Gas Pipeline Uniform Accounting Regulations

Regulations Respecting the Uniform System of Accounts of Gas Pipeline Companies His Excellency the Governor General in Council, on the recommendation of the Minister of Energy, Mines and Resources, pursuant to subsection 88(1) of the National Energy Board Act, is pleased hereby to approve the revocation of the Gas Pipeline Uniform Accounting Regulations, C.R.C., c. 1053, and to approve the annexed Regulations respecting the uniform system of accounts of gas pipeline companies made by the National Energy Board. These Regulations may be cited as the Gas Pipeline Uniform Accounting Regulations. In these Regulations, Board[Repealed, SOR/2020-50, s. 6] book cost means, in respect of plant, the amount that is recorded in a plant account without any deduction for accumulated depreciation or amortization or for any other purpose; (valeur comptable) Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act; (Commission) contingent assets means assets without known value to the company until fulfilment of conditions regarded as uncertain; (actif éventuel) contingent liabilities means liabilities that may, under certain conditions, become obligations of the company but are not direct or assumed obligations on the date of the balance sheet; (passif éventuel) fiscal year means, in relation to the accounts of a company, the calendar year or the fiscal year approved by the Commission for the accounts of the company; (exercice financier) gas plant in service means plant used for any aspect of pipeline operations or plant held for use under a definite plan for future gas pipeline operations; (installation de gazoduc en service) minor item of plant means an associated part or item included within a plant unit; (article d’installation accessoire) net salvage value means salvage value minus any removal costs; (valeur nette de récupération) operator means a company authorized by the Commission to operate a gas pipeline; (exploitant) other plant means any installation or property that is entirely distinct from and is not operated in connection with the gas pipeline service of the company; (autre installation) plant means in respect of a gas pipeline company, any installation or property the cost of which is to be recorded in the Plant Accounts listed in Schedule IV; (installation) plant retired means a unit of plant, whether it is replaced or not, that is sold, abandoned, demolished, dismantled or otherwise removed from gas pipeline service; (installation réformée) plant unit means a complete structure, apparatus or item of equipment that constitutes a component of any installation or property that could properly be included in the plant accounts listed in Schedule IV and includes a part of any structure or apparatus where such part is a physically distinct part of such structure or apparatus and the value of such part is material; (unité d’installation) salvage value means the amount received for plant retired, including insurance proceeds, and includes any amount received for material salvage from plant retired where the material is sold; (valeur de récupération) undivided interest means a beneficial ownership in common of the assets, liabilities, revenues and expenses of a gas pipeline by two or more companies or persons. (copropriété indivise) A company may submit any question of doubtful interpretation of these Regulations to the Regulator for consideration and guidance. These Regulations apply only to a company authorized by the Commission to construct or operate a gas pipeline. Every Group 1 company shall keep separate books of account in Canada in a manner consistent with generally accepted accounting principles; unless otherwise authorized or instructed by the Commission, keep accounts in the manner set out in these Regulations; and keep a system of accounts as prescribed in these Regulations. Every Group 2 company shall keep separate books of account in Canada in a manner consistent with generally accepted accounting principles until the expiration of one year after such time as the Commission grants leave to abandon the operation of the pipeline; shall file a set of audited financial statements with the Regulator within one hundred and twenty (120) days after the end of each fiscal year of the company; shall comply with subsections 6(1), (7), (8) and (9); and is exempt from complying with these Regulations except as prescribed in paragraphs (a) to (c). In this section, Group 1 company means a company listed in Schedule VIII; and (compagnies du groupe 1) Group 2 company means any company, other than a Group 1 company, that constructs or operates a gas pipeline. (compagnies du groupe 2) A company’s accounting records shall provide sufficient particulars to show fully the facts pertaining to all entries made in the accounts. A company shall maintain the applicable accounts listed in Schedules I to VII and may, in addition, keep subsidiary accounts for its own purposes. The account numbers listed in Schedules I to VII shall be set out in the descriptive headings of the applicable ledger accounts, computer print-outs or other accounting records. All transactions applicable to a month shall be recorded in the accounts for that month and, at the end of that month, trial balances of the accounts shall be prepared. A company shall close its accounts at the end of each fiscal year. Final accounting entries for each month shall be made not later than 30 days after the last day of the month, except that the final entries for the last month of each fiscal year may be made within a period not exceeding 90 days from the end of that last month. The books, accounts and records referred to herein include not only accounting records in a limited technical sense, but all records such as minute books, capital stock records, reports, correspondence memoranda, computer printouts, tapes and card decks that may be useful in determining the history of or facts pertaining to any transaction. The books, accounts and records shall be readily accessible for examination by representatives of the Regulator. Where a gas pipeline is owned in undivided interest, the operator shall maintain all books, accounts and records of the total assets, liabilities, revenues and expenses of the pipeline in a manner that permits ready identification and access to the books, accounts and records of the beneficial owners of the pipeline. The accounts required to be maintained pursuant to subsection (2) shall be retained until the expiration of one year after leave to abandon the operation of the pipeline has been granted by the Commission. Balance sheet accounts, set out in Schedule I as account series 100 to 293, shall, in respect of a company, disclose the company’s financial position at the balance sheet date. The balance sheet accounts referred to in subsection (1) shall record assets, liabilities, share capital, and retained earnings, as the case may be. Income accounts, set out in Schedule II as account series 300 to 341, shall show a summary of a company’s revenue, expenses and extraordinary items. A company shall inform the Regulator of all extraordinary items and shall record them in account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. A company’s net balance of income or loss shall be transferred to retained earnings at the end of each fiscal year. In this section, extraordinary item means material gain or loss that is not typical of a company’s normal business activities, is not expected to occur regularly over a period of years and would not be considered a recurring factor in any evaluation of the ordinary operating process of the company. Retained earnings accounts, set out in Schedule III as account series 350 to 357, shall show a summary of all changes in balance sheet account 212 (Retained Earnings) for each year and shall include the balance transferred from income for the year; prior period adjustments; miscellaneous retained earnings adjustments; dividend appropriations; and income tax applicable to retained earnings adjustments. Plant accounts, set out in Schedule IV as account series 401 to 498, are subsidiary to balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvement to Facilities Leased from Others), and shall be used to classify a company’s plant. Plant accounts shall be supported by subsidiary accounts that record the costs, by location, of each major facility including each main gathering system, products extraction plant, gas storage facility, compressor station and main pipeline; and any other facility that is separately located. Plant accounts shall be maintained to record separately expenditures for each plant addition, replacement and retirement authorized by the Commission. Any installation or property not used in pipeline operations shall be recorded in balance sheet account 110 (Other Plant). Operating revenue accounts, set out in Schedule V as account series 500 to 579, shall be used to classify all revenue of a company from pipeline operations. Operating expense accounts, set out in Schedule VI as account series 610 to 729, shall include records of a company’s operating expenses pertaining to pipeline operations. Maintenance expense accounts, set out in Schedule VII as accounts series 810 to 889, shall include records of a company’s maintenance expenses pertaining to pipeline operations. The operating and maintenance expenses referred to in subsections (1) and (2) shall be recorded in the appropriate account under the applicable service function referred to in Schedule VI and VII. The service functions referred to in subsection (3) are gathering; products extraction; gas supply (operating only); underground storage; transmission; general; and administrative and general (operating only). Expenses common to more than one operating or maintenance expense account shall, where practicable, be equitably apportioned between such accounts and adequate records showing the basis of such apportionment shall be maintained. The operating and maintenance expense accounts under the service functions listed in paragraphs (4)(a) to (f) shall be supported by subsidiary accounts that record the expenses, by location as practicable for each major facility such as each main gathering system, products extraction plant, gas storage facility, compressor station, main pipeline system and any other facility that is separately located. Where it is not possible to record expenditures directly to a particular expense or plant account, a company may maintain clearing accounts for recording the expenditures. Amounts recorded in clearing accounts shall be regularly distributed to the appropriate expense or plant accounts on an equitable basis. Any balances in the clearing accounts shall be substantially distributed before the end of each fiscal year unless items held therein relate to a future period. The net monthly balance in clearing accounts shall be included in account 179 (Other Deferred Debits) or account 279 (Other Deferred Credits), as applicable. Where an operator maintains clearing accounts for the purpose of distributing monthly balances to the beneficial owners of a pipeline, the accounts shall contain sufficient particulars to permit ready identification and reconciliation with the accounts of the beneficial owners. An item that appears in a representative list in any account in the schedules shall be included in the corresponding account of a company if the inclusion of the item is consistent with the text of the account. A representative list shall be considered only as representative and not as excluding from an account any analogous component or item that is omitted from the list. A company shall record in the plant accounts the costs incurred to acquire or construct any plant. Where the consideration given for plant referred to in subsection (1) is other than money, the money value of the consideration on the day the contract for the acquisition or construction comes into force shall be debited to the applicable accounts and a record of the consideration, in sufficient detail to identify it, shall be retained by the company. Where a company purchases all or part of the existing facilities of another company, the purchasing company shall prepare and submit to the Commission for approval details of the proposed method of accounting for such purchase together with the company’s reasons for the proposed method of accounting. Where the facilities referred to in subsection (3) are purchased from an affiliated company, the original cost of the facilities to the affiliated company and the accumulated depreciation applicable to the facilities to the date of purchase, as shown in the accounts of the affiliated company, shall be recorded in the accounts of the purchasing company. Balance sheet account 115 (Gas Plant Under Construction) shall be supported by subsidiary records that record separately each transaction for each project involving plant additions, replacements or relocations. Where a plant acquired by a company is constructed by or for that company, the costs to be recorded in the plant accounts shall include the elements of cost set out in sections 16 to 27 and section 29. Cost of labour for construction of plant shall include the amount paid for labour, including employee benefits, performed by the company’s employees. Where the employees referred to in subsection (1) are specially assigned to construction work, their pay while so engaged shall be included in the cost of the work. No charge shall be made to plant accounts for the pay of the company’s employees whose services in connection with construction are merely incidental, except as provided in section 26. The allocation of travelling and other incidental expenses of the company’s employees shall be made to accounts on the same basis as the distribution of the pay of those employees. Cost of materials and supplies shall include the purchase price of materials and supplies at the point of free delivery, the cost of ad valorem taxes, inspection, transportation and, where appropriate, a suitable proportion of store expenses. In determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed and realized on the purchase thereof. In debiting the plant accounts with materials and supplies used, allowance shall be made for the value of unused portions and other salvage; the materials recovered from temporary pipe, scaffolding and other temporary structures used in construction; and small tools recovered and usable for other purposes. Cost of special machine and heavy work equipment service shall include the cost of labour, material, depreciation, supplies and other costs incurred in maintaining and operating power shovels, scrapers, pile drivers, dredgers, ditchers, material loaders and similar equipment, and any amount paid to others for rent, operation and maintenance of such equipment. Where a construction project necessitates the purchase of equipment to be used exclusively on the project until the project is completed, the cost of the equipment shall be debited to the accounts representing the cost of the project and while the cost remains so debited no debit shall be made to expenses for depreciation on the equipment. The amount realized from any subsequent sale of equipment referred to in subsection (2), or the appraised value of any equipment retained after the completion of the project for which it was purchased, shall be credited to the accounts debited with the equipment’s cost. The appraised value of equipment retained after the completion of the project for which it was purchased shall be debited to the appropriate plant account and, thereafter, for the purposes of accounting, that appraised value shall be considered as the cost of the equipment. Cost of transportation incurred in the construction of plant shall include the cost of transporting men, equipment and material and supplies used for construction purposes. The cost of transportation of construction material to the point where material is received by the company shall be included, if practicable, in the cost of the material. Cost of contract work shall include any amount paid for work performed under contract by other companies and individuals. Cost of insurance, injuries and damages shall include the premiums paid for insuring plant during construction; the costs incurred for protection against fire and wilful destruction of plant during construction; and the costs incurred in respect of injuries to persons, damage to property of others and damage to plant incidental to construction. Insurance recovered or recoverable for compensation for injuries to persons injured during the construction of plant shall be credited to the account or accounts debited with the cost of the injuries. Insurance recovered or recoverable in respect of property damage incidental to the construction of plant shall be credited to the account or accounts debited with the cost of the damage. Subject to subsection (5), any injury or damage incidental to the removal of a structure or part thereof shall be debited to the account recording the retirement costs of the structure. Any injury or damage incidental to the removal of a structure or part thereof that is an encumbrance on newly acquired land by a company shall be included in the cost of that land. Cost of privileges shall include compensation paid for the temporary use of public and private property in connection with a construction project. Cost of engineering services shall include any amount paid to other companies, firms or individuals engaged by the company to plan, design, prepare estimates, supervise, inspect or give general advice and assistance in connection with a construction project. Earnings and expenses during the construction of plant shall include all revenues derived during the construction period from property that is included in the cost of plant under construction and all expenses that are attributable to the revenues received. Cost of rents shall include any amount paid for the use of construction quarters and office space occupied by construction forces. Cost of overhead during construction shall include engineering, supervision and administrative salaries and expenses, employee benefits, legal fees, taxes, shop service and other analogous items, to the extent that they may be reasonably considered to be plant costs. Only actual and reasonable overhead costs shall be assigned to particular jobs or units. The records supporting the entries for cost of overhead during construction shall show the total amount of each type of overhead expenditure capitalized in the year and the basis of distribution thereof in accordance with the instructions set out in account 498 (Overhead Charged to Construction). A company may, at its option, capitalize an allowance for funds used during construction. The allowance for funds used during construction shall be calculated in accordance with the instructions set out in account 497 (Allowance for Funds Used During Construction), and may, at the option of the company, be prorated over the appropriate depreciable plant accounts. On the date that plant is placed in service, the company shall cease to capitalize an allowance for funds used during construction on the plant and shall compute and charge to the appropriate account an amount representing depreciation as determined under sections 49 to 57. The date that the plant is in service, for the purpose of subsection (1), shall not be later than the first day of the month following issuance of a Leave to Open Order by the Commission. Elements of cost analogous to those defined in sections 16 to 27 may be included in the cost of plant. The costs incurred in disposing of material excavated may be included as an element referred to in subsection (1). For the purposes of these Regulations, additions to plant shall include increases in plant through purchase or construction of additional plant, the replacement of existing plant units, and the capitalization of major renewals to plant and, subject to the approval of the Commission, may include substantial improvements made to existing plant in order to make such plant more useful, more efficient, more durable or of greater capacity than the plant was