UNIFORM CLASSIFICATION OF ACCOUNTS 
 
 ELECTRIC CORPORATIONS 
 
 A - PRESCRIBED BY THE 
 
 ol 
 
 
 
 3 | 
 61 
 
 RAILROAD COMMISSION 
 
 STATE OF CALIFORNIA 
 
 Adopted Octv/ier 23, 1912. Effective January 1, 1913 
 
 SAN FRANCISCO, CALIFORNIA 
 
 CALIFORNIA 
 
 STATE PRINTING OFFICE 
 1915
 
 RAILROAD COMMISSION Of CALIFORNIA. 
 
 JOHN M. ESHLEMAN, President Commissioner 
 
 H. D. LOVELAND Commissioner 
 
 ALEXANDER GORDON Commissioner 
 
 EDWIN O. EDGERTON Commissioner 
 
 MAX THELEN, Attorney Commissioner
 
 UNIfORM CLASSIHCATION Of ACCOUNTS fOR ElECTRIC 
 CORPORATIONS. 
 
 Approved October 23, 1912. 
 
 To All Electrical Corporations: 
 
 This uniform system of accounts for electrical corporations is estab- 
 lished and issued by the Railroad Commission of the State of California 
 in accordance with provisions of section 48 of Laws of 1911, known as 
 the "Public Utilities Act," in effect March 23, 1912. 
 
 Section 48. ' ' The Commission shall have power to establish a system 
 of accounts to be kept by the public utilities subject to its jurisdiction, 
 or to classify said public utilities and to establish a system of accounts 
 for each class, and to prescribe the manner in which such accounts shall 
 be kept. It may also in its discretion prescribe the forms of accounts, 
 records and memoranda to be kept by such public utilities, including 
 the accounts, records and memoranda of the movement of traffic as well 
 as the receipts and expenditures of moneys, and any other forms, 
 records and memoranda which in the judgment of the Commission may 
 be necessary to carry out any of the provisions of this act. The system 
 of accounts established by the Commission and the forms of accounts, 
 records and memoranda prescribed by it shall not be inconsistent, in 
 the case of corporations subject to the provisions of the act of congress 
 entitled 'An act to regulate commerce,' approved February fourth, 
 eighteen hundred and eighty-seven, and the acts amendatory thereof 
 and supplementary thereto, with the systems and forms from time to 
 time established for such corporations by the Interstate Commerce Com- 
 mission, but nothing herein contained shall affect the power of the 
 Commission to prescribe forms of accounts, records and memoranda 
 covering information in addition to that required by the Interstate 
 Commerce Commission. The Commission may, after hearing had upon 
 its own motion or upon complaint, prescribe by order the accounts in 
 which particular outlays and receipts shall be entered, charged or 
 credited. "Where the Commission has prescribed the forms of accounts, 
 records or memoranda to be kept by any public utility for any of its 
 business, it shall thereafter be unlawful for such public utility to keep 
 any accounts, records or memoranda for such business other than those 
 so prescribed, or those prescribed by or under the authority of any other 
 state or of the United States, excepting such accounts, records or memo- 
 randa as shall be explanatory of and supplemental to the accounts, 
 records or memoranda prescribed by the Commission."
 
 4 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATION*. 
 
 Section 1. (r) "The term 'electrical corporation,' when used in 
 this act, includes every corporation or person, their lessees, trustees, 
 receivers or trustees appointed by any court whatsoever, owning, con- 
 trolling, operating or managing any electric plant for compensation 
 within this state, except where electricity is generated on or distributed 
 by the producer through private property alone, solely for his own use 
 or the use of his tenants, and not for sale to others. ' ' 
 
 For the purpose of this system of accounts, electrical corporations are 
 divided into three classes as follows: 
 
 Class A Corporations having average annual operating reve- 
 nues exceeding $100,000. 
 
 Class B Corporations having average annual operating reve- 
 nues less than $100,000, and more than $25,000. 
 
 Class C Corporations having average annual operating reve- 
 nues less than $25,000. 
 
 Any corporation in Classes B and C may keep the more extended 
 division or subdivision of any or all the accounts shown herein : if 
 desired, further refinements or extensions of the scheme of accounts to 
 meet the needs of individual corporations may be made by subdividing 
 the accounts herein established, provided that the integrity of the 
 accounts is not impaired and that the titles and purposes of any 
 accounts so raised shall first be filed with the Kailroad Commission. 
 
 All accounts shall be kept by the double entry method by all corpora- 
 tions or persons within the scope of this order. This requirement, 
 however, is not intended to apply to purely statistical accounts. 
 
 The first entry relating to anything for which a charge or a credit 
 is made to any fixed capital or investment account shall describe the 
 property in respect of which the entry is made with such fullness and 
 particularity as to enable its identification. 
 
 All charges made to fixed capital or other property account with 
 respect to any property acquired on or after January 1, 1913. shall be 
 the actual money costs of the property. When the consideration given 
 and for which a charge is made to any fixed capital or other property 
 account is anything other than money, the actual consideration shall l>e 
 fully described in the entry, to enable identification, and the amount 
 charged shall be the actual money value of the consideration at the time 
 of the transaction. 
 
 Discounts upon securities and other commercial papers issued are to 
 be provided for in other accounts and must in no case be included as 
 part of the cost of any property acquired. 
 
 The figures and letters prefixed to the titles of accounts in the follow- 
 ing definitions and instructions are solely for convenience of reference, 
 mid a IT not to be considered as part of the title or definition.
 
 CLASSIFICATION <K ACCOCXTS. ELECTRIC CORPORATIONS. .) 
 
 All corpora I ions an- hereby required on and after January 1, 1913. 
 to keep their accounts in accordance with classifications herein provided. 
 
 All corporations operating in more than one incorporated city or 
 partly within and partly without an incorporated city, shall show sepa- 
 rate income account for each incorporated city, and a single income 
 account for all territory not within an incorporated city. 
 
 All general expense common to the entire system, together with the 
 expense and repairs of the production, transmission and distribution 
 systems, shall be treated as common to the entire system and prorated 
 to the several incorporated cities or other territory on some equitable 
 basis in accordance with the benefits derived. 
 
 NOTE. Corporations will file with the Commission a statement in complete detail 
 and full explanation supporting the basis on which a prorate of expenses is made. 
 
 In prescribing this system of accounts, the Commission does not. bind 
 itself to approve any item set out in any account, either as to amount 
 or character, for rate fixing purposes or when authorizing the issuance 
 of securities. The prescribed system of accounts is designed to set out 
 the facts in connection with the income, expenditures, etc., and there- 
 from the Commission will determine, when engaged in fixing rates or 
 approving issues of securities, just what consideration shall be given to 
 the various items in the several accounts. 
 
 RAILROAD COMMISSION OF THE STATE OF 
 CALIFORNIA. 
 
 BY CHARLES R. DETRICK, Secretary. 
 Dated: October 24, 1912. 
 Commercial Building, 
 
 Sun Fr<iii<-is(.-o, California. 
 
 2 E
 
 6 CLASSIFICATION' OF ACCOTXTS. KI.KCTRIC CORPORATIONS. 
 
 BALANCE SHEET ACCOUNTS. 
 Definitions and Instructions. 
 
 Balance sheet accounts defined. By balance sheet accounts are 
 meant those titles under which the ledger accounts are combined and 
 summarized to show the assets, liabilities, and profit or loss of the 
 business at a given time. Where the title and definition of a balance 
 sheet account clearly indicate that it is a summary of other accounts, 
 it is not required that a special ledger account shall be raised under 
 such a title to include the balance from the accounts usually carried on 
 the ledger. 
 
 Assets. The term Assets is an accepted designation of the wealth 
 or money's worth, either actual or nominal, in the possession or control, 
 or at the disposal of individuals, firms, corporations, or governments, 
 when tin 1 wealth or money's worth is considered as resources for 
 satisfying the obligation of debtors to creditors, and those of trustees 
 to their principals; and as a basis of the property rights of owners 
 or stockholders, or as resources classified according to their character, 
 their relation to the principal purpose of the business or enterprise in 
 Which they are utilized, their form, or the time when and conditions 
 under which they become owned or controlled by or at the disposal of 
 the individual, firm, corporation or government utilizing or disposing 
 of them. 
 
 Corporate deficit is the excess of the expense and deductions over 
 revenue or income, and represents the amount due to the corporation 
 by its proprietors, or proprietary interests, for the replacement of lost 
 invested capital. 
 
 Liabilities. Liabilities are primarily amounts of money or quantities 
 of other specified forms of wealth which persons, firms, corporations, 
 or governments are under obligation to pay or deliver, or for whose 
 custody, use, payment, or expenditure they are responsible, or amounts 
 representing losses or depreciation of assets incurred but not realized. 
 
 Corporate surplus is the excess of revenue or income over expenses 
 and deductions, or portions of the property rights or equity of the 
 proprietors. 
 
 ASSET ACCOUNTS. 
 1. FIXED CAPITAL INSTALLED PRIOR TO JANUARY 1, 1913 : 
 
 In this account (on the balance sheet statement) shall be shown the 
 total of the balance in the ledger accounts representing the corpora- 
 tion's fixed capital which was installed prior to January 1. 1918. and 
 which is still in service at date of the balance sheet. (See text of this 
 account under Account C-35, "Fixed Capital Accounts.")
 
 CLASSIFICATION OF ACcor.VTS. ELECTRIC CORPORATIONS. / 
 
 2. FIXKD CAPITAL INSTALLFD SINCE DFCF.MP.KK :',1, 1912: 
 
 This acccimt is ;i summary of 1 he accounts representing the corpora- 
 1 ion's fixed capital installed since December :i1. 1!)12, and sbonld show 
 the cost of the fixed capital which h;is been installed since that date 
 and is still in service at the date of the balance sheet. (For primary 
 fixed capital accounts see Accounts C-l to C-4, "Intangible Capital," 
 and Accounts C-f> to C-35, "Tangible Capital Accounts.") 
 
 .'3. CASH AND DEPOSITS : 
 
 A. Cash. Charge to this account the amount of current funds avail- 
 able for use on demand in the hands of financial officers and agents, 
 or deposited in banks or with trust companies, and cash in transit for 
 which agents receive current credit. 
 
 B. Special Deposits. Charge to this account special deposits to pay 
 declared dividends or matured interest, cash realized from the sale of 
 securities held for disbursement when the purposes for which the 
 securities are sold are accomplished; special deposits other than in 
 sinking funds for the payment of debts and interest, not matured; 
 also money and securities deposited to secure the performance of 
 contracts, and other deposits of a special nature not provided for 
 elsewhere. 
 
 4. NOTES RECEIVABLE : 
 
 Charge to this account the cost of all collectible obligations in the 
 form of notes receivable or other similar evidences of money receivable 
 on demand or within a time not exceeding one year. This does not 
 include interest coupons. Time loans that mature more than one year 
 after date of issue shall be considered as investments and shall not be 
 included in this account. 
 
 5. ACCOUNTS RECEIVABLE : 
 
 Include in this account all amounts owing to the corporation upon 
 accounts with solvent concerns other than banks, also the cost of all 
 accounts and claims (except notes or negotiable bills) upon which 
 responsibility is acknowledged by solvent concerns or which are suffi- 
 ciently secured to be considered good, and of all judgments against 
 solvent concerns where the judgment is not appealable or suspended 
 through appeal. 
 
 The following sub-accounts are provided : 
 
 A. Accounts with System Corporations. Charge to this account 
 amounts due from proprietary, affiliated, controlled, and controlling 
 corporations on open accounts other than those provided for in Account 
 No. 8-B, "Advances to System Corporations for Construction, Equip- 
 ment and Betterments."
 
 8 CI. ASSIFICATIDX OK ACCorXTS. El 
 
 1>. Dti< front Co/isi.nx rx and A<f< at*. Charge to this account 
 amounts due from consumers and agents for service^ rendered or billed. 
 
 NOTE. Accounts with consumers and agents shall be kept in such manner as will 
 enable corporations to show amounts due from consumers and agents for current 
 accounts, tor delinquent accounts, and amounts due from consumers v, 
 has been suspended. 
 
 C. Miscellaneous Accounts Receivable. Charge to this account 
 amounts due from employees for working funds advanced, and amounts 
 due from miscellaneous debtors upon open accounts considered 
 collectible. 
 
 6. INTEREST AND DIVIDENDS RECEIVABLE : 
 
 Charge to this account all interest considered collectible accrued but 
 not as yet collected upon bonds, notes or other commercial paper, held 
 by or for the benefit of the corporation; all dividends declared or guar- 
 anteed by solvent concerns but not yet collected, the right to which is 
 in the corporation. 
 
 7. OTHER CURRENT ASSETS: 
 
 Charge to this account the cost of all current assets which are not 
 includible under any of the foregoing accounts. By Current As 
 are meant only those things that are readily convertible into money 
 and which are held not as investments, but with the intent of being 
 presently converted into money. 
 
 8. INVESTMENTS: 
 
 This account includes the cost of all properties acquired or held not 
 for use in present operations, but as a means of obtaining and exer- 
 cising control over other corporations, or for income to be derived from 
 them, or for a rise in value, or for devotion to future operations, and 
 for securing other business advantages that may seem possible through 
 their acquisition and possession. 
 It is subdivided as follows : 
 
 A. Securities of Other Corporations. Charge to this account the 
 cost of stocks and bonds and other evidences of indebtedness issued by 
 other companies. This account does not include any stocks, bonds, or 
 other evidences of indebtedness issued or assumed by the accounting 
 corporation. Class A and Class B corporations will subdivide this 
 account so as to show separately the cost of 
 
 a. Stocks of System Corporations. 
 
 &. Funded Debt of System Corporations. 
 
 r. Miscellaneous Stocks. 
 
 d. Miscellaneous Bonds. 
 
 XOTK. In the annual reports to the Railroad Commission, investments will be 
 required to be classified so as to show those held subject to a lien of some character 
 and those held free of all lien or pledge.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 B. Atb'tun-ix ft, Si/shm Corporation* for Gonstrvtction, Equipment 
 
 and Ii< 1t< nn< ntx. Charge to this account advances to proprietary, 
 affiliated, controlled and controlling corporations to enable such 
 corporations to pay for construction, equipment, additions, and better- 
 ments, when such advances are of a permanent nature (i. e., where 
 there is not an understanding that the advances are to be repaid within 
 one year) or when it is understood and intended that reimbursement 
 shall be made by the issue of the securities of the debtor corporation. 
 
 NOTE. Temporary advances on open accounts to system corporations and such 
 advances for pui-poses other than construction, equipment, additions and betterments 
 shall be included in accounts receivable. 
 
 ('. MiscdlaiKon?; Iiir< xfntt nix. Charge to this account all other in- 
 vestments of a permanent nature in intangible and in physical property 
 not held for the operation of the company's plant as an electric system. 
 
 NOTE. In the annual reports to the Railroad Commission, investments will be 
 required to be classified so as to show those held subject to a lien of some character 
 and those held free of all lien or pledge. 
 
 !). MATERIALS AND SUPPLIES: 
 
 Charge to this account the cost (including transportation) of all 
 materials and supplies acquired, and the value of discarded equipment 
 and of equipment, materials, and supplies returned to store, regardless 
 of whether the same are intended to be consumed in construction or in 
 operation, or later to be sold. Where discounts recovered through 
 prompt payment are not credited to the particular bills, the cost at 
 which such materials and supplies shall be charged shall be the invoice 
 cost, and any discounts recovered through prompt payment of bills for 
 such materials and supplies shall be credited to Account No. C-32, 
 "Interest During Construction." or to Account No. E-86, "Undis- 
 tributed Adjustments Balance," according as such materials and sup- 
 plies are intended for construction or for operation. 
 
 AVhen the use of any tangible fixed capital is discontinued it shall be 
 treated as retired: the original cost of such capital shall be credited to 
 the fixed capital account in which carried, and its value, if any. as 
 second-hand material or junk shall be. charged to this account, or an 
 appropriate sub-account. If such value is not known and cannot 
 readily be determined, it shall be estimated, and errors in such esti- 
 mates, when determined, shall be adjusted through the accounts in- 
 volved during the year in which the estimates were made; if later, then 
 through the "Corporate Surplus or Deficit" account. 
 
 Inventories of materials and supplies shall lie 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 Accounl 
 No. E-86, "Undistributed Adjustments Balance." or to Account 
 No. 4. "Supply Expense" (if that account be used), in case such short- 
 ages or overages cannot be assigned to specific accounts. Shortages
 
 10 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 may. however, be charged directly to "Corporate Surplus or Deficit." 
 Where materials and supplies from stores have been used in construc- 
 tion, and it is estimated that part of the shortage or overage is due to 
 such materials and supplies having been actually applied to construc- 
 tion, a proper proportion of the inventory shortage or overage should 
 be charged or credited to Account No. C-31-E, "Miscellaneous Con- 
 struction Expenditures," directly or through Account No. 4, "Supply 
 Expense." 
 
 10. SINKING FUNDS: 
 
 Charge to this account the amount of cash and the cost of live securi- 
 ties in the hands of trustees of sinking and other funds for the purpose 
 of redeeming outstanding obligations, also amounts deposited with such 
 trustees on account of mortgaged property sold. A separate account 
 shall be raised for each sinking fund. When any security of the same 
 issue as that for which a sinking fund is created is acquired through 
 the operation of the sinking fund, the par value of the security shall be 
 charged to the liability account to which it stands credited and not to 
 the sinking fund account. 
 
 11. OTHER SPECIAL FUNDS: 
 
 Charge to this account the amount of cash and the cost of securities 
 held in trust by or for the corporation in insurance funds, pension 
 funds, hospital funds, and other similar special funds not provided for 
 in the preceding accounts. A separate account shall be raised for each 
 fund. 
 
 NOTE. Securities issued or assumed by the corporation may be included among 
 the assets of special funds only when they represent the actual investment of funds 
 held in trust and when the fund so held would share in the distribution of assets 
 covered by the securities in case of foreclosure or dissolution. 
 
 12. TREASURY SECURITIES: 
 
 Charge to this account the par value of all stocks and bonds which 
 have been authorized and issued by the corporation or assumed by it 
 and held by the Treasurer or other fiscal agent of the corporation for 
 its benefit. When such securities are sold their par value shall be 
 credited to this account. 
 
 13. PREPAID EXPENSES: 
 
 A. Prepaid Rents. Charge to this account the amount of rents paid 
 in advance of the enjoyment of the term. As the term is consumed, 
 credit this account at monthly intervals and debit the appropriate rent 
 account with the amount applicable to the month. 
 
 B. Prepaid Ta.rt*. Charge to this account the excess of taxes p;iid 
 over the amount properly chargeable to Income or other accounts as 
 shown by the debit balance in the Tax Liability account.
 
 CLASSIFICATION" OF ACCOUNTS, ELECTRIC CORPORATIONS. 11 
 
 C. Prepaid Insurance. When premiums on insurance policies are 
 paid in advance of their accrual, the amount prepaid shall be charged 
 to this account. As such premiums accrue, they shall be credited at 
 monthly intervals to this account and charged to the appropriate ex- 
 pense account. 
 
 D. Of In r J'rffxiijnn at*. When prepayments are made for anything 
 other than as provided for in the three preceding accounts, the amount 
 of such prepayments shall be included in this account. 
 
 14. UXAMORTIZED DISCOUNT ON SECURITIES AND EXPENSE: . 
 
 When capital stock, funded debt securities and other evidences of 
 indebtedness are disposed of for a consideration whose cash value is 
 less than the sum of the par value of the securities or other evidences 
 of indebtedness and the interest thereon accrued at the time the trans- 
 fer takes place, the excess of such sum of the par value and accrued 
 interest over the cash value of the consideration received shall be 
 charged to this account, To this account shall also be charged all 
 expense connected with the issue and sale of evidences of debt, such 
 as fees for drafting mortgages and trust deeds, fees and taxes for 
 recording mortgages and trust deeds; cost of engraving and printing 
 bonds, certificates of indebtedness, and other commercial paper having 
 a life of more than one year ; fees paid trustees, provided for in mort- 
 gages and trust deeds; fees and commissions paid underwriters and 
 brokers for marketing such evidences of debt, and other like expense. 
 At or before the close of each fiscal period thereafter, a proportion of 
 such discount and expense on securities representing indebtedness 
 based upon the life of the security to maturity shall be credited to this 
 account and charged to Account No. 109, ''Amortization of Debt Dis- 
 count and Expense." 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 Account No. 114-G, "Other Deductions 
 from Surplus." 
 
 15. OTHER SUSPENSE: 
 
 This account includes all debits not elsewhere provided for and the 
 proper final disposition of which is uncertain. It will include all such 
 matters as expense of preliminary surveys, plans, investigations, etc., 
 made for determining the feasibility of projects under contemplation. 
 Should any such project later be carried to completion, such amounts 
 shall be credited to this account and charged to the proper capital 
 account <>r accounts: should it be abandoned, such amounts shall be 
 charged to ^Corporate. Sin-plus or Deficit.'' 
 
 When the proper disposition of any matter charged to this account 
 is determined, it shall be credited to this account and charged to the 
 appropriate account or accounts.
 
