(b) This account shall be subdivided as follows: 789:1 Revenues from Merchandising, Jobbing, and Contract Work. 789:2 Costs and Expenses of Merchandising, Jobbing, and Contract Work. Account 789:2 shall be further subdivided so as to show the major items of costs and expenses. NOTE: The income from merchandising, jobbing, and contract work shall be reported in this account if a State regulatory body having jurisdiction over the utility requires such income to be reported as an operating expense item; but the amount shall be reported in Account 520, Income from Merchandising, Jobbing, and Contract Work, if such regulatory body requires such income to be reported as other income. In the absence of a requirement by a State regulatory body, the utility may use this account or Account 520 at its option. The practice of the utility must be consistent. ITEMS (1) Advertising in connection with the sale of merchandise. (2) Cost of merchandise sold, and of materials used for jobbing work including transportation, storage, handling. (3) Depreciation. (4) Direct taxes. (5) Discounts and allowances made in settlement of bills for merchandise and jobbing work. (6) General administrative expenses. (7) Insurance. (8) Inventory adjustments, merchandise. (9) Light, heat, and power. (10) Losses from uncollectible accounts. (11) Miscellaneous. (12) Pay and expenses of employees engaged in clerical work and bookkeeping in connection with merchandising. (13) Pay and expenses of all employees engaged in selling, delivery, installation, etc., as well as supervision of such employees. (14) Reconditioning repossessed appliances. (15) Rent of general quarters. (16) Revenue from the sale of merchandise and from jobbing and contract work. *+ (17) Stores expense on merchandise stocks. ADMINISTRATIVE AND GENERAL EXPENSES 101.790BA Salaries of general officers and executives. (a) This account shall include the compensation (salaries, bonuses, and other consideration for services) of officers and executives of the utility, properly chargeable to electric operations and not chargeable directly to a particular electric function. (b) This account may be subdivided in accordance with the utility's administrative organization, such as executive, accounting, treasury, legal, etc.*+ NOTE: This account shall not include directors' fees paid to officers and executives. 101.791BA Other general office salaries. (a) This account shall include the compensation (salaries, bonuses, and other consideration for services) of employees engaged in the general or divisional offices properly chargeable to electric operations and not chargeable directly to a particular electric function. *For statutory citation, see note to § 101.00-1. +For source citation, see note to § 101.701. Page 193 [193] (b) This account may be subdivided in accordance with the utility's administrative organization, such as executive, accounting, treasury, legal, etc.** 101.792B Expenses of general officers and general office employees.*t 101.792:1A Expenses of general officers. (a) This account shall include the expenses incurred for the benefit of the utility in its electric operations by officers whose salaries are included in Account 790 and which are not chargeable directly to a particular electric function. (b) This account may be subdivided in accordance with the utility's administrative organization, such as executive, accounting, treasury, legal, etc. (1) Hotel. ITEMS (2) Meals, including payment therefor on account of overtime work. (3) Membership fees and dues in trade, technical, and professional associations. (4) Traveling expenses. 101.792:2A Expenses of general office employees. (a) This account shall include the expenses incurred for the benefit of the utility in its electric operations by employees whose salaries are included in Account 791 and which are not chargeable directly to a particular electric function. (b) This account may be subdivided in accordance with the utility's administrative organization, such as executive, accounting, treasury, legal, etc. (1) Hotel. ITEMS (2) Meals, including payment therefor on account of overtime work. (3) Membership fees and dues in trade, technical, and professional associations. ** (4) Traveling expenses. 101.793BA General office supplies and expenses. (a) This account shall include the cost of office supplies and office expenses in connection with the general administrative functions of the utility's electric operations. (b) This account may be subdivided in accordance with the utility's administrative organization, such as executive, accounting, treasury, legal, etc. ITEMS (1) Automobile service, including charges through clearing Account 903, Transportation Expenses-Clearing. (2) Books and periodicals for office use. (3) Building service (not including rent). (4) Communication service. (5) Office supplies. (6) Postage. (7) Printing. (8) Stationery. NOTE: Office expenses which are clearly applicable to any group of operating expenses other than administrative and general shall not be included in this account. Page 194 *For statutory citation, see note to § 101.00-1. 101.794BA Management and supervision fees and expenses. (a) This account shall include amounts payable by the electric department to any corporation, firm, or individual for general supervision and management services and expenses. (b) Records supporting this account shall be so kept as to show (1) the basis of each fee, (2) the amount of the fee, and (3) the person to whom the fee is paid or payable.** 101.795BA Special services. This account shall include amounts payable to any corporation, firm, or individual, other than officers and employees of the utility, for special services to the electric department, if the amounts are not includible in Account 794, Management and Supervision Fees and Expenses, or Account 796, Legal Services, or are not chargeable directly to other electric operating expense accounts or clearing or plant accounts. 101.796BA Legal services. This account shall include amounts payable to any corporation, firm, or individual, other than officers and employees of the utility, for legal services and related expenses of the electric department which are not chargeable directly to Account 797, Regulatory Commission Expenses, or to other electric operating expense accounts or to clearing or plant accounts.** NOTE: Pay and expenses of the legal staff of the utility shall not be included herein, but in such other accounts as may be appropriate. 