when it was originally placed in service. The cost of additions referred to in subsection (1) shall be debited to the appropriate plant accounts. Typical elements of construction are set out in sections 16 to 27 and section 29. All expenditures relevant to new construction shall be capitalized. After the completion of initial construction, only the costs directly connected with additions or replacements of plant shall be capitalized. All property charged to plant accounts shall consist of plant units or minor items of plant. Each company shall establish its own list of plant units for each plant account. A company’s list of plant units shall be filed with and be subject to the approval of the Commission. Subject to the approval of the Commission, the list of plant units, as filed, may be revised and amended from time to time. The cost of an additional plant unit shall be debited to the appropriate plant account. The book cost of a plant unit retired, whether replaced or not, shall be credited to the appropriate plant account. Where a plant unit is replaced, the book cost of the original plant unit shall be credited to the appropriate plant account and the cost of the replacement unit shall be debited to the appropriate plant account. Subject to section 33, the cost of a minor item of additional plant not constituting a replacement but identified with a plant unit shall be debited to the appropriate plant account. The cost of a minor item of plant that constitutes a replacement shall be debited to the appropriate expense account and the book cost of the minor item replaced shall not be adjusted. Where a minor item of plant is acquired at a cost of less than $5,000, the cost shall be debited to expense. A company shall not combine unrelated items of plant for the purpose of excluding the items from the provisions of subsection (1); or divide expenditures made under a general plan for related items that cost $5,000 or more per item into smaller parcels for the purpose of debiting capital items to expense. With the approval of the Commission after the filing of a request by a company, the company may, for the purpose of its accounting, adopt a limit of less than the amount set out in subsection (1) for any class of plant. No change may be made in the amount of a limit referred to in subsection (3) except with the prior approval of the Commission. In this section, cost of renewals means the aggregate of the cost of material, other than old parts remaining in a rebuilt plant unit, and the cost of labour used in the rebuilding process, but does not include the cost of dismantling and repairing old parts that are re-used. Subject to subsection (3), where the cost of renewals to parts of a plant unit exceeds 50 per cent of the new replacement cost of a plant unit of the same kind and class, the plant unit shall be considered as rebuilt. Subsection (2) does not apply to the renewal of a plant unit where the new replacement cost of that unit would not exceed $120,000. A rebuilt plant unit shall be accounted for as an addition and the old plant unit that the rebuilt plant unit replaced shall be accounted for as retired from service. Subject to subsection (6), the charge to the appropriate plant account for a rebuilt plant unit shall be the aggregate of the value of old parts remaining in the rebuilt plant unit; and the cost of labour and material applied. The cost of dismantling and repairing old parts used in the renewal of plant shall be debited to maintenance expense. Where second-hand plant not previously owned by the company is acquired in a physical condition that necessitates extensive expenditures to bring it up to the standard required by the company, the expenditures shall be debited to the appropriate plant account. Where a plant unit, whether replaced or not, is retired from pipeline operations, the book cost of the plant unit shall be credited to the appropriate plant account. The book cost and the costs of removal of a depreciable plant unit retired and not replaced shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. The net salvage value of a plant unit retired shall be credited to the accumulated depreciation or accumulated amortization account referred to in subsection (2). Each retirement project shall be supported by subsidiary records that show separately the details thereof. Where the book cost of any retired plant is not recorded separately, the book cost of that plant shall be its appropriate share of the book cost of the entire group in which the particular plant is located. Where salvaged material is retained for use by a company, the original cost, estimated if not known, of the material, less a fair allowance for depreciation, shall be debited to account 150 (Plant Materials and Operating Supplies). The salvage value of depreciable plant or salvaged material therefrom shall be credited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. The removal costs incurred in dismantling or demolishing retired depreciable plant and in recovering salvage therefrom shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable, except that the current cost of removing and replacing a minor item of plant in maintenance operations shall be included in the appropriate expense account. In respect of depreciable plant, ordinary retirement means a retirement of depreciable plant that results from causes reasonably assumed to have been anticipated or contemplated in prior depreciation or amortization provisions. There shall be no debit or credit to income or to retained earnings for an ordinary retirement. In respect of depreciable plant, extraordinary retirement means a retirement of depreciable plant that results from causes that could not reasonably have been anticipated or contemplated in previously making provision for depreciation or amortization, including such causes as fire, storm, flood, premature obsolescence or unexpected and permanent shutdown of an entire operating assembly for reasons other than ordinary wear and tear. Where the gain or loss on an extraordinary retirement is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss from account 105 (Accumulated Depreciation-Gas Plant) or account 106 (Accumulated Amortization-Gas Plant) to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Notwithstanding subsection (2), a company may, with the approval of the Commission, transfer all or part of the amount of a material gain or loss on an extraordinary retirement to account 279 (Other Deferred Credits) or account 171 (Extraordinary Plant Losses), as applicable, for amortization at a rate approved by the Commission. Immaterial gains or losses resulting from extraordinary retirements shall be accounted for in the same way as ordinary retirements. Where a plant unit of pipeline is relocated, it shall be considered as plant retired and its book cost shall be credited to the appropriate plant account. Where a plant unit of pipeline has been relocated, the relocated plant unit shall be considered as an addition and the cost shall be debited to the appropriate plant account. Where a company’s pipeline or any part thereof is located in accordance with an agreement that may require the company to relocate all or part of its pipeline and the circumstances are such that the company has no reasonable alternative but to relocate more than a plant unit of pipeline, the company may, with the approval of the Commission, debit the costs of relocation to expenses for the period in which the relocation was carried out. Where a relocation of a type referred to in subsection (3) results from action by a governmental authority, the cost of relocation may be accounted for in the manner set out in subsection (3). Where a plant unit of line pipe is replaced with other pipe in the same location, a company shall debit to the appropriate plant account the cost of opening and back filling the trench together with the cost of hauling, laying and connecting the pipe, the cost of removing retired pipe from the trench and other costs of pipeline construction. The cost of reconditioning line pipe not removed shall be accounted for as repairs and not as retirements or replacements. Where the plant unit of line pipe referred to in subsection (1) is not replaced by new pipe in the same location, the cost of opening and back filling the trench from which the pipe is removed together with the cost of removing the pipe shall be accounted for as cost of salvage. Where plant is no longer required for pipeline purposes but is retained by the company, its book cost shall be transferred to account 110 (Other Plant) and the accumulated depreciation or accumulated amortization, if any, with respect thereto shall be transferred from account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant) to account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant), as applicable. Where depreciable other plant included in account 110 (Other Plant) is retired or sold, the book cost, salvage and removal costs shall be recorded in account 111 (Accumulated Depreciation — Other Plant). Where the gain or loss from the sale or retirement of depreciable other plant is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss from account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant) to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Where the gain or loss from the sale or retirement of depreciable other plant included in account 110 (Other Plant) is not material, the company shall transfer the amount of the gain or loss from account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant) to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable. Where land is retired or sold, account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) or account 110 (Other Plant) shall be credited with the book cost of the land. Where the gain or loss from the sale or retirement of land is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Where the gain or loss from the sale or retirement of land is not material, the company shall transfer the amount of the gain or loss to account 319 (Other Income) or to account 329 (Other Income Deductions), as applicable. The cost of repairs recorded in the maintenance accounts for gas plant shall include the cost of inspection to determine the repairs that are necessary; the cost of adjusting, repairing or replacing parts; and the cost of inspection, testing and running of parts to determine whether or not the repairs have been properly made and the repaired item is ready for service. Maintenance accounts kept in accordance with Schedule VII shall be debited with the costs of repairing and maintaining plant and shall include incidental costs including the construction and removal of false work in connection with maintenance; the cost of relocating pipeline plant where retirement accounting for units of plant is not involved; the cost of raising or lowering line pipe in the trench where retirement accounting for units of plant is not involved; the cost of repairing fences, sidewalks, driveways and streets within or adjacent to the plant; the cost of installing, maintaining and removing temporary facilities to prevent any interruptions in operations; and the cost of maintaining public improvements included in account 176 (Public Improvements). Where employees whose pay is normally debited to operating expenses mow and beautify grounds and buildings, periodically restore seasonal features such as gardens, shrubbery and lawns, or clear and remove snow, ice and fallen timber, their pay and any other costs arising from such employment may be debited to the maintenance or operating account, at the option of the company. Where a company prepares a budget for its maintenance expenses for a fiscal year, the following procedure may be followed: the actual monthly expenses shall be debited to the appropriate maintenance accounts; the excess of an actual expense over a budgeted monthly expense shall be debited to account 275 (Gas Cost and Maintenance Equalization) and credited to the appropriate expense account; the excess of a budgeted expense over an actual monthly expense shall be debited to the appropriate expense account and credited to account 275 (Gas Cost and Maintenance Equalization); and at the end of the fiscal year, the balance in account 275 (Gas Cost and Maintenance Equalization) shall be transferred to the appropriate expense account. In sections 49 to 57, group system means a system by which a weighted average rate of depreciation is calculated for a particular group of plant accounts, a plant account, or a group of assets within a plant account, and established in recognition of the fact that some part of the investment in a group of assets may be recovered through salvage realization and that there will be variations in the service lives of the assets constituting the group, even among assets of the same class; (système de dépréciation en groupe) service life means the period of time between the placement of plant in service and its retirement; (vie utile) service value means the book cost of plant minus the estimated net salvage value of that plant. (valeur de service) Under the group system, in the case of an ordinary retirement of an individual asset in a group of assets, the accumulated depreciation attributable to the asset shall, for the purposes of these Regulations, be considered to be equal to the cost of the asset minus any amount that may reasonably be recoverable through salvage realization, whether or not the actual service life of the asset is shorter or longer than the anticipated average service life for the group. Assets, within a group of assets, remaining in use after reaching their average service life expectancy shall not be regarded as fully depreciated until actual retirement or until the group is fully depreciated, whichever is earlier. Charges for depreciation with respect to accounts that are classed by section 51 as being accounts covering assets that are depreciable shall be computed in conformity with the group system. A company shall charge depreciation by using such one of the following methods as is chosen by the company and approved by the Commission for use by the company: the straight line method; the use or unit of production method; the diminishing value method; or any other systematic method consistent with generally accepted accounting principles. All plant accounts, with the exception of accounts 410, 420, 450, 460 and 480 (Land), are classed as accounts covering assets that are depreciable and, for the purpose of the group system of depreciation accounting, depreciable asset accounts may be grouped according to the nature of the plant included in each account. Accounts 401 (Franchises and Consents) and 402 (Other Intangible Plant) are depreciable only to the extent of items included therein that are subject to recognizable loss in value. There shall be debited each month to expenses or other appropriate accounts and credited to the accounts for accumulated depreciation amounts that will allocate, in a systematic and rational manner, the service value of plant over its estimated service life. Monthly depreciation charges under the straight line method shall be computed by applying the annual percentage rate of depreciation to the depreciation base as of the first of each month and dividing the result by 12; or with the prior approval of the Commission, applying the annual percentage rate of depreciation to the depreciation base at the beginning of the company fiscal year and dividing the result by 12. Monthly depreciation charges under the use or unit of production method shall be computed by applying the appropriate rate or use or production per unit for the year to the number of units of use or production for the month. Monthly depreciation charges under the diminishing value method shall be computed by applying the annual percentage rate to the depreciation base as of the first of each month and dividing the result by 12. A company shall compute depreciation in accordance with subsection 28(1). The monthly debits for depreciation of plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use) shall be debited to account 303 (Depreciation). Depreciation on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant). A separate depreciation rate shall be used in computing depreciation charges for each group of plant accounts, each plant account or each group of assets within a plant account. In determining the rate of depreciation, consideration shall be given to all relevant factors including variations in use, increasing obsolescence or inadequacy. Each depreciation rate used shall be approved by the Commission; but, where no rate has previously been approved for any class of plant, an interim rate as estimated by the company shall be used. As soon as the information can be assembled, a company shall file with the Regulator depreciation rates estimated to be appropriate for each group of plant accounts, each plant account or each group of assets within a plant account. The rates referred to in subsection (1) shall be based on the service value and estimated service life of plant, as developed by a study of the company’s history and experience and such engineering and other information as may be available with respect to future operating conditions. The rates referred to in subsection (1) shall be established to produce a charge for depreciation equal to the sum of the amounts that would otherwise be chargeable as depreciation for each of the various classes of plant included in a group of plant accounts, for each plant account or for each group of assets within a plant account. The rates referred to in subsection (1) may be developed by a company by the method deemed most appropriate for the portrayal of the depreciation experienced and, when filed, shall be accompanied by a statement showing their basis and the methods employed in their computation. A company shall, at any time, upon direction of the Commission, conduct a study on the suitability of depreciation rates in use in the light of the company’s history and available engineering data, and shall submit to the Commission for approval a report of the results of such study together with recommendations for any desired changes in depreciation rates. Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval. Where a company acquires plant for which no depreciation rates have been approved by the Commission, the company shall immediately compile and submit to the Regulator its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54. Accumulated depreciation shall be subdivided to show separately the amount applicable to each group of plant accounts, each plant account, or each group of assets within a plant account, for which a separate weighted average rate of depreciation has been established. Where the amount is material, accumulated depreciation applicable to the assets in one depreciation group shall not be transferred by a company to another depreciation group without the approval of the Commission. A company shall keep records of depreciable plant and plant retirements in sufficient detail to show the service life of plant that has been retired and to permit the service life of plant to be estimated by the use of the mortality method or other appropriate method. For the purposes of sections 59 and 60, amortization means the gradual recovery of an amount included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) or account 110 (Other Plant) by distributing such amount over a fixed period or over the estimated remaining life of the plant. Where it is anticipated by a company that plant will be abandoned owing to the exhaustion of a particular source of traffic, obsolescence or any other cause, the company shall not change from depreciation accounting to amortization accounting without first obtaining the authorization of the Commission. The monthly debits for amortization of gas plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use) shall be debited to account 304 (Amortization). Amortization on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant). Insurance premiums paid to insurance companies shall be debited to account 723 (Insurance), unless the premiums are chargeable to clearing accounts or relate to the construction of pipeline facilities; or employee benefits. Insurance costs relative to the construction of pipeline facilities shall be debited pro rata to the appropriate plant accounts. Insurance costs relative to employee benefits shall be debited to account 725 (Employee Benefits). Any amount recovered from the insurance referred to in subsection (1), (2) or (3) shall be credited to the account or accounts originally debited with the related loss or expense. Where a company elects to create and maintain reserves for self-insurance, account 723 (Insurance) shall be debited with estimated amounts in lieu of commercial insurance premiums, and account 290 (Insurance Appropriations) shall be credited with the estimated amounts. A schedule of risks covered by self-insurance shall be kept showing the character of the risk covered and the rates used to compute estimated amounts referred to in subsection (5). The rates referred to in subsection (6) shall not exceed commercial rates for the same protection. Where, as a result of an event or accident covered by self-insurance, costs are incurred of a type that would normally be debited to an expense account, such costs shall be debited to the insurance appropriations account and any excess of the expenditure over the applicable self-insurance shall be debited to the appropriate expense account. Where the self-insurance schedule referred to in subsection (6) covers the retirement of plant, the accounting for the retirement shall be as outlined in section 36 and the self-insurance applicable to the retired item shall be transferred from account 290 (Insurance Appropriations) to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. Where a company insures with a commercial insurance company any risks covered by self-insurance, the premiums for the insurance policy shall be debited to the insurance appropriations account and any recoveries under the policies shall be credited thereto. Cash, securities or other assets set aside for a specific purpose shall be debited to account 122 (Sinking Funds), account 123 (Miscellaneous Special Funds) or account 131 (Special Deposits), as applicable, and the appropriate asset account shall be credited. Income from assets held in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) shall be credited to account 316 (Income from Sinking and Other Funds). Where a mortgage or any contractual obligation entered into by a company requires that income from assets held in a fund be added to that fund, the company shall make the necessary transfer to the fund account. Where a transfer referred to in subsection (3) is to account 123 (Miscellaneous Special Funds), and represents a company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations), the company shall concurrently debit account 329 (Other Income Deductions) and credit account 291 or 290, as applicable, with the amount transferred. A company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations) shall be provided by debits to expenses. Where the gain or loss on the sale of assets recorded in account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) is material, the company shall inform the Regulator and shall transfer the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Where the gain or loss on the sale of assets referred to in subsection (6) is not material, the company shall transfer the gain or loss to account 316 (Income from Sinking and Other Funds) or account 329 (Other Income Deductions), as applicable. In this section and sections 64 to 68, cost means the amount of money paid by a company to acquire securities or, where the consideration paid for the securities is other than money, the money value of the consideration at the time the securities are acquired. A company shall record the cost of its investment in securities, excluding amounts paid for accrued interest and accrued dividends, in the appropriate accounts at the time of acquisition of the securities. [Revoked, SOR/86-998, s. 16] Where securities having a fixed maturity date and recorded in account 132 (Temporary Cash Investments), account 120 (Investments in Affiliated Companies), account 121 (Other Investments), account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) are purchased at a discount or premium, that discount or premium may be amortized over the remaining life of the securities by periodic debits or credits to the account in which the cost of the securities is recorded, with corresponding credits or debits to account 314 (Income from Investments), account 315 (Income from Affiliated Companies) or account 316 (Income from Sinking and Other Funds), as applicable, and if the amount to be amortized does not exceed $1,000, a company may write off the total discount or premium at one time. No amortization entries shall be recorded in respect of discounts on securities held as investments unless there is reason to believe that the securities will be disposed of at a sum equal to their par value, or that the par value will be collected at maturity. Where the gain or loss on the sale of assets recorded in account 132 (Temporary Cash Investments) is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 314 (Income from Investments). Where the amount required to provide for reductions in the market value of temporary cash investments is material, the company shall inform the Regulator and shall debit the amount required to account 341 (Extraordinary Income Deductions) and concurrently credit account 132 (Temporary Cash Investments). Where the amount required to provide for reductions in the market value of temporary cash investments is not material, it shall be debited to account 314 (Income from Investments) and concurrently credited to account 132 (Temporary Cash Investments). Where the gain or loss on the sale of assets recorded in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments) is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 319 (Other Income) or to account 329 (Other Income Deductions), as applicable. A company shall be governed by recognized accounting principles in reducing the value at which securities are recorded in account 120 (Investment in Affiliated Companies) or account 121 (Other Investments) to reflect anticipated loss in value. Permanent impairment of the value of securities referred to in subsection (1) shall be recorded in the accounts but fluctuations in market value shall not be recorded. Where a reduction in the value of securities referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount of the reduction to account 341 (Extraordinary Income Deductions). Where a reduction in the value of securities referred to in subsection (1) is not material, the company shall debit the amount of the reduction to account 326 (Provision for Loss in Valuation of Investments). Subject to the approval of the Commission, a company may write down its investment in a separately incorporated company controlled by the company to reflect the company’s share of the losses of the separately incorporated company, where the operation of such a company is considered to be an integral part of the company’s gas transportation system. A company shall credit the amount of a write-down referred to in subsection (1) to account 126 (Allowance for Loss in Value of Investments) and debit that amount to account 326 (Provision for Loss in Valuation of Investments) unless the amount of the write-down is material, in which case it shall be debited to account 341 (Extraordinary Income Deductions). Subject to the approval of the Commission, where a company provides for a loss in accordance with this section and the separately incorporated company makes a profit in a subsequent year, the controlling company shall adjust the allowance for losses recorded in account 126 (Allowance for Loss in Value of Investments) by debiting the amount of the profit to that account and concurrently crediting account 326 (Provision for Loss in Valuation of Investments) unless the profit is material, in which case it shall be credited to account 331 (Extraordinary Income). In sections 70 to 74, discount means the excess of the par or stated value of any security issued or resold over the value of the consideration received for the security; (escompte) expense includes any commission paid for marketing equity and debt securities, the cost of preparing and distributing prospectuses, the cost of preparing certificates and other similar documents, and legal fees in respect of the issuance of securities; (dépenses) premium means the excess value of the consideration received from the issue or resale of securities over the par or stated value of the securities. (prime) Where a prospectus includes the issuance of long-term debt and capital stock, the items of expense that are distinguishable as to debt or stock shall be segregated and the remaining expenses shall be apportioned by using the ratio that the proceeds of long-term debt or capital stock bear to the total proceeds. Separate ledger accounts shall be maintained for each class or subclass of securities. Premiums received on the issuance of par value shares shall be credited to account 210 (Contributed Surplus). The cost of issuing shares shall be debited to account 177 (Share Capital Expense) and subsequent costs of issuing shares shall be debited to account 728 (Other General Expense). [Revoked, SOR/86-998, s. 21] The total discount and expense or the total premium less expense, as the case may be, associated with each series of each class of long-term debt shall be recorded in a separate subaccount of account 170 (Unamortized Debt Discount and Expense) or account 270 (Unamortized Debt Premium and Expense). All the debit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 170 (Unamortized Debt Discount and Expense). All the credit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 270 (Unamortized Debt Premium and Expense). Where the total discount and expense or the total premium less expense applicable to any particular issue of securities does not exceed $25,000, a company, at the time of issue, may debit the entire amount to account 321 (Amortization of Debt Discount, Premium and Expense), as applicable. In each fiscal period of a company, there shall be debited to account 321 (Amortization of Debt Discount, Premium and Expense), and credited to account 170 (Unamortized Debt Discount and Expense), a portion of each of the debit balances included in account 170 and the calculation of that portion shall be based on the ratio of the fiscal period to the remaining life of the respective securities, calculated from the beginning of the fiscal period to the date of maturity of the debt to which the charges relate, and correspondingly there shall be credited to account 321 (Amortization of Debt Discount, Premium and Expense) and debited to account 270 (Unamortized Debt Premium and Expense), a similar portion of each of the credit balances included in account 270. Where any issue or series of long-term debt of a company is redeemed before its maturity date, otherwise than by exchange or conversion into shares, the amount of the unamortized debt discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed shall be credited to account 170 (Unamortized Debt Discount and Expense) or debited to account 270 (Unamortized Debt Premium and Expense), as applicable, and where the amount is not material, concurrently debited or credited to account 321 (Amortization of Debt Discount, Premium and Expense) as applicable, in the year of redemption. Where the amount referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount to account 341 (Extraordinary Income Deductions) or credit the amount to account 331 (Extraordinary Income), as applicable. Notwithstanding subsections (1) and (2), where an issue or series of long-term debt of a company is redeemed before its maturity date by refunding through the issuance of new long-term debt, the company may, where the amount is not material, amortize the amount of unamortized discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed, by regular debits or credits as applicable, to account 321 over a period not exceeding the lesser of the remainder of the original life of the issue or series redeemed or the life of the new long-term debt. Where the amount referred to in subsection (3) is material, the company shall inform the Regulator and shall debit the amount to account 341 (Extraordinary Income Deductions), or credit the amount to account 331 (Extraordinary Income), as applicable. Where an issue or series of long-term debt of a company is redeemed before its maturity date by exchange for or conversion into capital stock of the company, the manner of accounting for the transaction shall be subject to the prior approval of the Commission. Where any long-term debt is reacquired and included in account 221 (Company Long-term Debt Owned), and the amount of the difference between the amount paid upon reacquisition and the par value plus the applicable unamortized premium or minus the applicable unamortized discount and expense, as the case may be, is not material, the amount of the difference shall be debited to account 329 (Other Income Deductions) or credited to account 319 (Other Income), as applicable. Where the amount of the difference referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount of the difference to account 341 (Extraordinary Income Deductions) or credit that amount to account 331 (Extraordinary Income), as applicable. Subject to subsection (2), current assets shall include cash and other assets that are not restricted from use for current operations and, in the normal course of operations, are expected to be converted into cash or consumed in the production of income within a one-year period. Materials and supplies shall be included in current assets notwithstanding that they may not be consumed in a one-year period. Current assets that are of doubtful value shall be written down or written off to the appropriate income or operating expense accounts to an extent required to adjust their value, but uncollectable accounts receivable shall be debited to account 145 (Allowance for Doubtful Accounts) to the extent that an allowance has been provided therefor. Current liabilities shall include obligations that are payable on demand or that mature or become due within one year. Notwithstanding subsection (1), loans payable that have a maturity date within a one-year period and have been incurred primarily for the construction of plant, and will be replaced by long-term financing, may be included in account 249 (Other Long-term Debt). Where, during any month, a transaction has occurred that affects the accounts of a company but the amount involved cannot be determined with accuracy at the end of that month, the amount shall be estimated and included in the proper accounts, unless it would not appreciably affect the accounts. Where the actual amount involved in a transaction referred to in subsection (1) has been finally determined, the estimated amount referred to in that subsection shall be adjusted to show the actual amount. [Revoked, SOR/86-998, s. 24] Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is material and the amount of the adjustment is specifically identified with and directly related to the business activities of a particular prior fiscal year, is not attributable to economic events or obsolescence occurring subsequent to the date of the financial statements for such prior fiscal year, depends primarily on decisions or determinations by persons other than the company, and could not be reasonably estimated prior to such decisions or determinations, the company shall inform the Regulator and shall record the amount of the adjustment in account 351 (Prior Period Adjustments). Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is not material, the company shall include the amount of the adjustment in the same accounts in which it would have been recorded if it had been recorded in that prior fiscal year. For the purposes of this section, the following shall be applied in determining materiality: items of a similar nature shall be considered in the aggregate and dissimilar items shall be considered individually; and to qualify for inclusion as a prior period item, the item should exceed the greater of one per cent of the total operating revenue and 10 per cent of the balance transferred from utility income accounts to account 350 (Balance Transferred from Income) for the year. [Revoked, SOR/86-998, s. 26] The par value of securities or the total value of other obligations for which a company with other parties is jointly and severally liable shall be stated as a liability only in the amount that was not primarily assumed by the other parties under the terms of the agreement by which the company and the other parties become jointly and severally liable. The amount by which the value referred to in subsection (2) exceeds the liability stated or subsequently established according to the agreement shall be shown as a contingent liability. For the purposes of these Regulations, one company is affiliated with another company if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled by the same person. For the purposes of these Regulations, a company is a subsidiary of another company if it is controlled by that other company, that other company and one or more companies each of which is controlled by that other company, or two or more companies each of which is controlled by that other company; or it is a subsidiary of a company that is subsidiary to that other company. For the purposes of these Regulations, a company is controlled by another company or person or by two or more other companies if shares of the company carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of that other company or person or by or for the benefit of such other companies; and the votes carried by shares referred to in paragraph (a) are sufficient, if exercised, to elect a majority of the board of directors of the company. Gas Plant in Service Gas Plant Leased to Others Gas Plant Held for Future Use Retirement Work in Progress Accumulated Depreciation — Gas Plant Accumulated Amortization — Gas Plant Improvements to Facilities Leased from Others Other Plant Accumulated Depreciation — Other Plant Accumulated Amortization — Other Plant Gas Plant Under Construction Other Plant Under Construction Investments in Affiliated Companies Other Investments Sinking Funds Miscellaneous Special Funds Allowance for Loss in Value of Investments Cash Special Deposits Temporary Cash Investments Accounts Receivable — Trade Accounts Receivable — Other Accounts Receivable — Affiliated Companies Allowance for Doubtful Accounts Interest and Dividends Receivable Plant Materials and Operating Supplies Other Material and Supplies Gas Stored Underground — Available for Sale Transmission Line Pack Gas Prepayments Other Current Assets Unamortized Debt Discount and Expense Extraordinary Plant Losses Preliminary Survey and Investigation Charges Other Work in Progress Public Improvements Share Capital Expense Organization Expense Other Deferred Debits Share Capital Contributed Surplus Retained Earnings Excess of Appraised Value of Plant Over Depreciated Cost Long-term Debt Company Long-term Debt Owned Advances from Affiliated Companies Other Long-term Debt Loans and Notes Payable Accounts Payable and Accrued Accounts Payable — Affiliated Companies Dividends Payable Customers’ Security Deposits Taxes Accrued Interest Payable and Accrued Long-term Debt Due Within One Year Other Current Liabilities Unamortized Debt Premium and Expense Gas Cost and Maintenance Equalization Accumulated Deferred Income Taxes Contributions and Grants Other Deferred Credits Insurance Appropriations Welfare and Pension Appropriations Other Appropriations This account shall include a company’s investment in plant, property and equipment used in gas pipeline service other than that included in account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) and account 107 (Improvements to Facilities Leased from Others). The balance in this account shall be classified according to Schedule