Consumers . 23 120. Accounts Receivable from Affiliated Companies . 24 121. Other Accounts Receivable . 24 122. Matured Interest and Rents Receivable. 24 123. Materials and Supplies . 24 124. Other Current Assets . 24 \ 13 Index—Balance Sheet Accounts. Account Number. Name of Account. Page. VII. ACCRUED ASSET ACCOUNTS. 125. Unmatured Interest and Rents Receivable. 25 VIII. PREPAID ACCOUNTS. 126. Prepaid Insurance . 127. Prepaid Interest ... 128. Prepaid Taxes . 120. Other Prepaid Accounts . IX. DEFERRED CHARGE ACCOUNTS. 130. Discount on Capital Stock.. 131 . Unamortized Debt Discount and Expense. 132. Property Abandoned . 133. Extraordinary Casualties . 134. Preliminary Survey" and Investigation Charges. 135. Other Deferred Charges . 25 25 25 25 25 26 26 26 27 27 LIABILITY ACCOUNTS. I. CORPORATE CAPITAL LIABILITY ACCOUNTS. 150. Capital Stock .. 2S 151. Installments Paid on Capital Stock Subscriptions. 28 152. Stock Liability' for Conversion of Securities. 28 153. Premium on Capital Stock . 28 II. NON CORPORATE PROPRIETORSHIP ACCOUNTS. 154. Sole Proprietorship . 29 155. Partnership . 29 III. FUNDED DEBT ACCOUNTS. 156. Bonds . 29 157. Real Estate Mortgages . 29 158. Advances from Affiliated Companies for Construction, Equipment, or Additions and Betterments .. 30 159. Other Funded Debt . 30 IV. CURRENT LIABILITY ACCOUNTS. 160. Receiver’s Certificates. 30 161. Judgments . 31 162. Workmen’s Compensation ..... 31 163. Notes Payable . 31 14 Index—Balance Sheet Accounts. Account " Number. Name of Account. Page. 104. Consumers’ Deposits . 105. Accounts Payable to Affiliated Companies. 100. Other Accounts Payable. 107. Matured Funded Debt ... 168. Matured Interest on Funded Debt. 169. Matured Interest on Unfunded Debt. 170. Dividends Payable . 171 . Service Billed in Advance. 172. Other Current Liabilities . V. ACCRUED LIABILITY ACCOUNTS. 173. Unmatured Interest Accrued on Funded Debt. 174. Unmatured Interest Accrued on Unfunded Debt. 175. Taxes Accrued . 176. Other Accrued Liabilities. VI. DEFERRED CREDIT ACCOUNTS. 177. U NAM ORTIZ ED PREMIUM ON DEBT . 17S. Other Deferred Credits .. 31 31 32 32 32 32 32 32 32 33 33 33 ' O') Of) 34 VII. OPERATING RESERVE ACCOUNTS. 179. Insurance Reserve . 34 180. Injuries and Damages Reserve .. 35 181. Uncollectible Consumers’ Accounts Reserve . 35 182. Other Operating Reserves. 1 . 36 VIII. APPROPRIATED SURPLUS ACCOUNTS. 183. Surplus Invested jn Fixed Capital After January 1, 1919 36 184. Funded Debt Retired Through Surplus. 36 * 185. Surplus Reserved for Sinking Funds . 37 ISO. Other Surplus Reserves. 37 IX. UNAPPROPRIATED SURPLUS ACCOUNT. 187. Corporate Surplus Unappropriated 37 BALANCE SHEET ACCOUNTS. Definitions and Instructions. Balance Sheet Accounts. Balance sheet accounts are those which record the assets and liabilities of the utility and show its financial condition at any particular time. In this classification each balance sheet account is a separate general ledger account. Assets. The assets of the utility are the properties or wealth, tangible and intangible, in its possession or at its disposal. Liabilities. The liabilities of the utility are the amounts of money or money's worth which it is under legal obligation to pay, deliver, or render to others. Debt Discount and Expense. Discounts and expenses incurred by the utility upon bonds and all other evidences of indebtedness issued by it in payment for fixed capital items shall he charged to “131. Un amortized Debt Discount and Expense” account if such debt matures more than one year after the date of its issue; or to “135. Other Deferred Charges" account if it matures one year or less after the date of its issue. Such discounts and expenses shall not in any case be charged to any fixed capital account. Contingent Assets and Liabilities. Contingent assets are those assets which at the end of any accounting period have no real value but which, if certain conditions then regarded as uncertain are fulfilled, will become valuable. Contingent liabilities are those liabilities which at the end of any accounting period are neither direct nor assumed obligations of the utility but which may under certain conditions become real obligations. Such assets and liabilities shall be recorded separately and shall not be shown as a part of the regular assets and liabilities in any balance sheet which the utility submits to The Public Service Commission. They shall be shown in detail in a supplemental statement. Capital Stock. Capital stock as herein used means those issues of securities which represent permanent interests in the corporation, or interests which, if terminable, are so, except in case of dissolution, only at the option of the corporation issuing them. Capital stock may be divided into preferred stock and common stock. Preferred stock is that stock which has been given special rights as to the distribution of profits or assets, or has been given some other privilege not enjoyed by the remaining stock of the same corporation. It may be cumulative or noncumulative, participating or nonparticipating. Balance Sheet—Definitions and Instructions. Cumulative stock is dividend bearing preferred stock on which that portion of the stipulated dividend remaining unpaid at the c*lose of any year must subsequently he paid before a dividend can be paid on any other class of stock. Preferred stock for which such a dividend provision has not been made is lion- cumulative. Participating stock is stock which is entitled to participate in a share of the profits of the corporation in excess of its stipulated dividend rate. Xonpartici- prting stock is entitled to that share of the corporation’s profits only that is stipulated by its dividend rate. Common stock is that stock which shares in the distribution of the corpora¬ tion’s profits only after the dividend claims of all other classes of stock have been paid. * Debt. Debt, as herein used, includes all absolute obligations to pay money at a definite time or times, or at a time or times which can be made definite by demand or other act of the creditor. It does not include contingent obligations, such as obligations to pay rent in advance or liabilities of indorsers upon paper not yet defaulted. In this classification debt is divided into two classes, Funded Debt and Unfunded Debt. Funded Debt comprises all debt which, by the terms of its issue does not mature until more than one year after the date of such issue. Unfunded Debt comprises all debt which, by the terms of its issue matures one year or less after the date of such issue. IT TEXT EXPLANATORY OF BALANCE SHEET ACCOUNTS. ASSET ACCOUNTS. I. FIXED CAPITAL ACCOUNTS. 100. Fixed Capital Installed Prior to January 1, 1919. Charge to this account the book value, at the close of December 31, 1918, of all fixed capital owned and used by the utility in the conduct of its natural gas operations. No charge shall be made to this account for any fixed capital acquired after December 31, 1918. When any item of fixed capital carried in this account is retired from service, credit to this account the amount at which it is carried herein, charge to the appropriate sub-account of “123. Materials and Supplies’’ account any salvage recovered from it; charge to “102. Depreciation of Structures and Equipment Reserve” account the amount reserved from January 1, 1919, to provide for the loss suffered by it since that date from wear, tear, obsolescence, etc.; charge to the reserve account provided prior to January 1, 1919, the accumulated amount reserved at the close of December 31, 1918, to provide for like loss suffered by it; and charge either to “709. Amortization Unprovided for Elsewhere” or to “132. Property Abandoned” account, as The Public Service Commission may direct, the net loss sustained on it. The charge to “132. Property Abandoned” account shall be made on the basis of the money cost of such fixed capital less the amount of salvage recovered therefrom and the amount reserved for depreciation thereof. Any excess of the amount at which such retired fixed capital is carried in this account over its money cost shall be charged to “709. Amortiza¬ tion Unprovided for Elsewhere” account. This account is a controlling account of the various accounts that were combined on January 1, 1919, to make it. ]01. Fixed Capital Installed Since December 31, 191S. Charge to this account the cost of all fixed capital installed since De¬ cember 31, 1918, and used by the utility in the conduct of its natural gas operations. This account is a controlling account for accounts 200 to 272, inclusive. 102. Depreciation of Structures and Equipment Reserve. Credit to this account and charge to “472. Depreciation” account that amount which it is estimated will through regular application over the life of the structures and equipment of the various divisions of the utility’s natural gas system be sufficient to provide an adequate reserve to cover those expenses of depreciation that accrue upon such structures and equipment. In these expenses of depreciation include those ordinary losses suffered by the utility’s structures and equipment from wear and tear not covered by current repairs; those extraordinary losses sustained by such struct¬ ures and equipment from obsolescence or Inadequacy due either to age, physical change, or supersession resulting from new inventions, disco v- 2 18 Balance Sheet Accounts. cries, change in popular demand, or requirements of public authority; and those losses which result from the destruction of such structures and equipment by those extraordinary casualties to which the principles of insurance are not applicable. The amount credited to this account by the utility shall, until it is otherwise directed by The Public Service Commission, be based upon a rule determined by the utility. This rule may oe derived by a study of the utility’s history and experience over a period long enough to enable it to obtain information upon which it can establish a fair and reason¬ able basis of depreciation. On or before January 1, 1910, the utility shall file with The Public Service Commission a copy of its depreciation rule and a sworn state¬ ment of the facts, expert opinions, and estimates upon which such rule is based. If the utility amends this rule later it shall file a like sworn statement for every change that it makes before it puts such change into effect. In determining its rate of depreciation the utility shall, in the case of those structures and items of equipment that can be satisfactorily indi¬ vidualized, provide for each such structure and item of equipment an amount which will through regular accumulation ensure at the time such structure or item of equipment goes out of service a reserve therefor equal to the original money cost thereof less salvage recovered thereon. In the case of those structures and items of equipment that cannot be satis¬ factorily individualized the utility shall keep such structures and equip¬ ment in efficient operating condition through repairs and shall treat all renewals or replacements of parts thereof as repairs. When any structure or equipment of the natural gas system is retired from service, charge to this account the amount credited to it since Jan¬ uary 1, 1919, to provide for the depreciation of such retired structure or equipment; charge to the depreciation reserve account provided prior to January 1, 1919, the accumulated amount of depreciation accrued at the close of December 31, 1918, on such structure or equipment; charge to “123. Materials and Supplies” account, the value of the salvage recov¬ ered; and credit to the fixed capital account in which it is carried the original money cost of such retired structure or equipment. If the original money cost of any structure or equipment retired is in excess of the above charges, charge such excess either directly to “709. Amortiza¬ tion Unprovided for Elsewhere” account, or, with the permission of The Public Service Commission, to “132. Property Arandoned” account. If the utility cannot determine the original money cost of any structure or equipment that it retires it shall make an estimate thereof and pre¬ serve in its files all the data pertaining to such estimate. The utility is restricted in its use of the amount which it has reserved for depreciation to the application of it to the recovery of those losses, mentioned in this account, which are suffered by its structures and equip¬ ment used in the public service. Moreover the utility shall make no other charges to this account than those mentioned herein. Finally it shall not divert any portion of the amount reserved for depreciation to surplus or make any other use thereof until it has been authorized to do so by The Public Service Commission. 1 !) Balance Sheet Accounts. * < 103. Amortization ok Intangible Capital Reserve. Credit to this account and charge to “474. Amortization ok Franchises, Patent Rights and Licenses"’ and “600. Amortization of Intangible Landed Capital” accounts those amounts which, through regular appli¬ cation, will provide at the expiration of the lives of the utility’s limited franchises, patent rights and licenses, limited rights of way, and lease¬ holds. a reserve equal to their original money cost. When the original money cost of any such item of intangible capital has been completely amortized, charge to this account and credit to the account in which it is carried the amount of it. 104. Cost of Fixed Capital Purchased. Charge to this account the cash value of the consideration given for fixed capital in the form of a going or completed natural gas system or of any portion of such system purchased from others. The constituent elements of such fixed capital shall be appraised at their structural values, that is, at the estimated cost of replacement or reproduction less deterioration due to wear and tear, obsolescence and inadequacy. When The Public Service Commission has approved such purchase credit to this account the purchase price and charge to the appropriate fixed capital accounts either the appraised value or the purchase price. If the purchase price is in excess of the appraised value charge the constituent elements of the proper fixed capital accounts with the appraised values and charge the excess to “203. Other Intangible Capital” account. If the purchase price was not in excess of the appraised value charge the constituent elements of the fixed capital accounts with the purchase price distributed through such accounts on the basis of the appraised values. The utility shall so keep its records of such purchase that they will show a complete account of the contract under which such property is acquired, the consideration given therefor, the basis of determining the actual money value of such consideration if other than money, the method of appraisal, the amount charged to each fixed capital account, and the disposition of any difference between the purchase price and appraised value of such property. In connection with the purchase of property chargeable to this ac« count the utility shall procure all existing records, memoranda, and books of accounts in the possession or control of the grantor relating to the construction and improvement of such property and shall preserve such records, memoranda, and books of accounts until authorized by The Public Service Commission to destroy or otherwise dispose of them. If it is impracticable to transfer such records, memoranda, and books of accounts, the utility shall procure copies of them certified by the custodian of the originals. 105. Construction Work in Progress. Charge to this account all expenditures under estimates, work orders, or other forms of authorization for strucfures and equipment in process of construction. Such expenditures shall also include that proportion of expenses of supervision, engineering, tools, store, and other like general expenses that may be assigned to such construction work. When such work is completed, credit this account and charge to the appropriate fixed capital or other accounts the cost of the completed work. Balance Sheet Accounts. This account shall be so carried that the utility cau furnish a complete analysis of the expenditures under each estimate, work order, or other form of authorization. II. INVESTMENT ACCOUNTS. 10(5. Investment Securities. Charge to this account the cost of stocks, bonds, notes, and other evi¬ dences of indebtedness each of which does not mature until more than one year after the date of issue, held by the utility for the purpose of exercising control over other companies whether utilities or non utilities, for the income that may be derived from such securities, for securing advantages, or for any other purpose. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the purpose of holding and the cost of the following kinds of investment securities owned by it: Stocks of Affiliated Natural Gas Utilities Stocks of Other Affiliated Utilities Stocks of Affiliated Non Utilities Funded Dert of Affiliated Natural Gas Utilities Funded Debt of Other Affiliated Utilities Funded Debt of Affiliated Non Utilities Other Stocks Other Funded Debt 107. Property Used in Other Public Services. Charge to- this account the cost of land, structures, and equipment owned by the utility and used by it in rendering public services other than natural gas. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the kind and cost of property used in each other public service, such as water, electric, etc. 10S. Advances to Affiliated Companies for Construction, Equipment, or Additions and Betterments. Charge to this account the amounts of advances made by the utility to its affiliated companies, whether utilities or non utilities, to enable them to pay for construction, equipment, or additions and betterments. In order that such advances may be charged to this account it must be understood that they are not to be repaid within one year or that they are to be repaid in securities of the companies to which the advances were made. Exclude from this account and charge to “707. Gifts to Affiliated Com¬ panies” account the amounts of advances that are made to affiliated com¬ panies without expectation of reimbursement. Exclude also from this account and charge to “120. Accounts Receiv¬ able from Affiliated Companies” account the amounts of temporary ad¬ vances on current accounts to affiliated companies. 21 Balance Sheet Accounts. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amounts advanced to each affiliated company, the length of time for which each advance is made, how it is to be repaid, whether or not each affiliated company to which an advance is made is a utility or non utility and if it is a utility, the kind of public service that it renders. 109. Other Investments. Charge to this account the cost of land, structures, and equipment owned by the utility and not used in rendering public service of any kind. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the cost of each different kind of property charged to this account and the purpose for which it was acquired. III. REACQUIRED SECURITIES ACCOUNTS. 110. Reacquired Capital Stock. Charge to this account the par value of capital stock issued by the utility to bona fide holders for valuable considerations and reacquired by it under circumstances that do not permit it to treat such stock as paid or retired. Charge also to this account the par value of capital stock issued by others and assumed by the utility and later acquired by it under like circumstances. If the capital stock chargeable hereto is acquired at a cost above its par value the utility shall charge the difference between its cost price and par value to “711. Other Deductions from Surplus” account; if it is acquired at a cost below its par value it shall credit the difference to v 702. Other Additions to Surplus” account. 111. Reacquired Bonds. Charge to this account the par value of bonds issued by the utility to bona fide holders for valuable considerations and reacquired by it under circumstances that do not permit it to treat such securities as paid or retired. Charge also to this account the par value of bonds issued by others and assumed by the utility and later acquired by it under like circumstances. If the bonds chargeable hereto are acquired at a cost above their par value the utility shall charge the difference between their cost price and par value to “711. Other Deductions from Surplus” account; if they are acquired at a cost below their par value it shall credit the difference to “702. Other Additions to Surplus” account. IV. FUND ACCOUNTS. 112. Sinking Fund Assets. Charge to this account the amount of cash, the cost of securities of other companies, the par value of securities issued or assumed by the utility, and all other assets, which are in possession of the treasurer, trustee or other fiscal agent of the utility in charge of sinking funds provided by the utility for the purpose of redeeming its funded debt issued 09 Balance Sheet Accounts. subject to sinking fund requirements. Among the above assets shall be included amounts deposited with such treasurer or other agent of the utility on account of the sale of mortgaged property, the proceeds of which are required to be held for the redemption of such funded debt. If the securities issued by the utility, or those assumed by it, are pur¬ chased out of sinking funds at a cost above or below par value, the differ¬ ence between the cost and the par value of such securities shall be charged to “711. Other Deductions from Surplus” or credited to “702. Other Additions to Surplus” account. The records supporting the entries to this account shall be so kept that the utility can furnish full information as to each sinking fund set aside for each class of funded debt. 113. Insurance and Other Reserve Fund Assets. Charge to this account the amount of cash, the cost of securities of other companies, the par value of securities issued or assumed by the utility, and all other assets in possession of the treasurer, trustee, or other agent of the utility,-which have been specifically set aside or invested by the utility for the purpose of providing for insurance, pension, workmen's compensation and other funds. Exclude from this account special deposit and sinking fund assets. If securities issued by the utility, or those assumed by it, are purchased out of the above funds at a cost above or below par value, the difference between the cost and par value of such securities shall be charged to “711. Other Deductions from Surplus” account or credited to “702. Other Additions to Surplus” account. The records supporting the entries to this account shall be so kept that the utility can furnish full information as to each fund carried herein. V. SPECIAL DEPOSIT ACCOUNTS. 114. Interest Special Deposits. Charge to this account all moneys and bank credits specially deposited with fiscal or other agents of the utility, for the payment of interest. When such interest is paid from these deposits, credit to this account and charge to either “168. Matured Interest on Funded Debt” or “160. Matured Interest on Unfunded Debt” account the amount of it. 115. Dividend Special Deposits. Charge to this account all moneys and bank credits specially deposited with fiscal, or other agents of the utility, for the payment of dividends declared by the utility. When such dividends are paid from these deposits credit to this account and charge to “170. Dividends Payable” account the amount of them. 16. Other Special Deposits. Charge to this account all moneys and bafik credits deposited with fiscal, or other agents of the utility, for special purposes other than the payment of interest and dividends. 2B Balance Sheet Accounts. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and purpose of each deposit. Wihen such purposes are satisfied credit to this'account the amount set aside to provide such satisfaction. VI. CURRENT ASSET ACCOUNTS. 117. Cash. Charge to this account all money coming into the possession of the utility and in which the utility has the beneficial interest. Such money includes coin of the United States, United States treasury notes, gold and silver certificates, greenbacks, bank bills payable to bearer, all bank credits, checks and drafts receivable, subject to satisfaction or transfer upon demand whether payable to bearer or to order. Credit to this account all cash disbursements of the utility. US. Notes Receivable. Charge to this account the cost of all negotiable paper in the form of notes receivable or other similar evidences of money receivable on demand or within a time not exceeding one year. Such notes receivable shall include demand notes, drafts, etc., issued by others than banks, and time notes, drafts, etc., by whomsoever issued. Exclude from this account and charge to “106. Investment Securities” account, the cost of notes which do not mature until more than one year after the date of issue. When loans to affiliated companies for construction purposes are evi¬ denced by demand or short term notes intended later to be exchanged for other securities charge the amount of such loans to “108. Advances to Affiliated Companies for Construction, Equipment or Additions and Betterments” account. 119. Accounts Receivable from Consumers. Charge to this account the amounts due from consumers for natural gas sold to them. This account is a controlling account of the various accounts in the consumers’ ledger. The data supporting the sale of natural gas to consumers shall be so kept that the utility can furnish information as to the amount due from sales of natural gas to each class of consumers, the quantity of natural gas sold during each accounting period to each consumer in each class, the rate charged him, and, in case natural gas is sold him at different rates, the quantity sold him at each rate. When the amount due from any consumer proves to be uncollectible, credit it to this account and charge it either to “449. Uncollectible Con¬ sumers’ Accounts” account, if it was charged to this account during the current year, or to “712. Uncollectible Consumers’ Accounts—Old Year” account, if it was charged to this account prior to the current year. If the utility has provided a reserve for uncollectible accounts, charge it to “181. Uncollectible Consumers' Accounts Reserve” account. Balance Sheet Accounts. 120. Accounts Receivable from Affiliated Companies. Charge to this account the amounts due the utility from affiliated com¬ panies whether utilities or non utilities, on all current transactions other than sales of natural gas. Exclude from this account amounts due from affiliated companies that are chargeable to “108. Advances to Affiliated Companies for Construc¬ tion, Equipment, or Additions and Betterments” account. 121. Other Accounts Receivable. Charge to this account all amounts owed to the utility upon accounts with solvent concerns or individuals, other than affiliated companies and consumers, and all accounts and claims, except notes receivable, upon which responsibility is acknowledged by solvent concerns or individuals, or which are sufficiently secured to be considered good; and amounts of all judgments against solvent concerns or individuals where the judg¬ ments are not appealable or suspended through appeal. Exclude from this account and charge to “117. Cash” or other appro¬ priate account, cash deposited with banks or trust companies. 122. Matured Interest and Rents Receivable. Charge, ;at the date of maturity, to this account and credit to “125. Unmatured Interest and Rents Receivable” account the amounts of interest matured upon bonds, notes receivable or other commercial paper held by or for the benefit of the utility and upon all interest bearing accounts due it; also the amounts of rents matured upon property leased by the utility to others. When such interest or rent is received, credit to this account and charge to “117. Cash” or other appropriate account the amount of it. 123. Materials and Supplies. Charge to this account the cost, including transportation and other incidental expenditures, of all materials and supplies purchased which are carried in stock pending their use for construction, operation or resale. Exclude from this account such materials and supplies as are directly chargeable to fixed capital or operating expense accounts. Inventories of materials and supplies on hand shall be taken at least annually, and any shortages or overages disclosed by such inventories shall be credited or debited to this account and debited or credited to “455. Inventory Adjustments” account, in case they cannot be assigned to specific accounts. Where such materials and supplies have been con¬ sumed in construction, a suitable proportion of such shortages or overages may be debited or credited to “272. Other Expenditures During Con¬ struction” account. 124. Other Current Assets. Charge to this account the cost of all current assets of the utility which are not provided for in any of the preceding current asset accounts. Balance Sheet Accounts. VII. ACCRUED ASSET ACCOUNTS. 125. Unmatured Interest and Rents Receivable. Charge to this account and credit to the appropriate revenue accounts the amounts of interest accrued during each accounting period upon bonds, notes receivable or other commercial paper held by or for the benefit of the utility, and upon all interest bearing accounts due it; also the amounts of rents accrued during each accounting period upon prop¬ erty leased by the utility to others. When such interest or rent matures credit to this account and charge to “122. Matured Interest and Rents Receivable” account the amount of it. VIII. PREPAID ACCOUNTS. 120. Prepaid Insurance. Charge to this account all premiums paid on insurance policies in ad¬ vance of their accrual. As such premiums accrue credit to this account and charge to “452. Other Insurance” account the amount which has accrued. 127. Prepaid Interest. Charge to this account all interest on the funded or unfunded debt of the utility paid in advance of its accrual. As such interest accrues credit to this account and charge to the appropriate accrued interest account the amount of it. 12S. Prepaid Taxes. Charge to this account all taxes paid in advance of their accrual. As such taxes accrue, credit to this account and charge to “175. Taxes Ac¬ crued” account the amount of them. 120. Other Prepaid Accounts. Charge to this account all amounts paid by the utility in advance and not provided for in any of the preceding prepaid accounts. IX. DEFERRED CHARGE ACCOUNTS. 130. Discount on Capital Stock. Charge to this account the amount of discount on each, class of capital stock issued by the utility. By discount is meant the excess of the par value of any class of capital stock over the actual cash value of the consideration received for it. The discount charged to this account for any class of stock shall not be cleared from this account until it is offset either by premiums received on the same class of stock, or by assessments levied on the holders of the stock on which it was incurred, or until such stock is retired. Discount on capital stock shall not in any case be charged to any “Fixed Capital Account” or to any “Income Account.” This account is intended for natural gas utilities only that are per¬ mitted under the terms of their charters to issue capital stock for a consideration less than par value. B lance Sheet Accounts. 