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OR 263 Revises fuel cost factor tariff schedule ORDINANCE NO. 263 AN ORDINANCE REVISING THE FUEL COST FACTOR TARIFF SCHEDULE OF TEXAS POWER & LIGHT COMPANY AND PROVIDING A PROCEDURE FOR APPROVAL OF PAYMENTS TO AFFILIATES OF TEXAS POWER & LIGHT COMPANY, PROVIDING FOR AN EFFECTIVE DATE FOR SUCH REVISED FUEL COST FACTOR TARIFF SCHEDULE AND SAID PROCEDURE FOR APPROVAL OF PAYMENTS TO AFFILIATES, PROVIDING CONDITIONS UNDER WHICH SAID REVISED FUEL COST FACTOR TARIFF SCHEDULE MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN, AND FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC. WHEREAS, on December 9, 1981, Texas Power & Light Company filed with the Governing Body of this City an Application and Statement of Intent to amend its fuel cost factor tariff schedule applicable to electric service provided by it within the corporate limits of the City and proposed that the revised fuel cost factor tariff schedule become effective on January 13, 1982; and WHEREAS, Texas Power & Light Company, on various occasions amended its proposed effective date postponing same; and WHEREAS, the City has heretofore suspended the operation and proposed effective date in accordance with Section 43(d) of the Public Utility Regulatory Act; and WHEREAS, the City, having considered the attached revised fuel cost factor tariff schedule and procedure for approval of payments to affiliates, finds that same should be approved, being the same fuel cost factor tariff schedule and procedure for approval of payments to affiliates heretofore approved by the Public Utility Commission of Texas in said Commission's Docket No. 4224; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF , TExAs: SECTION 1. That the fuel cost factor tariff schedule of Texas Power & Light Company is hereby revised in accordance with Exhibit "A" attached hereto and incorporated herein for all purposes and said fuel cost factor tariff schedule set forth in said Exhibit "A" is hereby approved as the fuel cost factor tariff schedule under which Texas Power & Light Company is authorized to collect charges from its customers in conjunction with the other rates and tariffs of Texas Power & Light Company applicable within the City for the sale of electric power and energy within the corporate limits of the City until such time as said fuel cost factor tariff schedule may be changed, modified, amended or withdrawn, with the approval of the City Council. SECTION 2. That the procedure for approval of payments to affiliates attached hereto as Exhibit "B" and incorporated herein for all purposes is hereby approved for use and application in connection with the fuel cost factor tariff schedule apprcved in Section i of this Ordinance. SECTION 3. Said fuel cost factor tariff schedule and procedure for approval of payments to affiliates shall be effective for con- sumption from and after final passage of this Ordinance in accordance with the schedule provided in Exhibit "B" hereto. SECTION 4. It is hereby officially found that the meeting at which this Ordinance is passed was open to the public and that due notice of this meeting was posted, all as required by law. PASSED AND APPROVED at a regular meeting of the City Council of ATTEST: , Mayor y r APPROVED AS TO LEGALITY AND FORM: ~lty Attorney III'EM: FUEL ~OST FACTOR Section No. III-F SCHEDULE FCF Sheet No. 2 Effective Date APPLICABLE: Revision Fifth APPLICABLE TO ALL RATE SCHEDULES Page 1 Of 3 The formula for calculation of the Fuel Cost Factor is as follows: Fuel Cost Factor = (F - A) S X L (Rounded to the nearest O.O001C) DEFINITIONS I. F = Fuel costs estimated to be incurred by the Company for the current month and shall be composed of the cost of: (a) fossil and nuclear fuel consumed in the Company's own plants, excluding that supplied by customer, and the Company's share of fossil and nuclear fuel consumed in jointly owned or leased plants, and (b) plus the actual Identifiable fossil and nuclear fuel costs associated with energy purchased, and (c) plus the cost of economy energy purchased, and (d) plus fuel costs* for net interchange received, and (e) less fuel cost* for net interchange delivered, and (f) less the cost of all fossil and nuclear fuel recovered through off system sales to affiliates or unaffiliated companies. *Cumulative interchange shall be recorded in a deferred account. Fuel cost of net interchange energy received shall be calculated at the average cost of fuel associated with amounts of interchange energy previously delivered by the Company and deferred, or at the replacement cost of such energy when amounts of such previous deliveries are depleted. Fuel Cost of net energy delivered shall be calculated at the average cost associated with amounts of interchange energy previously received by the Company and deferred, or at the incremental fuel cost of such energy delivered when amounts of such previous receipts are depleted. I~TEXAS POWER & LIGHT COMPANY EXHIBIT "'A" FUEL COST FACTOR Section No. III-F SCHEDULE FCF Sheet No. 2 Effective Date APPLICABLE: Revision Fifth APrLICABLE TO ALL RATE SCHEDULES Page. 2 Of 3 II. S = All kilowatthours estimated to be sold and recorded in the current month by the Company, excluding off system sales to affiliated and unaffiliated companies and sales associated with fuel as excluded under I(a) above. III. L = Loss Factor to account for differences in line losses corresponding to voltage level of service. Loss Service Factor Voltage Applicable to Rates (Including Riders) 1.017 Secondary RS, RTU, GS, LP20 without Pri. Service Cr., AL, GL, PS, WSP,MS, SLS, SHL. 0,981 Primary LP-20 with Pri. Service Cr.: REA and WP-500 for service not applicable to Transmission Service Credit. 0.95~ Transmission LP-10,000; REA and WP-500 for service applicable to Transmission Service Credit. IV. A = Adjustment applied in the current billing month to correct for the difference between the actual and estimated fuel cost revenue derived from the Fuel Cost Factor of the second preceding billing month calculated by the formula: A = R - (C-D-A2), where: R = Revenue received from the application of the Fuel Cost Factor in the second preceding billing month. ][~TEXAS POWER & LIGHT COMPANY ~ITEM:I i FUEL ~OST FACTOR Se~d6n No. III-F SCHEDULE FCF Sheet No. 2 Effective Date APPLICABLE: Revision Fift|~ APPLICABLE TO ALL RATE SCHEDULES Page " Of C = Recoverable fuel Cost in the second preceding month as described in I. above. D = Under or over recovery of affiliate fuel expense determined in accordance with the approvcd Procedure for Approval of Payments to Affiliates A2 = The adjustment (A) applied to the Fuel Cost Factor in the second preceding billing month. TEXAS POWER & LIGHT COMPANY PROCEDURE FOR APPROVAL OF PAYMENTS TO AFFILIATES Because Texas Electric Service Company, Texas Power & Light Company, and Dallas Power & Light Company ("the Companies") purchase fuel and fuel services from affiliates and affiliated interests and purchase power from each other, and because prices paid to affiliates and affiliated interests may be charged to the Companies' ratepayers only if found to be reasonable in compli- ance with Section 41(c)(1) of the Public Utility Regulatory Act (the "Act"), the fuel cost factor tariff schedules of the Compa- nies may be utilized to recoup those expenses which are incurred by the Companies by reason of payments made to affiliates and affiliated interests only upon the following additional terms and conditions: 1. Insolaf as fuel costs as used in calculation of the fuel cost factor arise by reason of. payments tO affiliates, all estimates of same submitted to the Commission under this Procedure shall include only those items within the definitions set forth in the Chart of Accounts of the affiliates, Texas Utilities Generating Company (TUGCO) and Texas Utilities Fuel Company (TUFCO), being attached hereto as Exhibits A(5) and A(6), respectively. The Chart Of Accounts for Dallas Power & Light Company, Texas Power & Light Company, and Texas Electric Service Company are the Uniform System of Accounts for Class A Utilities as required by the Public Utility Commission's Substantive Rules. That an item is within the definitions set forth in the charts of Account of TUGCO, TUFCO, or the Companies does not establish that the cost of the item is reasonable or should be charged to ratepayers or should be passed through the fuel clause rather than being recouped through base rates. 2. Charges will not be included in the calculation of the EXHIBIT "B" fuel cost factor by reason of power purchased from any affiliated Company except for those types of power specified in Exhibit A(1) attached hereto and priced according to the formulae specified in said Exhibit A(1). 3. Charges will not be included in the calculation of the fuel cost factor by reason of payments to affiliates for any item except to the extent that the amount thereof is found reasonable by the Commission. Such finding of reasonableness shall include specific statements setting forth the cost to the affiliate of each item or class items, and a finding that the price to the utility is no higher than prices charged by the supplying affiliate to its other affiliates or divi- sions for the same item or items, or to unaffiliated persons or corporations. 4. Within sixty (60) days of the entry of this Final Order, the Companies shall file a "Request for Approval of Payments to Affiliates" (hereinafter referred to as the "Initial Request") with the Commission. Such Initial Request shall include: (A) Schedules substantially conforming to the format set forth in the Exhibits A(2), A(3), and A(4) attached hereto, which shall set forth: (1) Art estimate (shown on Exhibit A(2)) of cost on a dollars per MMBtU basis for "fuel related services" (as hereinafter defined) supplied by TUGCO for the calendar quarter or quarters for which approval is sought; and (2) An estimate (shown on Exhibit A(3) and A(4) of cost on a dollars per MMBtU basis for "fuel related services" (separately for fuel gas related services and for fuel oil related services) supplied by TUFCO for the calendar -2- quarter or quarters for which approval is sought. (B) An affidavit, executed by an officer or designated representative of the Companies attesting: (1) That the factual matters set forth in the Initial Request are true and correct and that the estimates set forth therein reflect the Companies' best estimates and are made in good faith; (2) That the estimated prices are reasonable and are estimated to be no higher than the price of TUGCO Or TUFCO for fuel related services to any other affiliated or non-affiliated person or corporation during the period of time stated in the Initial Requests; and (3) That the Initial Request reflects no items which are not within the definitions set forth in the Chart of Accounts of the affiliates. (4) That there have been no changes in the accounting methodologies, the rates and/or practices of depreciation or amoritization or calculation of interest charges, or other methods of computation in any affiliate charges except as specifically noted in the Request. The filing of such affidavit and the aforesaid Sched- ules shall not relieve the Companies' of their burden of proving the reasonableness of payments made to affiliates and charged to the Companies' ratepayers in accordance with Paragraph 3 of this procedure in any hearing relating to this procedure or in any rate cases as described herein. 