HF DOCUMENTS DEPT. GIFT OF JAN 88 1914 I CIRCULAR No. 34A OF MARYLAND \\ Regulations Governing the Appraisal, Dis- tribution and Apportionment of Fixed Capital of Water Companies ISSUED BY ORDER OF THE COMMISSION .B, 1911 BALTIMORE 1911 REGULATIONS ISSUED BY THE PUBLIC SERVICE COMMISSION OF MARYLAND GOVERNING THE APPRAISAL, DISTRIBUTION AND APPORTION- MENT OF FIXED CAPITAL OF WATER COM- PANIES. Issued under order of the Commission of June 19, 1911. Every Water Company shall make a distribution of its Fixed Capital, as of June 30, 1911, and shall apportion the same according to the following classification hereby prescribed for expenditures for Plant, Equipment and other property of Water Companies, and shall make report to the Public Service Commission of such distribution of its Fixed Capital not later than September 30, 1911. In the following definitions of accounts the numbers prefixed to the titles are inserted solely for convenience of reference and are no part of the titles or definitions. Definitions of Fixed Capital Accounts. 1 FIXED CAPITAL JUNE 30, 1911. Charge to this account all the Fixed Capital (that is, the total cost of all land, plant, equipment, apparatus, etc., other than materials and supplies, hand and other small tools) of the accounting person or corporation as such capital stood at the close of June 30, 1911. Such charges shall be made at the figures at which such capital was carried on the books of the said person or corporation on that date. When any capital in- cluded in such account is retired from service, the amount at which it is charged therein shall be credited to this account, and the amount originally charged to capital, less any salvage that may occur, shall be concurrently charged to the account "He- serve for Depreciation" (or equivalent account carried on the books on June 30, 1911), unless there was carried on the books at that date a reserve to cover retirements of capital from serv- ice, in which case the said concurrent charge shall be made to 274646 4 such retirement account. If the amount at which said capital in service on June 30, 1911 (and subsequently retired from service) was included in the said account is not disclosed on the books and records of the accounting person or corporation and is not within the knowledge of such person or corporation or officers or other employes thereof, it shall be estimated and such estimated amount shall be treated as is above directed for the actual amount, the fact of estimation being stated in the entry. THE FOLLOWING CAPITAL ACCOUNTS ARE PRESCRIBED FOB TRANSACTIONS SUBSEQUENT TO JUNE 30, 1911: 11 ORGANIZATION. Charge to this account the cost of effecting organization and such capital exploit expenses as may be properly connected therewith. . This includes cost of preparing and distributing prospectuses, cost of soliciting subscriptions for stock (but not for loans nor for the purchase of bonds or other evidences of indebtedness) cash fees paid to promoters and the actual cash value at the time of organization of securities paid to promoters for their services in organizing the enterprise, counsel fees, cost of preparing and issuing certificates of stock and cost of procuring certificates of necessity from state authorities and other like costs. This account shall not include any discounts upon stocks or other securities issued, nor shall it include any cost incident to negotiating loans or selling bonds or other evidences of indebt- edness. 12 ROYALTIES, FRANCHISES AND LICENSES. Charge to this account the cost of royalties or licenses paid to licensors, and payments to city, town or state (exclusive of taxes) for franchises. If any such franchise has a life of not more than one year after the date when it is placed in service, it shall not be charged to this account, but to the appropriate accounts in "Operating Expenses/' and in "Prepayments" if extending beyond the fiscal year. Water Supply Collecting System Properties. In cases of companies obtaining water from points remote from the city, the collection system is to be considered as in- cluding all water system fixtures, appliances and structures utilized in collecting water and for conveying it from the place of its collection to the purification or pumping system, or if a purely gravity system, then to a point in or out of the city at which the company begins to distribute water to customers. In the case of companies obtaining water from a source located in or near the city, or near to private customers, the collecting sys- tem is here considered as including all water supply fixtures, appliances and structures connecting the sources of supply with the purification works or pumping works, whichever may be situated nearest the source of supply. In both cases the collect- ing system is here considered as including all land upon which the structures, appliances and fixtures mentioned are located, or the right of easement in such land ; the cost of all water diversion rights (as distinguished from water power rights) in perpetuity or terminable ; and the cost of all buildings and other improvements upon such land, and the cost of all operating equipment used in conjunction therewith. 