 12 CLASSIFICATION OF ACOM'XTS. FI.KCTKIC ( OKI'OHATIoXS. 
 
 16. CONSTRUCTION WORK IN PROGRESS : 
 
 In this account may be included amounts expended upon plant that 
 is in process of construction under estimates or work orders but is not 
 ready for service at the date of the balance sheet. It includes, also, 
 such proportion of plant supervision expenses, engineering expenses, 
 tool expenses, supply expenses, and general expenses as may be prop- 
 erly chargeable to the construction work included under this account. 
 
 When the work is completed on any job. the cost of which has been 
 included in this account, the sub-account covering that job shall be 
 credited with the amount at which it stands charged, and the appro- 
 priate fixed capital or other accounts shall be concurrently charged; 
 but in no case shall any expenditure be carried in this account beyond 
 the close of the fiscal year next succeeding that in which the expendi- 
 ture is made. 
 
 17. CORPORATE DEFICIT: 
 
 Under this head should be shown the debit balance, if any. in the 
 "Corporate Surplus or Deficit Account." 
 
 LIABILITY ACCOUNTS. 
 
 18. CAPITAL STOCK: 
 
 To this account should be credited the par value of the capital stock 
 issued and outstanding, including any that may be in the corporation's 
 treasury, or held in trust for it. or in sinking or other funds. 
 
 19. INSTALLMENTS ON STOCK SUBSCRIPTION: 
 
 To this account should be credited the amounts received for capital 
 stock to be paid for in installments, until such stock is issued. 
 
 20. FUNDED DEBT : 
 
 The funded obligations of the Corporation shall be divided into 
 classes, each class agreeing in all of the following four characteristics: 
 
 1. Mortgage or other lien, or security therefor. 
 
 2. Rate of Interest. 
 
 3. Interest Date. 
 
 4. Date of Maturity. 
 
 A separate sub-account shall be opened for each mortgage note, or 
 other lien or security, and no accounts or debts net agreeing in the 
 characteristics as above shall be included in the same sub-account. 
 
 To the proper sub-account shall be credited when issued the total 
 receipts from the sale of evidence of indebtedness secured by the mort- 
 gage, etc. The entry in any account shall show also the purpose for 
 which funded debt is issued and shall make intelligible reference to 
 the book, page, and account wherein are shown any discount or pre- 
 mium realized on the amount issued or assumed.
 
 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 13 
 
 It' the consideration received for the indebtedness is other than 
 money, the entry shall show to whom issued and shall describe with 
 sufficient particularity to identify the actual consideration received. 
 
 If the issue in any case is to an agent of an undisclosed principal, 
 the name and address of agent and the fact of his agency must be 
 shown in the entry: also short time securities or notes and mortuaLics 
 payable which are due at a date over one year in the future. 
 
 21. RECKIVKR'S CERTIFICATES: 
 
 When any receiver acting under the orders of a court of competent 
 jurisdiction is in possession of the property of the corporation, and 
 under the orders of such court issues certificates of indebtedness charge- 
 able upon such property, the par value of such certificates shall be 
 credited to this account. Interest accruing upon such certificates shall 
 also be credited monthly to this account. 
 
 22. ADVANCES FROM SYSTEM CORPORATIONS FOR CONSTRUCTION, Eo_np- 
 
 MENT AND BETTERMENTS. 
 
 Credit to this account advances from proprietary, affiliated, con- 
 1 rolled and controlling corporations to enable the accounting corpora- 
 tion to pay for construction, equipment, additions and betterments 
 when such advances are of a permanent nature (i. e., where there is not 
 an understanding that the advances are to be repaid within one year) 
 or when it is understood and intended that a reimbursement shall be 
 made by the issue of the securities of the debtor corporation. 
 
 NOTE. Temporary advances on open accounts from system corporations and such 
 advances for purposes other than construction, equipment, additions and betterments 
 shall be included in accounts payable. 
 
 2:}. NOTES PAYABLE: 
 
 \Yhen any note or draft which matures not later than one year after 
 date of issue or of demand is issued or the primary liability thereon 
 assumed by the corporation, the par value thereof shall be credited to 
 this account and when it is paid it shall be charged to this account and 
 credited to "Cash" or other suitable account except secured notes 
 proper to be included in Account No. 20 ''Funded Debt." 
 24. ACCOPNTS PAYABLE: 
 
 Include in this account the credit balances, showing all liabilities of 
 the corporation upon open accounts, as provided for in the following 
 sub-accounts : 
 
 A. Accounts irilli Sijsfftn Corporal&QU. Credit to this account the 
 amounts owing to proprietary, affiliated, and controlled or controlling 
 corporations on open accounts other than those provided for in Account 
 No. 22. ''Advances from System Corporations for Construction. Equip- 
 ment and Betterments." 
 
 3 E
 
 14 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATION'S. 
 
 R Audited Yoin-lii rx (tn<l Wages Unpaid. Credit to this account the 
 
 amount of audited vouchers or accounts and audited payrolls unpaid 
 on the date of the balance sheet. Include also the amount of unclaimed 
 wages and outstanding pay and time checks issued in payment of 
 
 C. Consumers' Deposits. Credit to this account as such deposits are 
 made all cash deposited with the corporation by consumers for elec- 
 trical service as security for the payment of bills. Deposits refunded 
 should be charged to this account and credited to cash. Deposits 
 applicable to uncollectible electrical bills should be credited to the 
 account of the consumer and debited to this account. 
 
 D. Miscellaneous Accounts Payable. Credit to this account all 
 amounts owing to miscellaneous creditors on open accounts and not 
 provided for elsewhere. 
 
 25. INTEREST ACCRUED: 
 
 Credit to this account at the close of each month the interest accrued 
 during the month upon the interest-bearing indebtedness issued or 
 assumed by the corporation, except interest on judgments and receivers' 
 certificates. When such interest is paid it should be charged to this 
 account and credited to ' ' Cash ' ' or other suitable account. The interest 
 accruing on any judgment against the corporation or upon any re- 
 ceivers' certificates shall be credited to the account to which such 
 judgment or receivers' certificates stand credited. 
 
 26. TAXES ACCRUED: 
 
 To this account should be credited taxes that have accrued but are 
 not yet due. The full amount of taxes for the year should be estimated 
 and charged equally (one twelfth) to the expenses (Account No. E-91) 
 of each month, with corresponding credit to this account, as soon as the 
 amount of the taxes for the period is known, the accounts should be 
 adjusted to conform. When taxes become due and are voucher*-.!, they 
 should be charged to this account. 
 
 27. DIVIDENDS DECLARED: 
 
 When any dividend is declared, the amount of the dividend shall be 
 credited to this account and here remain until it is paid, when the 
 amount of the payment shall be charged to this account and credited 
 to "Cash" or other suitable account. 
 
 28. SERVICE BILLED IN ADVANCE: 
 
 When bills are made for service to be rendered in future months, and 
 the amount of the bills is included in "Accounts Receivable," but not 
 in the revenue accounts, the proportion of the bills applicable to future 
 months shall be credited to this account. As the term for which the
 
 CLASSIFICATION OF ACCOUNTS, KLECTRIC CORPORATIONS. 15 
 
 hills is made expires, the appropriate revenue account should he cred- 
 ited and this account debited with the amount applicable to the current 
 month. 
 
 Credit to this account or to appropriate sub-accounts such amounts 
 as are concurrently charged to Account No. E-93, "Depreciation of 
 Plant and Equipment." Charge to this account or to appropriate sub- 
 accounts (except as prescribed in the notes hereunder) the realized 
 depreciation in the several classes of tangible fixed capital ; that is, the 
 difference between the original cost (estimated if not known) of prop- 
 erty relinquished, retired, or destroyed, and the value of any salvage 
 recovered. Charge also to this account such part of the expenditures 
 for repairs concurrently credited to Account No. E-88, "Repairs 
 Charged to Reserves Cr." as may have been provided for in estimat- 
 ing the rate of depreciation. (See Account No. E-93, "Depreciation 
 of Plant and Equipment.") 
 
 NOTE A. When any property is retired which was installed prior to the raising 
 of the "Reserve for Accrued Depreciation," only such portion of the realized depreci- 
 ation shall be charged to the reserve as is due to life in service after the establish- 
 ment of the reserve ; this portion may be estimated on the basis of the proportion 
 which the life in service of the property in question after the establishment of the 
 reserve bears to its entire life in service. The remainder of the realized depreciation 
 shall be charged to Account No. 114-B "Realized Depreciation Not Covered by Re- 
 serves," unless the corporation has on its books a depreciation reserve accumulated 
 prior to the establishment of the prescribed depreciation rules, in which case such 
 other remainder, or so much of it as may be provided for, shall be charged to such 
 other reserve account. 
 
 NOTK B. When any property is retired whose book value has been reduced by 
 writing off estimated depreciation, only that part of the realized depreciation which 
 has not already been written off shall be charged as above to the "Reserve for 
 Accrued Depreciation," or Account No. 114-B, "Realized Depreciation Not Covered by 
 Reserves." 
 
 NOTE C. When any property is retired whose book value is greater than the 
 known or estimated cost, such excess shall be charged to "Corporate Surplus or 
 Deficit" and the realized depreciation shall be charged as elsewhere directed. 
 
 NOTE D. If any property is sold for more than its original cost, the amount of 
 depreciation, if any. accrued and credited to a reserve in respect thereof, shall be 
 determined as accurately as possible and charged to such reserve. The sum of the 
 amount so charged and the excess of the selling price over the cost of the property 
 shall bi-- ci-.-.Iit.-d to Account No. H5 "Miscellaneous Additions to Surplus." 
 
 Mil. IiKSKKYK KOI; AMORTIZATION OF INTANGIBLE CAPITAL: 
 
 Credit to this account such amounts as are concurrently charged to 
 Account No. 111-B. "Amortization of Landed Capital," and to Ac- 
 count No. E-92, "Amortization of Franchises and Patents." Charge 
 to this account when any franchise, patent, or landed capital expires 
 or is relinquished, the amount at which it stood charged in the corpora- 
 tion's fixed capital accounts, or such amount as has been previously 
 credited to this reserve in respect of such capital if the amortization 
 has not been fully accomplished. That portion of its cost which has 
 not been covered by credits to the reserve or previously written off shall 
 be charged to Corporate Surplus or Deficit account as "Amortization 
 Unprovided for Elsewhere."
 
 16 CLASSIFICATION OF ACCOUNT^. EI.Kfl !M( CORPORATIONS. 
 
 :il. IN AMORTIZED PREMIUM ON DEBT: 
 
 When funded debt securities or other evidences of indebtedness 
 issued or assumed by the corporation are disposed of for a considera- 
 tion whose cash value is greater than the sum of the par value of such 
 securities or other evidences of indebtedness and the interest thereon 
 accrued at the time the transfer takes place, the excess of the cash value 
 of such consideration received over the sum of the par value of the 
 securities or other evidence of indebtedness and the accrued interest 
 shall be credited to this account. At monthly intervals thereafter a 
 proportion of such premium based upon the life to maturity of the 
 security or other evidence of indebtedness sha-11 be charged to this 
 account and credited to Account No. 110, "Amortization of Premium 
 on Debt Cr." in the Income Account. 
 
 32. CASUALTY AND INSURANCE RESERVES: 
 
 When any admitted liability arises because of loss or damage to the 
 property of others, or of injuries to employees or other persons, the 
 amount of the liability may (if not previously provided for by insur- 
 ance or self-insurance) be charged to the appropriate operating ex- 
 pense or other accounts .and credited to this account, against which (in 
 such case) the actual cost of satisfaction of the liability shall be charged 
 when the matter is determined. If the extent of the liability can not be 
 ascertained promptly after the liability arises, it may be estimated as 
 accurately as practicable for the purpose of determining the immediate 
 charge to the expense or other appropriate account, in which case the 
 matter shall be adjusted when the extent of the liability is definitely 
 ascertained. If the loss is of such character that it is in whole or in 
 part indemnifiable under any contract of insurance carried by the 
 corporation, the indemnifiable portion of the loss shall be charged to 
 the insurer and credited to "Casualty and Insurance Reserves." Also 
 credit to this account the amounts charged to operating expense Ac- 
 count No. E-75, "Insurance," to cover self-carried risks. 
 
 33. INCOME INVESTED SINCE DECEMBER 31. 1912. IN FIXED CAPITAL: 
 Credit to this account such amounts from income or surplus as are 
 
 definitely set aside to cover expenditures for extensions or improve- 
 ments of the fixed capital of the accounting corporation ; such appro- 
 priations include those made discharging the principal (less the <li^- 
 count. if any. suffered at the time of sale of any obligations ineiinvd 
 in the acquisition of any property whos.- rust is earned in the fixed 
 capital accounts. The amounts credited to this account shall l>e con- 
 currently charged to "Corporate Surplus or Deficit" account as 
 "Appropriations to Reser
 
 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. it 
 
 This account should not include temporary appropriations for the 
 acquisition of property the cost of which is intended later to be met by 
 an issue of securities, nor appropriations for the payment of obligations 
 which are intended to l;e replaced by new issues. 
 
 34. KESERVES INVESTED IN SINKING FUNDS: 
 
 Credit to this account appropriations from surplus speeitieally in- 
 vested <)) set aside in the hands of trustees for sinking and redemption 
 funds, including accretions to such funds. 
 
 35. OTHER KESERVES i ROM IXCO.ME OR SURPLUS: 
 
 Credit to this account all appropriations of income or surplus held 
 in reserve, other than appropriations invested in fixed capital since 
 December '->!. 1!)12. and appropriations invested in sinking or redemp- 
 tion funds. A separate sub-account shall be raised for each reserve, 
 and the entries in such sub-accounts will be required to be shown sepa- 
 rately in the annual report to the Railroad Commission. 
 
 This account includes the unexpended balance, if any. of appropria- 
 tions intended to be invested in fixed capital, and such appropriations 
 to sinking or redemption fund reserves as are not specifically invested. 
 
 36. CORPORATE SURPLUS UNAPPROPRIATED: 
 
 1'nder this head should be shown the credit balance, if any, in the 
 "Corporate Surplus or Deficit Account/' 
 
 FIXED CAPITAL ACCOUNTS. 
 
 FIXED CAPITAL DEFINED : 
 
 By the fijccd capital of a corporation is meant the property, both 
 tangible and intangible, which is devoted to the accomplishment of the 
 principal purposes of its business and which has an expectation of life 
 in service of more than one year from date of installation of service 
 (exception being made in the ease of hand tools and other small port- 
 able tools that may be lost or stolen). 
 
 COST OF FIXED CAPITAL : 
 
 The term "Cost" as used in the texts for fixed capital accounts 
 means the original cost to the corporation. It includes not only the 
 costs of labor, materials and supplies directly employed or consumed 
 in the construction and installation of property classed as fixed capital, 
 but also the cost of preliminary plans and surveys and such portion of 
 the expenses for engineering and plant supervision and general ex- 
 penses as may be chargeable to the fixed capital accounts under an 
 equitable plan for the apportionment of such expense. 
 
 Intangible Capital comprises organization, franchises, patent rights, 
 water rights, and all other intangible property or possessions.
 
 18 CLASSIFICATION' OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 INTANGIBLE CAPITAL. 
 
 C-l. ORGANIZATION : 
 
 Charge to this account all fees paid to governments for the privilege 
 of incorporation, and all office and other expenditures incident to 
 organizing the corporation or other enterprise and putting it in readi- 
 ness to do business. This includes the cost of preparing and 
 distributing prospectuses, the cost of soliciting subscriptions for stock 
 (but not for loans nor for the purchase of bonds or other evidence of 
 indebtedness), cash fees paid to promoters, and the actual cash value at 
 the time of organization of securities paid to promoters for their serv- 
 ices 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 costs incident to negotiating loans or selling bonds 
 or other evidence of indebtedness. 
 
 NOTE. Costs incident to preparing and filing certificates of authorization of in- 
 crease of capital stock, and to the negotiation and issue of stock thereunder, art- 
 classed as additions. The cost of preparing and filing certificates of amendment of 
 articles of incorporation is classed as a betterment. The cost of preparing and filing 
 papers in connection with the extension of the term of incorporation or with reincor- 
 poration consequent upon reorganization shall be classed as a renewal. 
 
 C-2. FRANCHISE (ELECTRIC) : 
 
 Charge to this account the amount (exclusive of any tax or annual 
 charge) actually paid to the state, or to a political subdivision thereof, 
 as the consideration for the grant of such franchise or right as is 
 necessary to the conduct of the corporation's electric operations. If 
 any such franchise is acquired by mesne assignment, the charge to this 
 account in respect thereof must not exceed the amount actually paid 
 therefor by the corporation to its assignor. 
 
 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. 
 
 Payments made to the state or to some subdivision thereof as a con- 
 sideration for granting an extension for more than one year of the life 
 period of a franchise shall be classed as renewals. Those made a> a 
 consideration for franchises or extensions thereof covering additional 
 territory to be operated as a part of an existing system shall be classed 
 as betterments. If the franchises cover separate and distinct new 
 enterprises the payments therefor shall be classed as original. 
 
 NOTE. Annual or more frequent payments in respect of franchises must not be 
 charged to this account but to the appropriate tax or operating expense account.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 19 
 
 C-3. PATENT RIGHTS: 
 
 Charge to this account the cost of all rights (having a life of more 
 than one year from the date when placed in service) acquired by the 
 corporation in or under valid patents granted by the United States to 
 inventors for inventions and discoveries which are necessary to the 
 economical conduct of the corporation's electric operations. 
 
 NOTE. If a patent right is extended to cover a further period of time than that 
 covered by the original grant, the cost of such extension is classed as a renewal. A 
 patent right acquired for use in an existing system and necessary to the economical 
 operation thereof is classed as an addition. 
 
 C-4. OTHER INTANGIBLE CAPITAL: 
 
 Charge to this account the cost of all other intangible capital devoted 
 to electric operations. Entries of charges to this account shall describe 
 the acquired property with sufficient particularity clearly to identify it, 
 and shall also show specifically the principal from whom acquired and 
 all agents representing such principal in the transaction ; also the term 
 of life of such property, estimated if not known, and if estimated, the 
 facts upon which the estimate is based. 
 
 Corporations in Class C may consolidate these four accounts, carry- 
 ing one account, "Intangible Capital." 
 
 Tangible Capital comprises structures, equipment and facilities hav- 
 ing an expectation of life in service of more than one year. Because 
 of their liability to loss and theft, hand and other small portable tools 
 are excepted from tangible capital, and the cost of such tools, when 
 issued, is required to be treated as a part of the operating expenses or 
 to be charged to other suitable accounts. 
 
 TANGIBLE CAPITAL. 
 Landed Capital. 
 
 C-5. LAND DEVOTED TO ELECTRIC OPERATIONS: 
 
 Charge to this account the' cost of the accounting corporation's 
 landed capital which is devoted to electric operations as hereinbefore 
 defined. This includes land occupied by generating stations and their 
 appurtenances, rights of way for transmission and distribution lines 
 and other electric operations, also those for canal and pipe lines, water 
 rights, and rights of pondage, flowage, and submersion, where such 
 rights have lives in excess of one year from the date when such land is 
 placed in service. Such cost includes, when assumed or paid by the 
 purchaser in its own behalf, cost of registration of title, cost of examina- 
 tion of title, conveyancer's and notary's fees, purchasing agent's com- 
 missions or fees, or proportion of purchasing agent's salary, taxes 
 accrued to date of transfer of title, and all liens upon the title acquired ; 
 also cost of obtaining consents and payments for abutting damages. 
 
 NOTE A. Cost of buildings and other improvements must not be included in this 
 account.
 
 20 CLASSIFICATION OF ACCor.NTS. ELECTRIC CORPORATION:-. 
 
 XOTE B. If at the time of acquisition of an interest in la mis it extends to build- 
 ings or other improvements thereon, which improvements are devoted by the corpora- 
 tion to its electric operations, and the contract of acquisition does not determine the 
 price of such improvements, they shall be appraised at their fair cash value for use 
 in such operations, and such appraised value shall be charged to the appropriate 
 structures account and excluded from the account "Land Devoted to Electric Opera- 
 tions" if such improvements are not devoted to electric operations, but are devoted 
 to other operations or held as investments, the cost (or appraised value if the cost is 
 not determined in the contract of acquisition) shall be charged to the appropriate 
 investment account or capital account for other operations. If the improvements an- 
 removed or wrecked, the salvage (less the cost of removal of wreckage) shall be 
 excluded from the account "Land Devoted to Electric Operations." The entries in 
 this account must be 'made in such wise as to enable the corporation to show in its 
 annual report to the Railroad Commission the subdivision of the cost of its land 
 devoted to electric operations into the following : 
 
 Land devoted to Production Operations. 
 
 Land devoted to Transmission Operations. 
 
 Land devoted to Distribution Operations. 
 
 Land devoted to Joint Operations, and 
 
 Land devoted to other operations. 
 
 Production Capital. 
 
