Accounting Requirements for RUS Electric Borrowers

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1767

Accounting Requirements for RUS Electric Borrowers

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Rural Utilities Service (RUS) proposes to amend its

regulations on accounting policies and procedures for RUS electric

borrowers. This proposed rule would amend the regulations pertaining to

departures from the prescribed RUS Uniform System of Accounts (USoA),

by allowing RUS borrowers to implement certain revenue and expense

deferral plans without obtaining prior RUS approval. It would also

institute activity-based costing (functional accounting) requirements

for employee pensions and benefits, payroll taxes, and insurance and

establish a new accounting interpretation that addresses the accounting

requirements set forth in Statement of Financial Accounting Standards

No. 121, Accounting for the Impairment of Long-Lived Assets and for

Long-Lived Assets to be Disposed of, within the framework of the RUS

USoA. This proposed rule will also establish uniform accounting

procedures for the National Rural Electric Cooperative Association's

(NRECA) Split-Dollar life insurance program, the NRECA Special Early

Retirement program, and the automatic meter reading system developed by

Hunt Technologies, Inc., global positioning systems, and radio-based

remote meter reading systems. This proposed rule would also amend

Accounting Interpretation No. 104 to record plant contributed by an RUS

electric cooperative as an intangible asset.

DATES: Written comments must be received by RUS or carry a postmark or

equivalent no later than May 29, 1997.

ADDRESSES: Submit written comments to Ms. Roberta D. Purcell, Director,

Program Accounting Services Division, Rural Utilities Service, Stop

1523, Room 2221, South Building, U.S. Department of Agriculture, 1400

Independence Avenue, Washington, DC 20250-1523, telephone number (202)

720-9450. RUS requires a signed original and three copies of all

comments (7 CFR part 1700). All comments received will be made

available for inspection at room 2234 South Building during regular

business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: Ms. Roberta D. Purcell, Director,

Program Accounting Services Division, Rural Utilities Service, Stop

1523, Room 2221, South Building, U.S. Department of Agriculture, 1400

Independence Avenue, Washington, DC 20250-1523, telephone number (202)

720-9450.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule has been determined to be not significant for

the purposes of Executive Order 12866 and therefore has not been

reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act Certification

The Administrator of RUS has determined that this proposed rule

will not have a significant economic impact on the substantial number

of small entities, as defined by the Regulatory Flexibility Act (5

U.S.C. 601 et seq.).

Information Collection and Recordkeeping Requirements

The reporting and recordkeeping requirements contained in the

proposed rule were approved by OMB pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35, as amended) under control number

0572-0002.

Send questions or comments regarding this burden or any aspect of

this information collection, including suggestions for reducing the

burden to F. Lamont Heppe, Jr., Director, Program Support and

Regulatory Analysis, Rural Utilities Service, U.S. Department of

Agriculture, 1400 Independence Ave., SW., STOP 1522, Room 4034,

Washington, DC 20250-1522.

National Environment Policy Act Certification

The Administrator, RUS, has determined that this proposed rule will

not significantly affect the quality of the human environment as

defined by the National Environmental Policy Act of 1969 (42 U.S.C.

4321 et seq.). Therefore, this action does not require an environmental

impact statement or assessment.

Catalog of Federal Domestic Assistance

The program described by this proposed rule is listed in the

Catalog of Federal Domestic Assistance Program under numbers 10.850--

Rural Electrification Loans and Loan Guarantees. This catalog is

available on a subscription basis from the Superintendent of Documents,

the United States Government Printing Office, Washington, DC 20402-

9325.

Executive Order 12372

This proposed rule is excluded from the scope of Executive Order

12372, Intergovernmental Consultation. A Notice of Final Rule entitled

Department Programs and Activities Excluded from Executive Order 12372

(50 FR 47034) exempts RUS electric loans and loan guarantees to

governmental and nongovernmental entities from coverage under this

order.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review program to eliminate unnecessary regulations and

improve those that remain in force.

Civil Justice Reform

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. RUS has determined that this proposed rule meets

the applicable standards provided in Sec. 3, of the Executive Order.

Background

In order to facilitate the effective and economical operation of a

business enterprise, adequate and reliable financial records must be

maintained. Accounting records must provide a clear, accurate picture

of current economic conditions from which management can make informed

decisions in charting the company's future. The rate-regulated

environment in which an electric utility operates causes an even

greater need for financial information that is accurate, complete, and

comparable with that of other electric utilities.

RUS, as a Federal lender and mortgagee, and in furthering the

objectives of the Rural Electrification Act (RE Act) (7 U.S.C. 901 et

seq.) has a legitimate programmatic interest and a substantial

financial interest in requiring adequate records to be maintained. In

order to provide RUS with financial information that can be analyzed

and compared with the operations of other borrowers in the RUS program,

all RUS borrowers must maintain financial records that utilize uniform

accounts and uniform accounting policies and procedures. The standard

RUS security instrument, therefore, requires borrowers to maintain

their books, records, and accounts in accordance with methods and

principles of accounting prescribed by RUS in the RUS USoA for its

electric borrowers.

To ensure that borrowers consistently account for their financial

operations and keep pace with the ever-changing environment in which

they operate, as

[[Page 23299]]

well as apply the provisions of recent pronouncements of the Financial

Accounting Standards Boards, the USoA must be revised and updated as

changes in the industry and generally accepted accounting principles

occur. RUS is, therefore, proposing to revise Section 1767.13,

Departures from the Prescribed RUS Uniform System of Accounts, to

identify certain revenue and expense deferral plans that may be

implemented without the prior written approval of RUS. When RUS adopted

the requirements set forth in Section 1767.13 in 1993, RUS borrowers

were implementing a variety of revenue and expense deferral plans, many

without RUS knowledge or approval. Since the adoption of these

requirements, RUS has been able to better determine the types of

deferral plans being routinely adopted by its borrowers and the impact

of these plans on loan security. History has shown that RUS has

routinely approved the deferral of certain revenues and expenses and

the accelerated amortization of previously deferred costs that have a

minimal impact on loan security, provided that the information

necessary for RUS to evaluate the action was submitted. In an effort to

reduce paperwork requirements for both RUS and its borrowers, RUS is

proposing to eliminate the requirement to obtain prior RUS approval to

implement certain specific types of deferrals and accelerated

amortizations of previously deferred expenses that have been routinely

approved for all borrowers in the past.

With the issuance, by the Federal Energy Regulatory Commission

(FERC), of Orders 888 and 889 on April 24, 1996 (61 FR 21540-21736;

21737-21854 (May 10, 1996) on open access, it is essential that rural

electric cooperatives effectively and efficiently cost their products

and services if they are to compete in an open market. Before products

and services may be effectively priced in an open market, management

must have reliable financial information concerning the actual cost of

the products and services it provides. Costs, therefore, must be

accumulated on a functional basis. Salaries, materials, and many other

expenses incurred in utility operations are already accounted for on a

functional basis. Employee pensions and benefits, payroll taxes, and

insurance costs, however, are not, except to the extent that they are

charged to construction and retirement activities. RUS is, therefore,

proposing to revise its USoA to require borrowers to allocate employee

pensions and benefits expense, as well as payroll taxes and insurance

costs currently recorded in Accounts 408, Taxes Other than Income

Taxes; 924, Property Insurance; 925, Injuries and Damages; and 926,

Employee Pensions and Benefits; to the appropriate functional

operations, maintenance, and administrative expense accounts.

Additionally, RUS is proposing to amend the operations, maintenance,

and administrative expense accounts to which labor charges are accrued

to reflect this activity-based costing methodology. Accordingly, RUS is

also proposing to amend the accounting interpretations that address

insurance and pensions and benefits expense to reflect this cost

allocation procedure.

This rule also proposes to revise Sec. 1767.41 by establishing a

new accounting interpretation that addresses the provisions of the

recently issued pronouncement of the Financial Accounting Standards

Board, Statement of Financial Accounting Standards No. 121, Accounting

for the Impairment of Long-Lived Assets and for Long-Lived Assets to be

Disposed of. RUS instructs its borrowers, with qualifying assets, as to

the proper accounts to be used within the framework of the RUS USoA.

Copies of Statements of Financial Accounting Standards may be obtained

from the Order Department of the Financial Accounting Standards Board,

401 Merritt 7, P.O. Box 5116, Norwalk, Connecticut 06856-5116.

RUS is also proposing to adopt a new accounting interpretation that

establishes the accounting policies and procedures for the NRECA Split-

Dollar life insurance program and the NRECA Special Early Retirement

(SERP) program. The Split-Dollar life insurance program and the Special

Early Retirement program are benefits packages established by NRECA for

borrowers to offer to their employees. The benefits provided under the

Split-Dollar life insurance program consist of two components, the face

value of the insurance policy which is payable to the employee's heirs

and the accumulated cash surrender value. While the employee is the

owner of the policy, the employee must sign a collateral assignment

that gives the employer, the RUS borrower, an absolute right to the

cash surrender value of the policy. Under the terms of this collateral

assignment, the employee must reimburse the cooperative for the

premiums paid upon the employee's termination of employment or

attainment of the age of 62, if the employee wishes to maintain the

insurance coverage. If death occurs prior to either of these events,

the premiums paid to date by the borrower are deducted from the death

benefits payable to the policy beneficiary. The proposed accounting

interpretation details the accounting journal entries necessary to

record the cash surrender value of the policy and the expenses incurred

by the borrower in providing the policy.

The SERP is a vehicle through which the cooperative may reduce the

size of its workforce or replace more highly paid employees with lower

paid entry level employees. If an employee covered by an NRECA

retirement plan chooses to retire before the employee's normal

retirement date, that employee would receive an actuarially reduced

benefit. However, when a cooperative elects to offer a SERP, no such

reduction is required. The proposed accounting interpretation details

the accounting for the benefits package, itself, as well as the

reduction in postretirement benefit costs that may result from an

employee accepting the SERP.

This rule also proposes to establish an accounting interpretation

for the automatic meter reading system developed by Hunt Technologies,

Inc. The system transmits continuous information one way from the meter

to a receiver located in the substation. The receiver constantly

monitors each meter served by the substation. The data is then

transmitted to the headquarters monitoring equipment via telephone line

or an equivalent communication system. The proposed accounting records

the various components of the system in the primary plant accounts

based upon their functions.