IV and shall be supported by subsidiary records in which the plant is subdivided into component parts corresponding to each group of plant accounts; each plant account; or each asset or group of assets within a plant account. The records referred to in subsection (2) shall show in detail the current debits and credits. Where the consideration given for plant is other than cash, the value of such consideration shall be determined on a cash basis and the entry recording such transaction shall describe the actual consideration with sufficient particularity to identify it. The company shall furnish the Regulator at its request with the particulars of the determination of the cash value of any consideration referred to in subsection (4). This account shall include the cost of gas plant owned but leased to others as operating units or systems, where the lessee has exclusive possession. The balance in this account shall be classified according to Schedule IV. This account shall include the investment in plant, property and equipment in existence at the date of the balance sheet and held for future use under a definite plan for gas pipeline operations. When plant included in accounts 100, 101, 102 and 107 is retired, this account shall be debited with the book cost of the plant retired, and the costs of removal, demolition and dismantling of plant, and the account shall be credited with amounts recovered from salvage, including insurance proceeds. When final costs of each retirement are established, the book cost and the costs of removal less amounts recovered shall be transferred to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. This account shall be credited with amounts of depreciation concurrently debited to account 303 (Depreciation) to cover the loss in service value of depreciable gas plant, the cost of which is included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use). Where applicable, this account shall be credited with the depreciation of amounts included in account 107 (Improvements to Facilities Leased from Others). When the final costs of retirement of depreciable gas plant are established, this account shall be debited with the costs of removal, demolition or dismantling of the plant retired, This account shall be debited or credited with amounts transferred to another account as a result of an extraordinary retirement. (See section 40 of these Regulations) For general ledger and balance sheet purposes, this account shall be regarded and treated as a composite reserve, but for the purposes of analysis, a company shall maintain subsidiary records in which accumulated depreciation is subdivided into component parts corresponding to and the records shall show in detail the current debits and credits. (See sections 48 to 57 of these Regulations) This account shall be subdivided as follows: Accumulated Depreciation — Gas Plant in Service; Accumulated Depreciation — Gas Plant Leased to Others; Accumulated Depreciation — Gas Plant Held for Future Use; and Accumulated Depreciation — Improvements to Facilities Leased from Others. When a company is authorized by the Commission to amortize amounts carried in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use), this account shall be credited with amounts concurrently debited to account 304 (Amortization). (See sections 59 and 60 of these Regulations) Where applicable, this account shall also be credited with the amortization of amounts included in account 107 (Improvements to Facilities Leased from Others). Where a change from depreciation accounting to amortization accounting is authorized by the Commission with respect to any group of plant accounts, plant account, or group of assets within a plant account, the applicable balance in account 105 (Accumulated Depreciation — Gas Plant), shall be transferred to this account. When the final costs of retirement of amortizable gas plant are established, this account shall be debited with Subsidiary records shall be maintained for each group of plant items under a separate amortization authorization. Accumulated Amortization — Gas Plant in Service; Accumulated Amortization — Gas Plant Leased to Others; Accumulated Amortization — Gas Plant Held for Future Use; and Accumulated Amortization — Improvements to Facilities Leased from Others. This account shall include the unamortized or undepreciated cost of improvements made to facilities leased from others, where the improvements are made for the purpose of gas pipeline operations. Any amounts refunded to the company by the lessor in connection with the improvements referred to in subsection (1) shall be credited to this account. Where the service life of the improvements is terminable by the action of the lease, the cost of the improvements, less net salvage, shall be spread over the life of the lease by debits to account 304 (Amortization) and concurrent credits to account 106 (Accumulated Amortization — Gas Plant). Where the service life of the improvements is not terminated by the action of the lease, the cost of the improvements, less net salvage, shall be accounted for as depreciable plant by debits to account 303 (Depreciation) and concurrent credits to account 105 (Accumulated Depreciation — Gas Plant). This account shall include investment in plant that is entirely distinct from and is not operated in connection with the gas pipeline service of a company. Where other plant is retired from service, this account shall be credited with the cost of the plant retired. Representative List of Items of Other Plant to be included. (See section 14 of these Regulations) Commercial power plants Land and buildings not used in pipeline service Land and property acquired and held in anticipation of an indefinite future use Mineral and timber lands This account shall be credited with accounts of depreciation concurrently debited to account 311 (Expenses of Other Plant) to cover loss in service value of depreciable plant, the cost of which is included in account 110 (Other Plant). At the time of retirement of depreciable other plant, this account shall be debited with the cost of the plant retired, and This account shall be credited with amounts of amortization concurrently debited to account 311 (Expenses of Other Plant), when a company is required to amortize amounts carried in account 110 (Other Plant). Where there is a change from depreciation accounting to amortization accounting, the applicable balance in account 111 (Accumulated Depreciation — Other Plant) shall be transferred to this account. At the time of retirement of amortizable other plant, this account shall be debited with This account shall include the cost of construction of gas plant not yet placed in service, including the cost of land acquired for such projects; unapplied construction materials and supplies; taxes during construction; and other elements of construction cost. When the construction of any plant included in this account has been completed and the plant has been placed in service, the applicable cost shall be credited to this account and debited to account 100, 101, 102 or 107, as appropriate. This account shall include the cost of construction of plant other than plant under construction that may be included in account 115 (Gas Plant Under Construction). This account shall include the cost of a company’s investment in securities issued or assumed by affiliated companies and investment advances made to affiliated companies. (See sections 63 and 66 to 68 of these Regulations) This account shall be maintained in a manner that will enable information on the investment in each affiliated company to be submitted under the following headings: shares; bonds and debentures; other secured obligations; unsecured notes; investment advances; interest accrued on any of the above when the interest is not subject to current settlement; and miscellaneous investments. Where any securities referred to in subsection (2) are pledged, a complete record thereof shall be maintained. This account shall include the cost of a company’s investment in securities issued or assumed by non-affiliated companies, other than securities held in special deposits or special funds; and investment advances made to non-affiliated companies and individuals. (See sections 63, 66 and 67 of these Regulations) This account shall be maintained in a manner that will enable information on the investment in each non-affiliated company to be submitted under the following headings: This account shall include cash and the cost of securities and other assets, held by trustees or by the company’s treasurer, that have been segregated in distinct funds and are for the purpose of providing resources for the redemption of debt or shares. A separate account shall be kept for the sinking funds applicable to each class of debt or share issue. An appropriate record shall be maintained for securities issued or assumed by the company and held in sinking funds. (See section 62 of these Regulations) This account shall include cash and the cost of securities and other assets, held by trustees, managers or by the company’s treasurer, that have been segregated in funds for insurance, employees’ pensions, savings, relief, hospital and other purposes not provided for elsewhere. A separate account shall be kept for each fund. This account shall not include funds that the company holds solely as trustee and in which it has no beneficial interest. (See section 62 of these Regulations) This account shall include all credit balances maintained by a company where those credit balances represent reductions in the book value of investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments). (See account 326 (Provision for Loss in Valuation of Investments)) Debits to this account that represent reductions in the allowance for loss in value of investments carried in account 120 or 121 shall be made only with the prior approval of the Commission. commercial bank accounts available for general chequing purposes, as distinguished from bank accounts provided for special purposes, such as special deposits; petty cash funds; and funds received by a company, recorded as cash receipts and undeposited at the close of the accounting period. the unexpended balances of funds deposited specifically for the payment of dividends, interest and other current liabilities; and other deposits subject to current withdrawal for specific purposes only, including amounts deposited with airlines, utilities and unemployment insurance commissions, etc. This account shall include the cost of securities acquired for the purpose of temporarily investing cash, such as government treasury bills, deposit receipts, short-term notes and other investments of a short-term nature. (See sections 63 to 65 of these Regulations) This account shall include amounts receivable for the transportation, storage and delivery of gas, exclusive of amounts receivable from affiliated companies. This account shall include the following items when the amounts involved are considered collectible: advances to officers, employees and agents as working funds; amounts due from corporations, firms and individuals; the book value of notes receivable or other similar evidence of money receivable, due within one year from the date of issue; and other similar items. (See section 75 of these Regulations) This account shall include all amounts due from affiliated companies, such as trade accounts, dividends and interest, where such amounts are subject to settlement within one year from the date of the balance sheet. (See subsection 80(1) of these Regulations) This account shall be maintained in a manner that will enable information on receivables from each affiliated company to be submitted under the following headings: secured obligations; advances; debit balances in open accounts; interest accrued on any of the above where such interest is subject to current settlement; and miscellaneous receivables. This account shall include the total of the balances maintained by a company for the purpose of providing for reductions in the value of current assets recorded in account 140 (Accounts Receivable — Trade), account 141 (Accounts Receivable — Other), account 142 (Accounts Receivable — Affiliated Companies), and account 162 (Other Current Assets), and corresponding debits shall be made to account 728 (Other General Expense). Collections on accounts that were previously debited to this account shall be credited to this account. the amount of interest accrued to the date of the balance sheet on bonds owned, the amount of interest accrued to the date of the balance sheet on loans made, and the amounts of dividends declared on shares owned, except where the interest or dividend receivable is from an affiliated company. No dividends or other returns on securities issued or assumed by the accounting company shall be included in this account. This account shall include the cost of materials purchased primarily for use in construction, operations or maintenance, such as shop material, articles in process of fabrication by the accounting company, spare parts, fittings, valves, appliances, line pipe and other supplies but shall not include materials properly includable in account 115 (Gas Plant Under Construction) or account 102 (Gas Plant Held for Future Use). Materials and supplies purchased shall be debited to this account at the actual costs of the materials and supplies at point of free delivery plus transportation costs, ad valorem taxes and any other relevant costs, and in determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed in the purchase thereof. Materials and supplies issued shall be credited to this account and concurrently debited to the appropriate construction, operating or maintenance expense account on the basis of a unit price, determined by the use of cumulative average, first in-first out, or such other method of inventory accounting as conforms with accepted accounting practices consistently applied. Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as reusable shall be debited to this account at its original cost, estimated if not known, and credited to the appropriate maintenance, construction or accumulated depreciation account. Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as scrap shall be debited to this account on the basis of its fair and reasonable value and credited to the appropriate maintenance, construction or accumulated depreciation account. When salvaged material is sold at a higher or lower price than that at which it is included in this account, an appropriate adjustment shall be made in the accounts that were credited when the material was recovered and debited to this account. This account shall include the value of all unapplied material for current non-gas pipeline operations and maintenance, such as spare parts, shop material and supplies held primarily for other plant, merchandising, jobbing and contract work. the cost of gas purchased or produced and stored in depleted or partially depleted gas or oil fields or other underground reservoirs and held for use in meeting gas service requirements of customers; and the value of that portion of the stored gas in excess of the amount that may properly be included in account 458 (Base Pressure Gas). Gas included in this account shall be valued at average cost on a consistent basis, but gathering and transmission expenses incurred through the use of company facilities in moving gas to the storage area and expenses of storage facilities shall not be included in the cost except as may be authorized by the Commission. Deliveries to or withdrawals from underground storage of gas held for use to satisfy gas requirements of customers shall be debited or credited to this account, as appropriate. This account shall include the cost of gas owned by the company in its own pipelines or in non-owned pipelines and used to maintain the line pressure required for the transmission of gas, but the gathering and transmission expenses incurred through the use of company facilities in moving gas to the transmission area shall not be included except as authorized by the Commission. This account shall include amounts representing prepaid gas, expenses and other similar items that are to be debited to appropriate accounts by systematic write-off. This account shall be maintained in a manner that will disclose the amount of each class of prepayment and write-off. This account shall include current assets not provided for elsewhere. This account shall include the total of the debit balance in the subaccounts maintained for each series of each class of long-term debt in accordance with section 69. The amounts recorded in this account shall be amortized in accordance with section 72 or 73, as applicable. This account shall include material losses authorized by the Commission to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3). Before an amount is transferred to this account, a company shall provide the Commission with full details of the calculation thereof together with the future accounting treatment proposed by the company. Amounts recorded in this account shall be amortized by systematic debits to account 304 (Amortization), or otherwise disposed of as the Commission may approve or direct. This account shall be debited with all expenditures for preliminary surveys, plans, investigations and similar items made for the purpose of determining the feasibility of projects for gas pipeline service, and with the costs associated with applications for certificates of public convenience and necessity, Commission hearings, the acquisition of options to purchase land, land rights, easements and similar items for use in contemplated projects. Where, as a result of the expenditures referred to in subsection (1), a plant is acquired or constructed, this account shall be credited and the appropriate accounts debited with the costs related to that plant. Where a project referred to in subsection (1) is not proceeded with, the costs included in this account shall be transferred to account 329 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Regulator and, unless otherwise directed by the Commission, shall debit the amount to account 341 (Extraordinary Income Deductions). Records supporting entries to this account shall be maintained in a manner that will enable complete information to be available as to the nature and purpose of the expenditures. This account shall include all costs that are incurred for other work in progress and that may not be included in account 115 (Gas Plant Under Construction) or account 116 (Other Plant Under Construction). the deferred portion of assessments by governmental authorities (by mutual agreement or otherwise) to cover the cost of constructing public improvements, when a company has elected to make payment by lump sum and not by instalments over a number of years; and the cost borne by a company of public improvements constructed by it under governmental requirements. Amounts that are no longer deferred shall be debited to account 305 (Municipal and Other Taxes) and credited to this account. Representative List of Items of Public Improvements to be included. (See section 14 of these Regulations) Cost of land outside a company’s right of way to provide for the relocation of street or highway Curbing streets and highways Damage to property of others when incidental to highway construction Drainage system Engineering expenses when such costs apply to items chargeable to this account Flood protection Grading streets and highways Guttering streets and highways Irrigation systems Levee Paving streets and highways Sewer system Sidewalk Street lighting system Water works This account shall, with respect to the original and subsequent issues of share capital or with respect to any shares split, include expenses of the following type: the cost of preparing and distributing prospectuses; the cost of soliciting subscriptions for shares; fees and commissions paid to agents, lawyers and accountants; the cost of preparing and issuing certificates of shares; expenses incurred in securing legislative and regulatory approval for increases or decreases in authorized capital; and (See sections 