 C-6. DAMS. WATER CONDUITS AND PENSTOCKS: 
 
 Charge to this account the cost of all reservoirs, dams, canals, aque- 
 ducts and penstocks devoted to the utilization of water power and the 
 delivery of water to the headgate of the turbine or watcrwheel : also 
 that of all wasteways from the outlet of the draft-tube to the point of 
 final discharge. This includes all gates, valves and other accessories of 
 such reservoirs, dams, etc.; also wasteways. sluices, forcbays. grids. 
 walls, fences, etc., for the protection of such canals and penstocks, and 
 all trestles, and other supporting structures: also all viaducts, bridges. 
 foot-bridges, etc.. over and accessory to and necessitated by such canals 
 aqueducts and penstocks; also the cost of all necessary buildings in 
 connection therewith, such as dwellings, stables, cookhouses, clubhouse. 
 etc., also water wells and pumps. 
 C-7. POWER PLANT BUILDINGS AND GENERAL STRUCTURES: 
 
 Charge to this account the cost of material used and labor expended 
 in erecting buildings to be used for housing power generating plants. 
 This account includes the cost of excavations, permanent foundations. 
 drainage, gas and water pipes and connections, grading ^rounds, and 
 furniture and fixtures when permanently attached to and made a part 
 of the buildings; also the cost of architects' plans and of superintend- 
 ence of construction; also the cost of all necessary buildings in connec- 
 tion therewith, such as dwellings, stables, cookhouses, clubhouses, etc.: 
 also water wells and pumps. 
 
 C-8. HYDRAULIC POWER PLANT EQUIPMENT: 
 
 Charge to this account the cost of all water wheels and turbines 
 devoted to the generation of electrical energy, including foundations 
 and settings, their governors and all apparatus appurtenant thereto 
 from the headgates and governors to wasteways. Include also the cost
 
 CLASSIFICATION" OF ACCOUNTS, KI.KCTKIC CORPORATIONS. 21 
 
 of all electric generating apparatus driven by hydraulic power and 
 rotaries and motor-generator sets, exciters, etc., when not installed in 
 connection with transmission systems, together with their specially 
 provided foundations and settings. Include in this account also the 
 cost of all electric equipment of the power plant, embracing station 
 switchboards, and such equipment as circuit breakers, switches, meters 
 and their settings, headgate motors and other electric apparatus. Belts, 
 pulleys, shafting and other power transmission apparatus in the 
 hydraulic power plant will also be included in this account. 
 
 (..'--!). Fl'RXACES. KoiLKRS. AND ACCESSORIES: 
 
 Charge to this account the cost of all furnaces, fuel oil tanks and 
 pipe lines, boilers and boiler apparatus and accessories devoted to the 
 production of steam for use in generating electrical energy. This 
 includes boilers and valves thereto attached, appurtenant furnaces and 
 grates, and flues leading to smokestacks and chimneys, and the specially 
 provided foundations and settings for such boilers and appurtenances ; 
 also iron smokestacks. It also includes mechanical stokers and other 
 like apparatus for regulating the supply of fuel, etc., feed and hot 
 water heaters and economizers, injectors, niters, feed pumps, blower 
 engines, coal conveyors, ash conveyors, water pipes, steam traps, drains 
 and separators, and pipes for conducting steam from boiler to the 
 engine or to the gas producers, etc. It does not include the cost of 
 steam pipes whose primary purpose is the heating of buildings. 
 
 0-10. STEAM POWER PLANT EQUIPMENT: 
 
 Charge to this account the cost of all steam engines devoted to the 
 production of electrical energy. This includes the specially provided 
 foundations and settings for engines. The engines, whether recipro- 
 cating or rotary (such as steam turbines), shall be considered to include 
 the throttle or inlet valve and the governor: also condensers, air and 
 circulating pumps, lubricating systems, etc.. but not the steam pipe 
 from the boiler. Where the electric rotor is mounted on the engine 
 shaft, the shaft shall be considered a part of the steam engine and the 
 electric rotor shall be considered a part of the electric equipment. 
 Also the cost of all electric generating apparatus driven by engines 
 operated by steam and rotors and motor-generating sets, exciters, etc., 
 when not installed in connection with transmission systems. This in- 
 cludes the specially provided foundations and settings for such appa- 
 ratus; also the cost of all other electric equipment of generating sta- 
 tions, such as station switchboards and their equipment and their 
 foundations and settings : also pump motors, air compressor motors, etc. 
 
 4 E
 
 22 CLASSIFICATION' OF ACCol "NTS. EI.ECTRIC CORPORATIONS. 
 
 < ' -11 . GAS PRODUCERS AND ACCESSORIES : 
 
 Charge to this account the cost of nil producers ;itul accessories 
 devoted to the production of gas for the purpose of operating electric 
 generators, including the cost of specially provided foundations and 
 settings for such producers and accessories. Also include producers, 
 economizers, regenerators, vaporizers, steam injectors, scrubbers, ex- 
 hauster outfits, seals, specially provided boilers and pumps, flues and 
 piping, blower engines, pipes for the conduction of gas from such pro- 
 ducers to holders and to g^ engines, holders for producer gas, exhaust 
 pipes from gas engines, etc. Do not include pipes whose primary pur- 
 pose is the heating of buildings, nor power transmission apparatus, nor 
 water pipes, steam pipes, water pumps or inspirators. 
 
 C-12. GAS POWER PLANT EQUIPMENT : 
 
 Charge to this account the cost of all gas engines devoted to the 
 production of electrical energy, including the specially provided founda- 
 tions and settings of such engines. The engine includes the inlet valve, 
 governor, and ignition and starting apparatus, but not the pipe 
 leading from the gas holder. Where the electric rotor is mounted on 
 the engine shaft, the shaft shall be considered a part of the engine, the 
 electric rotor being considered a part of the electric equipment. In- 
 clude also the cost of all electric generating apparatus driven by en- 
 gines operated by gas; and rotaries, motor-generator sets, exciters, etc.. 
 when not installed in connection with transmission systems. This in- 
 cludes the specially provided foundations and settings of such 
 apparatus. Also the cost of all other electric equipment of generating 
 stations, such as bus bars, station switchboards and equipment, and 
 their foundations and settings; also pump motors, air compressor 
 motors, etc. 
 
 C-13. MISCELLANEOUS PRODUCTION EQUIPMENT: 
 
 Charge to this account the cost of all miscellaneous equipment used 
 in the production of electricity which is not includible in any of the 
 foregoing accounts. This includes tools and appliances (working stock 
 only), horses, wagons, harness, autos, motorcycles, bicycles, furniture 
 and fixtures, roads, trestles, bridges, etc., where used specifically in the 
 production of electrical energy. 
 
 NOTE A. Where any item of miscellaneous power plant equipment is jointly used 
 with transmission, distribution or other departments, the cost of such item shall be 
 included in appropriate sub-accounts under "General Capital." 
 
 NOTE B. It will be required that this account be so kept as to represent at all 
 times the actual working miscellaneous equipment ; and all renewals of such working 
 equipment shall lie charged to appropriate accounls other than capital, or tho account 
 must be adjusted annually to physical inventory.
 
 CLASSIFICATION 1 OF ACCOUNTS, KI.KCTRH: CORPORATIONS. 2'} 
 
 Transmission and Distribution Capital. 
 
 C .14. POLKS ANI> FIXTURES: 
 
 ( '[large In this account the cost of towers, structures, poles, cross- 
 arms and insulator pins; braces, brackets, and other pole fixtures; guys 
 and other supports for holding the towers, structures and poles in posi- 
 tion ; and all labor expended in connection with the construction of 
 pole lines or structures for carrying the transmission and distribution 
 systems. 
 
 A. Transmission system. " 
 
 B. Distribution system. 
 
 ( '-15. OVERHEAD SYSTEM : 
 
 Charge to this account the cost of overhead transmission and dis- 
 tribution system (exclusive of poles and fixtures), including cost of 
 cables (for overhead system), wires, insulators and insulating material, 
 main conductors and feeders, and all labor and expense in connection 
 therewith. 
 
 A. Transmission system. 
 
 B. Distribution system. 
 
 C-16. UNDERGROUND CONDUITS: 
 
 Charge to this account the cost of conduits required for underground 
 wires and cables, including manholes, ducts and pipes, sewer connec- 
 tions, sewer traps, and all material necessary for the completion of the 
 underground conduit system devoted to the protection of the transmis- 
 sion and distribution systems; also the cost of cables and insulating 
 material. 
 
 A. Transmission system. 
 
 B. Distribution system. 
 
 C-17. SUB-STATION BUILDINGS AND GENERAL STRUCTURES: 
 
 Charge to this account the cost of material used and labor expended 
 in erecting buildings to be used for sub-station purposes, including 
 excavations, permanent foundations, drainage, gas and water pipes and 
 connections, grading grounds, and furniture and fixtures when perma- 
 nently attached to and made a part of the buildings. Include also the 
 cost of architects' plans, and of superintendence of construction, and 
 the cost of all necessary buildings in connection therewith, such as 
 dwellings, stables, cookhouses, clubhouses, etc.; also cost of water wells 
 and pumps. 
 
 A. Transmission system. 
 
 B. Distribution svstem.
 
 24 CLASSIFICATION OP ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 C-18. SUB-STATION EQUIPMENT: 
 
 Charge to this account the cost of all equipment of sub-stations. 
 Such equipment includes electric machinery and apparatus, trans- 
 formers, storage batteries, furnaces, boilers, stoves, elevators, etc., per- 
 manently assigned to such stations, but not affixed to the structures 
 thereof. It does not include laboratory instruments and apparatus not 
 permanently assigned thereto, nor does it include tools only tempor- 
 arily assigned to such stations. 
 
 NOTE. Include under this account all transformer and sub-station equipment in- 
 stalled in power plant buildings for purposes of distribution department. 
 
 A. Transmission system. 
 
 B. Distribution system. 
 
 C-19. MISCELLANEOUS EQUIPMENT: 
 
 Charge to this account the cost of all miscellaneous equipment used 
 in the transmission or distribution of electrical energy which is not 
 includible in any of the foregoing accounts. This includes tools and 
 appliances (working stock only), horses, wagons and harness, autos, 
 motorcycles, bicycles, furniture and fixtures, roads, trestles and bridges, 
 etc., where used specifically in the transmission of electrical energy. 
 
 NOTE A. Where any items of miscellaneous transmission or distribution equipment 
 are jointly used in connection with production or other departments, the cost of such 
 items shall be included in appropriate sub-accounts under "General Capital." 
 
 NOTK B. It will be required that this account be so kept as to represent at all 
 times the actual working equipment; and all renewals of such miscellaneous working 
 equipment shall be charged to appropriate accounts other than capital, or the account 
 must be adjusted annually to physical inventory. 
 
 A. Transmission system. 
 
 B. Distribution system. 
 
 C-20. LINE TRANSFORMERS AND DEVICES: 
 
 Charge to this account the cost of all line transformers (both over- 
 head and underground), pole line lightning arresters, transformer cut- 
 out boxes, line cut-out switches, etc., in the distribution system. 
 
 NOTE. Upon filing with the Railroad Commission a notice thereof, the accounting 
 corporation may also include in this account the cost of line transformers and devices 
 temporarily withdrawn from service. 
 
 C-21. ELECTRIC SERVICES: 
 
 Charge to this account the cost of all conductors (and appurtenant 
 insulation, ducts and supports) connecting the distribution mains with 
 electric apparatus and appliances in the possession of consumers. 
 
 NOTE. Cost of renewing or modifying services shall not be charged to this account. 
 
 C-22. METERS: 
 
 Charge to this account the cost of all meters installed for determin- 
 ing the amount of energy delivered to consumers. The cost of the 
 original setting of each meter will be charged to this account if it is the 
 policy of the accounting corporation to capital i/e the original setting of
 
 CLASSIFICATION OF ACCOTNTS, ELECTRIC CORPORATIONS. ZO 
 
 meters. Subsequent removing and the resetting of meters will not be 
 charged to this account, but to operating expenses. 
 
 NOTE A. Upon filing with the Railroad Commission a notice thereof, the account- 
 ing corporation may also include in this account the cost of meters temporarily with- 
 drawn from service. 
 
 NOTE 13. It will be required that this account be so kept as to represent at all 
 times the actual number of meters in service or temporarily out of service; and all 
 renewals .shall be charged to appropriate accounts other than capital or the account 
 must be adjusted annually to physical inventory. 
 
 0-23. ^MUNICIPAL STREET LIGHTING SYSTEM : 
 
 Charge to this account the cost of all lighting equipment operated 
 and maintained under contracts for public lighting entered into with 
 a municipality, embracing public arc lights, Nernst lamps and incan- 
 descent lamps provided for in the contract, and all circuits, poles, 
 crossarms. pins, braces, brackets, insulators, arc supports, and accessory 
 equipment required under the terms of such contract. There will not 
 be charged to this account the cost of any equipment properly charge- 
 able to "Distribution System." this account being designed to cover 
 only the cost of the lighting system devoted solely to the municipal 
 contract service. Where the terms of the contract or an ordinance of 
 the municipality require extension of mains and services for lighting 
 under the terms of the contract, the cost of such extension, if used 
 solely for public lighting under such contract, will be charged to this 
 account. Entries to this account in respect to such extensions shall 
 be so made as to admit of a classified detailed statement when called 
 for by the Eailroad Commission. 
 
 NOTE A. L'pon filing with the Railroad Commission a notice thereof, the account- 
 ing corporation may also include in this account the cost of public arc and other lamps 
 temporarily out of service. 
 
 NOTE B. Cost of taking lamps down for repairs and cost of rehanging lamps 
 shall not be charged to this account, but to the appropriate operating expense account. 
 
 NOTE O. All lamp renewals and replacements shall be charged to the appropriate 
 operating expense account. Corporations may also segregate this account into the 
 following : 
 
 Municipal Street Lighting System Poles, Wires and Fixtures. 
 Municipal Street Lighting System Lamps. 
 
 The lamps account should then be adjusted at annual intervals to physical in- 
 ventory by contra entry to the accounts chargeable for repairs and replacements. 
 
 NOTE D. Poles and fixtures installed within distribution system shall not be 
 charged to this account, where the type of such poles and fixtures will permit of 
 carrying the general distribution system circuits. 
 
 0-24. COMMERCIAL LAMPS AND LAMP 
 
 Charge to this account the cost of all arc lamps. Xernst lamps, incan- 
 descent lamps, and all lamp fixtures and equipment devoted to commer- 
 cial lighting and included in the tangible capital of the corporation. 
 Lamps and lamp equipment having an expectancy of life in service of 
 less than one year will not be charged to this account, but will be con- 
 sidered an operating charge.
 
 26 CLASSIFICATION OP ACCOUNT*. ELECTRIC CORPORATIONS. 
 
 C-25. ELECTRIC MOTORS AND HEATERS : 
 
 Charge to this account the cost of all property of the company in 
 electric motors and heaters leased to consumers (including municipali- 
 ties), and of all appurtenances thereof, such as fans, etc. 
 
 C-26. INSTALLATIONS ON CONSUMERS' PREMISES: 
 
 Charge to this account the cost of all material and cost of installa- 
 tion of equipment on consumers' premises for purposes of supplying 
 energy of certain voltage, kind or character. Such installations as 
 come hereunder would include motor sets for theater lighting. amuse- 
 ment parks, etc. ; also motors, fans. etc. 
 
 NOTE Do not include in this account transformers, meters, services, appliances 
 loaned, or commercial art- lamps and lamps installed in connection with rates or 
 renewals thereof. 
 
 NOTE. Corporations in Classes A and B shall for the purpose of annual report 
 to the Railroad Commission segregate the expenditure account of transmission and 
 distribution capital, using sub-accounts A and B as above provided. Corporations in 
 Class C will not be required to show the expenditures in this respect separately. 
 
 General Capital. 
 
 C-27. GENERAL STRUCTURES: 
 
 Charge to this account the cost of all buildings and other structures 
 of a permanent character devoted to general corporate purposes, not 
 restricted to electric operations and not includible in any of the depart- 
 mental accounts; also of all fixtures permanently attached thereto and 
 made a part thereof, such as water pipes and fixtures, steam pipes and 
 fixtures for warming and ventilating, gas pipes and fixtures for light- 
 ing, etc.; electric wiring and fixtures for lighting, signaling, etc.; 
 elevators, etc. ; and the engines and motors specially provided for oper- 
 ating them; furnaces, boilers, etc., specially provided for producing 
 steam for such engines and for heating; electric generators specially 
 provided for producing current for lighting such buildings, ete. This 
 account includes such piers and other foundations for machinery and 
 apparatus as are designed to be as permanent as the building in (or 
 in connection with) which they are constructed, and to outlast the first 
 machinery or apparatus mounted thereon. 
 
 NOTE A. Among such buildings may be mentioned general office buildings, general 
 shop buildings, general storehouses, general stable buildings, etc.. where general 
 offices, shops, storehouses, stables, etc.. are in buildings includible in a departmental 
 account, as, e. g., in a power station building, no part of the cost of such building 
 shall be charged to this account. This account is provided for structures of a general 
 or miscellaneous character, not assignable to any particular department. 
 
 NOTE B. When furnaces and boilers are used primarily for furnishing steam for 
 some particular department and only incidentally for furnishing steam for heating a 
 general building and operating the equipment therein, the entire cost of such fdrnacea 
 and boilers shall be charged to the appropriate departmental capital account, and 
 no part to the account, "General Struotun s." 
 
 C 28. GENERAL K 
 
 Include in this account the cost of all equipment of general struc- 
 tures, as provided under the following heads : 
 
 A. General Office Equipment. The cost of all equipment of general 
 offices, such as desks, chairs, tables, movable safes, filing cases, drafting-
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 27 
 
 room equipment, and other like office appliances and equipment ; also 
 engineering instruments. 
 
 B. General Shop Equipment. The cost of all equipment specially 
 provided or general shops, such as furnaces, boilers, gas producers, 
 engines, electric generators, and- other power apparatus used in operat- 
 ing machinery in such shops ; machine tools, cranes, hoists, shafting 
 belts and the like shop equipment; also such smithing equipment in 
 general shops as is used principally for other general purposes than 
 shoeing horses and repairing vehicles. 
 
 NOTE. Hand and other small portable tools liable to be lost or stolen shall not 
 be included herein, but portable tools and apparatus of special value may be charged 
 to this account and remain herein so long as record is kept of the persons to whom 
 such tools and apparatus are issued and such persons are made responsible therefor. 
 
 C. General Store Equipment. The cost of all equipment of general 
 store structures, such as movable counters, movable shelving, and other 
 movable equipment of like nature, carts, barrows, trucks, etc., and 
 other apparatus and appliances used in handling materials and sup- 
 plies. 
 
 XOTK. Counters, shelving and the like which are permanently attached to the 
 structure shall he charged to Account O-27, "fJem-ral Structures," and not to this 
 account. 
 
 D. General Sfuhh and (i<ir<itj< Equii>nt<nt. The cost of all equip- 
 ment of general stables and garages including horses, harness, drays, 
 wagons, automobiles and other vehicles, equipment of shoeing shops, 
 harness repair shops, vehicle repair shops, etc. 
 
 E. Miscellaneous Equipment. The cost of allother equipment, such 
 as laboratory equipment and other tools and apparatus and miscel- 
 laneous equipment not iucludible in the foregoing accounts under 
 ' ' General Equipment. ' ' 
 
 C-29. Telephone Lines. Charge to this account the cost of all mate- 
 rials and labor expended in the construction of telephone lines for the 
 entire system. These charges should include the cost of wires and 
 insulators, crossarms, poles (where devoted solely to supporting tele- 
 phone lines), telephone instruments, switchboards, etc. 
 
 NOTE. Do not include in this account the cost of any portion of poles or supports 
 where jointly used in the transmission or distribution of electric current. 
 
 C-30. ROADS, TRESTLES AND BRIDGES: 
 
 Charge to this account the cost of all labor and material expended 
 in the construction of roads, trestles, bridges and tramways required 
 for the transportation of machinery and supplies, or the operation of 
 the corporation. 
 
 XOTK. Do not includ^ in this account the cost of roads, trestles or bridges prop- 
 erlv rhn7-gt\iblf> to Account C-6 and C-19.
 
 28 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 C-31. UNDISTRIBUTED CONSTRUCTION EXPENDITURE: 
 
 A. En(jinrin(i <nt<l Superintendence. Charge to this account all 
 expenditures for services of engineers, draftsmen, and superintendents 
 employed on preliminary and construction work, and all expenses inci- 
 dent to the work, when such disbursements can not be assigned to 
 specific construction. 
 
 NOTE. When employees enumerated abnw are engaged in work not chargeable to 
 construction, their pay and expenses shall be charged to the specific work on which 
 engaged. 
 
 B. Law E.rp<nx<x During Construction. Charge to this account all 
 law expenses incurred during the period of construction of the electric 
 plant. Charge also the salaries and expenses of counsel, solicitors and 
 general attorneys, their clerks and attendants, etc. ; also the cost of law 
 hooks, printing briefs, legal forms, testimony reports, fees and retainers 
 of the general counsel and attorneys, court costs and payments of 
 specific notarial and witness fees, expense of taking depositions, and 
 general law and court expenses during construction. Expenses of 
 arbitrators of disputed points will also be charged to this account. 
 AVhen any of the expenditures above enumerated can be charged 
 directly to the account for whose benefit they were incurred they shall 
 be so charged and not to this account. Thus, expenditures in connec- 
 tion with the acquisition of land to be occupied by the stations shall be 
 charged to the appropriate construction account. Law expenses in con- 
 nection with the organization of the corporation, whenever such can be 
 definitely ascertained, shall be charged to the account "Organization." 
 
