Consensus Uniform System of Accounts (PDF) p Consensus Minimum Filing Requirements (PDF) p

Transcription

1 EUB Bulletin Consensus Documents referred to in Bulletin Consensus Uniform System of Accounts (PDF) p Consensus Minimum Filing Requirements (PDF) p Minimum Filing Requirements Index of Schedules (PDF) p OR Minimum Filing Requirements Index of Schedules (Excel)

2 May 8, 2006 UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE ALBERTA ENERGY AND UTILITIES BOARD ACT, THE ELECTRIC UTILITIES ACT, THE PUBLIC UTILITIES BOARD ACT and THE HYDRO & ELECTRIC ENERGY ACT OF ALBERTA AUTHORITY: Alberta Energy Utilities Board (AEUB or Board) EFFECTIVE DATE NOTE: To be determined This system of accounts supersedes the system of accounts utilized by licensees pursuant to the Alberta Energy and Utilities Board Act (EUB Act), the Electric Utilities Act (EUA), the Hydro & Electric Energy Act (HEEA) and the Public Utilities Board Act (PUB Act). Applicability of Uniform System of Accounts: Subject to any Board accounting requirements under the EUB Act, the EUA, the PUB Act, the HEEA, and as noted in General Instruction 1,this system of accounts is applicable in principle to all licensees engaged in the transmission (including any associated isolated generation) or distribution of electric energy, unless exempted by the AEUB, The specific quoted CICA Handbook sections provided in the Uniform System of Accounts are for reference purposes only. All relevant guidance in the CICA Handbook applies to each section and/or account of the Uniform System of Accounts. All licensees engaged in the transmission (including any associated isolated generation) or distribution of electric energy are advised to use the Uniform System of Accounts in conjunction with the CICA Handbook to determine appropriate accounting policies and practices giving due regard for the need to reflect Board Decisions or Orders arising from the regulatory process. If a licensee adopts an accounting policy or practice that is different than one prescribed by this Uniform System of Accounts, the licensee will disclose the accounting policy or practice as part of any tariff application to the Board. Any allocations of plant account balances required by each Utility to conform to the Uniform System of Accounts will be dealt with in the Utility s initial filing under this Uniform System of Accounts. Once the Utility s initial filing is approved by the Board, further submissions for review by the Board will not be required. When used in this Uniform System of Accounts: Definitions 1. Accounts means the accounts prescribed in this Uniform System of Accounts. 2. Actually Issued as applied to securities issued or assumed by the Utility means those securities which have been sold to bona fide purchasers for a valuable consideration, those securities issued as dividends on stock, or those securities which have been issued in accordance with contractual requirements directed to trustees of sinking funds. 3. Actually Outstanding, as applied to securities issued or assumed by the Utility means those securities which have been actually issued and are neither retired nor held by or for the Utility; provided, however, that securities held by trustees shall be considered as Actually Outstanding. 4. Amortization means the gradual extinguishment of an amount in an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized. 5. A. Associated (Affiliated) Company (ies) means the following with respect to any Utility: 1) an affiliate as defined in the Business Corporations Act (BCA) of Alberta, as amended from time to time; 2) a unit or division within the Utility; 3) any two body corporate that are affiliated with the same utility are deemed to affiliated with Date Created: August 11, 2005 Page 1 Date Updated: May 8, 2006

3 May 8, 2006 each other; 4) a partnership, joint venture, or person in which the Utility or any body corporate referred to in 3) above has a controlling interest or that is otherwise subject to the control of the Utility or such body corporate; 5) any partnership, joint venture or person deemed by the Alberta Energy Utilities Board to be an affiliate of the Utility for the purposes of the Uniform System of Accounts; and 6) an agent or other person acting on behalf of any body corporate, operating division, partnership, joint venture or person referred to in clause 3) and 5) above. B. Control, (including the terms Controlling, Controlled By, and Under Common Control With) means a corporate body is controlled within the meaning of section 2(2) of the BCA, as amended from time to time. 6. Board means the Alberta Energy and Utilities Board. 7. Book Cost means the amount at which property is recorded in the Accounts without deduction of related provisions for accrued Depreciation, Amortization, or for other purposes. 8. CICA Handbook means the handbook published by the Canadian Institute of Chartered Accountants, as amended from time to time. 9. Cost means the amount of money actually paid for property or services. When the consideration given is other than cash in a purchase and sale transaction, as distinguished from a transaction involving the issuance of common stock in a merger, the value of such consideration shall be determined on a cash basis. 10. Cost of Removal means the cost of demolishing, dismantling, tearing down or otherwise removing electric plant, including the cost of transportation and handling incidental thereto. It does not include the cost of removal activities associated with asset retirement obligations that are capitalized as part of the tangible long-lived assets that give rise to the obligation. (See General Instruction 21) 11. Debt Expense means all expenses in connection with the issuance and initial sale of evidences of debt, including but not limited to fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds and certificates of indebtedness; fees paid trustees; specific costs of obtaining governmental authority; fees for legal services; fees and commissions paid to underwriters, brokers, and salesmen for marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs. 12. Depreciation as applied to depreciable electric plant means the loss in service value not restored by current maintenance incurred in connection with the consumption or prospective retirement of electric plant in the course of service from causes which are known to be in current operation and against which the Utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand and requirements of public authorities. 13. Discount as applied to the securities issued or assumed by the Utility, means the excess of the par (stated value of no-par stocks) or face value of the securities plus interest or dividends accrued at the date of the sale over the cash value of the consideration received from their sale. 14. Investment Advances means advances, represented by notes or by book accounts only, with respect to which it is mutually agreed or intended between the creditor and debtor that they shall be settled by the issuance of securities or shall not be subject to current settlement. 15. Lease Capital means a lease of property used in utility or non-utility operations, per CICA Handbook Section 3065 definitions. 16. Lease operating means a lease of property used in utility or non-utility operations, per CICA Handbook Section 3065 definitions. Date Created: August 11, 2005 Page 2 Date Updated: May 8, 2006

4 May 8, Licensee means any Utility, licensed under the provisions of the Alberta Electric Utilities Act and Hydro & Electric Energy Act, subject to the Board s accounting requirements under the terms of the license. 18. Net Salvage Value means the salvage value of property retired less the cost of removal. 19. Nominally Issued as applied to securities issued or assumed by the Utility, means those which have been signed, certified, or otherwise executed, and placed with the proper officer for sale and delivery, or pledged, or otherwise placed in some special fund of the Utility, but which have not been sold, or issued direct to trustees of sinking funds in accordance with contractual requirements. 20. Nominally Outstanding as applied to securities issued or assumed by the Utility, means those which, after being actually issued, have been reacquired by or for the Utility under circumstances which require them to be considered as held alive and not retired, provided, however, that securities held by trustees shall be considered as actually outstanding. 21. Original Cost as applied to electric plant, means the cost of such property to the person first devoting it to public service. 22. Person means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, or any organized group of persons, whether incorporated or not, or any receiver or trustee. 23. Premium as applied to securities issued or assumed by the Utility, means the excess of the cash value of the consideration received from their sale over the sum of their par (stated value of no-par stocks) or face value and interest or dividends accrued at the date of sale. 24. Province means a Province of Canada and any organized Territory of Canada. 25. Public Utility means any person who owns or operates electric facilities subject to the jurisdiction of the Board Regulatory Assets and Liabilities are assets and liabilities that result from rate actions of regulatory agencies. Regulatory assets and liabilities arise from specific revenues, expenses, gains, or losses that would have been included in net income determination in one period under the general requirements of the Uniform System of Accounts but for it being probable: A. that such items will be included in a different period(s) for purposes of developing the rates the Utility is authorized to charge for its utility services; or B. in the case of regulatory liabilities, that refund to customers, not provided for in other accounts, will be required. 27. Replacing or Replacement when not otherwise indicated in the context, means the construction or installation of electric plant in place of property retired, together with the removal of the property retired. 28. Research Development and Demonstration (RD&D) means expenditures incurred by a Public Utility and Licensees either directly or through another person or organization (such as a research institute, industry association, foundation, university, engineering company or similar contractor) in pursuing research, development, and demonstration activities as defined by the CICA Handbook Section 3450 and be treated for accounting purposes as prescribed therein. Generally RD&D expenditures would typically include the following: A. Research: 1) laboratory research aimed at discovery of new knowledge. 2) searching for applications of new research findings or other knowledge. 3) conceptual formulation and design of possible product or process alternatives. B. Development: 1) testing in search for, or evaluation of, product or process alternatives. Date Created: August 11, 2005 Page 3 Date Updated: May 8, 2006

5 May 8, ) design, construction, and testing of pre-production prototypes and models. 3) design of tools, jigs, molds and dies involving new technology. 29. Retained Earnings means the accumulated net income of the Utility less distribution to stockholders and transfers to other capital accounts. 30. Salvage Value means the amount received for property retired, less any expenses incurred in connection with the sale or in preparing the property for sale; or, if retained, the amount at which the material recoverable is chargeable to materials and supplies, or other appropriate account. 31. Service Life means the time between the date electric plant is included in electric plant in service, or electric plant leased to others, and the date of its retirement. If Depreciation is accounted for on a production basis rather than on a time basis, then Service Life should be measured in terms of the appropriate unit of production. 32. Service Value means the difference between original cost and net salvage value of electric plant. 33. Subsidiary Company shall have the meaning ascribed thereto in section 2(4) of the BCA, as amended from time to time. 34. Uniform System of Accounts means the system of Accounts to be filed by a Utility as set out in this Directive. 35. Utility means any Public Utility or Licensee to which this system of accounts is applicable. General Instructions 1. Utilities Governed by Uniform System of Accounts. For the purpose of applying the system of accounts prescribed by the Board, all Utilities as at the inception date of, are required to follow this system of accounts except those Utilities that are exempted by the Alberta Energy Utilities Board. 2. Records. A. Each Utility shall keep its books of account, and all other books, records, and memoranda which support the entries in such books of account so as to be able to readily furnish full information as to any item included in any Account. Each entry shall be supported by such detailed information as will permit ready identification, analysis, and verification of all facts relevant thereto. B. The books and records referred to herein include not only accounting records in a limited technical sense, but all other records, such as minute books, stock books, reports, correspondence, memoranda, etc., which may be useful in developing the history of or facts regarding any transaction. C. No Utility shall destroy any such books or records unless the destruction thereof is permitted by rules and regulations of the Board. D. In addition to prescribed Accounts, clearing accounts, temporary or experimental accounts, and subdivisions of any accounts, may be kept, provided the integrity of the prescribed Account is not impaired. E. All amounts included in the Accounts prescribed herein for electric plant and operating expenses and any payments disallowed by the Board shall be tracked separately within each Account. F. The arrangement or sequence of the Accounts prescribed herein shall not be controlling as to the arrangement or sequence in report forms which may be prescribed by the Board. 3. Numbering System. Date Created: August 11, 2005 Page 4 Date Updated: May 8, 2006

6 May 8, 2006 A. The Account numbering plan used herein consists of a system of three-digit whole numbers as follows: Assets and other debits Liabilities and other credits Plant accounts , Income accounts Revenue accounts Production, transmission and distribution expenses Customer accounts, customer service and informational, sales, and general and administrative expenses B. In certain instances, numbers have been skipped in order to allow for possible later expansion or to permit better coordination with the numbering system for other utility departments. C. The numbers prefixed to account titles are to be considered as parts of the titles. Each Utility, however, may adopt for its own purposes a different system of account numbers (see also General Instruction 2D) provided that the numbers herein prescribed shall appear in the descriptive headings of the ledger accounts and in the various sources of original entry; however, if a Utility uses a different group of account numbers and it is not practicable to show the prescribed account numbers in the various sources of original entry, such reference to the prescribed account numbers may be omitted from the various sources of original entry. Moreover, each Utility using different account numbers for its own purposes shall keep readily available a list of such account numbers which it uses and a reconciliation of such account numbers with the account numbers provided herein. It is intended that the Utility s records shall be so kept as to permit ready analysis by prescribed accounts (by direct reference to sources of original entry to the extent practicable) and to permit preparation of financial and operating statements directly from such records at the end of each accounting period according to the prescribed accounts. 4. Accounting Period. Each Utility shall keep its books on a monthly basis so that for each month all transactions applicable thereto, as nearly as may be ascertained, shall be entered in the books of the Utility. Amounts applicable or assignable to specific Utility departments shall be so segregated monthly. Each Utility shall close its books at the end of each calendar year unless otherwise authorized by the Board. 5. Submittal of Questions. To maintain uniformity of accounting, Utilities shall submit questions of doubtful interpretation to the Board for consideration and decision. 6. Item Lists. Lists of example items appearing in the texts of the Accounts or elsewhere in this Directive are for the purpose of more clearly indicating the application of the prescribed accounting. The lists are intended to be representative, but not exhaustive. The appearance of an item in a list warrants the inclusion of the item in the Account mentioned only when the text of the Account also indicates inclusion inasmuch as the same item frequently appears in more than one list. The proper entry in each instance must be determined by the texts of the Accounts. 7. Extraordinary Items. Extraordinary items are to be treated as defined by the CICA Handbook Section 3480, (See Account 434, Extraordinary income, and Account 435, Extraordinary deductions) 7.1 Prior period items. Utilities will account for prior period adjustments in accordance with the guidelines set out within the CICA Handbook Section Unaudited Items. Whenever a financial statement is required by the Board, if it is known that a transaction has occurred which affects the Accounts but the amount involved in the transaction and its effect upon the Accounts Date Created: August 11, 2005 Page 5 Date Updated: May 8, 2006

7 May 8, 2006 cannot be determined with absolute accuracy, the amount shall be estimated and such estimated amount included in the proper Accounts. The Utility is not required to anticipate minor items which would not appreciably affect the Accounts. 9. Distribution of Pay and Expenses of Employees. The charges to electric plant, operating expense and other Accounts for services and expenses of employees engaged in activities chargeable to various Accounts, such as construction, maintenance, and operations, shall be based upon the actual time engaged in the respective classes of work, or in case that method is impracticable, upon the basis of a study of the time actually engaged during a representative period. 10. Payroll Distribution. Underlying accounting data shall be maintained so that the distribution of the cost of labor charged direct to the various Accounts will be readily available. Such underlying data shall permit a reasonably accurate distribution to be made of the cost of labor charged initially to clearing accounts so that the total labor cost may be classified among construction, cost of removal, electric operating functions (hydraulic generation, transmission, distribution, etc.) and non-utility operations. 11. Accounting to be on Accrual Basis. A. The Utility is required to keep its Accounts on an accrual basis. This requires the inclusion in its Accounts of all known transactions of appreciable amount which affect the Accounts. If bills covering such transactions have not been received or rendered, the amounts shall be estimated and appropriate adjustments made when the bills are received. B. When payments are made in advance for items such as insurance, rents, taxes or interest, the amount applicable to future periods shall be charged to Account 165, Prepayments, and spread over the periods to which applicable by credits to Account 165, and charges to the Accounts appropriate for the expenditure. 12. Accounting for Other Departments. If the Utility also operates other utility departments, such as gas, water, etc., it shall keep such Accounts for the other departments as may be prescribed by proper authority and in the absence of prescribed Accounts, it shall keep such Accounts as are proper or necessary to reflect the results of operating each such department. It is not intended that proprietary and similar accounts which apply to the Utility as a whole shall be departmentalized. 13. Transactions With Associated Companies. Each Utility shall keep its accounts and records so as to be able to furnish accurately and expeditiously statements of all transactions with Associated Companies. The statements may be required to show the general nature of the transactions, the amounts involved therein and the amounts included in each Account prescribed herein with respect to such transactions. Transactions with Associated Companies shall be recorded in the appropriate Accounts for transactions of the same nature. Nothing herein contained, however, shall be construed as restraining the Utility from subdividing Accounts for the purpose of recording separately transactions with Associated Companies. 14. Contingent Assets and Liabilities. Contingent assets represent a possible source of value to the Utility contingent upon the fulfillment of conditions regarded as uncertain. Contingent liabilities include items which may under certain conditions become obligations of the Utility but which are neither direct nor assumed liabilities at the date of the balance sheet. Utilities will follow practices and guidelines as set out by the CICA Handbook Section 3290 for accounting treatment. 15. Long-Term Debt and Preferred Shares: Premium, Discount and Expense, and Gain or Loss on Reacquisition. Date Created: August 11, 2005 Page 6 Date Updated: May 8, 2006

8 May 8, 2006 A separate premium, discount and expense Account shall be maintained for each class and series of longterm debt or preferred shares issued or assumed by the Utility. Premiums, discounts, gains or losses and their related tax impacts resulting from reacquisition transactions shall be accounted for and disclosed in accordance with guidelines prescribed by the CICA Handbook Sections 3070, 3210, and Income Taxes. There are four options which may be used by Utilities in determining Income Taxes for rate setting purposes: 1. The Flowthrough Method Under this method, the Utility maximizes all allowed deductions for income tax, and only those income taxes currently payable are included in customer rates. 2. Future Tax Liability Method Under this method, the Utility follows the accounting treatment prescribed by the CICA Handbook Section Normalized All Taxes Paid Under this method, the Utility only claims Capital Cost Allowance to offset all timing differences. All taxes currently payable are included in revenue requirement. 4. Any other methodology approved by the Board. Each Utility must disclose the methodology utilized in its rate application. 17. Criteria for classifying and accounting for leases. The CICA Handbook Section 3065 outlines criterion and requirements for accounting treatment of operating and capital leases. The Utilities will prescribe to the requirements outlined therein. 18. Depreciation Accounting. A. Method. Utilities must use a method of Depreciation that allocates in a systematic and rational manner the Service Value of depreciable property over the Service Life of the property. B. Service lives. Estimated useful Service Lives of depreciable property must be supported by engineering, economic, or other depreciation studies. C. Rate. Utilities must use percentage rates of Depreciation that are based on a method of Depreciation that allocates in a systematic and rational manner the Service Value of depreciable property to the Service Life of the property. Where composite Depreciation rates are used, they should be based on the weighted average estimated useful service lives of the depreciable property comprising the composite group. 19. Accounting for other comprehensive income. Utilities shall account and disclose items of other comprehensive income as prescribed by the CICA Handbook Section Examples of categories of other comprehensive income include foreign currency items, minimum pension liability adjustments, unrealized gains and losses on available-for-sale type securities and cash flow hedge amounts. 20. Accounting for derivative instruments and hedging activities. Utilities shall recognize derivative instruments as either assets or liabilities in the financial statements and apply accounting treatment and disclosure requirements as prescribed by the CICA Handbook Sections 1530, 3855, 3861, and Accounting for asset retirement obligations. A. An Asset Retirement Obligation represents a liability for the legal obligation associated with the retirement of a tangible long-lived asset that a company is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract or by legal construction of a contract under the doctrine of promissory estoppel. An Asset Retirement Cost represents the amount capitalized when the liability is recognized for the long-lived asset that gives rise to the legal obligation. The amount recognized for the liability and an associated Asset Retirement Cost shall be stated as prescribed by the CICA Handbook Date Created: August 11, 2005 Page 7 Date Updated: May 8, 2006

9 May 8, 2006 B. The Utility shall initially record a liability for an asset retirement obligation in Account 230, Asset Retirement Obligations, and charge the associated Asset Retirement Costs to electric utility plant (including Accounts 101.1, 359.1, 374, 399.1), and non-utility plant, as appropriate, related to the plant that gives rise to the legal obligation. The Asset Retirement Cost shall be depreciated over the useful life of the related asset that gives rise to the obligations. For periods subsequent to the initial recording of the asset retirement obligation, a Utility shall recognize the period to period changes of the Asset Retirement Obligation that result from the passage of time due to the accretion of the liability and any subsequent measurement changes to the initial liability for the legal obligation recorded in Account 230, Asset Retirement Obligations, as follows: (1) The Utility shall record the accretion of the liability by debiting Account , Accretion Expense from asset retirement obligation, for electric utility plant, Account 413, Expenses of electric plant leased to others, for electric plant leased to others, and Account 419, Interest, dividend and other income, for non-utility plant and crediting Account 230, Asset Retirement Obligations; and (2) The Utility shall recognize any subsequent measurement changes of the liability initially recorded in Account 230, Asset retirement obligations, for each specific Asset Retirement Obligation as an adjustment of that liability in Account 230 with the corresponding adjustment to electric utility plant, electric plant leased to others, and non-utility plant, as appropriate. The Utility shall on a timely basis monitor any measurement changes of the asset retirement obligations. C. Gains or losses resulting from the settlement of Asset Retirement Obligations associated with utility plant resulting from the difference between the amount of the liability for the Asset Retirement Obligation included in Account 230, Asset Retirement Obligations, and the actual amount paid to settle the obligation shall be credited to Account 411.6, Gains / Losses from disposition of utility plant. D. Gains or losses on the settlement of Asset Retirement Obligations associated with non-utility plant resulting from the difference between the amount of the liability for the Asset Retirement Obligation in account 230, Asset Retirement Obligations, and the amount paid to settle the obligation, shall be accounted for as follows: (1) Gains shall be credited to Account 417 Revenues from non-utility operations and; (2) Losses shall be charged to Account 417.1, Expenses of non-utility operations. Electric Plant Instructions 1. Classification of electric plant at effective date of system of accounts. A. The balances in the various plant accounts, as determined under the prior system of accounts, should be carried forward and categorized to this chart of accounts. Any remaining balance of plant shall be classified in accordance with the instructions listed below. B. The cost to the Utility of its un-classified plant shall be ascertained by analysis of the Utility s records and or studies. Adjustments shall not be made to record in utility plant accounts amounts previously charged to operating expenses or to income deductions in accordance with the Uniform System of Accounts in effect at the time or in accordance with the discretion of management as exercised under a uniform system of accounts, or under accounting practices previously followed. C. The detailed electric plant accounts (301 to 399.2, inclusive) shall be stated on the basis of cost to the Utility of plant constructed by it and the original cost, estimated if not known, of plant acquired as an operating unit or system. The difference between the original cost, as above, and the cost to the Utility of electric plant after giving effect to any accumulated provision for Depreciation or Amortization shall be recorded in Account 114, Electric plant acquisition adjustments. The original cost of electric plant shall be determined by analysis of the Utility s records or those of the predecessor or vendor companies with respect to electric plant previously acquired as operating units or systems and the difference between the original cost so determined, less accumulated Date Created: August 11, 2005 Page 8 Date Updated: May 8, 2006

