1 Required to be kept by Class D utilities that are not using the optional clearing accounts 902, Stores Expenses, and 903, Transportation Expenses.

*For statutory and source citations, see note to § 104.1.

780. Customers' contracts, orders, meter reading, 780.1 Customers' contracts and orders.

787. Demonstration, advertising, and other sales 787.1 Demonstration.

804. Commissions paid under agency sales contracts. 804. Commissions paid under agency sales con

104.10 Clearing accounts for utilities other than municipal licensees.

Accounts for Class C and Class D Utilities (excluding municipal
licensees)

*†

A and B Accounts for Class A and Class B Utilities (excluding municipal licensees)
Nos.

Accounts for Class O and Class D Municipal Licensees, (see note below)

NOTE: Use of the above accounts is optional with Class D licensees. Class D Licensees that do not use the above accounts are required
to use accounts 2810, Stores Expenses, and 2811, Transportation Expenses, included in Administrative and General Expenses.

**For statutory and source citations, see note to § 104.1.

PART 116-UNITS OF PROPERTY FOR USE IN ACCOUNTING FOR ADDITIONS TO AND RETIREMENTS OF ELECTRIC PLANT

116.0 Prescribing list of units of prop- 116.1 Instructions.

erty.

116.2 List of units of property.

CROSS REFERENCE

Uniform system of accounts prescribed for Class A and Class B public utilities and licensees: See Part 101.

Section 116.0 Prescribing list of units of property. (a) The accompanying list and description of units of property and instructions relating thereto be and the same are hereby prescribed and promulgated, effective February 1, 1937, to be observed by public utilities subject to the jurisdiction of the Commission and by licensees holding licenses issued by the Commission as provided in Electric Plant Instruction 12 B (§ 101.3-12 (b)) of the Uniform System of Accounts prescribed for public utilities and licensees, as revised to December 31, 1936, in accounting for additions to and retirements and replacements of electric plant; Provided, however, That any public utility or licensee may make the same effective as of January 1, 1937, if it so elects.

(b) A copy of this order and the accompanying list and description of the units of property and instructions relating thereto be forthwith served upon each public utility subject to the jurisdiction of the Commission, and each licensee or permittee holding a license or permit from the Commission.*t

*§§ 116.0 to 116.2, inclusive, issued under the authority contained in secs. 3 (13), 4 (b), 301 (a), 304 (a), 309, 49 Stat. 839, 854, 855, 858; 16 U.S.C., Sup., 796 (13), 797 (b), 825 (a), 825c (a), 825h.

†The source of §§ 116.0 to 116.2, inclusive, is Order 45, Federal Power Commission, Jan. 13, 1937.

116.1 Instructions. The units of property listed herein are prescribed and are to be accounted for in accordance with Electric Plant Instruction 12 (§ 101.3-12) of the Uniform System of Accounts for public utilities and licensees, as revised to December 31, 1936. Electric Plant Instruction 12 (§ 101.3-12) provides, in part, as follows:

12. Additions and retirements of electric plant. A. For the purpose of avoiding undue refinement in accounting for additions to and retirements and replacements of electric plant, all property shall be considered as consisting of (1) units of property and (2) minor items of property.

B. Units of property. Each utility may adopt its own list of units for the purpose of this instruction until such time as the Commission shall prescribe a list of units.

(1) When a unit of property is added to electric plant, the cost thereof shall be added to the appropriate electric plant account, except that when units are acquired in the acquisition of any electric plant constituting an operating system, they shall be accounted for as provided in electric plant instruction 4. (2) When a unit of property is retired from electric plant, with or without replacement, the book cost thereof shall be credited to the electric plant account in which it is included, *

C. Minor items of property. (1) When a minor item of property which did not previously exist is added to plant, the cost thereof shall be accounted for in the same manner as for the addition of a unit of property, as set forth

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in paragraph B (1), above, if a substantial addition results, otherwise the charge shall be to the appropriate operating expense account.

(2) When a minor item of property is retired and not replaced, the book cost thereof shall be credited to the electric plant account in which it is included; * * * If, however, the book cost of the minor item retired and not replaced has been or will be accounted for by its inclusion in the unit of property of which it is a part when such unit is retired, no separate credit to the property account is required when such minor item is retired.

(3) When a minor item of depreciable property is replaced independently of the unit of which it is a part, the cost of replacement shall be charged to the maintenance account appropriate for the item, except that if the replacement effects a substantial betterment (the primary aim of which is to make the property affected more useful, more efficient, of greater durability, or of greater capacity), the excess cost of the replacement over the estimated cost at current prices of replacing without betterment shall be charged to the appropriate electric plant account.

The list of units may be expanded by any public utility or licensee without other authorization from this Commission but it may not be condensed; thus, the units listed herein are of maximum size and while subdivision thereof, or the addition of other units, is permitted, the combination or the increase in size of such units is enjoined.

Wherever appropriate, the retirement of any unit of property in the structures or equipment accounts shall include all costs of associated items which pertain solely to that unit, such as the cost of foundations, supports, ladders, runways, enclosures, guards, driving mechanisms, indicating, recording and measuring devices with their mountings, starting, control, regulating, protective and safety devices, switchboards, special lighting conduits and wiring, pipes, ducts, spouts, chutes, hoppers, etc.

If, because of a contract previously entered into, adherence to the list of units contained herein would cause an undue hardship, such as the loss of revenue to a particular utility, a petition for relief, giving therein a full disclosure of the facts and a suggested modification of the list necessary to avoid the hardship during the period of the contract, should be submitted to the Commission.

It is contemplated that the list of units contained herein will be revised and amended from time to time as experience and conditions warrant.**

116.2 List of units of property.

(The article a, an or the, as appropriate, should be read in connection with each unit of property listed herein.)

311. Structures and improvements:

1. Air conditioning or ventilating system.

2. Boiler, furnace, hot-water heater, or automatic stoker.

3. Burner system, gas or oil.

4. Coal or ash conveying system.

5. Elevator complete with operating mechanism.

6. Equipment item, such as a motor, generator, engine, turbine, pump, compressor, ventilating fan, air washer, elevator drum, or similar item of equipment includible in structures, with or without associated wiring, control equipment, etc.

7. Fire escape system.

8. Fire protection system.

9. Foundation, when includible in structures.

10. House-lighting or power board.

11. Lighting fixtures, with or without associated wiring and conduit.

12. Roof, with or without supporting members. (A structure of irregular shape having more than one roof level may have several isolated roofs, each

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**For statutory and source citations, see note to § 116.0.