This rule proposes to establish an accounting interpretation for

Global Positioning Systems (GPS). The GPS is a worldwide radio-

navigation system formed from a network of 24 satellites and their

ground stations that utilities are using to update and modernize their

system maps. GPS uses a system of satellites orbiting the earth to

establish plant locations with pinpoint accuracy. By triangulating from

three satellites and using radio signals to measure distances and

locate items, system-wide maps can be created of the utility's service

area. The proposed accounting records the various components of the

system in the primary plant accounts based upon their functions.

This rule also proposes to adopt an accounting interpretation for

Radio-based automatic meter reading systems. Radio-based automatic

meter reading technology allows meters equipped with a low-power radio

device called an ERT (Encoder, Receiver, Transmitter) to be read from a

remote location. The ERT device ``encodes'' energy consumption and

transmits this information to a radio transceiver equipped handheld

[[Page 23300]]

computer. The data collected and stored in the handheld computer is

then uploaded to a billing computer using specialized software for that

purpose. The proposed accounting records the various components of the

system in the primary plant accounts based upon their functions.

This rule proposes to revise Interpretation No. 104, Terminal

Facilities, to comply with guidance provided by FERC for public

utilities on the accounting for plant contributed by one electric

cooperative to another. Previously, contributed plant was recorded as a

deferred charge in Account 186, Miscellaneous Deferred Debits. FERC

issuances, however, direct public utilities to record contributed plant

as an intangible asset in Account 303, Miscellaneous Intangible Plant.

Upon review, RUS has determined that the classification of contributed

plant as an intangible asset is more appropriate and is, therefore,

proposing a change in its accounting interpretations for RUS borrowers

found in Interpretation No. 104.

List of Subjects in 7 CFR Part 1767

Electric power, Loan programs--energy, Reporting and recordkeeping

requirements, Rural areas, Uniform System of Accounts.

For the reasons set forth in the preamble, RUS hereby proposes to

amend 7 CFR chapter XVII as follows:

PART 1767--ACCOUNTING REQUIREMENTS FOR RUS ELECTRIC BORROWERS

1. The authority citation for part 1767 is revised to read as

follows:

Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.

2. Section 1767.13 is proposed to be amended by revising paragraph

(d) to read as follows:

Sec. 1767.13 Departures from the prescribed RUS Uniform System of

Accounts.

* * * * *

(d) RUS borrowers will not implement the provisions of Statement of

Financial Accounting Standards (SFAS) No. 71, Accounting for the

Effects of Certain Types of Regulation; SFAS No. 90, Regulated

Enterprises--Accounting for Abandonments and Disallowances of Plant

Costs; SFAS No. 92, Regulated Enterprises-Accounting for Phase-in Plan

without the prior written approval of RUS except as provided for in

paragraphs (d)(1) through (d)(5) of this section. Requests for approval

shall be addressed, in writing, to the Director, PASD. The specific

deferrals set forth in paragraphs (d)(1) through (d)(5) of this section

may be implemented without the prior written approval of RUS.

(1) The deferral and amortization of prior service pension costs,

remapping expenses, and preliminary survey and investigation charges;

(2) The deferral of any current period expense only if a borrower

would have met its financial tests (Times Interest Earned Ratio or Debt

Service Charge ratio) for the year had the deferral not been made;

(3) The deferral of any cost that will be fully amortized within

the next 12 succeeding months;

(4) The accelerated amortization of any previously deferred

expense; and

(5) The deferral of revenues coincident with a moratorium imposed

by the National Rural Electric Cooperative Association on its

Retirement and Security Program, provided, however, that the deferral

is for the sole purpose of offsetting future pension cost increases.

* * * * *

3. Section 1767.17 is proposed to be amended by revising paragraphs

(a) and (b) to read as follows:

Sec. 1767.17 Operating expense instructions.

(a) Supervision and engineering. The supervision and engineering

includible in the operating expense accounts shall consist of the

salary, employee pensions and benefits, social security and other

payroll taxes, and other expenses of superintendents, engineers,

clerks, other employees, and consultants engaged in supervising and

directing the operation and maintenance of each utility function.

Whenever allocations are necessary in order to arrive at the amount to

be included in any account, the method and basis of allocation shall be

reflected by underlying records.

(1) Labor items:

(i) Special tests to determine efficiency of equipment operation;

(ii) Preparing or reviewing budgets, estimates, and drawings

relating to operation or maintenance for departmental approval;

(iii) Preparing instructions for operations and maintenance

activities;

(iv) Reviewing and analyzing operating results;

(v) Establishing organizational setup of departments and executing

changes therein;

(vi) Formulating and reviewing routines of departments and

executing changes therein;

(vii) General training and instruction of employees by supervisors

whose pay is chargeable hereto. Specific instructions and training in a

particular type of work is chargeable to the appropriate functional

account (See paragraph (c)(19) of this section);

(viii) Secretarial work for supervisory personnel, but not general

clerical and stenographic work chargeable to other accounts.

(2) Expense items:

(i) Employee pensions and benefits;

(ii) Social security and other payroll taxes;

(iii) Consultants' fees and expenses; and

(iv) Meals, traveling and incidental expenses.

(b) Maintenance. (1) The cost of maintenance chargeable to the

various operating expense and clearing accounts includes labor,

employee pensions and benefits, social security and other payroll

taxes, materials, overheads, and other expenses incurred in maintenance

work. A list of work operations applicable generally to utility plant

is included hereunder. Other work operations applicable to specific

classes of plant are listed in functional maintenance expense accounts.

(2) Materials recovered in connection with the maintenance of

property shall be credited to the same account to which the maintenance

cost was charged.

(3) If the book cost of any property is carried in Account 102,

Electric Plant Purchased or Sold, the cost of maintaining such property

shall be charged to the accounts for maintenance of property of the

same class and use, the book cost of which is carried in other electric

plant in service accounts. Maintenance of property leased from others

shall be treated as provided in paragraph (c) of this section.

(4) Items:

(i) Direct field supervision of maintenance;

(ii) Inspecting, testing, and reporting on condition of plant

specifically to determine the need for repairs, replacements,

rearrangements and changes and inspecting and testing the adequacy of

repairs which have been made;

(iii) Work performed specifically for the purpose of preventing

failure, restoring serviceability or maintaining life of plant;

(iv) Rearranging and changing the location of plant not retired;

(v) Repairing for reuse materials recovered from plant;

(vi) Testing for, locating, and clearing trouble;

(vii) Net cost of installing, maintaining, and removing temporary

facilities to prevent interruptions in service; and

[[Page 23301]]

(viii) Replacing or adding minor items of plant which do not

constitute a retirement unit.

* * * * *

4. Section 1767.21 is proposed to be amended by revising Account

408 to read as follows:

Sec. 1767.21 Operating income.

* * * * *

408 Taxes Other Than Income Taxes

A. This account shall include the amounts of ad valorem, gross

revenue, or gross receipts taxes, state unemployment insurance,

franchise taxes, Federal excise taxes, social security taxes, and all

other taxes assessed by Federal, state, county, municipal, or other

local governmental authorities, except income taxes.

B. These accounts shall be charged in each accounting period with

the amounts of taxes which are applicable thereto, with concurrent

credits to Account 236, Taxes Accrued, or Account 165, Prepayments, as

appropriate. When it is not possible to determine the exact amounts of

taxes, the amounts shall be estimated and adjustments made in current

accruals as the actual tax levies become known.

C. The charges to these accounts shall be made or supported so as

to show the amount of each tax and the basis upon which each charge is

made. In the case of a utility rendering more than one utility service,

taxes of the kind includible in these accounts shall be assigned

directly to the utility department the operation of which gave rise to

the tax, in so far as practicable. Where the tax is not attributable to

a specific utility department, it shall be distributed among the

utility departments or nonutility operations on an equitable basis

after appropriate study to determine such basis.

NOTE A: Special assessments for street and similar improvements

shall be included in the appropriate utility plant or nonutility

property account.

NOTE B: Taxes specifically applicable to construction and

retirement activities shall be included in the cost of construction

or the retirement.

NOTE C: Gasoline and other sales taxes shall be charged as far

as practicable to the same account as the materials on which the tax

is levied.

NOTE D: Social security and other forms of payroll taxes shall

be charged to nonutility operations, the specific functional

operations, maintenance, and administrative expense accounts, and to

construction and retirement activities on a basis related to payroll

either directly or by transfers from this account.

NOTE E: Property Taxes applicable to the various utility

functions shall be charged to the appropriate miscellaneous

operations or administrative expense accounts either directly or by

transfers from this account.

NOTE F: Interest on tax refunds or deficiencies shall not be

included in these accounts but in Account 419, Interest and Dividend

Income, or Account 431, Other Interest Expense, as appropriate.

D. Account 408 shall be subaccounted as follows:

408.1 Taxes--Property

408.2 Taxes--U.S. Social Security--Unemployment

408.3 Taxes--U.S. Social Security--F.I.C.A.

408.4 Taxes--State Social Security--Unemployment

408.5 Taxes--State Sales--Consumers

408.6 Taxes--Gross Revenue or Gross Receipts Tax

408.7 Taxes--Other

* * * * *

5. Section 1767.27 is proposed to be amended by revising Accounts

500, 501, 502, 505, 506, 510, 511, 512, 513, 514, 517, 519, 520, 523,

524, 528, 529, 530, 531, 532, 535, 537, 538, 539, 541, 542, 543, 544,

545, 546, 548, 549, 551, 552, 553, 554, 556, 560, 561, 562, 563, 564,

566, 568, 569, 570, 571, 572, 573, 580, 581, 582, 583, 584, 585, 586,

587, 588, 590, 591, 592, 593, 594, 595, 596, 597, and 598 to read as

follows:

Sec. 1767.27 Operation and maintenance expense.

* * * * *

500 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

steam power generating stations. Direct supervision of specific

activities, such as fuel handling, boiler-room operations, and

generator operations shall be charged to the appropriate account. (See

Sec. 1767.17(a).)