13 WATEK COLLECTING SYSTEM. Charge to this account the cost of all land, structures and equipment appurtenant to the collecting system of the company, as described above. This account may, if the accounting company desires, be fur- ther classified under the following headings, which shall be the titles of sub-accounts set up hereunder: 1. Water Diversion Rights. This includes the cost of all water diversion rights (as distin- guished from water power rights), meaning thereby the cost of 6 acquiring from riparian land owners the right to divert for supply purposes the waters of any stream, and from neighbor- ing land owners the right to draw from ground water sources of supply ; also compensation and costs in connection therewith paid for abating, modifying or abandoning causes of allowable pollution of streams and ground waters used for supply; whether such rights are acquired or compensated for in perpe- tuity or for a definite term of more than one year. 2. Reservations. This includes the cost of all land for reservations along sources of supply, and also the cost of all completed buildings erected thereon and in connection therewith, as well as all equip- ment, etc. 3. Impounding Dams and Reservoirs. This includes the cost of the land and all completed struc- tures thereon used for impounding water for supply purposes at the sources of supply. 4. Lake and River Cribs. This includes the cost of all land, including lake or river bed, and all completed structures thereon used for collecting waters for supply purposes. 5. Springs and Wells. This includes the cost of all land and all completed struc- tures thereon, used for collecting water from springs and of the wells for obtaining ground waters, including the curbing or casing of wells, but not including any equipment for pumping water at wells. 6. Infiltration Galleries and Tunnels. This includes the cost of the land and rights of way, and all completed structures thereon and therein, used for collecting waters. 7. Collecting Conduits and Reservoirs. This includes the cost of the land and rights of way, and all completed structures thereon and therein, used for collecting waters from various sources and storing in reservoirs ready for purification, pumping or distributing, or for conveying to the purification or pumping plant, or the distribution system (if a purely gravity system). 8. Gravity Intakes and Suction Mains. This includes the cost of all land and rights of way and all completed structures thereon and therein, used for bringing water, by gravity or suction, from the source of supply to the purification or pumping plant. 9. Aqueducts and Supply Mains. This includes the cost of all land and rights of way and all completed structures thereon and therein used for bringing water by aqueducts or supply mains, from the source of supply to the purification or pumping plant, or to the distribution system (if a purely gravity system). Purification System Properties. The purification system includes all property and equipment utilized for or in connection with the purification of water, in conveying water from one part of the purification system to another, including steam or other power plant and pumping equipment when such power plant and pumping plant is used in connection with the delivery of wash water for filter or sand washing, but not including any steam or other power plant and pumping equipment which is used for pumping the water sup- ply from one part of the purification works to another. 14 PURIFICATION SYSTEM. Charge to this account the cost of all land, structures and equipment appurtenant to the purification system of the com- pany, as described above. 8 This account may, if the accounting company desires, be fur- ther classified under the following headings, which shall be the titles of sub-accounts set up hereunder: 1. Settling Basins. This includes the cost of the land and all completed struc- tures thereon for the sedimentation of water without coagulation whether such sedimentation is preliminary to supply or as a preliminary step in conjunction with the further purification of water by some additional process ; also the valves and connec- tions with the succeeding step in the purification process or the mains or other means of conveyance to the pumping plant or the distribution system (if a purely gravity system). 2. Coagulating Basins. This includes the cost of the land and all completed struc- tures thereon used for the coagulation of water, whether such coagulation is preliminary to supply or as a step in conjunction with the further purification by some additional process, or whether used as a step in purification following sedimentation ; also the cost of equipment, such as coagulant mixing and storage tanks, orifice boxes and feeder equipment, valves and connec- tions with the succeeding step in the process or the mains or other means of conveyance to the pumping plant or distribution system (if a purely gravity system), appliances for cleaning out basins, etc. 3. Softening and Iron Removal Plant. This includes the cost of the land and all completed structures thereon used for the process of water softening and iron re- moval; also all equipment and appliances connected with and forming a part of the softening or iron removal plant, including all connections with the succeeding step in the purification pro- cess or the mains or other means of conveyance to the pumping plant or the distribution system (if a purely gravity system), appliances for cleaning out basins, etc. 4. Filters, This includes the cost of the land and all completed struc- tures thereon used for filtration purposes, whether such filters be "roughing filters," "slow sand filters" or mechanical filters ; also all equipment and appliances forming a part of such filters, cleaning and sand washing equipment, etc., and all connections with the succeeding step in the entire purification process or the mains or other means of conveyance to the pumping plant or the distribution system (if a purely gravity system), mechanical and air agitation equipment, together with the power plant therefor. 