10 May 8, 2006 provisions for Depreciation and Amortization and the cost to the Utility with necessary adjustments for retirements from the date of acquisition, shall be entered in Account 114, Electric plant acquisition adjustments. D. Plant acquired by lease which qualifies as capital lease property under General Instruction 17. Criteria for Classifying & Accounting for Leases shall be recorded in Account 101.1, Property under capital leases. 2. Electric Plant To Be Recorded at Cost. A. All amounts included in the Accounts for electric plant acquired as an operating unit or system, except as otherwise provided in the texts of the intangible plant accounts, shall be stated at the cost incurred by the person who first devoted the property to utility service. All other electric plant shall be included in the Accounts at the cost incurred by the Utility, except for property acquired by lease which qualifies as capital lease property under General Instruction 17. Criteria for Classifying & Accounting for Leases, and is recorded in Account 101.1, Property under capital leases. Where the term cost is used in the detailed plant accounts, it shall have the meaning stated in this paragraph. B. When the consideration given for property is other than cash, the value of such consideration shall be determined on a cash basis (see, however, definition 9). In the entry recording such transition, the actual consideration shall be described with sufficient particularity to identify it. The Utility shall be prepared to furnish the Board with the particulars of its determination of the cash value of the consideration if other than cash. C. When property is purchased under a plan involving deferred payments, no charge shall be made to the electric plant Accounts for interest, insurance, or other expenditures occasioned solely by such form of payment. D. When contributions in aid of construction are received in the form of monies, the amount received should be recorded in Account 131, Cash and in the related asset contra Account Gross value of contributions. This account will be amortized. These contributions shall be recorded by rate class. If a contribution does not relate to a single rate class then the contribution shall be allocated between rates classes in a rational manner. 3. Components of construction cost. The underlying accounting concepts for this instruction are based on the CICA Handbook Section 3061 which establishes standards for the measurement, presentation and disclosure of capital assets, unless otherwise directed by the Board. The cost of construction properly includible in the electric plant accounts shall include, where applicable, the direct and overhead cost as listed and defined hereunder: (1) Contract work includes amounts paid for work performed under contract by other companies, firms, or individuals, costs incident to the award of such contracts, and the inspection of such work. (2) Labor includes the pay and expenses of employees of the Utility engaged on construction work, and related workmen s compensation insurance, payroll taxes and similar items of expense. It does not include the pay and expenses of employees which are distributed to construction through clearing accounts nor the pay and expenses included in other items hereunder. (3) Materials and supplies includes the purchase price at the point of free delivery plus customs duties, excise taxes, the cost of inspection, loading and transportation, the related stores expenses, and the cost of fabricated materials from the Utility s shop. In determining the cost of materials and supplies used for construction, proper allowance shall be made for unused materials and supplies, for materials recovered from temporary structures used in performing the work involved, and for discounts allowed and realized in the purchase of materials and supplies. (4) Transportation includes the cost of transporting employees, materials and supplies, tools, purchased equipment, and other work equipment (when not under own power) to and from points of construction. It includes amounts paid to others as well as the cost of operating the Utility s own transportation equipment. (See item 5 following.) Date Created: August 11, 2005 Page 9 Date Updated: May 8, 2006

11 May 8, 2006 (5) Special machine service includes the cost of labor (optional), materials and supplies, depreciation, and other expenses incurred in the maintenance, operation and use of special machines, such as steam shovels, pile drivers, derricks, ditchers, scrapers, material unloaders, and other labor saving machines; also expenditures for rental, maintenance and operation of machines of others. When a particular construction job requires the use for an extended period of time of special machines, transportation or other equipment, the net book cost thereof, less the appraised or salvage value at time of release from the job, shall be included in the cost of construction. (6) Shop service includes the proportion of the expense of the Utility s shop department assignable to construction work except that the cost of fabricated materials from the Utility s shop shall be included in materials and supplies. (7) Protection includes the cost of protecting the Utility s property from fire or other casualties and the cost of preventing damages to others, or to the property of others, including payments for discovery or extinguishment of fires, cost of apprehending and prosecuting incendiaries, witness fees in relation thereto, amounts paid to municipalities and others for fire protection, and other analogous items of expenditures in connection with construction work. (8) Injuries and damages includes expenditures or losses in connection with construction work on account of injuries to livestock and damages to the property of others; also the cost of investigation of and defense against actions for such injuries and damages. Insurance recovered or recoverable on account of compensation paid for injuries incident to construction shall be credited to the account or accounts to which such compensation is charged. Insurance recovered or recoverable on account of property damages incident to construction shall be credited to the account or accounts charged with the cost of the damages. (9) Privileges and permits includes payments for and expenses incurred in securing temporary privileges, permits or rights in connection with construction work, such as for the use of private or public property, streets, or highways, but it does not include rents, or amounts chargeable as franchises and consents for which see Account 302, Franchises and consents. (10) Rents include amounts paid for the use of construction quarters and office space occupied by construction forces and amounts properly includible in construction costs for such facilities jointly used. (11) Engineering and supervision includes the portion of the pay and expenses of engineers, surveyors, draftsmen, inspectors, superintendents and their assistants applicable to construction work. (12) General administration capitalized includes the portion of the pay and expenses of the general officers and administrative and general expenses applicable to construction work. (13) Engineering services includes amounts paid to other companies, firms, or individuals engaged by the Utility to plan, design, prepare estimates, develop standards, supervise, inspect, or give general advice and assistance in connection with construction work. (14) Insurance includes premiums paid or amounts provided or reserved as self-insurance for the protection against loss and damages in connection with construction, by fire or other casualty injuries to or death of livestock, damages to property of others, defalcation of employees and agents, and the nonperformance of contractual obligations of others. It does not include workmen s compensation or similar insurance on employees included as labor in item 2, above. (15) Law expenditures includes the general law expenditures incurred in connection with construction and the court and legal costs directly related thereto, other than law expenses included in protection, item 7, and in injuries and damages, item 8. (16) Taxes include taxes on physical property (including land) during the period of construction and other taxes properly includible in construction costs before the facilities become available for service. (17) Allowance for funds used during construction includes the net cost for the period of construction of borrowed funds used for construction purposes and a reasonable rate on other Date Created: August 11, 2005 Page 10 Date Updated: May 8, 2006

12 May 8, 2006 funds when so used, not to exceed, without prior approval of the Board, allowances computed in accordance with the formula prescribed in paragraph (a) of this subparagraph. No allowance for funds used during construction charges shall be included in these accounts upon expenditures for construction projects which have been abandoned. (a) The formula and elements for the computation of the allowance for funds used during construction shall be the approved average weighted cost of capital multiplied by the sum of: average balance in construction work in progress, plus average capital inventory balance, less construction accounts payable, less asset retirement costs (if any are included in construction work in progress). (See General Instruction 21, Accounting for asset retirement obligations as these instructions relate to plant under construction) (b) The weighted average cost rate shall be determined in the manner indicated and approved by the Board for the applicable year. For a non test year the Utility shall use the weighted average cost rate from its last approved filing unless adjusted by the Board. e.g. a Board approved cost of equity rate. NOTE A: When a part only of a plant or project is placed in operation or is completed and ready for service but the construction work as a whole is incomplete, that part of the cost of the property placed in operation or ready for service, shall be treated as Electric Plant in Service and allowance for funds used during construction thereon as a charge to construction shall cease. Allowance for funds used during construction on that part of the cost of the plant which is incomplete may be continued as a charge to construction until such time as it is placed in operation or is ready for service, except as limited in item 17, above. NOTE B: No allowance for funds used during construction will be included for projects where a 100% contribution has been received up front on a direct assigned project from the Alberta Electric System Operator (AESO). For those projects where contributions are received up front and no allowance for funds used during construction is calculated, the contribution would be included in the rate base in the same period as the asset. (18) Studies include the costs of studies such as safety, or seismic studies or environmental studies mandated by regulatory bodies relative to plant under construction. 4. Asset retirement costs. Amounts that are capitalized will increase the carrying amount of long lived assets when a liability for a long lived asset is recognized. Unless otherwise directed by the Board, these amounts will not be recognized in the rate base. 5. Overhead Construction Costs. A. All overhead construction costs, such as engineering, supervision, general office salaries and expenses, construction engineering and supervision by others than the accounting utility, law expenses, insurance, injuries and damages, relief and pensions, taxes and interest, shall be charged to particular jobs or units on the basis of the amounts of such overheads reasonably applicable thereto, to the end that each job or unit shall bear its equitable proportion of such costs and that the entire cost of the unit, both direct and overhead, shall be deducted from the plant accounts at the time the property is retired. B. The records supporting the entries for overhead construction costs shall be so kept as to show the total amount of each overhead for each year, the nature and amount of each overhead expenditure charged to each construction work order and to each electric plant account, and the bases of distribution of such costs. 6. Electric Plant Purchased or Sold. A. When electric plant constituting an operating unit or system is acquired by purchase, merger, consolidation, liquidation, or otherwise, after the effective date of this Uniform System of Accounts, the accounting for the acquisition shall be completed as follows: Date Created: August 11, 2005 Page 11 Date Updated: May 8, 2006

13 May 8, 2006 (1) The original cost of plant, estimated if not known, shall be charged to the appropriate electric plant in service accounts and to Account 104, Electric plant leased to others, Account 105, Electric plant held for future use, and Account 107, Construction work in progress electric, as appropriate. (2) The Depreciation and Amortization applicable to the original cost of the properties purchased shall be credited to the appropriate account for accumulated provision for Depreciation or Amortization. (3) The cost to the Utility of any property included in Account 121, Non-utility property, shall be transferred thereto. (4) The difference in the costs of acquisition, including expenses incidental thereto properly includible in electric plant and the net sum of transactions (1), (2), (3) above, shall then be closed to Account 114, Electric plant acquisition adjustments. NOTE: If a Utility acquires a Rural Electrification Association (REA), it shall follow the accounting outlined in this plant instruction 6A if the records of original cost and accumulated depreciation are available. If the records are not available, the assets shall be recorded at the acquisition value. When allocating the plant values to plant accounts the Utility shall use the plant account records of the REA, if they have been kept in accordance with this system of accounts. If the plant records of the REA are not in accordance with this system of accounts then the Utility shall use a rational allocation methodology to allocate the cost (and accumulated depreciation, if applicable) to plant accounts. For greater clarity, this note is meant to address circumstances where historical information is not available and should not be construed as requiring an REA to comply with this Uniform System of Accounts. B. When any property acquired as an operating unit or system includes duplicate or other plant which will be retired by the accounting Utility in the reconstruction of the acquired property or its consolidation with previously owned property, the proposed accounting for such property shall be presented to the Board for its determination and approval. C. In connection with the acquisition of electric plant constituting an operating unit or system, the Utility shall procure, if possible, all existing records relating to the property acquired, or certified copies thereof, and shall preserve such records in conformity with regulations and practices governing the preservation of records of its own construction. D. When electric plant constituting an operating unit or system is sold, conveyed, or transferred to another by sale, merger, consolidation, or otherwise, the book cost of the property sold or transferred to another shall be credited to the appropriate utility plant accounts, including amounts carried in Account 114, Electric plant acquisition adjustments. The amounts (estimated if not known) carried with respect thereto in the accounts for accumulated provision for depreciation and amortization and in Account 252, Customer advances for construction, shall be charged to such accounts. Unless otherwise ordered by the Board, the difference, if any, between (1) the net amount of debits and credits and (2) the consideration received for the property (less Commissions and other expenses of making the sale) shall be included in Account Gains /Losses from disposal of utility plant. NOTE: In cases where existing Utilities merge or consolidate because of financial or operating reasons or statutory requirements rather than as a means of transferring title of purchased properties to a new owner, the accounts of the constituent Utilities, with the approval of the Board, may be combined. In the event original cost has not been determined, the resulting Utility shall proceed to determine such cost as outlined herein. 7. Expenditures on Leased Property. The cost of leasehold improvements (including repairs, rearrangements, additions, and betterments) made in the course of preparing for utility service property shall be treated in accordance with guidelines provided in the CICA Handbook Section Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee simple by the Utility and rights. These accounts should also include interests, and privileges held by the Utility in land Date Created: August 11, 2005 Page 12 Date Updated: May 8, 2006

14 May 8, 2006 owned by others, such as leaseholds, easements, water and water power rights, diversion rights, submersion rights, rights-of-way, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way costs incurred in connection with first clearing and grading of land and rights-of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. B. Where special assessments for public improvements provide for deferred payments, the full amount of the assessments shall be charged to the appropriate land account and the unpaid balance shall be carried in an appropriate liability account. Interest on unpaid balances shall be charged to the appropriate interest account. If any part of the cost of public improvements is included in the general tax levy, the amount thereof shall be charged to the appropriate tax account. C. The net profit from the sale of timber, cord wood, sand, gravel, other resources or other property acquired with the rights-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber and other natural resources on the land at the time of purchase increases in value, the net profit (after giving effect to the cost of the natural resources) from the sales of timber or its products or other natural resources shall be credited to the appropriate utility operating income account when such land has been recorded in Account 105, Electric plant held for future use or classified as plant in service. D. Separate entries shall be made for the acquisition, transfer, or retirement of each parcel of land (excluding land rights) having a life of more than one year. A record shall be maintained showing the nature of ownership, full legal description, and a date of recording of the land deed. Entries transferring or retiring land shall refer to the original entry recording its acquisition. E. Any difference between the amount received from the sale of land, less agents commissions and other costs incident to the sale, and the book cost of such land or rights, shall be included in Account 411.6, Gains /Losses from disposition of utility plant. Appropriate adjustments of the accounts shall be made with respect to any structures or improvements located on land sold. F. The cost of buildings and other improvements (other than public improvements) shall not be included in the land accounts. If at the time of acquisition of an interest in land such interest extends to buildings or other improvements (other than public improvements) which are then devoted to utility operations, the land and improvements shall be separately appraised with the cost allocated to land and buildings or improvements on the basis of the separate appraisals. If the improvements are removed or wrecked without being used in operations, the cost of removing or wrecking shall be charged and the salvage credited to the account in which the cost of the land is recorded. G. When the purchase of land for electric operations requires the purchase of more land than 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 the land which is not to be used in utility operations. The portion of the cost measured by the fair market value of the land not to be used shall be included in Account 105, Electric plant held for future use, or Account 121, Non-utility property, as appropriate. H. Provisions shall be made for amortizing amounts carried in the accounts for limited-term interests in land so as to apportion equitably the cost over the life thereof. I. The items of cost to be included in the accounts for land and land rights are as follows: 1. Bulkheads, buried, not requiring maintenance or replacement. 2. Cost, first, of acquisition including mortgages and other liens assumed (but not subsequent interest thereon). 3. [Reserved] 4. Condemnation proceedings, including court and counsel costs. 5. Consents and abutting damages, payment for. 6. Conveyancers and notaries fees. 7. Fees, Commissions, and salaries to brokers, agents and others in connection with the acquisition of the land or land rights. 8. [Reserved] 9. Leases, cost of voiding upon purchase to secure possession of land. 10. Removing, relocating, or reconstructing, property of others, such as buildings, highways, railroads, bridges, cemeteries, churches, telephone and power lines, etc., in order to acquire quiet possession. 11. Retaining walls unless identified with structures. 12. Special assessments levied by public authorities for public improvements on the basis of Date Created: August 11, 2005 Page 13 Date Updated: May 8, 2006

15 May 8, 2006 benefits for new roads, new bridges, new sewers, new curbing, new pavements, and other public improvements, but not taxes levied to provide for the maintenance of such improvements. 13. Surveys in connection with the acquisition, but not amounts paid for topographical surveys and maps where such costs are attributable to structures or plant equipment erected or to be erected or installed on such land. 14. Taxes assumed, accrued to date of transfer of title. 15. Title, examining, clearing, insuring and registering in connection with the acquisition and defending against claims relating to the period prior to the acquisition. 16. Appraisals prior to closing title. 17. Cost of dealing with distributees or legatees residing outside of the state or county, such as recording power of attorney, recording will or exemplification of will, recording satisfaction of state tax. 18. Filing satisfaction of mortgage. 19. Documentary stamps. 20. Photographs of property at acquisition. 21. Fees and expenses incurred in the acquisition of water rights and grants. 22. Cost of fill to extend bulkhead line over land under water, where riparian rights are held, which is not occasioned by the erection of a structure. 23. Sidewalks and curbs constructed by the Utility on public property. 24. Labor and expenses in connection with securing rights of way, where performed by company employees and company agents. 25. Unwanted buildings located thereon, and removal costs of unwanted buildings less salvage value. 9. Structures and Improvements. A. The accounts for structures and improvements shall include the cost of all buildings and facilities to house, support, or safeguard property or persons, including all fixtures permanently attached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impairing the buildings, and improvements of a permanent character on or to the land. Also included are those costs incurred in connection with the first clearing and grading of land and rights-of-way and the damage costs associated with construction and installation of plant. B. The cost of specially provided foundations not intended to outlast the machinery or apparatus for which provided, and the cost of angle irons, castings, etc., installed at the base of an item of equipment, shall be charged to the same account as the cost of the machinery, apparatus, or equipment. C. Minor buildings and structures, such as valve towers, patrolmen s towers, telephone stations, fish and wildlife, and recreation facilities, etc., which are used directly in connection with or form a part of a reservoir, dam, waterway, etc., shall be considered a part of the facility and the cost thereof accounted for accordingly. D. Where the structure of a dam forms also the foundation of the power plant building, such foundation shall be considered a part of the dam. E. The cost of disposing of materials excavated in connection with construction of structures shall be considered as a part of the cost of such work, except as follows: (a) When such material is used for filling, the cost of loading, hauling, and dumping shall be equitably apportioned between the work in connection with which the removal occurs and the work in connection with which the material is used; (b) when such material is sold, the net amount realized from such sales shall be credited to the work in connection with which the removal occurs. If the amount realized from the sale of excavated materials exceeds the removal costs and the costs in connection with the sale, the excess shall be credited to the land account in which the site is carried. F. Lighting or other fixtures temporarily attached to buildings for purposes of display or demonstration shall not be included in the cost of the building but in the appropriate equipment account. G. Examples of items of cost to be included in the accounts for structures and improvements are as follows: 1. Architects plans and specifications including supervision. Date Created: August 11, 2005 Page 14 Date Updated: May 8, 2006

16 May 8, Boilers, furnaces, piping, wiring, fixtures, and machinery for heating, lighting, signaling, ventilating, and air-conditioning systems, plumbing, vacuum cleaning systems, incinerator and smoke pipe, flues, etc. 3. Bulkheads, including dredging, riprap fill, piling, decking, concrete, fenders, etc., when exposed and subject to maintenance and replacement. 4. Chimneys 5. Commissions and fees to brokers, agents, architects, and others. 6. Conduit (not to be removed) with its contents. 7. Damages to abutting property during construction. 8. Docks 9. Door checks and door stops 10. Drainage and sewerage systems. 11. Elevators, cranes, hoists, etc., and the machinery for operating them. 12. Excavation, including shoring, bracing, bridging, refill and disposal of excess excavated material, cofferdams around foundation, pumping water from cofferdams during construction, and test borings. 13. Fences and fence curbs (not including protective fences isolating items of equipment, which shall be charged to the appropriate equipment account). 14. Fire protection systems when forming a part of a structure. 15. Flagpole. 16. Floor covering (permanently attached). 17. Foundations and piers for machinery, constructed as a permanent part of a building or other item listed herein. 18. Grading and clearing when directly occasioned by the building of a structure. 19. Intrasite communication system, poles, pole fixtures, wires, and cables. 20. Landscaping, lawns, shrubbery, etc. 21. Leases, voiding upon purchase to secure possession of structures. 22. Leased property, expenditures on. 23. Lighting fixtures and outside lighting system. 24. Mail chutes when part of a building. 25. Marquee, permanently attached to building. 26. Painting, first cost. 27. Permanent paving, concrete, brick, flagstone, asphalt, etc., within the property lines. 28. Partitions, including movable. 29. Permits and privileges. 30. Platforms, railings, and gratings when constructed as a part of a structure. 31. Power Boards for services to a building. 32. Refrigerating systems for general use. 33. Retaining walls except when identified with land. 34. Roadways, railroads, bridges, and trestles intrasite except railroads provided for in equipment accounts. 35. Roofs. 36. Scales, connected to and forming a part of a structure. 37. Screens. 38. Sewer systems, for general use. 39. Sidewalks, culverts, curbs and streets constructed by the Utility on its property. 40. Sprinkling systems. 41. Sump pumps and pits. 42. Stacks brick, steel, or concrete, when set on foundation forming part of general foundation and steelwork of a building. 43. Steel inspection during construction. 44. Storage facilities constituting a part of a building. 45. Storm doors and windows 46. Subways, areaways, and tunnels, directly connected to and forming part of a structure. 47. Tanks, constructed as part of a building or as a distinct structural unit. 48. Temporary heating during construction (net cost) 49. Temporary water connection during construction (net cost) 51. Temporary shanties and other facilities used during construction (net cost) 52. Topographical maps 53. Tunnels, intake and discharge, when constructed as part of a structure, including sluice gates, and those constructed to house mains. 54. Vaults constructed as part of a building. 55. Watchmen s sheds and clock systems (net cost when used during construction only) 56. Water meters and supply system for a building or for general company purposes. 57. Water supply piping, hydrants and wells. Date Created: August 11, 2005 Page 15 Date Updated: May 8, 2006