501 Fuel

A. This account shall include the cost of fuel used in the

production of steam for the generation of electricity, including

expenses in unloading fuel from the shipping media and handling thereof

up to the point where the fuel enters the first boiler plant bunker,

hopper, bucket, tank, or holder of the boiler-house structure. Records

shall be maintained to show the quantity, B.t.u. content and cost of

each type of fuel used.

B. The cost of fuel shall be charged initially to Account 151, Fuel

Stock, and cleared to this account on the basis of the fuel used. Fuel

handling expenses may be charged to this account as incurred or charged

initially to Account 152, Fuel Stock Expenses Undistributed. In the

latter event, they shall be cleared to this account on the basis of the

fuel used. Respective amounts of fuel stock and fuel stock expenses

shall be readily available.

Items

Labor:

1. Supervising, purchasing, and handling of fuel.

2. All routine fuel analyses.

3. Unloading from shipping facility and placing in storage.

4. Moving of fuel in storage and transferring fuel from one station

to another.

5. Handling from storage or shipping facility to first bunker,

hopper, bucket, tank, or holder of boiler-house structure.

6. Operation of mechanical equipment, such as locomotives, trucks,

cars, boats, barges, and cranes.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Operating, maintenance, and depreciation expenses and ad valorem

taxes on utility-owned transportation equipment used to transport fuel

from the point of acquisition to the unloading point.

2. Lease or rental costs of transportation equipment used to

transport fuel from the point of acquisition to the unloading point.

3. Cost of fuel including freight, switching, demurrage, and other

transportation charges.

4. Excise taxes, insurance, purchasing commissions, and similar

items.

5. Stores expenses to extent applicable to fuel.

[[Page 23302]]

6. Transportation and other expenses in moving fuel in storage.

7. Tools, lubricants, and other supplies.

8. Operating supplies for mechanical equipment.

9. Residual disposal expenses less any proceeds from sale of

residuals.

Note: Abnormal fuel handling expenses occasioned by emergency

conditions shall be charged to expense as incurred.

502 Steam Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in production of steam for electric generation. This

includes all expenses of handling and preparing fuel beginning at the

point where the fuel enters the first boiler plant bunker, hopper,

tank, or holder of the boiler-house structure.

Items

Labor:

1. Supervising steam production.

2. Operating fuel conveying, storage, weighing, and processing

equipment within boiler plant.

3. Operating boiler and boiler auxiliary equipment.

4. Operating boiler feed water purification and treatment

equipment.

5. Operating ash-collecting and disposal equipment located inside

the plant.

6. Operating boiler plant electrical equipment.

7. Keeping boiler plant log and records and preparing reports on

boiler plant operations.

8. Testing boiler water.

9. Testing, checking, and adjusting meters, gauges, and other

instruments and equipment in boiler plant.

10. Cleaning boiler plant equipment when not incidental to

maintenance work.

11. Repacking glands and replacing gauge glasses where the work

involved is of a minor nature and is performed by regular operating

crews. Where the work is of a major character, such as that performed

on high-pressure boilers, the item should be considered as maintenance.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Chemicals and boiler inspection fees.

2. Lubricants.

3. Boiler feed water purchased and pumping supplies.

* * * * *

505 Electric Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used,

and expenses incurred in operating prime movers, generators, and their

auxiliary apparatus, switch gear, and other electric equipment to the

points where electricity leaves for conversion for transmission or

distribution.

Items

Labor:

1. Supervising electric production.

2. Operating turbines, engines, generators, and exciters.

3. Operating condensers, circulating water systems, and other

auxiliary apparatus.

4. Operating generator cooling system.

5. Operating lubrication and oil control system, including oil

purification.

6. Operating switchboards, switch gear and electric control, and

protective equipment.

7. Keeping electric plant log and records and preparing reports on

electric plant operations.

8. Testing, checking, and adjusting meters, gauges, and other

instruments, relays, controls, and other equipment in the electric

plant.

9. Cleaning electric plant equipment when not incidental to

maintenance work.

10. Repacking glands and replacing gauge glasses.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Lubricants and control system oils.

2. Generator cooling gases.

3. Circulating water purification supplies.

4. Cooling water purchased.

5. Motor and generator brushes.

506 Miscellaneous Steam Power Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, and materials used and expenses incurred which are not

specifically provided for or not readily assignable to other steam

generation operation expense accounts.

Items

Labor:

1. General clerical and stenographic work.

2. Guarding and patrolling plant and yard.

3. Building service.

4. Care of grounds including snow removal, and grass cutting.

5. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees

[[Page 23303]]

when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. General operating supplies, such as tools, gaskets, packing

waste, gauge glasses, hose, indicating lamps, record and report forms.

2. First-aid supplies and safety equipment.

3. Employees' service facilities expenses.

4. Building service supplies.

5. Communication service.

6. Miscellaneous office supplies and expenses, printing, and

stationery.

7. Transportation expenses.

8. Meals, traveling, and incidental expenses.

9. Research, development, and demonstration expenses.

* * * * *

510 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of maintenance of

steam generation facilities. Direct field supervision of specific jobs

shall be charged to the appropriate maintenance account. (See

Sec. 1767.17(a).)

511 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used

and expenses incurred in the maintenance of steam structures, the book

cost of which is includible in Account 311, Structures and

Improvements. (See Sec. 1767.17(b).)

512 Maintenance of Boiler Plant

A. This account shall include the cost of labor, employee pensions

and benefits, social security and other payroll taxes, and materials

used and expenses incurred in the maintenance of steam plant, the book

cost of which is includible in Account 312, Boiler Plant Equipment.

(See Sec. 1767.17(b).)

B. For the purpose of making charges hereto and to Account 513,

Maintenance of Electric Plant, the point at which steam plant is

distinguished from electric plant is defined as follows:

1. Inlet flange of throttle valve on prime mover.

2. Flange of all steam extraction lines on prime mover.

3. Hotwell pump outlet on condensate lines.

4. Inlet flange of all turbine-room auxiliaries.

5. Connection to line side of motor starter for all boiler-plant

equipment.

513 Maintenance of Electric Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used

and expenses incurred in the maintenance of electric plant, the book of

which is includible in Account 313, Engines and Engine-Driven

Generators; Account 314, Turbogenerator Units; and Account 315,

Accessory Electric Equipment. (See Sec. 1767.17(b) and Paragraph B of

Account 512.)

514 Maintenance of Miscellaneous Steam Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used

and expenses incurred in maintenance of miscellaneous steam generation

plant, the book cost of which is includible in Account 316,

Miscellaneous Power Plant Equipment. (See Sec. 1767.17(b).)

* * * * *

517 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

nuclear power generating stations. Direct supervision of specific

activities, such as fuel handling, reactor operations, and generator

operations shall be charged to the appropriate account. (See

Sec. 1767.17(a).)

* * * * *

519 Coolants and Water

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used

and expenses incurred for heat transfer materials and water used for

steam and cooling purposes.

Items

Labor:

1. Operation of water supply facilities.

2. Handling of coolants and heat transfer materials.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

[[Page 23304]]

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Chemicals.

2. Additions to or refining of, fluids used in reactor systems.

3. Lubricants.

4. Pumping supplies and expenses.

5. Miscellaneous supplies and expenses.

6. Purchased Water.

Note: Do not include in this account water for general station

use or the initial charge for coolants, heat transfer, or moderator

fluids, chemicals, or other supplies capitalized.

520 Steam Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and materials used

and expenses incurred in production of steam through nuclear processes,

and similar expenses for operation of any auxiliary superheat

facilities.

Items

Labor:

1. Supervising steam production.

2. Fuel handling including removal, insertion, disassembly, and

preparation for cooling operations and shipment.

3. Testing instruments and gauges.

4. Health, safety, monitoring, and decontamination activities.

5. Waste disposal.

6. Operating steam boilers and auxiliary steam, superheat

facilities.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Chemical supplies.

2. Charts, and logs.

3. Health, safety, monitoring, and decontamination supplies.

4. Boiler inspection fees.

5. Lubricants.

* * * * *

523 Electric Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in operating turbogenerators, steam turbines and

their auxiliary apparatus, switch gear, and other electric equipment to

the points where electricity leaves for conversion for transmission or

distribution.

Items

Labor:

1. Supervising electric production.

2. Operating turbines, engines, generators, and exciters.

3. Operating condensers, circulating water systems, and other

auxiliary apparatus.

4. Operating generator cooling system.

5. Operating lubrication and oil control system, including oil

purification.

6. Operating switchboards, switch gear, and electric control and

protective equipment.

7. Keeping plant log and records and preparing reports on electric

plant operations.

8. Testing, checking and adjusting meters, gauges, and other

instruments, relays, controls, and other equipment in the electric

plant.

9. Cleaning electric plant equipment when not incidental to

maintenance.

10. Repacking glands and replacing gauge glasses.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Lubricants and control system oils.

2. Generator cooling gases.

3. Log sheets and charts.

4. Motor and generator brushes.

524 Miscellaneous Nuclear Power Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred which are not specifically

provided for or are not readily assignable to other nuclear generation

operation accounts.

Items

Labor:

1. General clerical and stenographic work.

2. Plant security.

3. Building service.

4. Care of grounds, including snow removal, and grass cutting.

5. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

[[Page 23305]]

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. General operating supplies, such as tools, gaskets, hose,

indicating lamps, records and reports forms.

2. First-aid supplies and safety equipment.

3. Employees' service facilities expenses.

4. Building service supplies.

5. Communication service.

6. Miscellaneous office supplies and expenses, printing and

stationery.

7. Transportation expenses.

8. Meals, traveling, and incidental expenses.

9. Research, development, and demonstration expenses.

* * * * *

528 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of maintenance of

nuclear generation facilities. Direct field supervision of specific

jobs shall be charged to the appropriate maintenance account. (See

Sec. 1767.17(a).)

529 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of structures, the book cost of

which is includible in Account 321, Structures and Improvements. (See

Sec. 1767.17(b).)

530 Maintenance of Reactor Plant Equipment

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of reactor plant, the book cost of

which is includible in Account 322, Reactor Plant Equipment. (See

Sec. 1767.17(b).)