 C. Injuries and Damages During Construction. Charge to this 
 account all damages to or destruction of property other than that owned 
 by the corporation, caused directly in connection with the construction 
 of the electric plant, and all expenses incident to injuries or death of 
 employees and other persons for which injuries or death the corporation 
 is held liable, or in the settlement of which elaims allowances are made. 
 This includes such items of expense as judgments for damages and 
 plaintiff's court costs; proportion of salaries and expenses or fees of 
 physicians and surgeons, expenses of undertakers, nurses and hospital 
 expenses, medical and surgical supplies, contributions to hospitals dur- 
 ing the period of construction of the plant, transportation of injured 
 persons and wages and salaries paid to employees while disabled. The 
 salaries and expenses of the corporation's claim agents, adjusters and 
 their assistants while engaged upon settling such claims arising during 
 construction will be charged to this account. The compensation of the 
 general solicitors or counsel of the corporation while engaged in the 
 defense and settlement of damage suits will also be charged to this 
 account,
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 29 
 
 I). 7V/.rrx Durimj Cmixli'tH'lioit. Charge to this account all taxes and 
 assessments levied and paid on property belonging to the corporation 
 while under construction and before the plant is opened for commer- 
 cial operation, except special taxes assessed for street and other im- 
 provements, such as grading, sewering, curbing, guttering, paving, 
 sidewalks, etc., which shall be charged to the account to which the 
 property benefited is charged. 
 
 K. Miscellaneous Construction Expenditures. Charge to this ac- 
 count the salaries and expenses of executive and general officers of an 
 electric plant under construction; clerks in general offices engaged on 
 construction accounts or work; rent and repair of general offices when 
 rented, with the office expenses; insurance during construction; also 
 all construction and equipment items of a special and incidental nature 
 which can not properly he charged to any other account in this classifi- 
 cation. 
 
 NOTE. This account shall not include any costs of organization, or any costs or 
 discounts connected with the issue and disposal of stocks, funded debt, or other 
 securities and commercial paper. 
 
 C-32. INTEREST DURING CONSTRUCTION : 
 
 Charge to this account the interest accrued upon all moneys (and 
 credits available upon demand) acquired for use in connection with 
 the construction and equipment of the property from the time of such 
 acquisition until the construction is ready for use. Interest receivable 
 accrued upon such moneys and credits shall be credited to this account. 
 To this account shall also be credited discounts realized through prompt 
 payment of bills for materials and supplies used in construction, unless 
 such discounts are credited to the particular bills. 
 
 C-33. COST OF PLANT PURCHASED IN LIEU OF PLANT CONSTRUCTED: 
 
 ('barge to this account the cost of electric plant purchased in case 
 the plant of the corporation is obtained by purchase instead of being 
 constructed by it. 
 
 The entry to this account should show with sufficient detail the name 
 of the parties from whom purchased, the purchase price and other 
 fads pertinent to such purchase. All books and records should be 
 retained at time of purchase. The Railroad Commission will require 
 full and complete details of all transactions of purchase. 
 
 C-34. FIXED CAPITAL IN OTHER DEPARTMENTS: 
 
 Charge to this account the cost of all property of the corporation. 
 both tangible and intangible, devoted to its operations other than 
 electric, not including investments as defined in Account No. 8, 
 "Investments." 
 
 5 E
 
 30 CLASSIFICATION OF ACCOUNTS. KI.KCTKIC CORPORATIONS. 
 
 C-35. FIXED CAPITAL, INSTALLED PRIOR TO .IANCAKV 1. 
 
 In this account (on the balance sheet statement) shall be shown the 
 total of the balances in the ledger accounts representing the corpora- 
 tion's fixed capital which was installed prior to January 1. 1913. and 
 which is still in service at the date of bqlance.shcit. 
 
 The accounts representing the fixed capital of the corporation as 
 carried on its books at the close of December 31. 1912. shall be so 
 designated upon the books of the corporation as to show clearly that 
 they relate only to fixed capital installed prior to the close of that date. 
 No debits shall be made to such accounts with respect to any property 
 subsequently acquired, but the cost of such property shall be charged 
 to the accounts hereinbefore provided. When any property acquired 
 prior to January 1, 1913. is withdrawn or retired from service, the 
 amount at which it stands charged shall be credited to the account in 
 which it is charged and concurrent debits shall be made (1) to "Cash," 
 "Materials and Supplies," or other account, as may be appropriate. 
 for the value of any salvage; (2) to Account No. 29, "Reserve for 
 Accrued Depreciation," or to Account No. 30, "Reserve for Amortiza- 
 tion of Intangible Capital," for the amount of depreciation or other 
 amortization applicable to the period subsequent to December 31, 1912 ; 
 and (3) 'to "Corporate Surplus or Deficit" account for the remainder 
 of the amount at which the property is carried in the accounts for fixed 
 capital; unless the corporation had on that date a reserve for retire- 
 ments, in which case the latter amount, or so much of it as may be 
 applicable, shall be charged to such reserve account. 
 
 NOTE. In the reports to the Railroad Commission, a statement will be required 
 showing the names of the accounts for fixed capital actually carried by the corpora- 
 tion on December 31, 1912, and the balances therein at the date of the report. 
 
 C-36. FIXED CAPITAL INSTALLED SINCE DECEMBER 31, 1912 : 
 
 This account is a summary of the accounts representing the corpora- 
 tion's fixed capital since December 31. 1912, and should show the 
 of the fixed capital w r hich has been installed since that date and is still 
 in service at the date of the balance sheet. (For the primary Fixed 
 Capital Accounts, see Account C-l to C-4. "Intangible Capital." and 
 Accounts C-5 to C-35, "Tangible Capital.") 
 
 INCOME ACCOUNT. 
 
 INCOME ACCOUNT DEFINED: 
 
 The income account brings together those accounts that show the total 
 amount of money that the corporation has received or becomes entitled 
 to receive for services rendered during a given period, the return accru- 
 ing during the period upon investments, and the disbursements and 
 obligations incurred that affect the disposition of the amounts so re-
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 31 
 
 ceived or aeerued. The follo\\ iim accounts make up the income account 
 statement and should lie closed into the Inn me Account at the close of 
 the year or other fiscal period. 
 
 101. OPERATING REVENUES: 
 
 Include in this account the total operating revenues of the corpora- 
 tion for the period covered by the income statement. See Accounts 
 R-l to R-18, inclusive, under "Operating Revenues." 
 
 102. OPERATING EXPENSES: 
 
 Include in this account the total expenses of the corporation for the 
 period covered by the income statement. (See Accounts E-l to E-93, 
 inclusive, under "Operating Expenses.") 
 
 103. UNCOLLECTIBLE ELECTRIC BILLS: 
 
 Charge to this account (and credit the account receivable in which 
 heretofore carried) the amount of any account for electric services 
 which, after a reasonably diligent effort to collect, has proved impracti- 
 cable of collection. This account includes only uncollectible bills for 
 amounts which have been treated as operating revenues; other uncol- 
 lectible bills should be charged to Account No. 105-G, "Uncollectible 
 Non-operating Revenues;" or to "Corporate Surplus or Deficit" ac- 
 count, as may be appropriate. 
 
 104. NON-OPERATING REVENUES: 
 
 A. Rent Accrued from Lease of Electric Plant. Credit to this 
 account monthly, as they accrue, all revenues from the corporation's 
 interests in electric plant or equipment held by others under some form 
 of lease whereby it surrenders possession of such property. 
 
 This account is intended to cover only rents receivable for the use 
 of electric plants or operating units held as a whole under some form 
 of lease. 
 
 B. Miscellaneous Bent Revenues. Credit to this account monthly 
 the revenues accruing to the corporation as a return upon rented prop- 
 erty other than electric plant and equipment held by others under 
 lease, as provided for in the preceding account. 
 
 C. Interest and Dividend Revenues. Credit to this account monthly 
 all revenues accruing to the corporation, not retained in specific sink- 
 ing or other revenue funds, from interest upon all its bank balances, 
 special deposits, and other assets, when such interest is a liability of 
 solvent concerns or individuals, and from dividends declared or guar- 
 anteed by solvent concerns upon stocks held by the corporation. No 
 interest or dividends upon securities issued or assumed by the account- 
 ing corporation shall be credited to this account nor to any other 
 revenue account,
 
 CATION OF ACCOTNTS. KI.EOTRIC CORPORATION^ 
 
 ('hiss A corporations will subdivide the revenues included herein and 
 keep separate accounts for 
 
 a. Interest Revenues on Funded Del>1 owned. 
 
 b. Miscellaneous Interest Revenues. 
 
 c. Dividend Revenues. 
 
 D. Sinking and Otli< r I!i*<rr< Fuml . l< r/v linns. Credit to this 
 account and charge the appropriate fund or its trustee monthly the 
 revenues accruing from securities and other assets in the hands of trus- 
 tees or specifically set aside for sinking and other special funds, when 
 the revenues are retained as a part of the funds. Such revenues may 
 include appropriations equal to interest upon securities issued or 
 assumed by the accounting corporation where such securities are 
 acquired through the operation of a sinking or other reserve fund. 
 
 NOTE. If the assets of a fund are to be represented by a reserve from surplus. 
 concurrent entries should be made charging Account No. 113, "Sinking Fund Appro- 
 priations." or Account No. 114 E, "Appropriations to Reserves." crediting Account 
 No. 34, "Reserves Invested in Sinking Funds," or No. 35, "Other Reserves from 
 Income or Surplus," as may be appropriate. 
 
 E. Profits from Operations of Others. Whenever in accordance with 
 the terms of any contract the corporation is entitled to participate in 
 the profits from operations of others, all revenues accruing to the cor- 
 poration from such source shall be credited to this account. 
 
 F. Miscellaneous Non-operating Revenues. Credit to this account all 
 non-operating revenues not provided for in the foivii'oini: accounts. 
 
 105. NON-OPERATING REVENUE DEDUCTIONS: 
 
 A. Kent Expense. Charge to this account all expenses arising in 
 connection with the procuring of revenues from rented property, such 
 as the cost of negotiating contracts, advertising for tenants, fees paid 
 conveyancers, collectors' commissions, cost of enforcing payment of 
 rent, cost of ousting tenants, etc. This includes the expenses accruing 
 while the property is idle and awaiting an occupant ; also the cost of 
 maintenance of the property when such cost is borne by the corpora- 
 tion. Such maintenance includes depreciation as well as reparable wear 
 and tear. It does not include taxes. 
 
 B. Interest Expense. Charge to this account all expense arising in 
 connection with procuring interest upon investments, such as expense 
 of collection, expense of investigating delay in payment, expense of 
 enforcing payment, and the like. It does not include taxes on such 
 investments. 
 
 C. Diri'lt ml E.rfH nxi . Charge to this account all expense arising 
 in connection with the collection of dividends on stocks of other cor- 
 porations, including expenses incurred in the investigation of the 
 affairs of the corporations whose stocks are held, whether for the pur- 
 pose of detecting mismanagement or for the purpose of inducing the
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 66 
 
 declaration of dividends, and all expense connected with enforcing 
 payment of dividends when declared. It does not include taxes on such 
 Investments. 
 
 D. 01lur*' ()i>< nttioxs E.I'IH n*c. Charge to. this account the cost of 
 negotiating contracts whereunder the corporation is to participate 
 in the profit resulting from the operations of others; also all expense 
 of collecting the corporation's proportion of such profits, and all 
 expense connected with procuring the modification or the dissolution 
 of any such contract. 
 
 K. Misci llaiK aits Non-operating K.>'i>< /w . Charge to this account all 
 non-operating expense not provided for in the foregoing sub-accounts. 
 
 F. Noit-o/x r<ih'n(j T(t.r<*. Charge to this account all taxes payable 
 by the corporation accrued upon Don-operating property, and all taxes 
 assignable to non-operating revenues. 
 
 (r. ('//<<>/! IH>/t Non-operating Revenues, When any non-operating 
 revenues are judged by the corporation to be uncollectible, the amount 
 thereof shall be credited to the account in which theretofore charged 
 and charged to this account. 
 
 106. INTEREST ACCRUED ox FUNDED DEBT: 
 
 Charge to this account monthly all interest accrued on outstanding 
 funded debt issued or assumed b"y the corporation. This account does 
 not include interest on securities held by the corporation in its treasury, 
 in sinking or other reserve funds, or pledged as collateral. 
 
 NOTE A. The amount charged to this account shall be concurrently credited to 
 Account No. 25, "Interest Accrued," to which account shall be debited payments 
 made on account -of interest. 
 
 NOTE B. If any of the funded debt sivuiities issued or assumed by the corpora- 
 tion are held in its sinking or otluT reserve funds and the interest on such funded 
 debt is ;in accretion to the fund, the interest on such securities shall no be charged 
 to this account but an amount equal to the interest on the fvinded debt so held shall 
 lie charged to Account No. 113. "Sinking Fund Appropriations." This does not apply 
 to securities in funds held in trust by the corporation ; such as employees' pension 
 funds and savings funds. 
 
 107. OTHER INTEREST DEDUCTIONS: 
 
 Charge to this account monthly all interest accrued on receivers' 
 certificates and on interest-bearing unfunded obligations of the cor- 
 poration. 
 
 NOTE A. The amount t barged to tliis account shall !>< concurrently credited to 
 Account No. -o. "Interest Accrued." or to No. 21. "Receivers' Certificates," to which 
 accounts shall be debited payments made on account of such interest. 
 
 108. RENT DEDUCTIONS: 
 
 Include in this account monthly all amounts accrued against the cor- 
 poration for rents, other than minor rents provided for elsewhere as 
 chargeable to operating expenses. It includes the matters provided for 
 in the following sub-accounts: 
 
 A. Pent for Lease of Other Electric Plant. Charge to this account 
 monthly all amounts accrued against the corporation for rent of electric
 
 34 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 plant and equipment which it holds inidt-r sume form of lease from 
 another, and of which it has the exclusive possession. 
 
 This account is intended to cover only rents payable for the use of 
 electric plants or operating units held as a whole under some form of 
 lease. 
 
 B. Bent for Conduits, Poles and OUn r Su[>]x>rt. Charge to this 
 account rents payable accruing for the use of ducts, conduits, or sub- 
 ways owned by others, and rents for the use of poles, fences, or build- 
 ings as supports for the electric lines of the accounting corporation. 
 
 C. Kent for Instruments and Equipment. Chanie to this account 
 the rents payable accruing for electric instruments and equipment 
 owned by others. 
 
 This does not include amounts paid licensor electric corporations 
 under an agreement to pay a certain percentage of revenues for use 
 of instruments, privilege of connection, etc. 
 
 D. Miscellaneous Rent Deductions. Charge to this account rents 
 payable accrued not provided for elsewhere. 
 
 109. AMORTIZATION OF DEBT DISCOUNT AND EXPENSE : 
 
 Charge to this account at or before the close of any fiscal period that 
 proportion of the unamortized discount and expense on outstanding 
 debt which is applicable to the period. This proportion shall be deter- 
 mined according to a rule, the uniform application of which during the 
 interval between the issue and the maturity of any debt will completely 
 amortize or wipe out the discount at which such debt was issued and the 
 debt expense connected therewith. Such amortization may at the 
 option of the corporation be earlier effected by charging all or any 
 portion of such discount and debt expense to Account No. 114-0, 
 "Other Deductions from Surplus," immediately upon issue of the debt 
 or thereafter. 
 
 110. AMORTIZATION OF PREMIUM ON DEBT CR. : 
 
 Credit this account at or after the close of any fiscal period the pro- 
 portion of the premium at which outstanding debt was issued which is 
 applicable to the period. This proportion shall be determined according 
 to a rule, the uniform application of which during the interval between 
 the issue and the maturity of any debt will completely amortize or wipe 
 out the premium at which such debt was issued. 
 
 111. MISCELLANEOUS DEDUCTIONS FROM INCO.MK: 
 
 Include in this account the matters provided for in thi- follo\vinir 
 sub-accounts : 
 
 A. Loss on Operations of Others. "Whenever, in accordance with the 
 terms of any contract, the corporation is bound to contribute toward
 
 CLASSIFICATION OP ACCOUNTS, ELECTRIC CORPORATIONS. 35 
 
 reimbursement of the losses resulting from the operations of others, all 
 liabilities accruing to the corporation from such source shall be charged 
 to this account. 
 
 1>. Annii'lizdtion of Landed Capital. Charge to this account at the 
 close of any fiscal period such portion of the original money cost (esti- 
 mated if not known) of landed capital as is necessary to cover the pro- 
 portion of the life thereof expired during such period. 
 
 NOTE A. The amounts charged to this account shall be concurrently credited to 
 Account No. 30, "Reserve for Amortization of Intangible Capital." 
 
 XCTK B. When any landed capital expires or is otherwise retired from service 
 (as, e. g., through sale) the capital account or investment account (if any) originally 
 charged therewith shall be credited with the amount originally charged. Account 
 No. 30, "Reserve for Amortization of Intangible Capital," shall be debited with all 
 amounts theretofore credited to such account in respect of such landed capital so 
 going out of service, the appropriate account shall be debited with the proceeds of 
 sale (if any), and any ner-essary adjustment shall be made through the "Corporate 
 Surplus or Deficit" n< 
 
 C. Other Couii'fii-i mil 1)< <1 iict'mnx fro, n In>,n<. Charge to this ac- 
 count all deductions fn;m UTOSS income which are in the nature of fixed 
 charges and not provided for otherwise, such as those required by the 
 terms of some contract, agreement, charter provision, law, or ordinance. 
 Such deductions should not include any appropriations or dispositions 
 of income that rest solely in the discretion of the accounting corporation. 
 
 NOTE. Payments to sinking funds shall not be charged to this account but shall 
 be included in Account No. 113, "Sinking Fund Appropriations." 
 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT. 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT DEFINED : 
 
 This account or summary is the connecting link between the income 
 account and the balance sheet. It summarizes the changes in the cor- 
 porate surplus or deficit during a given fiscal period resulting from the 
 business transactions during that period as well as those effected by 
 any disposition of net profits made solely at the option of the corpora- 
 tion, by accounting adjustments not properly attributable to the period, 
 or by miscellaneous losses or gains not provided for elsewhere. 
 
 To this account should be carried the net balance of the accounts 
 forming the Income account, and in it should be summarized all 
 optional appropriations (including dividends) ; miscellaneous adjust- 
 ments due to errors in accounting in prior fiscal periods; profits from 
 the sale of securities or other property; losses upon property sold or 
 otherwise retired and not covered by reserves, and unusual losses and 
 gains of like nature. For these matters the following accounts are 
 provided ; their net balance added to the net balance from the Income 
 account should show the net surplus or deficit on the date of the balance 
 sheet.
 
 36 CLASSIFICATION OP ACCOUNTS. ELECTRIC CORPORATION >. 
 
 112. DIVIDENDS ON OUTSTANDING STOCK : 
 
 When any dividend is declared upon any outstanding stocks of the 
 corporation, the amount of such dividend shall thereupon be charged 
 to this account. All entries to this account shall show the amount of 
 stock upon which the dividend is declared as well as the amount thereof. 
 If the dividend is payable in anything other than money, such thing 
 shall be described in the entry with sufficient particularity to identify 
 it, and the actual money value thereof shall lie stated as the amount of 
 the dividend. 
 
 When any dividend is declared upon the stocks of the corporation 
 owned by or held in behalf of the corporation, the amount of such 
 dividend thereon shall be credited to this account. Entries of credits 
 to this account shall be made with the same degree of particularity as 
 is prescribed in the preceding paragraph. 
 
 113. SINKING FUND APPROPRIATIONS: 
 
 Charge to this account all appropriations to sinking funds and accre- 
 tions to such funds on account of income from previous investments. 
 Such appropriations should include: (1) direct payments; c2) sums 
 equal to the interest or dividends on securities issued or assumed by 
 the corporation and held in sinking funds; (3) income from invest- 
 ments of sinking funds other than securities issued or assumed; (4) in- 
 come from cash or special deposits held by trustees of sinking funds. 
 All earnings of sinking funds and contributions to such funds shall be 
 included in this account whether such contributions are made at the 
 option of the corporation or are required by the provisions of mort- 
 gages, deeds of trust, or other contracts. 
 
 114. MISCELLANEOUS DEDUCTIONS FROM SURPLUS : 
 
 A. Expenses Unprovided for Elsewhere. Charge to this account all 
 expenses not chargeable as part of operating expenses or of non- 
 operating expenses, such as fines levied on the corporation for violation 
 of law, for misfeasance, for non-feasance, etc., fines levied on directors. 
 officers, and other employees of the corporation and assumed by it. 
 donations to funds, to churches and other associations, and other like 
 expenses and outgoes. 
 
 B. Realized Depreciation X<>! (Covered by Reserve*. Charge to this 
 account the realized depreciation (that is, the difference between the 
 original cost and the salvage, if any), on tangible capital retired, when 
 such depreciation has not been provided for through a depreciation 
 reserve. This includes such portion of the realized depreciation on 
 any physical property which was installed prior to the creation of the 
 reserve for accrued depreciation as is due to life in service before that 
 date; this portion may be estimated on the basis of the proportion
 
 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 37 
 
 which the life in service of the property in question prior to the estab- 
 lishment of the reserve bears to its entire life in service. 
 
 C. Amortization Unprovided for Elsewhere. Charge to this account 
 when any intangible property expires or is relinquished, such portion 
 of its cost as lias not 'been previously written off or is not covered by 
 Account No. 30. "Reserve for Amortization of Intangible Capital." 
 Charge also to this account all optional amortization, such as that of 
 organization expenses, and assets, carried in Account No. C-4. "Other 
 Intangible Capital." 
 