17 May 8, Window shades and ventilators. 59. Yard drainage system. 60. Yard lighting system. 61. Yard surfacing, gravel, concrete, or oil. (First cost only.) NOTE: Structures and Improvements accounts shall be credited with the cost of coal bunkers, stacks, foundations, subways, tunnels, etc., the use of which has terminated with the removal of the equipment with which they are associated even though they have not been physically removed. 10. Equipment. A. The cost of equipment chargeable to the electric plant accounts, unless otherwise indicated in the text of an equipment account, includes the net purchase price thereof, sales taxes, investigation and inspection expenses necessary to such purchase, expenses of transportation when borne by the Utility, labor employed, materials and supplies consumed, and expenses incurred by the Utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connection with the first clearing and grading of land and rights-of-way and the damage costs associated with construction and installation of plant. B. The equipment accounts shall include angle irons and similar items which are installed at the base of an item of equipment, but piers and foundations which are designed to be as permanent as the buildings which house the equipment, or which are constructed as a part of the building and which cannot be removed without cutting into the walls, ceilings or floors or without in some way impairing the building, shall be included in the building accounts. 11. Additions and Retirements of Electric Plant. For the purpose of asset classifications and additions, Utilities will apply accounting treatment for capital assets as provided by the CICA Handbook Sections 3061, 3062, and The handbook outlines guidelines for achieving asset classification, criterion for determining asset recognition, the principles for capitalization verses expensing, the criterion for asset additions as classified as a betterment or repair. For retirements unless otherwise defined as gains or losses on retirement, book value plus cost of removal less salvage value should be charged to the appropriate accumulated provision for depreciation account. A. When an asset is added to electric plant, the cost thereof shall be added to the appropriate electric plant account, except that when assets are acquired in the acquisition of any electric plant constituting an operating system, they shall be accounted for as provided in electric plant instruction 5. B. When an asset is retired from electric plant, with or without replacement, the book cost thereof shall be credited to the electric plant account in which it is included, determined in the manner set forth in paragraph C, below. If the asset is of a depreciable class, the book cost of the asset retired and credited to electric plant shall be charged to the accumulated provision for depreciation applicable to such property. The cost of removal and the salvage shall be charged or credited, as appropriate, to such accumulated provision for depreciation account applicable to such property. C. The book cost of electric plant retired shall be the amount at which such property is included in the electric plant accounts, including all components of construction costs. The book cost shall be determined from the Utility s records and if this cannot be reasonably done, then it shall be estimated. When it is impracticable to determine the book cost of each asset, due to the relatively large number or small cost thereof, an appropriate average book cost of the units, with due allowance for any differences in size and character, shall be used as the book cost of the units retired. D. The sale of land shall be treated as prescribed in Electric Plant Instruction 7D. E. The book cost less net salvage of depreciable electric plant retired shall be charged in its entirety to Account 108, Accumulated provision for Depreciation of electric utility plant. Any amounts which, by approval or order of the Board, are charged to Account 228.1, Accumulated provision for self insurance, shall be credited to Account Asset Record System. Each Utility shall record all construction and retirements of electric plant by means of work orders or job orders. Separate work orders may opened for additions to and retirements of electric plan or the retirements may be included with the construction work order, provided, however, that all items relating Date Created: August 11, 2005 Page 16 Date Updated: May 8, 2006

18 May 8, 2006 to the retirements shall be kept separate from those relating to construction and provided, further, that any maintenance costs involved in the work shall likewise be segregated. Each Utility shall maintain records in which, for each plant account, the amounts of the annual additions and retirements are classified so as to show the number and cost of the various additions or retirements. NOTE: A single work order may be taken out for multiple individual projects. 13. Transfers of Property. When property is transferred from one electric plant account to another, from one Utility department to another, such as from electric to gas, from one operating division or area to another, to or from Accounts 101, Electric plant in service, 104. Electric plant leased to others, 105. Electric plant held for future use, and 121, Non-utility property, the transfer shall be recorded by transferring the original cost thereof from the one account, department, or location to the other. Any related amounts carried in the accounts for accumulated provision for depreciation or amortization shall be transferred in accordance with the segregation of such accounts. 14. Common Utility Plant. A. If the Utility is engaged in more than one utility service, such as electric, gas, and water, and any of its utility plant is used in common for several utility services or for other purposes to such an extent and in such manner that it is impracticable to segregate it by utility services currently in the accounts, such property, with the approval of the Board, may be designated and classified as common utility plant in a separate account as specified by the Utility. B. The Utility shall be prepared to show at any time and to report to the Board annually, or more frequently, if required, and by utility plant accounts (301 to 399.2) the following: (1) The book cost of common utility plant, (2) The allocation of such cost to the respective departments using the common utility plant, and (3) The basis of the allocation. C. The accumulated provision for Depreciation and Amortization of the Utility shall be segregated so as to show the amount applicable to the property classified as common utility plant. D. The expenses of operation, maintenance, rents, Depreciation and Amortization of common utility plant shall be recorded in the accounts prescribed herein, but designated as common expenses, and the allocation of such expenses to the departments using the common utility plant shall be supported in such manner as to readily reflect the basis of allocation used. 15. Transmission and Distribution Plant. For the purpose of this system of accounts, Transmission and Distribution has the definition as prescribed in the EUA, as amended or replaced from time to time, as described hereto: A. Transmission Facility means an arrangement of conductors and transformation equipment that transmits electricity from the high voltage terminal of the generation transformer to the low voltage terminal of the step down transformer operating phase to phase at a nominal high voltage level of more than volts to a nominal low voltage level of volts or less, and includes: (1) transmission lines energized in excess of volts, (2) insulating and supporting structures, (3) substations, transformers and switchgear, (4) operational, telecommunication and control devices, (5) all property of any kind used for the purpose of, or in connection with, the operation of the transmission facility, including all equipment in a substation used to transmit electric energy from the low voltage terminal, to electric distribution system lines that exit the substation and are energized at volts or less, and connections with electric systems in jurisdictions bordering Alberta, but does not include a generating unit or an electric distribution system. B. Electric distribution system means the plant, works, equipment, systems and services necessary to distribute electricity in a service area, but does not include a generating unit or a transmission facility, however any portable generation equipment of the distribution utility shall be included. C. Where poles or towers support transmission and distribution conductors, the poles, towers, anchors, guys, and rights of way shall be classified as transmission system. The conductors, crossarms, braces, grounds, tiewire, insulators, etc., shall be classified as transmission or distribution facilities, Date Created: August 11, 2005 Page 17 Date Updated: May 8, 2006

19 May 8, 2006 according to the purpose for which used. D. Where underground conduit contains both transmission and distribution conductors, the underground conduit and right of way shall be classified as distribution system. The conductors shall be classified as transmission or distribution facilities according to the purpose for which used. E. Land (other than rights of way) and structures (other than poles and towers noted in C above) used jointly for transmission and distribution purposes shall be classified as transmission or distribution according to the major use thereof. F. Generation Other Production Plant means all land and land rights, structures and improvements used in connection with other production power generation, fuel holders, producers and accessories, prime movers and generators, accessory electric equipment and miscellaneous power plant equipment. The costs of providing electric energy to customers located in isolated communities are included in the transmission tariff. The costs of providing electric energy to customers located in industrial areas are included in the Distribution Tariff. 16. Hydraulic production plant. Hydraulic production plant means all land and land rights, structures and improvements used in connection with hydraulic power generation, reservoirs dams and waterways, water wheels, turbines, generators, accessory electric equipment, miscellaneous power plant equipment, roads, railroads, and bridges, and structures and improvements used in connection with fish and wildlife, and recreation. 17. Plant Equipment Held For Emergency in Stores. Plant equipment held for emergency in stores are non rotational in nature and are considered to be capital assets and as such are included in Plant in service. Plant equipment held for emergency in stores are depreciated at the standard rate for the specific asset class. Example items include transformers, meters, current transformers / potential transformers, circuit breakers, regulators, conductors, and tower materials. Utilities must disclose the value of emergency stores in each asset class, if requested. 18. Cradle to Grave Accounting for Meters (Conventional and Automated). Cradle to grave accounting for meters (conventional and automated) encompasses all of the following procedures: A. The cost of meters or devices and appurtenances thereto, chargeable to the electric plant accounts includes the purchase price thereof, sales taxes, certification and inspection expenses necessary to such purchase, expenses of transportation when borne by the Utility, labour employed, and materials and supplies consumed and the initial installation of such meter. B. Meters or devices and appurtenances thereto in stores are considered to be capital assets and as such are included in Plant in service. Meters or devices and appurtenances thereto, are depreciated at the standard rate for this plant account. C. When a meter or devices and appurtenances thereto, is retired from service, with or without replacement, the book cost thereof shall be credited to the electric plant account in which it is included, determined in the manner set forth in paragraph D, below. The book cost of the meter or devices and appurtenances thereto, retired and credited to electric plant account shall be charged to accumulated provision for depreciation. The cost of removal and the salvage shall be charged or credited, as appropriate, to such accumulated provision for depreciation account applicable to such a meter or devices and appurtenances thereto. D. The book cost of a meter or devices and appurtenances thereto, shall be the amount at which such asset is included in the electric plant accounts, including all costs for the initial installation of the meter or device and appurtenances thereto. The book cost shall be determined from the Utility s records and if this cannot be reasonably done, then it shall be estimated. When it is impracticable to determine the book cost of each meter or devices and appurtenances thereto, due to the relatively large number or small cost thereof, an appropriate average book cost of the meter, with due allowance for any differences in size and character, shall be used as the book cost of the meter or devices and appurtenances thereto, retired. E. Throughout the life of the meter or devices and appurtenances thereto, all costs to remove (other than final removal), repair, refurbish, reject and reinstall shall be expensed and charged to Account Date Created: August 11, 2005 Page 18 Date Updated: May 8, 2006

20 May 8, , Operation & Maintenance Meter expenses. NOTE: This guideline for cradle to grave accounting for meters (conventional and automated) is to be utilized only when the Utility chooses to follow this method of accounting and is to be utilized in accordance with plant Account 370, Conventional meters, and Account 371, Automated meters. Operating Expense Instructions 1. Supervision and Engineering Activities. A. The supervision and engineering includible in the operating expense accounts shall consist of the pay and expenses of superintendents, engineers, clerks, other employees and consultants engaged in supervising and directing the operation and maintenance of each utility function. B. Wherever allocations are necessary in order to arrive at the amount to be included in any account, the method and basis of allocation shall be reflected by underlying records. C. A list of work activities applicable generally to utility plant supervision and engineering is included below. EXAMPLE ACTIVITIES: Labor 1. General supervision and direction of operations and maintenance. 2. Special tests to determine efficiency of equipment operation. 3. Preparing or reviewing budgets, estimates, and drawings relating to operation or maintenance for departmental approval. 4. Preparing instructions for operations and maintenance activities. 5. Reviewing and analyzing operating results. 6. Establishing organizational setup of departments and executing changes therein. 7. Formulating and reviewing routines of departments and executing changes therein. 8. General training and instruction of employees by supervisors whose pay is chargeable hereto. 9. Secretarial work for supervisory personnel, but not general clerical and stenographic work chargeable to other accounts. Expenses 10. Consultants fees and expenses. 11. Meals, traveling and incidental expenses. 2. Operating & Maintenance Activities. A. The cost of operation and maintenance chargeable to the various operating expense and clearing accounts includes labor, materials, overheads and other expenses incurred in operating and maintenance work. B. Materials recovered in connection with the maintenance of property shall be credited to the same account to which the maintenance cost was charged. C. A list of work operations applicable generally to utility plant is included hereunder. Other work operations applicable to specific classes of plant are listed in functional operating and maintenance expense accounts. EXAMPLE ACTIVITIES: 1. Direct field supervision of operations and maintenance. 2. Inspecting, testing, and reporting on condition of plant specifically to determine the need for repairs, replacements, rearrangements and changes and inspecting and testing the adequacy of repairs which have been made. 3. Work performed specifically for the purpose of preventing failure, restoring serviceability or maintaining life of plant. Date Created: August 11, 2005 Page 19 Date Updated: May 8, 2006

21 May 8, Rearranging and changing the location of plant not retired. 5. Repairing for reuse materials recovered from plant, that do not qualify as a betterment as set out by CICA Handbook Section Testing for locating and clearing trouble. 7. Net cost of installing, maintaining, and removing temporary facilities to prevent interruptions in service. 8. Replacing or adding plant which does not constitute a capital asset. (See Electric Plant Instruction 11) 3. Rents. A. The rent expense Account, 931, Rents shall include all rents, (for field offices, retail offices and head office) for property used in utility operations, except: (1) minor amounts paid for occasional or infrequent use of any property or equipment and all amounts paid for use of equipment that, if owned, would be includible in plant accounts 391 to 398, inclusive, which shall be treated as an expense item and included in the appropriate functional account and (2) rents which are chargeable to clearing accounts, and distributed to the appropriate account. If rents cover property used for more than one function, such as production and transmission, or by more than one department, the rents shall be apportioned to the appropriate rent expense or clearing accounts of each department on an actual, or, if necessary, an estimated basis. B. When a portion of property or equipment rented from others for use in connection with utility operations is subleased, the revenue derived from such subleasing shall be credited to Account 451.2, Miscellaneous revenue - other. C. The cost, when incurred by the lessee, of operating and maintaining leased property, shall be charged to the accounts appropriate for the expense if the property were owned. D. The cost incurred by the lessee of additions and replacements to electric plant leased from others shall be accounted for as provided in Electric Plant Instruction Training Costs. When it is necessary that employees be trained to specifically operate or maintain plant facilities, the related costs shall be accounted for as a current operating and maintenance expense. These expenses shall be charged to the appropriate functional accounts currently as they are incurred. 5. Labour, Benefits, Contractor Services and Other, Utilities need to be able to provide the breakdown of all functions (power production expenses, transmission expenses, distribution expenses, customer accounts expenses, customer service and informational expenses, sales expenses, administrative and general expenses, and load settlement expenses by labour, benefits, contractor services (including consultants), and other). Balance Sheet Chart of Accounts ASSETS AND OTHER DEBITS 1. UTILITY PLANT 101 Electric plant in service Property under capital leases 103 Experimental electric plant unclassified 104 Electric plant leased to others 105 Electric plant held for future use 107 Construction work in progress Electric 108 Accumulated provision for depreciation of electric utility plant Date Created: August 11, 2005 Page 20 Date Updated: May 8, 2006

22 May 8, Gross value of contributions Accumulated provision for amortization of contributions 114 Electric plant acquisition adjustments 115 Accumulated provision for amortization of electric plant acquisition adjustments 2. OTHER PROPERTY AND INVESTMENTS 121 Non-utility property 122 Accumulated provision for depreciation and amortization of non-utility property 123 Investment in associated companies Investment in subsidiary companies 124 Other investments 3. CURRENT AND ACCRUED ASSETS 131 Cash 142 Accounts receivable 144 Accumulated provision for uncollectible accounts credit 146 Accounts receivable from associated companies 151 Fuel stock 154 Plant materials and operating supplies 155 Merchandise 156 Other materials and supplies 165 Prepayments 174 Miscellaneous current and accrued assets 181 Unamortized debt expense Unamortized Preferred Share expense Regulatory assets Other regulatory assets 186 Miscellaneous deferred debits 190 Accumulated future income taxes 201 Common stock issued 204 Preferred stock issued 211 Partner s equity 216 Retained earnings 4. DEFERRED DEBITS LIABILITIES AND OTHER CREDITS 221 Bonds & other long-term debt 223 Advances from associated companies 225 Unamortized premium on long-term debt 226 Unamortized discount on long-term debt Debit 227 Obligations under capital lease non-current Accumulated provision for self insurance 230 Asset retirement obligations 232 Accounts payable & accrued liabilities 234 Accounts payable to associated companies 235 Customer deposits 236 Current income taxes payable 239 Matured long-term and short term debt 242 Miscellaneous current and accrued liabilities 243 Obligations under capital leases current 5. PROPRIETARY CAPITAL 6. LONG-TERM DEBT 7. OTHER NONCURRENT LIABILITIES 8. CURRENT AND ACCRUED LIABILITIES 9. DEFERRED CREDITS Date Created: August 11, 2005 Page 21 Date Updated: May 8, 2006

23 May 8, Customer advances for construction 253 Other deferred credits 254 Regulatory liabilities Regulatory liabilities Other regulatory liabilities 281 Accumulated future income taxes Balance Sheet Accounts 101 Electric plant in service A. This account shall include the original cost of electric plant, included in accounts 301 to 399.2, prescribed herein, owned and used by the Utility in its electric utility operations, and having an expectation of life in service of more than one year from date of installation, including such property owned by the Utility but held by nominees. B. The cost of additions to and betterments of property leased from others, Account Leasehold improvements are includible in this account, shall be recorded in subdivisions separate and distinct from those relating to owned property. (See Electric Plant Instruction 7) Property under capital leases A. This account shall include the amount recorded under capital leases for plant leased from others and used by the Utility in its utility operations. B. The electric property included in this account shall be classified separately according to the detailed accounts (301 to 399.2) prescribed for electric plant in service. C. Records shall be maintained with respect to each capital lease reflecting: (1) name of lessor, (2) basic details of lease, (3) terminal date, (4) original cost or fair market value of property leased, (5) future minimum lease payments, (6) executory costs, (7) present value of minimum lease payments, (8) the amount representing interest and the interest rate used, and (9) expenses paid. Records shall also be maintained for plant under a lease, to identify the asset retirement obligation and cost originally recognized for each lease and the periodic charges and credits made to the asset retirement obligations and asset retirement costs. 103 Experimental electric plant unclassified A. This account shall include the cost of electric plant which was constructed as a research, development, and demonstration plant under the provisions of paragraph C, Account 107, Construction work in progress electric, and due to the nature of the plant it is desirous to operate it for a period of time in an experimental status. B. Amounts in this account shall be transferred to Account 101, Electric plant in service, or Account 121, Non-utility property as appropriate when the project is no longer considered as experimental. C. The Depreciation on plant in this account shall be charged to Account 403, Depreciation expense, and Account 403.1, Depreciation expense for asset retirement costs, as appropriate, and credited to Account 108, Accumulated provision for Depreciation of electric utility plant. The amounts herein shall be depreciated over a period which corresponds to the estimated useful life of the relevant project considering the characteristics involved. However, when projects are transferred to Account 101, Electric plant in service, a new Depreciation rate based on the remaining service life and undepreciated amounts, will be established. Date Created: August 11, 2005 Page 22 Date Updated: May 8, 2006

24 May 8, 2006 D. Records shall be maintained with respect to each unit of experiment so that full details may be obtained as to the cost, Depreciation and the experimental status. E. Should it be determined that experimental plant recorded in this account will fail to satisfactorily perform its function, the costs thereof shall be accounted for as directed or authorized by the Board. 104 Electric plant leased to others A. This account shall include the original cost of electric plant owned by the Utility, but leased to others as operating units or systems, where the lessee has exclusive possession. B. The property included in this account shall be classified according to the detailed accounts (301 to 399.2) prescribed for electric plant in service and this account shall be maintained in such detail as though the property were used by the owner in its utility operations. 105 Electric plant held for future use A. This account shall include the original cost of electric plant (except land and land rights) owned and held for future use in electric service under a definite plan for such use, to include: (1) Property acquired (except land and land rights) but never used by the Utility in electric service, but held for such service in the future under a definite plan, and (2) property (except land and land rights) previously used by the Utility in service, but retired from such service and held pending its reuse in the future, under a definite plan, in electric service. B. This account shall also include the original cost of land and land rights owned and held for future use in electric service under a plan for such use, to include land and land rights: (1) Acquired but never used by the Utility in electric service, but held for such service in the future under a plan, and (2) previously, held by the Utility in service, but retired from such service and held pending its reuse in the future under a plan, in electric service. (See Electric Plant Instruction 8) C. In the event that property recorded in this account shall no longer be needed or appropriate for future utility operations, the Utility shall request Board approval of journal entries to remove such property from this account when the gain realized from the sale or other disposition of the property is material, prior to their being recorded. Such filings shall include the description and original cost of individual properties removed from this account, the accounts charged upon removal, and any associated gains realized upon disposition of such property. D. Gains or losses from the sale of land and land rights or other disposition of such property previously recorded in this account and not placed in utility service shall be recorded directly in Account Gains / Losses from disposition of utility plant. E. The property included in this account shall be classified according to the detail accounts (301 to 399.2) prescribed for electric plant in service and the account shall be maintained in such detail as though the property were in service. NOTE: Materials and supplies, and all assets held in reserve, and normal spare capacity of plant in service shall not be included in this account. 107 Construction work in progress Electric A. This account shall include the total of the balances of work orders for electric plant in process of construction. B. Work orders shall be cleared from this account as soon as practicable after completion of the job. Further, if a project, such as a hydroelectric project, a steam station or a transmission line, is designed to consist of two or more units or circuits which may be placed in service at different dates, any expenditures which are common to and which will be used in the operation of the project as a whole shall be included in electric plant in service upon the completion and the readiness for service of the first unit. Any expenditures which are identified exclusively with units of property not yet in service shall be included in this account. Date Created: August 11, 2005 Page 23 Date Updated: May 8, 2006