531 Maintenance of Electric Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of electric plant, the book cost

of which is includible in Account 323, Turbogenerator Units, and

Account 324, Accessory Electric Equipment. (See Sec. 1767.17(b).)

532 Maintenance of Miscellaneous Nuclear Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of miscellaneous nuclear generating

plant, the book cost of which is includible in Account 325,

Miscellaneous Power Plant Equipment. (See Sec. 1767.17(b).)

* * * * *

535 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

hydraulic power generating stations. Direct supervision of specific

activities, such as hydraulic operation, and generator operation shall

be charged to the appropriate account. (See Sec. 1767.17(a).)

* * * * *

537 Hydraulic Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in operating hydraulic works including reservoirs,

dams, and waterways, and in activities directly relating to the

hydroelectric development outside the generating station. It shall also

include the cost of labor, materials used, and other expenses incurred

in connection with the operation of (1) fish and wildlife, and (2)

recreation facilities. Separate subaccounts shall be maintained for

each of the above.

Items

Labor:

1. Supervising hydraulic operation.

2. Removing debris and ice from trash racks, reservoirs, and

waterways.

3. Patrolling reservoirs and waterways.

4. Operating intakes, spillways, sluiceways, and outlet works.

5. Operating bubbler, heater, or other deicing systems.

6. Ice and log jam work.

7. Operating navigation facilities.

8. Operations relating to conservation of game, fish, and forests.

9. Insect control activities.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Insect control materials.

2. Lubricants, packing, and other supplies used in the operation of

hydraulic equipment.

3. Transportation expense.

538 Electric Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in operating prime movers, generators, and their

auxiliary apparatus, switchgear, and other electric

[[Page 23306]]

equipment, to the point where electricity leaves for conversion for

transmission or distribution.

Items

Labor:

1. Supervising electric production.

2. Operating prime movers, generators, and auxiliary equipment.

3. Operating generator cooling system.

4. Operating lubrication and oil control systems, including oil

purification.

5. Operating switchboards, switchgear, and electric control and

protection equipment.

6. Keeping plant log and records and preparing reports on plant

operations.

7. Testing, checking and adjusting meters, gauges, and other

instruments, relays, controls, and other equipment in the plant.

8. Cleaning plant equipment when not incidental to maintenance

work.

9. Repacking glands.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Lubricants and control system oils.

2. Motor and generator brushes.

539 Miscellaneous Hydraulic Power Generation Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred which are not specifically

provided for or are not readily assignable to other hydraulic

generation operation expense accounts.

Items

Labor:

1. General clerical and stenographic work.

2. Guarding and patrolling plant and yard.

3. Building service.

4. Care of grounds including snow removal, and grass cutting.

5. Snow removal from roads and bridges.

6. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. General operating supplies, such as tools, gaskets, packing,

waste, hose, indicating lamps, record and report forms.

2. First-aid supplies and safety equipment.

3. Employees' service facilities expenses.

4. Building service supplies.

5. Communication service.

6. Office supplies, printing and stationery.

7. Transportation expenses.

8. Fuel.

9. Meals, traveling, and incidental expenses.

10. Research, development, and demonstration expenses.

* * * * *

541 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the maintenance of

hydraulic power generating stations. Direct field supervision of

specific jobs shall be charged to the appropriate maintenance account.

(See Sec. 1767.17(a).)

542 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of hydraulic structures, the book cost

of which is includible in Account 331, Structures and Improvements.

(See Sec. 1767.17(b).) However, the cost of labor, materials used, and

expenses incurred in the maintenance of fish and wildlife and

recreation facilities, the book cost of which is includible in Account

331, Structures and Improvements, shall be charged to Account 545,

Maintenance of Miscellaneous Hydraulic Plant.

[[Page 23307]]

543 Maintenance of Reservoirs, Dams, and Waterways

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant includible in Account 332,

Reservoirs, Dams, and Waterways. (See Sec. 1767.17(b).) However, the

cost of labor, materials used, and expenses incurred in the maintenance

of fish and wildlife and recreation facilities, the book cost of which

is includible in Account 332, Reservoirs, Dams, and Waterways, shall be

charged to Account 545, Maintenance of Miscellaneous Hydraulic Plant.

544 Maintenance of Electric Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant includible in Account 333,

Water Wheels, Turbines and Generators, and Account 334, Accessory

Electric Equipment, (See Sec. 1767.17(b).)

545 Maintenance of Miscellaneous Hydraulic Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant, the book cost of which is

includible in Account 335, Miscellaneous Power Plant Equipment, and

Account 336, Roads Railroads and Bridges. (See Sec. 1767.17(b).) It

shall also include the cost of labor, materials used, and other

expenses incurred in the maintenance of (1) fish and wildlife, and (2)

recreation facilities. Separate subaccounts shall be maintained for

each of the above.

* * * * *

546 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

other power generating stations. Direct supervision of specific

activities, such as fuel handling and engine and generator operation

shall be charged to the appropriate account. (See Sec. 1767.17(a).)

* * * * *

548 Generation Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in operating prime movers, generators, and electric

equipment in other power generating stations, to the point where

electricity leaves for conversion for transmission or distribution.

Items

Labor:

1. Supervising other power generation operation.

2. Operating prime movers, generators, and auxiliary apparatus and

switching and other electric equipment.

3. Keeping plant log and records and preparing reports on plant

operations.

4. Testing, checking, cleaning, oiling, and adjusting equipment.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Dynamo, motor, and generator brushes.

2. Lubricants and control system oils.

3. Water for cooling engines and generators.

549 Miscellaneous Other Power Generation Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred in the operation of other

power generating stations which are not specifically provided for or

are not readily assignable to other generation expense accounts.

Items

Labor:

1. General clerical and stenographic work.

2. Guarding and patrolling plant and yard.

3. Building service.

4. Care of grounds, including snow removal, and grass cutting.

5. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of

[[Page 23308]]

occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. Building service supplies.

2. First-aid supplies and safety equipment.

3. Communication service.

4. Employees' service facilities expenses.

5. Office supplies, printing and stationery.

6. Transportation expense.

7. Meals, traveling, and incidental expenses.

8. Fuel for heating.

9. Water for fire protection or general use.

10. Miscellaneous supplies, such as hand tools, drills, saw blades,

and files.

11. Research, development, and demonstration expenses.

* * * * *

551 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the maintenance of

other power generating stations. Direct field supervision of specific

jobs shall be charged to the appropriate maintenance account. (See

Sec. 1767.17(a).)

552 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of facilities used and expenses

incurred in maintenance of facilities used in other power generation,

the book cost of which is includible in Account 341, Structures and

Improvements, and Account 342, Fuel Holders, Producers and Accessories.

(See Sec. 1767.17(b).)

553 Maintenance of Generating and Electric Equipment

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant, the book cost of which is

includible in Account 343, Prime Movers; Account 344, Generators; and

Account 345, Accessory Electric Equipment. (See Sec. 1767.17(b).)

554 Maintenance of Miscellaneous Other Power Generation Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of other power generation plant, the

book cost of which is includible in Account 346, Miscellaneous Power

Plant Equipment. (See Sec. 1767.17(b).)

* * * * *

556 System Control and Load Dispatching

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in load dispatching activities for system control. Utilities

having an interconnected electric system or operating under a central

authority which controls the production and dispatching of electricity

may apportion these costs to this account and Account 561, Load

Dispatching, and Account 581, Load Dispatching.

Items

Labor:

1. Allocating loads to plants and interconnections with others.

2. Directing switching.

3. Arranging and controlling clearances for construction,

maintenance, test, and emergency purposes.

4. Controlling system voltages.

5. Recording loadings, and water conditions.

6. Preparing operating reports and data for billing and budget

purposes.

7. Obtaining reports on the weather and special events.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Expenses:

1. Communication service provided for system control purposes.

2. System record and report forms.

3. Meals, traveling, and incidental expenses.

4. Obtaining weather and special events reports.

* * * * *

560 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

the transmission system as a whole. Direct supervision of specific

activities, such as station operation and line operation shall be

charged to the appropriate account. (See Sec. 1767.17(a).)

561 Load Dispatching

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in load dispatching operations pertaining to the

transmission of electricity.

Items

Labor:

1. Direct switching.

2. Arranging and controlling clearances for construction,

maintenance, test, and emergency purposes.

3. Controlling system voltages.

4. Obtaining reports on the weather and special events.

5. Preparing operating reports and data for billing and budget

purposes.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

[[Page 23309]]

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Expenses:

1. Communication service provided for system control purposes.

2. System record and report forms.

3. Meals, traveling, and incidental expenses.

4. Obtaining weather and special events reports.

562 Station Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in operating transmission substations and switching

stations. If transmission station equipment is located in or adjacent

to a generating station, the expenses applicable to transmission

station operations shall nevertheless be charged to this account.

Items

Labor:

1. Supervising station operation.

2. Adjusting station equipment where such adjustment primarily

affects performance, such as regulating the flow of cooling water,

adjusting current in fields of a machine or changing voltage of

regulators, changing station transformer taps.

3. Inspecting, testing, and calibrating station equipment for the

purpose of checking its performance.

4. Keeping station log and records and preparing records on station

operation.

5. Operating switching and other station equipment.

6. Standing watch, guarding, and patrolling station and station

yard.

7. Sweeping, mopping, and tidying station.

8. Care of grounds, including snow removal, and grass cutting.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Building service expenses.

2. Operating supplies, such as lubricants, commutator brushes,

water, and rubber goods.

3. Station meter and instrument supplies, such as ink and charts.

4. Station record and report forms.

5. Tool expense.

6. Transportation expenses.

7. Meals, traveling, and incidental expenses.

563 Overhead Line Expenses

564 Underground Line Expenses

A. These accounts shall include the cost of labor, employee

pensions and benefits, social security and other payroll taxes,

materials used, and expenses incurred in the operation of transmission

lines.

B. If the expenses are not substantial for both overhead and

underground lines, these accounts may be combined.

Items

Labor:

1. Supervising line operation.

2. Inspecting and testing lightning arresters, circuit breakers,

switches, and grounds.