5. Unless an extension of time is ordered by the Commis- sion or a hearing examiner of the Cor~nission, the Commission shall review the Initial Request and, within -3- ninety ,) days of the receipt of sa. ]~shall conduct a hearing thereon, and shall, on or before Decembe~ 15, 1982, approve by written order such prices as it determines are reasonable and comply with this Procedure. Such order shall: (A) Establish prices per ~,lBtu for "fuel related services" supplied by TUFCO (separately for fuel gas related services and for fuel oil related services) and by TUGCO, separately by generating units as shown on Exhibit A(2), and such prices shall be charged through each Company'3 fuel cost factor tariff schedules in the billing months corresponding with the calendar quarter or quarters for which approval is sought. As used herein, the price for "fuel related services" shall be based upon TUFCO or TUGCO expenses, within the definitions contained in the Charts of Accounts of said affiliates, including those chargeable to each Company on account of TUFCO's Or TUGCO'S acquiring, transporting, causing to be transported, producing causing to be produced, storing, mining, Or handling of fuel consumed in electric power generating plants, or which produce power for the Companies to the extent the Commission finds said expenses to be reasonable, and that said expenses should be charged to customers through the fuel adjustment clause, but shall specifically exclude: (1) Interest payments on the Senior Notes and other debt of TUFCO or TUGCO. Interest on debt to Texas Utilities Company shall be at a rate equal to the daily weighted cost of all outstanding short-term indebtedness of Texas Utilities Company, including any fees incurred in connection -4- ]. with the maintenance of the credit arrangement and, at times when Texas Utilities Company has no short-term indebtedness outstanding, the interest rate will be equal to the rate published daily in the Wall Street Journal for "high grade unsecured notes sold through dealers by major corporations for thirty days;" (2) The cost of natural gas and fuel oil acquired by TUFCO from non-affiliated interests and consumed in the operation of the TUFCO system Of pipelines or in electric power generating plants which produce power for the Companies; and (3) Depreciation and depletion charges on producing wells computed on successful efforts method incurred by TUFCO on behalf of DP&L, TP&L, and TESCO in developing natural gas resources and attributable to such Company's share of production thereform. Unsuccessful exploration and development costs shall not be passed through the fuel adjustment clause. (B) The Commission shall in such Order provide the opportunity for each Company to recover those actual costs incurred for fuel and fuel-related services found reasonable by the Commission up to the date of implementation of the prices established hereunder through their fuel cost factor tariff schedules to the extent that the Commission finds it appropriate to charge these costs through the fuel adjustment clause. 6. Companies may, pending further order of the Commission, charge to and collect from their ratepayers those fuel and fuel related expenses incurred from non-affiliated -5- interests and also those which are described in Subparagraphs (1), (2), and (3) of paragraph 5(A) above. In subsequent rate cases and Other proceedings involving such matters, the companies shall have the burden of proving the amounts so charged and collected are reasonable. All amounts so charged and collected shall be refunded except to the extent that they are found reasonable and in accordance with this procedure. 7. within twenty-five (25) days after the end of each cal]ndar quarter, Companies shall determine whether or not the established prices as charged for such calendar quarter exceeded or were less than the actual prices incurred by TUFCO and/or TUGCO for all such fuel related services for such quarter. If the actual prices of fuel related services rendered during said quarter be less than the price so established by the Commission for such calendar quarter, then the Companies shall report same to the Commission and shall refund to their customers the overrecovery resulting from the difference between such actual · prices and the prices so established, such refund to be applied to the fuel cost factors for the billing months corresponding with the second succeeding calendar quarter following the overrecovery. In the event that the prices established and charged for such calendar quarter be less than the actual price of fuel related services provided to such Companies by TUFCO and/or TUGCO, resulting in an underrecovery of the actual cost incurred for such fuel related services, then in such event, the Companies shall be entitled to recover through their fuel cost factor schedules in each Of the billing months corresponding with the second succeeding calendar quarter the underrecovery resulting from the difference between the actual prices and the prices as established, but only ~ _he extent that the Commission ~ by written order made a preliminary determination that such difference is reasonable, as provided for in Paragraph 8 below. Such preliminary finding of reasonableness shall not be binding on the Commission or any party in Companies' succeeding rate cases or other proceedings. 8. A Company seekiDg recovery of cost8 incurred which exceed the prices established for a previous quarter or the establishment of new prices per MMBtU for a future quarter or quarters for any such fuel related services as defined in Paragraph 5(A) above, shall within twenty-five (~5) days following the close of such previous quarter, file with the Commission e written Request (hereinafter referred to as the "Quarterly Request") for the collection of such underrecovery, if any, and for such new prices, and in Such Quarterly Request shall set forth the amount of the underrecovery, if any, and shall set forth specifically and in detail the basis upon which such Company contends thatsuch additional costs should be so recovered, or new prices for fuel related services as described in Paragraph 5(A) above should be established. The burden of proof shall be upon the Companies to establish that the costs so incurred which exceed the price established for the previous quarter and the new prices which it estimates to be incurred in such future quarter or quarters are reasonable and comply with this Procedure. The Commission shall act upon each such Quarterly Request within sixty {60} days from receipt thereof by final, appealable written order establishing such prices as it determines on a preliminary basis are reasonable and comply with this Procedure. Such preliminary finding of reasonableness shall not be binding on the Commission or any party in subsequent -7- rate cases or proceedings relating to fuel charges and shall not relieve the Company of its burden of proving in subsequent rate cases and proceedings that the amounts so charged and collected are reasonable. 9. Each Company shall in each general, systemwide rate case have the burden of proving that all amounts collected from ratepayers pursuant to paragraphs 5, 6, 7, and 8 of this Procedure since the end of the test year of the Company's preceding general, systemwide rate case are reasonable as defined in paragraph 3 of this Procedure and comply in all respects with this Procedure. The final order of the Commission in each general, systemwide rate case Of each Company shall include a finding of the extent to which amounts collected from ratepayers pursuant to this Procedure are reasonable. Such finding of reasonableness shall include specific statements setting forth the cost to the affiliate of each service, property, right, or thing, or class thereof, charged to ratepayers pursuant to this Procedure and that the price charged to the Company is no higher than the price charged by the supplying affiliate to other affiliates or divisions for the same item or items, or to unaffiliated persons or corporations. All amounts collected in excess of the amounts found in compliance with this procedure and reasonable by the Commission shall be refunded in the next quarter following the entry of the final order making the determination of reasonableness. 10. Nothing in this Procedure shall be construed to deny to the Companies the right to recover all fuel service expenses actually incurred by them to the extent that same are found by the Commission to be reasonable or to permit the Companies to recover more than those actual fuel service expenses which are found reasonable by the Commission. All charges collected pursuant to this procedure are subject to review and refund in subse- quent rate cases and other proceedings. All amounts hereafter charged by affiliates and collected from the Companies' ratepayers through the fuel adjustment clause other than those specifically authorized by this Procedure and found reasonable by the Commission shall be refunded. 11. Notwithstanding anything to the contrary herein, any municipal regulatory authority exercising original jurisdiction over any one or more of the Companies (A) shall have the right to conduct any investigation relating to a Company's Request which such author- ity deemed advisable; and (B) shall have the right to intervene before the Commission, to obtain discovery and to participate in any meeting or hearing held pursuant to the above provisions; and (C) shall have the right to employ, collectively, an outside accounting firm to review the quarterly filings and substantiating data for approval to getermine whether they comply with the Procedure, the cost of which review will be paid by the Companies to the extent that said cost is recover- able by the Companies as a rate case expense. 