68 to 70 of these Regulations) The expenses of the type indicated in paragraph (1)(d) with respect to the subsequent issues of share certificates shall be debited to account 728 (Other General Expense). Amounts recorded in this account shall be amortized, or otherwise disposed of, as the Commission may approve or direct. This account shall include expenditures incidental to organizing a company, such as all fees paid to governments for the privilege of incorporation; legal fees; and expenditures that cannot be disposed of until further information is received; undistributed balances in clearing accounts; variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by the company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Commission to facilitate consideration of disposition at a later date; and expenditures of a deferred nature, not provided for elsewhere, that are to be amortized over future periods. the total par value of any class of shares, if applicable, and the total amount received from the issuance of each class of shares without par value, excluding amounts that have been properly allocated to account 210 (Contributed Surplus), where the shares have been issued to bona fide purchasers and has not been reacquired and cancelled. This account shall also include appropriations of retained earnings that have been transferred to share capital. When share capital is reduced or cancelled, this account shall be debited with the appropriate amount applicable to the particular series or class of shares involved. This account shall be subdivided in a manner that will show the total amount credited to this account with respect to each series or class of shares issued and outstanding and carrying different conditions. An appropriate record shall be maintained showing the total number of shares issued and outstanding for each series or class referred to in subsection (4). surplus arising from transactions relating to the company’s share capital; and capital contributions and donations from government and other sources. Representative List of Items of Contributed Surplus to be included. (See section 14 of these Regulations.) Premium received on the issuance of par value shares prior to December 15, 1975 (Canada Business Corporations Act, S.C. 1974-75-76, c. 33) or a prior date where a Company elected to be subject to the Act Proceeds of sale of donated shares Credits resulting from the redemption or conversion of shares at less than the amount recorded as share capital Other contributions made by shareholders in excess of par or stated value of shares The portion of proceeds from the issuance of no par value shares that has been properly allocated to this account Capital contributions in the form of subsidies, building sites, etc. This account shall include the balance, debit or credit, of the amounts included in the Retained Earnings accounts listed in Schedule III to these Regulations. This account shall be credited with the increase in value of fixed assets as a result of an appraisal, where the appraisal is associated with an actual purchase and sale of fixed assets, as in the acquisition of an affiliated company; a reorganization of the accounting company; or a substantial issue of securities, whether equity shares or otherwise. The use of this account and the disposition of any amounts included herein shall be subject to the prior approval of the Commission. the total par value of unmatured debt maturing more than one year from the date of the balance sheet, where such debt is issued and not retired or cancelled; and the total par value of similar unmatured debt of other companies, the payment of which debt has been assumed by the company. The amounts in this account shall be divided to show the par value of certificates or other evidences of long-term debt, pledged and unpledged, held in the company’s treasury by its agents or trustees or otherwise subject to its control; and certificates or other evidences of long-term debt issued and outstanding, and not held by the company, its agents or trustees, or subject to its control. The amounts included in this account shall be further divided to show the amount of each of the following classes of long-term debt: mortgage bonds — bonds secured by lien on physical property and not included in any other subdivisions of this account; collateral trust bonds — bonds and notes secured by a lien on securities or other negotiable paper, and stock trust certificates that are similar in character to collateral trust bonds; income bonds — bonds that are a lien on a company’s revenue alone, or bonds that, while being a lien on the company’s property and franchises, provide for payments of interest only if the interest is earned; convertible bonds — bonds that may be converted into capital stock of the company, according to the agreement under which they are issued; and miscellaneous obligations — all other long-term debt obligations maturing more than one year from the date of the balance sheet. Each of the classes listed in subsection (3) shall be divided into subclasses according to differences in security given therefor; rates of interest; interest dates; and dates of maturity. Long term debt securities are considered to be issued when they have been sold to a bona fide purchaser for valuable consideration and when the purchaser holds them free from all control by the accounting company. All long-term debt securities that are issued and not reacquired and are held by or for the company are considered to be outstanding. Long-term debt that is to be repaid in a foreign currency shall be included in this account in accordance with generally accepted accounting practice. This account shall include the par value of long-term debt actually issued or assumed by a company and reacquired by it and not retired or cancelled, but shall not include long-term debt held in sinking funds or miscellaneous special funds. (See section 74 of these Regulations) Where the long-term debt referred to in subsection (1) is to be repaid in a foreign currency, for purposes of that subsection par value means the par value in the foreign currency converted to the Canadian dollar equivalent. This account shall show total par value unpledged; and total par value pledged. This account shall include all amounts owed to affiliated companies and not subject to settlement within one year and, without limiting the generality of the foregoing, shall include the par value of bonds, debentures and long-term notes payable and issued to affiliated companies; the par value of non-negotiable notes issued to affiliated companies; the par value of matured long-term bonds, debentures or notes payable where such bonds, debentures or notes of the company are held by affiliated companies, where there is no agreement for an extension as to time of payment but the collection of the principal is not enforced; credit balances in open accounts with affiliated companies, other than credit balances in current accounts; and interest accrued on any of the items referred to in paragraphs (a) to (d) when the interest is not subject to current settlement. Separate subaccounts shall be kept for each of the items listed in subsection (1). (See section 80 of these Regulations) This account shall include amounts payable more than one year from the date of the balance sheet where such amounts have not been provided for elsewhere and loans payable authorized by subsection 76(2) to be included in this account. This account shall include the balances representing a company’s outstanding obligations in the form of loans and notes payable or other similar evidences of indebtedness payable on demand or within a time not exceeding one year from the date of the balance sheet. This account shall be maintained in such form as to show separately the amounts of indebtedness secured by collateral. the amount of vouchers and payrolls or accounts unpaid on the date of the balance sheet; outstanding drafts drawn by agents; unpaid rents under leases or agreements; taxes collected from employees and others for the account of taxing agencies; and other items of the nature of demand liabilities not included in account 250 (Loans and Notes Payable), account 252 (Accounts Payable — Affiliated Companies), account 257 (Interest Payable and Accrued) and account 259 (Other Current Liabilities). This account shall also include a company’s estimated accrued liabilities with respect to accounts payable. (See sections 77 and 78 of these Regulations) A company’s estimates of liabilities for injuries to persons and for loss and damage claims shall not be included in this account but shall be credited to account 259 (Other Current Liabilities) or account 279 (Other Deferred Credits), as applicable. This account shall include all amounts owed to affiliated companies and subject to settlement within one year from the date of the balance sheet and, without limiting the generality of the foregoing, shall include notes; credit balances and open accounts; long-term debt due within one year; joint revenue payable; interest on any of the above; dividends; and miscellaneous amounts. This account shall include dividends declared on capital stock and not yet paid by a company other than dividends payable to affiliated companies and recorded in account 252. This account shall include all amounts deposited with a company by customers as security for payment of debts. This account shall be credited with the accruals of all taxes that are currently payable to federal, provincial or other governmental authorities. The accruals referred to in subsection (1) may be based upon estimates, provided that the estimates shall be adjusted to reflect in this account at all times the estimates of the company as to its unpaid liability for each of the several classes of taxes that has not been finally settled. All tax payments for which accruals have been made shall be debited to this account. The records supporting the entries in this account shall be kept to show separately, by classes of taxes, the amount of the tax accruals for the current year and the adjustments of accruals for prior years. This account shall be credited with interest due or accrued on notes payable, bank overdrafts and loans, and long-term debt and other obligations, other than such interest payable to affiliated companies.

the amount of long-term debt and any premiums thereon that will become payable within one year from the date of the balance sheet, the amount of matured and unpaid long-term debt and any premiums thereon for which there has been no specific agreement for extension of the time of payment, and the amount of long-term debt called for redemption but not presented to the company or its agents for payment, other than long-term debt payable to affiliated companies. This account shall include all contractor’s hold backs and all other current liabilities not provided for elsewhere, including the company’s estimate of current liabilities in respect of injuries to persons and loss and damage claims. This account shall include the unamortized premiums received from the issuance of long-term debt and shall include the total of the credit balances in the subaccounts maintained for each series of each class of long-term debt in accordance with section 71. the undistributed debit or credit resulting from a company following a method of equalizing its gas cost through the year because of seasonal variations in unit gas prices; and the ledger balances representing reserves created by debits to operations for maintenance expenses in accordance with section 47. Where a company does not follow the taxes payable basis of accounting for income taxes, this account shall include the amounts by which a company’s provision for income taxes for a particular year differs from the amount of income taxes payable for that year. This account shall include non-refundable contributions or grants in cash, services or property from governments or government agencies, corporations, individuals and others for contributions in aid of construction. Amounts included in this account shall not be transferred to any other account without the prior approval of the Commission. This account shall be maintained in a manner that will furnish complete information respecting the purpose of each contribution or grant. credit items that cannot be disposed of until further information is received; variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by a company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Commission to facilitate consideration of disposition at a later date; material gain on extraordinary retirement that is authorized by the Commission to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3) which gain shall be amortized as directed by the Commission; and credit items of a deferred nature, not provided for elsewhere, that are to be amortized over future periods. This account shall include the credit balances representing insurance appropriations concurrently debited to expenses to cover self-carried risks on fire, fidelity, vehicle, boiler, casualty, burglary, other insurance, and re-insurance recoveries from insurance companies. (See sections 61 and 62 of these Regulations) To the extent that a loss or damage sustained is covered by this account, the amount of the loss or damage shall be debited to this account. Separate subaccounts shall be kept for each kind of insurance reserve created. the credit balances representing the liability of the company for amounts contributed by employees and by the company through debits to expenses or such other accounts as are approved by the Commission for pensions, accident and death benefits, savings, relief, and hospital or other provident purposes, whether or not a special fund has been established to meet such liabilities (See section 62 and account 123 (Miscellaneous Special Funds) of these Regulations); and the credit balances representing the liability of the company for amounts provided by debits to expenses in respect of deferred compensation under an employees’ profit-sharing plan. Separate subaccounts shall be kept for each kind of appropriation created pursuant to subsection (1). Disbursements shall be debited to this account and any excess of such disbursements over the amounts appropriated shall be transferred to account 724 (Injuries and Damages), or to account 725 (Employee Benefits), as applicable. Current amounts payable relative to funded welfare, pension and other plans with insurance companies or trustees shall be transferred to account 251 (Accounts Payable and Accrued). This account shall be credited with all appropriations or allowances that may not be included in account 145 (Allowance for Doubtful Accounts), account 290 (Insurance Appropriations), account 291 (Welfare and Pension Appropriations) or account 126 (Allowance for Loss in Value of Investments), including estimated liabilities for injuries to persons and loss and damage claims not includible in account 259 (Other Current Liabilities). Operating Revenue Operating Expense Maintenance Expense Depreciation Amortization Municipal and Other Taxes Incomes Taxes Revenue from Gas Plant Leased to Others Rent for Gas Plant Leased from Others Revenue from Other Plant Expenses of Other Plant Non-Operating Revenue Non-Operating Expense Income from Investments Income from Affiliated Companies Income from Sinking and Other Funds Gain on Foreign Exchange Other Income Interest on Long-Term Debt Amortization of Debt Discount, Premium and Expense Interest on Amounts Due Affiliated Companies Other Interest Allowance For Funds Used During Construction (Credit) Loss on Foreign Exchange Provision for Loss in Valuation of Investments Other Income Deductions Extraordinary Income Extraordinary Income Deductions The balance of all income accounts shall be closed into retained earnings account 350 (Balance Transferred from Income) at the end of each fiscal year. This account shall include the total revenues derived from operations recorded in the accounts set out in Schedule V to these Regulations. This account shall include the total expenses of operations recorded in the accounts set out in Schedule VI to these Regulations. This account shall include the total maintenance expenses recorded in the accounts set out in Schedule VII to these Regulations. This account shall include debits for the depreciation of plant included in account 100 (Gas Plant in Service); account 101 (Gas Plant Leased to Others); and account 102 (Gas Plant Held for Future Use). Subsidiary records shall be maintained to show separately the depreciation expense for each plant account or group of plant accounts that perform similar functions. (See sections 49 to 59 of these Regulations inclusive and the text of account 105) This account shall also include debits for the depreciation of Improvements to Facilities Leased from Others, where it is inappropriate to amortize the amounts of such improvements over the life of the lease by debit to account 304 (Amortization). (See text of account 107) This account shall include debits for the amortization of plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), and account 102 (Gas Plant Held for Future Use) when a change from depreciation accounting to amortization accounting has been approved by the Commission. (See section 59 of these Regulations) This account shall also include debits for the amortization of amounts recorded in account 171 (Extraordinary Plant Losses), when approval or direction of the Commission has been received. (See text of account 171) This account shall also include debits for the amortization of Improvements to Facilities Leased from Others. (See text of account 107) Subsidiary records shall be maintained to show separately the amortization expense for each plant account or group of plant accounts that perform similar functions. This account shall also include credits for the amortization of amounts recorded in account 278 (Contributions and Grants), when approval or direction of the Commission has been received. (See text of account 278) taxes levied by governments and municipalities relating to plant, operations and privileges, whether based upon valuation of the plant, quantity of gas transmitted, length of pipeline operated or owned, or other bases; instalment payments covering assessments by governmental authorities for public improvements, and the write-off of lump sum payments originally debited to account 176 (Public Improvements); and other taxes not provided for elsewhere. Taxes on new lines under construction or on plant acquired for the extension of existing lines or on additions or replacements before the facilities are opened for commercial operations or on plant acquired before it becomes available for service shall be debited to the appropriate gas plant accounts. Income Taxes This account shall include provision for federal, provincial or other government income taxes levied on the basis of a company’s operations for the fiscal period, except income taxes chargeable to account 353 (Income Tax Applicable to Retained Earnings Adjustments). current income taxes applicable to income before extraordinary items; current income taxes and reductions of current income taxes applicable to extraordinary items; and deferred income taxes. This account shall include revenues from gas plant that is included in account 101 (Gas Plant Leased to Others) and that constitutes a distinct operating unit or system leased by the company to others. This account shall include rent for gas plant that is leased by the company from others and that constitutes a distinct operating unit or system. This account shall include the total revenues from the operation of plant that is included in account 110 (Other Plant). Representative List of Items of Revenues from Other Plant to be included. (See section 14 of these Regulations) Revenue from commercial power plants Revenue from lands and buildings not used in gas operations Revenue from lands and plant acquired and held in anticipation of an indefinite future use Revenue from mineral and timber lands Expense of Other Plant all expenses, including depreciation but excluding income taxes, arising from the