3. Load tests of circuits.

4. Routine line patrolling.

5. Routine voltage surveys made to determine the condition or

efficiency of transmission system.

6. Transferring loads, switching and reconnecting circuits and

equipment for operating purposes. (Switching for construction or

maintenance purposes is not includible in this account.)

7. Routine inspection and cleaning of manholes, conduit, network,

and transformer vaults.

8. Electrolysis surveys.

9. Inspecting and adjusting line-testing equipment, such as

voltmeters, ammeters, and wattmeters.

10. Regulation and addition of oil or gas in high-voltage cable

systems.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Transportation expenses.

2. Meals, traveling, and incidental expenses.

3. Tool expenses.

4. Operating supplies, such as instrument charts, and rubber goods.

* * * * *

566 Miscellaneous Transmission Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred in transmission map and

record work, transmission office expenses, and other transmission

expenses not provided for elsewhere.

Items

Labor:

1. General records of physical characteristics of lines and

stations, such as capacities.

2. Ground resistance records.

3. Janitor work at transmission office buildings, including care of

grounds, snow removal, and grass cutting.

4. Joint pole maps and records.

5. Line load and voltage records.

6. Preparing maps and prints.

7. General clerical and stenographic work.

8. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

[[Page 23310]]

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. Communication service.

2. Building service supplies.

3. Map and record supplies.

4. Transmission office supplies and expenses, printing and

stationery.

5. First-aid supplies.

6. Research, development, and demonstration expenses.

* * * * *

568 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of maintenance of the

transmission system. Direct field supervision of specific jobs shall be

charged to the appropriate maintenance account. (See Sec. 1767.17(a).)

569 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of structures, the book cost of

which is includible in Account 352, Structures and Improvements. (See

Sec. 1767.17(b).)

570 Maintenance of Station Equipment

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of station equipment, the book cost of

which is includible in Account 353, Station Equipment. (See

Sec. 1767.17(b).)

571 Maintenance of Overhead Lines

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of transmission plant, the book cost

of which is includible in Accounts 354, Towers and Fixtures; 355, Poles

and Fixtures; 356, Overhead Conductors and Devices; and 359, Roads and

Trails. (See Sec. 1767.17(b).)

Items

1. Work of the following character on poles, towers, and fixtures:

a. Installing or removing additional clamps or strain insulators on

guys in place.

b. Moving line or guy pole in relocation of the same pole or

section of line.

c. Painting poles, towers, crossarms, or pole extensions.

d. Readjusting and changing position of guys or braces.

e. Realigning and straightening poles, crossarms braces, and other

pole fixtures.

f. Reconditioning reclaimed pole fixtures.

g. Relocating crossarms, racks, brackets, and other fixtures on

poles.

h. Repairing or realigning pins, racks, or brackets.

i. Repairing pole supported platform.

j. Repairs by others to jointly owned poles.

k. Shaving, cutting rot, or testing poles or crossarms in use or

salvaged for reuse.

l. Stubbing poles already in service.

m. Supporting fixtures and conductors and transferring them to new

poles during pole replacements.

n. Maintenance of pole signs, stencils, and tags.

2. Work of the following character on overhead conductors and

devices:

a. Overhauling and repairing line cutouts, line switches, and line

breakers.

b. Cleaning insulators and bushings.

c. Refusing cutouts.

d. Repairing line oil circuit breakers and associated relays and

control wiring.

e. Repairing grounds.

f. Resagging, retyping, or rearranging position or spacing of

conductors.

g. Standing by phones, going to calls, cutting faulty lines clear,

or similar activities at times of emergencies.

h. Sampling, testing, changing, purifying, and replenishing

insulating oil.

i. Repairing line testing equipment.

j. Transferring loads, switching and reconnecting circuits and

equipment for maintenance purposes.

k. Trimming trees and clearing brush.

l. Chemical treatment of right of way areas when occurring

subsequent to construction of line.

3. Work of the following character on roads and trails:

a. Repairing roadways and bridges.

b. Trimming trees and brush to maintain previous roadway clearance.

c. Snow removal from roads and trails.

d. Maintenance work on publicly owned roads and trails when done by

utility at its expense.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

[[Page 23311]]

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

572 Maintenance of Underground Lines

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of transmission plant, the book cost

of which is includible in Accounts 357, Underground Conduit, and

Account 358, Underground Conductors and Devices. (See Sec. 1767.17(b).)

Items

1. Work of the following character on underground conduit:

a. Cleaning ducts, manholes, and sewer connections.

b. Minor alterations of handholes, manholes, or vaults.

c. Refastening, repairing, or moving racks, ladders, hangers in

manholes, or vaults.

d. Plugging and shelving or replugging ducts.

e. Repairs to sewers and drains, walls and floors, rings and

covers.

2. Work of the following character on underground conductors and

devices:

a. Repairing oil circuit breakers, switches, cutouts, and control

wiring.

b. Repairing grounds.

c. Retraining and reconnecting cables in manholes, including

transfer of cables from one duct to another.

d. Repairing conductors and splices.

e. Repairing or moving junction boxes and potheads.

f. Refireproofing of cables and repairing supports.

g. Repairing electrolysis preventive devices for cables.

h. Repairing cable bonding systems.

i. Sampling, testing, changing, purifying, and replenishing

insulating oil.

j. Transferring loads, switching and reconnecting circuits, and

equipment for maintenance purposes.

k. Repairing line testing equipment.

l. Repairs to oil or gas equipment in high-voltage cable system and

replacement of oil or gas.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

573 Maintenance of Miscellaneous Transmission Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of owned or leased plant which is

assignable to transmission operations and is not provided for

elsewhere. (See Sec. 1767.17(b).)

* * * * *

580 Operation Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of the operation of

the distribution system. Direct supervision of specific activities,

such as station operation, line operation, and meter department

operation shall be charged to the appropriate account. (See

Sec. 1767.17(a).)

581 Load Dispatching

This account (the keeping of which is optional with the utility)

shall include the cost of labor, employee pensions and benefits, social

security and other payroll taxes, materials used, and expenses incurred

in load dispatching operations pertaining to the distribution of

electricity.

Items

Labor:

1. Direct switching.

2. Arranging and controlling clearances for construction,

maintenance, test, and emergency purposes.

3. Controlling system voltages.

4. Preparing operating reports.

5. Obtaining reports on the weather and special events.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Expenses:

1. Communication service provided for system control purposes.

2. System record and report forms.

3. Meals, traveling, and incidental expenses.

582 Station Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the operation of distribution substations.

Items

Labor:

1. Supervising station operation.

2. Adjusting station equipment where such adjustment primarily

affects performance, such as regulating the flow of cooling water,

adjusting current in fields of a machine, changing voltage of

regulators, or changing station transformer taps.

3. Keeping station log and records and preparing reports on station

operation.

4. Inspecting, testing, and calibrating station equipment for the

purpose of checking its performance.

5. Operating switching and other station equipment.

6. Standing watch, guarding, and patrolling station and station

yard.

[[Page 23312]]

7. Sweeping, mopping, and tidying station.

8. Care of grounds, including snow removal, and grass cutting.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Building service expenses.

2. Operating, supplies, such as lubricants, commutator brushes,

water, and rubber goods.

3. Station meter and instrument supplies, such as ink and charts.

4. Station record and report forms.

5. Tool expense.

6. Transportation expense.

7. Meals, traveling, and incidental expenses.

Note: If the utility owns storage battery equipment used for

supplying electricity to customers in periods of emergency, the cost

of operating labor and of supplies, such as acid, gloves,

hydrometers, thermometers, soda, automatic cell fillers, and acid

proof shoes shall be included in this account. If significant in

amount, a separate subdivision shall be maintained for such

expenses.

583 Overhead Line Expenses

584 Underground Line Expenses

These accounts shall include, respectively, the cost of labor,

employee pensions and benefits, social security and other payroll

taxes, materials used, and expenses incurred in the operation of

overhead and underground distribution lines.

Items

Labor:

1. Supervising line operation.

2. Changing line transformer taps.

3. Inspecting and testing lightning arresters, line circuit

breakers, switches, and grounds.

4. Inspecting and testing line transformers for the purpose of

determining load, temperature, or operation performance.

5. Patrolling lines.

6. Load tests and voltage surveys of feeders, circuits, and line

transformers.

7. Removing line transformers and voltage regulators with or

without replacement.

8. Installing line transformers or voltage regulators with or

without change in capacity provided that the cost of first installation

of these items is included in Account 368, Line Transformers.

9. Voltage surveys, either routine or upon request of customers,

including voltage tests at customer's main switch.

10. Transferring loads, switching and reconnecting circuits and

equipment for operation purposes.

11. Electrolysis surveys.

12. Inspecting and adjusting line testing equipment.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Tool expense.

2. Transportation expense.

3. Meals, traveling, and incidental expenses.

4. Operating supplies, such as instrument charts, and rubber goods.

585 Street Lighting and Signal System Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in: (1) The operation of street lighting and signal

system plant which is owned or leased by the utility; and (2) the

operation and maintenance of such plant owned by customers where such

work is done regularly as a part of the street lighting and signal

system service.

Items

Labor:

1. Supervising street lighting and signal systems operation.

2. Replacing lamps and incidental cleaning of glassware and

fixtures in connection therewith.

3. Routine patrolling for lamp outages, extraneous nuisances, or

encroachments.

4. Testing lines and equipment including voltage and current

measurement.

5. Winding and inspection of time switch and other controls.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Street lamp renewals.

2. Transportation and tool expense.

3. Meals, traveling, and incidental expenses.

586 Meter Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the operation of customer meters and associated

equipment.

Items

Labor:

[[Page 23313]]

1. Supervising meter operation.

2. Clerical work on meter history and associated equipment record

cards, test cards, and reports.

3. Disconnecting and reconnecting, removing and reinstalling,

sealing and unsealing meters and other metering equipment in connection

with initiating or terminating services including the cost of obtaining

meter readings, if incidental to such operation.

4. Consolidating meter installations due to elimination of separate

meters for different rates of service.

5. Changing or relocating meters, instrument transformers, time

switches, and other metering equipment.

6. Resetting time controls, checking operation of demand meters and

other metering equipment, when done as an independent operation.