5. Ozone Sterilizing and Aeration Plant. This includes the cost of the land and all completed struc- tures thereon used for the process of water purification or treat- ment by the ozone sterilizing or aeration process, including all equipment or appliances connected or forming a part of the plant, and all connections with the succeeding step in the purifi- cation process, or the mains or other means of conveyance to the pumping plant or the distribution system (if a purely gravity system). 6. Chemical Treatment Plant. This includes the cost of the land and all completed struc- tures thereon used for the chemical treatment of water, whether such treatment is preliminary or subsequent to some further or preceding process of purification or treatment of water by some additional process, or whether such chemical treatment is the sole method of treatment of the water supply. Included here are all buildings, equipment and appliances such as mixing tanks and gravity or pump feed apparatus, basins, if any, and all connections with the next step in the puri- fication process, or the mains or other means of conveyance to the pumping plant or the distribution system (if a purely gravity system). 7. Clear Water Basins. This account is provided only for use of companies which employ some system or method of purification, and to it should 10 be charged the cost of the land and all completed structures thereon used for the storing of water either in process of purifi- cation as an intermediate step in the purification system, or as the final storage of purified water ready for delivery to the pumping plant or the distribution system (if a purely gravity plant). This account includes also the cost of equipment and appliances and connections from the clear water-basins to the suction or wet wells for pumping or to the pumps direct, or to the supply or suction main or other means of conveyance to the pumping plant or distribution system. Pumping System Properties. 15 PUMPING STATIONS. Charge to this account the cost of all land and of all com- pleted buildings and fixtures used for the pumping of water, including outbuildings, tool houses, shops, etc., and all appurte- nant walks, fences, drives, and all permanently attached fix- tures forming a part thereof. 16 PUMPING PLANT. Charge to this account the cost of all plant and equipment used for the pumping of water, but not including the buildings and other properties properly chargeable to account No. 15. This account may, if the accounting company desires, be fur- ther classified under the following headings, which shall be the titles of sub-accounts set up hereunder : 1. Steam Power Pumping Plant. This includes the cost of all steam plant and equipment, and the accessory equipment such as boilers and their settings, stacks and their foundations, fuel and ash handling and storage equip- ment, super-heaters, economizers, damper regulators and all piping, etc., and other appliances. 11 2. Hydraulic Power Pumping Plant. This includes the cost of all land other than that occupied by the pumping station and buildings, together with the cost of all water power rights (as distinguished from water supply di- version rights) and the cost of all structures provided exclu- sively for the development of hydraulic power such as dams, headgates, canals, flumes, relief structures and appurtenant power generating equipment such as water wheels with control equipment and power transmission equipment from water wheels to pumps aiid also pumps and pumping equipment, etc. 3. Electric Power Pumping Plant. This includes the cost of all equipment used for pumping water by electric power, whether such power is purchased or generated by the company itself, also the pumps and pumping equipment and all appurtenant equipment and appliances. 4. Gas Power Pumping Plant. This includes the cost of all equipment used for pumping water by gas power, whether such power is obtained from pur- chased gas or from producer gas plant. Included here are the cost of gas producer plants and apparatus, gas storage and trans- mission equipment, gas engines, pumps and pumping equip- ment, etc. 5. Miscellaneous Pumping Plant Equipment. This includes the cost of all equipment, apparatus and appli- ances used in connection with the pumping plant, but not prop- erly includible in any of the preceding sub-accounts. Distribution System Properties. 17 TRANSMISSION MAINS. The transmission mains applies only in the case of water works operating pumping stations (in the case of gravity sys- tems these mains would come under the designation of supply 12 or distribution mains), and are understood to be those mains which convey water for long distances without having any con- nections thereto for service therefrom, from the pumping station to the distributing storage reservoir or the distributing system mains. Charge to this account the cost of land and the rights of way, and all main pipes and special castings, valves and valve vaults and boxes, regulating and other equipment and appliances and all buildings and other structures used in connection therewith. 