131. Unamortized Debt Discount and Expense. Charge to this "account all discounts and necessary expenses incurred in the issue by the utility of bonds and other evidences of indebtedness which mature more than one year from the date of their issue. By discount is meant the excess of the par value of such evidences of indebtedness, plus the interest accrued thereon at the time of their issue, over the actual cash value of the consideration received from them. Necessary expenses incurred in the issue of such evidences of indebted¬ ness shall include fees for drafting mortgages and trust deeds, fees and taxes for recording mortgages and trust deeds, fees to trustees provided in mortgages and trust deeds, fees to underwriters and brokers for mar¬ keting such evidences of indebtedness, and other expenses of like char¬ acter; the cost of engraving and printing bonds, certificates of indebted¬ ness, and other commercial paper. Discount ,on bonds and other evidences of indebtedness issued by others, and later assumed by the utility, shall be included in this account. At or before the close of each fiscal period, credit to this account and charge to “G08. Amortization of Debt Discount and Expense” account a proportion of such discount and expense based upon the life of such evidences of indebtedness to date of maturity. Such discount and expense may, if desired, be amortized more rapidly through charges of all or any part of it, either at the time of issue or later, to ”711. Other Deductions from Surplus” account. 132. Property Abandoned. Charge to this account the money cost, estimated if not known, less the salvage and the accumulated amount reserved for the depreciation thereof of any important piece of property, other than land, which the utility itself abandons for the purpose of replacing it with more efficient property, or which, on account of public necessity or the requirement of lawful authority it is compelled to abandon before such property has attained its normal life of service. Before making any entries to this account the utility shall obtain the approval of The Public Service Commission. The loss on abandoned property registered in this account shall be amortized over a period of years by charges either to ”473. Extraordinary Depreciation” or ”709 Amortization Unprovided for Elsewhere” account as The Public Service Commission may direct. 133. Extraordinary Casualties. Charge to this account extraordinary losses, such as unforseen damages to property, that cannot by any reasonable plan be anticipated. Those casualties which occur with such frequency, that the principles of ordinary insurance are applicable thereto, shall be provided for either through an insurance reserve maintained by the utility itself, or by insurance with others. Before making any entries to this account the utility shall obtain the approval of The Public Service Commission. Balance Sheet Accounts. The extraordinary losses registered in this account shall be amortized over a period of years by charges either to “473. Extraordinary Depre¬ ciation” or to “700. Amortization Unprovided for Elsewhere” account as The Public Service Commission may direct. 134. Preliminary Survey and Investigation Charges. Charge to this account, until their final disposition is definitely deter¬ mined, all expenditures for preliminary surveys, plans, investigations, etc., made for determining the feasibility of projects under contemplation. If any such project is later completed, credit to this account and charge to the proper fixed capital account the amount expended for such pre- * liminary work or investigations. If it is abandoned, charge such amount to “711. Other Deductions from Surplus” account. 135. Other Deferred Charges. * Charge to this account all deferred charges not provided for elsewhere which are later to be charged to income or surplus account over a period of time. The records supporting the entries to this account shall be so kept that the utility can furnish information as to each deferred charge carried herein. \ 28 Balance Sheet Accounts. LIABILITY ACCOUNTS. I. CORPORATE CAPITAL LIABILITY ACCOUNTS. 3 50. Capital Stock. Credit to this account the par value of the certificates of each class of capital stock issued and outstanding. Capital stock is issued when in conformance with Article XVI, Section 7, of the Constitution of the Commonwealth of Pennsylvania it is issued by a corporation to a bona fide holder “for money, labor done, or money or property actually received”. As long as it is in possession of a bona fide holder and is free from all control of the utility it is actually outstanding. It is nominally outstand¬ ing when after being issued it is reacquired by the utility and is held by it under conditions that do not permit it to 'retire such stock. The records supporting the entries to this account shall be so kept that they will show separately the par value of those certificates of stock that are actually and nominally outstanding. In addition they will show each class of stock issued such as Common Stock, Preferred Stock, etc., with such sub-classification as is necessary because of differences in dividend rights, voting rights, and conditions of retirement. When any class of capital stock is issued, the records supporting the entry to this account of such issue shall show complete details as to whom it is issued and the consideration, cash or otherwise, for which it is issued. Exclude from this account and credit to “153. Premium on Capital Stock” account all premiums realized on capital stock. 151. Installments Paid on Capital Stock Subscriptions. Credit to this account the amounts paid in installments to the utility by subscribers to its capital stock. When each subscriber has fully paid for his subscription and has received properly executed stock certificates from the utility in acknowledgment of the payment of ihis obligation, charge to this account and credit to “150. Capital Stock” account the par value of the stock issued to him. 152. Stock Liability for Conversion of Securities. Credit to this account the par value of capital stock which the utility has agreed to exchange for the property of other utilities under terms which require the stockholders of such utilities to surrender the securi¬ ties held by them and accept in return therefor stock of the utility. Wnen such securities have been surrendered, charge this account and credit “150. Capital Stock” account. 153. Premium on Capital Stock. Credit to this account the amount realized in excess of the par value of each class of stock which is disposed of for a consideration, the cash value of which is greater than the par value. The amount thus realized shall constitute a capital stock liability and shall not be treated either as a profit and loss or surplus item available for dividends. It shall remain in this account until the stock on which it was realized is retired. The records supporting the entries to this account shall be so kept that they will show the premium realized on each class of stock issued or assumed by the utility. 29 Balance Sheet Accounts. II. NON CORPORATE PROPRIETORSHIP ACCOUNTS. 154. Sole Proprietorship. Credit to this account all contributions made to the utility by its pro¬ prietor and, at the end of each fiscal period, the net profit, if any, realized during such period. Charge to this account all withdrawals from the utility by its proprietor and, at the end of each fiscal period, the net loss, if any. suffered during such period. 155. Partnership. Credit to the account of each partner carried hereunder the contribu¬ tions made to the utility by each partner and, at the end of each fiscal period, each partner’s portion of the net profits, if any, realized during such period. Charge to each such account the withdrawals from the utility by each partner and, at the end of each fiscal period, each partner’s portion of the net loss suffered during such period. III. FUNDED DEBT ACCOUNTS. 150. Bonds. Credit to this account the par value of bonds issued and outstanding which do not mature until more than one year after the date of their issue. Such bonds shall include those issued by the utility itself and those issued by others and later assumed by the utility. Bonds are issued when in conformance with Article XVI, Section 7, of the Constitution of the Commonwealth of Pennsylvania they are issued to bona fide holders “for money, labor clone, or money or property actually received’’. As long as they are in possession of bona fide holders andvare free from all control of the utility they are actually outstanding. They are nom¬ inally outstanding when after they have been issued they are reacquired by the utility and are held by it under conditions that do not permit it to retire them. The records supporting the entries to this account shall be so kept that they will show separately the par value of those bonds that are actually and nominally outstanding at any accounting period. In addition they will show each class of bonds such as Mortgage Bonds, Collateral Trust Bonds, Income Bonds, etc., with such sub-classification as is necessary because of differences in underlying security, rate of interest, interest date, and date of maturity. When any bonds are issued the records supporting the entries to this account of such issues shall show complete details as to when they are issued and the consideration cash or otherwise, for which they are issued. Exclude from this account discounts and premiums on bonds. Charge discounts to “181. Unamortized Debt Discount and Expense” account and credit premiums to “177. Unamortized Premium on Debt” account 157. Real Estate Mortgages. Credit to this account the amount of any debt except that evidenced by bonds which is secured by a real estate mortgage and which does not mature until more than one year after the date of the issue of such mortgage. Balance Sheet Accounts. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party to whom a real estate mortgage is issued, the purpose for which it is issued, its amount, interest rate, interest dates, and the date of maturity. 158. Advances from Affiliated Companies for Construction, Equipment, or Additions and Betterments. Credit to this account the amounts of advances received by the utility from affiliated companies, whether utilities or non utilities, to enable it to pay for construction, equipment, or additions and betterments. In order that such advances may be credited to this account, it must be understood that they are not to be repaid within one year, or that they are to be repaid in securities of the utility. Exclude from this account and credit to “183. Surplus Invested in Fixed Capital After January 1, 1919” account, fhe amounts of advances that are received by the utility from affiliated companies without expecta¬ tion of reimbursement. Exclude .also from this account and credit to “165. Accounts Payable to Affiliated Companies” account, the amounts of temporary advances on current accounts received by the utility from affiliated companies. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amounts of advances received from each affiliated company, the length of time for which each such advance is made, how it is to be repaid, whether or not each affiliated company from which an advance is received is a utility or non utility, and if it is a utility the kind of public service that it renders. 159. Other Funded Debt. Credit to this account all debt for which the utility is liable, which does not mature until more than one year after the date it was incurred, except the debt that is carried in “356. Bonds” and “157. Real Estate Mortgages” accounts and also the debt due affiliated companies, which is carried in “358. Advances from Affiliated Companies for Construction, Equipment or Additions and Betterments” account. Such debt shall include all notes payable and receiver’s certificates, etc., issued for more than one year, all permissible chattel mortgages and all other evidences of indebtedness not issued in series. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and nature of each kind of debt carried herein, to whom it is owed, when it was incurred, and when it is payable. IV. CURRENT LIABILITY ACCOUNTS. 160. Receiver’s Certificates. Credit to this account the par value of certificates of indebtedness issued upon the property of the utility which is in the possession of any receiver who is acting under the orders of a court of competent jurisdiction. • > e ) Balance Sheet Accounts. 101. Judgments. Credit to tliis account the amount of any judgment of indebtedness that is rendered by a court of competent jurisdiction against the utility or any fine or penalty, requiring the payment of money, that is assessed by such court against the utility, and from which no appeal accompanied by stay of execution has been taken within the time allowed by the law for such appeal. The entries to this account shall show the character of the action or suit, as a consequence of which such judgment is pronounced or penalty assessed, parties thereto, the court in which tried and the term thereof. 162. Workmen’s Compensation. Credit to this account and charge to “ISO. Injuries and Damages Re¬ serve” account the full amount that the utility is required under the Workmen’s Compensation Act to pay, over a period of time, to employees for injuries received by them in the service of the utility. When pay¬ ments are made to employees for such injuries, charge to this account and credit to “117. Cash” or other appropriate account the amount paid. This account shall be carried by those utilities only that have permis¬ sion from the Workmen’s Compensation Board to carry their own risks. 163. Notes Payable. Credit to this account the par value of all notes, drafts, and other evidences of indebtedness issued or assumed by the utility, and payable either on demand or within a time not exceeding one year from the date of issue. When loans from affiliated companies for construction purposes are evidenced by demand or short term notes intended later to be exchanged for other securities of the utility, exclude the amounts of such loans from this account and credit them to “158. Advances from Affiliated Com¬ panies for Construction, Equipment, or Additions and Betterments” account., 104. Consumers’ Deposits. Credit to this account, as such deposits are made, all cash deposited with the utility by consumers as security for the payment of natural gas bills. Charge to this account and credit to “117. Cash” account tne amount of each deposit refunded. At the close of each fiscal period or earlier, the utility may charge to this account and credit to the appropriate consumers’ accounts the deposits of those consumers whose accounts prove to be uncollectible. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the date and the amount of each deposit; the name and address of the consumer making the deposit; the date such deposit is refunded, and the amount of interest paid thereon. 165. Accounts Payable to Affiliated Companies. Credit to this account the amounts owed by the utility to affiliated companies, whether utilities or non utilities, on current accounts. Exclude from this account the amounts owed to affiliated companies that are applicable to “158. Advances from Affiliated Companies for Construction, Equipment, or Additions and Betterments” account. O W Balance Sheet Accounts. TOO. Other Accounts Payable. Credit to this account all amounts which the utility owes to miscella¬ neous creditors on current accounts not provided for elsewhere. Such amounts shall include salaries and wages, audited bills, vouchers, etc. 107. Matured Funded Debt. Credit, at the date of maturity, to this account and charge to the appro¬ priate account under funded debt the par value of bonds and like evidences of indebtedness and the face value of real estate mortgages and other items of funded debt which have matured. 10S. Matured Interest on Funded Debt. Credit, at the date of maturity, to this account and charge to “173. Unmatured Interest Accrued on Funded Debt” account the interest matured upon the funded indebtedness of .the utility. When the coupons or other evidences of the payment of such interest have been properly canceled and returned, charge to this account and credit to “114. Interest Special Deposits” or other appropriate account the amount of such interest. 109. Matured Interest on Unfunded Debt. Credit, at the date of maturity, to this account and charge to “174. Unmatured Interest Accrued on Unfunded Debt” account the interest matured upon any unfunded debt of the utility. When such interest is paid, charge to this account and credit to “117. Cash” or other appropriate account the amount of it. 170. Dividends Payable. Credit, when declared, to this account and charge either to “052. Net Income Appropriated for Dividends” or to “705. Surplus Appropriated for Dividends” account the amounts of dividends declared on any .issue of capital stock of the utility. When such dividends are paid, charge to this account and credit to “115. Dividend Special Deposits” or other appropriate account the amount of them. 171. Service Billed in Advance. Credit to this account and charge to “119. Accounts Receivable from Consumers” account the amounts of bills rendered for natural gas which is to be supplied in future months. At the end of each accounting period charge to this account and credit to the appropriate revenue account the amount of revenue applicable to each accounting period. 172. Other Current Liabilities. Credit to this account the amounts of all current liabilities of the utility not provided for elsewhere. Ot) Balance Sheet Accounts. V. ACCRUED LIABILITY ACCOUNTS. 173. UN MATURED INTEREST ACCRUED ON FUNDED DEBT. Credit to this account and charge to “603. Interest Accrued on Funded Debt” account the amount of interest accrued during each accounting period upon the funded indebtedness of the utility. When such interest matures, charge to this account and credit to “1G8. Matured Interest on Funded Debt” account the amount of it. When bonds or other securities are retired between interest paying dates, charge to this account the amount of the interest accrued thereon to the date of retirement. 174. Unmatured Interest Accrued on Unfunded Debt. Credit to this account and charge to “604. Interest Accrued on Un¬ funded Debt” account the amount of interest accrued during each ac¬ counting period upon the unfunded indebtedness of the utility. * When such interest matures, charge to this account and credit to “169. Matured Interest on Unfunded Debt” account the amount of it. 175. Taxes Accrued. Credit to this account and charge to “448. Taxes” and “558. Non Operating Taxes” accounts the amounts of taxes accrued during each accounting period on the operating and non operating properties of the utility. These credits shall be based upon estimates until the amounts of taxes levied for the year are definitely ascertained. Any difference between these and the estimated amounts shall be adjusted through “448. Taxes” and “558. Non Operating Taxes” accounts if such differences are ascertained during the current year, otherwise through either “702. Other Additions to Surplus” or “711. Other Deductions from Surplus” account. When taxes are paid charge the amounts of such payments to this account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the different kinds of taxes involved herein. 176. Other Accrued Liabilities. Credit to this account the amounts of all other liabilities that accrue during each accounting period and that are not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish full information as to the different accruals involved herein. VI. DEFERRED CREDIT ACCOUNTS. 177. Unamortized Premium on Debt. Credit to this account all premiums received by the utility from the issue of bonds and other evidences of indebtedness which do not mature until more than one year after the date of their issue. By premium is meant the excess of the actual cash value of the con¬ sideration received for such bonds and other evidences of indebtedness over the sum of the par value thereof and the interest accrued thereon at the time of their issue. 34 Balance Sheet Accounts. Premiums on bonds and other evidences of indebtedness issued by others, and later assumed by the utility, shall be included in this account. At or before the close of each fiscal period charge to this account and credit to “Gil. Amortization of Premium on Debt” account a portion of the premium applicable to each period based upon the life of such bonds or other evidences of indebtedness to the date of maturity. At its option the utility may delay making any charges to this account until the date of maturity of such debt or, if it is retired before maturity, until the date of retirement. In either case the utility shall charge to this account the entire amount of the premium received and shall credit to “Oil. Amortization of Premium on Debt” account that portion of the premium which is applicable to the current year and to “702. Other Additions to Surplus” account the balance of such premium. ITS. Other Deferred Credits. Credit to this account all deferred items not provided for elsewhere which are later to be credited to income or surplus account over a pefiod of time. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature of each deferred credit item carried herein. VII. OPERATING RESERVE ACCOUNTS. 171). Insurance Reserve. Credit to this account and charge to “452. Other Insurance” account the amounts reserved by the utility to provide for losses to its property not insured by others. When any property thus insured is destroyed credit the account in which it is carried with the original money cost of it. If it is an item of fixed capital charge “102. Depreciation of Structures and Equipment Reserve” account with the amount of depreciation accrued on it; charge the appropriate sub-account of “123. Materials and Supplies” account with the value of the salvage recovered; charge this account with the amount reserved for the insurance of such property; and charge any excess of the original money cost of such fixed capital over the sum of the above charges either to *'709. Amortization Unprovided for Else¬ where” account or, with the approval of The Public Service Commission, to “133. Extraordinary Casualties” account. If the property destroyed is materials and supplies charge the original money cost of it less salvage to this account and charge to the appropriate sub-account under “123. Materials and Supplies” account the value of the salvage recovered. If any property insured herein is damaged and is reparable, charge the cost of repairing it to this account. The utility shall file with The Public Service Commission information as to the basis upon which credits to this account are made. It shall so keep the records supporting the entries to this account that it can furnish full information as to the nature and amount of each charge to this account. Balance Sheet Accounts. The utility is restricted in its use of the amount reserved herein to the recovery of insurance losses. Moreover it shall not divert any portion of the amount reserved to surplus or make any other use thereof until it has been authorized to do so by The Public Service Commission. The keeping of this account is optional with the utility. 150. Injuries and Damages Reserve. Credit to this account and charge to “451. Injuries and Damages” account the amounts reserved by the utility to provide for injuries to employees and others and for damages to property not owned by it. When liability for any injury or damage is admitted by the utility, either voluntarily or because of a decision of a court or other lawful authority such as the Workmen’s Compensation Board, charge to this account and credit to “117. Cash” or other appropriate account the amount awarded if a cash settlement is made. If such liability is to be discharged over a period of time, credit the amount of it to “162. Work¬ men’s Compensation” account, in case of injuries to employees, or io “166. Other Accounts Payadle” account in case of other injuries or damages. The utility shall file with The Public Service Commission information as to the basis upon which credits to this account are made. It shall so keep the records supporting the entries to this account that it can furnish full information as to the nature and amount of each charge to this account. The utility is restricted in its use of the amount reserved herein to the payment of all expenses caused by injuries to persons and damages to property. Moreover it shall not divert any portion of the amount reserved i to surplus or make any other use thereof until it has been authorized to do so by The Public Service Commission. The keeping of this account is optional with the utility. 151. Uncollectible Consumers’ Accounts Reserve. Credit to this account and charge to “440. Uncollectible Consumers’ Accounts” account the amount reserved by the utility to provide for all accounts due from consumers which prove uncollectible because of the removal of the consumers beyond the jurisdiction of the State, the opera¬ tion of the statute of limitations, discharge -in bankruptcy, or for any other gooci and sufficient reason. When any such account becomes uncollectible, charge to this account and credit to the appropriate sub-account under “119. Accounts Receiv¬ able from Consumers” account the amount of it. The utility shall file with The Public Service Commission information as to the basis upon which credits to this account are made. It shall so keep the records supporting the entries to this account that it can furnish full information as to the name of each debtor whose debt is charged to this account, the date the debt was incurred, and when it was charged to this account. The utility is restricted in its use of the amount reserved herein to the application of it to its consumers’ accounts that are considered uncol¬ lectible. Moreover it shall not divert any portion of the amount reserved to surplus or make any other use thereof until it has been authorized to do so by The Puolic Service Commission. The keeping of this account is optional with the utility. Balance Sheet Accounts. 182. Other Operating Reserves. Credit to this account and charge to the appropriate operating expense account all amounts reserved by the utility that are properly chargeable to its operating expenses and which are not provided for in any of the preceding reserve accounts. / The utility shall file with The Public Service Commission information as to the nature and purpose of each reserve carried herein and as to the basis upon which the credits to this account are made. It shall so keep the records supporting the entries to this account that it can furnish full information as to the nature and amount of each charge to this account. The utility is restricted in its use of the amount reserved herein to the specific purpose for which it has provided each reserve. Moreover it shall not divert any portion of the amount reserved to surplus or make any other use thereof until it has been authorized to do so by The Public Service Commission. The keeping of this account is optional with the utility. VIII. APPROPRIATED SURPLUS ACCOUNTS. 183. Surplus Invested in Fixed Capital After January 1, 1019. Credit to this account and charge to either “653. Net Income Appro¬ priated for Investment in Fined Capital” or “706. Surplus Appro¬ priated for Investment in Fixed Capital” account those amounts that are definitely set aside from income or surplus after January 1, 1919, and actually expended for the acquisition of land and completed structures and equipment, or for the construction of new structures and the pur¬ chase of new equipment or for additions to land, or for additions and betterments to structures and equipment. Credit also to this account the amounts set aside from either income or surplus to discharge the prin¬ cipal of any obligations which are outstanding on such land, structures, and equipment at the time that they are acquired. When any gift in aid of construction is made to the utility by an affili¬ ated company or by others, credit the amount of it to this account. Exclude from this account temporary appropriations for the acquisition of property which is later to be paid for by the issue of securities, and appropriations for payments of obligations which are to be replaced b>* the issue of other securities. The records supporting the entries to this account shall be so kept that the utility can furnish complete information as to the specific items of fixed capital acquired or constructed through appropriations from income or surplus, the particular fixed capital accounts to which such items are charged; and the actual money cost of them. 184. Funded Debt Retired Through Surplus. Credit at the date of retirement to this account and charge to “185. Surplus Reserved for Sinking Funds” account the amounts set aside from the income or surplus of the utility and expended by it in the dis¬ charge of the principal of any funded debt issued or assumed by the utility. Balance Sheet Accounts. I 1 -.'*. Surplus Reserved for Sinking Funds. Credit to this account and charge either to “050. Net Income Appro¬ priated for Sinking Funds” or “703. Surplus Appropriated for Sinking Funds” account those amounts that are definitely set aside from income or surplus and invested or placed in the care of trustees or other fiscal agents of the utility for the purpose of providing funds for the redemp¬ tion of funded debt obligations that have been issued subject to sinking fund requirements. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount reserved for the sinking fund provided for each class of funded debt and the basis upon which credits to each such fund are made. ISO. Other Surplus Reserves. Credit to this account and charge to either “051. Net Income Appro¬ priated for Other Reserve Funds” or “7C)4. Surplus Appropriated for Other Reserve Funds" account those amounts that are set aside from the income or surplus of the utility and held in reserve for purposes not pro¬ vided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and purpose of each reserve carried herein. IX*. UNAPPROPRIATED SURPLUS ACCOUNT. 187. Corporate Surplus Unappropriated. At the close of each fiscal period the utility, if corporate in form, shall transfer to this account from “625. Profit and Loss—Current Year” account the net income or loss of the unappropriated portion of the net income for that period. It shall also transfer hereto the balances of all those accounts listed under “Surplus Debit and Credit Accounts”. The result obtained by assembling in this account all of the credit and debit balances thus transferred is the unappropriated surplus or the deficit of the utility. 38 INDEX TO FIXED CAPITAL ACCOUNTS INSTALLED SINCE DECEMBER 31, 1918. PRESCRIBED FOR ALL NATURAL GAS UTILITIES. Account Number. Name of Account. Pa^e. I. UNDISTRIBUTED INTANGIBLE FIXED CAPITAL ACCOUNTS. 200. Organization . 44 201. Franchises . 44 202. Patent Rights and Licenses . 44 203. Other Intangible Capital . 45 II. PRODUCTION SYSTEM PROPERTY ACCOUNTS. 204 . Land . 205. Leaseholds . 206. Rights of Way . 207. Natural Gas Rights . 20S. Gas Well Structures . 209. Field Measuring Station Structures . . 210. Other Production System Structures . 211. Gas Well Construction . 212. Gas Well Equipment. 213. Field Line Construction . 214. Field Line Equipment . 