7. Inspecting and adjusting meter testing equipment.

8. Inspecting and testing meters, instrument transformers, time

switches, and other metering equipment on premises or in shops

excluding inspecting and testing incidental to maintenance.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Meter seals and miscellaneous meter supplies.

2. Transportation expenses.

3. Meals, traveling, and incidental expenses.

4. Tool expenses.

Note: The cost of the first setting and testing of a meter is

chargeable to utility plant, Account 370, Meters.

587 Customer Installations Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in work on customer installations in inspecting

premises and in rendering services to customers of the nature of those

indicated by the list of items hereunder.

Items

Labor:

1. Supervising customer installations work.

2. Inspecting premises, including the check of wiring for code

compliance.

3. Investigating, locating, and clearing grounds on customers'

wiring.

4. Investigating service complaints, including load tests of motors

and lighting and power circuits on customers' premises; field

investigations of complaints on bills or of voltage.

5. Installing, removing, renewing, and changing lamps and fuses.

6. Radio, television, and similar interference work including

erection of new aerials on customers' premises and patrolling of lines,

testing of lightning arresters, inspection of pole hardware, and

examination on or off premises of customers' appliances, wiring, or

equipment to locate cause of interference.

7. Installing, connecting, reinstalling, or removing leased

property on customers' premises.

8. Testing, adjusting, and repairing customers' fixtures and

appliances in the shop or on premises.

9. Cost of changing customers' equipment due to changes in service

characteristics.

10. Investigation of current diversion including setting and

removal of check meters and securing special readings thereon; special

calls by employees in connection with discovery and settlement of

current diversion; changes in customer wiring; and any other labor cost

identifiable as caused by current diversion.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Lamp and fuse renewals.

2. Materials used in servicing customers' fixtures, appliances, and

equipment.

3. Power, light, heat, telephone, and other expenses of the

appliance repair department.

4. Tool expense.

5. Transportation expense, including pickup and delivery charges.

6. Meals, traveling, and incidental expenses.

7. Rewards paid for discovery of current diversion.

Note A: Amounts billed customers for any work, the cost of which

is charged to this account, shall be credited to this account. Any

excess over costs resulting therefrom, shall be transferred to

Account 451, Miscellaneous Service Revenues.

Note B: Do not include in this account expenses incurred in

connection with merchandising, jobbing, and contract work.

588 Miscellaneous Distribution Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred in distribution system

operation not provided for elsewhere.

Items

Labor:

1. General records of physical characteristics of lines and

substations, such as capacities.

2. Ground resistance records.

3. Joint pole maps and records.

4. Distribution system voltage and load records.

5. Preparing maps and prints.

6. Service interruption and trouble records.

7. General clerical and stenographic work except that chargeable to

Account 586, Meter Expenses.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and

[[Page 23314]]

benefits, based upon direct labor hours, applicable to the labor items

detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Expenses:

1. Operating records covering poles, transformers, manholes,

cables, and other distribution facilities. Exclude meter records

chargeable to Account 586, Meter Expenses, and station records

chargeable to Account 582, Station Expenses, and stores records

chargeable to Account 163, Stores Expense Undistributed.

2. Janitor work at distribution office buildings including snow

removal and grass cutting.

3. Communication service.

4. Building service expenses.

5. Miscellaneous office supplies and expenses, printing and

stationery, maps and records, and first-aid supplies.

6. Research, development, and demonstration expenses.

* * * * *

590 Maintenance Supervision and Engineering

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general supervision and direction of maintenance of the

distribution system. Direct field supervision of specific jobs shall be

charged to the appropriate maintenance account. (See Sec. 1767.17(a).)

591 Maintenance of Structures

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of structures, the book cost of which

is includible in Account 361, Structures and Improvements. (See

Sec. 1767.17(b).)

592 Maintenance of Station Equipment

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant, the book cost of which is

includible in Account 362, Station Equipment, and Account 363, Storage

Battery Equipment. (See Sec. 1767.17(b).)

593 Maintenance of Overhead Lines

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of overhead distribution line

facilities, the book cost of which is includible in Account 364, Poles,

Towers and Fixtures; Account 365, Overhead Conductors and Devices; and

Account 369, Services. (See Sec. 1767.17(b).)

Items

1. Work of the following character on poles, towers, and fixtures:

a. Installing additional clamps or removing clamps or strain

insulators on guys in place.

b. Moving line or guy pole in relocation of pole or section of

line.

c. Painting poles, towers, crossarms, or pole extensions.

d. Readjusting and changing position of guys or braces.

e. Realigning and straightening poles, crossarms, braces, pins,

racks, brackets, and other pole fixtures.

f. Reconditioning reclaimed pole fixtures.

g. Relocating crossarms, racks, brackets, and other fixtures on

poles.

h. Repairing pole supported platform.

i. Repairs by others to jointly owned poles.

j. Shaving, cutting rot, or treating poles or crossarms in use or

salvaged for reuse.

k. Stubbing poles already in service.

l. Supporting conductors, transformers, and other fixtures and

transferring them to new poles during pole replacements.

m. Maintaining pole signs, stencils, and tags.

2. Work of the following character on overhead conductors and

devices:

a. Overhauling and repairing line cutouts, line switches, line

breakers, and capacitor installations.

b. Cleaning insulators and bushings.

c. Refusing line cutouts.

d. Repairing line oil circuit breakers and associated relays and

control wiring.

e. Repairing grounds.

f. Resagging, retying, or rearranging position or spacing of

conductors.

g. Standing by phones, going to calls, cutting faulty lines clear,

or similar activities at times of emergency.

h. Sampling, testing, changing, purifying, and replenishing

insulating oil.

i. Transferring loads, switching, and reconnecting circuits and

equipment for maintenance purposes.

j. Repairing line testing equipment.

k. Trimming trees and clearing brush.

l. Chemical treatment of right-of-way area when occurring

subsequent to construction of line.

3. Work of the following character on overhead services:

a. Moving position of service either on pole or on customers'

premises.

b. Pulling slack in service wire.

c. Retying service wire.

d. Refastening or tightening service bracket.

Taxes:

[[Page 23315]]

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

594 Maintenance of Underground Lines

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of underground distribution line

facilities, the book cost of which is includable in Account 366,

Underground Conduit; Account 367, Underground Conductors and Devices;

and Account 369, Services. (See Sec. 1767.17(b).)

Items

1. Work of the following character on underground conduit:

a. Cleaning ducts, manholes, and sewer connections.

b. Moving or changing position of conduit or pipe.

c. Minor alterations of handholes, manholes, or vaults.

d. Refastening, repairing, or moving racks, ladders, or hangers in

manholes or vaults.

e. Plugging and shelving ducts.

f. Repairs to sewers, drains, walls, and floors, rings, and covers.

2. Work of the following character on underground conductors and

devices:

a. Repairing circuit breakers, switches, cutouts, network

protectors, and associated relays and control wiring.

b. Repairing grounds.

c. Retraining and reconnecting cables in manholes including

transfer of cables from one duct to another.

d. Repairing conductors and splices.

e. Repairing or moving junction boxes and potheads.

f. Refireproofing cables and repairing supports.

g. Repairing electrolysis preventive devices for cables.

h. Repairing cable bonding systems.

i. Sampling, testing, changing, purifying, and replenishing

insulating oil.

j. Transferring loads, switching and reconnecting circuits and

equipment for maintenance purposes.

k. Repairing line testing equipment.

l. Repairing oil or gas equipment in high voltage cable systems and

replacement of oil or gas.

3. Work of the following character on underground services:

a. Cleaning ducts.

b. Repairing any underground service plant.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

595 Maintenance of Line Transformers

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of distribution line transformers, the

book cost of which is includable in Account 368, Line Transformers.

(See Sec. 1767.17(b).)

596 Maintenance of Street Lighting and Signal Systems

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant, the book cost of which is

includable in Account 373, Street Lighting and Signal Systems. (See

Sec. 1767.17(b).)

597 Maintenance of Meters

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in the maintenance of meters and meter testing

equipment, the book cost of which is includable in Account 370, Meters,

and Account 395, Laboratory Equipment, respectively. (See

Sec. 1767.17(b).)

598 Maintenance of Miscellaneous Distribution Plant

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in maintenance of plant, the book cost of which is

includable in Accounts 371, Installations on Customers' Premises, and

Account 372, Leased Property on Customers' Premises, and any other

plant the maintenance of which is assignable to the distribution

function and is not provided for elsewhere. (See Sec. 1767.17(b).)

Items

1. Work of similar nature to that listed in other distribution

maintenance accounts.

2. Maintenance of office furniture and equipment used by

distribution system department.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

[[Page 23316]]

6. Section 1767.28 is proposed to be amended by revising Accounts 901,

902, 903, and 905 to read as follows:

Sec. 1767.28 Customer accounts expenses.

* * * * *

901 Supervision

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general direction and supervision of customer

accounting and collecting activities. Direct supervision of a specific

activity shall be charged to Account 902, Meter Reading Expenses, or

Account 903, Customer Records and Collection Expenses, as appropriate.

(See Sec. 1767.17(a).)

902 Meter Reading Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in reading customer meters, and determining

consumption when performed by employees engaged in reading meters.

Items

Labor:

1. Addressing forms for obtaining meter readings by mail.

2. Changing and collecting meter charts used for billing purposes.

3. Inspecting time clocks and checking seals when performed by

meter readers and the work represents a minor activity incidental to

regular meter reading routine.

4. Reading meters, including demand meters, and obtaining load

information for billing purposes. Exclude and charge to Account 586,

Meter Expenses, or to Account 903, Customer Records and Collection

Expenses, as applicable, the cost of obtaining meter readings, first

and final, if incidental to the operation of removing or resetting,

sealing or locking, and disconnecting or reconnecting meters.

5. Computing consumption from meter reader's book or from reports

by mail when done by employees engaged in reading meters.

6. Collecting from prepayment meters when incidental to meter

reading.

7. Maintaining record of customers' keys.

8. Computing estimated or average consumption when performed by

employees engaged in reading meters.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Badges, lamps, and uniforms.