25 May 8, 2006 C. Expenditures on research, development, and demonstration projects for construction of utility facilities are to be included in a separate subdivision in this account. Records must be maintained to show separately each project along with complete detail of the nature and purpose of the RD&D project together with the related costs. 108 Accumulated provision for Depreciation of electric utility plant A. This account shall be credited with the following: Note: (1) Amounts charged to Account 403, Depreciation expense, or to clearing accounts for current depreciation expense for electric plant in service. (2) Amounts charged to Account 403.1, Depreciation expense for asset retirement costs, for current depreciation expense charged to the applicable asset retirement cost account to such property. (3) Amounts charged to Account 419, Interest, dividend and other income for Depreciation expense on property included in Account 105, Electric plant held for future use. Include, also, the balance of accumulated provision for Depreciation on property when transferred to Account 105, Electric plant held for future use, from other property accounts. Normally Account 108 will not be used for current Depreciation provisions because, as provided herein, the service life during which Depreciation is computed commences with the date property is includible in electric plant in service; however, if special circumstances indicate the propriety of current accruals for Depreciation, such charges shall be made to Account 419, Interest, dividend and other income. (4) Amounts charged to Account 413, Expenses of electric plant leased to others, for electric plant included in account 104, Electric plant leased to 0thers. (5) Amounts of Depreciation applicable to electric properties acquired as operating units or systems. (See Electric Plant Instruction 6) (6) Amounts of Depreciation applicable to electric plant donated to the Utility. (The Utility shall maintain separate sub-accounts for depreciation and sub accounts by plant account for accumulated Depreciation applicable to electric plant in service, electric plant leased to others and electric plant held for future use.) Depreciation expense also includes amortization expense, where applicable, excluding the amortization of customer contributions. B. At the time of retirement of depreciable electric utility plant, this account shall be charged with the book cost of the property retired and the cost of removal and shall be credited with the salvage value and any other amounts recovered, such as insurance or self insurance. When retirement, costs of removal and salvage are entered originally in retirement work orders, the net total of such work orders may be included in a separate sub-account hereunder. Upon completion of the work order, the proper distribution to subdivisions of this account shall be made as provided in the following paragraph. C. For general ledger and balance sheet purposes, this account shall be regarded and treated as a single composite provision for Depreciation. For purposes of analysis, however, each Utility shall maintain subsidiary records in which this account is segregated according to the following functional classification for electric plant: (1) Hydraulic production, (2) Other production, (3) Transmission, (4) Distribution, and (5) General. These subsidiary records shall reflect the current credits and debits to this account in sufficient detail to show separately for each such functional classification: (a) the amount of accrual for Depreciation, (b) the book cost of property retired, (c) cost of removal, (d) salvage, and (e) other items, including recoveries from insurance, or self insurance. Separate subsidiary records shall be maintained for the amount of accrued cost of removal other than legal obligations for the retirement of plant recorded in Account 108, Accumulated provision for Depreciation of electric utility plant Date Created: August 11, 2005 Page 24 Date Updated: May 8, 2006

26 May 8, 2006 D. When transfers of plant are made from one electric plant account to another, or from or to another utility department, or from or to non-utility property accounts, the accounting for the related accumulated provision for Depreciation shall be as provided in Electric Plant Instruction 13. E. The Utility is restricted in its use of the accumulated provision for Depreciation to the purposes set forth above. It shall not transfer any portion of this account to retained earnings or make any other use thereof without authorization by the Board Gross value of contributions This account shall include amounts relating to contributions or grants in cash, services or property from governments or government agencies, corporations, individuals and others received in aid of construction or for acquisition of fixed assets Accumulated provision for Amortization of contributions This account shall be debited with the total amount charged to Account 403, Depreciation expense, for the current Amortization of customer contributions, or contributions in aid of construction. This shall be tracked by rate class. 114 Electric plant acquisition adjustments A. This account shall include the difference between (1) the cost to the accounting Utility of electric plant acquired as an operating unit or system by purchase, merger, consolidation, liquidation, or otherwise, and (2) the original cost, estimated, if not known, of such property, less the amount or amounts credited by the accounting Utility at the time of acquisition to accumulated provisions for Depreciation and Amortization and contributions in aid of construction with respect to such property. B. Debit amounts recorded in this account related to plant and land acquisition may be amortized to Account 406, Amortization of electric plant acquisition adjustments, over a period not longer than the estimated remaining life of the properties to which such amounts relate, as appropriate per CICA guidelines. Amounts related to the acquisition of land only may be amortized to Account 406 over a period of not more than 15 years. Should a Utility wish to account for debit amounts in this account in any other manner, it shall petition the Board for authority to do so. Credit amounts recorded in this account shall be accounted for as directed by the Board. 115 Accumulated provision for Amortization of electric plant acquisition adjustments This account shall be credited or debited with amounts which are includible in Account 406, Amortization of electric plant acquisition adjustments for the purpose of providing for the extinguishment of amounts in Account 114, Electric plant acquisition adjustments, in instances where the amortization of Account 114 is not being made by direct write-off of the account. 121 Non-utility property A. This account shall include the book cost of land, structures, equipment, or other tangible or intangible property owned by the Utility, but not used in utility service and not properly includible in Account 105, Electric plant held for future use. This account shall also include, where applicable, amounts recorded for asset retirement costs associated with non-utility plant. B. This account shall also include the amount recorded under capital leases for property leased from others and used by the Utility in its non-utility operations. Records shall be maintained with respect to each lease reflecting: (1) name of lessor, (2) basic details of lease, (3) terminal date, (4) original cost or fair market value of property leased, (5) future minimum lease payments, (6) executory costs, (7) present value of minimum lessee payments, Date Created: August 11, 2005 Page 25 Date Updated: May 8, 2006

27 May 8, 2006 (8) the amount representing interest and the interest rate used, and (9) expenses paid. C. This account shall be subdivided so as to show the amount of property used in operations which are non-utility in character but nevertheless constitute a distinct operating activity of the company (such as operation of an ice department where such activity is not classed as a utility) and the amount of miscellaneous property not used in operations. The records in support of each sub-account shall be maintained so as to show an appropriate classification of the property. NOTE: The gain from the sale or other disposition of property included in this account which had been previously recorded in Account 105, Electric plant held for future use, shall be accounted for in accordance with paragraph C of Account Accumulated provision for Depreciation and Amortization of non-utility property This account shall include the accumulated provision for Depreciation and Amortization applicable to nonutility property. 123 Investment in Associated Companies A. This account shall include the book cost of investments in securities issued or assumed by Associated Companies and investment advances to such companies, including interest accrued thereon when such interest is not subject to current settlement, provided that the investment does not relate to a Subsidiary Company. (If the investment relates to a Subsidiary Company it shall be included in Account 123.1, Investment in subsidiary companies.) Include the offsetting entry to the recording of amortization of discount or premium on interest bearing investments. (See Account 419, Interest, dividend and other income.) B. This account shall be maintained in such manner as to show the investment in securities of, and advances to, each Associated Company together with full particulars regarding any of such investments that are pledged. NOTE A: Securities and advances of Associated Companies owned and pledged shall be included in this account, but such securities, if held in special deposits or in special funds, shall be included in the appropriate deposit or fund account. A complete record of securities pledged shall be maintained. NOTE B: Securities of Associated Companies held as temporary cash investments are includible in Account 131, Cash. NOTE C: Balances in open accounts with Associated Companies, which are subject to current settlement, are includible in Account 146, Accounts receivable from Associated Companies. NOTE D: The Utility may write down the cost of any security in recognition of a decline in the value thereof. Securities shall be written off or written down to a nominal value if there is no reasonable prospect of substantial value. Fluctuations in market value shall not be recorded but a permanent impairment in the value of securities shall be recognized in the accounts. When securities are written off or written down, the amount of the adjustment shall be charged to Account 426.5, Other deductions, or to an appropriate account for accumulated provisions for loss in value established as a separate subdivision of this account Investment in Subsidiary Companies A. This account shall include the cost of investments in securities issued or assumed by Subsidiary Companies and investment advances to such companies, including interest accrued thereon when such interest is not subject to current settlement plus the equity in undistributed earnings or losses of such subsidiary companies since acquisition. This account shall be credited with any dividends declared by such subsidiaries. B. This account shall be maintained in such a manner as to show separately for each subsidiary: the cost of such investments in the securities of the subsidiary at the time of acquisition; the amount of equity in the subsidiary s undistributed net earnings or net losses since acquisition; advances or Date Created: August 11, 2005 Page 26 Date Updated: May 8, 2006

28 May 8, 2006 loans to such subsidiary; and full particulars regarding any such investments that are pledged. 124 Other investments A. This account shall include the book cost of investments in securities issued or assumed by nonassociated companies, investment advances to such companies, and any investments not accounted for elsewhere. This account shall also include unrealized holding gains and losses on trading and available-for-sale types of security investments. Include also the offsetting entry to the recording of amortization of discount or premium on interest bearing investments. (See Account 419, Interest, dividend and other income) B. The cost of capital stock of the Utility reacquired by it under a definite plan for resale pursuant to authorization by the Board of Directors of the Utility may, if permitted by law, be included in a separate subdivision of this account. C. The records shall be maintained in such manner as to show the amount of each investment and the investment advances to each person. NOTE A: Securities owned and pledged shall be included in this account, but securities held in special deposits or in special funds shall be included in appropriate deposit or fund accounts. A complete record of securities pledged shall be maintained. NOTE B: Securities held as temporary cash investments shall not be included in this account. NOTE C: Special funds. See Note D of Account 123, Investment in associated companies. Special Instructions for Current and Accrued Assets: Current and accrued assets are cash, those assets which are readily convertible into cash or are held for current use in operations or construction, current claims against others, payment of which is reasonably assured, and amounts accruing to the Utility which are subject to current settlement, except such items for which accounts other than those designated as current and accrued assets are provided. There shall not be included in the group of accounts designated as current and accrued assets any item, the amount or collectibility of which is not reasonably assured, unless an adequate provision for possible loss has been made therefore. Items of current character but of doubtful value may be written down and for record purposes carried in these accounts at nominal value. 131 Cash A. This account shall include the amount of current cash funds. B. This account shall include special deposits with fiscal agents or others for the payment of interest. C. This account shall include special deposits with fiscal agents or others for the payment of dividends. D. This account shall include deposits with fiscal agents or others for special purposes other than the payment of interest and dividends. Such special deposits may include cash deposited with federal, provincial, or municipal authorities as a guaranty for the fulfillment of obligations; cash deposited with trustees to be held until mortgaged property sold, destroyed, or otherwise disposed of is replaced; cash realized from the sale of the accounting Utility s securities and deposited with trustees to be held until invested in property of the Utility, etc. Entries to this account shall specify the purpose for which the deposit is made. NOTE: Further, deposits for more than one year, which are not offset by current liabilities, shall not be charged to this account but to Account 124, Other investments. E. This account shall include the book cost of investments, such as demand and time loans, bankers acceptances, Government of Canada investment certificates, marketable securities, and other similar investments, acquired for the purpose of temporarily investing cash. F. This account shall be so maintained as to show separately temporary cash investments in securities of associated companies and of others. Records shall be kept of any pledged investments. 142 Accounts receivable This account shall include all receivables other than those amounts due from Associated Companies. (See Date Created: August 11, 2005 Page 27 Date Updated: May 8, 2006

29 May 8, 2006 Account 146, Accounts receivable from Associated Companies.) Examples of receivables included in this account are: Advances to officer, agents, employees, and others as to petty cash or working funds Notes receivable Amounts due the Utility on subscription to capital stock Interest due on bonds, mortgages, and commercial paper Rents receivable or accrued on property rented or leased by the Utility to others Estimated amounts accrued for service rendered but not billed at the end of accounting period Undistributed balances in clearing accounts Amounts due from customers 144 Accumulated provision for uncollectible accounts credit A. This account shall be credited with amounts provided for losses on accounts receivable which may become uncollectible, and also with collections on accounts previously charged hereto. Concurrent charges shall be made to Account 904, Uncollectible accounts, for amounts applicable to utility operations, and to corresponding accounts for other operations. Records shall be maintained so as to show the write-offs of account receivable for each utility department. B. This account shall be subdivided to show the provision applicable to the following classes of accounts receivable: Utility customers. Merchandising, jobbing and contract work. Officers and employees. Others. NOTE A: Accretions to this account shall not be made in excess of a reasonable provision against losses of the character provided for. NOTE B: If provisions for uncollectible notes receivable or for uncollectible receivables from associated companies are necessary, separate sub-accounts therefore shall be established under the account in which the receivable is carried. 146 Accounts receivable from associated companies This account shall include receivables due, notes and drafts upon which associated companies are liable, and which mature and are expected to be paid in full not later than one year from the date of issue, together with any interest thereon. Items which do not bear a specified due date but which have been carried for more than twelve months and items which are not paid within twelve months from due date shall be transferred to Account 123, Investment in associated companies. NOTE: The face amount of notes receivable discounted, sold or transferred without releasing the Utility from liability as endorser thereon, shall be credited to a separate subdivision of this account and appropriate disclosure shall be made in financial statements of any contingent liability arising from such transactions. 151 Fuel stock This account shall include the book cost of fuel on hand. EXAMPLE ITEMS 1. Invoice price of fuel less any cash or other discounts. 2. Freight, switching, demurrage and other transportation charges, not including, however, any charges for unloading from the shipping medium. 3. Excise taxes, purchasing agents commissions, insurance and other expenses directly assignable to cost of fuel. 4. Operating, maintenance and depreciation expenses and ad valorem taxes on Utility owned Date Created: August 11, 2005 Page 28 Date Updated: May 8, 2006

30 May 8, 2006 transportation equipment used to transport fuel from the point of acquisition to the unloading point. 5. Lease or rental costs of transportation equipment used to transport fuel from the point of acquisition to the unloading point. 154 Plant materials and operating supplies A. This account shall include the cost of materials purchased primarily for use in the Utility business for construction, operation and maintenance purposes. This account shall include also the book cost of materials recovered in connection with construction, maintenance or the retirement of property, such materials being credited to construction, maintenance or accumulated depreciation provision, respectively, and included herein as follows: (1) Reusable materials consisting of large individual items shall be included in this account at net book value, estimated if not known. (2) Reusable materials consisting of relatively small items, the identity of which (from the date of original installation to the final abandonment or sale thereof) cannot be ascertained without undue refinement in accounting, shall be included in this account as a percentage of current inventory value for such items. NOTE: The cost of refurbishing reusable items shall be charged to this account in accordance with criterion set out in CICA Handbook 3030 and 3061, otherwise charge repairing such items to the appropriate expense account as indicated by previous use. (3) Scrap and non-usable materials included in this account shall be carried at the estimated net amount realizable therefrom. The difference between the amounts realized for scrap and non-usable materials sold and the net amount at which the materials were carried in this account, as far as practicable, shall be adjusted to the accounts credited when the materials were charged to this account. B. Materials and supplies issued shall be credited hereto and charged to the appropriate construction, operating expense, or other 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 standards consistently applied. EXAMPLE ITEMS 1. Invoice price of materials less cash or other discounts. 2. Freight, switching or other transportation charges when practicable to include as part of the cost of particular materials to which they relate. 3. Customs duties and excise taxes. 4. Costs of inspection and special tests prior to acceptance. 5. Insurance and other directly assignable charges. NOTE A: Where expenses applicable to materials purchased cannot be directly assigned to particular purchases, they may be charged to a stores expense clearing account and distributed to the appropriate account. NOTE B: When materials and supplies are purchased for immediate use, they need not be carried through this account but may be charged directly to the appropriate utility plant or expense account. NOTE C: This account shall not include items held in emergency stores. 155 Merchandise This account shall include the book cost of materials and supplies and appliances and equipment held primarily for retail sales. The principles prescribed in accounting for Utility materials and supplies shall be observed in respect to items carried in this account. EXAMPLE ITEMS 1. Appliances 2. Air Conditioners 3. Water Heaters Date Created: August 11, 2005 Page 29 Date Updated: May 8, 2006

31 May 8, Other materials and supplies This account shall include the book cost of materials and supplies held primarily for non-utility purposes. The principles prescribed in accounting for Utility materials and supplies shall be observed in respect to items carried in this account. 165 Prepayments This account shall include amounts representing prepayments of insurance, rents, taxes (excluding income tax installments which are included in Account 236, Current income taxes payable), interest and miscellaneous items, and shall be kept or supported in such manner as to disclose the amount of each class of prepayment. 174 Miscellaneous current and accrued assets This account shall include the book cost of all other current and accrued assets, appropriately designated and supported so as to show the nature of each asset included herein. 181 Unamortized debt expense This account shall include expenses related to the issuance or assumption of debt securities. Amounts recorded in this account shall be Amortized over the life of each respective issue under a plan which will distribute the amount equitably over the life of the security. The Amortization shall be on a monthly basis, and the amounts thereof shall be charged to Accounts 431 Short term interest and other interest expense, or 427, Interest on long-term debt as appropriate. Any unamortized amounts outstanding at the time that the related debt is prematurely reacquired shall be accounted for as indicated in General Instruction Unamortized Preferred Share expense This account shall include expenses related to the issuance of preferred shares. Amounts recorded in this account shall be Amortized over the life of each respective issue under a plan which will distribute the amount equitably over the life of the security. The Amortization shall be on a monthly basis, and the amounts thereof shall be charged to Accounts 431 Short term interest and other interest expense, or 427, Interest on long-term debt as appropriate. Any unamortized amounts outstanding at the time that the related preferred shares are prematurely reacquired shall be accounted for as indicated in General Instruction Regulatory Assets A. This account shall include the amounts of regulatory-created assets, not includible in other accounts, resulting from the ratemaking actions of regulatory agencies. (See Definition 26) B. The amounts included in this account are to be established by those charges which would have been included in net income, determinations in the current period under the general requirements of the Uniform System of Accounts but for it being probable that such items will be included in a different period(s) for purposes of developing rates that the Utility is authorized to charge for its utility services. When specific identification of the particular source of a Regulatory Asset cannot be made, such as in plant phase-ins, rate moderation plans, or rate levelization plans, Account 407.4, Regulatory credits, shall be credited. The amounts recorded in this account are generally to be charged, concurrently with the recovery of the amounts in rates, to the same account that would have been charged if included in income when incurred, except all Regulatory Assets established through the use of Account shall be charged to Account 407.3, Regulatory debits, concurrent with the recovery in rates. C. If rate recovery of all or part of an amount included in this account is disallowed, the disallowed amount shall be charged to Account 426.5, Other deductions, or Account 435, Extraordinary deductions, in the year of the disallowance. D. The records supporting the entries to this account shall be kept so that the Utility can furnish full information as to the nature and amount of each regulatory asset included in this account, including justification for inclusion of such amounts in this account Other Regulatory Assets The asset amounts included in this account would include any Regulatory Assets created outside of the (GTA) for which Utilities make separate application. Date Created: August 11, 2005 Page 30 Date Updated: May 8, 2006

32 May 8, 2006 Follow guidelines as outlined in Account 182.3, Regulatory Assets when charging this account. EXAMPLE ITEMS: 1. Transmission deferral, 2. A-1 rider, etc. 186 Miscellaneous deferred debits A. This account shall include all debits not elsewhere provided for, such as miscellaneous work in progress, and unusual or extraordinary expenses, not included in other accounts, which are in process of amortization and items the proper final disposition of which is uncertain. B. Records supporting the entries to this account shall be so kept that the Utility can furnish full information as to each deferred debit included herein. 190 Accumulated future income taxes This deferred debit account is provided to record future income taxes in accordance with the CICA Handbook Section An equal amount is charged to Account 410.1, Provision for future income taxes, utility operating income. Future income tax assets (Account 190) and liabilities (Account 281) should be netted for financial statement presentation purposes. 201 Common stock issued A. This account shall include the stated or assigned value of common shares of each class issued. B. When capital stock is retired, this account shall be charged with the amount at which such stock is carried herein. C. A separate ledger account shall be maintained for each class and series of common shares. The supporting records shall show the shares nominally issued, actually issued, and nominally outstanding. 204 Preferred stock issued A. This account shall include the stated or assigned value of preferred shares of each class issued. B. When capital stock is retired, these accounts shall be charged with the amount at which such stock is carried herein. C. A separate ledger account, with a descriptive title, shall be maintained for each class and series of stock. The supporting records shall show the shares nominally issued, actually issued, and nominally outstanding. 211 Partner s equity This account shall include the balance of all other credits for partner s equity which is not properly includible in the foregoing accounts. 216 Retained Earnings This account shall include the balances, either debit or credit, of Retained Earnings arising from earnings of the Utility. This account shall be debited with any dividends declared, payable or paid by the Utility. This account shall not include any amounts representing the undistributed earnings of subsidiary companies. 221 Bonds & other long-term debt A. This account shall include in a separate subdivision for each class and series of bonds the face value of the actually issued and un-matured bonds which have not been retired or canceled; also the face value of such bonds issued by others the payment of which has been assumed by the Utility. B. This account shall include, until maturity all long-term debt not otherwise provided for. This covers Date Created: August 11, 2005 Page 31 Date Updated: May 8, 2006

33 May 8, 2006 such items as receivers certificates, real estate mortgages executed or assumed, assessments for public improvements, notes and unsecured certificates of indebtedness not owned by associated companies, receipts outstanding for long-term debt, and other obligations maturing more than one year from date of issue or assumption. C. Separate accounts shall be maintained for each class of obligation, and records shall be maintained to show for each class all details as to date of obligation, date of maturity, interest dates and rates, security for the obligation, etc. 223 Advances from associated companies A. This account shall include the long-term portion of notes and other payables, to associated companies not otherwise provided for and the amount of open book accounts representing advances from associated companies. It does not include notes and open accounts representing indebtedness subject to current settlement which are includible in Account 234, Accounts payable to associated companies B. The records supporting the entries to this account shall be so kept that the Utility can furnish complete information concerning each note and open account. 225 Unamortized premium on long-term debt A. This account shall include the excess of the cash value of consideration received over the face value upon the issuance or assumption of long-term debt securities. B. Amounts recorded in this account shall be Amortized over the life of each respective issue under a plan which will distribute the amount equitably over the life of the security. The Amortization shall be on a monthly basis, with the amounts thereof to be credited to Account 427, Interest on longterm debt or Account 431, Short term interest and other interest expense as appropriate.. (See General Instruction 15) 226 Unamortized discount on long-term debt Debit A. This account shall include the excess of the face value of long-term debt securities over the cash value of consideration received therefore, related to the issue or assumption of all types and classes of debt. B. Amounts recorded in this account shall be Amortized over the life of the respective issues under a plan which will distribute the amount equitably over the life of the securities. The Amortization shall be on a monthly basis, with the amounts thereof charged to Account 427, Interest on long-term debt or Account 431, Short term interest and other interest expense as appropriate. (General Instruction 15) 227 Obligations under capital lease non-current This account shall include the portion not due within one year, of the obligations recorded for the amounts applicable to leased property recorded as assets in Account 101.1, Property under capital leases, or Account 121, Non-utility property Accumulated provision for self insurance A. This account shall include amounts reserved by the Utility for losses through accident, fire, flood, or other hazards to its own property or property leased from others, and for losses for bodily injury and property damage to third parties, not covered by insurance. The amounts charged to Account 925, Injuries and damages, or other appropriate accounts to cover such risks shall be credited to this account. A schedule of risks covered shall be maintained, giving a description of the property involved, the character of the risks covered and the rates used. This account shall be debited by amounts actually incurred by the Utility for the losses noted above. B. Charges shall be made to this account for losses covered. Details of these charges shall be maintained according to the year the casualty occurred which gave rise to the loss. All claims charged to this account will be subject to scrutiny by the Board and interested parties and the Date Created: August 11, 2005 Page 32 Date Updated: May 8, 2006