 D. Gift* to Ci>itfrt>1lI Cnrpin-atifms. Charge to this account all gifts 
 made by the corporation to its controlled corporations, also such por- 
 tions of all advances thereto as are not carried as assets. 
 
 E. Appropriations l AVxv/T'x. Chaise to this account all optional 
 appropriations to reserves. 
 
 F. Of/it / Appropriations from Surplus. Charge to this account all 
 optional appropriations made by the corporation and not provided for 
 elsewhere. 
 
 - NOTE. A complete analysis of this account will be required in annual reports of 
 corporations to the Railroad Commission. 
 
 G. Other Deductions from Surplus. Charge to this account all deduc- 
 tions from surplus made to extinguish discount on stocks outstanding, 
 optional amortization of debt discount and expense, deductions because 
 of erroneous accounting in prior fiscal periods, and all other deductions 
 from surplus not provided for elsewhere. 
 
 NOTE. A complete analysis of this Account will be required in annual reports of 
 corporations to the Railroad Commission. 
 
 115. MISCELLANEOUS ADDITIONS TO SURPLUS : 
 
 Credit to this account all additions to surplus due to erroneous 
 accounting in previous fiscal periods, bad debts collected after being 
 written off. profits arising from the sale of securities or other property, 
 etc. 
 
 OPERATING REVENUES. 
 
 Hi r> a in ill fi ni<l. I>y revenues, as the word is used herein, are meant 
 all amounts of money which the corporation receives or becomes law- 
 fully entitled to recover for services rendered, for products sold, as 
 <_TOSS profits on merchandise sold, or as a return upon its property (or 
 interest in property). Revenues are classified as OPERATING REVENUES 
 
 and NON-OPERATING REVENUES. 
 
 Operating I?> r< i/n<. v <lipm<L Operating revenues are those derived 
 from the sale of products and merchandise from services rendered, 
 and from return on property used by the person or corporation in its 
 own operations.
 
 38 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 Non-operating Revenues defined. Non-operating revenues are those 
 derived as a return upon the property of the corporation in the hands 
 of others or from its interests in property in the hands of others. They 
 may be sub-classified as RENTS. INTEREST. DIVIDENDS, and MISCELLANEOUS. 
 
 Revenue Deductions defined. Revenue deductions include EXPENSES. 
 
 TAXES, DEPRECIATION, and UNCOLLECTIBLE BILLS. 
 Operating Revenues Electric. 
 
 R-l. MUNICIPAL STREET LIGHTING ARC' : 
 
 Credit to this account all revenues derived firm the lighting of 
 streets, roads, parks, pla/as. etc., for municipal corporations by means 
 of arc lamps. 
 
 R-2. MUNICIPAL STREET LIGHTING INCANDESCENT: 
 
 Credit to this account all revenues derived from the lighting of 
 streets, roads, plazas, etc., for municipal corporations by means of in- 
 candescent lamps. 
 
 NOTE. In case municipal street lighting is supplied on meter basis, and such 
 7-egistration is not separately metered so as to show the revenue derived under the 
 two foregoing accounts, the amounts may be apportioned between the two accounts 
 on the relative number of each kind of lamps on the circuit. 
 
 R-3. MUNICIPAL LIGHTING MISCELLANEOUS : 
 
 Credit to this account all revenues derived from lighting municipal 
 buildings, docks, wharves, corporation yards, etc.. by means of electric 
 lamps and from electric energy supplied primarily for such purpose at 
 lighting rates. 
 
 R-4. MUNICIPAL POWER: 
 
 Credit to this account all revenues derived from municipal corpora- 
 tions for electric energy supplied for the production of heat and power. 
 and from electric energy supplied primarily for such purposes at power 
 or special rates. (Do not include power for street railways, s, e 
 Account No. R-9.) 
 
 R-5. COMMERCIAL LIGHTING FLAT RATE: 
 
 Credit to this account all revenues derived from consumers, other 
 than municipal corporations, counties and states, for electric lighting 
 at flat rates per year, per month, per night, per hour or otln-r time 
 units, or on any basis independent of the quantity of energy supplied. 
 
 NOTE. When fan motors, irons, and other minor electric appliances (excluding 
 electric ranges or general hot water heaters), from which revenues are derived at 
 flat rates, are attached to a circuit, the prime purpose of which is the furnishing of 
 light, the revenue derived therefrom shall be Included in this account. 
 
 R-6. COMMERCIAL LIGHTING METKRED : 
 
 Credit to this account all revenues derived from consumers, other 
 than municipal corporations for measured electric cnercy supplied for
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 39 
 
 electric lighting- where the total revenue is dependent on the. quantity 
 of energy supplied. 
 
 NOTE. Where any electric energy flowing through any meter is used by any other 
 consumer than a municipal corporation for both arc and incandescent lighting, or for 
 lighting and incidentally for power purposes, such as running fans, sewing machines, 
 etc., the revenue derived therefrom shall be credited to this account. 
 
 R-7. COMMERCIAL POWERFLAT RATE: 
 
 Credit to this account all revenues derived from all consumers other 
 than municipal, railroad and other electrical corporations, for electrical 
 energy supplied by heat or power at special flat rates per year, per 
 month, per night, per hour or other time units, or on any basis inde- 
 pendent of the quantity of energy supplied. 
 
 R-8. COMMERCIAL POWER METERED: 
 
 Credit to this account all revenues derived from consumers, except 
 municipal, railroad, and other electrical corporations, for measured 
 electrical energy supplied for heat or power at special heat or power 
 rates, where the total revenue is dependent on the quantity of energy 
 supplied. 
 
 R-9. RAILWAY POWER: 
 
 Credit to this account all revenue derived from electric energy sold 
 to street and other railroad corporations and municipal corporations 
 for the propulsion of their cars and for other purposes incident to their 
 railway operations. If such energy is incidentally used for lighting 
 also, but the portion used for lighting is not separately measured, the 
 revenues therefrom shall be included in this account. 
 
 R-10. OTHER ELECTRICAL CORPORATIONS: 
 
 Include in this account all revenues derived from the electric energy 
 sold to other electrical corporations to be by them distributed over their 
 own lines to consumers. If any portion of such energy is incidentally 
 consumed by such corporation for their own benefit, whether for light, 
 heat or power, it shall be included herein if not separately measured, 
 or if included in the same contract with that which is distributed by 
 them to consumers. 
 
 R-ll. RENT OF METERS: 
 
 Credit to this account all revenues derived from the renting of meters, 
 whether for use in municipal, commercial or miscellaneous service. It 
 is not the intention to require that the difference between energy con- 
 sumed and minimum rate (when consumption at regular rate is less 
 than the agreed minimum rate) be considered as meter rent. 
 
 R-12. BREAKDOWN SERVICE: 
 
 Credit to this account all revenues derived from the insurance of a 
 supply of electric energy to a stipulated amount to concerns ordinarily
 
 40 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 producing their own or procuring it from other sources than the cor- 
 poration acting as insurer. 
 
 R-13. JOINT ELECTRIC RENT REVENUE : 
 
 When any corporation engages in electric operations for the produc- 
 tion of some of its product for the benefit of another, or others, under 
 an arrangement for apportioning the expense upon the basis of tin- 
 relative amounts of benefit to the several participants in the arrange- 
 ment, if such arrangement provides for the receipt by the corporation 
 of any profit or return upon its property, such profit or return upon 
 property shall, as it accrues, be credited month by month to this ac- 
 count. Such profit or return must be over and above any provision for 
 wear and tear and depreciation of plant involved in the said pro- 
 duction, and the amount thereof must be as provided in the arrange- 
 ment under which the joint production occurs. 
 
 R-14. MISCELLANEOUS ELECTRIC REVENUES : 
 
 Credit to this account all revenues derived from consumers other 
 than municipal corporations for the supply of electric energy and 
 service and from other electric corporations not includible in any of 
 the foregoing accounts, such as temporary lighting for carnivals, cur- 
 rent supplied contractors constructing buildings, etc. 
 
 Other Operating Revenues. 
 
 R-15. RENT OF ELECTRIC APPLIANCES: 
 
 Credit to this account all revenues derived from the letting of electric 
 motors, fans, heating appliances, batteries, lamps, and other electric 
 apparatus and appliances (except meters) to others than municipal 
 corporations. Where the contract of LETTING names only a single con- 
 sideration for both the letting and maintenance of the appliances so 
 let, the entire revenue shall be included in this account. 
 
 R-16. ELECTRIC MERCHANDISE AND JOBBING REVENUE : 
 
 Credit to this account all receipts from the sale of electric merchan- 
 dise and from electric jobbing. Charge to this account the cost to the 
 accounting corporation of electric merchandise sold; such cost includes 
 transportation charges paid on such goods. 
 
 Credit also to this account the profit or commission accruing to the 
 corporation on all jobbing work performed by il as <t<i< nt un<l< > a<i< net/ 
 contracts, whereunder it undertakes to do jobbing work for another for 
 a stipulated profit or commission upon its actual expense for labor. 
 materials and supplies. 
 
 NOTE A. In its annual report to the Railroad Commission, tlio reporting corpora- 
 tion will be required i Mfdyze the credits and debits to tin's account. 
 
 NOTE B. This account does not include receipt* I'rom the sale of superseded 
 equipment, or of junk or other scrap or salvage.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 41 
 
 R-17. SALE OF BY-PRODUCTS : 
 
 Credit to this account all revenue derived from the sale of ashes, 
 cinders, chemical \vaste. gas producer residuals, and other by-products 
 of electric operations. 
 
 R-18. STEAM SALES REVENUE: 
 
 Credit to this account all revenue derived from the sale of steam 
 produced in or in conjunction with the electrical department. 
 
 OPERATING EXPENSE ACCOUNTS. 
 
 OPERATING EXPENSES DEFINED: 
 
 By the operating expenses of a corporation are meant such expenses 
 as are necessary to the maintenance of the corporate organization, the 
 rendering of services required or authorized by law, the sale of mer- 
 chandise, the production (including herein capital consumed) and dis- 
 position of the commodities produced, and to the collection of the 
 revenues therefor. Expenses directly incident to the collection of non- 
 operating revenues and the maintenance of the property from which 
 non-operating revenues are derived are excluded from operating 
 expenses. 
 
 DEFINITIONS OF CERTAIN TERMS USED IN CONNECTION WITH EXPENSE 
 ACCOUNTS : 
 
 Except where some other meaning is clearly specified in the defini- 
 tions of the accounts, the following words, wherever used hereunder, 
 have the meanings below stated : 
 
 Cost means cash or money cost, and not price based on a term of 
 credit. 
 
 Labor means human services of whatever character. 
 
 Cost of labor includes wages, salaries and fees paid to persons for 
 their services. 
 
 Cost of materials and supplies includes all specifically assignable 
 transportation charges incurred in obtaining the delivery of such 
 materials and supplies upon the premises of the purchaser, and cost of 
 any special tests made thereon prior to their acceptance; and in case 
 the accounting person or corporation desires, it may include a suitable 
 proportion of store expenses (when the materials and supplies are 
 passed through stores) and the cost of further transportation to the 
 place of consumption, and a suitable proportion of the expenses of the 
 purchasing department, in which case a corresponding credit shall be 
 made to the suitable expense account as hereinafter provided. 
 
 Cost of repairs, when made by the accounting person or corporation,
 
 42 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATION-. 
 
 includes cost. of lal>nr expended and material consumed, less salvage. 
 if any. 
 
 NOTE. It is not required that the transportation element of cost shall be assigned 
 with a greater degree of accuracy than to the nearest cent per unit of material or 
 supply. Where a. single transportation item covers a multitude of things the portion 
 of expense not assigned to specific things should be charged to the same account 
 that store expenses are charged to. 
 
 GENERAL ACCOUNTS. 
 
 PRODUCTION EXPENSES. 
 
 TRANSMISSION EXPENSES. 
 
 DISTRIBUTION EXPENSES. 
 
 COMMERCIAL EXPENSES. 
 
 GENERAL AND MISCELLANEOUS EXPENSES. 
 
 TAXES. 
 
 DEPRECIATION, ETC. 
 
 Production Expenses. 
 
 E-l. SUPERINTENDENCE: 
 
 Charge to this account salaries and expenses of superintendents and 
 
 assistants, chemists, clerks, janitors, watchmen, elevatormen. and also 
 that portion of the salaries and expenses of the engineering staff assign- 
 able to the generating plant. 
 
 E-2. WATER COLLECTION LABOR AND EXPENSES : 
 
 Charge to this account the cost of patrolling and tending all reser- 
 voirs, dams and headgates, ditches, pipe lines, flumes, tunnels and fore- 
 bays. This account shall include all labor and expenses, cost of com- 
 missary and supplies, livery, feed, etc., upkeep of furniture and fixtures 
 m camp and houses occupied by ditch tenders, the cleaning of channels, 
 regulating headgates and spillway, raking screens, caulking of flumes, 
 oiling and cleaning air vents and valves, gauging water, and .all other 
 expense of collecting and conveying water to and inclusive of forebays. 
 
 E-3. WATER FOR HYDRAULIC POWER: 
 
 Charge to this account the cost of all water purchased for the pur- 
 pose of operating hydraulic power plants in the electrical department. 
 
 E-4. STEAM GENERATION LABOR: 
 
 Charge to this account salaries of chief engineer, assistant engineers. 
 oilers, wipers, machinists, water tenders, firemen, coal handlers, boiler 
 cleaners, pump feed men, and labor of all kinds not above specified 
 elsewhere, in and about the premises having to do with making of steam. 
 
 E-5. FUEL FOR STEAM : 
 
 Charge to this account the cost of fuel, whether coal or oil, used under 
 the boilers for electric generation, at the cost delivered in the bunkers or 
 tanks. 
 
 E-6. STEAM GENERATOR SUPPLIES: 
 
 Charge to this account the cost of all supplies, tools, etc., used
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 43 
 
 specifically in the steam plant which are consumed in operating ex- 
 penses, the replacement of which does not constitute a repair or 
 renewal ; also the cost of repairs of such tools. This includes such 
 matters as waste, packing, wipers, gauge glasses, gauge washers, man- 
 hole gaskets, handhole gaskets, fire room tools, steam and air holes, 
 bolts, screws, nails, tools, etc. Also include in this account the cost of 
 feed water and water for condensers ; also the cost of boiler compound. 
 
 E-7. STEAM FROM OTHER SOURCES: 
 
 Charge to this account the cost of all purchased or jointly produced 
 steam consumed in the power plant of the electric department. 
 
 XOTE. In ease such steam is jointly produced, f. e., produced by another person or 
 corporation under a joint arrangement for sharing the cost of production in propor- 
 tion to the benefits to the several participants, the charge to this account may include 
 a proportion to CG\>T depreciation of plant employed as well as a proportion of direct 
 expense, but it must not include any allowance or return upon the cost or value 
 of the plant, such allowance or return upon property being chargeable to Account 
 No. 108, "Other Rent Deductions." 
 
 E-8. PRODUCER GAS LABOR: 
 
 Charge to this account the cost of all labor in connection with gas 
 generating apparatus and devices, including gas makers and their 
 assistants, pump men. and all other labor having to do with the produc- 
 tion of power gas. 
 
 E-9. FUEL FOR GAS: 
 
 Charge to this account the cost of fuel used for generating producer 
 gas. 
 
 E-10. PRODUCER GAS SUPPLIES: 
 
 Charge to this account the cost of all supplies, tools, etc., used spe- 
 cifically in the production of gas for power purposes of electric 
 department; also charge to this account the cost of water, repairs of 
 tools where the replacement does not constitute a repair or renewal, etc. 
 
 E-ll. POWER GAS FROM OTHER SOURCES: 
 
 Charge to this account the cost of all gas consumed in the gas power 
 plants of electric generating stations, but not produced in the electric 
 department ; this includes the cost of gas produced for the corporation 
 by another corporation under any joint agreement for the sharing of 
 the expense (upon the basis of the relative amount of benefit to the 
 several participants), inclusive of provision in such expense for 
 depreciation of plant, but exclusive of allowance for profit or return 
 upon the value of property used in such production. 
 
 E-12. ELECTRIC PLANT LABOR: 
 
 Charge to this account the cost of all labor in connection with the 
 electric generating apparatus and devices, beginning with the prime
 
 44 CLASSIFICATION OF ACCOUNTS. ELKCTRIC CORPORATIONS. 
 
 mover direct connected or belted to the generators, and including the 
 switchboard, feeder terminal board and to where the electric current 
 arrives at bus bars or the transmission or distribution system. 
 
 E-13. ELECTRIC PLANT SUPPLIES: 
 
 Charge to this account the cost of all supplies, tools, etc.. used specifi- 
 cally in electric plants, such as waste, lubricants, packing, graphite, etc. 
 
 E-14. ELECTRIC ENERGY FROM OTHER SOURCES : 
 
 Charge to this account the cost, at the point of delivery to the 
 corporation, of all electric energy purchased or produced for the cor- 
 poration by another corporation under any joint arrangement for the 
 sharing of the expense (upon the basis of the relative amounts of bene- 
 fit derived by the several participants), inclusive of provision in such 
 expense for depreciation of plant, but exclusive of allowance for profit 
 or return upon the value of the property used in such production. 
 
 E-15. GENERAL LABOR AND SUPPLIES: 
 
 Charge to this account the cost of all material and labor and expenses 
 not incorporated in the foregoing accounts, or supplies for general 
 station purposes. This account includes labor of cooks and waiters, 
 boarding house attendants, watchmen, sweepers, etc.; also commissary 
 supplies, brooms, house and club room furniture, fixtures, etc. 
 
 NOTE. If the boarding house furnished any service to labor in other departments. 
 proportionate expense, based upon the number of meals furnished, is to !><> transferred 
 to and shown to the appropriate sub-accounts. Cash received for any transient 
 services should be credited to this account. 
 
 E-16. REPAIRS TO DAMS, WATER CONDUITS AND PENSTOCKS: 
 
 Charge to this account the cost of repairing all reservoirs, dams, 
 canals, aqueducts and penstocks devoted to the utilization of water 
 power and the delivery of water to the headgate of the turbine or 
 water wheel ; also that of all wasteways from the outlet of the draft 
 tube to the final point of discharge. This includes repairs to all gates. 
 valves and other accessories of such reservoirs, dams, etc. ; also waste- 
 ways, sluices, forebays, grids, walls, fences, etc., for the protection of 
 such canals and penstocks, and all trestles and other supporting struc- 
 tures; also all viaducts, bridges, foot-bridges, etc., over and accessary 
 to and necessitated by such canals, aqueducts and penstocks; also cost 
 of repairing all buildinus in connection therewith, such as dwellings. 
 stables, cookhouses, clubhouses, etc.: also water wells and pumps. 
 
 E-17. REPAIRS TO I'OWKR PLANT l>riu>iN<;s AND : IKNKRAI. STRITTTRKS : 
 Charge to this account the cost of repairing buildings to be used for 
 housing power generating plants. This account includes cost of repair- 
 ing permanent foundations, drainage, gas and water pipes and connec- 
 tions, grounds, and furniture and fixtures when permanently attached 
 to and made a part of the buildings: also cost of repairing all necessary
 
 CLASSIFICATION OP ACCOt'XTS, ELECTRIC CORPORATIONS. 45 
 
 buildings in connection therewith such as dwellings, stables, cookhouses, 
 clubhouses, etc.; also water wells and pumps. 
 
 E-18. KEPAIRS TO HYDRAULIC POWER PLANT EQUIPMENT: 
 
 Charge to this account the cost of repairing all water wheels and 
 turbines devoted to the generation of electrical energy, including 
 foundations and settings of such hydraulic equipment, their governors 
 and all apparatus appurtenant thereto from the headgates and gov- 
 ernors to wasteways. Include also the cost of repairing all electric gen- 
 erating apparatus driven by hydraulic power and rotaries and motor 
 generating sets, exciters, etc., when not installed in connection with 
 transmission systems, together with the specially provided foundations 
 and settings. Include in this account also the cost of repairing all 
 electric equipment of power plants, embracing bus bars, station switch- 
 boards, and such equipment as circuit breakers, switches, meters and 
 their settings, headgate motors and other electric apparatus. Eepairs 
 to belts, pulleys, shafting and other power transmission apparatus in 
 the hydraulic power plant will also be included in this account. 
 
 E-19. REPAIRS TO BOILERS. FURNACES AND ACCESSORIES: 
 
 Charge to this account the cost of repairing all furnaces, fuel oil 
 tanks and pipe lines, boilers and boiler apparatus and accessories 
 devoted to the production of steam for use in generating electrical 
 energy. This includes boilers and valves thereto attached, appurtenant 
 furnaces and grates, and flues leading to smokestacks and chimneys, 
 find the specially provided foundations and settings of such boilers and 
 appurtenances; also iron smokestacks. It also includes mechanical 
 stokers and other like apparatus for regulating the supply of fuel, etc., 
 feed and hot water heaters and economizers, injectors, filters, feed 
 pumps, blower pumps, coal conveyors, ash conveyors, water pipes, steam 
 traps, drains and separators, and pipes for conducting steam from the 
 boiler to the engine or the gas producers, etc. It does not include 
 repairs to steam pipes whose primary purpose is the heating of 
 buildings. 
 