2. Demand charts, meter books and binders and forms for recording

readings, but not the cost of preparation.

3. Postage and supplies used in obtaining meter readings by mail.

4. Transportation, meals, and incidental expenses.

903 Customer Records and Collection Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in work on customer applications, contracts, orders,

credit investigations, billing and accounting, collections and

complaints.

Items

Labor:

1. Receiving, preparing, recording, and handling routine orders for

service, disconnections, transfers or meter tests initiated by the

customer, excluding the cost of carrying out such orders, which is

chargeable to the account appropriate for the work called for by such

orders.

2. Investigations of customers' credit and keeping of records

pertaining thereto, including records of uncollectible accounts written

off.

3. Receiving, refunding, or applying customer deposits and

maintaining customer deposit, line extension, and other miscellaneous

records.

4. Checking consumption shown by meter readers' reports where

incidental to preparation of billing date.

5. Preparing address plates and addressing bills and delinquent

notices.

6. Preparing billing data.

7. Operating billing and bookkeeping machines.

8. Verifying billing records with contracts or rate schedules.

9. Preparing bills for delivery and mailing or delivering bills.

10. Collecting revenues, including collection from prepayment

meters, unless incidental to meter-reading operations.

11. Balancing collections, preparing collections for deposit, and

preparing cash reports.

12. Posting collections and other credits or charges to customer

accounts and extending unpaid balances.

13. Balancing customer accounts and controls.

14. Preparing, mailing, or delivering delinquent notices and

preparing reports of delinquent accounts.

15. Final meter reading of delinquent accounts when done by

collectors incidental to regular activities.

16. Disconnecting and reconnecting service because of nonpayment

bills.

17. Receiving, recording, and handling of inquiries, complaints,

and requests for investigations from customers, including preparation

of necessary orders, but excluding the cost of carrying out such

orders, which is chargeable to the account appropriate for the work

called for by such orders.

18. Statistical and tabulating work on customer accounts and

revenues, but not including special analyses for sales department, rate

department, or other general purposes, unless incidental to regular

customer accounting routines.

19. Preparing and periodically rewriting meter reading sheets.

20. Determining consumption and computing estimated or average

consumption when performed by employees other than those engaged in

reading meters.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

[[Page 23317]]

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Address plates and supplies.

2. Cash overages and shortages.

3. Commissions or fees to others for collecting.

4. Payments to credit organizations for investigations and reports.

5. Postage.

6. Transportation expenses, including transportation of customer

bills and meter books under centralized billing procedures.

7. Transportation, meals, and incidental expenses.

8. Bank charges, exchange, and other fees for cashing and

depositing customers' checks.

9. Forms for recording orders for services, or removals.

10. Rent of mechanical equipment.

Note: The cost of work on meter history and meter location

records is chargeable to Account 586, Meter Expenses.

* * * * *

905 Miscellaneous Customer Accounts Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred not provided for in other

accounts.

Items

Labor:

1. General clerical and stenographic work.

2. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. Communication service.

2. Miscellaneous office supplies and expenses and stationery and

printing other than those specifically provided for in Account 902 and

Account 903.

7. Section 1767.29 is proposed to be amended by revising Accounts 907,

908, 909, and 910 to read as follows:

Sec. 1767.29 Customer service and informational expenses.

* * * * *

907 Supervision

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general direction and supervision of customer service

activities, the object of which is to encourage safe, efficient, and

economical use of the utility's service. Direct supervision of a

specific activity within customer service and informational expense

classification shall be charged to the account wherein the costs of

such activity are included. (See Sec. 1767.17(a).)

908 Customer Assistance Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in providing instructions or assistance to customers,

the object of which is to encourage safe, efficient, and economical use

of the utility's service.

Items

Labor:

1. Direct supervision of department.

2. Processing customer inquiries relating to the proper use of

electric equipment, the replacement of such equipment, and information

related to such equipment.

3. Advice directed to customers as to how they may achieve the most

efficient and safest use of electric equipment.

4. Demonstrations, exhibits, lectures, and other programs designed

to instruct customers in the safe, economical, or efficient use of

electric service, and/or oriented toward conservation of energy.

5. Engineering and technical advice to customers, the object of

which is to promote safe, efficient, and economical use of the

utility's service.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

[[Page 23318]]

Materials and Expenses:

1. Supplies and expenses pertaining to demonstrations, exhibits,

lectures, and other programs.

2. Loss in value on equipment and appliances used for customer

assistance programs.

3. Office supplies and expenses.

4. Transportation, meals, and incidental expenses.

Note: Do not include in this account expenses that are provided

for elsewhere, such as Accounts 416, Costs and Expenses of

Merchandising, Jobbing, and Contract Work; 587, Customer

Installations Expenses; and 912, Demonstrating and Selling Expenses.

909 Informational and Instructional Advertising Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in activities which primarily convey information as

to what the utility urges or suggests customers should do in utilizing

electric service to protect health and safety, to encourage

environmental protection, to utilize their electric equipment safely

and economically, or to conserve electric energy.

Items

Labor:

1. Direct supervision of information activities.

2. Preparing informational materials for newspapers, periodicals,

and billboards and preparing and conducting informational motion

pictures, radio and television programs.

3. Preparing informational booklets and bulletins used in direct

mailings.

4. Preparing informational window and other displays.

5. Employing agencies, selecting media, and conducting negotiations

in connection with the placement and subject matter of information

programs.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Use of newspapers, periodicals, billboards, and radio for

informational purposes.

2. Postage on direct mailings to customers exclusive of postage

related to billings.

3. Printing of informational booklets, dodgers, and bulletins.

4. Supplies and expenses in preparing informational materials by

the utility.

5. Office supplies and expenses.

Note A: Exclude from this account and charge to Account 930.2,

Miscellaneous General Expenses, the cost of publication of

stockholder reports, dividend notices, bond redemption notices,

financial statements, and other notices of a general corporate

character. Also exclude all expenses of a promotional,

institutional, goodwill, or political nature, which are includible

in such accounts as 913, Advertising Expenses; 930.1, General

Advertising Expenses; and 426.4, Expenditures for Certain Civic,

Political and Related Activities.

Note B: Entries relating to informational advertising included

in this account shall contain or refer to supporting documents which

identify the specific advertising message. If references are used,

copies of the advertising message shall be readily available.

910 Miscellaneous Customer Service and Informational Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred in connection with

customer service and informational activities which are not includible

in other customer information expense accounts.

Items

Labor:

1. General clerical and stenographic work not assigned to specific

customer service and informational programs.

2. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. Communication service.

2. Printing, postage, and office supplies expenses.

8. Section 1767.30 is proposed to be amended by revising Accounts 911,

912, 913, and 916 to read as follows:

[[Page 23319]]

Sec. 1767.30 Sales expenses.

* * * * *

911 Supervision

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, and expenses

incurred in the general direction and supervision of sales activities,

except merchandising. Direct supervision of a specific activity, such

as demonstrating, selling, or advertising shall be charged to the

account wherein the costs of such activity are included. (See

Sec. 1767.17(a).)

912 Demonstrating and Selling Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in promotional, demonstrating, and selling

activities, except by merchandising, the object of which is to promote

or retain the use of utility services by present and prospective

customers.

Items

Labor:

1. Demonstrating uses of utility services.

2. Conducting cooking schools, preparing recipes, and related home

service activities.

3. Exhibitions, displays, lectures, and other programs designed to

promote use of utility services.

4. Experimental and development work in connection with new and

improved appliances and equipment, prior to general public acceptance.

5. Solicitation of new customers or of additional business from old

customers, including commissions paid employees.

6. Engineering and technical advice to present or prospective

customers in connection with promoting or retaining the use of utility

services.

7. Special customer canvasses when their primary purpose is the

retention of business or the promotion of new business.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Supplies and expenses pertaining to demonstration, experimental,

and development activities.

2. Booth and temporary space rental.

3. Loss in value on equipment and appliances used for demonstration

purposes.

4. Transportation, meals, and incidental expenses.

913 Advertising Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in advertising designed to promote or retain the use

of utility service, except advertising the sale of merchandise by the

utility.

Items

Labor:

1. Direct supervision of department.

2. Preparing advertising material for newspapers, periodicals, and

billboards, and preparing and conducting motion pictures, radio, and

television programs.

3. Preparing booklets and bulletins used in direct mail

advertising.

4. Preparing window and other displays.

5. Clerical and stenographic work.

6. Investigating advertising agencies and media and conducting

negotiations in connection with the placement and subject matter of

sales advertising.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Advertising in newspapers, periodicals, billboards, and radio

for sales promotion purposes, but not including institutional or

goodwill advertising includible in Account 930.1, General Advertising

Expenses.

2. Materials and services given as prizes or otherwise in

connection with civic lighting contests, canning, or cooking contests,

and bazaars in order to publicize and promote the use of utility

services.

3. Fees and expenses of advertising agencies and commercial

artists.

4. Novelties for general distribution.

5. Postage on direct mail advertising.

6. Premiums distributed generally, such as recipe books when not

offered as inducement to purchase appliances.

7. Printing booklets, dodgers, and bulletins.

8. Supplies and expenses in preparing advertising material.

9. Office supplies and expenses.

Note A: The cost of advertisements which set forth the value or

advantages of utility service without reference to specific

appliances, or, if reference is made to appliances, invites the

reader to purchase appliances from his dealer or refer to appliances

not carried for sale by the utility, shall be considered sales

promotion advertising and charged to this account. However,

advertisements which are limited to specific makes of appliances

sold by the utility and price and terms, thereof, without referring

to the value or advantages of utility service, shall be considered

as merchandise advertising and the cost shall be charged to Costs

and Expenses of Merchandising, Jobbing and Contract Work, Account

416.

Note B: Advertisements which substantially mention or refer to

the value or advantages of utility service, together with specific

reference to makes of appliance sold by the utility and the price,

and terms, thereof, and designed for the joint purpose of increasing

the use of utility service and the sales of appliances, shall be

considered as a combination advertisement and the costs shall be

distributed between this account and Account 416 on the basis of

space, time, or other proportional factors.

Note C: Exclude from this account and charge to Account 930.2,

Miscellaneous General Expenses the cost of publication of

stockholder reports, dividend notices, bond redemption notices,

financial statements, and other notices of a general corporate

character.