34 May 8, 2006 onus will be on the utility to justify that customers should bear the costs 230 Asset retirement obligations A. This account shall include the amount of liabilities for the recognition of asset retirement obligations related to electric utility plant and non-utility plant that gives rise to the obligations. This account shall be credited for the amount of the liabilities for asset retirement obligations with amounts charged to the appropriate electric utility plant accounts or non-utility plant account to record the related asset retirement costs. B. The Utility shall charge the accretion expense to Account , Accretion expense from asset retirement obligation, for electric utility plant, Account 413, Expenses of electric plant leased to others, for electric plant leased to others, as appropriate, and credit Account 230, Asset retirement obligations. C. This account shall be debited with amounts paid to settle the asset retirement obligations recorded herein. D. The Utility shall clear from this account any gains or losses resulting from the settlement of asset retirement obligations in accordance with the instructions prescribed in General Instruction Accounts payable & accrued liabilities This account shall include all amounts payable by the Utility within one year, which are not provided for in other accounts. Examples that are to be included in this account are: Amounts invoiced for goods and services that have been invoiced but are unpaid at the end of the accounting period. Accruals for wages and salaries including source deductions and employee benefits that are unpaid at the end of the accounting period. Amounts for goods and services that have been received by the Utility but invoices have not been received at the end of the accounting period. 234 Accounts payable to associated companies These accounts shall include amounts owing to associated companies on notes, drafts, acceptances, or other similar evidences of indebtedness, and open accounts payable on demand or not more than one year from date of issue or creation. NOTE: Exclude from these accounts notes and accounts which are includible in Account 223, Advances from associated companies. 235 Customer deposits This account shall include all amounts deposited with the Utility by customers as security for the payment of bills. 236 Current income taxes payable A. This account shall be credited with the amount of taxes accrued during the accounting period, corresponding debits being made to the appropriate accounts for tax charges. Such credits may be based upon estimates, but from time to time during the year as the facts become known, the amount of the periodic credits shall be adjusted so as to include as nearly as can be determined in each year the taxes applicable thereto. Any amount representing a prepayment of taxes applicable to the period subsequent to the date of the balance sheet, shall be shown under Account 165, Prepayments. B. If accruals for taxes are found to be insufficient or excessive, correction therefore shall be made through current tax accruals. Date Created: August 11, 2005 Page 33 Date Updated: May 8, 2006

35 May 8, 2006 C. Accruals for taxes shall be based upon the net amounts payable after credit for any discounts, and shall not include any amounts for interest on tax deficiencies or refunds. Interest received on refunds shall be credited to Account 419, Interest, dividend and other income, and interest paid on deficiencies shall be charged to Account 431, Short-term interest and other interest expense. D. The records supporting the entries to this account shall be kept so as to show for each class of taxes, the amount accrued, the basis for the accrual, the accounts to which charged, and the amount of tax paid. E. This account shall be debited with the amount of installments paid during the accounting period. 239 Matured long-term and short-term debt A. This account shall include the amount of long-term debt (including any obligation for premiums) matured and unpaid, without specific agreement for extension of the time of payment and bonds called for redemption but not presented and the amount of long-term debt classified as short term. B. This account shall include the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness, payable on demand or within a time not exceeding one year from date of issue, to other than associated companies. 242 Miscellaneous current and accrued liabilities This account shall include the amount of all other current and accrued liabilities not provided for elsewhere appropriately designated and supported so as to show the nature of each liability. EXAMPLE ITEMS 1. Dividends declared but not paid. 2. Accrued interest. 3. Taxes collected through payroll deductions or otherwise pending transmittal to the proper taxing authority. 243 Obligations under capital leases current This account shall include the portion, due within one year, of the obligations recorded for the amounts applicable to leased property recorded as assets in Account 101.1, Property under capital leases, or Account 121, Non-utility property. 252 Customer advances for construction This account shall include advances by customers for construction which are to be refunded either wholly or in part. When a customer is refunded the entire amount to which he is entitled, according to the agreement or rule under which the advance was made, the balance, if any, remaining in this account shall be credited to Account 111.1, Gross value of contributions. 253 Other deferred credits This account shall include advance billings and receipts and other deferred credit items, not provided for elsewhere, including amounts which cannot be entirely cleared or disposed of until additional information has been received. 254 Regulatory Liabilities Regulatory Liabilities A. This account shall include the amounts of regulatory liabilities, not includible in other accounts, imposed on the Utility by the ratemaking actions of regulatory agencies. (See Definition 26) B. The amounts included in this account are to be established by those credits which would have been included in net income, determinations in the current period under the general requirements of the Uniform System of Accounts but for it being probable that: Such items will be included in a different period(s) for purposes of developing the rates that the Utility is authorized to charge for its utility services; or refunds to customers, not provided for in other accounts, will be required. When Date Created: August 11, 2005 Page 34 Date Updated: May 8, 2006

36 May 8, 2006 specific identification of the particular source of the Regulatory Liability cannot be made or when the liability arises from revenues collected pursuant to tariffs on file at a regulatory agency, Account 407.3, Regulatory debits, shall be debited. The amounts recorded in this account generally are to be credited to the same account that would have been credited if included in income when earned except: All Regulatory Liabilities established through the use of Account shall be credited to Account 407.4, Regulatory credits; and in the case of refunds, a cash account or other appropriate account should be credited when the obligation is satisfied. C. If it is later determined that the amounts recorded in this account will not be returned to customers through rates or refunds, such amounts shall be credited to Account 434, Extraordinary income, as appropriate, in the year such determination is made. D. The records supporting the entries to this account shall be so kept that the Utility can furnish full information as to the nature and amount of each regulatory liability included in this account, including justification for inclusion of such amounts in this account Other Regulatory Liabilities The liabilities amounts included in this account would include any Regulatory Liability created outside of the (GTA) for which Utilities make separate application. Follow guidelines as outlined in Account 254.1, Regulatory Liabilities when charging to this account. EXAMPLE ITTEMS 1. Transmission deferral, 2. A-1 rider, etc. 281 Accumulated future income taxes This deferred credit account is provided to record future income taxes in accordance with the CICA Handbook Section An equal amount is charged to Account 410.1, Provision for future income taxes, utility operating income. Future income tax assets (Account 190) and liabilities (Account 281) should be netted for financial statement presentation purposes. 301 Organization 302 Franchises and consents 303 Miscellaneous intangible plant Electric Plant Chart of Accounts 1. INTANGIBLE PLANT 2. PRODUCTION PLANT A. HYDRAULIC PRODUCTION 330 Land Land rights 331 Structures and improvements 332 Reservoirs, dams, and waterways 333 Water wheels, turbines and generators 334 Accessory electric equipment 335 Miscellaneous power plant equipment 337 Asset retirement costs for hydraulic production plant D. OTHER PRODUCTION PLANT 340 Land Land rights 341 Structures and improvements 342 Fuel holders, producers, and accessories 343 Prime movers and generators 345 Accessory electric equipment 346 Miscellaneous power plant equipment Date Created: August 11, 2005 Page 35 Date Updated: May 8, 2006

37 May 8, TRANSMISSION PLANT 350 Land Land rights 352 Structures and improvements 353 Station equipment System communication & control 354 Towers and fixtures 355 Poles and fixtures 356 Overhead conductors and devices 358 Underground conductors and devices Asset retirement costs for transmission plant 4. DISTRIBUTION PLANT 360 Land Land rights 361 Structures and improvements 362 Station equipment System communication & control 363 Storage battery equipment 364 Poles, towers and fixtures 365 Overhead conductors and devices 367 Underground conductors and devices 368 Line transformers 370 Conventional meters 371 Automated meters 373 Street lighting and signal systems 374 Asset retirement costs for distribution plant 5. GENERAL PLANT 389 Land Land rights 390 Structures and improvements 391 Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications Load settlement software applications 392 Transportation equipment, fleet vehicles 394 Tools, shop, garage, stores and laboratory equipment 396 Power operated equipment 397 Mobile communication equipment 398 Miscellaneous equipment 399 Other tangible property Asset retirement costs for general plant Leasehold improvements Electric Plant Accounts 301 Organization This account shall include all fees paid to federal or provincial governments for the privilege of incorporation and expenditures incident to organizing the corporation, partnership, or other enterprise and putting it into readiness to do business. EXAMPLE ITEMS 1. Cost of obtaining certificates authorizing an enterprise to engage in the public-utility business. 2. Fees and expenses for incorporation 3. Fees and expenses for mergers or consolidations. 4. Office expenses incident to organizing the Utility. 5. Stock and minute books and corporate seal. NOTE A: This account shall not include any discounts upon securities issued or assumed; nor shall it include any costs incident to negotiating loans, selling bonds or other evidences of debt or Date Created: August 11, 2005 Page 36 Date Updated: May 8, 2006

38 May 8, 2006 expenses in connection with the authorization, issuance or sale of capital stock. NOTE B: Exclude from this account and include in the appropriate expense account the cost of preparing and filing papers in connection with the extension of the term of incorporation unless the first organization costs have been written off. When charges are made to this account for expenses incurred in mergers, consolidations, or reorganizations, amounts previously included herein or in similar accounts in the books of the companies concerned shall be excluded from this account. 302 Franchises and consents A. This account shall include amounts paid to the federal government, to a provincial or to a political subdivision thereof in consideration for franchises, consents, water power licenses, or certificates, running in perpetuity or for a specified term of more than one year, together with necessary and reasonable expenses incident to procuring such franchises, consents, water power licenses, or certificates of permission and approval, including expenses of organizing and merging separate corporations, where statutes require, solely for the purpose of acquiring franchises. B. If a franchise, consent, water power license or certificate is acquired by assignment, the charge to this account in respect thereof shall not exceed the amount paid therefore by the Utility to the assignor, nor shall it exceed the amount paid by the original grantee, plus the expense of acquisition to such grantee. Any excess of the amount actually paid by the Utility over the amount above specified shall be charged to Account 426.5, Other deductions. C. When any franchise has expired, the book cost thereof shall be credited hereto and charged to Account 426.5, Other deductions. D. Records supporting this account shall be kept so as to show separately the book cost of each franchise or consent. NOTE: Annual or other periodic payments under franchises shall not be included herein but in the appropriate operating expense account. 303 Miscellaneous intangible plant A. This account shall include the cost of patent rights, licenses, privileges, and other intangible property necessary or valuable in the conduct of utility operations and not specifically chargeable to any other account. B. When any item included in this ac-count is retired or expires, the book cost thereof shall be credited hereto and charged to Account 426.5, Other deductions. C. This account shall be maintained in such a manner that the Utility can furnish full information with respect to the amounts included herein. 330 Land This account shall include the cost of land used in connection with hydraulic power generation. (See Electric Plant Instruction 8) This account shall also include the cost of land used in connection with (1) the conservation of fish and wildlife, and (2) recreation. Separate sub-accounts shall be maintained for each of the above Land Rights This account shall include the cost of land rights used in connection with hydraulic power generation. (See Electric Plant Instruction 8) This account shall also include the cost of land rights used in connection with (1) the conservation of fish and wildlife, and (2) recreation. Separate sub-accounts shall be maintained for each of the above. 331 Structures and improvements This account shall include the cost in place of structures and improvements used in connection with hydraulic power generation. (See Electric Plant Instruction 9) This account shall also include the cost in Date Created: August 11, 2005 Page 37 Date Updated: May 8, 2006

39 May 8, 2006 place of structures and improvements used in connection with (1) the conservation of fish and wildlife, and (2) recreation. Separate sub-accounts shall be maintained for each of the above. 332 Reservoirs, dams, and waterways This account shall include the cost in place of facilities used for impounding, collecting, storage, diversion, regulation, and delivery of water used primarily for generating electricity. This account shall also include the cost in place of facilities used in connection with (a) the conservation of fish and wildlife, and (b) recreation. Separate sub-accounts shall be maintained for each of the above. (See Electric Plant Instruction 9C) EXAMPLE ITEMS 1. Bridges and culverts (when not a part of roads or railroads). 2. Clearing and preparing land. 3. Dams, including waste ways, spillways, flashboards, spillway gates with operating and control mechanisms, tunnels, gate houses, and fish ladders. 4. Dikes and embankments. 5. Electric system, including conductors control system, transformers, lighting fixtures, etc. 6. Excavation, including shoring, bracing, bridging, refill, and disposal of excess excavated material. 7. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 8. Intakes, including trash racks, rack cleaners, control gates and valves with operating mechanisms, and intake house when not a part of station structure. 9. Platforms, railings, steps, gratings, etc., appurtenant to structures listed herein. 10. Power line wholly identified with items included herein. 11. Retaining walls. 12. Water conductors and accessories, including canals, tunnels, flumes, penstocks pipe conductors, forebays, tailraces, navigation locks and operating mechanisms, waterhammer and surge tanks, and supporting trestles and structures. 13. Water storage reservoirs, including dams, flashboards, spillway gates and operating mechanisms, inlet and outlet tunnels, regulating valves and valve towers, silt and mud sluicing tunnels with valve or gate towers, and all other structures wholly identified with any of the foregoing items. 333 Water wheels, turbines and generators This account shall include the cost installed of water wheels and hydraulic turbines (from connection with penstock or flume to tailrace) and generators driven thereby devoted to the production of electricity by water power or for the production of power for industrial or other purposes, if the equipment used for such purposes is a part of the hydraulic power plant works. EXAMPLE ITEMS 1. Exciter water wheels and turbines, including runners, gates, governors, pressure regulators, oil pumps, operating mechanisms, scroll cases, draft tubes, and draft-tube supports. 2. Fire-extinguishing equipment. 3. Foundations and settings, specially constructed for and not expected to outlast the apparatus for which provided. 4. Generator cooling system, including air cooling and washing apparatus, air fans and accessories, air ducts, etc. 5. Generators main, a.c. or d.c., including field rheostats and connections for self-ex-cited units and excitation system when identified with the generating unit. 6. Lighting systems. 7. Lubricating systems, including gauges, filters, tanks, pumps, piping, etc. 8. Main penstock valves and appurtenances, including main valves, control equipment, bypass valves and fittings, and other accessories. 9. Main turbines and water wheels, including runners, gates, governors, pressure regulators, oil pumps, operating mechanisms, scroll cases, draft tubes, and draft-tube supports. 10. Mechanical meters and recording instruments. 11. Miscellaneous water-wheel equipment, including gauges, thermometers, meters, and other instruments. 12. Platforms, railings, steps, gratings, etc., appurtenant to apparatus listed herein. 13. Scroll case filling and drain system, including gates, pipe, valves, fittings, etc. 14. Water-actuated pressure-regulator system, including tanks and housings, pipes, valves, fittings and insulations, piers and anchorage, and excavation and backfill. Date Created: August 11, 2005 Page 38 Date Updated: May 8, 2006

40 May 8, Accessory electric equipment This account shall include the cost installed of auxiliary generating apparatus, conversion equipment, and equipment used primarily in connection with the control and switching of electric energy produced by hydraulic power and the protection of electric circuits and equipment, except electric motors used to drive equipment included in other accounts, such motors being included in the account in which the equipment with which they are associated is included. EXAMPLE ITEMS 1. Auxiliary generators, including Boards, compartments, switching equipment, control equipment, and connections to auxiliary power bus. 2. Excitation system, including motor, turbine, and dual-drive exciter sets and rheostats, storage batteries and charging equipment, circuit breakers, panels and accessories, knife switches and accessories, surge arresters, instrument shunts, conductors and conduit, special supports for conduit, generator field and exciter switch panels, exciter bus tie panels, generator and exciter rheostats, etc., special housings, protective screens, etc. 3. Generator main connections, including oil circuit breakers and accessories, disconnecting switches and accessories, operating mechanisms and interlocks, current transformers, potential transformers, protective relays, isolated panels and equipment, conductors and conduit, special supports for generator main leads, grounding switch, etc., special housings, protective screens, etc. 4. Station buses, including main, auxiliary, transfer, synchronizing, and fault ground buses, including oil circuit breakers and accessories, disconnecting switches and accessories, operating mechanisms and interlocks, reactors and accessories, voltage regulators and accessories, compensators, resistors starting transformers, current transformers, potential transformers, protective relays, storage batteries, and charging equipment, isolated panels and equipment, conductors and conduit, special supports, special fire-extinguishing system, and test equipment. 5. Station control system, including station switchboards with panel wiring panels with instruments and control equipment only, panels with switching equipment mounted or mechanically connected, truck type Boards complete, cubicles, station supervisory control devices, frequency control equipment, master clocks, watt-hour meter, station totalizing wattmeter, storage batteries, panels and charging sets, instrument transformers for supervisory metering, conductors and conduit, special supports for conduit, switchboards, batteries, special housings for batteries, protective screens, doors, etc. NOTE A: Do not include in this account transformers and other equipment used for changing the voltage or frequency of electricity for the purpose of transmission or distribution. NOTE B: When any item of equipment listed herein is used wholly to furnish power to equipment, it shall be included in such equipment account. 335 Miscellaneous power plant equipment This account shall include the cost installed of miscellaneous equipment in and about the hydroelectric generating plant which is devoted to general station use and is not properly includible in other hydraulic production accounts. This account shall also include the cost of equipment used in connection with (a) the conservation of fish and wildlife, and (b) recreation. Separate sub-accounts shall be maintained for each of the above. EXAMPLE ITEMS 1. Compressed air and vacuum cleaning systems, including tanks, compressors, exhausters, air filters, piping, etc. 2. Cranes and hoisting equipment, including cranes, cars, crane rails, monorails, hoists, etc., with electric and mechanical connections. 3. Fire-extinguishing equipment for general station use. 4. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 5. Locomotive cranes not includible else-where. 6. Locomotives not includible elsewhere. 7. Marine equipment, including boats, barges, etc. 8. Miscellaneous belts, pulleys, countershafts, etc. 9. Miscellaneous equipment, including atmospheric and weather indicating devices, intrasite communication equipment, laboratory equipment, insect control equipment, signal systems, Date Created: August 11, 2005 Page 39 Date Updated: May 8, 2006

41 May 8, 2006 callophones, emergency whistles and sirens, fire alarms, and other similar equipment. 10. Railway cars, not includible elsewhere. 11. Refrigerating system, including compressors, pumps, cooling coils, etc. 12. Station maintenance equipment, including lathes, shapers, planers, drill presses, hydraulic presses, grinders, etc., with motors, shafting, hangers, pulleys, etc. 13. Ventilating equipment, including items wholly identified with apparatus listed herein. NOTE: When any item of equipment, listed herein is used wholly in connection with equipment included in another account, its cost shall be included in such other account. 337 Asset retirement costs for hydraulic production plant This account shall include asset retirement costs on plant included in the hydraulic production function. 340 Land This account shall include the cost of land used in connection with other power generation. (See Electric Plant Instruction 8) Land rights This account shall include the cost of land rights used in connection with other power generation. (See Electric Plant Instruction 8) 341 Structures and improvements This account shall include the cost in place of structures and improvements used in connection with other power generation. (See Electric Plant Instruction 9) 342 Fuel holders, producers, and accessories This account shall include the cost installed of fuel handling and storage equipment used between the point of fuel delivery to the station and the intake pipe through which fuel is directly drawn to the engine, also the cost of gas producers and accessories devoted to the production of gas for use in prime movers driving main electric generators. EXAMPLE ITEMS 1. Blower and fans. 2. Boilers and pumps. 3. Economizers. 4. Exhauster outfits. 5. Flues and piping. 6. Pipe system. 7. Producers. 8. Regenerators. 9. Scrubbers. 10. Steam injectors. 11. Tanks for storage of oil, gasoline, etc. 12. Vaporizers. 343 Prime movers and generators This account shall include the cost installed of Diesel, other prime movers devoted to the generation of electric energy, together with their auxiliaries, or other power driven main generators. EXAMPLE ITEMS 1. Air-filtering system. 2. Belting, shafting, pulleys, reduction gearing, etc. 3. Cooling system, including towers, pumps, tanks, and piping. 4. Cranes, hoists, etc., including items wholly identified with apparatus listed herein. 5. Engines, Diesel, gasoline, gas, or other internal combustion. 6. Fire-extinguishing equipment. 7. Foundations and settings specially constructed for and not expected to outlast the apparatus Date Created: August 11, 2005 Page 40 Date Updated: May 8, 2006