12. Any customer of the Companies shall have the right to intervene, participate, and obtain discovery concerning any Quarterly Request filed pursuant to this Procedure to the extent provided in this Commission's Rules of Practice and Procedures. -9- EXHIBIT A(1) DEFINITIONS AND FOrmULAE APPLICABLE TO ENERGY TRANSACTIONS BETWEEN Dallas Power & Light, Texas Power & Light, and Texas Electric Service Company I. Energy Sales for Purchaser's Load Requirements Energy sales which are made to supply a portion of the purchaser's load requirements and which are generally initiated by the purchaser shall be priced according to A or B below dependent upon the type of fuel consumed by the seller to make the sale. Further- more, certain additional costs as set forth under C below shall be charged the purchaser by the seller when applicable. A. Charge for Energy Sales - Gas Generation Seller shall bill purchaser for energy on basis of the highest price paid by the seller for gas consumed in its system to make the sale, applied to the additional MMBtu's of gas used on seller's system to generate the additional energy. B. Charge for Energy Sales - Oil Generation Seller shall bill purchaser for energy on the basis of the highest priced oil consumed to make the sale applied to the additional ~,~4Btu's of oil used on seller's system to generate the additional energy. The price of the oil shall be the greater of: (1) the Last In-First Out price of the oil consumed, or the (2) the average stores cost. C. Additional Charges (applicable under A and B above) 1. Start-up costs are incurred and applicable when seller, in connection with the request for energy, must bring on line from standby an additional unit(s). 2. Minimum operations costs are incurred and applicable when seller retains unit(s) on line during periods when capacity has been requested. Charges shall be based on the additional fuel cost (calculated pursuant to A and B above) incurred to maintain the additional unit(s) on line, to the extent that these costs are not recovered by charges under A and B above. Notwithstanding this provision, it is agreed that the purchaser will maintain a minimum purchase schedule equal to the minimum load of the additional unit(s) being maintained on line at the request of the purchaser. 3. Other costs are identifiable operating expenses incurred in connection with the request for energy such as supplies and supplemental and overtime labor. These costs shall be billed by the seller and identified separately. 4. Transmission losses that occur on the seller's system as a direct result of the energy sales shall either be priced in accordance with A or B above or be returned in-kind by the purchaser. The seller must estimate the transmission losses and notify the purchaser prior to the energy sales. II. Energy Transactions for Economy Energy transactions which are made to reduce the fuel expense of the companies as a result of the seller having surplus energy available that can be produced and sold at a price below the purchaser's displaced production cost and above the seller's incremental production cost shall be classified and priced according to the following provisions, provided however that no such energy transactions shall be priced higher than the purchaser's displaced production cost or lower than the seller's incremental production cost: A. Lignite Energy Sales between Companies When a company cannot take its ownership share of lignite generation being produced, the company shall arrange a sale with one or both of the other companies. The energy shall be recorded in a special sale or purchase account for "lignite energy sales" and will be priced and paid for at the rate for the month which is quoted to third parties for "Off-Peak Interruptible Economy Energy" less 3.5 mills per kilowatt-hour. Available lignite energy will be offered by the selling company to the other companies prior to the offer to third parties. B. Lignite Energy Transfer In those cases when a company cannot take its ownership share of lignite generation being produced, and neither of the other two companies can schedule this energy into its system, and no sale to third parties can be scheduled, then lignite generation must be reduced. To minimize the actual amount of lignite generation reduction, as well as provide necessary relief to the company with excess generation, lignite 'generation shall be reduced only to the extent necessary to relieve the company with excess generation and a transfer shall be made by such company to each of the other two companies in order that each of the other companies may maintain its share of energy from the lignite unit prior to the reduction. This energy shall be recorded in a special sale or purchase account for "lignite transfer" and shall be priced and paid for at the current month's weighted average fuel cost (per kwh net generated) of the lignite plant (or unit) where the generation was reduced. C. Other Economy Energy Transactions (Gas or Oil Generation) Special energy transactions involving gas or oil generation may occur from time to time in order to minimize a company's total fuel cost or improve the overall fuel supply and/or operations. Such transactions shall be priced so that the price of the energy purchased shall be less than the decremental cost of the purchasing company and more than the incremental cost of the selling company. ~ection I I I-D RATE ~ULES No. 1 ADJUSTNEN. ,~ CHN~GES Revision No. Or I gt na I SCHEDULE FC Effective See ADD I I catlon Title FUEL COST Page _ 10 of 12 EXHIBIT A(2) The estimated cost of TUGCO-fuel related services (I ncludlng i grition and f lame stablllzation fuels) applicable during the Company's billing periods most closely corresponding to the Calendar Quarter beginning , 19 , Is as follows: Big Brown MOnticello MOnticello Martin Lake (Units 1 (Units 1 (Unit 3) (Units 1, & 2) & 2) 2, & 3) Estimated Cost For the Quarter beginning I, 19 1-. Estimated cost ($) (See Note A) 2. Estlmated ~Btu to be reCelved 3- Estimated cost for which approval sought, line 1 divided by llne 2, ($/MMBtu) Over/Under Recovery of Actual Expense for the Quarter beginning 1, 19 4. Prevlously approved estimated cost ($/MMStu) 5. ACtual MMStu received 6. Line 4, times Line 5, ($) 7. Cost Incurred by TUGCO ($) (See Note A) 8. Over(Under) recovery for which approval Is sought, line 6 minus line 7 ($) NOTE A: Cost excludes those Items described In paragraphs 5(A)(1), 5(A)(2), and 5(A)(3) In the Procedure for Approval of Payments to Affiliates. Exhibit A(2) Section I I I-D RATE DULES . No. ADJUST,vEh. ,~D CHARGES Revision No, Or { gl na i SCHEDULE FC Effective See ADD I I Cat Icn Title FUEL COST Page 11 of 12 EXHIBIT A(3) The estimated cost of TUFCO-gaS related services appll cable during the Company's billing period most closely corresponding to the calendar Quarter beginning 1, 19, as fottows: Fuel Gas and Fuel Gas Services Estimated Cost For the Quarter beginning 1, 19 h Estimated cost (S) (See Note B) 2. Cost of single purpose lateral lines, 3- Line 1 plus line 2, ($) 4- Estimated MMBtu to be received 5. Estimated cost for which approval Is sought, ($/MMBtu) Over/Under Recovery of Actual Expense for the Quarter beginning I, 19 6- Previously epproved estimated cost ($/MMBtu) 7. Actual MMBtu received 8. Line 6 times llne 7, ($) 9. Cost Incurred by TUFCO on behalf of the respective Company ($} (See Notes A & B) 10. Over(Under)recovery for which approval Is sought, line 8 minus line 9, ($) NOte A: In order to close its books, TUFCO will record estimated cost of purchased fuel gas and volumes at the end of each month and shall adjust same to actual costs when actual data are known. Note B: Cost excludes those Items described In paragraphs 5(A)(1), 5(A)(2), and 5(A)(3) In the Procedure for Approval of Payments to Afflllates. Exhibit A(.3) S~ction I ] I-D RATE ,EDULES b.,,let No. I ADJUST,v~ENT AND CHARGES Ray ision No, Or 191 na I SCHEDULE FC Effective See ADD I I cat I on Tide FUEL COST Page 12 of 12 EXHIBIT A(4) The estimated cost of TUFCO-oll related services app II cable during the Company~s billing period most closely corresponding to the calendar Quarter beglnnlng , 1, 19___, Is as follows: Fuel all and Fuel OII Services Distillate Heslaual Estimated Cost For the Quarter beginning 1, 19 1. Estimated cost ($/MMBtu) (See Note A) 2- Estimated cost to deliver oil to Company's plants, ($/M~Btu) 3, Estimated cost for which approval Is sought, line 1 plus line 2, ($/MMBtu) OverbUrden Recovery of ACtual Expense For the 0uarter beginning 1, lg 4. Previously approved estimated cost ($/MNBtU) 5. ACtual MMBtu received 6. Line 4 times line 5, ($) Cost Incurred by TUFCO on behalf of the respective Coneany, ($) (See Note A) Inventory adjustment amount for whl ch approval Is sought, line 7 minus line 6, ($) Note A: COst excludes those Items described in paragraphs 5(A)(I], 5(A)(2), and 5(A)(3) in the Procedure for Approval of Payments to Affiliates. Exhibi, t A(4) TEXAS UTILITIES GENERATING COMPANY LIGNITE PRODUCTION EXPENSE ACCOUNTS Account Account Title 151.000 FUEL PRODUCTION EXPENSE .10 Operation Expense .11 Stripping .12 Loading .13 Drainage .14 Hauling - Trucks .15 Hauling - Rail .17 Reclamation .18 Roads .20 Maintenance Expense .21 Stripping .22 Loading .23 Drainage .24 Hauling - Trucks .25 Hauling - Rail .27 Land, Building & Service Facilities 30 Other Charges 31 Royalties 32 Damages & Relocations 33 Ad Valorem Taxes 34 Interest 35 Depreciation 36 Delay Rentals .37 Amortization of Lignite Resources and Fee Lignite .38 Reclamation Fee ,39 Federal Income Tax Credits 40 Supervision & Engineering 41 Supervision 42 Applications & Surveying 43 Outside Services Employed 44 Training 45 Office Supplies & Expense .46 Environmental Research .47 Safety Supplies & Expense ,48 Miscellaneous Expense .49 General Office Expense - Transferred Exhibit A(5) - Page 1 TEXAS UTILITIES GENERATING COMIcANY LIGNITE PRODUCTION EXPENSE ACCOUNTS ~ccount Account Title 151.000 FUEL PRODUCTION EXPENSE (continued) .50 Clearing Accounts · 51 Shop Expense .52 Diesel Purchased .53 Automotive Equipment .54 Dozers .55 Patrols .56 Scrapers .57 Front End Loaders .58 Water Trucks .59 Clearing Accounts - C__R .60 Fuel Cost Transferred .61 Lignite