215. Field Measuring Station Equipment .. 216. Portable Engines, Pumps and Boilers . 217. Rigs, Drilling and Cleaning* Equipment 218. Other Production System Equipment . . 45 45 45 15 46 46 46 46 46 46 47 47 47 47 47 III. TRANSMISSION SYSTEM PROPERTY ACCOUNTS. 219. Land . 48 220. Leaseholds . 48 221. Rights of Way . 48 222. Compressing Station Structures . 48 * 223. Transmission System Measuring Station Structures. 4S 224. Other Transmission System Structures. 48 225. Compressing Station Equipment . 48 226. Transmission System Measuring Station Equipment. 4S 227. Transmission Line Construction . 49 22S. Transmission Line Equipment . 49 229. Other Transmission System Equipment . 49 Account Number. Pa.ue. 39 Index—Fixed Capital Accounts. Name of Account. IV. DISTRIBUTION SYSTEM PROPERTY ACCOUNTS. 230. Land .. 231 . Leaseholds . 232. Rights of Way ... 233. District Regulator Structures. 234. Other Distribution System Structures 235. Gas Receivers and District Regulators 238. Distribution Line Construction. 237. Distribution Line Equipment . 238. Service Line Construction :. 239. Service Line Equipment . 240. Meters . 241. Meter Installations . 242. House Regulators . 243. House Regulator Installations . 244. Other Distribution System Equipment 49 50 50 50 50 50 50 50 51 51 51 51 51 52 V. UTILIZATION SYSTEM PROPERTY ACCOUNTS. 245. Commercial Lighting System . 52 24G. Municipal Street Lighting System . 52 247. Private Street Lighting System . 52 24S. Other Utilization Equipment . 52 VI. GENERAL PROPERTY ACCOUNTS. 249. General Office Land. 250. Other General Land . 251. Leaseholds . 252. General Office Structures.. 253. Other General Structures . 254. General Office Equipment... 255. General Store Equipment. 258. General Shop Equipment . 257. General Stable Equipment. 258. General Garage Equipment . 259. General Laboratory Equipment . 280 . General Telephone and Telegraph System . 281 . General Tools and Implements. 282. Other General Equipment. 54 54 54 54 54 54 DO Do 40 Index—Fixed Capital Accounts. Account Number. Name of Account. Page. VII. UNDISTRIBUTED CONSTRUCTION EXPENDITURE ACCOUNTS. 203. Engineering and Superintendence During Construction.. 55 264. General Officers’ and Clerks’ Salaries During Construc¬ tion . 55 265. General Officers’ and Clerks’ Expenses During Construc¬ tion . 55 266. Office Supplies and Expenses During Construction . 55 267. Law Expenditures During Construction . 56 268. Injuries and Damages During Construction. 56 269. Insurance During Construction . 56 270. Taxes During Construction . 56 271. Interest During Construction. 57 272. Other Expenditures During Construction . 57 41 FIXED CAPITAL ACCOUNTS INSTALLED SINCE DECEMBER 31, 1918. Definitions and Instructions. Fixed Capital. The fixed capital of the utility, as herein used, means its property tangible and intangible, which is used in the production and sale of natural gas and which has an expectation of life in service of more than one year. The fixed capital accounts described in this section are those which provide for all items of fixed capital installed by the utility after December 31, 1918. . They are therefore the sub-accounts of balance sheet account “101. Fixed Capital Installed Since December 31, 1918.” Fixed capital consists of original capital, additions, betterments and replace¬ ments. Original capital is the fixed capital installed or acquired by the utility prior •> to the beginning of its regular operations. The utility shall charge the cost of every item of original capital installed on or after January 1, 1919, to the appropriate sub-account of “101. Fixed Capital Installed Since December 31, 1918” account. Additions are land, structures and equipment added to those in service at the beginning of operations, and not taking the place of any property of like purpose previously held by the utility. The cost of additions shall be charged to the appropriate sub-accounts of “101. Fixed Capital Installed Since Decem¬ ber 31, 1918” account. Betterments are physical changes in structures or equipment, the object of which is to make the structures or equipment affected more useful or of greater capacity than they were at the time of their original installation or acquisition. The utility shall charge as a betterment to the appropriate sub-account of “101. Fixed Capital Installed Since December 31, 1918” account that portion of the cost of such changes, as will, when added to the original cost of the structures or equipment bettered, give the cost of the structures or equipment in their bettered condition. Replacements are those installations of fixed capital in which one structure or unit of equipment is substituted for another which has become exhausted or inadequate in service, the substitute having substantially no greater capacity than the property replaced; also the extensions of life period of franchises, patents, and other intangible fixed capital. • * In every replacement the cost of fixed capital retired shall be credited to tiie fixed capital accounts in which it is carried and the cost of the fixed capital installed in place of fixed capital so retired shall be charged to the appropriate sub-accounts of “101. Fixed Capital Installed Since December e 31, 1918” account. Required Data in Fixed Capital Charges. Every charge made to any fixed capital account on and after January 1, 1919, shall show whether the item charged is original capital, an addition, a better¬ ment, or a replacement. If the item is an addition, or a betterment, or a replacement, the entry shall designate the thing enlarged, improved or replaced and shall cite the name and page of the book or other record in which the entry of the original cost of such thing appears. If it was acquired prior to Fixed Capital—Definitions and Instructions. January. 1, 1910, and the original cost of it is not known the utility shall make an estimate thereof and shall state this fact in the entry that concerns the addition, betterment or replacement, and shall show therein the basis of such estimate. Land. Land includes tangible land owned by the utility itself and any acquired terminal rights or interest in land owned by others, such as leaseholds, water power rights, rights of way, and like intangible land items. In this classification tangible and intangible land shall be recorded sepa¬ rately. Land shall not include any buildings or other structures. If the purchase of land includes buildings and other structures thereon, such buildings and other structures shall be appraised at their structural values, as explained in “104. Cost of Fixed Capital Purchased” account, and charged to the appropriate structures account. In order that any item of land may be classed as land used and useful in the public service, it must have an expectation of life in such service of more than one year from the date of its acquisition by the utility. Cost of Land. The cost of land includes, in addition to the purchase price, all other costs necessary to such purchase and borne by the utility, such as the cost of sur- \eys, examination and registration of title, conveyancer’s and notary’s fees, purchasing agent’s commission and fees, or, in case such agent is a regular employee of the utility, a proper proportion of his salary and expenses, taxes accrued to the date of the transfer of title, liens upon titles, like expenses necessary to secure title to or interest in land, and all expenditures not made in connection with the construction of structures, for clearing, grading and otherwise putting .such land in readiness for use in the public service. Si ructures. Structures include all buildings, other structures, and improvements on land of a permanent character; and all fixtures permanently attached thereto and made part thereof, which cannot be removed therefrom without cutting into the walls, ceilings or floors, or without in some way impairing the structures. Such fixtures include water, steam and gas pipes; electric wiring; elevators, and engines and motors specially provided for operating them; furnaces, boilers, and other apparatus specially provided for producing steam for such engines and for heating structures; electric generators specially provided for producing current for lighting structures. In addition structures include brick and concrete smokestacks, permanent foundations and settings for machinery and apparatus, fences, walks, trestles, drives, grading and other improvements on grounds used in connection with structures; and excavations, trenchings and refillings done in the construction of structures. Specially provided foundations, which are not expected to outlast the machinery or other equipment mounted thereon, shall be classed as equipment. If the purchase of structures includes any equipment, such equipment shall be appraised at structural values, as explained in “194. Cost of Fixed Capital Purchased” account and charged at such values to the appropriate equipment account. In order that any structure may be classed as a structure used and useful in the public service, it must have an expectation of life in such service of more than one year from the date of its construction or acquisition by the utility. 43 Fixed Capital—Definitions and Instructions. Cost of Structures. If structures are constructed by the utility itself, the cost of such structures consists of the actual money cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in constructing them. If the utility purchases going or completed structures from others, the cost of such structures consists of that portion of the purchase price which represents the actual cost of constructing such structures plus all necessary expenses incurred by the utility in effecting the purchase of and securing title to them. If the actual construction cost cannot be determined from the records of the vendor, the utility shall appraise such structures at their structural cost that is at the cost of replacement or reproduction less existing deterioration due tq wear and tear, obsolescence and inadequacy. If the purchase price exceeds this actual or structural cost, the utility shall charge the amount of the excess to “203. Other Intangible Capital” account. If the utility’s structures are constructed for it by a company affiliated with it, the cost of such structures consists of the actual cost of labor employed, materials and supplies consumed, and expenses incurred by the affiliated company in constructing these structures. If the price paid to its affiliated company exceeds this cost, the utility shall charge the amount of the excess to “203. Other Intangible Capital” account. Equipment. Equipment includes all tangible fixed property, other than land and struct¬ ures as herein defined, which is either attached to such land or structures by its own weight or other means, or is otherwise used in connection with such land or structures and can be readily removed therefrom without thereby losing its unity and fitness to perform the particular service, or service of like char¬ acter, for which it was acquired by the utility, or without destroying or in any way impairing the integrity of the structures with which it is connected or without otherwise rendering such land or structures unfit to perform their special utility functions. Include also in equipment specially provided founda¬ tions which are not expected to outlast the machinery or other equipment mounted thereon. In order that, any item of equipment may be classed as equipment used and useful in the public service, it must have an expectation of life in service of more than one year from the date of its acquisition by the utility. Exclude from equipment accounts hand and other portable tools which are liable to be lost or stolen. Cost of Equipment. The cost of equipment includes in addition to the actual money purchase price thereof, investigation and inspection expenses necessary to such purchase; expenses of transportation when borne by the utility; labor employed, mate¬ rials and supplies consumed, and expenses incurred by the utility in unloading and placing such equipment in readiness to operate; and like expenses incurred in excavating, trenching, refilling, repaving, and otherwise restoring to its original condition land in which equipment is located. 44 TEXT EXPLANATORY OF FIXED CAPITAL ACCOUNTS. I. UNDISTRIBUTED INTANGIBLE FIXED CAPITAL ACCOUNTS. Charge to the appropriate accounts listed under this .caption the cost of those items of intangible fixed capital, used and useful in the public service, that do not pertain especially to any one specific division of fixed capital. 200. Organization. Charge to this account fees paid to governments for the privilege of incorporation and all other expenditures (incident to the organization of the corporation, or other forms of utility, and putting It in readiness to do business. In the charges to this account include counsel fees; fees paid to pro¬ moters, either in cash or in securities at the cash value of such securities at the time of the organization of the utility, for their services in organ¬ izing the utility; the cost of preparing and distributing prospectuses, soliciting subscriptions for stock, preparing and issuing certificates of stock, procuring the required approval of The Public Service Commission; preparing and filing certificates of authorization of increase in capital stock and issuing stock thus authorized, filing and preparing certificates of amendment to articles of incorporation; any other necessary expense incurred in the organization of the utility. Exclude from this account discount on bonds and other evidences of indebtedness, and expenses incurred in negotiating loans and selling bonds or other evidences of indebtedness. 201. Franchises. Charge to this account the actual amount paid to the State, or any political subdivision thereof, for the grant to the utility of any franchise or right that is necessary for the utility in the conduct of its natural gas operations. If such franchise is acquired by assignment, the charge to this account must not exceed the amount actually paid therefor by the utility to the assignor, nor shall it exceed the amount paid to the State, or any political subdivision thereof, for such franchise. Charge any excess of the amount paid by the utility to the assignor over the amount originally paid by such assignor to the State, or any political subdivision thereof, to “203. Other Intangible Capital” account. Exclude from this account annual or more frequent payments to any government for any franchise and charge them to “175. Taxes Accrued” account or to the appropriate operating expense accounts. Exclude also from this account the amount paid for any franchise that has a life of not more than one year after the date when it is placed in service or in effect . and charge it to the appropriate operating expense account or to “129. Other Prepaid Accounts” account if paid in advance. \ 202. Patent Rights and Licenses. Charge to this account the cost of all rights and licenses, which have a life of more than one year from the date w r hen placed in service, ac¬ quired by the utility in or under valid patents granted by the United States to inventors for inventions and discoveries which are necessary or val¬ uable to the economical conduct of the natural gas operations of the utility. 45 Fixed Capital Accounts. 203. Other Intangible Capital. Charge to this account the cost of all other intangible property not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the kind of each item of intangible capital charged to this account, the principal from whom it was acquired and the agents who represented him; also the term of the life of each item, or if it is not known an estimate thereof and the facts upon which such estimate was based. II. PRODUCTION SYSTEM PROPERTY ACCOUNTS. Charge to the appropriate accounts listed under this caption the cost of land, structures, and equipment, as each of these items of property is defined in “Fixed Capital Definitions and Instructions” on pages 42 and 43 of this classification, used and useful in the public service for the production of natural gas. 204. Land. Charge to this account the cost of land owned by the utility on which are located structures and equipment used in the production of natural gas. 205. Leaseholds. Charge to this account the first cost to the utility of acquiring lease- .. holds of land, structures, or equipment used by the utility in the produc¬ tion of natural gas. Exclude from this account the cost of leaseholds which terminate in one year or less after they become effective. Exclude also rents paid periodically for rights obtained under leases. In this classification this account is classed as intangible fixed capital and as such should be amortized during the lives of the leaseholds. * 206. Rights of Way. Charge to this account the first cost of all interests in land not owned by the utility, which do not terminate until more than one year after they become effective and which are acquired by it to locate thereon pipe lines, telephone poles and lines, and like property used by the utility in its production system. In this classification this account is classed as intangible fixed capital and if the rights charged hereto are limited in life should be amortized during the lives of the rights. 207. Natural Gas Rights. Charge to this account the first cost to the utility of purchasing natural gas rights. This account is intended to provide for the cost to the utility of obtaining ownership in gas underlying land not owned or leased by the utility. It does not provide for gas rights which are leased and which are properly chargeable to “205. Leaseholds” account. In this classification this account is classed as intangible fixed capital and if the rights charged hereto are limited in life should be amortized during the lives of the rights. Fixed Capital Accounts. 208. Gas Well Structures. Charge to this account the cost of well structures owned by the utility and used by it to house pumping and other equipment necessary to keep the wells in operation. 209. Field Measuring Station Structures. Charge to this account the cost of structures owned by the utility and used by it to house meters and appurtenant appliances used in measuring natural gas before it is conveyed to the compressing or boosting stations or other points where the transmission system begins. 210. Other Production System Structures. Charge to this account the cost of structures not provided for elsew r here owned by the utility and used by it in its production .system. 211. Gas Well Construction. Charge to this account the cost of labor employed, materials consumed, and expenses incurred by the utility in drilling* casing, tubing, packing, and connecting new gas wells to field lines, and otherwise preparing them for operation. In the charges to this account include the cost of making roads to well sites; cutting and hauling timber; hauling, erecting, tearing down and removing rigs; hauling and putting in place pipes, casings, fittings, portable engines, boilers, tools and other equipment used in drilling; procuring water for use in drilling either by drilling w r ater wells, or piping water from springs or streams, or purchasing it; also the cost of gas purchased and other supplies used and expenses incurred in the con¬ struction of gas wells. 212. Gas Well Equipment. Charge to this account the cost of drive pipe, casing, tubing, packers, fittings, and other gas well equipment up to and including the well gates or stops. Charge also to this account the cost of gas engines and ap¬ pliances owned by the utility and used by it exclusively in the operation of its natural gas wells. Exclude from this account and charge to “211. Gas Well Construc¬ tion” account the cost of labor employed, materials consumed, and ex¬ penses incurred in installing gas well equipment. 213. Field Line Construction. Charge to this account the cost of labor employed, materials consumed, and expenses incurred by the utility in constructing pipe lines owned and used by it in collecting natural gas from wells and conveying it to the compressing or boosting stations, or other points where the trans¬ mission system begins. In the charges to this account include the cost of hauling, ditching, •constructing supports, conduits, etc., laying pipe, refilling, repaving, damage to crops, fences, etc.; also the cost of tools consumed, other sup¬ plies used and expenses incurred in the construction of field lines. Exclude from this account and charge to ‘‘214. Field Line Equipment” account the cost of pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the field lines. 47 Fixed Capital Accounts. 214. Field Line Equipment. Charge to this account the cost of held line equipment owned by the utility and used by it in collecting natural gas from wells and conveying it to the compressing or boosting stations or other points where the trans¬ mission system begins. ; In the charges to this account include the cost of pipe, collars, coup¬ lings, other fittings, gates, valves, and other equipment accessory to the field lines. Exclude from this account and charge to “213. Field Line Construc¬ tion” account the cost of labor employed, materials consumed, and ex¬ penses incurred in installing field line equipment. The records supporting the entries to this account shall be so kept that the* utility can furnish information as to the diameter, length, weight, material, price, and date of Installation of each field line; also the cost and date of installation of collars, couplings and other fittings. 215. Field Measuring Station Equipment. Charge to this .account the cost of* meters, gauges, and other equipment owned by the utility and used by it in measuring natural gas collected into the field lines before it is conveyed to compressing or boosting sta¬ tions or other points where the transmission system begins. 21(5. Portable Engines, Pumps and Boilers. Charge to this account the cost of portable engines, pumps, and boilers Gwned by the utility and used by it in drilling and cleaning out natural gas wells and performing other services in the production system. 217. Rigs, Drilling and Cleaning Equipment. Charge to this account the cost of rigs, drilling, and cleaning equipment owned by the utility and used by it in drilling and cleaning its own natural gas wells. In the charges to this account include the cost of rigs, drilling cables, rope sockets, swivel wrenches, bailers, and other equipment used in drilling and cleaning natural gas wells. Exclude from this account and charge to “216. Portable Engines, Pumps and Boilers” the cost of such engines, pumps and boilers owned by the utility and used by it in drilling and cleaning its own natural gas wells. 21S. Other Production System Equipment. Charge to this account the cost of equipment not provided for elsewhere owned by the utility and used by it in the production of natural gas. III. TRANSMISSION SYSTEM PROPERTY ACCOUNTS. Charge to the appropriate accounts listed under this caption the cost of land, structures, and equipment as each of these items of property is defined in “Fixed Capital Definitions and Instructions” on pages 42 and 43 of this classification used and useful in the public service for the trans¬ mission of natural gas from the compressing or boosting stations or other points where the transmission system begins to the inlet of the district regulators or other points where the distribution system begins. Fixed Capital Accounts. 219. Land. Charge to this account the cost of land owned by the utility on which are located structures and equipment used in the transmission of natural gas. 220. Leaseholds. Charge to this account the first cost to the utility of acquiring lease¬ holds of lands, structures, or equipment used by the utility in the trans¬ mission of natural gas. Exclude from this account the cost of leaseholds which terminate in one year or less after they become effective. Exclude also rents paid periodically for rights obtained under leases. In this classification this account is classed as intangible fixed'capital and as such should be amortized during the lives of the leaseholds. 221. Rights of Way. Charge to this account the first cost of all interests in land not owned by the utility, which do not terminate until more than one year after they become effective and which are acquired by it to locate thereon pipe lines used in its transmission system. In this classification this account is classed as intangible fixed capital and if the rights charged hereto are limited in.life should be amortized during the lives of the rights. 222. Co mpressing Station Structures. Charge to this account the cost of structures owned by the utility and used by it to house compressors, boosters, and appurtenant engines and equipment. 223. Transmission System Measuring Station Structures. Charge to this account the cost of structures owned by the utility and used by it to house meters and appurtenant equipment used in measuring natural gas before it is transmitted to the distribution system. 224. Other Transmission System Structures. Charge to this account the cost of structures not provided for elsewhere, that are owned by the utility and used by it in its transmission system. 225. Compressing Station Equipment. Charge to this account the cost of equipment owned by the utility and used by it in increasing the pressure of natural gas before it is transmitted to the distribution system. In the charges to this account include the cost of compressors, boosters, gas and steam engines, electric apparatus for furnishing motive power for compressors and boosters; lighting and ventilating appliances; and all other equipment used in the compressing station. 220. Transmission System Measuring Station Equipment. Charge to this account the cost of equipment owned by the utility and used by it in measuring natural gas before it is transmitted to the distri¬ bution system. In the charges to this account include the cost of meters, gauges, and other equipment used in the transmission system measuring station. 41 ) Fixed Capital Accounts. 227. Transmission Line Construction. Charge to this account, the cost of labor employed, materials consumed, and expenses incurred by the utility in constructing pipe lines owned and used by it in transmitting natural gas from the compressing or boosting stations or other’ points where the transmission system begins to the points where the distribution system begins. In the charges to this account include the cost of hauling, ditching, constructing supports, conduits, etc., laying pipe, refilling, repaving, damage to crops, fences, etc., also the cost of tools consumed, other sup¬ plies used, and expenses incurred in the construction of transmission lines. Exclude from this account and charge to “228. Transmission Line Equipment” account the cost of pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the transmission lines. 22S. Transmission Line Equipment. Charge to this account the cost of pipe line equipment owned by the utility and used by it in transmitting natural gas from the coinpressing or boosting stations or other points where the transmission system begins to the district regulators or other points where the distribution system begins. In the charges to this account include the cost of transmission line pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the transmission pipe lines. * Exclude from this account and charge to “227. Transmission Line Con¬ struction” account the cost of labor employed, materials consumed, and expenses incurred in installing transmission line equipment. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the diameter, length, weight, material, price, and date of installation of each transmission line; also the cost and date of installation of collars, couplings, and other fittings. 220. Other Transmission System Equipment. Charge to this account the cost of equipment not provided for else¬ where owned by the utility and used by it exclusively in the transmission system. IV. DISTRIBUTION SYSTEM PROPERTY ACCOUNTS. Charge to the appropriate accounts listed under this caption the cost of land, structures, and equipment as each of these items of property is defined in “Fixed Capital Definitions and Instructions” on pages 42 and 43 of this classification, used and useful in the public service for the distribution of natural gas from the district regulators or other points of distribution. 230. Land. Charge to this account the cost of land owned by the utility on which are located structures and equipment used In the distribution of natural gas. 4 50 Fixed Capital Accounts. 231. Leaseholds. Charge to this account the first cost to the utility of land, structures, and equipment used by the utility in the distribution of natural gas. Exclude from this account the cost of leaseholds which terminate in one year or less after they become effective. Exclude also rents paid periodi¬ cally for rights obtained under leases. In this classification this account is classed as intangible fixed capital and as such should be amortized during the lives of the leaseholds. 232. Rights of Way. Charge to this account the first cost of all interests in land not owned by the utility, which do not terminate until more than one year after they become effective and which are acquired by it to locate thereon pipe lines used in its distribution system. In this classification this account is classed as intangible fixed capital and if the rights charged hereto are limited in life should be amortized during the lives of the rights. 233. District Regulator Structures. Charge to this account the cost of structures owned by the utility and used by it to house district regulators, recording gauges, and appurtenant equipment. 234. Other Distribution System Structures. Charge to this account the cost of structures not provided for elsewhere owned by the utility and used by it in its distribution system. 235. Gas Receivers and District Regulators. Charge to this account the cost of equipment owned by the utility and used by it to receive natural gas from the transmission lines and to regu¬ late its pressure before it passes into the distribution lines. In the charges to this account include the cost of gas receivers, district regulators, recording gauges, safety tanks, and appurtenant equipment. 23(3. Distribution Line Construction. Charge to this account the cost of labor employed, materials consumed, and expenses incurred by the utility in constructing pipe lines owned and used by it in distributing natural gas from the district regulators or other points where the distribution system begins to the consumers service lines. In the charges to this account include the cost of hauling, ditching, constructing supports, conduits, etc., laying pipe, refilling, repaving, also the cost of tools consumed, other supplies used, and expenses incurred in the construction of distribution lines. Exclude from this account and charge to “237. Distribution Line Equip¬ ment” account the cost of pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the distribution lines. 237. Distribution Line Equipment. Charge to this account the cost of pipe line equipment owned by the utility and used by it in distributing natural gas from the district regu¬ lators or other points wthere the distribution system begins to the con¬ sumers service lines. 