42 May 8, 2006 for which provided. 8. Generator cooling system, including air cooling and washing apparatus, air fans and accessories, air ducts, etc. 9. Generators main, a.c. or d.c., including field rheostats and connections for self-ex-cited units and excitation system when identified with the generating unit. 10. Governors. 11. Ignition system. 12. Inlet valve. 13. Lighting systems. 14. Lubricating systems, including filters, tanks, pumps, and piping. 15. Mechanical meters, including gauges, recording instruments, sampling, and testing equipment. 16. Mufflers. 17. Piping. 18. Platforms, railings, steps, gratings, etc., appurtenant to apparatus listed herein. 19. Starting systems, compressed air, or other, including compressors and drives, tanks, piping, motors, Boards and connections, storage tanks, etc. 20. Steelwork, specially constructed for apparatus listed herein. 21. Waste heat boilers, antifluctuators, etc. 345 Accessory electric equipment This account shall include the cost installed of auxiliary generating apparatus, conversion equipment, and equipment used primarily in connection with the control and switching of electric energy produced in other power generating stations, and the protection of electric circuits and equipment, except electric motors used to drive equipment included in other accounts. Such motors shall be included in the account in which the equipment with which it is associated is included. EXAMPLE ITEMS 1. Auxiliary generators, including boards, compartments, switching equipment, control equipment, and connections to auxiliary power bus. 2. Excitation system, including motor, turbine and dual-drive exciter sets and rheostats, storage batteries and charging equipment, circuit breakers, panels and accessories, knife switches and accessories, surge arresters, instrument shunts, conductors and conduit, special supports for conduit, generator field and exciter switch panels, exciter bus tie panels, generator and exciter rheostats, etc., special housings, protective screens, etc. 3. Generator main connections, including oil circuit breakers and accessories, disconnecting switches and accessories, operating mechanisms and interlocks, current transformers, potential transformers, protective relays, isolated panels and equipment, conductors and conduit, special supports for generator main leads, grounding switch, etc., special housing, protective screens, etc. 4. Station control system, including station switchboards with panel wiring, panels with instruments and control equipment only, panels with switching equipment mounted or mechanically connected, trunk type boards complete, cubicles, station supervisory control boards, generator and exciter signal stands, temperature-recording devices, frequency control equipment, master clocks, watt-hour meter, station totalizing wattmeter, storage batteries, panels and charging sets, instrument transformers for supervisory metering, conductors and conduit, special supports for conduit, switchboards, batteries, special housing for batteries, protective screens, doors, etc. 5. Station buses, including main, auxiliary transfer, synchronizing and fault ground buses, including oil circuit breakers and accessories, disconnecting switches and accessories, operating mechanisms and interlocks, reactors and accessories, voltage regulators and accessories, compensators, resistors, starting transformers, current transformers, potential transformers, protective relays, storage batteries and charging equipment, isolated panels and equipment, conductors and conduit, special supports, special housings, concrete pads, general station ground system, special fire-extinguishing system, and test equipment. NOTE A: Do not include in this account transformers and other equipment used for changing the voltage or frequency of electric energy for the purpose of transmission or distribution. NOTE B: When any item of equipment listed herein is used wholly to furnish power to equipment included in another account, its cost shall be included in such other account. 346 Miscellaneous power plant equipment This account shall include the cost installed of miscellaneous equipment in and about the other power Date Created: August 11, 2005 Page 41 Date Updated: May 8, 2006

43 May 8, 2006 generating plant, devoted to general station use, and not properly includible in any of the foregoing other power production accounts. EXAMPLE ITEMS 1. Compressed air and vacuum cleaning systems, including tanks, compressors, exhausters, air filters, piping, etc. 2. Cranes and hoisting equipment, including cranes, cars, crane rails, monorails, hoists, etc., with electric and mechanical connections. 3. Fire-extinguishing equipment for general station use. 4. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 5. Miscellaneous equipment, including atmospheric and weather indicating devices, intrasite communication equipment, laboratory equipment, signal systems, callophones, emergency whistles and sirens, fire alarms, and other similar equipment. 6. Miscellaneous belts, pulleys, countershafts, etc. 7. Refrigerating system including compressors, pumps, cooling coils, etc. 8. Station maintenance equipment, including lathes, shapers, planers, drill presses, hydraulic presses, grinders, etc., with motors, shafting, hangers, pulleys, etc. 9. Ventilating equipment, including items wholly identified with apparatus listed herein. NOTE: When any item of equipment, listed herein is used wholly in connection with equipment included in another account, its cost shall be included in such other account. 350 Land This account shall include the cost of land used in connection with transmission operations. (See Electric Plant Instruction 8) Land rights This account shall include the cost of land rights used in connection with transmission operations. (See Electric Plant Instruction 8) 352 Structures and improvements This account shall include the cost in place of structures and improvements used in connection with transmission operations. (See Electric Plant Instruction 9) 353 Station equipment This account shall include the cost installed of transforming, conversion, and switching equipment used for the purpose of changing the characteristics of electricity in connection with its transmission or for controlling transmission circuits, whether actually in service or held for emergency stores. EXAMPLE ITEMS 1. Bus compartments, concrete, brick, and sectional steel, including items permanently attached thereto. 2. Conduit, including concrete and iron duct runs not a part of a building. 3. Control equipment, including batteries battery charging equipment, transformers, remote relay boards, and connections. 4. Conversion equipment, including trans-formers, indoor and outdoor, frequency changers, motor generator sets, rectifiers, synchronous converters, motors, cooling equipment, and associated connections. 5. Fences. 6. Fixed and synchronous condensers, including transformers, switching equipment blowers, motors and connections. 7. Flexible Alternate Current Transmission Systems (FACTS) 8. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 9. General station equipment, including air compressors, motors, hoists, cranes, test equipment, ventilating equipment, etc. 10. Platforms, railings, steps, gratings, etc. appurtenant to apparatus listed herein. 11. Primary and secondary voltage connections, including bus runs and supports, insulators, potheads, lightning arresters, cable and wire runs from and to outdoor connections or to Date Created: August 11, 2005 Page 42 Date Updated: May 8, 2006

44 May 8, 2006 manholes and the associated regulators, reactors, resistors, surge arresters, and accessory equipment. 12. Switchboards, including meters, relays, control wiring, etc. 13. Switching equipment, indoor and out-door, including oil SF6, vacuum circuit breakers and operating mechanisms, truck switches, and disconnect switches. 13. Tools and appliances. (If such items are consumed directly in construction work, the cost shall be included as part of the cost of construction. See Account description 394, Tools, shop, garage, stores and laboratory equipment) System communication & control This account shall include the cost installed of all equipment utilized for the purposes of providing control, operation and observation of the status of the transmission system. EXAMPLE ITEMS: 1. Supervisory Control and Data Acquisition System (SCADA) communication equipment including: a. Main Terminal Unit (Central Computer) b. Remote Terminal Units (those resident within electrical transmission substations) c. Transducers and other equipment which provides the raw data input into the SCADA system, but excludes relays whose primary function is to provide protection of the overall system 2. Communications Equipment including: a. Digital and Analog Microwave systems including towers, repeater stations, and all associated electrical and electronic systems which are necessary of the operation for fiber optic and coaxial cable systems. b. Twisted line pair communication wires, necessary to provide communications to and from sub-stations and the central control centre. c. Electronic switching devises whose primary purpose is to handle data from devices designed for control and operation of the transmission system. 354 Towers and fixtures This account shall include the installed and held in emergency stores cost, of towers and appurtenant fixtures used for supporting overhead transmission conductors. EXAMPLE ITEMS 1. Anchors, guys, braces. 2. Brackets. 3. Crossarms, including braces. 4. Excavation, backfill, and disposal of excess excavated material. 5. Foundations. 6. Guards. 7. Insulator pins and suspension bolts. 8. Ladders and steps. 9. Railings, etc. 10. Towers. 355 Poles and fixtures This account shall include the installed cost of transmission line poles, wood, steel, concrete, or other material, together with the cost for appurtenant fixtures used for supporting overhead transmission conductors. EXAMPLE ITEMS 1. Anchors, head arm and other guys, including guy guards, guy clamps, strain insulators, pole plates, etc. 2. Brackets. 3. Crossarms and braces. 4. Excavation and backfill, including disposal of excess excavated material. 5. Extension arms. 6. Gaining, roofing stenciling, and tagging. 7. Insulator pins and suspension bolts. 8. Paving. Date Created: August 11, 2005 Page 43 Date Updated: May 8, 2006

45 May 8, Pole steps. 10. Poles, wood, steel, concrete, or other material. 11. Racks complete with insulators. 12. Reinforcing and stubbing. 13. Settings. 14. Shaving and painting. Re-build programs with the intent that the action extends the life of the asset such as: 15. Stubbing poles in service, 16. Treating poles or cross arms in use or salvaged for reuse. 356 Overhead conductors and devices This account shall include the installed and held in emergency stores cost of overhead conductors and devices used for transmission purposes. EXAMPLE ITEMS 1. Circuit breakers. 2. Conductors, including insulated and bare wires and cables. 3. Ground wires and ground clamps. 4. Insulators, including pin, suspension, and other types. 5. Lightning arresters. 6. Switches. 7. Other line devices. 358 Underground conduit, conductors and devices This account shall include the installed and held in emergency stores cost of underground conduit and tunnels used for housing transmission cables or wires and underground conductors and devices used for transmission purposes. (See Electric Plant Instruction 15) EXAMPLE ITEMS 1. Armored conductors, buried, including insulators, insulating materials, splices, potheads, trenching, etc. 2. Armored conductors, submarine, including insulators, insulating materials, splices in terminal chambers, potheads, etc. 3. Cables in standpipe, including pothead and connection from terminal chamber of manhole to insulators on pole. 4. Circuit breakers. 5. Conduit, concrete, brick or tile, including iron pipe, fiber pipe, Murray duct, and standpipe on pole or tower. 6. Excavation, including shoring, bracing, bridging, backfill, and disposal of excess excavated material. 7. Fireproofing, in connection with any items listed herein 8. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 9. Hollow-core oil-filled cable, including straight or stop joints pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads and connections, ventilating equipment, etc. 10. Lead and fabric covered conductors, including insulators, compound filled, oil filled, or vacuum splices, potheads, etc. 11. Lightning arresters. 12. Manholes, concrete or brick, including iron or steel, frames and covers, hatchways, gratings, ladders, cable racks and hangers, etc., permanently attached to manholes. 13. Municipal inspection. 14. Pavement disturbed, including cutting and replacing pavement, pavement base and sidewalks. 15. Permits. 16. Protection of street openings. 17. Racking of cables. 18. Removal and relocation of subsurface obstructions. 19. Sewer connections, including drains, traps, tide valves, check valves, etc. 20. Sumps, including pumps. 21. Switches. 22. Ventilating equipment. 23. Other line devices. Date Created: August 11, 2005 Page 44 Date Updated: May 8, 2006

46 May 8, Asset retirement costs for transmission plant This account shall include asset retirement costs on plant included in the transmission plant function. 360 Land This account shall include the cost of land used in connection with distribution operations. (See Electric Plant Instruction 8) NOTE: Do not include in this account the cost of permits to erect poles, towers, etc., or to trim trees. (See Account 364, Poles, towers and fixtures, and Account 365, Overhead conductors and devices) Land rights This account shall include the cost of land rights used in connection with distribution operations. (See Electric Plant Instruction 8) NOTE: Do not include in this account the cost of permits to erect poles, towers, etc., or to trim trees. (See Account 364, Poles, towers and fixtures, and Account 365, Overhead conductors and devices) 361 Structures and improvements This account shall include the cost in place of structures and improvements used in connection with distribution operations. (See electric Plant Instruction 9) 362 Station equipment This account shall include the installed station equipment cost, including transformer banks, etc., which are used for the purpose of changing the characteristics of electricity in connection with its distribution, whether in service or held in emergency stores. EXAMPLE ITEMS 1. Bus compartments, concrete, brick and sectional steel, including items permanently attached thereto. 2. Conduit, including concrete and iron duct runs not part of building. 3. Control equipment, including batteries, battery charging equipment, transformers, remote relay Boards, and connections. 4. Conversion equipment, indoor and out-door, frequency changers, motor generator sets, rectifiers, synchronous converters, motors, cooling equipment, and associated connections. 5. Fences. 6. Fixed and synchronous condensers, including transformers, switching equipment, blowers, motors, and connections. 7. Flexible Alternate Current Transmission Systems (FACTS) 8. Foundations and settings specially constructed for and not expected to outlast the apparatus for which provided. 9. General station equipment, including air compressors, motors, hoists, cranes, test equipment, ventilating equipment, etc. 10. Grounding 11. Platforms, railings, steps, gratings, etc., appurtenant to apparatus listed herein. 12. Primary and secondary voltage connections, including bus runs and supports, insulators, potheads, lightning arresters, cable and wire runs from and to outdoor connections or to manholes and the associated regulators, reactors, resistors, surge arresters, and accessory equipment. 13. Station metering equipment 14. Switchboards, including meters, relays, control wiring, etc. 15. Switching equipment, indoor and out-door, including oil, SF6, vacuum circuit breakers and operating mechanisms, truck switches, disconnect switches. NOTE: The cost of rectifiers, series transformers, and other special station equipment devoted exclusively to street lighting service shall not be included in this account, but in Account 373, Street lighting and signal systems System communication & control Date Created: August 11, 2005 Page 45 Date Updated: May 8, 2006

47 May 8, 2006 This account shall include the installed cost of all equipment utilized for the purposes of providing control, operation and observation of the status of the distribution system. EXAMPLE ITEMS: 1. Supervisory Control and Data Acquisition System (SCADA) communication equipment. 2. Any computers or other such data processing equipment, that are not included in SCADA Master Terminal Unit Systems for transmission systems, which gather and process information from distribution sub-station for the purposes of control of those sub-stations. 3. Remote Terminal Units (those resident within electrical distribution substations). 4. Transducers and other equipment which provides the raw data input into the SCADA system, but excludes relays whose primary function is to provide protection of the overall system. 5. Communications Equipment including: a. Optic Fibers, coaxial cable which are used b. Twisted line pair or fiber optic lines required to communicate with the distribution system devices. c. Power line carrier systems d. Electronics including amplifiers, multiplexers, and other associated equipment necessary for connection of optic fibers. e. Twisted line pair communication wires, necessary to provide communication to and from sub-stations and the central control centre. f. Electronic switching devices whose primary purpose is to handle data from devices designed for control and operation of the distribution system. 363 Storage battery equipment This account shall include the installed and held in emergency stores cost, of storage battery equipment used for the purpose of supplying electricity to meet emergency or peak demands. EXAMPLE ITEMS 1. Batteries, including elements, tanks, tank insulators, etc. 2. Battery room connections, including cable or bus runs and connections. 3. Battery room flooring, when specially laid for supporting batteries. 4. Charging equipment, including motor generator sets and other charging equipment and connections, and cable runs from generator or station bus to battery room connections. 5. Miscellaneous equipment, including instruments, water stills, etc. 6. Switching equipment, including endcell switches and connections, Boards and panels, used exclusively for battery control, not part of general station switchboard. 7. Ventilating equipment, including fans and motors, louvers, and ducts not part of building. NOTE: Storage batteries used for control and general station purposes shall not be included in this account but in the account appropriate for their use. 364 Poles, towers and fixtures This account shall include the installed and held in emergency stores cost, of poles, towers, and appurtenant fixtures used for supporting overhead distribution conductors and service wires. EXAMPLE ITEMS 1. Anchors, head arm, and other guys, including guy guards, guy clamps, strain insulators, pole plates, etc. 2. Brackets. 3. Crossarms and braces. 4. Excavation and backfill, including disposal of excess excavated material. 5. Extension arms. 6. Foundations. 7. Guards. 8. Insulator pins and suspension bolts. 9. Paving. 10. Permits for construction. 11. Pole steps and ladders. 12. Poles, wood, steel, concrete, or other material. 13. Racks complete with insulators. 14. Railings. 15. Reinforcing and stubbing. 16. Settings. 17. Shaving, painting, gaining, roofing, stenciling, and tagging. Date Created: August 11, 2005 Page 46 Date Updated: May 8, 2006

48 May 8, Towers. 19. Transformer racks and platforms. Re-build programs with the intent that the action extends the life of the asset such as: 20. Stubbing poles in service, 21. Treating poles or Crossarms in use or salvaged for reuse. 365 Overhead conductors and devices This account shall include the installed and held in emergency stores cost of overhead conductors and devices used for distribution purposes and the installed cost of overhead conductors leading from a point where wires leave the last pole of the overhead system or the distribution box, or the top of the pole of the distribution line, to the point of connection with the customer s outlet or wiring. EXAMPLE ITEMS 1. Brackets. 2. Cables and wires. 3. Circuit breakers. 4. Conductors, including insulated and bare wires and cables. 5. Ground wires, clamps, etc. 6. Insulators, including pin, suspension, and other types, and tie wire or clamps. 7. Lightning arresters. 8. Municipal inspection. 9. Overhead to underground, including conduit or standpipe and conductor from last splice on pole to connection with customer s wiring. 10. Pavement disturbed, including cutting and replacing pavement, pavement base, and sidewalks. 11. Permits. 12. Protection of street openings. 13. Railroad and highway crossing guards. 14. Service and other switches. 15. Splices. 16. Suspension wire. 17. Tree trimming, and vegetation management, initial cost including the cost of permits therefore. 18. Other line devices. NOTE: The cost of conductors used solely for street lighting or signal systems shall not be included in this account but in Account 373, Street lighting and signal systems. 367 Underground conductors and devices This account shall include the installed and held in emergency stores cost of underground conduit and tunnels used for housing distribution cables or wires and underground conductors and devices used for distribution purposes. This account shall include the installed cost of underground conductors leading from a point where wires leave the last distribution box or manhole, to the point of connection with the customer s outlet or wiring. Conduit used for underground service conductors shall be included herein. EXAMPLE ITEMS 1. Armored conductors, buried, including insulators, insulating materials, splices, potheads, trenching, etc. 2. Armored conductors, submarine, cables, terminators including insulators, insulating materials, splices in terminal chamber, potheads, etc. 3. Brackets. 4. Cables and wires in standpipe, including pothead and connection from terminal chamber or manhole to insulators on pole. 5. Circuit breakers. 6. Conduit, concrete, brick and tile, including iron pipe, fiber pipe, Murray duct, and standpipe on pole or tower. 7. Excavation, including shoring, bracing, bridging, backfill, and disposal of excess excavated material. 8. Fireproofing, in connection with any items listed herein. 9. Foundations and settings specially constructed for and not expected to outlast the apparatus for which constructed. 10. Hollow-core oil-filled cable, including straight or stop joints, pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads and connections, etc. 11. Insulators. 12. Lead and fabric covered conductors, including insulators, compound-filled, oil-filled or vacuum Date Created: August 11, 2005 Page 47 Date Updated: May 8, 2006

49 May 8, 2006 splices, potheads, etc. 13. Lightning arresters. 14. Lighting systems. 15. Manholes, concrete or brick, including iron or steel frames and covers, hatchways, gratings, ladders, cable racks and hangers, etc., permanently attached to manholes. 16. Municipal inspection. 17. Overhead to underground, including conduit or standpipe and conductor from last splice on pole to connection with customer s wiring. 18. Pavement disturbed, including cutting and replacing pavement, pavement base, and sidewalks. 19. Permits. 20. Protection of street openings. 21. Racking of cables. 22. Removal and relocation of subsurface obstructions. 23. Service switch. 24. Sewer connections, including drains, traps, tide valves, check valves, etc. 25. Sumps, including pumps. 26. Switches. 27. Suspension wire. 28. Ventilating equipment. 29. Other line devices. NOTE: The cost of underground conductors and devices used solely for street lighting or signal systems shall be included in Account 373, Street lighting and signal systems. 368 Line transformers A. This account shall include the installed cost of overhead and underground distribution line transformers and pole type and underground voltage regulators owned by the Utility, for use in transforming electricity to the voltage at which it is to be used by the customer, whether actually in service or held in reserve. B. When a transformer is permanently retired from service, the original installed cost thereof shall be credited to this account. C. The records covering line transformers shall be so kept that the Utility can furnish the number of transformers of various capacities in service and those in reserve, and the location and the use of each transformer. EXAMPLE ITEMS 1. Installation, labor of 2. Transformer cut-out boxes. 3. Transformer lightning arresters. 4. Transformers, line, padmount and network. 5. Capacitors. 6. Network protectors. 7. Grounding equipment 370 Conventional meters A. This account shall include the installed cost of conventional meters or devices and appurtenances thereto, for use in measuring the electricity delivered to its users, whether actually in service or held in reserve. B. When a conventional meter is permanently re-tired from service, the installed cost included herein shall be credited to this account. C. The records covering conventional meters shall be so kept that the Utility can furnish information as to the number of conventional meters of various capacities in service and in reserve. EXAMPLE ITEMS 1. Alternating current, watt-hour meters (mechanical & electronic) 2. Current limiting devices. 3. Demand indicators. 4. Demand meters. 5. Direct current watt-hour meters (mechanical & electronic) 6. Fees with regard to inspection, resealing and re-certification 7. Graphic demand meters. 8. Installation, labor of Date Created: August 11, 2005 Page 48 Date Updated: May 8, 2006

50 May 8, Instrument transformers. 10. Interval meters 11. Maximum demand meters. 12. Meter badges and their attachments. 13. Meter Boards and boxes. (metering units) 14. Meter fittings, connections, and shelves 15. Meter switches and cut-outs. (metering units) 16. Prepayment meters. 17. Protective devices. 18. Testing new meters. NOTE: This account shall not include conventional meters for recording output of a generating station, substation meters, etc. It includes only those conventional meters used to record energy delivered to customers. NOTE: Utilities may choose to follow cradle to grave accounting for this account and if cradle to grave accounting is chosen the Utility shall follow the Electric Plant Instruction Automated meters A. This account shall include the installed cost of automated meters or devices and appurtenances thereto, for use in measuring the electricity delivered to its users, whether actually in service or held in reserve. B. When an automated meter is permanently retired from service, the installed cost included herein shall be credited to this account. C. The records covering automated meters shall be so kept that the Utility can furnish information as to the number of automated meters of various capacities in service and in reserve. EXAMPLE ITEMS 1. Alternating current, watt-hour meters (mechanical & electronic) 2. Current limiting devices. 3. Demand indicators. 4. Demand meters. 5. Direct current watt-hour meters (mechanical & electronic) 6. Fees with regard to inspection, resealing and re-certification 7. Graphic demand meters. 8. Installation, labor of 9. Instrument transformers. 10. Interval meters 11. Maximum demand meters. 12. Meter badges and their attachments. 13. Meter Boards and boxes. (metering units) 14. Meter fittings, connections, and shelves 15. Meter switches and cut-outs. (metering units) 16. Prepayment meters. 17. Protective devices. 18. Testing new meters. NOTE: This account shall not include automated meters for recording output of a generating station, substation meters, etc. It includes only those automated meters used to record energy delivered to customers. NOTE: Utilities may choose to follow cradle to grave accounting for this account and if cradle to grave accounting is chosen, the Utility shall follow the Electric Plant Instruction Street lighting and signal systems This account shall include the installed cost of utility owned equipment used wholly for public street and highway lighting or traffic, fire alarm, police, and other signal systems. EXAMPLE ITEMS 1. Armored conductors, buried or submarine, including insulators, insulating materials, splices, Date Created: August 11, 2005 Page 49 Date Updated: May 8, 2006