Production Cost .90 Fuel Stock on Hand .91 Fuel Oil - No. 2 .92 Lignite Inventory Exhibit A (5) - Page 2 ,EXAS UTILITIES GENERATING C~ ~ANY POWER PRODUCTION EXPENSES Detail Account Account Title 501.000 FUEL .10 Lignite .11 Production Cost - Transferred This account shall include the current months applicable lignite production cost. .12 Fuel Handling Expense This account shall include the cost of operating labor and operating expense incBrre._ in the handling of lignite from the point of the receiving hopper at the generating station to the Boiler. Also includes clearing from lab expense for all routine fuel analyses. .14 Ash Disposal Expense This account shall include the expenses incurred in the disposal of ash and shall be credited with the proceeds from the sale of residuals. .15 Fuel Treatment Expense This account shall include the expense incurred in treatment of fuel with chemicals or addltives. .19 Rail Transportation Con=non Carrier This account shall include the monthly allocation of expenditures made to co~non carriers for the rail transportation of lignite. .20 Other Fuels .2I Gas This account shall include the cost of gas consumed in the generating station. .22 011 - No. 2 This account shall include the cost of oil consumed in the generating Station. Exhibit A(5) - Page 3 TEXAS UTILITIES GENERATING COMPANY LIGNITE pRODUCTION EXPENSE ACCOUNTS Detail ~ccount Account Title OPERATION 11 Stripping Labor - Operation of draglines and miscellaneous labor incurred in the stripping operation. Expense - Supplies consumed in operation of draglines, including lubricants and recorder paper. Cost of power consumed by draglines. Includes costs incurred clearing land ahead of stripping operations. Clearing Expense - Includes monthly proration of costs of automotive equipment, dozers, patrols, scrapers and front-end loaders. 12 Loading Labor - Operation of shovels and miscellaneous labor incurred in the loading operation. Expense - Supplies consumed in Qperation of shovels, including lubricants. Cost of power consumed. Clearing Expense - Includes monthly proration of costs of automotive equipment, dozers, patrols, scrapers and front-end loaders. 13 Drainage Labor - Operation of pumps and miscellaneous labor incurred in the drainage operation, including pit pumping, retention ponds and related drainage ditches. Expense - Supplies consumed in the operation of pumping equipment which includes lubricants, gasoline, hose, lines and fittings. Cost of power consumed. Clearing Expense - Includes monthly proration of costs of automotive equipment, dozers, patrols, scrapers and front-end loaders. Exhibit A(5) - Page 4 TEXAS UTILITIES GENERATING COMPANY LIGNITE PRODUCTION EXPENSE ACCOUNTS Detail Account Account Title 14 Hauling - Trucks Thi~ account shall include the cost of hauling fuel by truck from the pit to the receiving hopper or to train loading point. Labor - Operation of haulers, train loading stations, and miscellaneous labor incurred in the hauling operation. Expense - Supplies consumed in the operation of haulers and loading stations, including lubricants. Clearing Expense - Diesel consumed. 15 Hauling - Rail This account shall include the cost of hauling fuel by rail. Labor - Operation of trains and miscellaneous labor incurred in rail hauling operation. Expense - Supplies consumed in operation of trains, including lubricants and power consumed. Contracts - Includes transportation cost by common carrier. Clearing Expense - Diesel consumed. 17 Reclamation Labor - Labor incurred in reclamation. Expense - Costs incurred in leveling, planting, fertilizing and fencing. This account shall be credited with revenues received in connection with =he sale of products through the reclamation and restoration operation Clearing Expense - Includes monthly proration of costs of automotive equipment, dozers, patrols, scrapers and front- end loaders. 18 Roads Expenses incurred in establishing and maintaining service roads, pit roads and haul roads. Labor - Miscellaneous labor. TEXAS UTILITIES GENERATING COMPA~T LIGNITE PRODUCTION EXPENSE ACCOD~TS Detail Account Account Title 18 Roads (continued) Expense - Materials and supplies consumed in maintaining roads, includes gravel, rock and surfacing materials. Clearing Expense - Includes monthly proration of costs of automotive equipment, dozers, patrols, scrapers, water trucks and front-end loaders. MAINTENANCE 21 Stripping Expense - Maintenance of draglines, including replacement of trail cable, wire rope and dragline buckets. Clearing Expense - Includes monthly proration of shop expense, 22 Loading Expense - Maintenance of shovels, including replacement of trail cable and wire rope. Clearing Expense - Includes monthly proration of shop expense. 23 Drainage Expense - Maintenance of pumping equipment. Clearing Expense - Includes monthly proration of shop expense. 24 Hauling - Trucks Expense - Maintenance of trucks, including parts for loading station. Clearing EXpense - Includes monthly proration of shop expense. 25 Hauling - Rail Expense - Maintenance of trains, including ligni=e cars, locomotive, rails, roadbed, bridges, signal system and catchary system. Exhibit A(5) - Paqe 6 TEXAS UTILITIES GENERATING COMPANY LIGNITE PRODUCTION EXPENSE ACCOUNTS Detail Account Account Title 25 Hauling - Rail (continued) Clearing Expense - Includes monthly proration of shop expense. 27 Land, Buildings & Service Facilities Expense - Maintenance of land, buildings and service facilities, including substations, power lines to point of delivery to trail cable, communication equipment, office buildings, warehouses, shops and service facilities. Clearing Expense - Includes monthly proration of shop expense. OTHER CHARGES 31 Royalties Includes royalty expense for all coal and lignite loaded during the period in accordance with the provisions as set forth in the lease. 32 Damages & Relocations Includes expense incurred for damages to surface of leased lands, payments for improvements, and costs incurred in removing or relocating property of others. Ad Valorem Taxes Includes the amount of ad valorem taxes assessed by county, municipal or other local governmental authorities. 34 Interest Includes the interest transferred to operations on debt to associated companies and other long-term debt. 35 Depreciation Includes the depreciation expense for all classes of depreciable plant in service except such depreciation expense as is chargeable to clearing accounts. 36 Delay Rentals Includes delay rental expense and crop sales. TEXAS UTILITIES GENERATING COMPA/~Y LIGNITE PRODUCTION EXPENSE ACCOUNTS Detail ~ccount Account Title 37 Amortization of Lignite Resources Includes amortization of lignite resources based on lignite loaded during the period and amortization of fee lignite based on acre foot production du~'ng the period. 38 Reclamation Fee Includes fees imposed under the Surface M/ning Control and Reclamation Act of 1977. 39 Federal Income Tax Credits Includes allocated portion of tax credit relating to Federal Income Taxes. SUPERVISION & ENGINEERING 41 Supervision This account shall include the cost of labor and expenses incurred in the general supervision and direction of Fuel Production. Includes.Superintendents, Engineers, Foremen and Assistant Foremen. 42 Applications & Surveying This account shall include the cost of labor and expense incurred in surveying, core drilling, mapping, drafting and field engineering. Includes application Engineer and assigned Technicians. 43 Outside Services Employed This account shall include the fees and expenses for general services which are not applicable to a particular operating function or to other accounts. Includes administrative and general expense of associated companies, legal expenses, engineering consultants and management consultants. 44 Training This account shall include the fees and expense incurred in attending training courses and conferences. Exhibit A ( 5 ) - Page 8 TEXAS UTILITIES GENERATING COM?~Tf LIGNITE PRODUCTION EXPENSE ACCOUIqTS Detail Account Account Title 44 Training (continued) Clearing Expense - Includes monthly proration of training center expenses. 45 Office Supplies & Expense This account shall include office supplies, salaries and expense incurred in connection with Fuel Production. Includes Accountants, Buyers, general clerical and steno- graphic salaries, telephones, postage, building services, janitorial services and office supplies. 46 Environmental Research This account shall include the costs of environmental research, including salaries and operating expense. 47 Safety Supplies & Expense This account shall include the cost of first-aid supplies, safety shoe expense, safety glasses, hard hats, flashlights, fire extinguishers and employee personal items. 48 Miscellaneous Expense This account shall include the expenses incurred in connection with Fuel Production not provided elsewhere. Includes property insurance, employee benefits, rents, employee meals, traveling expense, and incidental expenses. 