18 STORAGE RESERVOIRS, TANKS AND STAND- PIPES. Charge to this account the cost of all land, reservoirs, tanks and standpipes with the appurtenant buildings, structures and equipment connected therewith, used for the storage of water preliminary to its distribution for consumption. 19 DISTRIBUTION MAINS. Charge to this account the cost of all land and rights of way for main pipe lines and the cost of all main pipes and special castings used for distribution of water to customers (data as to the length of pipe of each diameter and the date of their in- stallation should be carefully kept). Also the cost of all gate valves in the distribution mains, together with the boxes over such valves, and the cost of installing the valves and boxes. Also the cost of all special fixtures and appliances connected to the main pipes together with the cost of installing same, such as regulating valves, air chambers, relief valves, blow-off cocks, flush plugs, etc. 20 SERVICE PIPES AND STOPS. Charge to this account the cost of material and labor includ- ing all other costs and charges incurred in connection there- with; such as permit fees, etc., accruing in the installation of 13 service pipes and stops from main pipes to the customers' prem- ises, when it is the policy of the company that such costs shall be capitalized, and when costs of the services so installed are not borne by the customer, although the company may have full con- trol over the same. 21 METERS, METER BOXES AND VAULTS. Charge to this account the cost of all meters, meter boxes and meter vaults, together with the cost of their installation, which are furnished on customers' service connections without charge to the company. 22 FIRE HYDRANTS AND FIRE CISTERNS. Charge to this account the cost of all hydrants and fire cis- terns, together with the cost of pipe, valves, etc., connecting same with distribution main pipes, and the cost of installing same. i 23 FOUNTAINS, TROUGHS AND OTHER EQUIP- MENT. Charge to this account the cost of all fountains, troughs, and other equipment and appliances for the utilization of the water supply by the general public, together with the cost of their connections and installation, which are installed at the cost of and are owned by the company. 24 STABLE AND SHOP PROPERTIES. Charge to this account the costs of land and buildings used for stables and shops; also, (a) The cost of horses and mules, wagons, harness, etc., au- tomobiles, motorcycles and bicycles, etc., and all equipment provided for hauling materials, etc. (6) The cost of all machinery, machine tools, hand tools of a permanent character and other appliances used for or in con- 14 nection with the operation of a general shop, and also such gen- eral tools and appliances as meter testers, testing pitometers, and all tools and appliances having a life of more than one year. 25 GENERAL PROPERTIES. Charge to this account the cost of all land and buildings pro- vided for general offices, laboratories, store room yards, etc., which are not includible in any of the foregoing accounts. 26 FURNITURE AND FIXTURES. Charge to this account the cost of all desks, tables, chairs, carpets, cases, movable partitions, railing, shelving, typewriters, adding machines, addressographs, and other office devices, stoves, portable gas and electric fixtures and other fittings, etc., pro- vided for use in the offices of the company. 27 RENTAL REAL PROPERTIES. Charge to this account the cost of land and the improvements thereon which are held and utilized solely or principally for the rents to be obtained therefrom, and which do not constitute any part of the water supply or service properties. 28 MISCELLANEOUS TANGIBLE PROPERTIES. Charge to this account the cost of all tangible general propr erties, not properly includible in any of the foregoing accounts. 20 MISCELLANEOUS INTANGIBLE PROPERTIES. I Charge to this account the cost of all other property coming within the definition of intangible capital and devoted to water service operations. All entries of charges to this account shall describe the acquired property with sufficient particularity "i* clearly to identify it, and shall show specifically the principal from whom acquired and all agents representing such principal in the transaction ; also the term of life of such property, esti- mated if not known, and if estimated, the facts upon which the estimate is 16 SCHEDULE OF THE DISTRIBUTION CAPITAL EXPENDITURES OF AS OF JUNE 30, 1911. IXKD Organization Royalties, Franchises and Licenses Water Collecting System Purification System Pumping Stations Pumping Plant Transmission Mains Storage Reservoirs, Tanks and Stand- pipes Distribution Mains Service Pipes and Stops Meters, Meter Boxes and Vaults Fire Hydrants and Fire Cisterns Fountains, Troughs and Other Equip- ment Stable and Shop Properties General Properties Furniture and Fixtures Rental, Real Properties Miscellaneous Tangible Properties Miscellaneous Intangible Properties Total Fixed Capital Ga 7 lord "Bros. Sv Mak . 21, | 908