51 May 8, 2006 trenching, etc. 2. Automatic control equipment. 3. Lamps, incandescent, or other types, including glassware, suspension fixtures, brackets, etc. 4. Municipal inspection. 5. Pavement disturbed, including cutting and replacing pavement, pavement base, and sidewalks. 6. Permits. 7. Posts and standards. 8. Protection of street openings. 9. Rectifiers, wholly associated with street light systems 10. Relays or time clocks. 11. Series contactors. 12. Switches. 374 Asset retirement costs for distribution plant This account shall include Asset Retirement Costs on plant included in the distribution plant function. 389 Land This account shall include the cost of land used for utility purposes, the cost of which is not properly includible in other land accounts. (See Electric Plant Instruction 8) Land rights This account shall include the cost of land rights used for utility purposes, the cost of which is not properly includible in other land rights accounts. (See Electric Plant Instruction 8) 390 Structures and improvements This account shall include the cost in place of structures and improvements used for utility purposes, the cost of which is not properly includible in other structures and improvements accounts (See Electric Plant Instruction 9) 391 Office furniture and equipment This account shall include the cost of office furniture and equipment owned by the Utility and devoted to utility service, and not permanently attached to buildings, except the cost of such furniture and equipment which the Utility elects to assign to other plant accounts on a functional basis. EXAMPLE ITEMS 1. Bookcases and shelves. 2. Desks, chairs, and desk equipment. 3. Drafting-room equipment. 4. Filing, storage, and other cabinets. 5. Floor covering. 6. Library and library equipment. 7. Mechanical office equipment, such as accounting machines, typewriters, etc. 8. Safes. 9. Tables Computer hardware and voice & data network equipment This account shall include the installed cost of acquiring computer hardware including telephone network equipment for general use in connection with utility operations. Hardware includes all physical equipment associated with computer input, processing, storage, retrieval and output functions. This account shall be subdivided as appropriate. EXAMPLE ITEMS: 1. Cell phones and related hand held devises 2. Circuit boards, network cards 3. Computer Processing Units (CPU s) 4. Fax equipment 5. Keyboards, mice Date Created: August 11, 2005 Page 50 Date Updated: May 8, 2006

52 May 8, Monitors and screens 7. PBX, ACD systems 8. Personal Computers (PC s) 9. Photocopiers 10. Printers 11. Phone sets 12. Power bars 13. Remote security keys and devises 14. Storage devices, Servers, Routers, 15. All electronic and associated equipment utilized with fibre-optic and coaxial systems whose express purpose is to provide voice and data functions, not specifically associated or included in Accounts 353.1, Systems communication and control NOTE: Communications equipment utilized to monitor and control utility operations such as SCADA equipment, shall be included in Accounts 353.1, Systems communication and control Computer software and applications This account shall include the installed cost of developed and purchased computer application software. This account shall be subdivided as appropriate. EXAMPLE ITEMS: 1. Accounting Packages 2. Customer Information Systems (CIS) 3. Data Base Management Packages 4. Groupware packages (e.g. , scheduling, conferencing, including related gateways) 5. Primary development packages (e.g. PowerBuilder) 6. Software development tools 7. General office software such as word processing and spreadsheet Load settlement software applications This account shall include the incremental installed cost of developed and purchased computer application software associated with processes for load settlement. This account shall be subdivided as appropriate. EXAMPLE ITEMS: 1. Billing software exclusive to load settlement applications 2. Specific Load Settlement cost tracking and measurement application programs 3. Specific Load Settlement revenue tracking and measurement application programs 392 Transportation equipment, fleet vehicles This account shall include the cost of fleet vehicles generally one ton or less, used for general purposes. EXAMPLE ITEMS 1. Automobiles. 2. Small trucks. 3. Repair cars or trucks. 4. Other mobile equipment. NOTE: Non-fleet, work and service equipment should be included in Account 396, Power operated equipment 394 Tools, shop, stores, garage and laboratory equipment This account shall include the cost of tools, implements, equipment used in construction, repair work, general shops garages, equipment used for the receiving, shipping, handling, and storage of materials and supplies and laboratory equipment used for general laboratory purposes; none of which is specifically provided for or includible in other departmental or functional plant accounts. EXAMPLE ITEMS 1. Air compressors. 2. Ammeters, Laboratory equipment Date Created: August 11, 2005 Page 51 Date Updated: May 8, 2006

53 May 8, Anvils. 4. Automobile repair shop equipment. 5. Battery charging equipment. 6. Belts, shafts and countershafts. 7. Boilers. 8. Cable pulling equipment. 9. Chain falls. 10. Chain Saws 11. Concrete mixers. 12. Counters, Stores equipment 13. Cranes (portable). 14. Current batteries. 15. Drill presses. 16. Derricks. 17. Electric equipment. 18. Elevating and stacking equipment (portable), Stores equipment 19. Engines. 20. Frequency changers. 21. Foundations and settings specially constructed for and not expected to outlast the equipment for which provided. 22. Galvanometers. 23. Gas producers. 24. Gasoline pumps, oil pumps and storage tanks. 25. Greasing tools and equipment. 26. Hoists. 27. Inductometers. 28. Laboratory standard millivolt meters. 29. Laboratory standard volt meters. 30. Ladders. 31. Lathes. 32. Lockers, Stores equipment 33. Machine tools. 34. Meter-testing equipment, Laboratory equipment 35. Millivolt meters. 36. Motors. 37. Motor-driven tools. 38. Motor generator sets. 39. Panels, Laboratory equipment 40. Phantom loads. 41. Pipe threading and cutting tools 42. Pneumatic tools. 43. Portable graphic ammeters, voltmeters, and wattmeters. 44. Portable loading devices. 45. Potential batteries. 46. Potentiometers. 47. Pumps. 48. Riveters. 49. Rotating standards. 50. Scales. 51. Shelving, Stores equipment 52. Smithing equipment. 53. Standard cell, reactance, resistor, and shunt. 54. Storage bins. 55. Switchboards, Laboratory equipment 56. Synchronous timers. 57. Testing panels. 58. Testing resistors. 59. Transformers, Laboratory equipment 60. Tool racks. 61. Vises. 62. Voltmeters, Laboratory equipment 63. Welding apparatus. 64. Wheelbarrows. 65. Work benches. 66. Other testing, laboratory, or research equipment not provided for elsewhere. Date Created: August 11, 2005 Page 52 Date Updated: May 8, 2006

54 May 8, Power operated equipment This account shall include the cost of power operated equipment used in construction or repair work exclusive of equipment includible in other accounts. Generally, production vehicles greater than one ton are included within this account. Include, also, the tools and accessories acquired for use with such equipment and the vehicle on which such equipment is mounted. EXAMPLE ITEMS 1. Airplanes 2. Air compressors, including driving unit and vehicle. 3. Back filling machines. 4. Boring machines. 5. Bulldozers. 6. Cranes and hoists. 7. Diggers. 8. Engines. 9. Motorcycles 10. Pile drivers. 11. Pipe cleaning machines. 12. Pipe coating or wrapping machines. 13. Special Truck Bodies 14. Stores Trucks, hand and power driven 15. Tractors Crawler type. 16. Trailers 17. Trenchers. 18. Trucks > one ton 19. Truck chassis 20. Other power operated equipment. NOTE: It is intended that this account include only such large units as are generally self-propelled or mounted on movable equipment. 397 Mobile communication equipment This account shall include the installed cost of mobile and wireless equipment for general use in connection with utility operations. NOTE: This account will not include telephone systems or SCADA control systems costs that are included in Accounts 353.1, Systems communications & control. Telephone systems will be included in Account Computer hardware and voice & data network equipment. EXAMPLE ITEMS 1. Antennae. 2. Cables. 3. Distributing Boards. 4. Extension cords. 5. Insulators. 6. Intercommunicating sets. 7. Loading coils. 8. Mobile Switchboards 9. Mobile communication receiving sets 10. Mobile communication circuits and circuit connections. 11. Phone sets 12. Poles and fixtures used wholly for mobile communication 13. Radio transmitting and receiving sets. 14. Remote control equipment and lines. 15. Sending keys. 16. Storage batteries 17. Testing instruments, used wholly for mobile communication 18. Towers, used wholly for mobile communication 19. Underground conduit, used wholly for mobile communication 398 Miscellaneous equipment This account shall include the cost of equipment, apparatus, etc., used in the utility operations, which is Date Created: August 11, 2005 Page 53 Date Updated: May 8, 2006

55 May 8, 2006 not includible in any other account of this system of accounts. EXAMPLE ITEMS 1. Hospital and infirmary equipment. 2. Kitchen equipment. 3. Employees recreation equipment. 4. Radios. 5. Restaurant equipment. 6. Soda fountains. 7. Operators cottage furnishings. 8. Other miscellaneous equipment. NOTE: Miscellaneous equipment of the nature indicated above wherever practicable shall be included in the utility plant accounts on a functional basis. 399 Other tangible property This account shall include the cost of tangible utility plant not provided for elsewhere Asset retirement costs for general plant This account shall include Asset Retirement Costs on plant included in the general plant function Leasehold improvements This account shall include the cost of additions, improvements or alterations made to premises the Utility leases from others. The cost of the leasehold improvements shall be amortized in accordance with guidelines outlined in the CICA Handbook Section Generally amortization is over the term of the lease or the service life of the improvement, whichever is shorter. Renewal provisions in the lease agreement shall be disregarded in amortizing leasehold improvements. This account shall be subdivided into as many classifications as are required. Income Chart of Accounts 1. UTILITY OPERATING INCOME 400 Operating revenues (440 to 451.2) 401 Operation expense (500 to 999) 403 Depreciation and amortization expense Depreciation expense for asset retirement costs 406 Amortization of electric plant acquisition adjustments Regulatory debits Regulatory credits Taxes other than income taxes, utility operating income Income taxes, utility operating income Provisions for future income taxes, utility operating income Gains / Losses from disposition of utility plant Accretion expense asset retirement obligation 412 Revenues from electric plant leased to others 413 Expenses of electric plant leased to others 2. OTHER INCOME AND DEDUCTIONS A. OTHER INCOME 417 Revenues from non-utility operations Expenses of non-utility operations Equity in earnings of subsidiary companies 419 Interest, dividend and other income Allowance for other funds used during construction Date Created: August 11, 2005 Page 54 Date Updated: May 8, 2006

56 May 8, 2006 B. OTHER INCOME DEDUCTIONS 426 [Reserved] Donations Life insurance Penalties Expenditures for certain civic, political and related activities Other deductions 3. INTEREST CHARGES 427 Interest on long-term debt 430 Interest on debt to associated companies 431 Short term interest and other interest expense 434 Extraordinary income 435 Extraordinary deductions 4. EXTRAORDINARY ITEMS Income Accounts 400 Operating revenues There shall be shown under this caption the total amount of the account balances from the related accounts ( inclusive). 401 Operation & Maintenance expense There shall be shown under this caption the total amount of the account balances from the related accounts ( inclusive). 403 Depreciation and amortization expense A. This account shall include the amount of depreciation expense for all classes of depreciable electric plant in service. Records shall be kept that allow depreciation expense to be shown by plant account. B. The Utility shall keep such records of property and property retirements as will reflect the service life of property which has been retired and aid in estimating probable service life by mortality, turnover, or other appropriate methods; and also such records as will reflect the percentage of salvage and costs of removal for property retired from each account, or subdivision thereof, for depreciable electric plant. NOTE A: Depreciation expense applicable to property included in Account 104, Electric plant leased to others, shall be charged to Account 413, Expenses of electric plant leased to others. NOTE B: Depreciation expenses applicable to transportation equipment, shop equipment, tools, work equipment, power operated equipment and other general equipment may be charged to clearing accounts as necessary in order to obtain a proper distribution of expenses between construction and operation. NOTE C: Depreciation expense also includes amortization expense, where applicable Depreciation expense for asset retirement costs This account shall include the depreciation expense for asset retirement costs included in electric utility plant in service. 406 Amortization of electric plant acquisition adjustments This account shall be debited or credited, as the case may be, with amounts includible in operating expenses, pursuant to approval or order of the Board, for the purpose of providing for the extinguishment of the amount in Account 114, Electric plant acquisition adjustments Regulatory debits Date Created: August 11, 2005 Page 55 Date Updated: May 8, 2006

57 May 8, 2006 This account shall be debited, when appropriate, with the amounts credited to Account 254.1, Regulatory liabilities, to record regulatory liabilities imposed on the Utility by the ratemaking actions of regulatory agencies. This account shall also be debited, when appropriate, with the amounts credited to Account 182.3, Regulatory assets, concurrent with the recovery of such amounts in rates Regulatory credits This account shall be credited, when appropriate, with the amounts debited to Account 182.3, Regulatory assets, to establish regulatory assets. This account shall also be credited, when appropriate, with the amounts debited to Account 254.1, Regulatory liabilities, concurrent with the return of such amounts to customers through rates Taxes other than income taxes, utility operating income A. This account shall include the amounts of all other taxes assessed by Federal, provincial, municipal, or other local governmental authorities, except income taxes. Such taxes may include paymentsin-lieu of taxes, municipal and school taxes, property taxes, property transfer taxes, commodity taxes, and franchise fees. B. This account shall be charged in each accounting period with the amount of taxes which are applicable thereto, with concurrent credits to Account 236, Current income taxes payable, or Account 165, Prepayments, as appropriate. When it is not possible to determine the exact amount of taxes, the amounts shall be estimated and adjustments made in current accruals as the actual tax levies become known. C. The charges to this account shall be made or supported so as to show the amount of each tax and the basis upon which each charge is made. NOTE 1: Special assessments for street and similar improvements shall be included in the appropriate utility plant or non-utility property account. NOTE 2: Taxes specifically applicable to construction shall be included in the cost of construction. NOTE 3: Gasoline and other sales taxes shall be charged as far as practicable to the same account as the materials on which the tax is levied. NOTE 4: Interest on tax refunds or deficiencies shall not be included in these accounts but in Account 419, Interest, dividend and other income, or Account 431, Short term interest and other interest expense, as appropriate Income taxes, utility operating income This account shall include the amounts of local, provincial and Federal income taxes on income and large corporation tax amounts properly accruable during the period covered by the income statement to meet the actual liability for such taxes. Concurrent credits for the tax accruals shall be made to Account 236, Current income taxes payable, and as the exact amounts of taxes become known, the current tax accruals shall be adjusted by charges or credits to these accounts, so that these accounts as nearly as can be ascertained shall include the actual taxes payable by the Utility. NOTE 1: Taxes assumed by the Utility on interest shall be charged to Account 431, Short term interest and other interest expense. NOTE 2: Interest on tax refunds or deficiencies shall not be included in these accounts but in Account 419, Interest, dividend and other income, or Account 431, Short term interest and other interest expense, as appropriate Provision for future income taxes, utility operating income The balance in this account shall represent the amount provided for future income taxes in the fiscal year. The offsetting entry to this provision should be to Account 190, Accumulated future income taxes (debit) and /or Account 281 Accumulated future income taxes (credit) as provided by the text of those accounts. Date Created: August 11, 2005 Page 56 Date Updated: May 8, 2006

58 May 8, Gains / Losses from disposition of utility plant A. This account shall include, as approved by the Board, amounts relating to gains or losses from the disposition of future use utility plant including amounts which were previously recorded in and transferred from Account 105, Electric plant held for future use, under the provisions of paragraphs B, C, and D thereof. Income taxes relating to gains recorded in this account shall be recorded in Account 409.1, Income taxes, utility operating income. B. The Utility shall record in this account gains or losses resulting from the settlement of asset retirement obligations related to utility plant in accordance with the accounting prescribed in General Instruction 21. (See also Electric Plant Instructions 6 and 8) Accretion expense from asset retirement obligation This account shall be charged for accretion expense on the liabilities associated with asset retirement obligations included in Account 230, Asset retirement obligations, related to electric utility plant. 412 Revenues from electric plant leased to others 413 Expenses of electric plant leased to others A. These accounts shall include respectively, revenues from electric property constituting a distinct operating unit or system leased by the Utility to others, and which property is properly includible in Account 104, Electric plant leased to others, and the expenses attributable to such property. B. The detail of expenses shall be kept or supported so as to show separately the following: Operation and Maintenance. Depreciation. Amortization. NOTE: Related taxes shall be recorded in Account 408.1, Taxes other than income taxes, utility operating income, or Account 409.1, Income taxes, utility operating income, as appropriate. 417 Revenues from non-utility operations Expenses of non-utility operations A. These accounts shall include revenues and expenses applicable to operations which are non-utility in character but nevertheless constitute a distinct operating activity of the enterprise as a whole, such as the operation of an ice department where applicable statutes do not define such operation as a utility, or the operation of a servicing organization for furnishing supervision, management, engineering, and similar services to others. B. The expenses shall include all elements of costs incurred in such operations, and the accounts shall be maintained so as to permit ready summarization as follows: Operation and Maintenance. Rents. Depreciation. Amortization. NOTE: Related taxes shall be recorded in Account Other deductions Equity in earnings of subsidiary companies This account shall include the Utility s equity in the earnings or losses of subsidiary companies for the year. 419 Interest, dividend and other income A. This account shall include interest revenues on securities, loans, notes, advances, special deposits, tax refunds and all other interest-bearing assets, and dividends on stocks of other companies, whether the securities on which the interest and dividends are received are carried as investments or included in sinking or other special fund accounts. Date Created: August 11, 2005 Page 57 Date Updated: May 8, 2006

59 May 8, 2006 B. This account may include the pro rata amount necessary to extinguish (during the interval between the date of acquisition and the date of maturity) the difference between the cost to the Utility and the face value of interest-bearing securities. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. C. Where significant in amount, expenses, excluding operating taxes and income taxes, applicable to security investments and to interest and dividend revenues thereon shall be charged hereto. NOTE: Interest accrued, the payment of which is not reasonably assured, dividends receivable which have not been declared or guaranteed, and interest or dividends upon reacquired securities issued or assumed by the Utility shall not be credited to this account Allowance for other funds used during construction This account shall include concurrent credits for allowance for other funds used during construction, not to exceed amounts computed in accordance with the formula prescribed in Electric Plant Instruction 3(17). 426 [Reserved] SPECIAL INSTRUCTIONS ACCOUNTS 426.1, 426.2, 426.3, AND These accounts shall include miscellaneous expense items which are non-operating in nature but which are properly deductible before determining total income before interest charges. NOTE: The classification of expenses as non-operating and their inclusion in these accounts is for accounting purposes. It does not preclude Board consideration of proof to the contrary for ratemaking or other purposes Donations This account shall include all payments or donations for charitable, social or community welfare purposes Life insurance This account shall include all payments for life insurance of officers and employees where the Utility is beneficiary (net premiums less increase in cash surrender value of policies) Penalties This account shall include payments by the Utility for penalties or fines for violation of any regulatory statutes by the Utility or its officials Expenditures for certain civic, political and related activities This account shall include expenditures for the purpose of influencing public opinion with respect to the election or appointment of public officials, referenda, legislation, or ordinances (either with respect to the possible adoption of new referenda, legislation or ordinances or repeal or modification of existing referenda, legislation or ordinances) or approval, modification, or revocation of franchises; or for the purpose of influencing the decisions of public officials, but shall not include such expenditures which are directly related to appearances before regulatory or other governmental bodies in connection with the reporting Utility s existing or proposed operations Other deductions This account shall include other miscellaneous expenses which are non-operating in nature, but which are properly deductible before determining total income before interest charges. EXAMPLE ITEMS 1. Loss relating to investments in securities written-off or written-down. 2. Loss on sale of investments. 3. Loss on reacquisition, resale or retirement of Utility s debt securities, when the loss is not amortized and used by a jurisdictional regulatory agency to increase embedded debt cost in establishing rates. See General Instruction Preliminary survey and investigation expenses related to abandoned projects, when not written-off to the appropriate operating expense account. 5. Costs of preliminary abandonment costs recorded in Account Gains / Losses on disposition of utility plant or Account 186, Miscellaneous deferred debits. Date Created: August 11, 2005 Page 58 Date Updated: May 8, 2006

60 May 8, The Utility shall record in this account losses resulting from the settlement of asset retirement obligations related to non-utility plant in accordance with the accounting prescribed in General Instruction Interest on long-term debt A. This account shall include the amount of interest on outstanding long-term debt issued or assumed by the Utility, the liability for which is included in Account 221, Bonds and other long-term debt. B. Include within this account amounts amortized for financial fees, premiums and discounts. C. This account shall be so kept or supported as to show the interest accruals on each class and series of long-term debt. NOTE: This account shall not include interest on nominally issued or nominally outstanding long-term debt, including securities assumed. 430 Interest on debt to Associated Companies A. This account shall include the interest accrued on amounts included in Account 223, Advances from Associated Companies, and on all other obligations to Associated Companies. B. The records supporting the entries to this account shall be so kept as to show to whom the interest is to be paid, the period covered by the accrual, the rate of interest and the principal amount of the advances or other obligations on which the interest is accrued. 431 Short-term interest and other interest expense This account shall include all interest charges not provided for elsewhere. EXAMPLE ITEMS 1. Interest on notes payable on demand or maturing one year or less from date and on open accounts, except notes and accounts with associated companies. 2. Interest on customers deposits. 3. Interest on claims and judgments, tax assessments, and assessments for public improvements past due. 4. Income and other taxes levied upon bondholders of the Utility and assumed by it. 5. Include within this account amounts amortized for financial fees, premiums and discounts. 434 Extraordinary income This account shall be credited with gains of unusual nature and infrequent occurrence, which would significantly distort the current year s income computed before Extraordinary Items, if reported other than as extraordinary items. Income tax relating to the amounts recorded in this account shall be recorded in Account 409.1, Income taxes, utility operating income. (See General Instruction 7) 435 Extraordinary deductions This account shall be debited with losses of unusual nature and infrequent occurrence, which would significantly distort the current year s income computed before Extraordinary Items, if reported other than as extraordinary items. Income tax relating to the amounts recorded in this account shall be recorded in Account 409.1, Income taxes, utility operating income. (See General Instruction 7) Operating Revenue Chart of Accounts SALES OF ELECTRICITY Distribution revenues 451 Miscellaneous service revenues Revenue Affiliates & Inter-Affiliates Miscellaneous service revenue other 458 Transmission tariff Date Created: August 11, 2005 Page 59 Date Updated: May 8, 2006