49 General Office Expense - Transferred This account shall include the general office expense allocated to Lignite Production Expenses. CLEARING ACCOUNTS 51 Shop Expense This account shall include all maintenance, shop and store- room labor incurred during the month. All shop tools, sup- plies and expense of shop and storeroom shall be charged to this account. Includes freight or transportation charges applicable to Account 154 - Plant Materials and Operating Supplies, welding rod, fasteners, small tools, gasketing and packing, and low value maintenance supplies and parts consumed in general plant maintenance. Also includes clearing from lab expense for oil analyses. Exhibit A(5) - Paqe 9 TEXAS UTILITIES GENERATING COMI~A~\~f LIGNITE PRODUCTION EXPENSE ACCOL~TS Detail Account Account Title 51 Shop Expense (continued) This account shall be cleared monthly by proration to expense account classifications on basis of maintenance man-hours worked on various accounts and crediting clearing accounts - CR. 52 Diesel Purchased This account shall include cost of diesel purchased during the month. This account shall be cleared monthly by pro- ration to expense account classification on basis of con- sumption and crediting clearing accounts - CR. 53 Automotive Equipment This account shall include cost of supplies, expense, fuel and maintenance incurred on automobiles, pickups and trucks. This account shall be cleared monthly by proration to expense account classification on assigned basis with credit to clearing accounts ~ CR. 54 Dozers This account shall include cost of labor and expense for operation of dozers, This account shall be cleared monthly by proration to expense account classification based on where the operations equipment was assigned during period and crediting clearing accounts ~ CR. 55 Patrols This account shall include cost of labor and expense for operation of patrols. This account shall be cleared monthly by proration to expense account classification based on where the operations equipment was assigned during period and crediting clearing accounts - CR. 56 Scrapers This account shall include cost of labor and expense for operation of scrapers. This account shall be cleared monthly by proration to expense account classification based on where the operations equipment was assigned during period and crediting clearing accounts - CR. TEXAS UTILITIES GENEP~TING CO~5~ANY LIGNITE PRODUCTION EXPENSE ACCOUNTS Detail Account Account Title 57 Front-End Loaders This account shall include cost of labor and expense for operation of front-end loaders. This account shall be cleared monthly by proration to expense account classifi- cation based on where the operations equipment was assigned during period and crediting clearing accounts - CR. 58 Water Trucks This account shall include cost of labor and expense for operation of water trucks. This account shall be cleared monthly by proration to expense account classification based on where the operations equipment was assigned during period and crediting clearing accounts - CR. 59 Clearing Accounts - CR FUEL COST TRANSFERRED 61 Lignite Production Cost This account shall be credited with current months lignite production expense and a debit or credit will apply to amortization of deferred charges with balance being charged to Account 501 - Fuel Expense. FUEL STOCK ON HAND 91 Fuel Oil - No. 2 This account shall include the book cost of fuel on hand. 92 Lignite Inventory This account shall include the book cost of the lignite inventory on hand. Exhibit A(5) - Page 11 T UTILITIES FUEL COMPANY Account Account Title NATURAL GAS PRODUCTION EXPENSES OPERATION 752,000 WELL EXPENSES .100 Gas Wells 754,000 FIELD COMPRESSOR STATION EXPENSES 755.000 FIELD COMPRESSOR STATION FUEL AND POWER 756.000 FIELD MEASURING & REGULATING STATION EXPENSES 757.000 PURIFICATION. EXPENSES 758,000 GAS WELL ROYALTIES 759,000 OTHER EXPENSES ,100 Gas ,110 Other ,120 Abandonment of Lines MAINTENANCE 764,0OO MAINTENANCE OF FIELD LINES 765.000 MAINTENANCE OF FIELD COMPRESSOR STATION EQUIPM22~T 767.000 MAINTENANCE OF PURIFICATION EQUIPMENT Ewh~bit A(6) - Pace 1 A~count Account Title PRODUCTS EXTRACTION LXPENSES OPERATION 776.000 OPERATION SUPPLIES AND EXPENSES ?78.000 ROYALTIES ON PRODUCTS EXTKACTED 783.000 RENTS MAINTENANCE 786.000 MAINTENANCE OF EXTRACTION EQUIPMENT GAS SUPPLY FIPENSES OPERATION 800. 000 FUEL PURCHASES .100 Natural Gas .110 Current Month Estimate .120 Reversal Prior Month Estimate .130 Prior Month Actual Payment .200 No. 2 Fuel 0il .210 Fuel Oil .220 Commercial Transportation .230 . TUFCo Truck Expense .290 ' Miscellaneous .500 No. 5 Fuel Oil .510 Fuel Oil · 590 Miscellaneous · 600 Adj us tment · 610 Gas .620 No. 2 Fuel Oil .630 No. 5 Fuel Oil Exhibit A(6) - Page 2 Account Account Title 806,000 EXCHANGE GAS 807,000 PURCHASED GAS EXPENSES 808,000 GAS WITHDRAWN FROM STORAGE - DEBIT 809,000 GAS DELIVERED TO STORAGE - CREDIT 810,000 GAS FOR CObeRESSOR STATION FUEL - CREDIT 813,000 OTHER GAS SUPPLY EXPENSES ,100 Salaries and Expenses · 110 Salaries ,130 Expenses of Other Employees · 190 Miscellaneous Expenses UNDERGROUND GAS STORAGE EXPENSES OPERATION 814,000 OPERATION SUPERVISION &N~D ENGINEERING 816,000 WELLS EXPENSES 817,000 LINES EXPENSES 818,000 COMPRESSOR STATION EXPENSES 819,000 CO)fPKESSOR STATION FUEL ~ POWER 820,000 f~ASURING AND REGULATING STATION EXPENSES 821,000 PURIFICATION EXPENSES 825,000 STORAGE WELL ROYALTIES 826 i 000 RENTS MAINTENANCE 833,000 . MAINTENANCE OF LINES 834,000 MAINTENANCE 0F CO)~RESSOR STATION EQUIP)TENT 835,000 MAINTENANCE OF MEASURING AND REGULATING STATION EQUIPMENT Exhibit A(6) - Page 3 Account Account Title 836.000 }~INTENANCE OF PURIFICATION EQUIPMENT TRANSMISSION EXPENSES OPERATION 850.000 OPERATION SUPERVISION AND ENGINEERING 851.000 SYSTLM CONTROL ~3D LOAD DISPATCHING 852.000 COMMUNICATION SYSTEM EXPENSES 853.000 COMPRESSOR STATION LABOR ~ EXPENSES 854.000 GAS FOR COMPRESSOR STATION FUEL 856.000 MAINS EXPENSES 857.000 MEXSURING AND REGULATING STATION EXPENSES 858.000 TRANSMISSION AND C0~RESSION OF GAS BY OTHER 860.000 RENTS MAINTENANCE 861.000 MAINTENANCE SUPERVISION AND ENGINEERING 862.000 MAINTENANCE OF STRUCTURES 863.000 MALNTENANCE OF }!~INS .100 Righ=-of WayLMainmenance .200 Corrosion Control .300 Pipe Maintenance 864.000 ~,~INTENANCE OF COMPRESSOR STATION EQUIPMENT 865.000 MALNTENANCE OF MEASURING AND REGULATING STATION 866.000 MAINTENANCE OF COM2~I~qICATION EQUIPMENT 867.000 MAINTENA~NCE OF OTHER EQUIPKENT Exhibit A(6) - Page 4 A~count. Account Title ADMINISTRATIVE AND GENERAL EXPENSES OPERATION 920,000 ADMINISTRATIVE AND GENERAL SALARIES 921.000 OFFICE SUPPLIES AND EX2ENSES .100 Expenses of Officers .110 Paid to Officers - Executive ViceSresident .120 Paid to Officers - Senior Vice President .130 Paid to Others for Officers - Executive Vice President .140 Paid to Others for Officers - Senior Vice President .200 Expenses of Other Employees .210 Paid to Employees .220 Paid to Others for Employees. .300 Vehicle Use Expense-Credit .400 Office Supplies and Expenses 923.000 OUTSIDE SERVICES ~MPLOYED .100 Legal Services ,200 Engineering Services .300 Accounting and Tax Services .400 Personnel Services ,900 Other Outside Services 924. 000 PROPERTY INSUR,tNCE 925.000 INJURIES ~ND DAmaGES 926,000 E.MPLOYEES PENSIONS AND BENEFITS .100 Pension Costs .200 Group Life Insurance .300 Group Hospitalization .400 Thrift Plan Contributions .500 Accidental Death or Dismemberment .900 Other Employee Benefits 930.000 MISCELLANEOUS GENERAL EXPENSE 931,000 RENTS .100 Offices .200 Transportation and Parking .300 Office Equipment .900 Other Account Account Title MAINTENANCE 932. 000 MAINTENA~NCE OF GENE~RAL PLANT Exhibit A(6) - Page 6 ---, ,-~ Account Account Title OTHER ACCOUNTS 403. 000 DEPRECIATION EXPENSE 404. 100 DEPLETION OF PRODUCING GAS LAND AND LAND RIGHTS 408.000 TAXES 0THER THAN INCOME TAXES · 101 FICA · 102 Federal Unemployment Tax · 103 Federal Highway Us Tax .211 State Gross Receipts Tax · 212 State Ad Valorem Tax · 213 State Franchise Tax · 214 State Motor Vehicle Tax · 215 State Unemployment Tax .217 State Taxes - Other · 222 City Ad Valorem Tax · 232 Count7 Ad Valorem Tax .242 School Ad Valorem Tax .252 Other - Ad Valorem Tax 409. 100 OPERATING INCOME TAXES 410.100 DEFERRED INCOME TAXES - OPERATING INCOME 412.000 INVESTMENT TAX CREDITS .100 ITC Deferred to Future Periods · 200 ITC Restored to Operating Income 419. 200 INTEREST INCOME 427.000 INTEREST EXPENSE - LONG-TERM DEBT 428. 000 AMORTIZATION OF DEBT DISCOUNT AND EXPENSE 430.000 INTEREST ON DEBT TO ASSOCIATED C0~XPANIES 431.000 OTHER INTEREST EXPENSE DETAIL OF OPERATION & .Y~INTENA~ EXPENSES Account Account Title NATURAL GAS PRODUCTION EXPENSES OPERATION 752.000 W'ELL EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating producing gas wells. Labor: 1. Supervising. 2. Testing, bailing, swabbing, blowing and gauging producing gas wells. 3. Cleaning off old well locations. 4, Painting sips, etc. 5. Minor upkeep of well roads and fences, etc. 6, Turning well~ off and on. 7. Pumping wells. Materials and Expenses: 8. Gas, gasoline, and oil used in pumping, bailing, heating, and swabbing. 9. Lumber, nails, and other materials used for upkeep of fences, making signs, etc. 10. Materials for upkeep of well roads, etc. 11. Well swabs. 12. Employees' transportation and travel expenses. 13. Freight, express, parcel post, trucking and other trans- portation. 14. Transportation: company and rented vehicles. 754.000 FIELD COMPRESSOR STATION E~ENSES This account shall include the cos= of labor, materials used, except fuel, and expenses incurred in operating field com- pressor sta~ions. Labor: 1. Supervising. 2. Operating and checking engines, equipment valves, n~chinery, gauges, and other ins=ruments, including cleaning, wiping, polishing, and lubricating. 3. Operating boilers and boiler accessory equipment and recording fuel used. Exhibit A(6) - Page 8 Account Account Tit~ 754.000 FIELD COMI°RESSOR STATION EXPENSES (continued) 4. Repacking valves and replacing gauge glasses, etc. 5. Recording pressures, replacing char~, keeping logs and preparing reports of station operations. 6. Inspecting and testing equipment when not specifically to determine necessity for repairs or replacement of parts. 7. Pumping drips at the station. 8. Taking dew point readings. 9. Testing ~ater. 10. Cleaning structures, cutting grass and weeds, and minor grading around station. 11. Cleaning and repairing hand tools used in operaLions. 12. Driving trucks. 13. Watching during shut downs. 14. Clerical work at station. Materials and Expenses: 13. Scrubber oil. 16. Lubricants, wiping rags, and waste. 17. Charts and printed forms, etc. 18. Gauge glasses, 19. Chemicals to test waters. 20. Water tests and treatment by other than emplpyees. 21. Janitor and washroom supplies, first aid supplies, land- scaping supplies, etc. 22. Employees' transportation and travel expenses. 23. Freight, express, parcel post, trucking, and other trans- portation. 24. Utility services: light, water, telephone. 755.000 FIk'LD COM?RESSOR STATION FUEL AND POWER This account shall include the cost of gas, oil, or other fuel, or electricity, used for the operation of field compressor stations. 756.000 FIF~.B MEASFFJ2~G A~) REGUIATING STATION EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating field measuring and regu- lating stations. Labor: 1. Supervising. 2. Recording pressures and changing charts, reading meters, etc. Exhibit A(6 ) - Page 9 Account 'Account T 756.000 EIELD MEASURING A~ND REGULATING STATION EXPENSES (continued) 3. Estimating lost meter registrations, etc., except gas purchases and sales. 4. Calculating gas volumes from meter charts, except for gas purchases and sales. 5. Adjusting and calibrating measuring equipment, changing meters, orifice plates, gauges, clocks, etc., not in con- nection with maintenance or construction. 6. Testing gas samples, inspecting and testing gas sample tanks and other meter engineer's equipment, determining specific gravity and Btu content of gas. 7. Inspecting and testing equipment not specifically to determine necessity for repairs including pulsation tests. 