identification of tax effects (both positive and negative) relating to Utility Operating Income (by department), Utility Plant Leased to Others and Other Utility Operating Income. 409.2 Income taxes, other income and deductions. This account shall include the amount of those local, state and federal income taxes (both positive and negative), which relate to Other Income and Deductions. 409.3 Income taxes, extraordinary items. This account shall include the amount of those local, state and federal income taxes (both positive and negative), which relate to Extraordinary Items. 410 [Reserved] Special 410.1, Instructions, Accounts 410.2, 411.1 and 411.2. A. Accounts 410.1 and 410.2 shall be debited, and Accumulated Deferred Income Taxes shall be credited with amounts equal to any current deferrals of taxes on income or any allocations of deferred taxes originating in prior periods, as provided by the texts of accounts 190, 281, 282 and 283. There shall not be netted against entries required to be made to these accounts any credit amounts appropriately includible in accounts 411.1 or 411.2. B. Accounts 411.1 and 411.2 shall be credited, and Accumulated Deferred Income Taxes shall be debited with amounts equal to any allocations of deferred taxes originating in prior periods or any current deferrals of taxes on income, as provided by the texts of accounts 190, 281, 282, and 283. There shall not be netted against entries required to be made to these accounts any debit amounts appropriately includible in accounts 410.1 or 410.2. 410.1 Provision for deferred income taxes, utility operating income. This account shall include the amounts of those deferrals of taxes and allocations of deferred taxes which relate to Utility Operating Income (by department). 410.2 Provision for deferred income taxes, other income and deductions. This account shall include the amounts of those deferrals of taxes and allocations of deferred taxes which relate to other income and deductions. 411 [Reserved] 411.1 Provision for deferred income taxes-Credit, utility operating income. This account shall include the amounts of those allocations of deferred taxes and deferrals of taxes, credit, which relate to Utility Operating Income (by department). 411.2 Provision for deferred income taxes-Credit, other income and deduc tions. This account shall include the amounts of those allocations of deferred taxes and deferrals of taxes, credit, which relate to Other Income and Deductions. 411.3 [Reserved] SPECIAL INSTRUCTIONS-ACCOUNTS 411.4 AND 411.5 A. Account 411.4 shall be debited with the amounts of investment tax credits related to gas utility property that are credited to account 255, Accumulated Deferred Investment Tax Credits, by companies which do not apply the entire amount of the benefits of the investment credit as a reduction of the overall income tax expense in the year in which such credit is realized (see account 255). B. Account 411.4 shall be credited with the amounts debited to account 255 for proportionate amounts of tax credit deferrals allocated over the average useful life of gas utility property to which the tax credits relate or such lesser period of time as may be adopted and consistently followed by the company. C. Account 411.5 shall also be debited and credited as directed in paragraphs A and B, for investment tax credits related to nonutility property. 411.4 Investment tax credit adjustments, utility operations. This account shall include the amount of those investment tax credit adjustments related to property used in Utility Operations (by department). 411.5 Investment tax credit adjustments, nonutility operations. This account shall include the amount of those investment tax credit adjustments related to property used in Nonutility Operations. 411.6 Gains from disposition of utility plant. This account shall include, as approved by the Commission, amounts relating to gains from the disposition of future use utility plant including amounts which were previously recorded in and transferred from account 105, Gas Plant Held for Future Use and account 105.1, Production Properties Held for Future Use, under the provisions of paragraphs B, C, and D thereof. Income taxes relating to gains recorded in this account shall be recorded in account 409.1, Income Taxes, Utility Operating Income. 411.7 Losses from disposition of utility plant. This account shall include, as approved by the Commission, amounts relating to losses from the disposition of future use utility plant including amounts which were previously recorded in and transferred from account 105, Gas Plant Held for Future Use and account 105.1, Production Properties Held for Future Use, under the provisions of paragraphs B, C, and D thereof. Income taxes relating to losses recorded in this account shall be recorded in account 409.1, Income Taxes, Utility Operating Income. 412 Revenues from gas plant leased to others. 413 Expenses of gas plant leased to others. A. These accounts shall include, respectively, revenues from gas property constituting a distinct operating unit or system leased by the utility to others, and which property is properly includible in account 104, Gas Plant Leased to Others, and the expenses attributable to such property. B. The detail of expenses shall be kept or supported so as to show separately the following: Operation. Maintenance. Depreciation. Amortization. NOTE: Related taxes shall be recorded in account 408.1, Taxes Other Than Income Taxes, Utility Operating Income, or account 409.1, Income Taxes, Utility Operating Income, as appropriate. 