51 Fixed Capital Accounts. In the charges to this account include the cost of distribution line pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the distribution lines. Exclude from this account and charge to “23G. Distribution Line Con¬ struction” account the cost of labor employed, materials consumed, and expenses incurred in installing distribution lines. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the diameter, length, weight, material, price and date of installation of each distribution line; also the cost and date of installation of collars, couplings, and other fittings. 238. Service Line Construction. Charge to this account the cost of labor employed, materials consumed, and expenses incurred by the utility in constructing pipe lines owned and used by it for conveying natural gas from the distribution lines to the consumers’ premises. In the charges to this account include the cost of teaming, ditching, refilling, repaving, also the cost of tools consumed, other supplies used, and expenses incurred in the construction of service lines. Exclude from this account and charge to “239. Service Line Equip¬ ment” account the cost of pipe, fittings, curb boxes, and other equipment accessory to the service lines. 239. Service Line Equipment. Charge to this account the cost of pipe line equipment owned by the utility and used by it to convey natural gas from the distribution lines to the consumer’s premises. In the charges to this account include the cost of pipe, fittings, curb boxes, and other equipment accessory to the service lines. Exclude from this account and charge to “238. Service Line Construc¬ tion” account the cost of labor employed, materials consumed, and ex¬ penses incurred in installing service lines. The. records supporting the entries to this account shall be so kept that the utility can furnish information as to the diameter, length, weight, material, price, and date of installation of each service line. 240. Meters. Charge to this account the cost of meters owned by the utility and used by it to determine the quantity of natural gas sold to its consumers. Charge also to this account the cost of the original testing of meters before their first installation. 241. Meter Installations. Charge to this account the cost of labor employed, materials, used, and expenses incurred by the utility in connection with the original installa¬ tion of meters. Exclude from this account the cost of replacing meters or removing them to and installing them in other locations. 242. House Regulators. Charge to this account the cost of regulators owned by the utility and used by it to regulate the pressure of natural gas, before the gas enters the consumers’ meters. Charge also to this account the cost of the original testing of regulators before their first installation. 52 Fixed Capital Accounts. 243. House Regulator Installations. Charge to this account the cost of labor employed, materials used, and expenses incurred by the utility in connection with the original installa¬ tion of house regulators. Exclude from this account the cost of replacing house regulators or removing them to and installing them in other locations. 244. Other Distribution System Equipment. Charge to this account the cost of equipment not provided for elsewhere owned by the utility and used by it in its distribution system. V. % V. UTILIZATION SYSTEM PROPERTY ACCOUNTS. Charge to the appropriate accounts listed under this caption the cost of equipment, as this item of property is defined in “Fixed Capital Defi¬ nitions and Instructions” on page 43 of this classification, owned by the utility and used by others in consuming natural gas. 245. Commercial Lighting System. Charge to this account the cost of lighting equipment, except that used for lighting municipal and private streets, owned and operated by the utility and used by others in consuming natural gas sold to them by the utility for lighting purposes. In the charges to this account include the cost of lamps, lamp fixtures, and other equipment used in connection with the commercial lighting system. 246. Municipal Street Lighting System. Charge to this account the cost of street lighting equipment owned, operated, and maintained by the utility and used by it for lighting public streets— In the charges to this account include the cost of lamps, lamp fixtures, posts, and other equipment used in connection with the municipal street lighting system. 247. Private Street Lighting System. Charge to this account the cost of street lighting equipment owned, operated, and maintained by the utility and used by it for lighting private streets. In the charges to this account include the cost of lamps, lamp fixtures, posts, and other equipment used in connection with the private street lighting system. 24S. Other Utilization Equipment. Charge to this account the cost of all other equipment owned and main¬ tained by the utility and installed by it on the premises of consumers for the purpose of supplying them with natural gas. Charge also to this account the cost of the original installation of each item of' equipment carried herein. In the charges to this account include the cost of gas engines and ap¬ pliances and like equipment. Exclude from this account the cost of replacing such items of equip¬ ment and removing them to and installing them in other locations. Fixed Capital Accounts. VI. GENERAL PROPERTY ACCOUNTS. Charge to the appropriate accounts listed under this caption the cost of land, structures, - and equipment, as each of these items of property is defined in “Fixed Capital Definitions and Instructions” on pages 42 and 43 of this classification, used and useful in the public service and employed by the utility in its natural gas operations but not used exclus¬ ively in any one functional operation. 249. General Office Land. Charge to this account the cost of land owned by the utility on which are located its general office structures and equipment. 250. Other General Land. Charge to this account the cost of general land, except that provided for in “249. General Office Land” account, owned by the utility and used by it in the conduct of its natural gas operations. In the charges to this account include the cost of land on which are located structures and equipment used for shop, store, stable, garage, laboratory, and other general purposes. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the separate cost of land used for each such general purpose. 251. Leaseholds. Charge to this account the first cost to the utility of acquiring lease¬ holds of land, structures, or equipment used by the utility for general purposes in the conduct of its natural gas operations. Exclude from this account the cost of leaseholds which terminate in one year or less after they become effective. 'Exclude also rents paid periodically for rights obtained under leases. In this classification this account is classed as intangible fixed capital and.as such should be amortized during the lives of the leaseholds. 252. General Office Structures. Charge to this account the cost of buildings owned by the utility and used by it for general office purposes. 253. Other General Structures. Charge to this account the cost of general structures, except those pro¬ vided for in “252. General Office Structures” account, owned by the utility and used by it in the conduct of its natural gas operations. In the charges to this account include the cost of structures used for shop, store, stable, garage, laboratory, and other general purposes. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the separate cost of struct¬ ures used for each such general purpose. 254. General Office Equipment. Charge to this account the cost of equipment owned by the utility and used by it in its general offices. 54 Fixed Capital Accounts. In the charges to this account include the cost of desks, chairs, tables, filing cases, book cases and racks, movable safes, typewriters, adding ami calculating machines, addressographs, drafting tables and instruments, engineering instruments, and like appliances used in connection with the general office. 255. General Store Equipment. Charge to this account the cost of equipment owned by the utility and used by it in its general stores. In the charges to this account include the cost of movable counters and shelves, carts, barrows, trucks, derricks, cranes, hoists, other loading and unloading machinery, and all other apparatus and appliances used in storing and handling materials and supplies. 250. General Shop Equipment. Charge to this account the cost of equipment owned by the utility and used by it in its general shops. In the charges to this account include the cost of furnaces, boilers, gas producers, engines, electric generators, and other power apparatus specially provided for operating general shop machinery; also machine tools, cranes, hoists, shafting, belting, smithing equipment other than that used for shoeing horses and repairing vehicles, and all other appli¬ ances used in the general shops. Exclude from this account hand and other small tools which are liable to be lost or stolen. 257. General Stable Equipment. Charge to this account the cost of equipment owned by the utility and used by it in its general stables. In the charges to this account include the cost of horses, harness, drays and wagons, equipment for"shoeing horses and repairing harness, and vehicles, and all other appliances used in the general stables. 258. General Garage Equipment. Charge to this account the cost of equipment owned by the utility and used by lit in its general garages. In the charges to this account include the cost of automobiles, bicycles, motorcycles and accessories, and all other appliances used in the general garages. 259. General Laboratory Equipment. Charge to this account the cost of equipment owned by the utility and used by it in its general laboratory. In the charges to this account include the cost of testing apparatus and laboratory appliances not provided for elsewhere. Exclude from this account the cost of testing instruments permanently assigned to any specific department. 200. General Telephone and Telegraph System. Charge to this account the cost of telegraph and telephone equipment owned by the utility and used by it in the operation of its natural gas system. Fixed Capital Accounts. In the charges to this account include the cost of poles, cables, wires, booths, instruments, and all other equipment assigned to the telephone and telegraph system. 2<»1. General Tools and Implements. Charge to this account the cost of tools other than hand tools and im¬ plements, not provided for elsewhere, owned by the utility and used by it in the conduct of its natural gas operations. 2G2. Other General Equipment. Charge to this account the cost of all general equipment, not provided for elsewhere, owned by the utility and used by it in the conduct of its natural gas operations. VII. UNDISTRIBUTED CONSTRUCTION EXPENDI¬ TURE ACCOUNTS. Charge to the appropriate accounts listed under this caption the amount of those expenses therein described which are incurred by the utility during the period of the construction of its natural gas system, or any part thereof, and which cannot be satisfactorily assigned by it to the specific fixed capital accounts in which it is required to record the items of fixed capital acquired by it after December 31, 1918. 263. Engineering and Superintendence During Construction. Charge to this account expenditures for services of engineers, drafts¬ men and superintendents employed on construction work and work pre¬ liminary thereto. 264. General Officers’ and Clerks’ Salaries During Construction. Charge to this account the salaries of executive and general officers, and general office clerks, that accrue during the period of construction. If the utility is already operating a natural gas system, charge to this account only that proportion of such salaries, that is based upon the time which such officers and clerks actually spend in new construction. 265. General Officers’ and Clerks’ Expenses During Construction. Charge to this account the traveling and all other necessary expenses incurred for the benefit of the utility by its general officers and general office clerks during the period of construction. If the utility is already operating a natural gas system, charge to this account only those expenses that are incurred while such officers and clerks are actually engaged on construction work. 266. Office Supplies, and Expenses During Construction. Charge to this account the cost of all office supplies used and expenses incurred by the utility during the period of the construction of its natural gas system or any part thereof. In the charges to this account include the cost of stationery, printing, blanks, record books, etc,, used in connection with construction work and such expenses as messenger and janitor services, rent, water, light, heat, postage, telephone, telegrams, exchange on remittances and like expenses incurred in construction work. Fixed Capital Accounts. 207. Law Expenditures During Construction. Charge to this account all law expenditures incurred during the period of construction. In the charges to this account include such items as pay and expenses of counsel, solicitors and attorneys; their clerks and attendants, and the expenses of their offices, if employed exclusively by the utility; cost of printing briefs, legal forms, testimony, reports, etc.; payments to arbi¬ trators upon disputed questions; payments of special fees, notarial fees, and witness fees not elsewhere provided for; expenses connected with taking depositions, and court costs and expenses. Exclude from this account and charge to “200. Organization” account, law expenses incurred in the organization of the utility. Exclude also from this account and charge to “268. Injuries and Dam¬ ages During Construction” account law expenses incurred as the result of injuries and damages caused directly in connection with the construc¬ tion of the natural gas system. 26S. Injuries and Damages During Construction. Charge to this account the amounts of all awards of courts or other lawful authority, such as workmen’s compensation boards, etc*., all allow¬ ances by the utility itself for damages to or destruction of property other than that owned by the utility and for injuries and deaths of employees and other persons, when such damages or destruction of property and injuries or deaths are caused directly in connection with the construction of the natural gas system. Include also in this account such items of expense as contributions to hospitals, transportation of injured persons, fees of physicians and surgeons, or, if regularly employed by the utility, a proportion of their salaries and expenses, nurse and hospital charges, cost of medical and surgical supplies, and expenditures for funeral and burial services. Charge also hereto salaries of claim agents and adjusters of the utility and their assistants, while engaged in settling damage, injury, or death claims which result from construction, the compensation of the solicitor or counsel, while engaged in attending to law suits which develop from such claims, and all court costs connected therewith and paid by the utility. 269. Insurance During Construction. Charge to this account the amount of all premiums paid to insurance companies for fire, casualty, boiler, fidelity and other insurance to cover risks during the period of construction of the natural gas system. 270. Taxes During Construction. Charge to this account all taxes and assessments applicable to the period of construction that are levied and paid on property that belongs to the utility and is to be used in the conduct of its natural gas operations. Exclude from this account and charge to the account to which the property benefited was charged all taxes assessed for street and other improvements such as grading, sewering, curbing, guttering, and like improvements. Fixed Capital Accounts. 1. Interest During Construction. Charge to this account the interest accrued during the period of con¬ struction, upon all moneys, and claims payable upon demand, which are acquired by the utility for use in connection with the construction of its natural gas system. Interest receivable on such moneys and claims shall be credited to this account. Discounts received through the prompt payment of bills for materials and supplies used in construction shall be credited to this account if they cannot be assigned to the particular items of materials and supplies to which they apply. 2. Other Expenditures During Construction. Charge to this accoun't all undistributed expenditures, not provided for elsewhere, incurred by the utility during the period of construction. 58 Income Accounts. Definitions and Instructions. Income Accounts. The income accounts of a natural gas utility are those in which it shall record for each fiscal period the total amount of money that it is entitled to receive for natural gas services rendered, the returns accrued upon its invest¬ ments, the accrued cost of natural gas services rendered by it, the losses sus¬ tained by it that are applicable to each fiscal period, the amounts accrued for taxes and for use of moneys and properties of others, and the amount of all other disbursements or obligations incurred by it that effect the amounts so received or accrued. In this classification income accounts consist of the following principal divisions: I. Operating Revenue Accounts II. Operating Expense Accounts III. Non Operating Revenue Accounts IV. Non Operating Expense Accounts V. Gross Income Deduction Accounts VI. Net Income or Loss Accounts VII. Net Income Appropriation Accounts Operating Revenue Accounts. The operating revenue accounts of a natural gas utility are those in which it saall record for each fiscal period the amounts of money which it receives or becomes entitled to receive for sales of natural gas. Operating Expense accounts. The operating expense accounts of a natural gas utility are those in which it shall record for each fiscal period the expenses of operating its natural gas system, the expenses of maintaining its property used in its natural gas opera¬ tions. the expenses of collecting its natural gas revenues, the expenses of ac¬ counting for its natural gas transactions, the general and supervisory expenses connected with its natural gas operations, and all other expenses incident to its operating revenues. In this classification operating expenses consist of two main divisions, namely operation and maintenance. Operation means the use of the natural gas properties. Its cost includes the cost of labor employed, materials and supplies consumed, and expenses incurred in generating, transmitting, storing, and distributing natural gas. This cost also includes administrative and general labor, materials and sup¬ plies, and expenses. Maintenance means the upkeep of the natural gas properties. Its cost in¬ cludes the cost of labor employed, materials and supplies consumed, and ex¬ penses incurred in making repairs to the structures and equipment of the natural gas system. Repairs consist of those changes to the utility’s structures and equipment used in its natural gas operations which are made for the purpose of keeping them in an efficient operating condition. They are changes which affect the current operation of such structures and equipment rather than their value. They include the replacement of minor parts, rearrangements and changes in the location of equipment other than consumers service equipment, and all 59 Income Accounts—Definitions and Instructions. other alterations that do not amount to substantial changes of identity in such structures and equipment. Those changes which result in the complete re¬ placement of any structure o;r unit of equipment are not repairs and are proper charges to the appropriate fixed capital accounts after the cost of the structure or equipment replaced lias been credited thereto. Cost as used in connection with any operating expense account means cash or money cost. Labor means human service of any character. Cost of labor means not only wages paid for manual labor, but also salaries and fees paid to persons engaged in clerical, engineering, and supervisory occupations. Expenses mean those expenditures that are incurred and are chargeable to operating expense accounts and which are neither labor nor materials and supplies. Non Operating Revenue Accounts. The* non operating revenue accounts of a natural gas utility are those in which it shall record for each fiscal period the amounts of money which U receives or becomes entitled to receive either from any service which it renders other than that of supplying natural gas to its consumers, or as a return upon any of its property which is used by others, or as a return upon any interest that it has in the property of others. Non Operating Expense Accounts. The non operating expense accounts of a natural gas utility are those in which it shall record for each fiscal period the expenses incurred by it in rendering services other than supplying natural gas to its consumers and all other expenses incurred by it in procuring its various kinds of non operating revenues. Operating Income or Loss. The operating income of a natural gas utility for any fiscal period is the excess of the sum of the credit balances in its various operating revenue ac¬ counts over the sum of the debit balances in its various operating expense accounts. The operating loss is the reverse excess. Non Operating Income or Loss. The non operating income of a natural gas utility for any fiscal period is the excess of the sum of the credit balances in its various non operating revenue accounts over the sum of the debit balances in its various non operating ex¬ pense accounts. The non operating loss is the reverse excess. Gross Income. The gross income of a natural gas utility for any fiscal period is the sum of its operating and non operating incomes as each of those is defined in this classification. Net Income or Loss. The net income of a natural gas utility for any fiscal period is the excess of its gross income, as herein defined, over the sum of the balances in those accounts which are listed herein under the caption “V. Gross Income Deduc¬ tion Accounts”. The net loss is the reverse excess. Accounts Chargeable in Natural Gas Sales. In its sales of natural gas the utility shall change either “171. Service Billed in Advance” account or “119. Accounts Receivable from Consumers” account, according as such natural gas is paid for in advance of or subsequent to its consumption, the amount that is credited to each operating revenue account. GO INDEX TO INCOME ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. I. OPERATING REVENUE ACCOUNTS. Account Number. Name of Account. Class. Page. Metered Private Sales . C 63 300. Metered Domestic Sales. A B 63 Metered Commercial and Industrial Sales .. B 63 301. Metered Commercial Sales. A 63 302. Metered Industrial Sales . A <% 63 303. Other Metered Private Sales . A B 64 Metered Sales to Other Natural Gas Utilities C 64 304. Metered Sales to Affiliated Natural Gas • Utilities . A B 64 303. Metered Sales to Non Affiliated Natural Gas Utilities . A B 64 300. Metered Public Sales . A B c 64 Unmetered Private Sales . c 64 307. Unmetered Domestic Sales . A B 64 Unmetered Commercial and Industrial Sales B 64 SOS. Unmetered Commercial Sales. A 64 309. Unmetered Industrial Sales. A 310. Unmetered Sales for Lighting Private Streets A B 65 311. Other Unmetered Private Sales . A B 65 Unmetered Sales to Other Natural Gas Utili- ties . c 65 312. Unmetered Sales to Affiliated Natural Gas - Utilities . A B 65 313. Unmetered Sales to Non Affiliated Natural Gas Utilities . A B 65 Unmetered Public Sales . c 65 314. Unmetered Sales for Municipal Street Light- ing . A B 65 315. Unmetered Sales for Other Municipal Uses A B 65 316. Consumers Discounts Forfeited and Penalties Imposed . A B c 66 317. Allowances to Consumers . A B c 66 t INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. I. OPERATING REVENUE ACCOUNTS. Account Number. Name of Account. Page. 300. Metered Domestic Sales . 63 301-302. Metered Commercial and Industrial Sales. 63 303. Other Metered Private Sales. 64 304. Metered Sales to Affiliated Natural Gas Utilities. 64 305. Metered Sales to Non Affiliated Natural Gas Utilities.. 64 306. Metered Public Sales . 64 307. Unmetered Domestic Sales . 64 30S-309. Unmetered Commercial and Industrial Sales. 64 310. Unmetered Sales for Lighting Private Streets . 65 311. Other Unmetered Private Sales . 65 312. Unmetered Sales to Affiliated Natural Gas Utilities. .. . 65 313. Unmetered Sales to Non Affiliated Natural Gas Utilities 65 314. Unmetered Sales for Municipal Street Lighting. 65 315. Unmetered Sales for Other Municipal Uses . 65 316. Consumers Discounts Forfeited and Penalties Imposed... 66 317. Allowances to Consumers . 66 r INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. I. OPERATING REVENUE ACCOUNTS. Account Number. Name of Account. Page. 800-303. Metered Private Sales . 03 304-305. Metered Sales to Other Natural Gas Utilities. 04 306. Metered Public Sales . 04 307-311. Unmetered Private Sales. ' 04 312-313. Unmetered Sales to Other Natural Gas Utilities. 05 314-315. Unmetered Public Sales . 05 316. Consumers Discounts Forfeited and Penalties Imposed... 66 817. Allowances to Consumers . ' 66 >3 TEXT EXPLANATORY OF INCOME ACCOUNTS. I. OPERATING REVENUE ACCOUNTS. Credit to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts earned by the utility from its sales of natural gas. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. Each utility shall so keep the records supporting the entries to each operating revenue account that it can furnish information as to the name of each consumer, the quantity of natural gas sold to him, the rate, and the amount charged for it. Where a utility sells natural gas to the same consumer at different rates it shall keep a separate record of the quantity sold at each rate. Metered Private Sales —(Class C). 300. Metered Domestic Sales —(Classes A and B). Credit to this account the net amount earned by the utility from its metered sales of natural gas for domestic purposes. In the credits to this account include the amounts earned from sales of natural gas to private dwellings, boarding and rooming houses, apart¬ ment houses, and like places of residence where natural gas is used primarily for domestic purposes. If a part of any domicile is used as a .store or shop and the quantity of natural gas used in the store or shop and in the domicile is recorded by the same meter, the utility shall consider the sales of natural gas so recorded as domestic sales. Metered Commercial and Industrial Sales —(Class B). 301. Metered Commercial Sales —(Class A). Credit to this account the net amount earned by the utility from its metered sales of natural gas for commercial purposes. In the credits to this account include the amounts earned from sales of natural gas to hotels, restaurants, saloons, warehouses, wholesale and retail stores, office buildings, barns and garages not appurtenant to dwell¬ ings and apartment houses, private schools and colleges, churches, hos¬ pitals, and other private institutions, and all other commercial establish¬ ments which do not use natural gas primarily for power or industrial purposes. 302. Metered Industrl\l Sales —(Class A). Credit to this account the net amount earned by the utility from its metered sales of natural gas for power and industrial purposes. In the credits to this account include the amounts earned from sales of natural gas to steel and iron mills, foundries, potteries, brick manu¬ factories, factories, and all other establishments which use natural gas primarily for power and industrial purposes. 64 Operating Revenue Accounts. 303. Other Metered Private Sales —(Classes A and B). Credit to this account the net amount earned by the utility from its metered sales of natural gas for private purposes not provided for else¬ where. In the credits to this account include the amounts earned from sales of natural gas to builders, contractors, circuses, drillers and others that use natural gas for a short time without permanent service connections. Metered Sales to Other Natural Gas Utilities —(Class C). 304. Metered Sales to Affiliated Natural Gas Utilities —(Classes A and B). Credit to this account the net amount earned by the utility from its metered sales of natural gas to natural gas utilities that are affiliated with it. 305. Metered Sales to Non Affiliated Natural Gas Utilities —(Classes A and B). % Credit to this account the net amount earned by the utility from its metered sales of natural gas to natural gas utilities that are not affiliated with it. 306. Metered Public Sales —(Classes A B and C). Credit to this account the net amount earned by the utility from its metered sales of natural gas to municipalities. Unmetered Private Sales —(Class C). 307. Unmetered Domestic Sales —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas to consumers for domestic purposes. In the. credits to this account include the amounts earned from sales of natural gas to private dwellings, boarding and rooming houses, apart¬ ment houses, and like places of residence where natural gas is used primarily for domestic purposes. If a part of any domicile is used as a store or shop and one service line supplies the store or shop and the domicile at the same rate the utility shall credit the revenue sales of natural gas so supplied to this account. Unmetered Commercial and Industrial Sales —(Class B). SOS. Unmetered Commercial Sales —(Class A). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas for commerical purposes. In the credits to this account include the amounts earned from the sale of natural gas to hotels, restaurants, saloons, warehouses, wholesale and retail stores, office buildings, barns and garages not appurtenant to dwellings and apartment houses, private schools and colleges, churches, hospitals, and other private institutions, and all other commercial estab¬ lishments which do not use natural gas primarily for power or industrial purposes. 65 Operating Revenue Accounts. 309. Unmetered Industrial Sales —(Class A). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas for power and industrial purposes. In the credits to this account include the amounts earned from sales of natural gas to steel and iron mills, foundries, potteries, brick manu¬ factories, factories, and all other establishments which use natural gas primarily for power and industrial purposes. 33.0. Unmetered Sales for Lighting Private Streets —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas for lighting private streets. In the credits to this account include the amounts earned from sales of natural gas for lighting private streets, alleys, bridges, viaducts, parks, yards, rights of way, etc.; also the amounts earned from sales of natural gas to individuals and concerns for cooperative street lighting whether such streets are private or public. 311. Other Unmetered Private Sales —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas for private purposes not provided for elsewhere. In the credits to this account include the amounts earned from sales of natural gas to builders, contractors, circuses, drillers and others that use natural gas for a short time without permanent service connections. Unmetered Sales to Other Natural Gas Utilities —(Class C). 