8. Cleaning and lubricating equipment. 9. Keeping log and other operating records, preparing reports of operations, etc. 10. Attending boilers and operating other accessory equipment. 11. Installing and removing district gauges for pressure survey. 12. Thawing freeze in gauge pipes. 13. Inspecting and pumping drips, dewatering manholes and pits, inspecting sumps, cleaning pits, etc., blowing meter drips. 14. Moving equipment, minor structures, etc., not in connection with construction, retirement, or maintenance work. Materials and Expenses: 15. Charts and printed forms, stationery and office supplies, etc. 16. Lubricants, wiping rags, waste. 17. Employees' transportation and travel expenses. 18. Freight, express, parcel post, trucking and other trans- portation. 19. Utility services: light, water, telephone. 757.000 Pb'RIFICATION EXPENSES This account shall include the cost of labor, materials used a~d expenses incurred in operating equipment used for puri- fying, dehydrating, and conditioning of natural gas. Labor: 1. Superv~sing. 2. Changing charts on fuel meters. 3. Emptying, cleaning and refilling purifier boxes. 4. Oiling dip sheets of purifier covers. 5. Removing spent oxide to refuse piles. 6. Revivifying oxide. Exhibit A(6) - Page 10 Account Account 757.000 PURIFICATION EXTENSES (continued) 7. Taking readings of inlet and outlet pressures and temper- ature. 8. Unloading and storing glycol. 9. Watching station and equipment. 10. Cutting grass and weeds, and minor grading around equipment and stations. 11. Hauling operating employees, materials, supplies and tools, etc. 12. Inspecting and testing equipment, not specifically. to determine necessity for repairs ~r replacement of parts. 13. Lubricating equipment, valves, etc. 14. Operating and checking equipment, valves, instruments, etc. Materials and EXpenses: 15. Liquid purifying supplies. 16. Iron oxide. 17. Odorizing ~aterials. 18. Charts, printed forms, etc. 19. EmploVees' transportation and travel expenses. 20. Freight, express, parcel post, trucking, and other t=ansportation. 21. Gas used in operations. 22. Janitor, washroom, and landscaping supplies:' 23. Lubricants, wiping rags, waste, etc. 24. Utility services: light, water, telephone. 758.000 GAS ~rELL ROYALTIES This account shall include royalties paid for natural gas proauced b7 the utilit7 from wells on land owned by others. 759.000 OTHER EXPENSES This account shall include the cost of labor, materials used and expenses incurred in producing and gathering natural gas and notincludible in any of the foregoing accounts. Labor: 1. Moving cleaning tools between locations. 2. Operating communications system. Materials and Expenses: 3. Miscellaneous small tools, etc. 4. Research and development expenses, Exhibit A(6) - Page 1! AcCount Account Title I'~INTEN~NCE 764.000 }iAINTENANCE OF FIELD LINES This account shall include the cost of labor, materials used and expenses incurred in maintenance of field lines. 1. Electrolysis and leak inspections (not routine). 2. Installing and removing temporary lines, when necessitated b7 maintenance. 3. TAmping and watching while making r~pairs. 4. Lowering and changing location of portion of lines, when the same pipe is used. 5. Protecting lines from fires, floods, land slides, etc. 6. Rocking creek crossings. 765.000 MAINTINA~CE OF FIELD CO~-~RESSOR STATION EQUIPMENT This account shall include the cost of labor, materials used and expenses inQurred in maintenance of field compressor sta- tion equipment. 767.000 }~AI~'rENANCE OF PURIFICATION EQUIPMENT This account shall include the cost of labor, materials used and expenses incurred in the maintenance of purification equipment. PRODUCTS EXTP~CTION EXPE~ISES OPL!ATION 776.000 OPERATION SUPPLIES AND EXPENSES This account shall include supplies used and expenses incurred in the operation of facilities for recovering salable products from natural gas and blending and refining such products. 1. Employee transportation and travel expenses. 2. Freight, express, parcel post, trucking and other trans- portation. 3. Utility services: light, water, telephone. 4. Charts, gas measurement, etc. .' 5. Janitor~ washroom and landscaping supplies. 6. Lubricants; oil and grease, wiping rags and waste, etc. 7. Testing equipment, hand ~ools, etc., of a portable nature · and relatively minor cost or of short life. Exhibit A(6) - Page 12 Account Account Title 778.000 ROYALTIES ON PRODUCTS EXTP~CTED This account shall include royalties paid by the utility to others for the right to extract salable products from natural gas. 783.000 EEN'rS This accounn shall include all rents for the property of others used, occupied, or operated in connection with the extraction of salable products from natural ga~. ~INTEN~NCE 786.000 ~L~Ih'IA~CE OF ~CTION EQUIPMENT ~is acc~= sh~l include =he cos: of labor, materials used ~d ~penses incurred in =he maintenance of extraction equip- Exhibit A(6) Page 13 Account Accoun= Titl GAS SUPPLY LXPENSES OPERATION 800.000 FUEL PURCHASES This account shall include the cost of fuel purchased from producers. 806.000 L'~CHANGE GAS This account shall include debits or credits for the cost of gas in unbalanced exchange transactions whereby gas is received from another party in exchange for delivery of gas to such other party and receipt and delivery of such gas is not com- pleted during the accounting period. 807.000 PURCHASED GAS EXPENSES This account shall include expenses incurred directly in con- nection with the purchase of gas for resale. 808.000 GAS WITHDRAWN FROM STORAGE - DEBIT This account shai1 include debits for the cost of gas with- drawn from storage during the year. 809.000 GAS DELIVERED TO STORAGE - CREDIT This account shall include credits for the cost of gas delivered to storage during the year. 810.000; GAS FOR COXPRESSOR STATION FUEL - CREDIT This account shall include concurrent credits for charges which are made to operating expenses for gas consumed for compressor station fuel from the common system gas supply. 813.000 OT~KR GAS SUPPLY ~XPENSES This account shall include the cost of labor and materials used and expenses incurred in connection with gas supply functions not provided for in any of the above accounts, including fuel acquisition expenses. Exhibit A(6) - Page 14 Account Account Title UNDERGROUND GAS STORAGE EXPENSES OPERATION 814.000 OPERATION SUPERVISION AND ENGINEERING This account shall include the cost of labor ~nd expenses in- curred in the general supervision and direction of underground storage operations. Direct supervision of specific activities such as turning on and shunting off storage wells, compressor station operations, etc., shall be charged to the appropriate account. 816.000 WELLS EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating storage gas wells. Labor: 1. Supervising. 2. Testing, bailing, swabbing, blowing, and gauging storage wells. 3. Painting signs, etc. 4. Minor upkeep of well roads, fences, etc. .- 5. Turning storage wells on and off. 6. Moving cleaning out tools between locations. 7. Driving trucks. Materials and Expenses: 8. Gas, gasoline, and oil used in pumping, bailing, heating, and swabbing. 9. Lumber, nails, and other materials used for repairing old well roads and fences. 10. Wells swabs. 1!. Employees' transportation and travel expenses. 12. Freight, express, parcel post, trucking, and other transportation. 817.000 LLNES EXFE.NSES This account shall include the cost of labor, materials used and expenses incurred in operating underground storage lines. Labor: 1. Supervising. 2. Walking or patrolling lines. Exhibit A (6) - Page 15 Account Account Titl 817.000 LINES EXPENSES (continued) -3. Attending valves, lubricating valves and other equipment, blowing and cleaning lines and drips, draining water from lines, operating and cleaning scrubbers, thawing freezes. 4. Taking line pressures, changing pressur~ charts, operating alarm gauges. 5. Building and repairing gate boxes, foot bridges, stiles, tool boxes, etc., used in line operations, erecting line markers and warning signs, repairing old line roads. 6. Cleaning debris, cutting grass and weeds on rights-of-way. 7- Inspecting and testing not specifically to determf~e necessity for repairs. 8. Protecting utility property during work by others. 9. Standby time of emergency crews, responding to fire calls, etc. 10. Locating valve boxes or drip riser boxes. 11. Cleaning and repairing tools used in storage lines operations. 12. Cleaning structures and equipment. 13. Driving trucks. Materials and E~enses: 14. L~ne markers and warning signs. 15. L,~mher, nails, etc., used in building and repairing gate boxes, foot bridges, stiles, etc. 16. Charts. -' 17. Scrubber oil. 18. Hand tools. 19. Lubricants, wiping rags, waste, etc. 20. Freight, express, parcel post, trucking and other tran- sportation. 21. Employees' transportation and travel expenses. 22. Gas used in operations. 818.000 COMPRESSOR STATION EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating underground storage compressor stations. l~hor: 1. Supervising. 2. Operating and checking engines, equipment, valves, machinery, gauges, and other instruments, including cleaning, wiping, polishing, and lubricating. 3. Operating boilers and boiler accessory equipment and record- ing fuel used. 4. Repaeking valves and replacing gauge glasses, etc. Exhibit A(6) - Page 16 Account Account Titi j · 818.000 COMPRESSOR STATION EXPENSES (continued) 5. Recording pressure, replacing charts, keeping logs, and pre- paring reports of station operations. 6. Inspecting and testing equipment when not specifically to determine necessity for repairs or replacements of parts. 7. Pumping drips at the station. 8. Taking dew point readings. 9. Testing water. 10. Cleaning structures housing equipment, cutting grass and weeds, and minor grading around station. -- 11. Cleaning and repairing hand tools used in operations. 12. Driving trucks. 13. Watching during shut downs. 14. Clerical work at station. Materials and Expenses: 15. Scrubber oil. 16. Lubricants,.wiping rags, and waste. 17. Charts and printed forms, etc. 18. Gauge glasses. 19. Chemicals to test water. 20. Water tests and treatment by other than employees. 21. Janitor and washroom supplies, firs~ aid supp%ies, land- scaping supplies, etc. 22. Employees' transportation and travel expenses. 23. Freight, express, parcel post, trucking, and other trans- portation. 