414 Other utility operating income. A. This account shall include the revenues received and expenses incurred in connection with the operations of utility plant, the book cost of which is included in account 118, Other Utility Plant. B. The expenses shall include every element of cost incurred in such operations, including depreciation, rents, and insurance. NOTE: Related taxes shall be recorded in account 408.1, Taxes Other Than Income Taxes, Utility Operating Income, or account 409.1, Income Taxes, Utility Operating Income, as appropriate. 2. OTHER INCOME AND DEDUCTIONS A. OTHER INCOME 415 Revenues from merchandising, jobbing and contract work. 416 Costs and expenses of merchandising, jobbing and contract work. A. These accounts shall include, respectively, all revenues derived from the sale of merchandise and jobbing or contract work, including any profit or commission accruing to the utility on jobbing work performed by it as agent under contracts whereby it does jobbing work for another for a stipulated profit or commission, and all expenses incurred in such activities. Interest related income from installment sales shall be recorded in Account 419, Interest and Dividend Income. B. Records in support of these accounts shall be so kept as to permit ready summarization of revenues, costs and expenses by such major items as are feasible. NOTE A: The classification of revenues, costs and expenses of merchandising, jobbing and contract work as nonoperating. and thus inclusion in this account, is for accounting purposes. It does not preclude consideration for justification to the contrary for ratemaking or other purpose. NOTE B: Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or ac 1. Canvassing and demonstrating appliances in homes and other places for the purpose of selling appliances. 2. Demonstrating and selling activities in sales rooms. 3. Installing appliances on customer premises where such work is done only for purchasers of appliances from the utility. 4. Installing piping or other property work on a jobbing or contract basis. 5. Preparing advertising materials for appliance sales purposes. 6. Receiving and handling customer orders for merchandise or for jobbing services. 7. Cleaning and tidying sales rooms. 8. Maintaining display counters and other equipment used in merchandising. 9. Arranging merchandise in sales rooms and decorating display windows. 10. Reconditioning repossessed appliances. 11. Bookkeeping and other clerical work in connection with merchandise and jobbing activities. 12. Supervising merchandise and jobbing operations. Materials and expenses: 13. Advertising in newspapers, periodicals, radio, television, etc. 14. Cost of merchandise sold and of materials used in jobbing work. 15. Stores expenses on merchandise and jobbing stocks. 16. Fees and expenses of advertising and commercial artists' agencies. 17. Printing booklets, dodgers, and other advertising data. 18. Premiums given as inducement to buy appliances. 19. Light, heat, and power. 20. Depreciation on equipment used primarily for merchandise and jobbing operations. 21. Rent of sales rooms or of equipment. 22. Transportation expense in delivery and pick-up of appliances by utility's facilities or by others. 23. Stationery and office supplies and expenses. 24. Losses from uncollectible merchandise and jobbing accounts. 417 Revenues from nonutility operations. 417.1 Expenses of nonutility operations. A. These accounts shall include revenues and expenses applicable to operations which are nonutility in character but nevertheless constitute a distinct operating activity of the enterprise as a whole, such as the operation of an ice department where applicable statutes do not define such operation as a utility, or the operation of a servicing organization for furnishing supervision, management, engineering, and similar services to others. B. The expenses shall include all elements of costs incurred in such operations, and the accounts shall be maintained so as to permit ready summarization as follows: Operation. Maintenance. Rents. Depreciation. Amortization. NOTE B: Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate. 418 Nonoperating rental income. A. This account shall include all rent revenues and related expenses of land, buildings, or other property included in account 121, Nonutility Property, which is not used in operations covered by accounts 417 or 417.1. B. The expenses shall include all elements of costs incurred in the ownership and rental of property and the accounts shall be maintained so as to permit ready summarization as follows: Operation. Maintenance. Rents. Depreciation. Amortization. NOTE: Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate. B. This account may include the pro rata amount necessary to extinguish (during the interval between the date of acquisition and the date of maturity) the difference between the cost to the utility and the face value of interest-bearing securities. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. C. Where significant in amount expenses, excluding operating taxes and income taxes, applicable to security investments and to interest and dividend revenues thereon shall be charged hereto. NOTE A: Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate. NOTE B: Interest accrued, the payment of which is not reasonably assured, dividends receivable which have not been declared or guaranteed, and interest or dividends upon reacquired securities issued or assumed by the utility shall not be credited to this account. 