 E-20. REPAIRS TO STEAM POWER PLANT EQUIPMENT: 
 
 Charge to this account the cost of repairing all steam engines devoted 
 to the production of electrical energy. This includes the specially pro- 
 vided foundations and settings for such engines. The engine, whether 
 reciprocating or rotary (such as steam turbines), shall be considered 1o 
 include the throttle or inlet valve and the governor; also condensers, air 
 and circulating pumps, lubricating system, etc., but not the steam pipe 
 from the boiler. Where the electric rotor is mounted on the engine 
 shaft, the shaft will be considered a part of the steam engine and the 
 electric rotor will be considered a part of the electrical equipment ; also
 
 46 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 the cost of repairing all electric generating apparatus driven by engines 
 operated by steam; and the rotaries and motor generator sets, exciters. 
 etc., when not installed in connection with transmission system. This 
 includes the specially provided foundations and settings of such appa- 
 ratus; also the cost of repairing all other electric equipment of gener- 
 ating stations, such as station switchboards, and their equipment and 
 their foundations and settings; also pumps, motors, air compressor 
 motors, etc. 
 
 E-21. REPAIRS TO GAS PRODUCERS AND ACCESSORIES: 
 
 Charge to this account the cost of repairing producers and accessories 
 devoted to the production of gas for the purposes of operating electric 
 generators, including the cost of repairing specially provided founda- 
 tions and settings for such producers and accessories; also include the 
 cost of repairing producers, economizers, regenerators, vaporizers, strain 
 injectors, scrubbers, exhauster outfits, seals, specially provided boilers 
 and pumps, flues and piping, blower engines, pipes for the conduction 
 of gas from such producers to holders and gas engines, holders for 
 producer gas, exhaust pipes from gas engines, etc. Do not include cost 
 of repairing pipes whose primary purpose is the heating of buildings, 
 nor power transmission apparatus, or water pipes, steam pipes, water 
 pumps or inspirators. 
 
 E-22. REPAIRS TO GAS POWER PLANT EQUIPMENT : 
 
 Charge to this account the cost of repairing all gas engines devoted to 
 the production of electrical energy, including the specially provided 
 foundations and settings of such apparatus. The engine includes the 
 inlet valve, governor and ignition starting apparatus, but not the pipe 
 leading from the gas holder. Where the electric rotor is mounted on 
 the engine shaft, the shaft will be considered a part of the engine and 
 the rotor will be considered a part of the electrical equipment. Include 
 also the cost of repairing all electric generating apparatus driven bv 
 engines operated by gas; and rotaries, motor-generator sets, exciters. 
 etc., when not installed in connection with transmission syMeins. This 
 includes cost of repairing the specially provided foundations and 
 settings of such apparatus; also the cost of repairing all other electric 
 equipment of generating stations, such as bus bars, station switchboards 
 and equipment, and their foundations and settings; also pump motors, 
 air compressor motors, etc. 
 E-23. REPAIRS TO MiscKi.i.ANKors PKonrrnoN KQCIPMKNT : 
 
 ( 'hari>'e to this account the cost of repairing all miscellaneous equip- 
 ment used in the production of electrical energy which is not iueludible 
 in any of the foregoing accounts. This includes repairs to tools and
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 47 
 
 appliances (working stock only), wagons, harness, autos, motorcycles, 
 bicycles, furniture and fixtures, roads, trestles, bridges, etc., where 
 specifically used in the production of electrical energy. 
 
 NOTE. Where any items of miscellaneous power plant equipment are jointly used 
 with transmission, distribution or other departments, the cost of such repairs shali be 
 included in appropriate sub-accounts under "General Expense." 
 
 Transmission Expenses. 
 
 E-24. SUPERINTENDENCE: 
 
 Charge to this account the salaries and expenses of superintendents 
 and assistants, chemists, clerks, janitors, watchmen, elevator men; also 
 portions of the salaries and expenses of the engineering staff. 
 
 E-25. INSPECTING AND PATROLLING: 
 
 Charge to this account all labor and expense of patrolmen engaged in 
 inspecting and patrolling the transmission system, including the testing 
 of the lines, and repairs of minor character made by patrolmen. 
 
 E-26. SUB-STATION LABOR: 
 
 Charge to this account the cost of all labor employed in superintend- 
 ing and operating transmission sub-stations, including not only that of 
 regulators, brushmen, and others engaged in operating the electric 
 apparatus, but also that of clerks, janitors, watchmen, etc. 
 
 E-27. SUB-STATION SUPPLIES AND EXPENSES: 
 
 Charge to this account the cost of supplies consumed and expenses 
 incurred in connection with the operation of transmission sub-stations, 
 such as telephone rents, light, heat, etc. 
 
 E-28. GENERAL LABOR AND SUPPLIES: 
 
 Charge to this account the cost of all material and labor expended 
 and expenses not includible in the foregoing accounts, inclusive of load 
 dispatchers and assistants. 
 
 E-29. KEPAIRS TO OVERHEAD TRANSMISSION SYSTEM: 
 
 Charge to this account the cost of repairing towers, structures, poles, 
 cross-arms and insulator pins ; braces, brackets and other pole fixtures ; 
 guys and other supports for holding towers, structures and poles in 
 position and the cost of repairing cables, wires, insulators and insulating 
 material. 
 E-30. REPAIRS TO UNDERGROUND TRANSMISSION SYSTEM : 
 
 Charge to this account the cost of repairing conduits required for 
 underground wires and cables, including manholes, ducts, pipes, sewer 
 connections, sewer traps, and all material necessary for the completion 
 of the underground conduit system devoted to the protection of the
 
 48 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATION- 
 
 transmission systems; also the cost of repairing cables and insulating 
 material. 
 
 NOTE. Where underground conduits (airy wires of disti ibutiun and Irani 
 service, the prime purpose for which the installation was made shall d.-t.-rniine their 
 inclusion in transmission or distribution system. 
 
 E-31. REPAIRS TO SITE-STATION Bun. DISCS .\\n <;KXKKAI. STRUCTURES: 
 Charge to this account the cost of repairing buildings to be used for 
 transmission sub-station purposes, including permanent foundations, 
 drainage, gas and water pipes and connections, grading grounds, and 
 furniture and fixtures when permanently attached to and made a part 
 < f the building. Include also the cost of repairing all necessary build- 
 ings in connection therewith, such as dwellings, stables, cookhouses, 
 clubhouses, etc. ; also water wells and pumps. 
 
 E-32. REPAIRS TO SUB-STATION EQUIPMENT : 
 
 Charge to this account the cost of repairing all equipment of sub- 
 stations, such equipment to include electric machinery and apparatus 
 transformers, storage batteries, furnaces, boilers, stoves, elevators, etc., 
 permanently assigned to such stations, but not affixed to the structures 
 thereof. Do not include repairs to laboratory instruments and appar- 
 atus not permanently assigned thereto, nor tools only temporarily 
 assigned to such sub-stations. 
 
 NOTE. Do not include in this account any sub-station equipment devoted to the 
 purposes of distribution operations. Repairs to step-up transformers and sub-stati m 
 equipment installed in power houses for purposes of transmission systems shall he 
 included in this account. 
 
 E-33. REPAIRS TO MISCELLANEOUS TRANSMISSION EQUIPMENT : 
 
 Charge to this account the cost of repairing all miscellaneous equip- 
 ment used in the transmission of electrical energy which is not in- 
 cludible in any of the foregoing accounts. This includes repairs to tools 
 and appliances (working stock only), wagons, harness, autos. motor- 
 cycles, bicycles, furniture and fixtures, roads, trestles, bridges, etc.. 
 where used specifically in the transmission of electrical energy. 
 
 NOTE. Where any items of miscellaneous sub-station equipment are jointly ust-d 
 with production, distribution, or other departments, the cost of repairing such items 
 shall be included in the appropriate sub-accounts under "General Expenses." 
 
 Distribution Expenses. 
 
 E-34. SUPERINTENDENCE: 
 
 Charge to this account the cost of all labor expended for general 
 superintendence. This account should include livery and stable ex- 
 pense, personal expenses, etc. 
 
 E-35. SUB-STATION LABOR: 
 
 Charge to this account the cost of all labor employed in superintend- 
 ing and operating distribution sub-stations, including not only that of 
 i emulators, brushmen. and ethers engaged in operating the electric 
 apparatus, but also that of clerks, janitors, watchmen, etc.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 40 
 
 E-36. SUB-STATION SriMM.n> AND KXPENSES: 
 
 Charge to this account the cost of supplies consumed and expenses 
 incurred in eonnecti<.n with the operation of distribution sub-stations, 
 such as telephone rents, light, heat. etc. 
 
 E-37. STORAGE BATTERY LABOR : 
 
 Charge to this account the salaries and personal expenses of superin- 
 tendents, clerks, and battery men, including inspectors and testers. 
 
 E-38. STORAGE BATTERY SUPPLIES AND EXPENSES: 
 
 Charlie to this account the cost of acid and distilled water in cells, 
 soda, sponges, brooms, mops, waste, rags, hydrometers, thermometers, 
 automatic cell fillers, rubber hose, gloves, shoes, paint, etc., and brushes 
 for boosters and compensators; also include in this account the cost of 
 renewing worn-out cells, including diaphragms, negative and positive 
 plates, lead in strip, spelter, pails, candles, dry-boards, tank bands, 
 sheet lead, glass plates, glass covers, hydrogen generators, jumpers, 
 clamps, lampblack, etc. 
 
 E-39. SETTING AND REMOVING TRANSFORMERS AND METERS : 
 
 Charge to this account the cost of all supplies consumed and all 
 expenses incurred in connection with the operation of service trans- 
 formers and consumers' meters. This includes such matters as setting 
 and removing transformers and meters, connecting and disconnecting 
 services, and the like. 
 
 E-40. INSPECTING AND PATROLLING: 
 
 Charge to this account the cost of patrolling, testing, etc., including 
 minor repairs made by patrolmen to conductor and insulation thereof 
 in the distribution system. 
 
 E-41. ELECTRIC METER OPERATIONS: 
 
 Charge to this account the salaries and expenses of superintendents 
 and clerks in the meter bureau, also that portion of the salaries of the 
 engineering staff of the corporation assignable to this account ; also the 
 cost of light, heat, ice water, and other supplies and expenses in con- 
 nection with the meter-testing bureau ; and the cost of testing meters on 
 consumers' premises. 
 
 E 12. COMMERCIAL ARC LABOR: 
 
 Charge to this account the cost of all labor employed in trimming 
 and inspecting arc lamps on private consumers' premises and in munici- 
 pal buildings. 
 
 E-43. COMMERCIAL ARC SUPPLIES AND REPAIRS : 
 
 Charge to this account the cost of all supplies (such as carbons, 
 globes, etc.), for arc lamps on private consumers' premises: also in-
 
 -)l> CLASH KK'ATIOX OK A( '( '( M NTS. KI.KCTKit ' CORPORATION^. 
 
 elude in lliis aceoiinl the cost of keeping in repair privale consumers' 
 arc lamps and those in municipal buildings; including sndi matters as 
 setting and removing lamps, repairing parts. ch.mging for repairs and 
 adjustments, and testing during adjustment and after repairs. 
 
 E-44. COMMERCIAL INCANDESCENT LAMP INSTALLATIONS AND RE- 
 NEWALS : 
 
 Charge to this account the cost of the first installation of incandescent 
 lamps on consumers' premises (including cartage and delivery ex- 
 penses), unless consumer is charged for the first installation, or unless 
 it is proper to charge such first installation to capital (see Account 
 No. C-26) ; also include in this account the cost of renewing incan- 
 descent lamps on consumers' premises (including cartage and delivery 
 expenses) and cost of photometering incandescent lamps. Credit to 
 this account any rebate received from the return of stubs, or allowances 
 relating thereto. 
 
 E-45. INSPECTION AND REPAIRS OF CONSUMERS' INSTALLATIONS: 
 
 Charge to this account the cost of inspection of consumers' premises, 
 including such matters as the charge for municipal certificates, and 
 that portion of the salaries and expenses of the engineering staff or of 
 other departments than the distribution department in technical work 
 properly assignable to this account. Also include in this account the 
 cost of all labor and material furnished to consumers for inside work 
 without special charge, including such matters as attention to com- 
 plaints or to improving the character of the service, replacing or repair- 
 ing wiring fixtures of electric appliances, moving appliances from place 
 to place in houses and reconnecting the same, etc. 
 
 E-46. MUNICIPAL STREET ARC LABOR: 
 
 Charge to this account the cost of labor employed in trimming ami 
 inspecting the arc lamps of the municipal street lighting system. 
 
 E-47. MUNICIPAL STREET ARC SUPPLIES: 
 
 Charge to this account the cost of carbons, globes, etc.. for the arc 
 lamps of the municipal street lighting system. 
 
 E-48. GENERAL LABOR AND SUPPLIES: 
 
 Charge to this account the cost of all materials and labor expended. 
 and expenses, not includible in the foregoing accounts. 
 E-49. REPAIRS TO SUB-STATION BUILDINGS AND GENERAL STRUCTURES: 
 
 Charge to this account the cost of repairs to all buildings to be used 
 for distribution sub-station purposes, including excavation, permanent 
 foundations, drainage, gas and water pipes and connections, grading
 
 CLASSIFICATION" OK ACCOI'XTS, KI.KCTKIC CORPORATIONS. 51 
 
 grounds, and furniture and iixfmvs when permanently attached to and 
 made a part of the buildings: also the cost oi:' repairing all necessary 
 buildings in connection therewith, such as dwellings, stables, cook- 
 houses, clubhouses, etc. ; also water wells and pumps. 
 
 NOTE. No charge should be made to this account in respect of a power plant 
 building, even though such building also contains sub-station apparatus. 
 
 E-50. REPAIRS TO SUB-STATION EQUIPMENT: 
 
 Charge to this account the cost of repairing all equipment of dis- 
 tribution sub-stations. Such equipment includes electric machinery and 
 apparatus, transformers, storage batteries, furnaces, boilers, stoves, 
 elevators, etc., permanently assigned to such stations, but not affixed to 
 the structures thereof. It does not include repairs to laboratory in- 
 struments and apparatus not permanently assigned thereto, nor does it 
 include tools only temporarily assigned to such stations. 
 
 NOTE. Include under this account repairs to all transformers and sub-station 
 equipment installed in power plant buildings for purposes of distribution department. 
 
 E-51. REPAIRS TO OVERHEAD DISTRIBUTION SYSTEM : 
 
 Charge to this account the cost of repairs to towers, structures, poles, 
 cross-arms and insulator pins,- braces, brackets, and other pole fixtures, 
 guys and other supports for holding towers, poles and structures in 
 position ; and all labor and expenses in connection with the repair of 
 pole lines or structures for carrying the distribution system, and the 
 cost of repairing main-line conductors and feeders, cables, wires, insula- 
 tors, and insulating material. 
 
 NOTE. If the poles and fixtures are used jointly between transmission and dis- 
 tribution systems, the prime purpose for which the pole line is erected shall determine 
 the account to be charged. 
 
 E-52. REPAIRS TO UNDERGROUND DISTRIBUTION SYSTEM : 
 
 Charge to this account the cost of repairing conduits required for the 
 underground wires and cables, including manholes, ducts and pipes, 
 sewer connections, sewer traps, and the cost of repairing cables and 
 insulating material. 
 
 NOTE. ]f the ducts of the underground system are occupied by wires of the trans- 
 mission system, the prime purpose of which is for the purposes of distribution system, 
 the total cost of repairing such conduits shall be charged to this account. 
 
 E-53. REPAIRS TO LINE TRANSFORMERS AND DEVICES: 
 
 Charge to this account the cost of repairing all overhead and under- 
 ground transformers (including refilling with oil), pole line lightning 
 arresters, transformer cut-out boxes, line cut-out switches, etc., in the 
 distribution system. 
 
 NOTE. Upon filing with the Railroad Commission a notice thereof, the accounting 
 corporation may also include in this account the cost of repairing line transformers 
 and devices temporarily out of service.
 
 02 CLASSIFICATION OF ACCOIX l>. Kl.KCTRIC CORPORATIONS. 
 
 E-54. REPAIRS TO ELECTRIC SERVICES : 
 
 Charge to this account the cost of repairing all conductors (and 
 appurtenant insulation, ducts and supports) connecting the distribu- 
 tion system mains with electric apparatus and appliances in possession 
 of consumers. 
 
 NOTE. The cost of renewing or modifying service shall be charged to this account. 
 
 E-55. REPAIRS TO ELECTRIC METERS: 
 
 Charge to this account the cost of repairing all meters installed for 
 determining the amount of energy delivered to consumers. 
 
 NOTE A. Cost of removing such meters and of setting other nn-t-rs substituted 
 for them shall be charged to this account. 
 
 NOTE B. Upon filing with the Railroad Commission a notice thereof, tin- a count- 
 ing corporation may also include in this account the cost of repairing meters 
 temporarily withdrawn from service 
 
 E-56. REPAIRS TO MUNICIPAL STREET LIGHTING SYSTEM : 
 
 Charge to this account the cost of repairing all lighting equipment 
 operated and maintained under the contracts for public lighting entered 
 into with a municipality, embracing public arc lights. Xernst lamps 
 and incandescent lamps provided for in the contract, and all circuits, 
 poles, cross-arms, pins, braces, insulators and arc supports and ac- 
 cessory equipment required under the terms of the contract. There 
 will not be charged to this account the cost of repairing any equipment 
 properly chargeable to "Distribution System," this account being de- 
 signed to cover only the cost of lighting systems devoted entirely to the 
 municipal contract service. Where the terms of the contract or an ordi- 
 nance of the municipality require extension of mains and repairs for 
 lighting under the terms of the contract, the cost of such extension and 
 repairs, if used solely for public lighting under such contract, will be 
 charged to this account. 
 
 E-57. REPAIRS TO COMMERCIAL ARC LAMPS: 
 
 Charge to this account the cost of repairing all property of the com- 
 pany in commercial arc lamps supplied to consumers (including munic- 
 ipal buildings) where such lamps have an expeetaney of life in service 
 of more than one year. 
 
 NOTE A. Repairing meters supplied to consumers is provided for in a foregoing 
 account and should not be included herein. 
 
 NOTE B. Upon filing with the Railroad Commission a notice thereof, the account- 
 ing corporation may also include in this account the cost of repairing arc lamps 
 temporarily withdrawn from service. 
 
 NOTE C. Include in this account all repairs to glower or Nernst lamps. 
 
 E 58. REPAIRS TO INSTALLATIONS ON CONSUMERS' PREMISES: 
 
 Charge to this account the cost of repairing all equipment installed 
 on consumers' premises for purposes of supplying energy of a certain 
 voltage, kind or character. Repairs to such installations as coming
 
 ri.\s>iKirATiox OF AcrorxTs. ELECTRIC CORPORATIONS. 53 
 
 hereunder would include motor sets for theater lighting, amusement 
 parks, etc. ; also motors, fans. etc. 
 
 NOTE. Do not include in this account repairs to transformers, meters, services, 
 appliances loaned, or commercial arc lamps and lamps installed in connection with 
 rates or renewals thereof. 
 
 E-59. KEPAIRS TO [MISCELLANEOUS DISTRIBUTION EQUIPMENT: 
 
 Charge to this account the cost of repairing all miscellaneous equip- 
 ment used in the distribution of electrical energy which is not includible 
 in any of the foregoing accounts. This includes repairs to tools and 
 appliances (working stock only), wagons and harness, autos, motor- 
 cycles, bicycles, furniture and fixtures, roads, trestles and bridges, 
 where used specifically in the distribution of electrical energy, unless 
 provided for in proper clearing accounts hereinafter described. 
 
 NOTE. Where any item of miscellaneous distribution equipment is used jointly with 
 production, transmission or other departments, the cost of repairs of such items shall 
 be included in appropriate sub-accounts under "General Expense." 
 
 Commercial Expenses. 
 
 E-60. NEW BUSINESS EXPENSES: 
 
 Charge to this account the cost of all material and labor expended in 
 getting new business. This shall include the cost of advertising, print- 
 ing, posters, handbills, commissions paid canvassers, solicitors, and 
 dealers for introduction and sale of electrical appliances, etc., also 
 salaries of advertising manager, collectors, solicitors, together with their 
 personal 'expenses, livery, etc.. and costs of demonstrations and exhi- 
 bitions. 
 
 E-61. FREE INSTALLATION EXPENSES: 
 
 Charge to this account the cost of all material and labor expended in 
 furnishing free house wiring, free connection of appliances and electric 
 Minis, unless the cost of such services are to be paid for by the con- 
 sumers. 
 
 E-62. COMMERCIAL DEPARTMENT SALARIES AND EXPENSES: 
 
 Charge to this account the cost of keeping the accounts of the con- 
 sumers, including a proportion of the salaries and expenses of general 
 officer and assistants in charge of the commercial department, and 
 salaries of bookkeepers and all clerks in the accounting department, 
 having to do with consumers' accounts. This covers all expenses in- 
 curred in determining the amount of sales, and in keeping the accounts 
 of such sales and collections as are not includible in the accounts of 
 indexing and collection divisions. Also rent of offices. 
 
 E-63. COMMERCIAL DEPARTMENT INDEXING : 
 
 Charge to this account the cost of reading or indexing meters, in- 
 cluding indexer's lamps; also badges and carfare and expenses of 
 indexers, etc.
 