24. Utility services: light, water, telephone. 819.000 COMPRESSOR STATION FUEL AND POWER This account shall include the cost of gas, or electricity, used for th~ operation of underground storage compressor stations. 820.000 MEASURLNG AND REGULATING STATION EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating underground storage measuring and regulating stations. Labor: 1. Supervising 2. Recording pressures and changing charts, reading meters, etc. 3. Estimating lost meter registrations, etc. except gas pur- chases and sales. 4. Calculating gas volumes from meter charts except gas pur- chases and sales. 5. Adjusting and calibrating measuring equipment, changing meters, orifice plates, gauges, clocks,~tc., not in connecKion with construction or maintenance. Exhibit A(6) - Page 17 Account Account Titie 820,000 MEASjRING AND REGULATING STATION EXPENSES (continued) 6. Testing gas samples, inspecting and testing gas sample tanks and other meter engineers equipment, determining specific gravity and Btu content of gas. 7. Inspecting and testing equipment not specifically to determine necessity for repairs, including pulsation tests. 8. Cleaning and lubricating equipment. 9. Keeping log and other operating records, preparing reports of operations, etc. 10. Attending' boilers and operating other accessory equipment. 11. Installing and removing district gauges for pressure survey. 12. Tha~ring freeze in gauge pipe. 13. Inspecting and pumping drips, dewatering manholes and pits, inspecting sumps, cleaning pits, etc. blowing meter drips. 14. Moving equipment, minor structures, etc., not in connection with maintenance or construction. Materials and Expenses: 15. Charts and printed forms, stationery and office supplies, etc. 16. Lubricants, wiping rags, waste. 17. Employees' transportation and travel expenses. 18. Freight, express, parcel post, trucking and other transportation 821.000 PURIFICATION EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating equipment used for purifying, dehydrating, and conditioning of natural gas in connection with underground storage operations. T~hor: 1. Supervising. 2. Changing charts on fuel meters. 3. Emptying, cleaning and refilling purifier boxes. : 4. Oiling dip sheets of purifier covers. 5. Removing spent oxide to refuse piles. 6. Ravivifying oxide. 7. Taking readings of inlet and outlet pressures and tempera:ure. 8. Unloading and storing glycol. 9. Watching station and equipment. 10. Cutting grass and weeds, and minor grading around equipment and stations. 11. Hauling operating employees, materials, supplies and tools, etc. 12. Inspecting and testing equipment, not specifically to determine necessity for repairs or replacement of parts. 13. Lubricating equipment, valves, etc. 14. Operating and checking equipment, valves, _instruments, etc. Exhibit A(6) - Page 18 Account Account ~cle 821.000 PURIFICATION EXPENSES (continued) Materials and Expenses: 15. Liquid purifying supplies 16. Iron oxide. 17. Odorizing materials. 18. Charts, printed forms, etc. 19. Employees' transportation and travel expenses in connection with purification and dehydration operations. 20. Freight, express, parcel po~t, trucking and other transportation. 21. Lubricants, wiping rags, waste, etc. 825.000 STORAGE WELL ROYALTIES This account shall include royalties, rents, and other payments includible in operating expenses for gas wells and gas land acreage located within and comprising underground storage projects of the utility. 826.000 RE~S This account shall include rents for property of others used in connection with the storage of gas underground, other than rents and royalties paid with respect to storage wells and gas lands utilized for the holding of gas in underground storage. MAINTENANCE 833.000 MAINTENA~NCE OF LINES This account shall include the cost of labor, materials used and expenses incurred in the maintenance of underground storage lines. 834.000 MAI~NT_~A.~CE OF C0MPKESSOR STATION EQUIPMENT. This account shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment. 835.000 }~INT~NA~NCE 0F MEASURING AND REGULATING STATION EQUIPMENT This account shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment. 836.000 MAINTENANCE OF PURIFICATION EQUIPmeNT This account shall include the cost of labor, materials used and expenses incurred in the maintenance of purification equipment. Exhibit A (6) - Page 19 Account Account T~ .o .. TRANSMISSION EXPENSES OPERATION 850.000 OPERATION SLrPERVISION AND ENGINEERING This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of transmission facilities. Direct supervision of specific activities such as operation of transmission lines, compressor stations, etc. shall be charged to the appropriate account. ~. 851.000 SYSTEM CONTROL AND LOAD DISPATCHING This account shall include the cost of labor and expenses incurred in dispatching and controlling the supply and flow of gas through the system. Labor: 1. Supervising. 2. Analyses of pressures for irregularities, as received. 3. Collecting pressures by telephone and radio. 4. Controlling mixture of various gases to maintain proper Btu content. 5. Correspondence and records, typing and maintaiHing files. Controlling production and storage inputs and withdrawals. 7. Instructing field men to increase or decrease pressures at regulators. 8. Maintaining pressures at compressor stations, key line junctions and regulating stauions to divide the available gas during heavy demand periods. 9. Maintaining pressure log sheets. 10, Maintaining proper compression ratios at compressor stations, consistent with economical operations. 11. Maintaining lowest necessary line pressures consistent with satisfactory service. 12. Maintaining well operation record by well classification. 13. Requesting pressure changes at compressor stations, regulating stations, and key line junctions. 14. Rerouting gas during emergencies and planned shut downs. Materials and Expenses: 15. Consultants' fees and expenses. 16. Meals, traveling, and incidental expenses in connection with system load dispatching. 17. Office supplies, stationery and printed forms. 18. Transportation: company and rental vehicles. 19. Utility services: light, water, telephone. Exhibit A(6) - Page 20 Account Account Title : 852.000 COMML~NICATION SYSTSM EXPENSES This account shall include the cost of labor, materials used and expenses incurred in connection with the operation of transmission communications facilities, such as radio and telephone communications sTstems, including payments to others for communications services for transmission and load dispatching operations. Labor: i. Supervising. 2. Operating switchboards, radio equipment, power generators, microwave equipment, etc. (except general office switchboards). 3.Tagging telephone poles. 4.Testing and replacing telephone batteries, radio tubes, etc. 5. Cutting weeds and grass along telephone rights-of-way and around structures and equipment. 6.Changing radio frequencies. 7.Securing FCC authorization to change frequencies. 8.Taking FCC radio operator tests. 9.Transferring mobile radios between vehicles. 10. Changing locations of telephone and other communications equipment not in connection with maintenance or construction. 11. Inspecting and testing not specifically to determine necessity for repairs. 12. Cleaning and lubricating equipment. 13. Cleaning structures housing equipment. .Materials and Expenses: 14. Payments to others for communications services. 15. Telephone batteries, radio tubes, etc. 16. Radio crystals and other materials used in changing radio frequencies. 17. Lubricants, wiping rags, and waste. 18. Employees' transportation and travel expenses. 19. Freight, express, parcel post, trucking, and other trans- portation. 853.000 CO}~.~ESSOR STATION LABOR ~ND E3ZPENSES This account shall include the cost of labor, materials used and expenses incurred (other than fuel and power) in operating trans- mission compressor stations. -' .. Labor: 1. Supervising. 2. Operating and checking engines, equipment valves, machinery, gauges, and other instruments, including cleaning, wiping, polishing, and lubricating. Exhibit A(6) - Page 21 ---, _,. Account Account ?_ .a ; 853.000 C0beRESSOR STATION LABOR A~ND EXPENSES (continued) 3. Operating boilers and boiler accessor7 equipment and recording fuel used. 4. Repacking valves and replacing gauge glasses, etc. 5. Recording pressures, replacing charts, keeping logs, and pre- paring reports of station operations. 6. Inspecting and testing equipment not specifically to determine necessit7 for repairs. 7. Pumping drips at the station. 8. Taking dew point readings. 9. Testing water. I0. C'.eaning structures, housing equipment, cutting grass and weeds, and minor grading around station. 11. Cleaning and repairing hand tools used in operations. 12. Driving trucks. 13. Watchins during shut downs. 14. Clerical work at station. Materials and Expenses: 15. Scruhber oil. 16. Lubricants, wiping rags, and waste. 17. Charts and printed forms, etc. 18. Gauge glasses. 19. Chemicals to treat water. 20. Water tests and treatment by other than employees. 21. Employees' transportation and travel expenses. 22. Freight, express, parcel post, trucking, and other trans- portation. 23. Utility services: light, water, telephone. 854.000 CAR FOR CO.~PRESSOR STATION FUEL This account shall include the cost of gas used for the operation of transmission compressor stations. 856.000 FAINS EXPOSES This account shall include the cost of labor, materials used and expenses incurred in operating transmission mains. Labor: 1. Superviaing.. 2. Walking or patrolling lines. 3. Attending valves, lubricating valves and other equipment, blowing and cleaning lines and drips, draining water from lines, operating and cleaning scrubbers, thawing freezes. Exhibit A(6) - Page 22 Account Account ..ie " 856.000 MAIN~ EXPENSES (continued) 4. Taking line pressures, changing pressure charts, operating alarm gauges. 5. Building and repairing gate boxes, foot bridges, stiles, etc., used in the operations, erecting line markers and warning signs, repairing old line roads. 6. Cleaning debris, cutting grass and weeds on rights-of-way. 7. Inspecting and testing not specifically to determine necessity for repairs. 8. Protecting utility property during work by others. 9. Standby time of emergency crews, responding to fire calls, etc. 10. Locating valve boxes or drip riser boxes. 1~. Cleaning and repairing tools used in mains operations, making tool chests, etc. 12. Cleaning structures and equipment. 