101.797BA Regulatory commission expenses. (a) This account shall include all expenses (except pay of regular employees only incidentally engaged in such work), properly includible in electric operating expenses, incurred by the utility in connection with formal cases before regulatory commissions, or other regulatory bodies, or cases in which such a body is a party, including payments made to a regulatory commission for fees assessed against the accounting utility for pay and expenses of such commission, its officers, agents, and employees, and also including_payments made to the United States for the administration of the Federal Power Act. (b) Amounts of regulatory commission expenses which by approval or direction of the Commission are to be spread over future periods shall be charged to Account 146, Other Deferred Debits, and amortized by charges to this account. (c) The utility shall be prepared to report the cost of each formal case. ITEMS (1) Salaries, fees, retainers, and expenses of counsel, solicitors, attorneys, accountants, engineers, clerks, attendants, witnesses, and others engaged in the *For statutory citation, see note to § 101.00-1. Page 195 prosecution of, or defense against, petitions or complaints presented to regulatory bodies, or in the valuation of property owned or used by the utility in connection with such cases. (2) Expenses: engineering supplies, office expenses, payments to public service or other regulatory commissions, stationery and printing, traveling expenses, and other expenses incurred directly in connection with formal cases before regulatory commissions. NOTE A: Exclude from this account and include in other appropriate operating expense accounts, expenses incurred in the improvement of service, additional inspection, or rendering reports, which are made necessary by the rules and regulations, or orders, of regulatory bodies. NOTE B: Do not include in this account amounts includible in Account 302, Franchises and Consents, Account 140, Unamortized Debt Discount and Expense. or Account 151, Capital Stock Expense. 101.798BA Insurance. This account shall include the cost of insurance to protect the utility against losses and damages to owned or leased property used in its electric operations, except as provided in Note Ĉ hereunder. There shall be included in this account the premiums payable to insurance companies or amounts credited to Account 255, Insurance Reserve, for fire, storm, burglary, boiler, explosion, lightning, and other insurance; and special costs incurred in procuring insurance, such as insurance inspection service, and the pay, traveling, and office expenses of officers, clerks, and other employees of an insurance department.** NOTE A: 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 Account 250, Reserve for Depreciation of Electric Plant, or other appropriate reserve account. NOTE B: The utility shall so keep its records as to show the amount of coverage for each class of insurance carried, the property covered, the applicable premiums, and the distribution of the costs to specific operations or functions. NOTE C: The cost of insurance to protect the utility against losses and damages to the following classes of owned or leased property used in electric operations shall be charged as indicated: 1. Laboratory equipment, to Account 904, Laboratory Expenses-Clearing. 2. Materials and supplies and stores equipment, to Account 902, Stores Expenses-Clearing. 3. Transportation and garage equipment, to Account 903, Transportation Expenses-Clearing. NOTE D: Exclude from this account insurance on officers and employees. (See Account 800: 1.) 101.799BA Injuries and damages. (a) This account shall include losses not covered by insurance on account of injuries or deaths to employees or others, which occur in connection with electric operations, and payments and expenses on account of damages to the property of others or for nonperformance of contractual obligations, whether the loss be occasioned by fire, flood, storm, or other cause. Amounts may be accrued monthly sufficient to meet the probable liability for such losses, concurrent credits being made to Account 256, Injuries and Damages Reserve, in which case losses sustained shall be charged to the reserve. 8 This account shall also include: (1) Pay and expenses of officers and employees regularly engaged in or specifically assigned to work in connection with injuries to employees or others, damages to property of others, etc. Page 196 *For statutory citation, see note to § 101.00-1. etc. (2) Payments to attorneys, investigators, and adjusters, court costs, (3) Insurance premiums for protection against claims from injuries and damages, including public liability, property damages, boiler, casualty, employees' liability, etc., except as provided in Note C. (c) Reimbursements from insurance companies or others for expenses charged hereto on account of injuries and damages, and insurance dividends or refunds, shall be credited to this account.** NOTE A: Payments to or in behalf of employees, including accident and death benefits, salaries, hospital expenses, medical supplies; also salaries, fees, and expenses of surgeons, doctors, nurses, etc., or amounts reserved for such payments, when provided for through a plan for employees' benefits, shall be charged to Account 800, Employees' Welfare Expenses and Pensions. NOTE B: No part of the salaries of officers or employees of the law department shall be included in this account for merely incidental services in connection with injury and damage claims. NOTE C: Losses or insurance premiums paid in connection with transportation and garage equipment shall be charged to Account 903, Transportation Expenses Clearing. NOTE D: Exclude from this account insurance on officers and employees and the cost of injuries and damages chargeable directly to electric plant accounts, clearing accounts, or to other appropriate accounts. 101.800B Employees' welfare expenses and pensions.** 101.800:1A Employees' welfare expenses. This account shall include the expenses incurred in conducting employees' accident prevention, educational and recreational activities, the cost of employees' relief and benefits (other than pensions, and injuries and damages chargeable to Account 799, Injuries and Damages), and the cost of life insurance for employees where the utility is not the beneficiary.*† NOTE: When the utility is the beneficiary of insurance on officers or employees, the cost of such insurance shall be charged to Account 538, Miscellaneous Income Deductions, or, at the option of the utility, the cash surrender value may be included in Account 133, Other Current and Accrued Assets, in which event the excess of cost of the insurance over such cash surrender value shall be charged to Account 538, Miscellaneous Income Deductions. 101.800:2A Pensions. (a) This account shall include pensions paid to retired employees or to their heirs. (b) If the utility has definitely undertaken by contract to pay pensions to employees of its electric department when retired, it shall charge to this account monthly amounts to provide for the payment of such pensions or for the purchase of annuities for that purpose. (c) The utility shall maintain a complete record of the computations of the accruals of its pension liabilities. (d) The utility shall inform the Commission of the details of its pension plan, giving a full statement of the facts thereof, together with the actuarial formula, if any, under which it has created or proposes to create its pension fund, and shall furnish a copy of the declaration of trust or resolution under which the pension plan is established.** 101.801BA Miscellaneous general expenses. This account shall include such items of expense applicable to the electric department as the cost of publishing and distributing annual reports to stockholders; advertising notice of stockholders' meetings; dividend and *For statutory citation, see note to § 101.00-1. Page 197 |