 54 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 E-64. COMMERCIAL DEPARTMENT COLLECTIONS: 
 
 Charge to this account the expense of the collection bureau, including 
 collectors' salaries or commissions, badges, carfare, etc. 
 
 E-65. MISCELLANEOUS COMMERCIAL EXPENSES: 
 
 Charge to this account all expenses for salaries and wagt s ;m<l ex- 
 penses not includible in any of the foregoing accounts. 
 
 General and Miscellaneous Expenses. 
 
 E-66. SALARIES OF GENERAL OFFICERS: 
 
 Charge to this account the salaries of general officers, including the 
 President, Vice-Presidents, Secretary. Treasurer, Comptroller, Auditor, 
 General Manager, and all other officers whose jurisdiction extends over 
 the entire business and whose services are not chargeable to any 
 particular department. 
 
 E-67. SALARIES OF GENERAL OFFICE CLERKS: 
 
 Charge to this account the salaries of all clerks and assistants con- 
 nected with the general offices, except such as may be directly engaged 
 in other departments, in which case their compensation should !;< 
 charged to such department directly. Where general office clerks also 
 perform services for other departments, their compensation will in- 
 apportioned accordingly and charged to the respective departmental 
 accounts. 
 
 E-68. MISCELLANEOUS GENERAL OFFICE SUPPLIES AND EXPENSES : 
 
 Charge to this account the cost of all office supplies and expenses, 
 newspapers and periodicals, messenger and janitor service, directories, 
 telegrams, exchange on remittances, etc. Charge also the cost of books, 
 stationery, telephone, repairs of furniture and fixtures, etc. ; also travel- 
 ing, office and incidental expenses of general officers and attendants; 
 also rent of general office buildings. 
 
 E-69. LAW EXPENSES GENERAL: 
 
 Charge to this account all law expenses except those incurred in con- 
 nection with the defense and settlement of injury and damage claims, 
 include also all salaries and expenses of counsel, solicitors and general 
 attorneys, their clerks and attendants, etc. Also include the c-^t <i!' 
 law books, printing briefs, legal forms, testimony, reports, fees and 
 retainers of general counsel and attorneys, court costs and payments of 
 specific notarial and witness fees, expenses of taking depositions, and 
 other general law and court expenses. Expenses of arbitrators of dis- 
 puted points will also be included in this account.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 55 
 
 E-70. RAILROAD COMMISSION EXPENSES: 
 
 Charge to this account all fees, retainers and expenses of counsel, 
 solicitors, attorneys, clerks, attendants, expert witnesses and others 
 whose services are secured in the defense and prosecution of all peti- 
 tions and other transactions before the Railroad Commission of the 
 State of California. Expenses which are made necessary by rules, reg- 
 ulations and orders of the Commission, as improvements of service, 
 additional inspections, etc., will not be charged to this account, but to 
 the appropriate departmental operating expense account. 
 
 E-71. INJURIES AND DAMAGES: 
 
 Charge to this account all damages to or destruction of property 
 other than that owned by the corporation, including the cost of restor- 
 ing the property less insurance or legal damages allowed, and with all 
 expenses incident to the injury and death of employees and other per- 
 sons for whose injury or death the corporation is held liable or in the 
 settlement of which claim allowances are made. This embraces judg- 
 ment for damages and plaintiff's court costs; proportion of salaries and 
 expenses or fees of physicians and surgeons, expenses of undertakers, 
 nurses and hospital expenses; transportation of injured persons; med- 
 ical and surgical appliances ; contributions to hospitals ; and wages and 
 salaries paid to employees while disabled. The salaries and expenses of 
 the corporation's claim agents, adjusters and their assistants will be 
 charged to this account. The compensation of general solicitors and 
 counsel, or other attorneys, of the corporation, while engaged in the 
 defense and settlement of damage suits, will also, be included in this 
 account. If it is desired to open an injuries and damages reserve, and 
 to make charges against operating expenses on account of the injuries 
 raid damages on some arbitrary basis, the amount so charged shall be 
 credited to the "Injuries and Damages Reserve," and the actual 
 expenditure for the purposes above enumerated shall be charged 
 against such reserve account. 
 
 Corporations are at liberty to subdivide this account to show the 
 following expenses : 
 
 Injuries to Persons. 
 Damages to Property. 
 
 "Where such subdivisions are not made, the charge to this account 
 should be so made as to admit of separation over two such subdivisions 
 when called for by the Railroad Commission. 
 E-72. RELIEF DEPARTMENT AND EXPENSES: 
 
 Charge to this account pensions paid to retired employees or repre- 
 sentatives of former employees and expenses in connection therewith, 
 salaries and expenses incurred in conducting a relief department, and 
 contributions made to such department.
 
 56 CLASSIFICATION- OF A( 
 
 >RPORATIONS. 
 
 E-73. ELECTRIC FRANCHISE 
 
 Charge to this account the cost of all service and materials and sup- 
 plies furnished to municipal corporations in compliance with franchise 
 requirements and for which no payment is received by the corporation : 
 also of all direct expense, such as paving and other like matters incurred 
 in compliance with such requirements and for which no reimbursement 
 is received by the corporation. Amounts charged to this account for 
 which there is no direct money outlay shall be credited to Account 
 No. E-86, "Undistributed Adjustments Balance. ? ' 
 
 E-74. OTHER GENERAL EXPENSES: 
 
 Charge to this account such incidental general expenses as are not 
 provided for in the foregoing accounts, such as cost of publishing notices 
 of stockholders' meetings, of election of directors, annual reports in 
 newspapers, and of dividends declared : and fees and expenses paid to 
 directors. 
 
 E-75. INSURANCE: 
 
 Charge to this account monthly proportion of insurance premiums 
 paid insurance companies for fire, fidelity, boiler, casualty, burglar and 
 other insurance. 
 
 NOTE. Charge all insurance premiums that cover insurance extending over a period 
 of one month or more to ledger account "Prepaid Insurance," crediting that account 
 with, the monthly proportion, as charge is made. 
 
 E-76. REPAIRS TO GENERAL S 
 
 Charge to this account the cost of repairing all buildings and other 
 structures of a permanent character devoted to general corporate pur- 
 poses. not restricted to electric operations and not includible in any of 
 the departmental accounts; also repair of all fixtures permanently 
 attached thereto and made a part thereof, such as water pipes and 
 fixtures, steam pipes and fixtures for warming and ventilating, gas pipes 
 and fixtures for lighting, etc.; electric wiring and fixtures for lighting. 
 signaling, etc.; elevators, etc.: and the engines and motors specifically- 
 provided for producing steam for such engines and for heating, electric 
 generators specifically provided for producing current for lighting such 
 buildings, etc. This account includes such piers and other foundations 
 as the buildings in (or in connection with) which they are constructed. 
 and to outlast the first machinery installed and mounted therein. 
 
 NOTE A. Among such buildings may be mentioned general office buildings, general 
 shop buildings, general storehouses, general stable buildings, etc. Where general 
 offices, shops, stables, etc.. are in buildings includible in a department account, as. 
 e. g., in a power station building, no part of the cost of such building shall be charged 
 to this account. This account is provided for structures of a general or miscellaneous 
 character not assignable to any particular department. 
 
 NOTE B. When furnaces and boilers are used primarily for furnishing steam for 
 some particular department and only incidentally for furnishing steam for heating a 
 general building and operating the equipment therein, the entire cost of such furnaces 
 and boilers shall be charged to the appropriate departmental account.
 
 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. OY 
 
 E-77. REPAIRS TO GENERAL EQUIPMENT OFFICE EQUIPMENT: 
 
 Charge to this account the cost of repairing all equipment of general 
 offices, such as desks, chairs, tables, movable safes, filing cases, type- 
 writers, adding machines, etc., drafting-room equipment, and other like 
 office appliances and equipment. Also engineering instruments, if it is 
 not desired to distribute such expenses. 
 
 E-78. REPAIRS TO GENERAL EQUIPMENT SHOP EQUIPMENT: 
 
 Charge to this account the cost of repairing all equipment specially 
 provided for general shops, such as furnaces, boilers, gas producers, 
 engines, electric generators, and other power apparatus used in oper- 
 ating machinery in such shops; machine tools, cranes, hoists, shafting, 
 belts, and like shop equipment ; also such smithing equipment in general 
 shops as is used principally for other general purposes than shoeing 
 horses and repairing vehicles, except as provided for in appropriate 
 clearing accounts hereinafter described. 
 
 E-79. REPAIRS TO GENERAL EQUIPMENT STORE EQUIPMENT: 
 
 Charge to this account the cost of repairing all equipment of general 
 store structures, such as movable counters, movable shelving and other 
 movable equipment of like nature, carts, barrows, trucks, etc., and other 
 apparatus and appliances used in handling materials and supplies. 
 
 NOTE A. Counters, shelving and the like which are permanently attached to the 
 structures shall be charged to Account No. K 76, "Repairs to General Structures," 
 and not to this account. 
 
 NOTE B. If the accounting corporation so desires, this account may be eliminated 
 from operating expenses, and the cost of repairs of equipment listed in this account 
 may be charged to Clearing Account. "Supply Expenses." 
 
 E-80. REPAIRS TO GENERAL EQUIPMENT STABLE AND GARAGE EQUIP- 
 MENT : 
 
 Charge to this account the cost of repairing all equipment of general 
 stables and garages, including harness, drays, wagons, automobiles, and 
 other vehicles, equipment of shoeing shops, harness repair shops, vehicle 
 repair shops, etc. 
 
 NOTE. The accounting corporation may, if it so desires, eliminate this account 
 from operating expenses, and charge the cost of the repair of the equipment listed 
 herein to proper clearing account as hereinafter provided. 
 
 E-81. REPAIRS TO GENERAL EQUIPMENT .MISCELLANEOUS: 
 
 Charge to this account the cost of repairing all other equipment, such 
 as laboratory equipment and other tools and instruments and miscella- 
 neous equipment not includible in the foregoing accounts under 
 ''Repairs to General Equipment/' except as provided for in clearing 
 accounts hereinafter described. 
 
 E-82. REPAIRS TO TELEPHONE LINES: 
 
 Charge to this account the cost of repairing telephone lines for the 
 use of the entire system. These charges should include the cost of wires
 
 58 CLASSIFICATION OP ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 and insulators, cross-arms, poles (where devoted suli-ly in supporting 
 telephone lines), telephone instruments, etc. 
 
 NOTE. Do not include in this account the cost of repairing any portion of poles 
 or supports where jointly used in the transmission or distribution of electric current. 
 
 E-83. REPAIRS TO ROADS, TRESTLES AND BRIDGES : 
 
 Charge to this account the cost of repairing roads, trestles, bridges 
 and tramways required for the transportation of machinery and sup- 
 plies, or the operation of the corporation. 
 
 NOTE. Do not include in this account repairs to any roads, trestles, or bridges 
 which may be solely for the use of Production, Transmission or Distribution systems. 
 (See Accounts No. E-16, E-31 and B-49.) 
 
 E-84. ELECTRIC EXPENSES TRANSFERRED CR. : 
 
 Credit to this account the proportion of operating expenses (includ- 
 ing depreciation and other amortization as well as repairs) chargeable 
 to other coordinate departments (such as gas or street railroad) 
 within the same corporation, but defrayed in the first instance by the 
 electric department. 
 
 NOTE. Do not credit to this account any allowance in the nature of rent or return 
 of the cost or value of property. 
 
 E-85. JOINT OPERATING EXPENSES CR. : 
 
 When any general or miscellaneous operating expenses are assumed 
 by the accounting corporation for the joint benefit of itself and other 
 electric corporations under an arrangement for apportioning such 
 expense the portion chargeable to others should be credited to this 
 account. The portion so credited must not include any allowance for 
 profit or return upon the value of the property. 
 
 NOTE. Bills rendered for joint expenses should show the expenses in detail, and 
 the debtor corporation should distribute the total account to its primary expense 
 accounts. 
 
 E-86. UNDISTRIBUTED ADJUSTMENTS BALANCES: 
 
 At least once a year an inventory of materials and supplies and of 
 tools shall be taken, and the difference between the inventories and the 
 ledger balances shall be debited or credited to this account in case it 
 can not be assigned to specific accounts as provided under Account 
 No. 9, "Material and Supplies." Credit to this account all discounts 
 recovered through the prompt payment of bills for materials and 
 supplies consumed in operation, unless such discounts are applied to 
 the particular bills; also amounts included in expenses, as provided in 
 Account No. E-73, "Electric Franchise Requirements." 
 
 E-87. EXTRAORDINARY REPAIRS: 
 
 Charge to this account and concurrently credit to account, "Reserve 
 for Extraordinary Repairs," the estimated monthly provision for 
 extraordinary repairs necessitated by sleet storms, fire, floods, etc.
 
 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 59 
 
 E-88. RPJPAIRS CHARGED TO RESERVES CR. : 
 
 Credit to this account and charge concurrently to the account, 
 "Reserve for Accrued Depreciation," and amount equal to the cost of 
 extraordinary repairs for which provision has been made in that 
 reserve; also credit to this account and charge concurrently to the 
 insurers or to the insurance reserve an amount equal to the cost of 
 repairs made necessary by casualties when such cost is covered by 
 insurance or an insurance reserve. All such repairs should be charged 
 in the first instance to the proper repair accounts. 
 
 Other Expenses. 
 
 E-89. BY-PRODUCTS EXPENSE: 
 
 Charge to this account the cost of labor and material expended in 
 handling by-products from the sale of which is derived ' ' By-Products 
 Revenue. ' ' 
 
 E-90. STEAM SALES EXPENSE: 
 
 Charge to this account all labor and material expended for the sale 
 of steam; also include proper proportion of production expense where 
 steam is jointly produced for sale to general consumers. 
 
 Taxes. 
 
 E-91. TAXES: 
 
 This account should be charged with (account Taxes Accrued being 
 credited) regular monthly installments sufficient to cover all taxes 
 imposed by lawful authority. 
 
 A. Upon property real, personal and mixed (except assessments 
 for betterment to real estate), which should be charged to account 
 benefited. 
 
 B. Upon earnings in addition to or in lieu of taxes upon 
 property. 
 
 C. All specific licenses or charges levied upon the corporation 
 based upon or with respect to its capital stock, property or 
 business. 
 
 D. The value of all discounts allowed or services rendered in 
 lieu of taxes. 
 
 NOTE. The amount of taxes accrued during any month shall, when the levy is 
 unknown, be estimated, and when the levy is finally determined the estimate shall be 
 corrected in the provision for taxes during the remainder of the year. For example, 
 if at the beginning of the tax year the taxes against the corporation are estimated 
 to be $600 for the year, the estimated monthly charge will be $50. If during the 
 fifth month it is found that the levy is $640, adiustment should be made and a charge 
 of $55 per month made to Taxes for the remaining eight months of the tax year. 
 
 Amortization of General Capital. 
 
 E-92. AMORTIZATION OF FRANCHISES AND PATENTS: 
 
 Charge to this account each month the amount necessary to cover 
 such portions of the life of franchises and patents as have expired or
 
 60 CLASSIFICATION <>F A( T< >! "XTS. KLKCTKMC f< >KP( )RATI( >X>. 
 
 been consumed during the month. The amount so charged shall be 
 concurrently credited 1o an appropriate sub-account under Account 
 No. 30. "Reserve for Amortization of Intangible Capital." 
 
 XOTE. The amount charged to this account shall be based upon a rule deter- 
 mined by the accounting corporation and filed with the Railroad Commission. The 
 purpose "and effect of such rule should be to accumulate by charges equitably dis- 
 tributed throughout the life of any franchise or patent, a reserve that will, at the 
 expiration of its life, equal the original cost. 
 
 E-93. DEPRECIATION OF PI.AXT AND K^TIPMEXT : 
 
 Charge to this account monthly the amount estimated to be necessary 
 to cover the depreciation accruing during the month in the corpora- 
 tion's tangible capital. The amount charged to this account shall be 
 concurrently credited to account. "Reserve for Accrued Depreciation." 
 
 NOTE. Charges to the above depreciation account should be separately reported 
 under the following sub-heads : 
 
 A. Depreciation of Production Capital. 
 
 B. Depreciation of Transmission Capital. 
 
 C. Depreciation of Distribution Capital. 
 
 D. Depreciation of General Capital. 
 
 CLEARING ACCOUNTS. 
 (Not required of Class B and C Corporations.) 
 
 The following accounts are provided for certain expenses which 
 usually affect several classes of operations but need to be brought 
 together in one account in order that the total of the expenses may be 
 known and property distributed. 
 
 An inventory of tools, harness, vehicles, and other materials and 
 supplies in shops, stores, stables, and garages shall be taken at least 
 once a year, and any loss disclosed by such inventory in excess of the 
 amount taken into account through the depreciation currently charged 
 out should be apportioned to the appropriate expense accounts on the 
 basis of charges made since last inventory. 
 
 1. Shop Expenses. This account or appropriate sub-accounts should 
 be arranged so as to record separately the expenses of the ueneral shops 
 as follows: (1) Salary and wages of shop employees; (2) personal and 
 incidental expenses of such employees; (3) materials and supplies for 
 general shop use; (4) repairs of tools, machinery and appliances; 
 (5) rent of shop buildings; (6) depreciation of tools, machinery, and 
 appliances. 
 
 The shop expense account should be cleared by apportioning the 
 total amount of the expenses to the various jobs on an equitable basis. 
 
 2. Siahlt nml <;<irn<i< Ecp*9es. This account or appropriate sub- 
 accounts should be arranged s. as to record M-paratel\ the expenses of 
 stables and garages as follows: 1 Salaries and wages of drivers. 
 chauffeurs, stablemen, izarauemen. and other employees in stables and 
 garages; (2) personal and incidental expenses of such employees: 
 (3) materials and supplies, including fuel and gasoline, harness, tires.
 
 XJOCXTS. ELECTRIC CORPORATIONS. 6] 
 
 and other supplies for stables and garages; (4) repairs of automobiles 
 and other vehicles and harness; (5) rent of buildings or vehicles; 
 (6) depreciation on vehicles, horses, harness, etc. 
 
 Credit to this account any charges for services performed for others. 
 
 A record should be kept of the use of teams and automobiles, and 
 each month the total expense should be apportioned to the proper 
 accounts according to use. or the debits to the expense accounts may be 
 made at rates per hour of service which have been found to be fair and 
 to distribute the total expense equitably. 
 
 '3. Tool E.I'IH nx( . Charge to this account all expense for tools (except 
 shop tools carried as supplies unissued). It includes the cost of small 
 hand tools of which no account is kept after issue ; the cost of repairing 
 tools; the cost of tools lost or stolen, and depreciation on tools taken 
 out of service because of breakage or other deterioration. 
 
 This account should be cleared by adding to the expense of repairs 
 and cost of plant installed each month such amounts as will equitably 
 distribute the total monthly expense for tools. 
 
 4. Xupi>l>/ E.rpense. Charge to this account or to appropriate sub- 
 accounts all expenses (except insurance and taxes) incurred directly 
 in connection with the purchase, storage, handling, and distribution of 
 materials and supplies and stationery. It includes the pay and expenses 
 of purchasing agents, managers of stores, clerks, and laborers; rents of 
 stores, cost of lighting, heating, and undistributed freight and express 
 charges, and the estimated depreciation on supplies due to breakage, 
 leakage, shortage, and wear and tear. This account should be cleared 
 by adding to the cost of materials and supplies passing through stores 
 a suitable loading charge which will equitably distribute the total 
 cost of conducting the stores, and by adding to the cost of such supplies 
 as are bought by the purchasing department pro rata share of the total 
 expenses of the purchasing department. 
 
 5. Engineering E.r[>< nse. Charge to this account or appropriate sub- 
 accounts all expenses for engineering so as to show separately the 
 following: (1) Salaries and wages; (2) personal and incidental ex- 
 penses of engineering department employees; (3) rent of office and 
 office expenses. 
 
 This account should be cleared by apportioning the total expenses to 
 operating expense and fixed capital accounts on the basis of service 
 rendered, as determined by the actual time devoted to particular jobs 
 or an equitable basis fixed by the officers of the corporation. 
 
 (i. I'Jutif SIIJH rrixioii E.r/,< iis< . Charge to this account the cost of 
 general supervision of the maintenance and construction of the plant 
 where a separate department of the corporation's organization is 
 charged with such supervision. It includes the pay and expenses of
 
 62 CLASSIFICATION OF ACCOUNTS, ELECTRIC CORPORATIONS. 
 
 the plant supervising officers, such as the general plant superintendent, 
 district plant superintendent, plant engineers and their office and field 
 forces, charged with planning for and superintending the work of 
 maintenance and plant construction. 
 
 The account or appropriate sub-accounts should be so arranged as to 
 show in detail the expenses of the plant supervision department as 
 follows: (1) Salaries and wages; (2) personal and incidental expenses 
 of employees; (3) rent of office and office expenses. 
 
 This account should be cleared each month by charging directly to 
 the appropriate accounts such expenses as can be allocated to particular 
 pieces of work and by charging out the balance on the basis of labor 
 employed in all construction or maintenance work in progress during 
 the month. 
 
 NOTE. The pay of general foreman and foremen in direct charge of jobs should 
 be included in the cost of job and not charged to this account. 
 