332. Unmetered Sales to Affiliated Natural Gas Utilities —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas to natural gas utilities that are affiliated with it. 1 313. Unmetered Sales to Non Affiliated Natural Gas Utilities —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas to gas utilities that are not affiliated with it. Unmetered Public Sales —(Class C). 334. Unmetered Sales for Municipal Street Lighting —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas to municipalities for street lighting. In the credits to this account, include the amounts earned from sales of natural gas for lighting public streets, alleys, bridges, viaducts, parks, commons, etc. 315. Unmetered Sales for Other Municipal Uses —(Classes A and B). Credit to this account the net amount earned by the utility from its unmetered sales of natural gas to municipalities for purposes not pro¬ vided for elsewhere. 0 Operating Revenue Accounts. 51(5. Consumers Discounts Forfeited and Penalties Imposed —(Classes A B and C). Credit to this account the amounts of those discounts which the utility allows its consumers on condition that they pay their natural gas hills on or before a specified date and which are forfeited hy the consumers because of their failure to pay their bills within the specified time. Credit also to this account the amounts of penalties imposed by the utility on its consumers because of their failure to pay their natural gas bills within a stated time. 517. Allowances to Consumers—(C lasses A B and C). Charge to this account the amounts of allowances to consumers made by the utility on its natural gas sales. Exclude from this account all allowances that are applicable to previous fiscal periods. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name and kind of each con¬ sumer to whom an allowance is made, the amount allowed him, and the reason for making the allowance. 07 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. II. OPERATING EXPENSE ACCOUNTS. Account Number. Name of Account. Class. Page. A. PRODUCTION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor . B C 70 350. Superintendence . A 70 351. Gas Well and Field Line Labor. A 76 352. Field Measuring Station Labor. A 70 353. Other Labor . A 77 Operating Supplies and Expenses . B C 77 354. Superintendence Supplies and Expenses.. A 77 355. Gas Well and Field Line Supplies and Ex- penses . A ~7 350. Field Measuring Station Supplies and Ex- penses . A 77 357. Other Supplies and Expenses . A « 77 358. Gas Well Royalties . A B C 77 Maintenance of Production System Structures B C 78 350. Maintenance’ of Gas Well Structures .... A 78 300. Maintenance of Other Production System Structures . A 78 Maintenance of Production System Equipment C 78 • Maintenance of Gas WLll and Field Line Equipment . B 78 301. Maintenance of Gas Well Equipment .... A • 78 302. Maintenance of Field Line Equipment .... A 7S f opo OuO . Changing Field Lines . A 78 Maintenance of Other Production System Equipment . B 79 304. Maintenance of Field Measuring Station Equipment . A 79 305. Maintenance of Portable Engines, Pumps and Boilers . A 79 300. Maintenance of Rigs, Drilling and Clean- ing Equipment . A 79 307. Maintenance of Other Production Equip- ment. A 79 B. NATURAL GAS PRODUCED BY OTHERS. 36S. Natural Gas Purchased for Resale. A B C 79 369. Purchased Gas Expense . A B C 79 68 Operating Expense Accounts. Account Number. Name of Account. Class. Page. C. TRANSMISSION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor . B C 80 370. Superintendence . A SO 371. Compressing Station Labor. A 80 372. Measuring Station Labor. A SO 3 1 3. Transmission Line Labor . A 80 374. Other Transmission System Labor. A 80 Operating Supplies and Expenses . B C SO * 3 1 o . Superintendence Supplies and Expenses ... A % SO 376. Compressing Station Supplies and Expenses A 81 377. Measuring Station Supplies and Expenses A 81 37S. Transmission Line Supplies and Expenses A SI 379. Transmission System Rent . A 81 3 SO . Other Transmission System Supplies and Expenses . A - 81 Maintenance of Transmission System Struct- ures . B C 81 3S1 . Maintenance of Compressing Station Structures .. A SI 382. Maintenance of Other Transmission Sys- tem Structures . A 82 Maintenance of Transmission System Equip- ment . C 82 QOQ ooo . Maintenance of Compressing Station Equip- ment . A B 82 384. Maintenance of Transmission Line Equip- ment . A 82 .385. Changing Transmission Lines . A 82 Maintenance of Other Transmission System Equipment . B 82 386. Maintenance of Measuring Station Equip- • ment. A 82 387. Maintenance of Other Transmission Equip- ment. A 82 D. DISTRIBUTION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor. B C 83 3S8 . Superintendence . A S3 389. Distribution Line Labor . A o*» oo 390. Labor Removing and Resetting Meters and House Regulators . A i S3 391. Labor Inspecting and Testing Meters and House Regulators. A 83 392 . Other Meter Department Labor . A 83 393. Other Distribution System Labor . A 83 GO Operating Expense Accounts. Account Number. Name of Account. Class. Page. Operating Supplies and Expenses . B C SI 394. Superintendence Supplies and Expenses .. A 84 395. Distribution Line Supplies and Expenses.. A 84 393. Meter Department Supplies and Expenses A 84 397. Distribution System Rent. A 84 398. Other Distribution System Supplies and Expenses . A 84 399. Maintenance of Distribution System Struct- ures . A B C S5 Maintenance of Distribution System Equipment C 85 Maintenance of Distribution System Lines . . B 85 400. Maintenance of Distribution Line Equip- ment . A 85 401 . Changing Distribution Lines . A 85 402. Maintenance of Service Line Equipment .. A 85 Maintenance of Meters and House Regulators B 85 403. Maintenance of Meters . A 85 404. Maintenance of House Regulators. A 85 Maintenance of Other Distribution System Equipment . B 85 405. Maintenance of Gas Receivers and District Regulators. A 85 406. Maintenance of Other Distribution Equip- MENT . A 86 E. UTILIZATION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor . B C 86 407. Commercial Lighting System Labor . A 86 408'. Municipal Street Lighting System Labor. . A 86 409. Private Street Lighting System Labor .... A 86 410. Consumers' Premises Labor. A 86 Operating Supplies and Expenses . B C 87 » 411. Commercial Lighting System Supplies and Expenses . -A ST 412. Municipal Street Lighting System Supplies and Expenses . A 87 413. Private Street Lighting System Supplies and Expenses . A 87 414. Consumers’ Premises Supplies and Expenses A 87 Maintenance' op Utilization System Equipment B C 87 415. Maintenance of Commercial Lighting Sys- XEM . A 87 416. Maintenance of Municipal Street Lighting System. A 87 417. Maintenance of Private Street Lighting System. A 88 418. Maintenance of Other Utilization Equip- MENT . A 88 TO Operating Expense Accounts. Account Number. Name of Account. . Class. Page. F. COMMERCIAL DEPARTMENT OPERATING EXPENSE ACCOUNTS. 419. Operating Labor . 420. Operating Supplies and Expenses ABC SS ABC SS G. NEW BUSINESS DEPARTMENT OPERAT¬ ING EXPENSE ACCOUNTS. New Business Salaries and Commissions. 421. New Business Salaries . 422. New Business Commissions. 423. New Business Supplies and Expenses. B C A A ABC SS 88 89 89 H. GENERAL ADMINISTRATIVE EXPENSE ACCOUNTS. General Administrative Salaries. B C 89 424. Salaries oe General Officers. A 89 425 . Salaries of General office Clerks. A 89 General Administrative Supplies and Expenses C 90 General Administrative Supplies . B 90 420. General Office Stationery and Printing . . A 90 427. Other General Office Supplies. A 90 General Officers’ and General Clerks’ Ex- penses . B 90 42S. General Officers’ Expenses . A 90 429. General Office Clerks’ Expenses . A 90 Other General Administrative Expenses .... B 91 430. General Law Expenses . A 91 431. General Office Rent . A 91 432. Other General Office Expenses . A 91 433. Maintenance of General Office Structures ... A B C 91 434. Maintenance of General Office Equipment ... A B C 91 I. OTHER GENERAL EXPENSE ACCOUNTS. General Labor . C 91 435 . Store Labor . A B 91 Stable and Garage Labor . B 92 430. Stable Labor . A GO • 437. Garage Labor . A 92 Shop and Laboratory Labor . B 92 438. Shop Labor. A 92 439. Laboratory Labor . A • 92 440. Telephone and Telegraph System Labor .... A B 92 General Supplies and Expenses . C 93 441. Store Supplies and Expenses . A B 93 Stable and Garage Supplies and Expenses . .. B 93 442. Stable Supplies and Expenses . A • 93 71 Operating Expense Accounts. Account Number. Name of Account. Class. Page. 443. Garage Supplies and Expenses . A 98 Shop and Laboratory Supplies and Expenses B 98 444. Shop Supplies and Expenses. A 93 445. Laboratory Supplies and Expenses. A 98 44(3. Telephone and Telegraph System Supplies and Expenses . A B 94 447. Natural Gas Franchise Requirements . A B C 94 448. Taxes . A B C 94 449. Uncollectible Consumers’ Accounts . A B C 94 Other General Expenses . C 95 450. Public Service Commission Expense . A B 95 Insurance and Pension Expense. B 95 451. Injuries and Damages. A 95 452. Other Insurance . A 96 458. Pensions . A 96 454. Other General Expense . A B 96 General Adj ustments . C 96 455. Inventory Adjustments .. A B 96 450. Discount on Materials and Supplies. A B 96 457. Utility’s Natural Gas Used in Operations .. A B 97 458. Free Municipal Natural Gas Service . A B 97 Maintenance of General Structures . B C 97 459. Maintenance of General Store Structures A 97 460. Maintenance of General Stable Structures A 97 461. Maintenance of General Garage Structures A 97 462. Maintenance of General Shop Structures. A 97 463. Maintenance of General Laboratory Structures . A 97 464. Maintenance of Other General Structures A 97 Maintenance of General Equipment . B C 98 465. Maintenance of General Store Equipment A 98 466. Maintenance of General Stable Equipment A 98 467. Maintenance of General Garage Equipment A 98 468. Maintenance of General Shop Equipment. . A 98 409. Maintenance of General Laboratory Equip- ment. A 98 470 . Maintenance of General Telephone and Telegraph System. A 98 471. Maintenance of Other General Equipment A 99 472. Depreciation . A B C 99 473. Extraordinary Depreciation. A B c 99 474. Amortization of Franchises, Patent Rights and Licenses .. A B c 99 475. Joint Operating Expenses Transferred . A B c 99 72 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. II. OPERATING EXPENSE ACCOUNTS. Account Number. Name of Account. Page. i A. PRODUCTION SYSTEM OPERATING EXPENSE ACCOUNTS. 350-353. Operating Labor . TO 354-357. Operating Supplies and Expenses . 77 358. Gas Well Royalties . 77 359-360. Maintenance of Production System Structures. 7S 361-363. Maintenance of Gas Well and Field Line Equipment. 78 364-367. Maintenance of Other Production System Equipment.... 79 B. NATURAL GAS PRODUCED BY OTHERS. 368. Natural Gas Purchased for Resale. 79 369. Purchased Gas Expense . 79 C. TRANSMISSION SYSTEM OPERATING EXPENSE ACCOUNTS. 370-374. Operating Labor . SO 375-380. Operating Supplies and Expenses. SO 381-382. Maintenance of Transmission System Structures. SI 383. Maintenance of Compressing Station Equipment. S2 384- 385. Maintenance of Transmission Lines . 82 386-387. Maintenance of Other Transmission System Equipment 82 D. DISTRIBUTION SYSTEM OPERATING EXPENSE ACCOUNTS. 385- 393. Operating Labor . 83 394-398. Operating Supplies and Expenses . S4 399. Maintenance of Distribution System Structures. 85 400-402. Maintenance of Distribution System Lines . 85 403-404. Maintenance of Meters and House Regulators . 85 405-406. Maintenance of Other Distribution System Equipment. . 85 t E. UTILIZATION SYSTEM OPERATING EXPENSE ACCOUNTS. 407-410. Operating Labor . 86 411-414. Operating Supplies and Expenses . 87 415-418. Maintenance of Utilization System Equipment. S7 Operating Expense Accounts. Account Number. 410. 420. 421-422. 423. 424-425. 426-427. 428-420. 430-432. 433. 434. 435. 436-437. 438-430. 440. 441. 442-443. 444-445. 446. 447. 448. 440. 450. 451-453. 454. 455. 456. 451 . 458. 450-464. 465-471. 472. 473. 474. 475. Name of Account. F. COMMERCIAL DEPARTMENT OPERATING EX¬ PENSE ACCOUNTS. Operating Labor .• Operating Supplies and Expenses. G. NEW BUSINESS DEPARTMENT OPERATING EX¬ PENSE ACCOUNTS. New Business Salaries and Commissions. New Business Supplies and Expenses . H. GENERAL ADMINISTRATIVE EXPENSE AC¬ COUNTS. General Administrative Salaries . General Administrative Supplies . General Officer's and General Clerk’s Expenses . Other General Administrative Expenses. Maintenance of General Office Structures. Maintenance of General Office Equipment . I. OTHER GENERAL EXPENSE ACCOUNTS. Store Labor . Stable and Garage Labor. Shop and Laboratory Labor . Telephone and Telegraph System Labor . Store Supplies and Expenses . Stable and Garage Supplies and Expenses. Shop and Laboratory Supplies and Expenses . Telephone and Telegraph System Supplies and Expenses Natural Gas Franchise Requirements . Taxes . Uncollectible Consumers’ Accounts . Public Service Commission Expense . Insurance and Pension Expense.. Other General Expense. Inventory Adjustments . Discount on Materials and Supplies . Utility’s Natural Gas Used in Operations. Free Municipal Natural Gas Service. Maintenance of General Structures . Maintenance of General Equipment. Depreciation . Extraordinary Depreciation . Amortization of Franchises, Patent Rights and Licenses Joint Operating Expenses Transferred. 74 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. II. OPERATING EXPENSE ACCOUNTS. Account Number. Name of Account. Page. A. PRODUCTION SYSTEM OPERATING EXPENSE ACCOUNTS. *150-353. 554-357. 358. 359-300. 301-307. 308. 309. 370-374. 375-380. 381-382. 383-387. 388-395. 394-398. 599. 400-406. 407-410. 411-414. 415-418. Operating Labor . Operating Supplies and Expenses. Gas Well Royalties. Maintenance of Production System Structures. »... Maintenance of Production System Equipment. B. NATURAL GAS PRODUCED BY OTHERS. Natural Gas Purchased for Resale. Purchased Gas Expense. C. TRANSMISSION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor . Operating Supplies and Expenses. Maintenance of Transmission System Structures. Maintenance of Transmission System Equipment. 1). DISTRIBUTION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor . Operating Supplies and Expenses. Maintenance of Distribution System Structures. Maintenance of Distribution System Equipment. E. UTILIZATION SYSTEM OPERATING .EXPENSE ACCOUNTS. Operating Labor . Operating Supplies and Expenses. Maintenance of Utilization System Equipment. 70 r— i i 77 78 78 79 79 80 80 SI 82 •S3 84 85 85 80 87 87 F. COMMERCIAL DEPARTMENT OPERATING EX¬ PENSE ACCOUNTS. 419. Operating Labor . 88 420. Operating Supplies and Expenses. 88 % < D Operating Expense Accounts. Account Number. Name of Account. Pager. G. NEW BUSINESS DEPARTMENT OPERATING EX¬ PENSE ACCOUNTS. 421-422. New Business Salaries and Commissions . SS 423. New Business Supplies and Expenses . SO * H. GENERAL ADMINISTRATIVE EXPENSE AC¬ COUNTS. 424^25. General Administrative Salaries . SO 426-432. General Administrative Supplies and Expenses. 00 433. Maintenance of General Office Structures. 01 434. * Maintenance of General Office Equipment. 91 I. OTHER GENERAL EXPENSE ACCOUNTS. 433-440. General Labor . 91 441-446. General Supplies and Expenses . 03 447. Natural Gas Franchise Requirements . 94 448. Taxes . 94 449. Uncollectible Consumers’ Accounts . 94 450-454. Other General Expenses . 95 455-458. General Adjustments . 96 459-464. Maintenance of General Structures . 97 465-471. Maintenance of General Equipment .... .. 98 472. Depreciation . 00 473. Extraordinary Depreciation . 00 > 474. Amortization of Franchises, Patent Rights and Licenses 00 475. Joint Operating Expenses Transferred. 00 ♦ * TEXT EXPLANATORY OF INCOME ACCOUNTS. II. OPERATING EXPENSE ACCOUNTS. Charge to the apprporiate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts of operating expenses (incurred by the utility in the conduct of its natural gas operations. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. Each natural gas utility shall so keep the records supporting the entries to each maintenance account listed under this caption that it can furnish information as to the separate cost of labor, materials and supplies, and expenses charged thereto. i A. PRODUCTION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor —qClasses B and C). Superintendence — (Class A). Charge to this account the cost of labor employed by the utility in a general supervisory capacity in the operation of its natural gas produc¬ tion system. Exclude from this account salaries and wages for services of this char¬ acter performed in the maintenance of such property. Gas Well and Field Line Labor— (Class A), Charge to this account the cost of labor employed by the utility in the operation of its gas wells and field liues. In the charges to this account include the cost of the labor of those employed in pumping and gauging wells, blowing lines and wells, pa¬ trolling lines, inspecting field line regulators, talcing pressures, operating reducing stations, fighting forest fires, and performing other services in the operation of gas wells and field lines. Exclude from this account maintenance labor. Field Measuring Station Labor —(Class A). Charge to this account the cost of labor employed by the utility in operating field measuring stations used to measure the quantity of natural gas produced by the utility. In the charges to this account include the cost of the labor of those employed in operating measuring devices, calculating the quantity of gas produced by the utility, and performing other services in the opera¬ tion of the field measuring stations. Exclude from this account the cost of field measuring operations in connection with gas purchased from other producers. Exclude also from this account maintenance labor. Operating Expense Accounts. Other Labor—(C lass A). Charge to this account the cost of labor, not provided for elsewhere, employed by the utility in the production of natural gas. Exclude from this account maintenance labor. Operating Supplies and Expenses—(C lasses B and C). Superintendence Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by its superintendents and others employed in a supervisory capacity in the production of natural gas. In the charges to this account include the cost of supplies used and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by superintendents and others employed in a supervisory capacity in the production of the utility’s natural gas. Gas Well and Field Line Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by employees other than superintendents engaged in the operation of its gas wells and field lines. In the charges to this account include the cost of such supplies as fuel, oil, waste, tools, etc., land such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by employees other than superintendents engaged in operating the utility’s gas wells and field lines. Field Measuring Station Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by employees engaged in the operation of its field measuring stations. In the charges to this account include the cost of fuel, oil, waste, tools, meter charts, etc., and such expenses as train fares, carfares, hotel ex¬ penses, meals, and like necessary expenses incurred by employees engaged in the operation of the utility’s field measuring stations. Other Supplies and Expenses— (Class A). Charge to this account the cost, not provided for elsewhere, of all sup¬ plies used and expenses incurred for the benefit of the utility by em¬ ployees engaged in the operation of its natural gas production system. Gas Well Royalties —(Classes A B and C). Charge to this account the amounts of royalties paid for natural gas produced by the utility and extracted from land owned by others. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party to each contract involving royalties, the terms of each contract, the location of each gas well operated on a royalty basis, the methods of determining royalties paid, and the amounts of royalties paid in agreement with the terms of each contract. Operating Expense Accounts. Maintenance of Production System Structures —(Classes B and C). Maintenance of Gas Well Structures —(Class A)) — Charge to Phis account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its gas well structures. In the charges to this account include the cost of repairs to such structures as buildings used to house gate valves, pumping equipment, and other apparatus necessary to keep gas wells in operation. « Maintenance of Other Production System Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses Incurred by the utility in making repairs to all other structures of the production system. In the charges to this account include the cost of repairs to structures used to house meters and other appliances used in measuring gas before it is conveyed to compressing or boosting stations or other points where the transmission system begins, and all other buildings or other forms of structures used in the production of natural gas. Maintenance of Production System Equipment —(Class C). Maintenance of Gas Well and Field Line Equipment —(Class B). Maintenance of Gas Well Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses .incurred by the utility in making repairs to its gas well equipment. In the charges to this account include the cost of repairs to drive pipe, casing, tubing, packers, fittings, and all other gas well equipment up to and including well gates and stops. Charge also to this account the cost of repairs to engines and appliances used exclusively in the operation of natural gas wells. Maintenance of Field Line Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to lines used by it in collecting natural gas from wells and conveying it to compressing or boosting stations or other points where the transmission system begins. In the charges to this account include the cost of repairs to pipe, collars, couplings, other fittings, gates, valves and other equipment accessory to the field lines. Changing Field Lines —(Class A). • Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in changing the location of its field lines. Operating Expense Accounts. Maintenance of Other Production System Equipment —(Class B). 364. Maintenance of Field Measuring Station Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup plies consumed, and expenses (incurred by the utility in making repairs to'ics held measuring station equipment. In the charges to this account include the cost of repairs to meters, gauges and other devices used by the utility to measure natural gas collected by the field lines before it as conveyed to compressing or boosting stations or other points where the transmission system begins. hi;.-). Maintenance of Portable Engines, Pumps and Boilers — (Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its portable engines, pumps and boilers used in its production system. In the charges to this account include the cost of repairs to portable engines, pumps, boilers, and accessory equipment used by the utility iia ■» drilling and cleaning natural gas wells and performing other services in the production system. 306. Maintenance of Rigs, Drilling and Cleaning Equipment— (Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its rigs, drilling and cleaning equipment. In the charges to this account include the cost of repairs to rigs, drilling cables, rope sockets, swivel wrenches, bailers and other equipment, except boilers, engines and pumps, used in drilling and cleaning natural gas wells. 3(57. Maintenance of Other Production Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses Incurred by the utility in making repairs to all equipment, not provided for elsewhere, used in the production of natural gas. . B. NATURAL GAS PRODUCED BY OTHERS. 368. Natural Gas Purchased for Resale — (Classes A B and C). Charge to this account the amount paid for natural gas produced by others and purchased by the utility for resale. The records supporting the entries to this account shall be so kept , that the utility can furnish information as to the name of each vendor of such natural gas; whether or not the utility controls, is controlled by, or is in any way affiliated with such vendor; the quantity of natural gas purchased from each vendor; and the rate and amount paid for it. ’ 369. Purchased Gas Expense — (Classes A B and C). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses Incurred by the utility in connection with the purchase of natural gas for resale. In the charges to this account include the cost of operating measuring devices, and calculating the quantity of gas purchased for resale; also the cost of supplies as fuel, oil, waste, tools, meter charts, ink, etc., and such expenses as train fares, car fares, hotel expenses, meals, and like necessary expenses incurred by the utility in the purchase of natural gas for resale. Operating Expense Accounts. C. TRANSMISSION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor —(Classes B and C). Superintendence —(Class A). Charge to this account the cost of labor employed by the utility in a general supervisory capacity in the operation of its transmission system. In the charges to this account include the salaries of superintendents and foremen having supervision over the operation of the compressing stations, transmission lines, and other parts of the utility’s transmis¬ sion system. Exclude from this account salaries for services of this Character per¬ formed in the maintenance of the transmission system properties. Compressing Station Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its compressing stations. In the charges to this account include the cost of the labor of engineers, oilers, wipers, and others employed in the operation of engines, compres¬ sors, boosters, lighting and ventilating appliances, and other equipment in the compressing stations. Measuring Station Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of the measuring stations in its transmission system. In the charges to this account include the cost of the labor of those employed in operating measuring devices used to compute the quantity of gas flowing through transmission lines, and performing all other services in the operation of the transmission system measuring stations. Exclude from this account maintenance labor. Transmission Line Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its transmission lines. In the charges to this account include the cost of the labor of those employed in patrolling lines, taking pressures, blowing lines, attending gates and performing other services in the operation of the transmission lines. Exclude also from this account maintenance labor. Other Transmission System Labor —(Class A). Charge to this account the co.st of labor, not provided for elsewhere, employed by the utility in the operation of its transmission system. Exclude from this account maintenance labor. Operating Supplies and Expenses —(Classes B and C). Superintendence Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by its superintendents and others employed in a supervisory capacity in the operation of its transmission system. Operating Expense Accounts. In the charges to this account include the cost of supplies used and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by superintendents and others employed in a supervisory capacity in the operation of the utility’s transmission system. Compressing Station Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its compressing stations. In the charges to this account include the cost of fuel, lubricants, waste, wipers, brooms, shovels, scoops, hand tools, stationery and print¬ ing, postage, light, heat, drinking water, ice, soap, water for cooling compressors and for general use, and like supplies used and expenses incurred in the operation of the compressing stations. Measuring Station Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of the measuring stations in its transmis¬ sion system. In the charges to this account include the cost of oil, waste, tools, meter charts, and other supplies used and expenses incurred in the operation of the measuring stations. Transmission Line Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its transmission lines. Transmission System Rent —(Class A). Charge to this account the amount of rent accrued during each account¬ ing period on property rented by the utility from others for a short term for use in transmitting natural gas and in which the utility makes no investment other than expenditures for repairs or changes for /its own convenience. If the utility leases such property for a long term and enjoys exclusive use thereof during the period of the lease, it shall charge the rent that i: pays thereon to “600. Rent for Lease of Natural Gas System Proper¬ ties” account. Other Transmission System Supplies and Expenses— (Class A). ^ Charge to this account the cost, not provided for elsewhere, of all sup¬ plies used and expenses incurred by the utility in the operation of its transmission system. Maintenance of Transmission System Structures —(Classes B and C). Maintenance of Compressing Station Structures —(Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to its compressing station structures. In the charges to this account include the cost of repairs to buildings used to house compressors, boosters, and appurtenant engines and equip¬ ment. Maintenance of Otiiek Transmission System Structures —(Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to structures, not provided for elsewhere, used to house transmission system equipment. Maintenance of Transmission System Equipment —(Class C). Maintenance of Compressing Station Equipment —(Classes A and B). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to its compressing station equipment. In the charges to this account include the cost of repairs to compressors, boosters, gas and steam engines, electric motors, lighting and ventilating appliances, and all other equipment used in the compressing station. Maintenance of Transmission Lines —(Class B). Maintenance of Transmission Line Equipment —(Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to its transmission lines. In the charges to this account include the cost of repairs to pipe, fittings, collars, couplings, other fittings, gates, valves, and other equip¬ ment accessory to the transmission pipe lines. Changing Transmission Lines —(Class A); Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in changing the location of its transmission lines. Maintenance of Other Transmission System Equipment —Class B). Maintenance of Measuring Station Equipment —(Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to the measuring station equipment in its transmission system.. In the charges to this account include the cost of repairs to meters, gauges, and other equipment used in the transmission system measuring station. Maintenance of Other Transmission Equipment —(Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to equipment, not provided for elsewhere, used in its transmission system. So Operating Expense Accounts. t D. DISTRIBUTION' SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor —(Classes A B and C). 