[[Page 23320]]

Also exclude all institutional or goodwill advertising. (See Account

930.1, General Advertising Expenses.)

916 Miscellaneous Sales Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, insurance, property

taxes, materials used, and expenses incurred in connection with sales

activities, except merchandising, which are not includible in other

sales expense accounts.

Items

Labor:

1. General clerical and stenographic work not assigned to specific

functions.

2. Special analysis of customer accounts and other statistical work

for sales purposes not a part of the regular customer accounting and

billing routine.

3. Miscellaneous labor.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

3. Property.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Insurance:

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

6. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

7. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

8. Fees and expenses of claim investigators.

9. Payment of awards to claimants for court costs and attorneys'

services.

10. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

11. Compensation payments under workmen's compensation laws.

12. Compensation paid while incapacitated as the result of

occupational injuries. (See Account 924, Note A.)

13. Cost of safety, accident prevention, and similar educational

activities.

Materials and Expenses:

1. Communication service.

2. Printing, postage, office supplies, and expenses applicable to

sales activities, except those chargeable to Account 913, Advertising

Expenses.

9. Section 1767.31 is proposed to be amended by revising Accounts 920,

924, 925, 926, 930.1, 930.2, and 935 to read as follows:

Sec. 1767.31 Administrative and general expenses.

* * * * *

920 Administrative and General Salaries

A. This account shall include the compensation (salaries, bonuses,

employee pensions and benefits, social security and other payroll

taxes, and other consideration for services, but not including

directors' fees) of officers, executives, and other employees of the

utility properly chargeable to utility operations and not chargeable

directly to a particular operating function.

B. This account may be subdivided in accordance with a

classification appropriate to the departmental or other functional

organization of the utility.

* * * * *

924 Property Insurance

A. This account shall include the cost of insurance or reserve

accruals to protect the utility against losses and damages to owned or

leased property used in its utility operations. It shall also include

the cost of labor, employee pensions and benefits, social security and

other payroll taxes and the related supplies and expenses incurred in

property insurance activities.

B. Recoveries from insurance companies or others for property

damages shall be credited to the account charged with the cost of the

damage. If the damaged property has been retired, the credit shall be

to the appropriate account for accumulated provision for depreciation.

C. Records shall be kept so as to show the amount of coverage for

each class of insurance carried, the property covered, and the

applicable premiums. Any dividends distributed by mutual insurance

companies shall be credited to the accounts to which the insurance

premiums were charged.

Items

1. Premiums payable to insurance companies for fire, storm,

burglary, boiler explosion, lightning, fidelity, riot, and similar

insurance.

2. Amounts credited to Account 228.1, Accumulated Provision for

Property Insurance, for similar protection.

3. Special costs incurred in procuring insurance.

4. Insurance inspection service.

5. Insurance counsel, brokerage fees, and expenses.

Note A: The cost of insurance or reserve accruals capitalized,

shall be charged to construction and retirement either directly or

by transfers to construction and retirement work orders from this

account.

Note B: The cost of insurance or reserve accruals for the

following classes of property shall be charged as indicated:

1. Materials, supplies, and stores equipment to Account 163, Stores

Expense Undistributed, or appropriate materials account.

2. Transportation and other general equipment to appropriate

clearing accounts that may be maintained.

3. Electric plant leased to others to Account 413, Expenses of

Electric Plant Leased to Others.

4. Nonutility property to the appropriate nonutility income

account.

5. Merchandise and jobbing property to Account 416, Costs and

Expenses of Merchandising, Jobbing and Contract Work.

Note C: The cost of labor, employee pensions and benefits,

social security and other payroll taxes, and the related supplies

and expenses of administrative and general employees who are only

incidentally engaged in property insurance work may be included in

Account 920 and Account 921, as appropriate.

Note D: The cost of insurance or reserve accruals applicable to

the various utility

[[Page 23321]]

functions shall be charged to the appropriate miscellaneous

operations or administrative expense accounts either directly or by

transfers from this account.

925 Injuries and Damages

A. This account shall include the cost of insurance or reserve

accruals to protect the utility against injuries and damages claims of

employees or others, losses of such character not covered by insurance,

and expenses incurred in settlement of injuries and damages claims. It

shall also include the cost of labor, employee pensions and benefits,

social security and other payroll taxes, related supplies, and expenses

incurred in injuries and damages activities.

B. Reimbursements from insurance companies or others for expenses

charged hereto on account of injuries, damages, and insurance dividends

or refunds shall be credited to this account.

Items

1. Premiums payable to insurance companies for protection against

claims from injuries and damages by employees or others, such as public

liability, property damages, casualty, employee liability, etc., and

amounts credited to Account 228.2, Accumulated Provision for Injuries

and Damage, for similar protection.

2. Losses not covered by insurance or reserve accruals on account

of injuries or deaths to employees or others and damages to the

property of others.

3. Fees and expenses of claim investigators.

4. Payment of awards to claimants for court costs and attorneys'

services.

5. Medical and hospital service and expenses for employees as the

result of occupational injuries or resulting from claims of others.

6. Compensation payments under workmen's compensation laws.

7. Compensation paid while incapacitated as the result of

occupational injuries. (See NOTE A.)

8. Cost of safety, accident prevention, and similar educational

activities.

Note A: Payments to or in behalf of employees for accident or

death benefits, hospital expenses, medical expenses, or for salaries

while incapacitated for service or on leave of absence beyond

periods normally allowed, when not the result of occupational

injuries, shall be charged to Account 926, Employee Pensions and

Benefits. (See also Note B of Account 926.)

Note B: The cost of injuries and damages or reserve accruals

capitalized shall be charged to construction and retirement

activities either directly or by transfers from this account to the

applicable construction and retirement work orders.

Note C: The cost of insurance or reserve accruals applicable to

the various utility functions shall be charged to the appropriate

miscellaneous operations or administrative expense accounts either

directly or by transfers from this account.

Note D: Exclude herefrom the time and expenses of employees

(except those engaged in injuries and damages activities) spent in

attendance at safety and accident prevention educational meetings,

if occurring during the regular work period.

Note E: The cost of labor, employee pensions and benefits,

social security and other payroll taxes, and the related supplies

and expenses of administrative and general employees who are only

incidentally engaged in injuries and damages activities, may be

included in Account 920 and Account 921, as appropriate.

926 Employee Pensions and Benefits

A. This account shall include pensions paid to or on behalf of

retired employees or accruals to provide for pensions or payments for

the purchase of annuities for this purpose, when the utility has

definitely, by contract, committed itself to a pension plan under which

the pension funds are irrevocably devoted to pension purposes and

payments for employee accident, sickness, hospital, and death benefits,

or insurance therefor. Include, also, expenses incurred in medical,

educational, or recreational activities for the benefit of employees

and administrative expenses in connection with employee pensions and

benefits.

B. The utility shall maintain a complete record of accruals or

payments for pensions and be prepared to furnish full information to

RUS of the plan under which it has created or proposes to create a

pension fund and a copy of the declaration of trust or resolution under

which the pension plan is established.

C. There shall be credited to this account, the portion of pensions

and benefits expenses which is applicable to nonutility operations, the

specific functional operations, maintenance, and administrative expense

accounts, and to construction and retirement activities unless such

amounts are distributed directly to the accounts involved and are not

included herein in the first instance.

D. Records in support of this account shall be so kept that the

total pensions expense, the total benefits expense, the administrative

expenses included herein, and the amounts of pensions and benefits

expenses transferred to the operations, maintenance, administrative,

construction or retirement accounts will be readily available.

Items

1. Payment of pensions to retirees on a nonaccrual basis.

2. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

3. Group and life insurance premiums (credit dividends received).

4. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

5. Payments for accident, sickness, hospital, and death benefits or

insurance.

6. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

7. Expenses in connection with educational and recreational

activities for the benefit of employees.

Note A: The cost of labor, employee pensions and benefits,

social security and other payroll taxes, and the related supplies

and expenses of administrative and general employees who are only

incidentally engaged in employee pension and benefit activities may

be included in Account 920 and Account 921, as appropriate.

Note B: Salaries paid to employees during periods of

nonoccupational sickness may be charged to the appropriate labor

account rather than to employee benefits.

* * * * *

930.1 General Advertising Expenses

This account shall include the cost of labor, employee pensions and

benefits, social security and other payroll taxes, materials used, and

expenses incurred in advertising and related activities, the cost of

which by their content and purpose are not provided for elsewhere.

Items

Labor:

1. Supervision.

2. Preparing advertising material for newspapers, periodicals, and

billboards and preparing or conducting motion pictures, radio, and

television programs.

3. Preparing booklets and bulletins used in direct mail

advertising.

4. Preparing window and other displays.

5. Clerical and stenographic work.

6. Investigating and employing advertising agencies, selecting

media, and conducting negotiations in connection with the placement and

subject matter of advertising.

Taxes:

1. Federal and state unemployment.

2. F.I.C.A.

Employee Pensions and Benefits: The portion of employee pensions

and benefits, based upon direct labor hours, applicable to the labor

items detailed above, including:

[[Page 23322]]

1. Accruals for or payments to pension funds or to insurance

companies for pension purposes.

2. Group and life insurance premiums (credit dividends received).

3. Payments for medical and hospital services and expenses of

employees when not the result of occupational injuries.

4. Payments for accident, sickness, hospital, and death benefits or

insurance.

5. Payments to employees incapacitated for service or on leave of

absence beyond periods normally allowed when not the result of

occupational injuries or in excess of statutory awards.

6. Expenses in connection with educational and recreational

activities for the benefit of employees.

Materials and Expenses:

1. Advertising in newspapers, periodicals, billboards, and radios.

2. Advertising matter such as posters, bulletins, booklets, and

related items.

3. Fees and expenses of advertising agencies and commercial

artists.

4. Postage and direct mail advertising.

5. Printing of booklets, dodgers, and bulletins.

6. Supplies and expenses in preparing advertising materials.

7. Office supplies and expenses.

Note A: Prope

This text is long and has been trimmed here. Open the source document for the complete record.