13. Driving trucks. Materials and Expenses: 14. Line markers and warning signs. 15. Lumber, nails, etc., used in building and repairing gate boxes, foot bridges, stiles, etc. 16. Charts. 17. Scrubber oil. 18. Hand tools. 19. Lubricants, wiping rags, waste, etc. 20. Freight, express, parcel post, trucking and other transportation. 21. Employees' transportation and travel expenses. 22. Janitor and washroom supplies. 23. Utility services: light, water, telephone. 24. Gas used in mains operations. 857.000 MEASURING AND REGULATING STATION EXPENSES This account shall include the cost of labor, materials used and expenses incurred in operating transmission measuring and regulating stations. Labor: .. 1. Supervising. 2. Recording pressures and changing charts, reading meters, etc. 3. Estimating lost meter registrations, etc., except gas purchases and sales..' 4. Calculating gas volumes from meter charts, except gas purchases and sales. 5. Adjusting and calibrating measuring equipment, changing meters, orifice plates, gauges, clocks, etc. not in connection with construction or maintenance. Exhibit A(6) - Page 23 Account Accoun~ ..tie . 857.000 MF_~SL~ING AND REGULATING STATION EXPENSES (continued) 6. Testing gas samples, inspecting and testing gas sample tanks other meter engineers' equipment, determining specific gravity and B~u content of gas. 7. Inspecting and testing equipment not specifically to determine necessity for repairs including pulsation tests. 8. Cleaning and lubricating equipment. 9. Keeping log and other operating records, preparing reports of operation,-etc. 10. Attending boilers and operating other accessory equipment. 11. Installing and removing district gauges for pressure survey. 12. Thawing freeze in gauge pipe. 13. Inspecting and pumping drips, dewa:ering manholes and pits, inspecting sumps, cleaning pits, etc. blowing meter drips. 14. Moving equipment, minor structures, etc., not in connection with maintenance or construction. Materials and Expenses: 15. Charts and printed forms. 16. Lubricants, wiping rags, waste. 17. Employees' transportation and travel expenses. 18. Freight, express, parcel post, trucking and other transportation. 19. Utility services: light, water, telephone. 858.000 TRANSMISSION AND COMPRESSION OF GAS BY OTHER This account shall include amounts paid to others for the trans- mission and compression of gas of the utility. 860.000 RENTS This account shall include rents for property of others used, occupied or operated in connection with the operation of the trans- mission system. Include herein rentals paid for regulator sites, railroad crossing, rights-of-way, annual payments to governmental bodies and others for use of public or private lands, and reser- vations for.rights-of-way. MAINTENANCE 861.000 MAINTENANCE SUPERVISION AND ~NGINEERING This account s~all include the cost of labor and expenses incurred in the general supervision and direction of maintenance of trans- mission system facilities. Direct field supervision of specific jobs shall be charged to the appropriate maintenance accounts. 862.000 MAINTENANCE OF STRUCTURES This account shall include the cost of Iabor, materials used and expenses incurred in the maintenance of structures. Exhibit A(6) - Paqe 24 ..Account Account ~ltle 863.000 MAINeENACE OF MAINS This account shall include the cost of labor, materials used and expenses incurred in the maintenance of mains. 1. Supervising. 2. Electrolysis and leak inspection. 3. Installing and removing temporary lines, when necessitated by maintenance. 4. Lamping and watching while making repairs. 5. Lowering and changing location of lines, when the same pipe is used. 6. Protecting lines from fires, floods, land slides, etc. 7. Rocking creek crossings. 864.000 MAINTENANCE OF COMPRESSOR STATION EQUIPMENT This account shall include the costof labor, materials used and expenses incurred in the maintenance of equipment. 865.000 MAINTENANCE OF MEASUKING A~ND REGULATING STATION This account Shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment. 866,000 MAINTENANCE OF COMM]3NICATION EQUIPMEIqT This account shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment. 867.000 MAINTENA~NCE OF OTHER EQUIPmeNT This account shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment. Exhibit A(6) - Page 25 Account Account Title ADMINISTRATIVE AND GENERAL LXPENSES OPERATION 920.000 ADMINISTP~TIVE AND GENERAL SALARIES This account shall include the salaries of o'fficers, execu- tives, and other employees of the utility properly chargeable to utility operations and not chargeable directly to a par- ticular operating function. .' 921.000 OFFICE SUPPLIES kh~ EXPENSES This account shall include office supplies and expenses in- curred in connection with the general administration of the utility's operations which are assignable to specific adminis- trative or general departments and are not specifically pro- vided for in other accounts. 923.000 OUTSIDE SERVICES ~LOYED This account shall include the fees and expensesjof profes- sional consultants and others for general services which are not applicable to a particular operating function or to other accounts. It shall include also the pay and expenses of per- sons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the utility. 1. Fees, pay and expenses of accountants and auditors, ecru- aries, appraisers, attorneys, engineering consultants, management consultants, negotiators, tax consultants, etc. 2. Supervision fees and expenses paid under contracts for general management services. 924.000 PROPERTY iNSUKtNCZ 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 include also the cost of labor and related supplies and expenses incurred in property insurance activities. t. Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and similar insurance. 2. Special costs incurred in procuring insurance. 3. Insurance inspection service. 4. Insurance counsel, brokerage fees, and expenses. Exhibit A(6) - Page 26 Accoun~ Account Title 925.000 INJURIES AND DAMAGES This account shall include the cost of insurance or reserve accl-uals to protect the utility aEainst injuries and damsEes cla4m~ of employees or others, losses of such character not covered by insurance, and expenses incurred in settlement of injuries and damsEes claims. It shall also include the cost of labor and related supplies and expenses incurred in inju- ries and d~m~Ees activities. 1. Premt-~ payable to insurance companies for protection aSainst claims from injuries and damsEes by employees or others~ such as public liability, property damsEes, casualty, employee liability. 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 investiEators. 4. Payment of awards to claimants for court costs and attor- neyst services. 5. Medical and hospital service and expenses for employees as the result of occupational inJurias~ or resulting from claims of o~hers. Compensation payments under workmen's compensation laws. 7. Compensation paid while incapacitated as the result of occupational injuries. 8. Cost of safety, accident prevention and similar educa- tional activities. 926.000 EMPLOYEES PENSIONS AND BENEFITS 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 :o a pension plan under which the pension funds are irrevocably devoted to pension purposes, and payments for employee acci- dent~ sickness, hospital, and death benefits, or insurance therefor. Include, also, expenses incurred in medical, edu- cational or other activities for the benefit of employees, and administrative expenses in connection with employee pen- sions and benefits. Payment of pensions under a nonaccrual or nonfunded 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. Exhibit A(6) Pa~e 27 ---, -~. 'Account Account Title 926.000 ~?LOYEES PENSIONS AND BENEFITS (continued) 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 other activities for the benefit of employees. 930.000 MISCELLANEOUS GENERAL L'XPENSE This account shall include the cost of labor and expenses incurred in connection with the general management of the utility not provided for elsewhere. 931.0OO EF~rS This account shall include rents properly includible in util- ity operating expenses for the property of others used, occu- pied, or operate, d in connection with the general and adminis- trative functions of the utility. MAINTENtNCE 932.000' MAINTENANCE OF GENF~RAL PLANT This account shall include the cost assignable to administrative and general functions of labor, materials used and expenses incurred in =he maintenance of general property. Exhibit A (6) - Page 28 'Account Account Title - OTHER ACCOUNTS 403.000 DEPRECIATION EXPENSE This account shall include the amount of depreciation expense for all classes of depreciable utility plant in service. 404.100 DEPLETION OF PRODUCING GAS LAND AND LAND RIGHTS This account shall include charges for amortization and depletion of producing natural gas land and land rights. 408. 000 TAXES OTHER THAN INCOME TAXES This account shall include the amount of ad valorem, gross revenue or gross receipts taxes, states unemployment insurance, franchise taxes, federal excise taxes, social security taxes, and all other =axes assessed by federal, state, county, municipal, or other local governmental authorities, except income taxes. 409.100 OPERATING INCOM~ TAXES This account shall include the amount of those state and federal income taxes which relate to utility operating income. 410.100 DEFERRED INCOM~ TAXES - OPERATING INCOME This account shall include the amount of those deferred income taxes which relate to utility operating income. 412.000 INVESTMENT TAX CREDITS This account shall be debited with the total amount of investment tax credits used in calculating the reported current year's income ~axes. 419.200 INTEREST INCOME This account shall include interest revenues on securities, loans, notes, advances, special deposits, tax refunds and all other interest-bearing assets. 427.000 INTEREST EXPENSE - LONG-TE~M DEBT This account shall include the amount of interest on outstanding long-term debt issued or assumed by the utility. Exhibit A(6) - Page 29 ~ccount Account Title OTHER ACCOUNTS 428.000 AMORTIZATION OF DEBT DISCOUNT AND EXPENSE This account shall include the amortization debt discount and expense on outstanding long-termdebt. 430.000 INTEREST ON DEBT TO ASSOCIATED COMPANIES This account shall include interest accrued on amounts advanced from Associated Companies. 431.000 OTHER INTEREST EXPENSE Interest on notes payable maturing one year or less from date.