388. Superintendence —(Class A). Charge to this account the cost of. labor employed by the utility in a general supervisory capacity in the operation of its distribution system. In the charges to this account include the salaries of the superin¬ tendent and foremen of the distribution system; also that portion of the salaries of the engineering staff, consulting operating engineers, drafts¬ men, chemists, clerks, etc., that is chargeable to the operation of the distribution system. Exclude from this account salaries for services of this character per¬ formed in the maintenance of the distribution system properties. * K 389. Distribution Line Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its distribution lines. In the charges to this account include the cost of the labor of those em ployed in inspecting district regulators, mains and service lines, taking pressures, attending gates, and performing other services in the operation of the utility’s distribution lines. Exclude from this account maintenance labor. 390. Labor Removing and Resetting Meters and House Regulators— (Class A). Charge to this account the cost of labor employed by the utility in removing and resetting its meters and house regulators used on the premises of consumers. In the charges to this account include the cost of the labor of those employed in removing meters, and house regulators from the premises of the consumer to the utility’s shop for testing purposes, resetting or replacing such meters and house regulators after they have been tested, changing location of meters and bouse regulators on consumers’ premises, and performing like services. Exclude from this account maintenance labor. 391. Labor Inspecting and Testing Meters and House Regulators— (Class A). Charge to this account the cost of the labor of those employed by the utility in inspecting and testing meters and house regulators that are in use. Exclude from this account maintenance labor. 392. Other Meter Department Labor —(Class A). Charge to this account the cost of the labor, not provided for elsewhere, employed by the utility in the operation of its meter department. . Exclude from this, account maintenance labor. 393. Other Distribution System Labor —(Class A). Charge to this account the cost of labor not provided for elsewhere, employed by the utility in the operation of its distribution system. Exclude from this account maintenance labor. 84 Operating Expense Accounts. Operating Supplies and Expenses —(Classes B and C) 394. Superintendence Supplies and Expenses — (Class A). Charge to this-account the cost of supplies used and expenses incurred for the benefit of the utility by its superintendents and others employed in a general supervisory capacity in the operation of its distribution system. In the charges to this account include the cost of supplies used and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by the superintendents and others employed in a supervisory capacity in the operation of the utility’s distribution system. * * \ 395. Distribution Ltne Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its distribution lines. In the charges to this account include the cost of supplies used and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by the employees of the utility other than those employed in a supervisory capacity, in the operation of the utility's district regulators, distribution and service lines. 390. Meter Department Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by its employees in the operation of its meter department. In the charges to this account include the cost of candles, matches, ice, water, laundry, electricity for light, heat, and power, stationery, postage, and like Items; also such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by the superintendents and other employees of the utility while engaged in removing, resetting, in¬ specting, and testing meters, and performing other services in the opera¬ tion of its meter department. 397. Distribution System Rent —(Class A). Charge to this account the amount of rent accrued during each account¬ ing period on property .rented by the utility from others for a short term for use in distributing natural gas and in which the utility makes no other investment except expenditures for repairs or changes for its own convenience. If the utility leases such property for a long term and enjoys exclusive use thereof during the period of the lease it shall charge the rent that it pays thereon to “600. Rent for Lease of Natural Gas System Prop¬ erties” account. 39S. Other. Distribution System Supplies and Expenses —(Class A). Charge to this account the cost, not provided for elsewhere, of supplies used and expenses incurred by the utility in the operation of its distri¬ bution system. 85 Operating Expense Accounts. 399. Maintenance of Distribution System Structures —(Classes A B and C). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to the structures of its distribution system. Maintenance of Distribution System Equipment —(Class C). Maintenance of Distribution System Lines —(Class B). 400. Maintenance of Distribution Line Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its distribution lines. In the charges to this account include the cost of repairs to pipe, collars, couplings, other fittings, gates, valves, and other equipment accessory to the distribution lines. 401. Changing Distribution Lines—'(C lass A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in changing the location of its distribution lines. 402. Maintenance of Service Line Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to the service lines of its distribution system. In the charges to this account include the cost of repairs to pipe, fittings, curb boxes, and other equipment accessory to the service lines. » • Maintenance of Meters and House Regulators—(C lass B). 403. Maintenance of Meters —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to the meters of its distribution system. In the charges to this account include the cost of adjusting, cleaning, and painting meters, repairing and replacing meter shelves and connec¬ tions, inserting new parts, and performing other services necessary to keep the meters in operation. 404. Maintenance of House Regulators—(C lass A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to the house regulators of its distribution system. Maintenance of Other Distribution System Equipment—(C lass B). 405. Maintenance of Gas Receivers and District Regulators —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to gas receivers, district regulators, recording gauges, safety tanks, and other pressure controlling apparatus of its distribution system. Exclude from this account the cost of repairs to house regulators, Operating Expense Accounts. 406. Maintenance of Other Distribution Equipment —(Class A). Charge to this account the cost, not provided for elsewhere, of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to other equipment of its distribution sys¬ tem. E. UTILIZATION SYSTEM OPERATING EXPENSE ACCOUNTS. Operating Labor —(Classes B and C). 407. Commercial Lighting System Labor —'(Class A). Charge to this account the cost of labor employed by the utility in the operation of its commercial Lighting system. In the charges-Ucuth is account include the cost of the labor of those employed in cleaning, lighting, extinguishing, inspecting commercial lights and performing other services in the operation of the commercial lighting system. 40S. Municipal Street Lighting System Labor —(Class A). Charge to this account the cost of- labor employed by the utility in the operation of its municipal street lighting system. In the charges to this account include the cost of the labor of those employed in cleaning, lighting, and extinguishing street lights, inspecting and supervising the street lighting district, reporting on re-lights and discontinues, watching the hours of lighting and extinguishing, and per¬ forming other services in the operation of the municipal street lighting system. Exclude from this account maintenance labor. 409. Private Street Lighting System Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its private street lighting system. In the charges to this account include the cost of the labor of those employed in cleaning, lighting, and extinguishing street lights, inspecting and supervising the street lighting districts, reporting on re-lights and discontinues, watching the hours of lighting and extinguishing and per¬ forming other services in the operation of the private street lighting system. Exclude from this account maintenance labor. 410. Consumers’ Premises Labor —(Class A). Charge to this account the cost of labor employed by the utility and furnished gratuitously to consumers for the purpose of maintaining the efficiency of their natural gas connections and appliances. In the charges to this account include the cost of the labor of those employed in investigating complaints made by consumers, inspecting and testing their piping and fixtures, and performing like services on their premises. 87 Operating Expen.se Accounts. Operating Supplies and Expenses —(Classes B and C). 411. Commercial Lighting System Supplies and Expenses— (Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its commercial lighting system. In the charges to this account include the cost of such items as burners, globes, reflectors, waste, etc., and such expenses as train fares, carfares, hotel expenses, meals and like necessary expenses incurred by employees of the utility in the operation of its commercial lighting system. 412. Municipal Street Lighting System Supplies and Expenses— (Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of /its municipal street lighting system. In the charges to this account include the cost of such items as burners, globes, waste, reflectors, etc., and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by employees of the utility in the operation of its municipal street lighting system. 413. Private Street Lighting System Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its private street lighting system. In the charges to this account include the cost of such items as burners, globes, reflectors, waste, etc., and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by employees of the utility in the operation of its private street lighting system. 414. Consumers’ Premises Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in gratuitously maintaining the efficiency of fhe natural gas connections and appliances on the premises of its consumers. In the charges to this account include the cost of supplies used and expenses incurred in investigating consumers’ complaints, inspecting and testing their piping and fixtures, and performing like services on their premises. Maintenance of Utilization System Equipment— (Classes B and C). 415. Maintenance of Commercial Lighting System —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses Incurred by the utility in making repairs to its commercial lighting system. In the charges to this account include the cost of replacing globes, burners, mantles, removing and resetting commercial lamp fixtures, re¬ pairing lamp fixtures, and performing like services. 41<>. Maintenance of Municipal Street Lighting System— (Class A). Charge to this account the cost of labor employed, materials and supplies consumed, and expenses incurred by the utility in making repairs to its municipal street lighting system. In the charges to this account include the cost of cleaning street ser¬ vices, cutting off services, recaulking columns, straightening, removing, and resetting posts, refitting columns, painting, cartage, repaving over openings made by work in connection with the maintenance of the muni¬ cipal street lighting system. 88 Operating Expense Accounts. 417. Maintenance of Private Street Lighting System —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility' in making repairs to its private street lighting system. In tlie charges to this account include the cost of cleaning street ser¬ vices, cutting off services, recaulking columns, straightening, removing, and resetting posts, refitting columns, painting, cartage, repaving over openings made by work in connection with the maintenance of the private street lighting system. 418. Maintenance of Other Utilization Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its other utilization equipment. In the charges to this account include the cost of repairs to gas engines and appliances and like equipment owned by the utility and installed on the premises of its consumers. F. COMMERCIAL DEPARTMENT OPERATING EXPENSE ACCOUNTS. 411). Operating Labor —(Classes A B and C). Charge to this account the cost of labor employed by the utility in the operation of its commercial department. In the charges to this account include a proper proportion of the sala¬ ries of those officers and their assistants who are in charge of the utility’s contract department; the salaries of those clerks that are assigned to give attention to bill questions, receive applications, etc., the pay of those employed in reading consumers’ meters; the pay of the office manager and his assistants, bookkeepers, and clerks engaged in keeping accounts with consumers; the pay of collection office employees, collectors, cashiers, and others engaged in collecting consumers’ accounts; and the cost of such labor as janitors, messengers, watchmen and others employed in the operation of the commercial department. 420. Operating Supplies and Expenses —(Classes A B and C). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by its employees in the operation of its com¬ mercial department. In the charges to this account include the cost of stationery, printing, postage, miscellaneous office supplies, flash lights, meter reading sheets, binders and like supplies, clock service, directories, drinking water, ice, laundry, light, heat, telephone, and bike expenses, and such expenses as aneals, carfares, and like necessary expenses incurred by the employees of the utility engaged in its commercial department. G. NEW BUSINESS DEPARTMENT OPERATING EXPENSE ACCOUNTS. New Business Salaries and Commissions —(Classes B and C). New Business Salaries —(Class A). Charge to this account the salaries of those employees of the utility that are engaged in the operation of its new business department. 421. so Operating Expense Accounts. In the charges to this account include the salaries of the new business manager, his assistants, and clerks; the salaries of convassers, solicitors, engineers who prepare estimates and give advice in connection with the solicitation of new business; the salaries of the advertising manager, his assistants, clerks, and demonstrators, and all other salaries paid to em¬ ployees engaged in the new business department. 422. New Business Commissions —(Class A). Charge to this account the amount of commissions paid by the utility in order to promote its natural gas business. The records supporting the entries to t'hiis account shall be so kept that the utility can furnish information as to the name of each person to whom a commission is paid and the amount paid to him. 423. New Business Supplies and Expenses —(Classes A B and C). Charge to this account the cost of supplies used and expenses incurred for the benefit of the utility by its employees in the operation of its new business department. In the charges to this account include the cost of stationery, printing, postage, miscellaneous office supplies, newspaper advertisements, printed circulars, posters, bulletins, booklets, and such expenses as train fares, carfares, hotel expenses, meals, and like necessary expenses incurred by the employees of the utility while engaged in promoting its natural gas business. H. GENERAL ADMINISTRATIVE EXPENSE ACCOUNTS. General Administrative Salaries —(Classes B and C). 424. - Salaries of General Officers —(Class A). Charge to this account the salaries of those officers employed by the utility whose jurisdiction extends over its entire business and v r hose services are not chargeable to any particular department. In the charges to this account include the salaries of the president, vice-president, general manager, secretary, treasurer, comptroller, general auditor, etc. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of each officer’s salary. 425. Salaries of General Office Clerks —(Class A). Charge to this account the salaries of those clerks who are employed by the utility in its general office and whose services are not directly Chargeable to any particular department. In the charges to this account include the salaries of the general office auditors, bookkeepers, cashiers, paymasters, stenographers and all other clerks connected with the general office. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of each clerk’s salary. 90 Operating Expense Accounts. General Administrative S General Administrative rp plies and Expenses —(Class Supplies —(Class Bj. C). 420. General Office Stationery and Printing —(Class A). Charge to this account the cost of stationery and printing used in the general office, except that which is used on work which is chargeable to particular departments. In the charges to this account include the cost of blank books, letter paper, envelopes, printed forms, postage, carbon paper, blotters, and like items. 427. Other General Office Supplies —(Class A). Charge to this account the cost of office supplies used in the general office, except those which are used on work which is chargeable to par¬ ti cu 1 ar departments. In the charges to this account include the cost of ink, inkstands, pens, penholders, pencils, paper clips and fasteners, pins, typewriter ribbons, waste baskets, and like items. General Officers’ and General Clerks’ Expenses —(Class B). 428. ‘ General Officers’ Expenses —(Class A). Charge to this account the amount of expenses incurred for the benefit of the utility by its officers whose jurisdiction extends over t'he entire business and whose services are not chargeable to any particular depart¬ ment. In the charges to this account (include traveling, hotel, and like nec¬ essary expenses incurred by the president, vice-presidents, general man¬ ager, secretary, treasurer, comptroller, general auditor, etc., while they are engaged in performing services for the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and nature of each officer's expenses. 429. General Office Clerks’ Expenses —(Class A). Charge to this account all expenses incurred for the benefit of the utility by clerks who are employed in its general office and whose services are not directly chargeable to any particular department. In the charges to this account include traveling, hotel, and like necessary expenses incurred by the general office auditors, bookkeepers, cashiers, paymasters, stenographers, and other clerks connected with the general office while they are engaged in performing services for the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and nature of each clerk’s expenses. 1)1 Operating Expense Accounts. Other General Administrative Expenses —(Class B). 430. General Law Expenses —(Class A). Charge to this account all general law expenses incurred by the utility. In the charges to this account include the pay and expenses of counsel, solicitors, and attorneys, their clerks and attendants, and the expenses of their offices if they are employed exclusively by the utility; fees paid to legal advisers not regular employees of the utility; cost of printing briefs, legal forms, testimony, reports, etc.; payments to arbitrators of disputed questions; payments of special fees, notarial fees, and witness fees not elsewhere provided for; expenses connected with taking depositions, court costs, and like expenses. Exclude from this account all expenses incurred in connection with tbe defense and settlement of damage claims. If the utility has a law department, it shall so keep the records sup¬ porting the entries to this account that it can furnish separate informa¬ tion as to the salaries, the supplies, and expenses thereof charged to this account. 431. General Office Rent —'(Class A). Charge to this account the amount of rent accrued during each account¬ ing period on property of others used by the utility for general office purposes. Charge also to this account the taxes borne by the utility on such property. v 432. Other General Office Expenses —(Class A). Charge to this account expenses not provided for elsewhere incurred for the benefit of the utility in connection with its general office. In the charges to this account include the cost of light, heat, telephone, telegrams, messengers, janitor services, newspapers, periodicals, ice, drinking water, laundry,, and like expenses. 433. Maintenance of General Office Structures —(Classes A B and C). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general office buildings. 434. Maintenance of General Office Equipment —(Classes A B and C). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general office equipment. V. In the charges to this account include repairs to desks, chairs, tables, filing cases, book cases and racks, movable safes, typewriters, adding and calculating machines, addressographs, drafting tables and instruments, engineering instruments and other appliances used in connection with the general offices. I. OTHER GENERAL EXPENSE ACCOUNTS. General Labors— (Class C). 435. Store Labor —(Classes A and B). Charge to this account the cost of labor employed by the utility in the operation of its store department. 02 Operating Expense Accounts. In the charges to this account include the cost of the labor of store¬ keepers. clerks, and employees engaged in unloading, storing, and other¬ wise handling materials and supplies in the storerooms and stock yards, collecting scrap material, etc. Exclude from this account maintenance labor. Stable and Garage Labor— (Class B). 430. Stable Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its stables. In the charges to this account include the cost of the labor of hostlers, drivers, teamsters, and others employed in the utility’s stables. Exclude from this account maintenance labor. 437. Garage Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its garages. In the charges to this account include the cost of the labor of chauf¬ feurs. their attendants, and other labor employed in the utility’s garages. Exclude from this account maintenance labor. Shop and Laboratory Labor —(Class B). 438. Shop Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its shops. In the charges to this account include the cost of the labor of the superintendent, timekeepers, machinists, blacksmiths, carpenters, and other shop employees. Exclude from this account maintenance labor. 439. Laboratory Labor —(Class A). Charge to this account the cost of labor employed by the utility in the operation of its laboratories. In the charges to this account include the cost of the labor of chemists and all other laboratory employees. Exclude from this account maintenance Labor. J 440. Telephone and Telegraph System Labor —(Classes A and B). Charge to this account the cost of labor employed by the utility in the operation of its general telephone and telegraph system properties. In the charges to this account include the cost of the labor of those employed in patrolling, inspecting, and testing the telephone and tele¬ graph lines and equipment; locating and clearing telephone and telegraph line trouble; protecting telephone and telegraph lines from fires, floods, etc.; and performing other services in the operation of the telephone and telegraph system. Exclude from this account maintenance labor. 93 Operating Expense Accounts. General Supplies and Expenses —(Class C). 441. Store Supplies and Expenses —'(Classes A and B). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its store department. In the charges to this account include the cost of stationery, printed forms, stock record hooks, and like supplies; the cost of lighting and heat¬ ing storerooms, water for fire protection and general use, rent paid for storerooms and storage yards; also traveling and other necessary expenses incurred hy employees of the utility while engaged in performing services in the operation of the store department. Stable and Garage Supplies and Expenses—(C lass B). 442. Stable Supplies and Expenses—(G lass A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its stables. In the charges to this account include the cost of water, feed, bedding, blankets, axle grease and other supplies; also the cost of shoeing horses and other incidental expenses. 443. Garage Supplies and Expenses —(Class A). * Charge to this account the cost, of supplies used and expenses incurred by the utility in the operation of its garages. In the charges to this account include the cost of gasoline, kerosene, engine oil, and other automobile supplies; the cost of lighting and heating the garage; water, telephone, etc., and all necessary expenses incurred by the employees of the utility while engaged in the operation of the garages. Snor and Laboratory Supplies and Expenses —(Class B). 444. Shop Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its shops. In the charges to this account include the cost of power, fuel, oil, smithing and other supplies; the cost of lighting and heating the shops, water for general use and fire protection, etc., also all necessary expenses incurred by the employees of the utility while engaged in the operation of the shops. 445. Laboratory Supplies and Expenses —(Class A). Charge to this account the cost of supplies used and expenses incurred by the utility in the operation of its laboratories. In the charges to this account include the cost of chemicals and other supplies; also the cost of light, heat, water, soap, towels, and like items. 94 Operating Expense Accounts. 44 G. Telephone and Telegraph System Supplies and Expenses —(Classes A and B). Charge to this account the cost of supplies used and expenses incurred for the benefit of -the utility by its employees in the operatiop of its general telephone and telegraph system. In the charges to this account include the cost of supplies used and such expenses as train fares, carfares, hotel expenses, meals and like necessary expenses of the superintendents and other employees of the utility while engaged in patrolling, inspecting, and testing its telephone and telegraph lines and equipment; locating and clearing telephone and telegraph line trouble; protecting its telephone and telegraph lines from fires, floods, etc.; performing all other services in the operation of its telephone system. 447. Natural Gas Franchise Requirements— (Classes A B and C). Charge to this account at schedule rates the natural gas supplied free by the utility to municipalities in compliance with the requirements of its franchise; also the cost of materials and supplies used and the amount of expenses incurred by it in paving and performing other service in compliance with such requirements and for which it is not reimbursed. Credit to- “458. Free Municipal Natural Gas Service” account the amounts charged to this account for natural gas supplied free to muni¬ cipalities. 448. Taxes —(Classes A B and C). Charge to this account and credit to “175. Taxes Accrued” account the amount of taxes payable by the utility that have accrued upon its prop¬ erty used in its natural gas operations, and the amount.of all other taxes that have accrued and are chargeable against its operating revenues. 449. Uncollectible Consumers’ Accounts —’(Classes A B and C). Charge to this account and credit to “181. Uncollectible Consumers’ Accounts Reserve” account the amount which, it is estimated, will, through gradual accumulation, be sufficient to provide for all accounts due from consumers, which prove impossible of collection because of the removal of such consumers beyond the jurisdiction of the State, the operation of the statute of limitations, discharge in bankruptcy, or for any other good and sufficient reason. If the utility does not carry a reserve, charge directly to this account and credit to “119. Accounts Receivable from Consumers” account the amounts of those consumers accounts, which were charged to “119. Ac¬ counts Receivable from Consumers” account during the current year and which proved to be uncollectible. Charge those accounts which were charged to “119. Accounts Receivable from Consumers” account prior to the current year and which proved to be uncollectible during the cur¬ rent year to “712. Uncollectible Consumers’ Accounts—Old Year” account. Operating Expense Accounts. Other General Expenses —(Class C). Public Service Commission Expense—(C lasses A and B). Charge to this account expenses incurred by the utility in its transac¬ tions with The Public Service Commission. In the charges to this account include fees and retainers and expenses of counsel, solicitors, attorneys, clerks, attendants, witnesses, and others whose services are secured for the defense or prosecution of those peti¬ tions presented to The Public Service Commission that affect the utility; the pay, traveling and other expenses of those specially employed or assigned to ascertain the value of property owned or used by the utility; the cost of stationery and printing and engineering supplies consumed; and other necessary expenses. Exclude from this account and charge to the appropriate specific operat¬ ing expense account those expenses, such as improvement of service and additional inspection, etc., which are made necessary by the rules, regula¬ tions, or orders of The Public Service Commission. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and nature of each charge to this account. Insurance and Pension Expense —(Class B). Injuries and Damages —(Class A). Charge to this account all expenses incurred by the utility for injuries to its employees and other persons and for damages to the property of others when such injuries and damages are caused by its natural gas operations. In the charges to this account include the amount of awards of courts or other lawful authority, such as workmen’s compensation boards, .etc.; of all allowances by the utility itself for damages to or destruction of property other than that owned by the utility, and for injuries and deaths of employees and other persons. In addition include such items of ex¬ pense as contributions to hospitals, transportation of injured persons, fees of physicians and surgeons, or, if regularly employed by the utility, a proportion of their salaries and expenses, nurses’ and hospital charges; cost of medical and surgical supplies, expenditures for funeral and burial services, the salaries of the utility's claim agents and adjusters and their assistants while engaged in settling damage, injury, or death claims which are caused by its natural gas operations, the compensation of the solicitor or counsel while engaged in attending to law suits which develop from such claims and all court costs connected therewith paid by the utility. If the utility carries a reserve for injuries and damages, charge to this account and credit to “ISO. Injuries and Damages Reserve” account the amount w'hic-h it is estimated, will, through gradual accumulation, be sufficient to provide for injuries and damages. Wihen payments are made for such injuries and damages, charge the amounts of them to “ISO. Injuries and Damages Reserve” account. 452. 