420 Investment tax credits. This account shall be credited as follows with investment tax credit amounts not passed on to customers: (a) By amounts equal to debits to accounts 411.4, Investment Tax Credit Adjustments, Utility Operations, and 411.5, Investment Tax Credit Adjustments, Nonutility Operations, for investment tax credits used in calculating income taxes for the year when the company's accounting provides for nondeferral of all or a portion of such credits; and, (b) By amounts equal to debits to account 255, Accumulated Deferred Investment Tax Credits, for proportionate amounts of tax credit deferrals allocated over the average useful life of the property to which the tax credits relate, or such lesser period of time as may be adopted and consistently used by the company. 421 Miscellaneous nonoperating income. This account shall include all revenue and expense items except taxes properly includible in the income account and not provided for elsewhere. Related taxes shall be recorded in account 408.2, Taxes Other Than Income Taxes, Other Income and Deductions, or account 409.2, Income Taxes, Other Income and Deductions, as appropriate. ITEMS 1. Profit on sale of timber. (See gas plant instruction 7C.) 2. Profits from operations of others realized by the utility under contracts. 3. Gains on disposition of investments. Also gains on reacquisition and resale or retirement of utilities debt securities when the gain is not amortized and used by a jurisdictional regulatory agency to reduce embedded debt cost in establishing rates. See General Instruction 17. 421.1 Gain on disposition of property. This account shall be credited with the gain on the sale, conveyance, exchange or transfer of utility or other property to another. Amounts relating to gains on land and land rights held for future use recorded in accounts 105, Gas Plant Held for Future Use and 105.1, Production Properties Held for Future Use, will be accounted for as prescribed in paragraphs B, C, and D thereof. (See gas plant instructions 5F, 7E, and 10E.) Income taxes on gains recorded in this account shall be recorded in account 409.2, Income Taxes, Other Income and Deductions. B. OTHER INCOME DEDUCTIONS 421.2 Loss on disposition of property. This account shall be charged with the loss on the sale, conveyance, exchange or transfer of utility or other property to another. Amounts relating to losses on land and land rights held for future use recorded in accounts 105, Gas Plant Held for Future Use and 105.1, Production Properties Held for Future Use, will be accounted for as prescribed in paragraphs B, C, and D thereof. (See gas plant instructions 5F, 7E, and 10E.) The reduction in income taxes relating to losses recorded in this account shall be recorded in account 409.2, Income Taxes, Other Income and Deductions. 425 Miscellaneous amortization. This account shall include amortization charges not includible in other accounts which are properly deductible in determining the income of the utility before interest charges. Charges includible herein, if significant in amount, must be in accordance with an orderly and systematic amortization program. ITEMS 1. Amortization of utility plant acquisition adjustments, or of intangibles included in utility plant in service when not authorized to be included in utility operating expenses by the Commission. 2. Amortization of amounts in account 182, Extraordinary Property Losses, when not authorized to be included in utility operating expenses by the Commission. 3. Amortization of capital stock discount or expenses when in accordance with a systematic amortization program. SPECIAL INSTRUCTIONS-ACCOUNTS 426.1, These accounts shall include miscellaneous expense items which are nonoperating in nature but which are properly deductible before determining total income before interest charges. NOTE: The classification of expenses as nonoperating and their inclusion in these accounts is for accounting purposes. It does not preclude Commission consideration of proof to the contrary for ratemaking or other purposes. 426.1 Donations. This account shall include all payments or donations for charitable, social or community welfare purposes. 426.2 Life insurance. This account shall include all payments for life insurance of officers and employees where company is beneficiary (net premiums less increase in cash surrender value of policies). 426.3 Penalties. This account shall include payments by the company for penalties or fines for violation of any regulatory statutes by the company or its officials. 426.4 Expenditures for certain civic, political and related activities. This account shall include expenditures for the purpose of influencing public opinion with respect to the election or appointment of public officials, referenda, legislation, or ordinances (either with respect to the possible adoption of new referenda, legislation or ordinances or repeal or modification of existing referenda, legislation or ordinances) or approval, modification, or revocation of franchises; or for the purpose of influencing the decisions of public officials, but shall not include such expenditures which are directly related to appearances before regulatory or other governmental bodies in connection with the reporting utility's existing or proposed operations. 426.5 Other deductions. This account shall include other miscellaneous expenses which are nonoperating in nature, but which are properly deductible before determining total income before interest charges. ITEMS 1. Loss relating to investments in securities written-off or written-down. 2. Loss on sale of investments. 30-039 O 78 - 13 |