operation of other plant the cost of which is included in account 110 (Other Plant); and all expenses, other than depreciation, of gas plant leased to others as operating units or systems while the lessee has exclusive possession. Representative List of Items of Expense of Other Plant to be included. (See section 14 of these Regulations) Expense of commercial power plants Expense of lands and buildings not used in gas operations Expense of lands and plant acquired in anticipation of an indefinite future use Expense of mineral and timber lands This account shall include revenues that are from commercial activities carried on within the corporate structure of the company and that may not be included in account 300 (Operating Revenue). This account shall include expenses from commercial activities carried on within the corporate structure of the company that may not be included in account 301 (Operating Expense) or account 302 (Maintenance Expense). interest and dividends from investments recorded in account 121 (Other Investments) and account 132 (Temporary Cash Investments); interest on bank balances, open accounts, special deposits and other analogous items, where the interest is the property of the company; and where the amounts involved are not material, gains and losses on sale, or amounts required to provide allowances for the decrease in market value of temporary cash investments. (See sections 64 and 65 of these Regulations) At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in accounts 121 and 132. (See section 63 of these Regulations) This account shall include income from the investment of a company in shares, securities and other types of indebtedness that are issued or assumed by affiliated companies and in respect of which the income is the property of the accounting company, whether such shares, securities and other types of indebtedness are owned by the accounting company and held in its treasury or deposited in trust, or are otherwise controlled. (See section 80 of these Regulations) The amounts included in this account shall be divided to show separately the types of income as follows: dividends; interest; and other income. Income from affiliated companies shall not be credited to this account until such time as it is recorded on the books of the affiliated company. At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in account 120. (See section 63 of these Regulations) the income accrued on cash, securities and other assets, not including debt securities issued or assumed by the company, recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) (See section 62 of these Regulations); and immaterial gains realized and losses sustained in the sales of securities recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds). (See section 62 of these Regulations) At the option of the company, there may be included in this account the applicable portion of the discount or premium on any securities recorded in accounts 122 and 123. (See section 63 of these Regulations) This account shall include gains on foreign exchange during the fiscal period, including realized gains as well as gains owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies. gains realized from the sale of materials and supplies not purchased for resale; immaterial gains realized from reacquisition at less than net book value of the debt securities issued by the company; immaterial gains arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments); and all other income items not provided for elsewhere. This account shall include current accruals of interest on all classes of long-term debt included in account 220 (Long-Term Debt), account 249 (Other Long-Term Debt) and account 258 (Long-Term Debt Due Within One Year), less current accruals on the debt included in account 221 (Company Long-Term Debt Owned). This account shall be maintained to show separately the interest on each class of long-term debt. This account shall be debited or credited, as applicable, during each fiscal period, with the proportion of the discount, premium and expense on long-term debt obligations as may be applicable to the period. The proportion referred to in subsection (1) shall be determined in accordance with section 71, 72 or 73 as applicable. This account shall include current accruals of interest of all classes of debt included in account 248 (Advances from Affiliated Companies) or account 252 (Accounts Payable — Affiliated Companies). all interest except that chargeable to account 320 (Interest on Long Term Debt) or account 322 (Interest on Amounts Due Affiliated Companies); and all discounts, premiums and expenses on short term notes issued by the company and maturing in one year or less from the date of the balance sheet. Allowance for Funds Used During Construction (Credit) This account shall be credited with amounts concurrently debited to account 497 (Allowance for Funds Used During Construction). (See section 27 of these Regulations and account 497) This account shall include losses on foreign exchange during the fiscal period, including realized losses as well as losses owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies. This account shall be debited with amounts concurrently credited to account 126 (Allowance for Loss in Valuation of Investments), in respect of immaterial reductions in the value of investments carried in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments). (See text of account 126 and section 67 of these Regulations) This account shall also include a company’s share of the losses or subsequent adjustments thereof described in section 68, unless such losses or adjustments are material. immaterial losses through reacquisitions at greater than net book value of debt securities issued by the company; immaterial losses arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies), and account 121 (Other Investments); and all other income deductions not provided for elsewhere. Unless otherwise directed by the Commission in particular cases, a company shall include in this account all material gains constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations.) Representative List of Items of Extraordinary Income to be included. (See section 14 of these Regulations) Gain on extraordinary retirement of depreciable plant (See section 40) Gain on sale or retirement of depreciable Other Plant (See section 43) Gain on sale or retirement of land (See section 44) Gain on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62) Gain on sale of Temporary Cash Investments (See section 64) Gain on sale of Investments in Affiliated Companies or Other Investments (See section 66) Adjustment to account 126 as described in subsection 68(2) of these Regulations Gain on redemption of long-term debt (See section 73) Gain on reacquisition of long-term debt (See section 74) A company shall include in this account all material losses constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations) Representative list of Items of extraordinary deductions to be included in the account. (See section 14 of these Regulations) Loss on an extraordinary retirement of depreciable plant (See section 40) Loss on sale or retirement of depreciable Other Plant (See section 43) Loss on sale or retirement of land (See section 44) Loss on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62) Loss on sale of Temporary Cash Investments (See section 64) Reduction in the value of Temporary Cash Investments (See section 65) Loss on sale of Investments in Affiliated Companies or Other Investments (See section 66) Reduction in the value of Investments in Affiliated Companies or Other Investments (See section 67) Loss on redemption of long-term debt (See section 73) Loss on reacquisition of long-term debt (See section 74) Preliminary Survey and Investigation Charges for projects not proceeded with (See text of account 172) Balance Transferred from Income Prior Period Adjustments Miscellaneous Retained Earnings Adjustments Income Tax Applicable to Retained Earnings Adjustments Dividend Appropriations The balance in all retained earnings accounts shall be closed to balance sheet account 212 (Retained Earnings) at the end of such calendar year or other fiscal year as is approved by the Commission for the closing of the company’s accounts. This account shall show the debit or credit balances brought forward from the income accounts for the fiscal year. Unless otherwise directed by the Commission, a company shall include in this account all material adjustments to the income of prior fiscal years when such adjustments have all four of the characteristics set out in subsection 78(1). Representative List of Items of Prior Period Adjustments to be included. (See section 14 of these Regulations) Adjustments or settlements of income taxes Adjustments or settlements of claims resulting from litigation This account shall include adjustments to retained earnings not provided for elsewhere. A company shall not use this account without obtaining the prior approval of the Commission. This account shall include the estimated federal, provincial or other government income taxes (debit or credit) assignable to the aggregate of items, of both taxable income and deductions from taxable income, that, for accounting purposes, are recorded in retaining earnings accounts. This account shall include the amount of dividends declared out of retained earnings during the year on all classes of outstanding shares. Subsidiary records shall be maintained showing separately the dividends declared on each class of shares. When dividends are paid in other than money, complete details of each transaction shall be maintained. Dividends declared out of contributed surplus shall be debited to account 210 (Contributed Surplus). Franchises and Consents Other Intangible Plant Land Land Rights Compressor Structures and Improvements Measuring and Regulating Structures and Improvements Other Structures and Improvements Gathering Lines Compressor Equipment Measuring and Regulating Equipment Purification Equipment Other Gathering Equipment Structures and Improvements Extraction Equipment Products Storage Equipment Pipelines Other Products Extraction Equipment Wells Well Equipment Field Lines Base Pressure Gas Other Underground Storage Equipment Mains Communication Structures and Equipment Other Transmission Equipment Office Furniture and Equipment Transportation Equipment Heavy Work Equipment Tools and Work Equipment Communications Structures and Equipment Other Equipment Unclassified Plant Allowance for Funds During Construction Overhead Charged to Construction The total of the balances in the plant accounts shall equal the total of the balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvements to Facilities Leased from Others). Where the same account title is used for more than one group of plant accounts, the account text instructions are given in detail for the accounts under the gathering plant group. amounts paid to federal, provincial or other governmental authorities in consideration for franchises, consents or certificates running in perpetuity or for a specified term of more than one year; and expenses incidental to procuring the franchises, consents or certificates of permission and approval. Where a franchise, consent or certificate is acquired by assignment, the amount paid to the assignor shall be debited to this account. Where a franchise, consent or certificate is retired or expires, the book cost shall be credited to this account. Where a franchise, consent or certificate referred to in subsection (3) is depreciable, the book cost shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. (See section 40 and subsection 51(2) of these Regulations) Where the franchise, consent or certificate referred to in subsection (3) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Regulator and, unless otherwise directed by the Commission, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Where the franchise, consent or certificate referred to in subsection (3) is not depreciable and the gain or loss from the retirement or expiration is not material, the gain or loss shall be transferred to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable. Assessments with respect to franchises, consents or certificates shall not be included in this account. This account shall include the cost of patent rights, allowances, privileges and other intangible plant necessary or valuable in the operation of a company’s gas pipeline service and not specifically provided for elsewhere. When any item included in this account is retired or expires, the cost shall be credited to this account. Where the item referred to in subsection (2) is depreciable, the cost shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. (See section 40 and subsection 51(2) of these Regulations) Where the item referred to in subsection (2) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Regulator and, unless otherwise directed by the Commission, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable. Where the item referred to in subsection (2) is not depreciable and the gain or loss from the retirement or expiration is not material, the gain or loss shall be transferred to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable. the cost of land owned in fee simple and used for the construction and operation of pipelines; and the costs of removing the property of others from the land and of relocating such property. The cost of land not used in gas pipeline service or for which there is no definite plan for use in pipeline service shall be debited to account 110 (Other Plant). Where the purchase of land for gas pipeline service requires the purchase of more land than is needed for such purposes, the charge to the specific land account shall be based upon the cost of the land purchased, less the fair market value of that portion of land that may not be included in account 100, 101 or 102. The portion of the cost of land referred to in subsection (3) that may not be included in account 100, 101 or 102 shall be debited to account 110 (Other Plant). The cost of acquiring options to purchase land for use in contemplated projects shall be debited to account 172 (Preliminary Survey and Investigation Charges) pending a determination as to whether or not to proceed with such projects. The costs of acquiring options to purchase land for use in current construction projects shall be debited to account 115 (Gas Plant Under Construction). Net proceeds from the sale of timber, minerals or improvements that were part of the land cost shall be credited to this account. Any excess of the net proceeds referred to in subsection (7) over the original cost of the timber, minerals or improvements included in the land cost shall be credited to account 319 (Other Income) if the excess is not material or, if material, to account 331 (Extraordinary Income) after Commission approval has been obtained. When land is acquired together with buildings, the cost shall be fairly apportioned between land and buildings and accounted for accordingly unless the plan of acquisition contemplates the immediate removal of the buildings, in which case the entire cost shall be debited to this account and any salvage value from the buildings shall be credited to this account. Gains or losses arising from the sale of land shall be debited or credited to the appropriate income account. (See section 44 of these Regulations) The cost of clearing, levelling or grading land, both before and after the construction of facilities thereon, shall, if directly related to such facilities, be included in the plant accounts provided for the cost of the facilities constructed. Representative List of Items of Land to be included. (See section 14 of these Regulations) Abstract Appraisal Arbitrator in expropriation cases Commissions paid to others Compensation and expenses of outside land agents when specifically assigned to acquisition of land, but not arbitrary apportionments for incidental services Ditch for waterway when part of consideration Engineering and survey expenses in connection with purchase of land in fee simple Expropriation expenses, including court costs and special counsel fees Judgments and decreed costs to clear or defend titles Legal and notarial fees Plans Premium on expropriation bonds Registering, filing and depositing title documents and plans Payments for release and discharge of encumbrances and charges against the land Payments for release from restrictive provisions of original title documents and for other rights Removal and relocation of buildings and other structures not purchased Rent of land when part of consideration for purchase Taxes accrued and assumed at time of purchase This account shall include amounts paid for land rights or easements and the cost incurred in connection with obtaining those land rights. Temporary land rights or easements used for construction purposes only and the cost of clearing, levelling or grading land for which the company has acquired land rights both before and after the construction of facilities thereon, but directly related to such facilities, shall be included in the plant account provided for the facilities constructed. Net proceeds from the sale of timber, minerals or improvements that were part of the cost of land rights shall be credited to this account. Any excess of the net proceeds referred to in subsection (3) over the original cost of the timber, minerals or improvements included in the cost of the land rights shall be credited to account 319 (Other Income) if the excess is not material or, if material, to account 331 (Extraordinary Income) after Commission approval has been obtained. Representative List of Items of Land Rights to be included. (See section 14 of these Regulations) Abstract expense Engineering and survey expenses in connection with expropriation Expropriation expense Fees and costs of registering, filing and depositing title documents and plans Costs of obtaining judgments and decrees relating to the clearing or defending of titles Outside land right agents, compensation Plats Premiums on expropriation bonds Payments for release and discharge of encumbrances and charges against the lands affected by the land rights Payments for tenants’ consents, options and easements Servitudes the cost of structures and related facilities used in connection with the compressor function of gas gathering operations; and where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities. Representative List of Items of Compressor Structures and Improvements to be included. (See section 14 of these Regulations) Boiler Building Fencing Heating system Hoisting equipment, attached to building Lighting system Lightning arrestor Loading dock Outdoor steel walkways and steps Parking bumper Pipe rack Plumbing system Protection system Reservoir Road Sewage system Sprinkler system Vehicular bridge Ventilating system Water line Water well the cost of structures and related facilities used in connection with the measuring and regulating function of gas gathering operations; and Representative List of Items of Measuring and Regulating Structures and Improvements to be included. (See section 14 of these Regulations) the cost of structures and related facilities used in gas gathering operations not provided for elsewhere; where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities; and the cost of improvements to non-owned property. Representative List of Items of Other Structures and Improvements to be included. (See section 14 of these Regulations) Fence foundations the cost of installed line pipe and line pipe fittings laid in the construction of gathering lines between the delivery meters of separate gas fields and the meters recording delivery to the transmission system; and the cost of re-opening the trench and back-filling subsequent to original construction for the purpose of applying the original protection and casing. Representative List of Items of Gathering Lines to be included. (See section 14 of these Regulations) Anchor block Blow down tank Cathodic protection device Clearing and grading Concrete supports Damage to property of others Drip assembly Equipment