1)G Operating Expense Accounts. Other Insurance —(Class A). Charge to this account all other insurance expenses incurred by the utility. In the charges to this account include premiums paid to insurance companies for fire, casualty, boiler, fidelity, burglar, and other insurance; and, in case the utility carries its own insurance risks, the salaries of those employed in its insurance department and all other expenses con¬ nected therewith. If the utility carries all or part of its own insurance risks, charge to this account and credit to “179. Insurance Reserve” account that amount which, it is estimated, will, through gradual accumulation, be sufficient to provide for all insurable losses to the property of the utility. The credit to “179. Insurance Reserve” account shall not include any provision for the expenses of the insurance department. If the utility carries its own insurance risks it shall so keep the records supporting the entries to this account that it .can furnish separate infor¬ mation as to the amount of salaries, supplies, and expenses charged hereto. 453. Pensions —(Class A). Charge to this account the amounts of pensions paid to retired em¬ ployees of the utility, or their heirs, and the salaries and other expenses of those employed in its pension department. The records supporting the entries to this account shall be so kept that the utility can furnish separate information as to the amount of salaries, supplies, and expenses charged hereto. 454. Other General Expense —(Classes A and B). Charge to this account all general expenses not provided for elsewhere. In the charges to this account include the cost of publishing annual reports, advertising notices of stockholders’ meetings, dividend notices, other corporate and financial notices; association dues, subscriptions, fees of transfer agents, registrars of stock and fiscal agents, and like expenses. General Adjustments —(Class C). 455. Inventory Adjustments —(Classes A and B). * Charge or credit to this account, when an actual inventory of materials and supplies is taken, the shortages or overages disclosed by such in¬ ventory as compared with the balance shown in “123. Materials and Supplies” account at the date of such inventory. If materials and supplies have been used in construction as well as in operation, a proper proportion of such shortages or overages may be debited or credited to “272. Other Expenditures During Construction” account. Inventories of materials and supplies shall be taken as least annually. 450. Discount on Materials and Supplies —(Classes A and B). Credit to this account all discounts which are received through prompt payments for materials and supplies consumed in operations and which cannot be applied directly to the invoice cost of such 'materials and sup¬ plies. 1)7 Operating Expense Accounts. 457. Utility's Natural Gas Used in Operations —(Classes A and B). Credit to this account the value, determined by schedule rates, of the natural gas that is produced by the utility and is consumed in its opera¬ tions. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount charged for natural gas used in each functional operation, such as production, transmission, etc. 458. Free Municipal Natural Gas Service —(Classes A and B). Credit to this account the amounts charged to “447. Natural Gas Franchise Requirements” account for natural gas supplied free by the utility to municipalities under the terms of its franchises. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the value and quantity of natural gas supplied free to each municipality for each use, such as street light¬ ing, etc. Maintenance of General Structures —(Classes B and C). 459. Maintenance of General Store Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general store buildings. 460. Maintenance of General Stable Structures —-(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its stables and buildings appurtenant to them. 401. Maintenance of General Garage Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its garages and buildings appurtenant to them. 4G2. Maintenance of General Shop Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general shop buildings. 4G3. Maintenance of General Laboratory Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its buildings used for laboratory purposes. 4G4. Maintenance of Other General Structures —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general structures not provided for in any of the preceding main¬ tenance accounts. I 98 Operating Expense Accounts. Maintenance of General Equipment —(Classes B and C). 405. Maintenance of General Store Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general store equipment. In the charges to this account include the cost of repairs to movable counters and shelves, carts, barrows, trucks, derricks, cranes, hoists, other (loading and unloading machinery, and other apparatus and appliances used in handling materials and supplies. 400. Maintenance of General Stable Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general stable equipment. In the charges to this account include the cost of repairs to harness, wagons, apparatus for shoeing horses and repairing harness and vehicles, and all appliances used in the stables. 407. Maintenance of General Garage Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general garage equipment. In the charges to this account include the cost of repairs to automo¬ biles, bicycles, motorcycles, and other appliances used in connection \tfith the garages. 408. Maintenance of General Shop Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general shop equipment. In the charges to this account include the cost of repairs to furnaces, boilers, engines, electric generators, other power apparatus provided for operating general shop machinery, machine tools, cranes, hoists, shafting, belting, smithing equipment other than that used for shoeing horses and repairing vehicles, and other appliances used in connection with the gen¬ eral shops. 40V). Maintenance of General Laboratory Equipment —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its general laboratory equipment. 470. Maintenance of General Telephone and 'Telegraph System —(Class A). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to its telephone and telegraph system. In the charges to this account include the cost of repairs to poles, cables, booths, instruments, and other equipment permanently assigned to the telephone and telegraph lines. 471. 99 Operating Expense Accounts. Maintenance of Other General Equipment —(Class A). Charge to this 'account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility in making repairs to that part of its general equipment that is not provided for in any of the preceding general maintenance accounts. The records supporting the entries to this account shall be so kept that the utility can furnish information as to each kind of equipment the cost of repairing which is charged to this account. 472. Depreciation—(C lasses A B and C). Charge to this account and credit to “102. Depreciation of Structures and Equipment Reserve” account that amount which it is estimated will, through regular application over the life of the structures and equipment of the utility’s natural gas system, provide an adequate reserve to cover the depreciation accrued upon such structures and equipment. 473. Extraordinary Depreciation —(Classes A B and C). Charge to this account and credit, as it applies, either to “132. Property Abandoned” or “133. Extraordinary Casualties” account that amount which will, through regular application, amortize those losses suffered by the utility either from the abandonment of its property or from extra¬ ordinary casualties. The utility shall not amortize any losses through this account until it obtains the permission of The Public Service Commission. 474. Amortization of Franchises, Patent Rights and Licenses —(Classes A B and C). Charge to this account and credit to “103. Amortization of Intangible Capital Reserve” account that amount which, through regular applica¬ tion, will provide at the expiration of the lives of the utility’s limited franchises, patent rights, and licenses, a reserve equal to their original money cost. 475. Joint Operating Expenses Transferred —(Classes A B and C). Credit to this account that portion, w'hich is chargeable to others, of the expenses incurred by the utility in operating any property used in natural gas service for the joint benefit of itself and others under an arrangement for apportioning such expenses on the basis of the relative amounts of benefit to the several participants. The amount credited to this account shall not include any allowance for profit or return upon the value of such property. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party with whom it enters into such an agreement; whether or not it controls, is controlled by or is in any way affiliated with eacli party; the terms of each agreement; the expenses incurred thereunder as they apply to each functional division of operating expenses in the detail provided in this classification, the portion thereof charged to each party, and the basis of the charge. 100 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. III. NON OPERATING REVENUE ACCOUNTS. Account Number. Name of Account. Class. Page. 500. Merchandise Sales . A B C 103 501. Jobbing Work Revenue . A B C 103 Rent Revenues . C 103 502. Rents from Lease of Natural Gas System Properties. A B 103 Other Rent Revenues . B 103 503. Rents from Lease of Other Properties ... A 103 504. Joint Facility Rent. A 104 Interest Revenues . B C 104 OOi ) • Interest from Investment Securities. A 104 500. Interest from Other Sources . A 101 507. Dividends on Investment Securities. A B C 104 Sinking and Other Reserve Fund Revenues ... C 105 50S. Sinking Fund Revenues . A B 105 509. Insurance and Other Reserve Fund Revenues A B 105 510. Profit from Operations of Others. A B c 105 511. Sub Utility Revenues . A B c 100 512. Oil Revenue . A B c 100 513. Gasoline Revenue . A B c 100 514. Other Non Operating Revenues . A B c 100 101 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. III. NON OPERATING REVENUE ACCOUNTS. * Account Number. Name of Account. Page. 500. Merchandise Sales . 103 501. Jobbing Work Revenue . 103 502. Rents from Lease of Natural Gas System Properties.... 103 503-504. Other Rent Revenues . 103 505-506. Interest Revenues . 104 507. Dividends on Investment Securities . 104 508. Sinking Fund Revenues . 105 509. Insurance and Other Reserve Fund Revenues. 105 510. Profit from Operations of Ojhers. 105 511. Sub Utility Revenues . 106 512. Oil Revenue .*. 106 513. Gasoline Revenue . 106 514. Other Non Operating Revenues . 106 102 INDEX TO INCOME ACCOUNTS V. PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. III. NON OPERATING REVENUE ACCOUNTS. Account Number. Name of Account. Page. 500. Merchandise Sales . .'. 103 501. Jobbing Work Revenue. 103 502-504. Rent Revenues . 103 505-500. Interest Revenues . 104 507. Dividends on Investment Securities . 104 508-500. Sinking and Other Reserve Fund Revenues. 105 510. Profit from Operations of Others. 105 511. Sub Utility Revenues . 106 512. Oil Revenue .\.. 100 513. Gasoline Revenue .. 100 514. Other Non Operating Revenues . 100 I -5 loa TEXT EXPLANATORY OF INCOME ACCOUNTS. III. NON OPERATING REVENUE ACCOUNTS. Credit to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts earned by the utility from sources other than the operation of its natural gas system. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. 500. Merchandise Sales —(Classes A B and C). Credit to this account the amount earned by the utility from its sales of such natural gas appliances as lamps, irons, stoves, heaters, etc. 501. Jobbing Work Revenue —(Classes A B and C). Credit to this account and charge to “121. Other Accounts Receivable*’ account the amount earned by the utility from such services performed for its consumers, or others, as piping premises, connecting and discon¬ necting house piping and natural gas fixtures, relocating piping and gas fitting and fixture work. Rent Revenues —(Class C). 502. Rents from Lease of Natural Gas System Properties —(Classes A and B). Credit to this account the rental earned by the utility from land, struct¬ ures, or equipment of the natural gas system which is owned by the utility or held by it under lease and which in turn is leased by it to others and is. during the period of such lease, subject to their exclusive control. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the purpose for which each item of natural gas system property is leased by the utility to others, the name of the lessees, the rental consideration, the duration of the lease, whether or not the utility controls, is controlled by. or is in any way affiliated with the lessees. Other Rent Revenues—(C lass B). 503. Rents from Lease of Other Properties —(Class A). Credit to this account the rental earned by the utility from land, struct¬ ures, or equipment not used in the natural gas system, which is owned by the utility or held by it under lease and which in turn is rented by the utility to others under lease or otherwise. The records supporting the entries to this account shall he so kept that the utility can furnish information as to the purpose for which each item of property is rented to others, to whom it is rented, the period for which it is rented, and the consideration. 104 Non Operating Revenue Accounts. 504. Joint Facility Rent —(Class A). Credit to this account the amount of joint facility rent which the utility receives from others on its natural gas system properties main¬ tained and operated by it for the joint benefit of itself and others under a joint agreement for sharing the expenses of operating such property on a basis of the relative amounts of benefits received by the participants. By joint facility rent on such property is meant the amount of rent, profit, or return thereon which t'he utility receives from others in addi¬ tion to their portion of the expenses of operating such properties. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party with whom it enters into such an agreement; whether or not it controls, is controlled by, or is in any way affiliated with each party; the terms of each agreement; the amount of rent received thereon and the calculation thereof. Interest Revenues —(Classes B and C). 505. Interest from Investment Securities —(Class A). Credit to this account the interest earned on all interest bearing secu¬ rities owned by the utility and carried in “106. Investment Securities” account. Interest is earned either when it has been actually collected or when it has accrued and the collection of it is reasonably assured either by past experience, guaranty, or otherwise. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each issuer of interest bearing securities held by the utility; whether or not such issuer controls, is controlled by, or is in any way affiliated with the utility; the dates of issue and maturity of such securities; the par value thereof, rate of interest, and the amount of interest earned on the securities of each issuer. 506. Interest from Other Sources—(C lass A). Credit to this account the amount of interest earned on all interest bearing assets of the utility except those provided for in “106. Invest¬ ment Securities” account. Interest is earned either when it has been actually collected or when it has accrued and the collection of it is reasonably assured either by past experience, guaranty, or otherwise. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of interest bearing debt, the interest on which is applicable to this account, owed to the utility; the name of each debtor and the age of his debt; the rate and amount of interest earned on such debt; whether or not such debtor con¬ trols, is controlled by, or is in any way affiliated with the utility. 507. Dividends on Investment Securities —(Classes A B and C). Credit to this account at their cash value all dividends received upon stocks held by the utility and carried in “106. Investment Securities” account. . Expense of Procuring Profits from Operations of Others 111 557. Sub Utility Expenses . Ill 558. Non Operating Taxes . Ill 559. Uncollectible Non Operating Revenues . Ill 560. Oil Expense . 112 561. Gasoline Expense . 112 562. Other Non Operating Expense . 112 1 '* I INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. Account Number. 550. 551. 552-553. <)o4 . 555. 550. 557. 558. 559. 500. 501 . 502. IV. NON OPERATING EXPENSE ACCOUNTS. I » , ' Name of Account. Merchandise Sales Expense . Jobbing Work Expense . Rent Expense . Interest Expense . Dividend Expense . Expense of Procuring Profits from Operations of Others Sub Utility Expenses . Non Operating Taxes . Uncollectible Non Operating Revenues .. Oil Expense .. Gasoline Expense . Other Non Operating Expense . ■ ,-T -, | Page. 110 110 110 110 111 111 111 111 111 112 112 112 no TEXT EXPLANATORY OF INCOME ACCOUNTS. IV. NON OPERATING EXPENSE ACCOUNTS. Charge to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed, the amounts of non operating expenses incurred by the utility. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. 550. Merchandise Sales Expense —(Classes A B and C). Charge to this account the cost to the utility of such natural gas appliances sold by it as lamps, irons, stoves, heaters, etc., also all expenses incurred by it in selling such appliances. 551: Jobbing Work Expense —(Classes A B and C). Charge to this account the cost of labor employed, materials and sup¬ plies consumed, and expenses incurred by the utility on jobbing work which it does for its consumers and others and for which it charges them. In the charges to this account include such work as piping premises, connecting and disconnecting house piping and natural gas fixtures and performing like services. Rent Expense —(Class C). 552. Lease of Natural Gas System Properties Expense —(Classes A and B). Charge to this account all expenses incurred by the utility in connec¬ tion with its natural gas system properties leased to others. In the charges to this account include commissions and fees; the cost of advertising and other expense of procuring tenants, drawing contracts and leases, collecting or enforcing payment of rent, ousting tenants, re¬ pairs borne by the utility, and all other necessary expenses except taxes. 553. Lease of Other Properties Expense —(Classes A and B). Charge to this account all expenses incurred by the utility in connec¬ tion with its properties, other than those used in the natural gas system leased to others. In the charges to this account include commissions and fees; cost of advertising and other expenses of procuring tenants, drawing contracts and leases, collecting or enforcing payment of rent, ousting tenants, re¬ pairs borne by the utility, and all other necessary expenses except taxes. r 554. Interest Expense —(Classes A B and C). Charge to this account all expenses incurred by the utility in procuring interest due on its investment securities, short term notes, deposits, and all other interest bearing assets except those carried in sinking and other reserve funds. In the charges to this account include the cost of collecting interest, investigating delay in and enforcing the payment of interest, and all other expenses chargeable against the interest revenue of the utility except taxes. Ill Non Operating Expense Accounts. 5.". Dividend Expense —(Classes A B and C). Charge to this account all expenses incurred by the utility in procuring dividends on the stocks of other corporations owned by it. In the charges to this account include the cost of investigating the affaiis of such corporations either for the purpose of detecting misman¬ agement, or inducing the declaration of dividends, or enforcing payment of dividends when declared; and all other necessary expenses except taxes assessed against such dividends. S' 550. Expense of Procuring Profits from Operations of Others —(Classes A B and C). Charge to this account all expenses incurred by the utility in procuring profits from the operations of others. In the charges to this account include the cost of negotiating contracts which entitle the utility to share in the profits from other’s operations, modifying or cancelling such contracts, collecting the utility’s portion of such profits, and all other necessary expenses incurred in acquiring these profits. 557. Sub Utility Expenses —(Classes A B and C). Charge to this account all expenses incurred by the utility in the opera¬ tion of that portion of its property that is used in public services other than natural gas. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of expenses incurred in the operation of each sub utility. 55S. Non Operating Taxes —(Classes A B and C). Charge to this account and credit to ”175. Taxes Accrued” account the amount of taxes payable by the utility that have accrued upon its prop¬ erty not used in the conduct of its natural gas operations, anti the amount of all other taxes that have accrued and are chargeable against its non operating revenues. 559. Uncollectible Non Operating Revenues —(Classes A B and C). Charge to this account and credit to the asset account, to which it was previously charged, the amount of any revenue that has been credited to any of the non operating revenue accounts during the current year and has proved to be uncollectible. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each debtor whose uncollectible account has been charged to this account; the reason and authority for making each charge to this account; the nature, age, and amount of each account chargeable hereto. 112 Non Operating Expense Accounts. 5C0. Oil Expense —(Glasses A B and C). Charge to this account all expenses incurred by the utility in the pro¬ duction of oil. 561. Gasoline Expense —(Classes A B and C). Charge to this account all expenses incurred by the utility in the pro¬ duction of gasoline. 562. Other Non Operating Expense —(Classes A B and C). Charge to this account all non operating expenses which are not pro¬ vided for in any of the other non operating expense accounts. 113 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. V. GROSS INCOME DEDUCTION ACCOUNTS. Account Number. Name of Account. Class. Page. Rent Deductions . C 116 600. Rent for Lease of Natural Gas System Prop- ERTIES . A B 116 601. Joint Facility Rent. A B 116 602. Other Rent Deductions. A B 116 Interest Deductions . C 117 603. Interest Accrued on Funded Debt. A B 117 604. Interest Accrued on Unfunded Debt. A B 117 Contractual Deductions from Income. C 117 605. Guaranties of Periodic Payments. A B 117 606. Loss on Operations of Others . A B 117 607. Other Contractual Deductions from Income A B ns Amortization Deductions . C ns 60S. Amortization of Debt Discount and Expense A B 118 609. Amortization of Intangible Landed Capital A B ns 610. Other Deductions from Income . A B C 119 611. Amortization of Premium on Debt . •A B C 119 S 114 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. V. GROSS INCOME DEDUCTION ACCOUNTS. Account Number. . Name of Account. Page. (iOO. Rent eor Lease of Natural Gas System Properties. 116 601. Joint Facility Rent. 116 602. Other Rent Deductions . 116 603. Interest Accrued on Funded Debt . 117 604. Interest Accrued on Unfunded Debt . 117 605. Guaranties of Periodic Payments . 117 606. Loss on Operations of Others . 117 607. Other Contractual Deductions from Income . 118 60S. Amortization of Debt Discount and Expense. 118 609. Amortization of Intangible Landed Capital. 118 610. Other Deductions from Income.'. 119 611 . Amortization of Premium on Debt. 119 * \ 115 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. V. GROSS INCOME DEDUCTION ACCOUNTS. Account Number. Name of Account. Page. 600-602. Rent Deductions . 116 603-604. Interest Deductions . 117 605-607. Contractual Deductions from Income . 117 608-609. Amortization Deductions . 118 610. Other Deductions from Income . 119 Oil. Amortization of Premium on Debt . 119 i ✓ no TEXT EXPLANATORY OF INCOME ACCOUNTS. V. GROSS INCOME DEDUCTION ACCOUNTS. Rent Deductions —(Class C). 000. Rent for Lease of Natural Gas System Properties —(Classes A and B). Charge to this account and credit to “176. Other Accrued Liabilities” account the amount that accrues during each accounting period on the natural gas system properties of others held and operated by the utility under a form of lease whereby it enjoys the exclusive use and. possession of isuch properties. The records supporting the entries to this account shall be so kept that the utility can furnish for each lease information as to the name of the lessor, the kind of property leased by him, and the utility function that it performs; the terms and the period of the lease and the amount of rent payable thereunder; whether such lessor controls, is controlled by, or is in any way affiliated with the utility; whether the rent is payable in cash, or is disbursed by the utility for the lessor as interest on funded debt, guaranteed dividends on stocks or otherwise. 601. Joint Facility Rent —(Classes A and B). Charge to this account the amount of joint facility rent which the utility pays to others on their natural gas system properties maintained and operated by them for the joint benefit of themselves and the utility under a joint agreement for sharing the expenses of operating such prop¬ erty on a basis of the relative amounts of benefit received by the par¬ ticipants. By joint facility rent on such property is meant the amount of rent, profit, or return thereon which the utility pays to others in addition to its portion of the expenses of operating such property. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party with whom it enters into such an agreement; whether or not the utility con¬ trols, is controlled by, or is in any way affiliated with each party; the terms of each agreement; the amount of rent paid thereon and how this amount was determined. G02. Other Rent Deductions —(Classes A and B). Charge to this account and credit to “376. Other Accrued Liabilities” account the amount of rent, not provided for elsewhere, that accrues during each accounting period on property of others used by the utility. Exclude from this account rent provided for in “379. Transmission System Rent”, 397. Distribution System Rent”, and “431. General Office Rent”. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each party to whom the rent chargeable to this account is paid; the kind of property rented from him, the purpose for Avhich it is used by the utility, and the amount of rent payable thereon; whether such party controls, is controlled by, or is in any way affiliated with the utility. 117 Gross Income Deduction Accounts. Interest Deductions —(Class C). 003. Interest Accrued on Funded Debt—(C lasses A and B). Charge to this account and credit to “173. Unmatured Interest Ac¬ crued on Funded Debt” account, the amount of interest that accrues during each accounting period upon the funded indebtedness of the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of interest accrued during each accounting period upon each class of bonds issued by the utility, each real estate mortgage, advances from affiliated com¬ panies for construction, equipment, additions and betterments, and each * item of other funded debt; the rate of interest and the principal of each of the above items of funded debt upon which each charge to this account was calculated; and the date upon which each item of such debt was incurred and the date when it is payable. A <‘04. Interest Accrued on Unfundp:d Debt —(Glasses A and B). Charge to this account and credit to “174. Unmatured Interest Accrued on Unfunded Debt” account, the amount of interest that accrues during each accounting period upon all unfunded debt of the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature of each item of unfunded debt the interest on which is chargeable to this account, the principal thereof, the rate of interest, the amount of interest accrued thereon during each accounting period, the name of each party to whom such debt is owed, and the dates on which it was incurred and is payable. Contractual Deductions from Income —(Class C). 605. Guaranties of Periodic Payments —(Classes A and B). Charge to this account as they become liabilities, the amounts of all obligations incurred by the utility under contracts in which it has guar¬ anteed to make annual or more frequent payments of money owed by others or to discharge other obligations assumed by them in case they default. The guaranties of such payments and other obligations become actual liabilities of the utility when those whose duty it is to make such payments or discharge such obligations fail to fulfill their duties. Exclude from this account all amounts for which the utility becomes liable as a result of its guaranties of the payment of the principal of the funded debt of others, and also all other obligations in the guaranteeing of which the utility has required sufficient security to protect it against any loss therefrom. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name and amount of each obligation which is chargeable to this account, the purpose for which such obligation was guaranteed by the utility, whether those, whose obligations are guaranteed, control, are controlled by or are in any way affiliated with the utility. 606. Loss on Operations of Others —(Classes A and B). Charge to this account the amount which the utility by contractual agreement is obliged to contribute to reimburse others for losses which result from their operations. / 118 Gross Income Deduction Accounts. The records supporting the entries to this account shall be so kept that the utility can furnish for each contract information as to the name of each party with whom the utility has entered into such a contract, the nature of his operations and the location of the property operated by him, the total amount of loss suffered from his operations, the portion of it charged to the utility, and the basis upon which such charge was made. COT. Other Contractual Deductions from Income —(Classes A and B). Charge to this account as they accrue and become liabilities of the utility, the amounts of all obligations which are incurred by the utility under contracts and which are not provided for elsewhere. This account includes only those items that are chargeable to income and does not include any liabilities for purchases. The records supporting the entries to this account shall be so kept fnat the utility can furnish information as to the nature and amount of each charge to this account. Amortization Deductions —(Class C). 008. Amortization of Debt Discount and Expense —(Classes A and B). Charge, at or before the close of each fiscal period, to this account and credit to “131. Unamortized Debt Discount and Expense” account that proportion of the unextinguished discount and expense of the utility which is applicable thereto. The charge for each fiscal period shall be such an amount that it will, through regular application during the period from the date of the sale to the date of maturity of the evidences of indebtedness upon which the discount and expense was incurred, completely extinguish such discount and expense. The utility may amortize its debt discount and expense sooner by charging all or part of it, either at the time of the issue of the debt to which it applies or later, to “Til. Other Deductions From Surplus” account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of debt discount and expense charged to this account during each fiscal period for each class of its funded debt, the date of issue and maturity of the debt to which such discount applies, and the method whereby charges to this account are determined. <>09. Amortization of Intangible Landed Capital —(Classes A and B). Charge to this account and credit to “103. Amortization of Intangible Capital Reserve” account that amount which, through application, will provide at the expiration of the lives of the utlity’s limited rights of way, leaseholds, etc., a reserve equal to their original money cost. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount charged to this account during each fiscal period for each item of intangible landed capital, the date when such intangible landed capital was acquired and the date when its life expires, and the method by which the charges to this account were determined. \ 11 !) Gross Income Deduction Accounts. OH). Other Deductions from Income—(C lasses A B and C). Charge to this account all those amounts that are deducted from the income of the utility and are not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature and amount of each different charge to this account and the name of the account that is credited when this account is charged. (ill. Amortization of Premium on Debt —(Classes A B and C). Credit at or before the dose of each fiscal period, to this account and charge to “177. Unamortized Premium on Debt” account such a proportion of the premium as is based upon the life of the debt upon which the premium was received from the date of its issue to the date of its ma¬ turity. If the utility elects not to extinguish its premium until the debt to which it is applicable is retired or matures, it shall credit to this account that portion of the premium that is applicable to the year in which the debt is retired or matures and it shall credit the balance of the premium to “702. Other Additions to Surplus” account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount of premium credited to this account during each fiscal period for each class of the utility's debt, and the dates of issue and maturity of each class of such debt. 120 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. NET INCOME AND NET INCOME APPROPRIATION ACCOUNTS. Account Number. Name of Account. Class. Page. m VI. NET INCOME OR LOSS ACCOUNT. G25. Profit and Loss—Current Year. A B C 123 VII. NET INCOME APPROPRIATION ACCOUNTS. Net Income Appropriated for Reserve Funds. .. C 123 650. Net Income Appropriated for Sinking Funds A B 123 651. Net Income Appropriated for Other Reserve . Funds . A B 124 652. Net Income Appropriated for Dividends. A B C 124 653. Net Income Appropriated for Investment in Fixed Capital . A B C 124 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. NET INCOME AND NET INCOME APPROPRIATION ACCOUNTS. Account Number. Name of Account. Page. VI. NET INCOME OR LOSS ACCOUNT. 625. Profit and Loss—Current Year . 123 VII. NET INCOME APPROPRIATION ACCOUNTS. 650. Net Income Appropriated for Sinking Funds. 123 651. Net Income Appropriated for Other Reserve Funds . 124 652. Net Income Appropriated for Dividends. 124 653. Net Income Appropriated for Investment in Fixed Capital 124 INDEX TO INCOME ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. NET INCOME AND NET INCOME APPROPRIATION ACCOUNTS. Account Number. Name of Account. Page. VI. NET INCOME OR LOSS ACCOUNT. 025. Profit and Loss—Current Year . 123 VII. NET INCOME APPROPRIATION ACCOUNTS. 050-051. Net Income Appropriated for Reserve Funds. 123 052. Net Income Appropriated for Dividends. 124 053. Net Income Appropriated tor Investment in Fixed Capital 124 123 TEXT EXPLANATORY OF INCOME ACCOUNTS. VI. NET INCOME OR LOSS ACCOUNT. t (525. Profit and Loss— Current Year —(Classes A B and C). At the close of each fiscal period the utility shall transfer to this account all of the balances in its operating revenue and expense accounts, non operating revenue and expense accounts, and gross income deduction accounts. The result obtained by assembling in this account all of these credit and debit balances is the net income or net loss of the utility for the fiscal year to which they pertain. If it is the practice of the utility to appropriate any of its net income for sinking funds and other reserves, or for dividends, or for investment in fixed capital, it shall charge the amounts of such appropriations to this account. After these charges .have been made, it shall close this account by transferring the balance to “1ST. Corporate Surplus Unappro¬ priated”’ account. If it does not make any such appropriations it shali transfer the net income or loss to “1ST. Corporate Surplus Unappro¬ priated" account. If the utility is a sole proprietorship or a partnership it shall close this account by .the transfer of the proper share in the profit or loss to the appropriate proprietors capital accounts. This account shall be closed at the end of each fiscal period. VII. NET INCOME APPROPRIATION ACCOUNTS. Charge to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts which the utility appropriates from its net income during each fiscal period for sinking and other reserve funds, dividends, or investment in fixed capital. At the end of each fiscal period it shall close all of these accounts into “025. Profit and Loss—Current Year” account. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to carry the account title prefixed thereto. Net Income Appropriated for Reserve Funds —(Class C). 050. Net Income Appropriated for Sinking Funds —(Classes A and B). Charge to this account and credit to “185. Surplus Reserved for Sink¬ ing Funds” account the amounts that are definitely set aside from the net income of the utility and invested or placed in the care of its trustees or other fiscal agents for the purpose of providing funds for the redemp¬ tion of funded debt obligations that have been issued or assumed by it subject to sinking fund requirements. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each sinking fund and the amount appropriated to it during each year from the ner income of the utility, and the basis upon which appropriations are made for each fund. 124 Net Income Appropriation Accounts. del. Net Income Appropriated for Other Reserve Funds —(Classes A and B). Charge to this account and credit to “180. Other Surplus Reserves’* account the amounts set aside from the net income of the utility and held in reserve for purposes not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name and purpose of each reserve for which charges are made to this account, the amount appropriated to it during each fiscal period from the net income of the utility, and the basis upon which such appropriation is made. 052. Net Income Appropriated for Dividends —(Classes A B and C). Charge to this account and credit to “170. Dividends Payable” account the amount of dividends declared from tthe net income of the utility upon the actually outstanding capital stock that lias been issued or assumed by it. This account shall not include charges for dividends on any capital stock, issued or assumed by the utility, which is owned by it and either held in its treasury, special deposits, sinking or other reserve funds, or pledged as collateral. i The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each class of stock the dividends declared on which were charged to this account, the par value of each class of such stock and the rate and amount of dividends declared thereon, the resolution by which each dividend was declared, the date of its declaration and the date of its payment, whether it is to be paid in cash, stock or otherwise. 053. Net Income Appropriated for Investment in Fixed Capital —(Classes A B and C). Charge to this account and credit to “183. Surplus Invested in Fixed Capital After January 1, 1919” account the amounts that are definitely set aside from the net income of the utility and actually expended for the acquisition of land and completed structures and equipment, or for the construction of structures and equipment, or for any additions and betterments thereto. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the specific items of fixed capital acquired or constructed under each appropriation and the amount expended thereunder. 125 INDEX TO SURPLUS ACCOUNTS PRESCRIBED FOR CLASSES A B AND C NATURAL GAS UTILITIES. SURPLUS CREDIT AND SURPLUS DEBIT ACCOUNTS. Account Number. Name of Account. Class. Page. I. SURPLUS CREDIT ACCOUNTS. TOO. Additions to Surplus . Uncollectible Consumers’ Accounts Recov¬ ered . A C B 12S 128 701. Uncollectible Non Operating Revenues Recov¬ ered . A B 128 702. Other Additions to Surplus . A B 128 II. SURPLUS DEBIT ACCOUNTS. Surplus Appropriated for Reserves . C 129 703. Surplus Appropriated for Sinking Funds .... A B 129 704. Surplus Appropriated for Other Reserve Funds . A B 129 705. Surplus Appropriated for Dividends . A B C 129 706. Surplus Appropriated for Investment in Fixed Capital . A B C 130 Surplus Appropriated for Other Purposes. C 130 707. Gifts to Affiliated Companies . A B 130 708. Expenses Unprovided for Elsewhere . A B 130 700. Aatortization Unprovided for Elsewhere .... A B 131 710. Other Appropriations of Surplus . A B 131 711. Other Deductions from Surplus . A B C 131 712. Uncollectible Consumers’ Accounts—Old Year A B C 131 713. Uncollectible Non Operating Revenues—Old Year . A B c 132 12G INDEX TO SURPLUS ACCOUNTS PRESCRIBED FOR “CLASS B” NATURAL GAS UTILITIES. SURPLUS CREDIT AND SURPLUS DEBIT ACCOUNTS. Account Number. Name of Account. Page. I. SURPLUS CREDIT ACCOUNTS. 700. Uncollectible Consumers’ Accounts Recovered. 701. Uncollectible Non Operating Revenues Recovered.. 702. Other Additions to Surplus . 128 128 128 II. SURPLUS DEBIT ACCOUNTS. 703. Surplus Appropriated for Sinking Funds . 129 704. Surplus Appropriated for Other Reserve Funds. 12!) 70.7. Surplus Appropriated for Dividends. 129 700. Surplus Appropriated for Investment in Fixed Capital . . 130 707. Gifts to Affiliated Companies. 130 708. Expenses Unprovided for Elsewhere. 130 709. Amortization Unprovided for Elsewhere. 131 710. Other Appropriations of Surplus . 131 711. Other Deductions from Surplus. 131 712. Uncollectible Consumers’ Accounts—Old Year. 131 713. Uncollectible Non Operating Revenues—Old Year. 132 V 127 INDEX TO SURPLUS ACCOUNTS PRESCRIBED FOR “CLASS C” NATURAL GAS UTILITIES. SURPLUS CREDIT AND SURPLUS DEBIT ACCOUNTS. Account Number. Name of Account. Page. » I. SURPLUS CREDIT ACCOUNTS. 700-702. Additions to Surplus. 12S II. SURPLUS DEBIT ACCOUNTS. 703-704. Surplus Appropriated for Reserves . 705. Surplus Appropriated for Dividends. 70(5. Surplus Appropriated for Investment in Fixed Capital .. 707-710. Surplus Appropriated for Other Purposes . 711. Other Deductions from Surplus .*.. 712. Uncollectible Consumers’ Accounts—Old Year. 713. Uncollectible Non Operating Revenues—Old Year. 120 129 130 130 131 131 132 i 12S TEXT EXPLANATORY OF SURPLUS ACCOUNTS. I. SURPLUS CREDIT ACCOUNTS. Credit to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts, except the amount of profit transferred from “625. Profit and Loss— Current Year” account, that represent additions to the surplus of the utility during each fiscal period. At the end of each fiscal period the utility shall close all of these accounts into “1ST. Corporate Surplus Unappropriated” account. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. Additions to Surplus —(Class C). 700. Uncollectible Consumers’ Accounts Recovered— (Classes A and B). Credit to this account all amounts collected by the utility on those accounts with consumers which have been charged during previous years either to “449. Uncollectible Consumers’ Accounts” or “712. Uncol¬ lectible Consumers’ Accounts—Old Year” account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each debtor the collection of whose debt is credited to this account, the amount collected from each debtor, the date when the debt was incurred, and the date when it was charged off as uncollectible. 701. Uncollectible Non Operating Revenues Recovered —(Classes A and B). Credit to this account all amounts collected by the utility on those accounts which result from the non operating activities of the utility and which have been charged during previous years to “559. Uncollecti¬ ble Non Operating Revenues” account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each debtor the collection of whose debt is credited to this account, the amount collected from each debtor, the date when such debt was incurred, and the date when it was charged off as uncollectible. I 702. Other Additions to Surplus —(Classes A and B). Credit to this account all those amounts not provided for elsewhere that are added to the surplus of the utility and are not assignable to its income. In the credits to this account include additions due to the adjustment of errors that occurred in previous accounting periods; profits derived from the sales of property not used by the utility in the conduct of its natural gas operations; profits that result from adjustments due to the recording on the books of the utility at par value securities issued or assumed by it and later reacquired at a cost below par value; profits that result from 129 Surplus Debit Accounts. the resale of such securities; the unaniortized portion of the premium on those items of the utility’s funded debt that are retired before their maturity; premium on capital stock at the time the stock in which it was realized is retired; and like additions. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature and amount of each different credit to this account. II. SURPLUS DEBIT ACCOUNTS. Charge to the appropriate numbered accounts listed under this caption or to the appropriate subcaptions under which such numbered accounts are listed the amounts, except the amount of loss transferred from “625. Profit and Loss—Current Year” account, that represent subtractions from surplus of the utility during each fiscal period. At the end of each fiscal period the utility shall close all of these accounts into “187. Corporate Surplus Unappropriated” account. These subcaptions as well as the numbered accounts listed under them are account titles. The letter, or letters, after each subcaption or num¬ bered account indicates the class of the utility that is required to keep the account title prefixed thereto. Surplus Appropriated for Reserves —(Glass C). 703. Surplus Appropriated for Sinking Funds —(Classes A and B). Charge to this account and credit to “185. Surplus Reserved for Sink¬ ing Funds” account, the amounts that are definitely set aside from the surplus of the utility and invested or placed in the care of its trustees, or other fiscal agents, for the purpose of providing funds for the redemp¬ tion of funded debt obligations that have been issued, or assumed, by it subject to sinking fund requirements. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each sinking fund and the amount appropriated to it during each year from the surplus of the utility, and the basis upon which such appropriation is made. 704. Surplus Appropriated for Other Reserve Funds —(Classes A and B). Charge to this account and credit to “186. Other Surplus Reserves” account, the amounts that are set aside from the surplus of the utility and held in reserve for purposes not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name and purpose of each reserve for which charges are made to this account, the amount appropri¬ ated to it during each fiscal period from the surplus of the utility, and the basis upon which such appropriation is made. 705. Surplus Appropriated for Dividends —(Classes A B and C). Charge to this account and credit to “170. Dividends Payable” account the amount of dividends declared from the surplus of the utility upon all actually outstanding capital stock issued or assumed by it. 9 130 Surplus Debit Accounts. This account shall not include charges for dividends on any capital stock, issued or assumed by the utility, which is owned by it and either held in its treasury, special deposits, sinking or other reserve funds, or pledged as collateral. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each class of stock, the dividends declared on which were charged to this account, the par value of each class of such stock and the rate and amount of dividends declared thereon, the resolution oy which each dividend was declared, the date of its declaration and the date of its payment, and whether it is to be paid in cash, stock or otherwise. TOG. Surplus Appropriated for Investment in Fixed Capital —(Classes A R and C). Charge to this account and credit to “183. Surplus Invested in Fixed Capital After January 1, 1919” account the amounts that are definitely set aside from the surplus of the utility and actually expended for the acquisition of land and completed structures and equipment, or for the construction of new structures and the purchase of new equipment, or for additions to land, or for additions and betterments to structures and equipment. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the specific items of fixed capital acquired or constructed under each appropriation and the amount ex¬ pended thereunder. Surplus Appropriated for Other Purposes —(Class C). 707. Gifts to Affiliated Companies —(Classes A and B). Charge to this account the amounts which the utility gives, without expectation of reimbursement, to those natural gas utilities, other utili¬ ties, and non utilities that are affiliated with it in any way. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each affiliated com¬ pany to which, the utility gives such gifts, and the amount and purpose of each gift. 70S. Expenses Unprovided for Elsewhere —-(Classes A and B). Charge to this account all expenses incurred by the utility that are not applicable to either its operating or non-operating expense accounts. In the charges to this account include such items as fines levied on the utility for violations of law, misfeasance, non-feasance, etc.; fines paid by it that are imposed on its directors, other officers, or employees; dona¬ tions made to churches and others; and like expenses incurred by the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature and amount of each different charge to this account. VM Surplus Debit Accounts. 709. Amortization Unprovided for Elsewhere —(Classes A and B). Charge to this account and credit as it is applicable to either “1.32. Property Abandoned” or “133. Extraordinary Casualties” account that portion of the loss on property abandoned by the utility or destroyed by extraordinary casualties, which The Public Service Commission has directed the utility to amortize by charges to its surplus. Charge also to this account and credit as they are applicable either to “200. Organization” or “203. Other Intangible Capital” account the amounts necessary to provide for the amortization of those items of intangible fixed capital which are being amortized voluntarily by the utility. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amounts charged to this account for each of the above items. 710. Other Appropriations of Surplus —(Classes A and B). Charge to this account all appropriations of surplus made by the utility and not provided for elsewhere. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the amount and purpose of each different appropriation made during each year. 711. Other Deductions from Surplus —(Classes A B and C). Charge to this account all those amounts not provided for elsewhere that are deducted from the surplus of the utility and are not chargeable to its income. In the charges to this account include deductions due to the adjustment of errors that occurred in previous accounting periods; losses on sales of property not used by the utility in the conduct of its natural gas operations; losses that result from adjustment due to recording on the books of the utility at par value securities issued or assumed by it and later reacquired at a cost above par value; the losses that result from the resale of such securities, the unamortized portion of the discount and expense of those items of the utility’s funded debt that are retired before their maturity; and like deductions. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the nature and amount of each different charge to this account. 712. Uncollectible Consumers’ Accounts—Old Year —(Classes A B and C). Charge to this account and credit to “119. Accounts Receivable From Consumers” account the amounts of those consumers accounts which were charged to “119. Accounts Receivable From Consumers” account prior to the current year and which prove impossible of collection because of the removal of such consumers beyond the jurisdiction of the State, the operation of the statute of limitation, discharge in bankruptcy, or for any other good and sufficient reason. If the utility carries a reserve, charge the amounts of such uncollectible account to “181. Uncollectible Consumers’ Accounts Reserve” account. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each debtor whose uncollectible account has been charged to this account, the reason and authority for making such charge, and the age and amount of each account charged hereto. 132 Surplus Debit Accounts. 713. Uncollectible Non Operating Revenues—Old Year —(Classes A B and C). Charge to this account and credit to the asset account to which it was previously charged, the amount of any revenue that had been credited to any of the non operating revenue accounts prior to the current year and has proved to be uncollectible during the current year. The records supporting the entries to this account shall be so kept that the utility can furnish information as to the name of each debtor whose uncollectible account has been charged to this account; the reason and authority for making each charge to this account; the nature, age and amount of each account chargeable hereto. > /•\ i i m APPENDIX. BALANCE SHEET ACCOUNTS PRESCRIBED FOR “CLASS D” NATURAL GAS UTILITIES. The following Balance Sheet Accounts are prescribed for “Class D“ utilities. Some of these accounts are the same in title and substance as certain balance sheet accounts prescribed for “Class A’’, “Class B”, and “Class C” utilities. Others are summary accounts of certain other “Class A”, “Class B”, and “Class C” balance sheet accounts. Where a balance sheet account prescribed for a “Class D” utility is identical in the title and substance with one prescribed for the other classes of utilities the number of the account with which it is identical is referred 7 to under the title of the “Class D” account. In like manner where the balance sheet account prescribed for a “Class D” utility is a summary account of certain accounts prescribed for the other classes of utilities the numbers of each of the accounts of which the “Class D” account is a summary account is referred to under the title of the “Class D” account. By consulting the accounts referred to by number under any of its balance sheet accounts a “Class D” utility can determine the items that it should charge or credit to such account. ASSET ACCOUNTS. 1 . Fixed Capital Installed Prior to January 1, 1919. The content of this account is described in account number 100. 2. Fixed Capital Installed Since December 31, 1918. The content of this account is described in account number 101. 3. Depreciation of Structures and Equipment Reserve. The content of this account is described in account number 102. 4. Amortization of Intangible Capital Reserve. The content of this account is described in account number 103. 5. Property Used in Other Public Services. The content of this account is described in account number 107. 6. Other Investments. The content of this account is described in account numbers 100, 10S and 109. ) 7. Reacquired Securities. The content of this account is described in account numbers 110 and 111. S. Fund Accounts. The content of this account is described in account numbers 112 and 113 9. Cash. The content of this account is described in account number 117. 10. Notes Receivable. The content of this account is described in account number 118. m Balance Sheet Accounts. 11. Accounts Receivable. The content of this account is described in account numbers 119, 120 and 121. 12. Materials and Supplies. The content of this account is described in account number 12.2. 13. Other Current Assets. The content of this account is described in account number 124. 14. Prepaid Accounts. The content of this account is described in account numbers 120, 127, 12S and 129. 15. Deferred Charge Accounts. The content of this account is described in account numbers 130, 131, 132, 133, 124 and 135. LIABILITY ACCOUNTS. 10. Capital Stock. The content of this account is described in account number 150. 17. Non Corporate Proprietorship. The content of this account is described in account numbers 154 and 155. IS. Bonds. The content of this account is described in account number 156. 19. Other Funded Debt. The content of this account is described in account numbers 157, 138 and 159. 20. Notes Payable. The content of this account is described in account number 163. 21. Accounts Payable. The content of this account is described in account numbers 164, 165, 166, 167, 168, 169, 170 and 171. 22. Other Current Liabilities. The content of this account is described in account number 172. 23. Taxes Accrued. The content of this account is described in account number 175. 24. Other Accrued Liabilities. The content of this account is described in account numbers 173, 174 and 176. 25. Deferred Credit Accounts. The content of this account is described in account numbers 177 and 178. » 26. Reserve Accounts. The content of this account is described in account numbers 179, ISO, 1 S1 and 182. 27. Corporate Surplus. The content of this account is described in account number 187. 135 INCOME ACCOUNTS PRESCRIBED FOR “CLASS D” NATURAL GAS UTILITIES. The following Income Accounts are prescribed for “Class D” utilities. Some of these accounts are the same in title and substance as certain “Glass A” income accounts. Others are summary accounts of certain other “Class A” income accounts. Where an income account prescribed for a “Class D” utility is identical » in title and substance with one prescribed for “Class A” utilities the num¬ ber of the “Class A” account with which it is identical is referred to under the title of the “Class D” account. In like manner where an income account prescribed for a “Class D” utility is a summary account of certain “Class A” income accounts the number of each of the “Class A” accounts of which the “Class D” account is a summary account is referred to under ? the title of the “Class D” account. By consulting the “Class A” accounts referred to by number under any of its income accounts, a “Class D” utility can determine the items that it should charge or credit to such account. 0 I. OPERATING REVENUE ACCOUNTS. 30. Private Sales. The content of this account is described in account numbers 300, 301, 302, 303, 307, 30S, 300, 310 and 311. 31. Public Sales. The content of this account is described in account numbers 306, 314 and 315. 32. Sales to Other Natural Gas Utilities for Resale. The content of this account is described in account numbers 304, 305, 312 and 313. 33. Consumers Discounts Forfeited and Penalties Imposed. The content of this account is described in account number 316. 34. Allowances to Consumers. The content of this account is described in account number 317. II. OPERATING EXPENSE ACCOUNTS. 35. Production System Labor. The content of this account is described in account numbers 350, 551, 352 and 353. 36. Production System Supplies and Expenses. The content of this account is described in account numbers 354, 35u, 356, 357 and 358. 37. Maintenance of Production System Properties. The content of this account is described in account numbers 359, 360, 361, 362, 363, 364, 365, 366 and 367. 136 38. 39. 40. 41 42. 43. 44. 45. 40. 47. 48. 49. 50. 51. 52 . Income Accounts. Natural Gas Purchased for Resale. The content of this account is described in account numbers 36S and 309. Transmission and Distribution System Labor. The content of this account is described in account numbers 370, 371, 372, 373, 374, 388, 389, 390, 391, 392, 393, 407, 408, 409 and 410. Transmission and Distribution System Supplies and Expenses. The content of this account is described in account numbers 375, 370, 377, 378, 379, 380, 394, 395, 396, 397, 398, 411, 412, 413 and 414. Maintenance of Transmission and Distribution System Properties. The content of this account is described in account numbers 381, 382, 383, 384, 3S5, 386, 387, 399, 400, 401, 402, 403, 404, 405, 406, 415, 416, 417 and 418. Salaries of General Officers. The content of this account is described in account number 424. Salaries of General Clerks. The content of tnis account is described in account number 425. Salaries and Wages of Other General Employees. The content of this account is described in account numbers 419, 421, 422, 435, 436, 437, 438, 439 and 440. General Supplies and Expenses. The content of this account is described in account numbers 420, 423, 426, 427, 428, 429, 430, 431, 432, 441, 442, 443, 444, 445, 446, 450, 451, 452, 4o3, 4o4, 455, 4o6, 4 »h, 458 and 4io. Natural Gas Franchise Requirements. The content of this account is described in account number 447. Taxes. The content of this account is described in account number 448. Uncollectible Consumers’ Accounts. The content of this account is described in account number 449. Maintenance of General Properties. ( The content of this account is described in account numbers 433, 434, 459, 460, 461', 462, 463, 464, 465, 466, 467, 468, 469, 470 and 471. Depreciation. The content of this account is described in account number 472. Extraordinary Depreciation. The content of this account is described in account number 473. Amortization of Franchises, Patent Rights and Licenses. The content of this account is described in account number 474. 137 Income and Surplus Accounts. 53. III. NON OPERATING REVENUE AND EXPENSE ACCOUNTS. Non Operating Revenue. The content of this account is described in account numbers 500 to 514 inclusive. 54. Non Operating Expense. The content of this account is described in account numbers 550 to 562 inclusive. $ IV. GROSS INCOME DEDUCTION ACCOUNTS. 5o • Interest Deductions. The content of this account is described in account numbers 603 and 604. ? 50. Other Deductions from Income. The content of this account is described in account number^ 600, 601, 602, 605, 606, 607, 608, 609, 610 and 611. 57. V. NET INCOME OR LOSS ACCOUNT. Profit and Loss—Current Year. The content of this account is described in account number 625. 58. SURPLUS ACCOUNTS PRESCRIBED FOR “CLASS I>” NATURAL GAS UTILITIES. The following surplus accounts are prescribed for “Class D” utilities. Each of these accounts is a summary account of certain “Class A" surplus account*. Under the title of each “Class D’’ surplus account appear the numbers of the “Class A” accounts of which the “Class D“ account is a summary account. By consulting the “Class A” accounts referred to by number under any of its surplus accounts, a “Class D” utility can determine the items that it should charge or credit to such account. Additions to Surplus. * The content of this account is described in account numbers 700 to 702 inclusive. 59. Appropriations of Surplus. 1 The content of this account is described in account numbers 703 to 710 inclusive. 60. Other Surplus Charges. The content of this account is described in account numbers 711 to 713 inclusive.