 Every electric corporation shall include in its expense depreciation 
 charges for the purpose of creating proper and adequate reserves to 
 cover the expense of depreciation currently accruing in its fixed capital, 
 and for that purpose three accounts are provided for the expense of 
 depreciation as above: Account E-93, "Depreciation of Plant and 
 Equipment;" Account E-87, "Extraordinary Repairs;" Account 
 E-92, "Amortization of Franchises and Patents." 
 
 By "Expense of Depreciation" is meant the loss suffered through 
 the current lessening in value of tangible property from wear and 
 tear, decay, obsolescense, or inadequacy resulting from use, age, physi- 
 cal change or supersession by reason of new inventions and discoveries, 
 changes in popular demand, or public requirements ; also losses suffered 
 through destruction of property by extraordinary casualties and de- 
 creases in the value of intangible property through lapse of time. 
 
 The amount charged as expense of depreciation shall be based upon 
 values determined by the accounting corporation. Such rules may be 
 devised from a consideration of the corporation's history and experi- 
 ence. Whatever may be the basis, the rules and a sworn statement of 
 the facts and expert opinions and estimates upon which they are based 
 shall be filed with the Railroad Commission. Each amendment of any 
 rule, together with statements and opinions, shall be also filed with the 
 Railroad Commission, before they are put into effect by the accounting 
 corporation, and shall show the date when they arc to become effective.
 
 ELECTRIC CORPORATIONS. 
 
 LIST OF ACCOUNTS. 
 
 ASSET ACCOUNTS. 
 
 PAGE. 
 
 1. Fixed Capital Installed Prior to January 1, 1913 
 
 2. Fixed Capital Installed Since December 31, 1912 7 
 
 3. Cash and Deposits 7 
 
 A. Cash 7 
 
 B. Special Deposits 7 
 
 4. Notes Receivable 7 
 
 5. Accounts Receivable 7 
 
 A. Accounts with System Corporations 7 
 
 B. Due from Consumers and Agents 8 
 
 C. Miscellaneous Accounts Receivable 8 
 
 6. Interest and Dividends Receivable 8 
 
 7. Other Current Assets 8 
 
 8. Investments 8 
 
 A. Securities of Other Corporations 8 
 
 B. Advances to System Corporations for Construction, Equipment and 
 
 Betterments 9 
 
 C. Miscellaneous Investments 9 
 
 9. Materials and Supplies 9 
 
 10. Sinking: Funds 10 
 
 11. Other Special Funds _i 10 
 
 12. Treasury Securities 10 
 
 13. Prepaid Expense 10 
 
 A. Prepaid Rents -. 10 
 
 B. Prepaid Taxes . 10 
 
 C. Prepaid Insurance 11 
 
 D. Other Prepayments 11 
 
 14. Unamortized Discount on Securities and Expenses 11 
 
 15. Other Suspense 11 
 
 16. Construction Work in Progress 12 
 
 17. Corporate Deficit 12 
 
 LIABILITY ACCOUNTS. 
 
 18. Capital Stock 12 
 
 19. Installments on Stock Subscription 12 
 
 20. Funded Debt 12 
 
 21. Receivers' Certificates 13 
 
 22. Advances from System Corporations for Construction, Equipment and 
 
 Betterments 13 
 
 23. Notes Payable 13 
 
 24. Accounts Payable 13 
 
 A. Accounts with System Corporations 13 
 
 I'.. Audited Vouchers 14 
 
 ( '. Consumers' Deposits 14 
 
 I>. Miscellaneous Accounts Payable 14 
 
 25. Interest Accrued 14 
 
 20. Taxes Acr-rued 14 
 
 27. Dividends Declared 14 
 
 lis. Servjee Billed in Advance - 14 
 
 29. Reserve for Accrued Depreciation 15 
 
 30. Reserve I'm- A morli/.at ion of InlaimiMe Capital 15 
 
 31. Unamort i/ed Premium on Debt 16 
 
 32. Casualty iind Insurance Reserves . 10 
 
 33. Income Invested Since December 31. 1912. in Fixed Capital 16
 
 64 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 PACK. 
 
 34.' Res.-rves Invested in Sinking Funds 17 
 
 3-"). Other Reserves from Income or Surplus 37 
 
 36. Corporate Surplus Unappropriated 17 
 
 FIXED CAPITAL. 
 Intangible Capital. 
 
 C- 1. Organization 18 
 
 C 2. Franchise (Electric) 1^ 
 
 C- 3. Patent Rights __.. I'.i 
 
 C- 4. Other Intangible Capital 111 
 
 TANGIBLE CAPITAL. 
 
 Landed Capital. 
 
 C- 5. Land Devoted to Electric Operations in 
 
 Production Capital. 
 
 C- (5. Dams. Water Conduits and Penstocks 2o 
 
 C- 7. Power Plant Buildings and General Structures 2<> 
 
 C- S. Hydraulic Power Plant Equipment L 1 * 
 
 C- !>. Furnaces. Boilers and Accessories 21 
 
 C-10. Steam Power Plant Equipment 21 
 
 C-ll. Gas Producers and Accessories 22 
 
 C-12. Gas Power Plant Equipment 22 
 
 C-13. Miscellaneous Produc-tion Equipment 22 
 
 Transmission and Distribution Capital. 
 
 C-14. Poles and Fixtures 23 
 
 A. Transmission '. . 23 
 
 B. Distribution . 23 
 
 C-15. Overhead System 23 
 
 A. Transmission 23 
 
 B. Distribution 23 
 
 C-16. Underground Conduits 23 
 
 A. Transmission 23 
 
 B. Distribution 23 
 
 C-17. Sub-station Buildings and General Structures 23 
 
 A. Transmission 23 
 
 B. Distribution 23 
 
 C-ls. Sub-station Equipment '. 24 
 
 A. Transmission 24 
 
 B. Distribution 24 
 
 C-10. Miscellaneous Equipment 24 
 
 A. Transmission 24 
 
 B. Distribution 24 
 
 C-20. Line Transformers and Devices - 24 
 
 C-21. Electric Services 24 
 
 C-22. Meters _ 24 
 
 C-23. Municipal Street Lighting System 2.". 
 
 C-24. Commercial Lamps and Lamp Equipment 2."i 
 
 <' 2.",. Electric Motors and I lea re re 2t> 
 
 C-26. Installations on Consumers' Premises 2t"i 
 
 General Capital. 
 
 C-27. General Structures 2(i 
 
 C-28. General Equipment 2(5 
 
 A. Geners'l Olliee Equipment 27 
 
 P.. General Shop ! qiiipmeiit .,. .27
 
 CLASSIFICATION OF ACCOTXTS. KLKCTRIC C< )R!'( )KATI()XS. 65 
 
 PACK. 
 
 (''!!. Undistributed Consi niriinii Expenditures 28 
 
 A. Engineering ,-iud Superintendence.. L's 
 
 15. Law Expenses During Construction 28 
 
 ('. Injuries and Damages During Construction 28 
 
 I>. Taxes During: Construction 29 
 
 K. Miscellaneous Construction Expenditures 29 
 
 C-.'>2. Interest During Construction , 29 
 
 CM.'!. Ccst of Plant Purchased in Lieu of Plant Constructed 29 
 
 C-34. Fixed Capital in Other Departments 29 
 
 C -:;.">. Fixed Capital Installed Prior to January 1, 1913 30 
 
 C-oii. Fixed Capital Installed Since December 31, 1912 30 
 
 INCOME ACCOUNT. 
 
 101. Operating Revenues 31 
 
 1<!2. Operating Expenses 31 
 
 1(!3. Uncollectible Electric Bills 31 
 
 104. Non-operating Revenues 31 
 
 A. Rent Accrued from Lease of Electric Plant 31 
 
 15. Miscellaneous Rent Revenues 31 
 
 C. Interest and Dividend Revenues 31 
 
 D. Sinking and Other Reserve Fund Accretions 32 
 
 E. Profit on Operations of Others 32 
 
 F. Miscellaneous Non-operating Revenues 32 
 
 10-5. Non-opera ting Revenue Deductions 32 
 
 A. Rent Expense 32 
 
 B. Interest Expense 32 
 
 C. Dividend Expense 32 
 
 D. Others' Operations Expense 33 
 
 E. Miscellaneous Non-operating Expense 33 
 
 F. Non-operating Taxes 33 
 
 G. Uncollectible Non-operating Revenues 33 
 
 106. Interest Accrued on Funded Debt 33 
 
 107. Other Interest Deductions 33 
 
 His. Rent Deductions 33 
 
 A. Rent for Lease of Other Electric Plant 34 
 
 15. Rent for Conduits. Poles and Other Supports - 34 
 
 C. Rent for Instruments and Equipment 34 
 
 D. Miscellaneous Rent Deductions 34 
 
 109. Amortization of Debt Discount and Expense 
 
 110. Amortization of Premium on Debt Cr 34 
 
 111. Miscellaneous Deductions from Income _ 34 
 
 A. Loss on Operations of Others 35 
 
 B. Amortization of Lauded Capital 35 
 
 C. Other Contractual Deductions from Income 3u 
 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT. 
 
 112. Dividends on Outstanding Stock 36 
 
 li:{. Sinking Fund Appropriations 
 
 114. Miscellaneous Deductions from Surplus 36 
 
 A. Expenses Unprovided for Elsewhere 
 
 B. Realized Depreciation not Covered by Reserve__. 
 
 C. Amortization Unprovided for Elsewhere 
 
 D. Gifts to Controlled Corporations 
 
 E. Appropriations to Reserves 
 
 F. Other Appropriations from Surplus 
 
 G. Other Deductions from Surplus 
 
 ll.."i. Miscellaneous Additions to Surplus 37
 
 66 CLASSIFICATION OF ACCOUNTS. ELECTRIC CORPORATIONS. 
 
 OPERATING REVENUES. 
 
 I'M, i. 
 
 It- 1. Municipal Street Lighting Arc .'!S 
 
 K I'. Municipal Street Lightint; Incandescent :{S 
 
 R- 3. Municipal Lighting Miscellaneous .".*> 
 
 R- 4. Municipal Power 38 
 
 R- 5. Commercial Lighting Flat Rate . 38 
 
 R- G. Commercial Lighting Metered 38 
 
 R- 7. Commercial Power Flat Rate 30 
 
 R- 8. Commercial Power Metered 39 
 
 R- 9. Railway Power 39 
 
 R-10. Other Electrical Corporations 39 
 
 R-ll. Rent of Meters 39 
 
 R-12. Breakdown Service 39 
 
 R-13. Joint Electric Rent Revenue 40 
 
 R-14. Miscellaneous Electric Revenue 40 
 
 OTHER OPERATING REVENUES. 
 
 R-15. Rent of Electric Appliances 40 
 
 R-1G. Electric Merchandise and Jobbing Revenue ___ 40 
 
 R-17. Sale of By-products 41 
 
 R-18. Steam Sales Revenue 41 
 
 OPERATING EXPENSE ACCOUNTS. 
 Production Expenses. 
 CLASS A. 
 
 E- 1. Superintendence 
 
 E- 2. Water Collection Labor and Expense 42 
 
 E- 3. Water for Hydraulic Power 42 
 
 E- 4. Steam Generation Labor 
 
 E- 5. Fuel for Steam 
 
 E- 6. Steam Generator Supplies 
 
 E- 7. Steam from Other Sources 
 
 E- 8. Producer Gas Labor 
 
 I! li. Fuel for Gas 
 
 E-10. Producer Gas Supplies 
 
 E-ll. Power Gas from Other Sources 
 
 E-12. Electric Plant Labor 
 
 E-13. Electric Plant Supplies 
 
 E-14. Electric Energy from Other Sources 
 
 E-15. General Labor and Supplies 
 
 E-16. Repairs to Dams, Water Conduits and Penstocks 
 
 E-17. Repairs to Power Plant Buildings and General Structures 
 
 E-18. Repairs to Hydraulic Power Plant Equipment . 
 
 E-19. Repairs to Boilers, Furnaces and Accessories 
 
 E-20. Repairs to Steam Power Plant Equipment 
 
 i: -2L Repairs to Gas Producers and Accessories 
 
 E-22. Repairs to Gas Power Plant Equipment 
 
 E-23. Repairs to Miscellaneous Production Equipment--. 
 
 CLASS B. 
 
 K_ i. Superintendence _. 
 
 ].;_ _.. Water Collection Labor and Expense 
 
 E- 3. Water for Hydraulic Power 
 
 E- 4 to E- 0. Steam Generation _. 
 
 E- 7. Steam from Other Sources 
 
 E- 8 to E-10. Producer Gas Generation 
 
 E-ll. Power Gas from Other Sources-
 
 ATIOX OF ACCOUNTS, TJ.KOTRIC CORPORATIONS. 67 
 
 PAOE. 
 
 E-I.'J. Plant Suiinli.'s .-ind Expenses 43,44 
 
 Electric; Energy from Other Sources 44 
 
 General Labor and Supplies . 44 
 
 Repairs to Dams, Water Conduits and Penstocks 44 
 
 Repairs to Power Plant Buildings and General Structures 44 
 
 E-23. Repairs to Equipment 45,46 
 
 CLASS C. 
 E- 1 to E-23. Production Expenses and Repairs of Capital 42.43,44,45,46 
 
 Transmission Expenses. 
 
 CLASS A. 
 
 E 24. Superintendence _ 47 
 
 E-25. Inspecting and Patrolling 47 
 
 E-26. Sub-station Labor 47 
 
 K 27. Sub-station Supplies and Expenses 47 
 
 E-28. General Labor and Supplies 47 
 
 E-29. Repairs to Overhead Transmission System 47 
 
 E-30. Repairs to Underground Transmission System 47 
 
 E-31. Repairs to Sub-station Buildings and General Structures 48 
 
 E-32. Repairs to Sub-station Equipment 48 
 
 E-33. Repairs to Miscellaneous Transmission Equipment 48 
 
 CLASS B. 
 
 E-H4. Superintendence 47 
 
 E-25. Inspecting and Patrolling 47 
 
 E-2G to E-27. Sub-station Labor and Expenses 47 
 
 E-28. General Labor and Supplies 47 
 
 E-29 to E-30. Repairs to Transmission System 47 
 
 E-31 to E-33. Repairs to Sub-station Buildings and Equipment 48 
 
 CLASS C. 
 E-24 to E-33. Transmission Expenses and Repairs to Capital 47,48 
 
 Distribution Expenses. 
 
 CLASS A. 
 
 E-34. Superintendence 48 
 
 E :;.". Sub-station Labor 48 
 
 E-36. Sub-station Supplies and Expenses 49 
 
 E-37. Storage Battery Labor 49 
 
 E-3S. Storage Battery Supplies and Expenses 49 
 
 E-39. Setting and Removing Transformers and Meters 49 
 
 E-40. Inspecting and Patrolling 49 
 
 E-41. Electric Meter Operations 49 
 
 E-42. Commercial Arc Labor 49 
 
 E-43. Commercial Arc Supplies and Repairs 
 
 E-44. Commercial Incandescent Installation and Renewals 50 
 
 K -4.">. Inspection and Repairs of Consumers' Installations 50 
 
 E-46. Municipal Street Arc Labor 50 
 
 E-47. Municipal Street Arc Supplies 50 
 
 K 4V General Labor and Supplies 50 
 
 E-^9. Repairs to Sub-station Buildings and General Structures - 50 
 
 E-50. Repairs to Sub-station Equipment 
 
 E-51. Repairs to Overhead Distribution System --- 51 
 
 E~."">2. Repairs to Underground Distribution System 51 
 
 E-53. Repairs to Line Transformers and Devices 51 
 
 E-54. Repairs to Electric Services 
 
 E-55. Repairs to Electric Meters - 52 
 
 E-56. Repairs to Municipal Street Lighting System 52 
 
 E-57. Repairs to Commercial Arc Lamps 52
 
 <)S CLASSIFICATION' OK ACCOT.VTS. KLKCTHIC CoKl'OKATTOXS. 
 
 1 'ACK. 
 
 !] ."iS. Repairs in Installations on Consumers' Premises. _ r>'2 
 
 E -59. Repairs to Miscellaneous Distribution Equipment 5:1 
 
 CLASS B. 
 
 E-34. Superintendence 48 
 
 E-35 to E-36. Sub-station Labor and Supplies 48,49 
 
 E-37 to E-38. -Storage Battery Labor and Supplies 49 
 
 E-39. Setting and Removing Transformers and .Motors 49 
 
 E-40. Inspecting and Patrolling 49 
 
 E-41. Electric Meter Operations 49 
 
 E-42 to E-45. Commercial Lamp Labor and Expenses 49, 50 
 
 E-4G to E-47. Municipal Labor and Expenses 50 
 
 E-48. General Labor and Supplies 50 
 
 E-49 to E-50. Repairs to Sub-station Buildings and Equipment 50.51 
 
 E-51 to E-59. Repairs to Distribution System 51. 52. 5:; 
 
 CLASS C. 
 E-34 to E-59. Distribution Expenses and Repairs to Capital___48, 49, 50. 51. 52. 5.", 
 
 Commercial Expenses. 
 
 CLASS A. 
 
 E-60. New Business Expenses 53 
 
 E-61. Free Installation Expenses 53 
 
 E-62. Commercial Department Salaries and Expenses 53 
 
 E-63. Commercial Department Indexing 53 
 
 E-64. Commercial Department Collections 54 
 
 E-65. Miscellaneous Commercial Expenses 54 
 
 CLASS B. 
 
 E-GO to E-G1. Promotion 5.", 
 
 E-<J2 to E-G5. Commercial Department Supplies and Expenses 53. 54 
 
 CLASS C. 
 E-GO to E-65. Commercial Department Labor. Supplies and Expenses 53. 54 
 
 General and Miscellaneous Expenses. 
 CLASS A. 
 
 E-66. Salaries of General Officers ,_ 54 
 
 E-67. Salaries of General Office Clerks 54 
 
 E 68. Miscellaneous General Office Supplies and Expenses 54 
 
 E-69. Law Expenses General 54 
 
 E-70. Railroad Commission Expenses 55 
 
 E-71. Injuries and Damages 55 
 
 E 72. Relief Department and Expenses 55 
 
 E-73. Electric Franchise Requirements 5G 
 
 E-74. Other General Expenses - 5G 
 
 E 75. Insurance "><> 
 
 E-76. Repairs to General Structures 5G 
 
 E-77. Repairs to General Equipment Office Equipment - 57 
 
 E-78. Repairs to General Equipment Shop Equipment - 57 
 
 K 7!>. Repairs to General Equipment Store Equipment 57 
 
 E-80. Repairs to General Equipment Stable and Garage Equipment 57 
 
 E-81. Repairs to General Equipment Miscellaneous 57 
 
 E-82. Repairs to Telephone Lines 57 
 
 E-83. Repairs to Roads, Trestles and Bridge 58 
 
 E-84. Electric Expenses Transferred Cr 58 
 
 E-85. Joint Operating Expenses Cr - 58 
 
 E-86. Undistributed Adjustments Balances 
 
 E 87. Extraordinary Repairs 58 
 
 E-88. Repairs Charged to Reserve Cr 59
 
 UC SOUTHERN REGIONAL LIBRARY FACILITY 
 
 CLASSIFICATION OF A 
 
 69 
 
 CLASS B. A 000013677 PAGE . 
 
 E-66 to E-GS. Salaries and Expenses of General Officers ."H 
 
 E-G9. Law Expenses General 54 
 
 E-70. Railroad Commission Expenses 55 
 
 E-71. Injuries and Damages 55 
 
 E-72. Relief Department and Expenses 55 
 
 E-73. Electric Franchise Requirements 56 
 
 E-74. Other General Expenses 56 
 
 E-75. Insurance 56 
 
 E-76 to E-S3. Repairs to Miscellaneous Equipment 56,57,58 
 
 E-84. Electric Expenses Transferred Cr 58 
 
 E-85. Joint Operating Expenses Cr 58 
 
 E-86. Undistributed Adjustments Balances 58 
 
 E-87. Extraordinary Repairs 58 
 
 E-88. Repairs Charged to Reserve Cr 59 
 
 CLASS C. 
 
 E-66 to E-6S. Salaries and Expenses of General Officers 54 
 
 E-69 to E-76. Miscellaneous General Expenses 54, 55, 56 
 
 E-77 to E-86. Miscellaneous General Repairs 57, 58 
 
 E-87 to E-90. Other Expenses 58,59 
 
 Other Expenses. 
 
 CLASS A. 
 
 E-9. By-product Expense 59 
 
 E-90. Steam Sales Expense 59 
 
 CLASS B. 
 
 E-89. By-product Expense 59 
 
 E-90. Steam Sales Expense 59 
 
 Taxes. 
 
 CLASS A. 
 
 E-91. Taxes 59 
 
 CLASS B. 
 
 E-91. Taxes 59 
 
 CLASS C. 
 
 E-91. Taxes 59 
 
 Amortization of General Capital. 
 
 CLASS A. 
 
 E-92. Amortization of Franchises and Patents 59 
 
 E-93. Depreciation of Plant and Equipment 60 
 
 CLASS B. 
 E-92 to E-93. Depreciation, etc. 59, 60 
 
 CLASS C. 
 E-92 to E-93. Depreciation, etc. 59, 60 
 
 CLEARING ACCOUNTS. 
 
 1. Shop Expense 60 
 
 2. Stable and Garage Expense 60 
 
 3. Tool Expense 61 
 
 4. Supply Expense 61 
 
 5. Engineering Expense 61 
 
 6. Plant Supervision Expense 61