foundation Manifold fitting Pipe casing Pipe fitting Pipeline Protective coating River crossing header River weight Saddle Structural and equipment support Surveying Valve Vent This account shall include the cost of compressors and associated equipment used in connection with gas gathering operations. Representative List of Items of Compressor Equipment to be included. (See section 14 of these Regulations) Air cleaner Air compressor Atmospheric type jacket water cooler Auxiliary engine generator Base volume index Blower Cathodic ground bed Circuit breaker and switch Compressor Conductor Conduit Controller Control panel Dehydrator Drip Duct Electrical fitting Filter Fire fighting equipment Garage equipment Gauge Gauge board panel Heat exchanger Laboratory equipment Line casing Line pole Line wire Manhole Manometer Meter body Meter station header Meter station recorder Meter tube Oil reclaimer Piping Portable meter station Protective coating and wrap Pulsation dampener Pump Rectifier Regulator Relay cabinet Residence equipment Scrubber Shop equipment Signal Silencer Station positive gas meter Storage battery Stores equipment Support Switchboard Tank Telemetering equipment Transformer Trap Valve box Water treating equipment This account shall include the cost of meters, gauges and other equipment used in measuring and regulating gas before entry into the transmission system. Representative List of Items of Measuring and Regulating Equipment to be included. (See section 14 of these Regulations) Battery Chemical Circuit breaker Governor Header Meter recorder Meter tube and fitting Odorizing equipment Panel Positive meter Remote control Switch Thermometer Tubing Valve operator This account shall include the cost of condensers, dehydrators, pumps and other apparatus used for the removal of impurities from gas. Representative List of Items of Purification Equipment to be included. (See section 14 of these Regulations) Condenser Cooler Injection units — installed Piping, from inlet valve of first piece of apparatus to outlet valve of final piece of apparatus (or, in building, from entrance to building to exit from building) Platform Railing Stair Sulphur removal apparatus Washer cooler Water supply system This acount shall include the cost of equipment used in gas gathering operations not provided for elsewhere. For the text of this account, see account 410. For the text of this account, see account 411. Products Extraction Plant Structures and Improvements the cost of structures and related facilities used in connection with the products extraction function of gas operations; and where directly related to the structure, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities. Representative List of Items of Products Extraction Plant to be included. (See section 14 of these Regulations) Details are the same as for account 412(2). This account shall include the cost of equipment used for the extraction from natural gas of gasoline, butane, propane or other saleable products and for the refining of such products. Representative List of Items of Extraction Equipment to be included. (See section 14 of these Regulations) Absorber Air Compressor Boiler setting Compressed air system Control apparatus Cooling tower Crane Dephlegmator Dyepot Electrical system Foundation Fractionating tower Fuel regulating and measuring equipment Gasoline blending equipment Generator Loading rack Lubricating oil system Power Line Reabsorber Stabilizing column Still Yard lighting system This account shall include the cost installed of storage tanks and associated equipment used in the storing, prior to sale, of gasoline, butane, propane and other saleable products extracted from natural gas. Representative List of Items of Products Storage Equipment to be included. (See section 14 of these Regulations) Instrument Storage tank This account shall include the cost of pipelines used in connection with the processing of natural gas for the removal of gasoline, butane, propane or other saleable products, exclusive of piping that may be included in account 423 (Extraction Equipment) and account 428 (Purification Equipment). Representative List of Items of Pipelines to be included. (See section 14 of these Regulations) Gas line off-site relating solely to extraction operations Gathering line drip Loading line connecting with remote off-site loading rack or storage facilities Pump and driving unit This account shall include the cost of compressor and associated equipment used in connection with the receipt, processing and return of gas processed for the removal of gasoline, butane, propane or other saleable products. Details are the same as for account 416(2). This account shall include the cost of meters, gauges and other equipment used in measuring or regulating gas received or returned from processing for the removal of gasoline, butane, propane or other saleable products. Details are the same as for account 417(2). For the text of this account, see account 418. This account shall include the cost of equipment used in processing gas and refining gasoline, butane, propane and other saleable products extracted from gas, not provided for elsewhere. Underground Storage Plant Structures and Improvements the cost of structures and related facilities used in connection with the underground storage function of gas operations; and Representative Lists of Items of Underground Storage Plant Structures and Improvements to be included. (See section 14 of these Regulations) This account shall include the cost of wells used for injection and withdrawal of gas from underground storage projects. Representative List of Items of Wells to be included. (See section 14 of these Regulations) Clearing well site Drilling Drive pipe Fuel Hauling, erecting, dismantling and removing boiler, portable engine, derrick, ring and other equipment used in drilling Power Rent of drilling equipment Water used in drilling, obtained either by drilling wells, piping from stream, or by purchase This account shall include the cost of equipment, in or at wells, used for injection and withdrawal of gas from underground storage. Representative List of Items of Well Equipment to be included. (See section 14 of these Regulations) Bailing equipment Battery equipment Boiler and drive permanently connected Bradenhead Casing Casinghead Derrick Fence, when solely an enclosure for equipment Packing Separator Tank, oil or water, etc. This account shall include the costs of installed pipelines used in conveying gas from the point of connection with gathering or transmission lines to underground storage wells and from underground storage wells to the point where the gas enters the transmission system. Representative List of Items of Field Lines to be included. (See section 14 of these Regulations) Details are the same as for account 415(2). This account shall include the cost of compressor equipment used to deliver gas to underground storage or to withdraw gas from underground storage for delivery to the transmission system. This account shall include the cost of meters, gauges and other equipment used in measuring or regulating deliveries of gas to underground storage and withdrawals of gas from underground storage. This account shall include gas in underground storage that is required as a base pressure for the operation of underground storage areas, valued at average cost on a consistent basis. (See account 152, Gas Stored Underground — Available for Sale) This account shall include the cost of equipment used in connection with underground storage of gas and not provided for elsewhere in these accounts. the cost of structures and related facilities used in connection with the compressor function of gas transmission operations; and the cost of structures and related facilities used in connection with the measuring and regulating function of gas transmission operations; and where directly related to the structures, facilities or functions referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities. Details are the same as for account 413(2). the cost of structures and related facilities used in gas transmission operations not provided for elsewhere; Details are the same as for account 414(2). the cost of installed line pipe and line pipe fittings laid in the construction of gas transmission lines between the discharge valve of a station and the suction valve of the next station, including pipe from receiving meters to delivery meters; and the cost of re-opening the trench and back-filling, subsequent to the original construction, for the purpose of applying the original protection and casing. Representative List of Items of Mains to be included. (See section 14 of these Regulations) This account shall include the cost of compressors and associated equipment used in connection with gas transmission operations. This account shall include the cost of meters, gauges and other equipment used in measuring or regulating gas in connection with gas transmission operations. This account shall include the cost of telephone, telegraph, radio and other communication structures and equipment used wholly or predominantly in connection with gas transmission operations. Representative List of Items of Communication Structures and Equipment to be included. (See section 14 of these Regulations) Aerial attachment Brace Bracket Cable and wire Cable box and appurtenance Conduit and appurtenance Connecting wire Current controlling instrument Cross arm and cross arm bolt Electric generator and motor Electric meter Engine stationary Fuse and mechanical protector Guy, stub and anchor Guy rod and wire Insulator and pin Rheostat Pole Sending and receiving instrument Submarine cable and connection Telephone pole box Testing outfit Tower Underground cable and connection Aerial or antenna and attachment Control unit Power, generating, converting or supply equipment Radar console and associated equipment Radio tower Specialized testing and repair equipment Transmitter and receiver including mobile unit This account shall include the cost of equipment used in gas transmission operations and not provided for elsewhere. the cost of structures and related facilities used in gas pipeline operations and not provided for in other structures and improvements accounts; Representative List of Items of Structures and Improvements to be included. (See section 14 of these Regulations) This account shall include the cost of office equipment, furniture and fixtures, when not built in or permanently attached to buildings. Representative List of Items of Office Furniture and Equipment to be included. (See section 14 of these Regulations) Accounting machine Adding machine Air conditioner Calculating machine Carpet Chair Clock Comptometer Computer equipment Desk Dictating machine Duplicating machine Filing cabinet Humidifier Integrator Lamp Library Locker Photographic equipment Projection equipment Rug Safe Space heater Table Typewriter Water cooler This account shall include the cost of transportation equipment used in gas pipeline operations. Representative List of Items of Transportation Equipment to be included. (See section 14 of these Regulations) Aircraft Aircraft engine Aircraft float Aircraft wheel Automobile Barge Bicycle Electric vehicle Helicopter Motor boat Motorcycle Pickup Snow track vehicle Station wagon Tractor Truck Truck trailer This account shall include the cost of major items of movable equipment for use in operations, construction or maintenance of the gas pipeline system. Representative List of Items of Heavy Work Equipment to be included. (See section 14 of these Regulations) Boring machine Bulldozer Concrete mixer and distributor Ditching machine Drag Line Heating kettle Hoist Pipe cleaning machine Pipe straightening machine Power shovel Tamping and backfilling machine Trenching machine Welding machine the cost of tools and other items of equipment that are used in the construction, operation or maintenance of the gas pipeline system and that are not included in account 485 (Heavy Work Equipment); the cost of garage equipment; and the cost of large equipment of a non-movable nature. Representative List of Items of Tools and Work Equipment to be included. (See section 14 of these Regulations) Air drill Alcohol injector Anvil Barometer Battery Charger Bevelling machine Blasting machine Calorimeter Corrosion prevention equipment Cutter Detector Dew point tester Dog house Drilling machine Engine Forge Gascope Grinder Greasing tools and equipment Gun Hand truck Lathe Lawn mower Lifting magnet Milling machine Motor Pipe coating tester Pipe cutting and threading machine Pipe locator Pipe pusher Pipe threader Planer Pneumatic tool Saw Surveying and levelling equipment Tool cabinet Tool kit Tool rack Vise Wheelbarrow Winch Wrench Work bench This account shall include the cost of telegraph, telephone, radio and other communication structures and equipment used wholly or predominantly in the general operations of the company. Details are the same as for account 468(2). This account shall include the cost of equipment used in gas pipeline operations not provided for elsewhere. This account shall include the cost of gas plant in service pending analyses and distribution to the appropriate plant account. Allowance for Funds Used During Construction A company shall not, without the approval of the Commission, charge an allowance for funds used during construction (in this section referred to as an “allowance”). The rate used to determine the amount of an allowance shall be based on a reasonable allowance for the use of funds expended during the construction period, whether or not such funds have been borrowed. Where an allowance is capitalized, the relevant amounts shall be debited to this account and concurrently credited to account 324 (Allowance for Funds Used During Construction (Credit)). An allowance capitalized prior to the coming into force of these Regulations shall be included in this account, except where it has been prorated over the appropriate plant accounts. A company may, at its option, close out this account by prorating the allowance to the plant accounts (See section 27 of these Regulations). This account shall include that portion of a company’s overhead expenditure that is attributable to the acquisition of plant, such portion being calculated on the basis of actual costs equitably allocated to each job or unit. A company may, at its option, close out this account by prorating the amounts recorded therein to the appropriate plant account. (See section 26 of these Regulations) Canadian Sales Foreign Sales Other Sales Sales of Products Extracted from Gas Revenue from Natural Gas Processed by Others Transportation and Storage of Gas of Others Rent from Gas Plant Miscellaneous Operating Revenue The total of the balances in the operating revenue accounts shall be included in income account 300 (Operating Revenue). This account shall include revenue from the sale of gas to utilities and other companies domiciled in Canada This account shall include revenue from the sale of gas to utilities and other companies domiciled outside Canada. This account shall include revenue from the sale of gas not provided for elsewhere.

This account shall include revenues from the sale of natural gas, gasoline, butane, propane and other products extracted from gas. natural gasoline sales; butane sales; propane sales; and other extracted products sales. This account shall include the revenue derived from royalties and permits or from any other basis of settlement arising from permission granted to others for the right to remove products from natural gas. This account shall include the revenue from transporting and storing non-owned gas in the company’s system. This account shall include rent revenues from the use by others of assets included in account 100 (Gas Plant in Service). revenues earned in consideration of the performance of exchange gas services; and other miscellaneous operating revenue not provided for elsewhere. Supervision Gathering of Gas by Others Measuring and Regulating Purification Other Gathering Operations Extraction and Refining Gas Processing by Others Gas Purchases Exchange Gas Gas Withdrawn from Underground Storage Gas Delivered to Underground Storage (Credit) Gas used (Credit) Exploration and Development Gas Losses Field Line Other Underground Storage Operations Transportation of Gas by Others Communication Other Transmission Operations System Operation and Engineering Other General Operations General Operations Transferred (Credit) Administrative Expense Special Services Insurance Injuries and Damages Employee Benefits Other General Expense Administrative and General Expense Transferred (Credit) The total of the balances in the operating expense accounts is included in income account 301 (Operating Expenses). Where the same account title is used in more than one group of operating expense accounts, the account text instructions are given in detail for the accounts under the gathering group. This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of the gathering system facilities. Representative List of Items of Supervision to be included. (See section 14 of these Regulations) Salaries and wages of superintendents, engineers, clerks, stenographers and other field office employees Travelling, subsistence, automotive and incidental expenses of employees Office supplies and expenses such as stationery, postage, maps, telephone, telegraph, light, heat, water Rents, janitor services and supplies, maintenance of office buildings and equipment This account shall include the cost of gathering charges paid to others where the charges are separate and not included as part of the delivered price of gas. This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system pipeline facilities. Representative List of Items of Pipeline to be included. (See section 14 of these Regulations) Direct supervision Inspecting and lubricating valves, injectors, etc. Blowing and cleaning lines, drips, traps, injectors, etc., thawing freeze-ups Injection of kontol, methanol, glycol and other chemicals Reading and reporting line pressures, changing charts Stand-by time of crews, time spent fire fighting and for other local services Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow on right-of-way and access roads Patrolling lines Cleaning buildings and other structures Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, hand tools and general equipment Expenses such as the use of automotive trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employees travelling and subsistence, employee housing Gas used or lost in pipeline operations This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system compressor stations and facilities. Representative Lists of Items of Compressor to be included. (See section 14 of these Regulations) Operating, cleaning, lubricating engines, generators and other equipment Packing valves, changing gauge glasses, changing oil and air filter elements Reading metering instruments, changing charts Taking water samples, dew point readings, testing and recording Tending station grounds, removing snow Preparing logs and other clerical work Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, cleaning and washrooms supplies, first aid supplies, landscaping supplies, hand tools and equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, waters, telephone, telegraph, rents, employee travelling and subsistence, employee housing Gas used or lost in compressor operations This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system measuring and regulating stations and facilities. Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations) Operating, inspecting, testing, adjusting, cleaning and calibrating equipment Changing meters, orifice plates, clocks, etc. Recording pressures, reading meters, changing charts Taking gas samples, water samples, dew point readings, testing and recording Inspecting, cleaning and blowing drips, pits, sumps, etc. Preparing reports and other clerical work Supplies such as lubricants, wiping rags, charts, chemicals, pens, ink, mercury, light bulbs, cleaning and washroom supplies, first aid supplies, landscaping supplies and tools and general equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing. This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system purification facilities. Representative List of Items of Purification to be included. (See section 14 of these Regulations) Changing charts on fuel meters Emptying, cleaning and refilling purifier boxes Oiling dip-sheets of purifier covers Removing spent oxide to refuse piles Revivifying oxide Taking readings of inlet and outlet pressures and temperature Unloading and storing glycol Watching station and equipment Cutting grass and weeds, and minor grading around equipment and stations Hauling materials, supplies and tools, etc. Inspecting and testing equipment, not specifically to determine necessity for repairs or replacement of parts Lubricating equipment valves, etc. Operating and checking equipment, valve instruments, etc. Supplies such as liquid purifying supplies, wiping rags, charts, chemicals, light bulbs, cleaning and washroom supplies, first aid supplies, hand tools and equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing Gas used or lost in purification operations This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the gathering system facilities and that are not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of product extraction and refining facilities Details are the same as for account 610(2). This account shall include: the cost of labour, supplies and expenses incurred in the operation of products extraction and refining facilities; and direct supervision of specific activities such as power plant, extraction and refining units, laboratory and warehouse facilities. Representative List of Items of Extraction and Refining to be included. (See section 14 of these Regulations) Operating, cleaning, lubricating machinery, valves, gauges, instruments and other equipment Inspecting and testing instruments and other equipment Reading meters, gauges and other instruments, changing charts, gauge glasses Taking and testing water samples, gas samples and other similar laboratory services Tending plant grounds, removing snow Producing electricity, steam, pumping cooling water Preparing logs, reports and other data Supplies such as amine, dehydration agents, water treatment and other chemicals, absorption oil, lubricants, wiping rags, charts, light bulbs, gauge glasses, cleaning and washroom supplies, first aid supplies, landscaping supplies, gas used or lost in operations, hand tools and equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, power, water, telephone, telegraph, rents employee travelling and subsistence, employee housing. This account shall include the cost of gas shrinkage, gas consumed for fuel, royalties and other expenses in connection with the processing of gas of the company by others for extraction of saleable products. This account shall include the cost, at point of receipt by the company, of all gas purchased. Except in the case of minor transactions, this account shall include the debits or credits for the cost of gas in unbalanced exchange transactions with another party when the delivery or receipt of the gas is not completed during the accounting period. If revenue is earned in consideration of the performance of exchange services, it shall be recorded in account 579 (Miscellaneous Operating Revenues). This account shall include the cost of gas withdrawn from underground storage and such cost shall be concurrently credited to account 152 (Gas Stored Underground — Available for Sale). This account shall be credited with the cost of gas delivered to underground storage and such cost shall be concurrently debited to account 152 (Gas Stored Underground — Available for Sale). Gas Used (Credit) This account shall be credited with the cost of gas used for other than storage purposes and such cost shall be concurrently debited to operating expenses, construction or other accounts. gas used in construction; gas used in products extraction; and gas used in operations or for other purposes. This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of underground storage facilities. the cost of labour, supplies and expenses incurred in the investigation, exploration and development of underground projects that do not prove feasible; and the net cost of drilling non-operative wells within an existing storage project. Where the costs described in subsection (1) are material in relation to the net income of the year, the company may prepare and submit to the Commission, for its approval, an alternative method of accounting. This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system wells and facilities; and in the drilling of wells used for storage purposes. Testing, bailing, swabbing, blowing and gauging storage wells Paintings, signs Minor upkeep of well roads, fences Turning storage wells on and off Moving cleaning-out tools between locations Supplies such as gas, gasoline, oil used in pumping and bailing, lumber, nails, well swabs, chemicals, first aid supplies, hand tools and equipment This account shall include the amounts of inventory adjustments representing the cost of gas lost or unaccounted for in underground storage operations due to cumulative inaccuracies of gas measurement or other causes. Adjustments relating to prior years shall be accounted for in accordance with section 78. This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage field line and facilities. Representative List of Items of Field Line to be included. (See section 14 of these Regulations) Details are the same as for account 615(2). This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system compressor stations and facilities. Representative List of Items of Compressor to be included. (See section 14 of these Regulations) Details are the same as for account 616(2). This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system measuring and regulating facilities. Details are the same as for account 617(2). This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system purification facilities. Details are the same as for account 618(2). This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system facilities not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of transmission system facilities. This account shall include the cost of transportation charges paid to others where the charges are separate and not included as part of the delivery price of gas. This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the transmission communication system. Representative List of Items of Communication to be included. (See section 14 of these Regulations) Operating radio equipment, microwave equipment, power generators Inspecting, testing, cleaning and lubricating equipment Inspecting and cleaning buildings and other structures Refuelling fuel tanks at station sites Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow from access roads, station sites and structures Supplies such as lubricants, wiping rags, charts, chemicals, hand tools, testing and other general equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, first aid supplies, radio tubes and crystals, landscaping supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing Changing radio frequencies Transferring mobile radios between vehicles Changing locations of communication equipment not relocated in connection with maintenance or construction This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system pipeline and facilities. This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system compressor stations and facilities. This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system measuring and regulating stations and facilities. This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the transmission system facilities and that are not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the general communicating system. Operating radio equipment, microwave equipment and power generators Changing locations of communication equipment not in connection with maintenance or construction This account shall include the cost of labour, supplies and expenses incurred at the general offices of the company for the operation and engineering of the pipeline system. Representative List of Items of System Operation and Engineering to be included. (See section 14 of these Regulations) Salaries and wages of superintendents, engineers, clerks, stenographers and other employees of the general operating and engineering departments Office supplies and expenses such as stationery, printing, postage, maps, drawings, telephone, telegraph, light, heat, water Rents, janitor services and supplies, maintenance of office building and office equipment This account shall include the cost of labour, supplies and expenses that are incurred in the general operation of the pipeline system facilities and that are not provided for elsewhere. This account shall be credited with the costs of general operations transferred to other accounts, such as costs transferred to overhead charged to construction. This account shall include the cost of salaries, supplies and expenses incurred in the general administration of the company where such costs are assignable to specific executive, administrative and general departments and are not chargeable to any other of the operating service functions listed in paragraphs 12(4) (a) to (f) inclusive. Representative List of Items of Administrative Expense to be included. (See section 14 of these Regulations) Salaries and wages of officers, executives and other employees Expenses of officers, executives and other employees such as travelling and subsistence, automotive, club and professional dues and expenses, and other incidental expenses This account shall include the fees and expenses of professional consultants and others for general services not applicable to any other particular operating functions. (See subsection 12(3) of these Regulations) Representative List of Items of Special Services to be included. (See section 14 of these Regulations) Fees and expenses of auditors, accountants, appraisers, engineering consultants, management consultants, legal consultants, public relations and labour consultants Fees and expenses paid under contracts for general management services Pay and expenses of persons engaged for a special administrative or general purpose where the person so engaged is not considered an employee of the company This account shall include the premium payable to insurance companies against any loss that may be sustained by the company. Where the company provides self-insurance, the reserve accruals shall be debited to this account and concurrently credited to account 290 (Insurance Reserves). (See sections 21 and 61 of these Regulations) Representative List of Items of Insurance to be included. (See section 14 of these Regulations) Fire, storm, burglary, boiler explosion, lightning, riot and fidelity Public liability, casualty, property damage and employee liability This account shall include all expenses, including losses not recovered by insurance but excluding law expenses incurred in the settlement of injury and damage claims. Representative List of Items of Injuries and Damages to be included. (See section 14 of these Regulations) Losses not covered by insurance on account of injuries to employees or others and damages to property of others Fees and expenses of claims of outside investigators and adjusters Payments of awards to claimants for court costs and legal services Medical and hospital services and other expenses of claimants payments or contributions to provide pension in respect of past or current services of employees; salaries or wages paid to employees disabled by injuries after the employees have been off duty for a reasonable length of time; amounts paid or contributed for the relief or welfare of employees, including any expenses related thereto; and premiums for group, life, medical, hospital, accident and sickness insurance. Where the company has instituted a pension fund, trust fund or welfare fund, the contributions shall be debited to this account and transferred to such pension, trust or welfare fund. Where the company does not institute a pension or trust fund but makes provision for a reserve against pension or welfare, the reserve accrual shall be debited to this account and concurrently credited to account 291 (Welfare and Pension Reserves). Representative List of Items of Employee Benefits to be included. (See section 14 of these Regulations) Payments to or on behalf of employees or pensioners, and to pension funds or to insurance companies for pension purposes Payments for group and life insurance premiums Payments for medical, hospital and other accident and sickness expenses, either directly or to insurance companies or others Payments to employees disabled by accident or sickness when off duty for a reasonable length of time Savings plan contributions Expenses in connection with educational, recreational and social activities for the benefit of employees This account shall include expenses that are incurred in connection with the general management of the company and that are not provided for elsewhere. Representative List of Items of Other General Expense to be included. (See section 14 of these Regulations) Industry association dues for company memberships Contributions for conventions and meetings of the industry Contributions to the experimental and research work of the industry, including scholarships and similar grants Trustee, registrar, and transfer agents, fees and expenses and other fiscal or corporate expenses Stockholders’ meeting expenses Publishing and printing annual reports Advertising and promotion Donations Bad Debts This account shall be credited with the amounts of administrative and general expenses that are allocated to other accounts or to overhead during construction. The method and basis of allocation referred to in subsection (1) shall be maintained in subsidiary records. Other Gathering Maintenance Other Underground Storage Maintenance Other Transmission Maintenance System Maintenance and Engineering Other General Maintenance General Maintenance Transferred (Credit) The total of the balances in the maintenance expense accounts shall be included in income account 302 (Maintenance Expenses). Where the same account title is used in more than one group of maintenance expense accounts, the account text instructions are given in detail for the accounts under the gathering group. This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the maintenance of gathering system facilities. Salaries and wages of superintendents, supervisors, engineers, clerks, stenographers and other office employees Office supplies and expenses, such as stationery, postage, drawings, telephone, telegraph, light, heat and water Rents, janitor services and supplies, repairs of buildings and equipment This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system pipeline and facilities. Repairs to and protection of right-of-way Repairs to access roads Repairs to fences, aerial markers, signs Repairs to river crossings, including bridges Repairs to valves, boxes, drips, scraper traps, chemical injectors, dehydrators, cathodic protection equipment Repairs to tools, testing equipment and other general equipment Repairs to buildings and other structures Repairs to pipe and fittings, renewing and replacing in kind less than a unit of line pipe Inspecting and testing after repairs have been made Repainting Materials and supplies used in repair work Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system compressor stations and facilities. Repairs to compressor engines, generators and other equipment Repairs to station grounds, buildings and other structures Repairs to fences and signs This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system measuring and regulating stations and facilities. Repairs to measuring, regulating and other equipment This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system purification facilities. Repairs to purification equipment Repairs to tools, testing equipment and other equipment This account shall include the cost of labour, supplies and expenses that are incurred in the maintenance of gas gathering system facilities and that are not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the maintenance of products extraction and refining facilities. Details are the same as for account 810(2). the cost of labour, supplies and expenses incurred in the maintenance of products extraction and refining facilities; and the cost of direct supervision of specific activities such as power plant, extraction and refining units, laboratory and warehouse facilities. Repairs to absorbers, stills, dehydrators, scrubbers, towers, condensers Repairs to boilers, generators, motors, pumps, valves Repairs to electrical, water and piping systems Repairs to overhead cranes, trolleys, hoists Repairs to plant grounds, fences, buildings, tanks and other structure Repairs to regulating and measurement instruments and equipment Repairs to tools, testing and other general equipment Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of materials, employee travelling and subsistence This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the maintenance of underground storage system facilities. This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system wells and facilities. Repairs to well head equipment, tools and testing equipment Repairs to access roads, fences and signs This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system field lines and facilities. Details are the same as for account 815(2). This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground system compressor stations and facilities. Details are the same as for account 816(2). This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground system measuring and regulating facilities. Details are the same as for account 817(2). This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system purification facilities. Details are the same as for account 818(2). Other Products Extraction Maintenance This account shall include the cost of labour, supplies and expenses that are incurred in the maintenance of underground storage system facilities and that are not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the maintenance of the transmission system facilities. This account shall include the cost of labour, supplies and expenses incurred in the maintenance of facilities used wholly or predominantly in connection with the transmission communication system. Repairs to radio and telephone equipment and to power lines Repairs to access roads, station grounds, buildings and other structures Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, employee travelling and subsistence This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system pipeline and facilities. This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system compressor stations and facilities. This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system measuring and regulating stations and facilities. This account shall include the costs of labour, supplies and expenses that are incurred in the maintenance of gas transmission system facilities and that are not provided for elsewhere. This account shall include the cost of labour, supplies and expenses incurred in the maintenance of facilities used wholly or predominantly in the general communication system. This account shall include the cost of labour, supplies and expenses incurred at the general offices of the company for the maintenance of the pipeline system. This account shall include the costs of labour, supplies and expenses that are incurred in the general maintenance of the pipeline system facilities and that are not provided for elsewhere. This account shall be credited with the cost of general maintenance transferred to other accounts, such as costs transferred to overhead charged to construction. Alliance Pipeline Ltd. Foothills Pipe Lines Ltd. Maritimes & Northeast Pipeline Management Ltd. NOVA Gas Transmission Ltd. TransCanada PipeLines Limited Trans Québec & Maritimes Pipeline Inc. Westcoast Energy Inc., carrying on business as Spectra Energy Transmission