61 May 8, Distribution revenues Operating Revenue Accounts These accounts shall include all tariff revenues of the distribution Utilities. The distribution revenue shall be reported by the rate classes of the Utility and the Utility shall assign account numbers within the prescribed range such that each rate class receives its own account number. If required, account numbers may be assigned utilizing a decimal if the number of rate classes so requires (example 440.1) 451 Miscellaneous service revenues Revenue Affiliates & Inter-Affiliates This account shall include all revenues (tariff, non-conventional or non-tariff) for services and charges billed to affiliates, in accordance with the provisions of each Utilities Inter-Affiliate Code of Conduct, relating to affiliate transactions. These transactions are not specifically provided for in other accounts. NOTE: This account will be broken down by major revenue classifications per utility specific requirements Miscellaneous revenue other This account shall include tariff revenues as outlined in the terms and conditions, non-conventional or non-tariff revenues for all miscellaneous services and charges billed to customers which are not specifically provided for in other accounts. EXAMPLE ITEMS 1. Fees for changing, connecting or disconnecting service. 2. Payment in lieu of notice revenues collected from customers. 3. Revenues collected from off cycle reads. 4. Fees gained from third parties for work done to complete meter compliance testing. 5. Revenue on maintenance of appliances, wiring, piping or other installations on customers premises. 6. Revenues received for joint pole usage. 7. Net credit or debit (cost less net salvage and less payment from customers) on closing of work orders for plant installed for temporary service of less than one year. 8. Revenues from rent of electric property. NOTE: This account will be broken down by major revenue classifications per Utility specific requirements. 458 Transmission tariff A.T his account shall include all tariff revenues from the AESO. B. Within this account, Distribution companies will include credits received from the system operator (AESO) for farm transmission costs. NOTE: Other than electricity supplied in B above, this account will only be utilized by Transmission Utilities to record revenues from Transmission tariffs. Distribution Utilities will use accounts , to record their Distribution and Transmission tariff and non-tariff revenue and revenue billing. Operation and Maintenance Expense Chart of Accounts 1. POWER PRODUCTION EXPENSES A. HYDRAULIC POWER GENERATION 537 Hydraulic expenses Operation & Maintenance Date Created: August 11, 2005 Page 60 Date Updated: May 8, 2006

62 May 8, 2006 B. OTHER POWER GENERATION & SUPPLY EXPENSES Operation & Maintenance 546 Combustion engines / turbine operations 547 Fuel 554 Combustion engines / turbine maintenance 557 Other expenses 2. TRANSMISSION EXPENSES Operation & Maintenance 560 Operation & Maintenance Supervision and engineering 561 Operation & Maintenance Control centre operations 562 Operation & Maintenance Station equipment expenses 563 Operation & Maintenance Overhead lines expenses 564 Operation & Maintenance Underground lines expenses 566 Operation & Maintenance Miscellaneous transmission expenses 567 Operation & Maintenance Right of way payments 569 Operation & Maintenance of structures Operation & Maintenance vegetation management 575 Operation & Maintenance IT support 3. DISTRIBUTION EXPENSES Operation & Maintenance 580 Operation & Maintenance Supervision and engineering 581 Operation & Maintenance Control centre operations 582 Operation & Maintenance Station equipment expenses 583 Operation & Maintenance Overhead line expenses 584 Operation & Maintenance Underground line expenses 585 Operation & Maintenance Street lighting and signal system expenses 586 Operation & Maintenance Meter expenses 587 Operation & Maintenance Customer installations expenses 588 Operation & Maintenance Miscellaneous distribution expenses 589 Operation & Maintenance Right Of way payments 591 Operation & Maintenance of structures Operation & Maintenance vegetation management 595 Operation & Maintenance of line transformers 599 Operation & Maintenance IT support 4. CUSTOMER ACCOUNTS EXPENSES Operation 901 Supervision 902 Meter reading expenses 903 Customer records and collection expenses 904 Uncollectible accounts 905 Miscellaneous customer accounts expenses IT customer service 5. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES Operation 907 Supervision 908 Customer assistance expenses 909 Informational and instructional advertising expenses 910 Miscellaneous customer service and informational expenses 6. SALES EXPENSES 916 Miscellaneous sales expenses Operation Date Created: August 11, 2005 Page 61 Date Updated: May 8, 2006

63 May 8, ADMINISTRATIVE AND GENERAL EXPENSES Operation 920 Administrative and general salaries 921 Office supplies and expenses 922 Administrative expenses transferred Credit 923 Outside services employed 924 Insurance premiums 925 Injuries and damages 926 Employee pensions and benefits 928 Board expenses General advertising expenses Miscellaneous general expenses 931 Rents Head office rent 934 IT G & A expense 935 Maintenance of general plant 941 Board expenses disallowed 8. LOAD SETTLEMENT EXPENSES Operation 944 Load settlement IT load settlement Operation and Maintenance Expense Accounts 537 Hydraulic expenses This account shall include the cost of labor, materials used and expenses incurred in operating and maintenance of hydraulic works including reservoirs, dams, and waterways, and in activities directly relating to the hydroelectric development outside the generating station. It shall also include the cost of labor, materials used and other expenses incurred in connection with the operation and maintenance of (a) fish and wildlife, and (b) recreation facilities. It shall also include the cost of labour, materials and expenses incurred in operating and maintenance of prime movers, generators and their auxiliary apparatus, switchgear and other electric equipment. EXAMPLE ITEMS Labor: 1. Supervising hydraulic operation. 2. Removing debris and ice from trash racks, reservoirs and waterways. 3. Patrolling reservoirs and waterways. 4. Operating intakes, spillways, sluiceways, and outlet works. 5. Operating bubbler, heater or other deicing systems. 6. Ice and log jam work. 7. Operating navigation facilities. 8. Operations relating to conservation of game, fish, forests, etc. 9. Insect control activities. 10. Supervising electric production. 11. Operating prime movers, generators and auxiliary equipment. 12. Operating generator cooling system. 13. Operating lubrication and oil control systems, including oil purification. 14. Operating switchboards, switchgear, and electric control and protection equipment. 15. Keeping plant log and records and pre-paring reports on plant operations. 16. Testing, checking and adjusting meters, gauges, and other instruments, relays, controls, and other equipment in the plant. 17. Cleaning plant equipment when not incidental to maintenance work. 18. Repacking glands. 19. General clerical and stenographic work. 20. Guarding and patrolling plant and yard. 21. Building service. 22. Care of grounds including snow removal, cutting grass, etc. Date Created: August 11, 2005 Page 62 Date Updated: May 8, 2006

64 May 8, Snow removal from roads and bridges. 24. Miscellaneous labor. Materials and Expenses: 25. Insect control materials. 26. Lubricants, packing, and other supplies used in operation of hydraulic equipment. 27. Transportation expense. 28. Lubricants and control system oils. 29. Motor and generator brushes. 30. General operating supplies, such as tools, gaskets, packing, waste, hose, indicating lamps, record and report forms, etc. 31. First-aid supplies and safety equipment. 32. Employees service facilities expenses. 33. Building service supplies. 34. Communication service. 35. Office supplies, printing and stationery. 36. Transportation expenses. 37. Fuel. 38. Meals, traveling and incidental expenses. 39. Research, development, and demonstration expenses. 546 Combustion engines / turbines operations This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of other power generating stations. This account shall also include the cost of labor, materials used and expenses incurred in operating prime movers, generators and electric equipment in other power generating stations, to the point where electricity leaves for conversion for transmission or distribution. Additionally, this account shall include the cost of labor, materials used and expenses incurred in the operation of other power generating stations. (See Operating Expense Instructions 1 and 2) EXAMPLE ITEMS: 1. Supervising other power generation operation. 2. Operating prime movers, generators and auxiliary apparatus and switching and other electric equipment. 3. Keeping plant log and records and pre-paring reports on plant operations. 4. Testing, checking, cleaning, oiling and adjusting equipment. 5. General clerical and stenographic work. 6. Guarding and patrolling plant and yard. 7. Building service. 8. Care of grounds, including snow removal, cutting grass, etc. 9. Miscellaneous labor. 10. Supervising other power generation operation. 11. Operating prime movers, generators and auxiliary apparatus and switching and other electric equipment. 12. Keeping plant log and records and pre-paring reports on plant operations. 13. Testing, checking, cleaning, oiling and adjusting equipment. 14. General clerical and stenographic work. 15. Guarding and patrolling plant and yard. 16. Building service. 17. Care of grounds, including snow removal, cutting grass, etc. 18. Miscellaneous labor. Materials and Expenses: 19. Dynamo, motor, and generator brushes. 20. Lubricants and control system oils. 21. Water for cooling engines and generators 22. Building service supplies. 23. First-aid supplies and safety equipment. 24. Communication service. 25. Employees service facilities expenses. 26. Office supplies, printing and stationery. 27. Transportation expense. 28. Meals, traveling and incidental expenses. 29. Fuel for heating. 30. Water for fire protection or general use. Date Created: August 11, 2005 Page 63 Date Updated: May 8, 2006

65 May 8, Miscellaneous supplies, such as hand tools, drills, saw blades, files, etc. 32. Research, development, and demonstration expenses. 547 Fuel This account shall include the cost delivered at the station of all fuel, such as gas, oil, kerosene, and gasoline used in other power generation. (See Account 151, Fuel stock) 554 Combustion engines / turbines maintenance This account shall include the cost of labor, materials used and expenses incurred in maintenance of other power generation plant, the book cost of which is includible in accounts 341 to 346, inclusive. (See Operating Expense Instruction 1 and 2) 557 Other expenses A. This account shall be charged with any production expenses including expenses incurred directly in connection with the purchase of electricity, which are not specifically provided for in other production expense accounts. Charges to this account shall be supported so that a description of each type of charge will be readily available. B. Recoveries from insurance companies, under use and occupancy provisions of policies, of amounts in reimbursement of excessive or added production costs for which the insurance company is liable under the terms of the policy shall be credited to this account. 560 Operation and Maintenance Supervision and engineering This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation and maintenance of the transmission system as a whole. (Example Activities are outlined in accounts 561, 562, 563, 564, 566). Direct supervision of the same, shall be charged to the appropriate account. (See Operating Expense Instruction 1) 561 Operation and Maintenance Control centre operations This account shall include the cost of labor, materials used and expenses incurred in control centre operations pertaining to the transmission of electricity. EXAMPLE ITEMS Labor: 1. Directing switching. 2. Arranging and controlling clearances for construction, maintenance, test and emergency purposes. 3. Controlling system voltages. 4. Obtaining reports on the weather and special events. 5. Preparing operating reports and data for billing and budget purposes. 6. Maintaining the SCADA system Expenses: 7. Communication service provided for sys-tem control purposes. 8. System record and report forms. 9. Meals, traveling and incidental expenses. 10. Obtaining weather and special events reports. 11. Contractor costs 562 Operation and Maintenance Station equipment expenses This account shall include the cost of labor, materials used and expenses incurred in operating and maintenance of transmission sub-stations and switching stations, the book cost of which is includible in Account 353, Station equipment. If transmission station equipment is located in or adjacent to a generating station the expenses applicable to transmission station operations shall nevertheless be charged to this account. EXAMPLE ITEMS Labor: 1. Directly supervising station operation. Date Created: August 11, 2005 Page 64 Date Updated: May 8, 2006

66 May 8, Adjusting station equipment where such adjustment primarily affects performance, such as regulating the flow of cooling water, adjusting current in fields of a machine or changing voltage of regulators, changing station transformer taps. 3. Inspecting, testing and calibrating station equipment for the purpose of checking its performance. 4. Keeping station log and records and pre-paring reports on station operation. 5. Operating switching and other station equipment. 6. Standing watch, guarding, and patrol-ling station and station yard. 7. Sweeping, mopping, and tidying station. 8. Care of grounds, including snow removal, cutting grass, etc. Materials and Expenses: 9. Building service expenses. 10. Operating supplies, such as lubricants, commutator brushes, water, and rubber goods. 11. Station meter and instrument supplies, such as ink and charts. 12. Station record and report forms. 13. Tool expense. 14. Transportation expenses. 15. Meals, traveling, and incidental expenses. 563 Operation and Maintenance Overhead line expenses This account shall include the cost of labor, materials used and expenses incurred in operation and maintenance of transmission plant, the book cost of which is includible in Accounts 354, Towers and fixtures, 355, Poles and fixtures, 356, Overhead conductors and devices. (See Operating Expense Instruction 1 and 2) EXAMPLE ITEMS 1. Work of the following character on poles, towers and fixtures: a. Installing or removing additional clamps or strain insulators on guys in place. b. Moving line or guy pole in relocation of the same pole or section of line. c. Painting poles, towers, crossarms or pole extensions. d. Readjusting and changing position of guys or braces. e. Realigning and straightening poles, cross arms braces, and other pole fixtures. f. Reconditioning reclaimed pole fixtures. g. Relocating crossarms, racks, brackets, and other fixtures on poles. h. Repairing or realigning pins, racks, or brackets. i. Repairing pole supported platform. j. Repairs by others to jointly owned poles. k. Shaving, cutting rot, or treating poles or crossarms in use or salvaged for reuse. l. Stubbing poles already in service. m. Supporting fixtures and conductors and transferring them to new pole during poles replacements. n. Maintenance of pole signs, stencils, tags, etc. 2. Work of the following character on over-head conductors and devices: a. Overhauling and repairing line cutouts, line switches, line breakers, etc. b. Cleaning insulators and bushings. c. Refusing cutouts. d. Repairing line oil circuit breakers and associated relays and control wiring. e. Repairing grounds. f. Retagging, retying, or rearranging position or spacing of conductors. g. Standing by phones, going to calls, cut-ting faulty lines clear, or similar activities at times of emergencies. h. Sampling, testing, changing, purifying, and replenishing insulating oil. i. Repairing line testing equipment. j. Transferring loads, switching and reconnecting circuits and equipment for maintenance purposes. 3. Work of the following character on roads and trails: a. Repairing roadway, bridges, etc. b. Snow removal from roads and trails. c. Maintenance work on publicly owned roads and trails when done by the Utility at its expense. Date Created: August 11, 2005 Page 65 Date Updated: May 8, 2006

67 May 8, 2006 NOTE: Programs that extend the life or provide future benefit of the asset will be recorded to the associated capital accounts. 564 Operation and Maintenance Underground line expenses A. These accounts shall include the cost of labor, materials used and expenses incurred in the operation and maintenance of transmission lines, the book cost of which is includible in Account 358, Underground conductors and devices. (See Operating Expense Instruction 1 and 2). B. If the expenses are not substantial for both overhead and underground lines, these accounts may be combined. EXAMPLE ITEMS 1. Operational work of the following character: a. Supervising line operation. b. Inspecting and testing lightning arresters, circuit breakers, switches, and grounds c. Load tests of circuits. d. Routine line patrolling. e. Routine voltage surveys made to determine the condition or efficiency of transmission system. f. Transferring loads, switching and reconnecting circuits and equipment for operating purposes. (Switching for construction or maintenance purposes is not includible in this account.) g. Routine inspection and cleaning of man-holes, conduit, network and transformer vaults. h. Electrolysis surveys. i. Inspecting and adjusting line-testing equipment, such as voltmeters, ammeters, wattmeters, etc. j. Regulation and addition of oil or gas in high-voltage cable systems. 2. Maintenance work of the following character: a. Cleaning ducts, manholes, and sewer connections. b. Minor alterations of hand holes, man-holes, or vaults. c. Refastening, repairing, or moving racks, ladders, or hangers in manholes, or vaults. d. Plugging and shelving or re-plugging ducts. e. Repairs to sewers and drains, walls and floors, rings and covers. f. Repairing oil circuit breakers, switches, cutouts, and control wiring. g. Repairing grounds. h. Retraining and reconnecting cables in manhole, including transfer of cables from one duct to another. i. Repairing conductors and splices. j. Repairing or moving junction boxes and potheads. k. Re-fireproofing of cables and repairing supports. l. Repairing electrolysis preventive de-vices for cables. m. Repairing cable bonding systems. n. Sampling, testing, changing, purifying and replenishing insulating oil. o. Transferring loads, switching and reconnecting circuits and equipment for maintenance purposes. p. Repairing line testing equipment. q. Repairs to oil or gas equipment in high voltage cable system and replacement of oil or gas Materials and Expenses: a. Transportation expenses. b. Meals, traveling and incidental expenses. c. Tool expenses. d. Operating supplies, such as instrument charts, rubber goods, etc. NOTE: Programs that extend the life or provide future benefit of the asset will be recorded to the associated capital accounts. 566 Operation and Maintenance Miscellaneous transmission expenses This account shall include the cost of labor, materials used and expenses incurred in transmission map and record work, transmission office expenses, and other transmission expenses not provided for elsewhere. EXAMPLE ITEMS Date Created: August 11, 2005 Page 66 Date Updated: May 8, 2006

68 May 8, 2006 Labor: 1. General records of physical characteristics of lines and stations, such as capacities, etc. 2. Land records including the administration of crossing and processing of agreements, planning commission circulations, encroachments and easement inquires or complaints. 3. Ground resistance records. 4. Janitor work at transmission office buildings, including care of grounds, snow removal, cutting grass, etc. 5. Joint pole maps and records. 6. Line load and voltage records. 7. Preparing maps and prints. 8. General clerical and stenographic work. 9. Miscellaneous labor. Materials and Expenses: 10. Building service supplies. 11. Map and record supplies. 12. Transmission office supplies and expenses, printing and stationery. 13. First-aid supplies. 14. Research, development, and demonstration expenses. 567 Operation and Maintenance Right of way payments A. The expense associated with operating and maintaining transmission right of way properties is the only expenditures to be accounted for within this account. (See Operating Expense Instruction 3.) B. If payments cover property used for more than one function, such as production plant and transmission, or by more than one department, the payment shall be apportioned to the appropriate account on an actual, or if necessary, an estimated basis. C. The costs for the property when incurred by the Utility shall be charged to the accounts appropriate for the expense, as if the property were owned. 569 Operation & Maintenance of structures This account shall include the cost of labor, materials used and expenses incurred in the operations and maintenance of structures, the book cost of which is includible in Account 352, Structures and improvements. (See Operating Expense Instruction 1 and 2) Operation and Maintenance of vegetation management This account shall include the cost of labour, materials used and expenses incurred in operation and maintenance of plant specially related to the control of trees, brush and general vegetation which may affect the safe and reliable operation of the transmission system. EXAMPLE ITEMS: Labour: 1. Contract or internal labour associated with trimming, slashing, mowing of trees and brush. 2. Management and supervision of contract crews assigned to vegetation maintenance duties. 3. Application of herbicides to control brush or noxious weeds. 4. The application of herbicides to control weeds in or around substations, switching cubicles or other underground devices. 5. Chemical treatment of right of way areas, other than the initial application occurring as a result of construction of line. Expenses: 6. System record and report forms associated with vegetation management 7. Meals, traveling and incidental expenses, 8. Materials used in vegetation management 575 Operation and Maintenance IT support This account shall include the cost of labor, materials used and expenses incurred in operation and maintenance of owned or leased Information Technology (IT) systems which is assignable to transmission operations and is not provided for elsewhere. EXAMPLE Systems Supported: Date Created: August 11, 2005 Page 67 Date Updated: May 8, 2006

69 May 8, 2006 AMFM (Geographical Information Systems) Crew Dispatch Applications Repair tracking tools Workforce management systems Outage reporting and management systems Data reliability applications 580 Operation & Maintenance Supervision and engineering This account shall include the cost of labor and expenses incurred in the general supervision and direction of the operation and maintenance of the distribution system. Direct supervision of specific activities, such as station operation, line operation, meter department operation, etc., shall be charged to the appropriate account. (See Operating Expense Instruction 1) 581 Operation and Maintenance Control centre operations This account shall include the cost of labor, materials used and expenses incurred in load, crew and lineman dispatching operations and maintenance pertaining to the distribution of electricity. EXAMPLE ITEMS Labor: 1. Directing switching. 2. Arranging and controlling clearances for construction, maintenance, test and emergency purposes. 3. Controlling system voltages. 4. Preparing operating reports. 5. Obtaining reports on the weather and special events. Expenses: 6. Directing crews and lineman in day-to-day activities or service restoration. 7. Maintaining SCADA equipment Expenses: 8. Communication service provided for sys-tem control purposes. 9. System record and report forms. 10. Meals, traveling and incidental expenses. 11. Contractor costs 582 Operation and Maintenance Station equipment expenses This account shall include the cost of labor, materials used and expense incurred in operation and maintenance of plant, the book cost of which is includible in Account 362, Station equipment and Account 363 Storage battery equipment. Refer to Account 584, Underground line expenses, for example activities to include in this account. (See Operating expense Instruction 1 and 2). 583 Operation and Maintenance Overhead line expenses This account shall include the cost of labor, materials used and expenses incurred in the operations and maintenance of overhead distribution line facilities, the book cost of which is includible in Account 364, Poles, towers and fixtures, and Account 365, Overhead conductors and devices. (See Operating Expense Instruction 1 and 2) EXAMPLE ITEMS 1. Work of the following character on poles, towers, and fixtures: a. Installing additional clamps or removing clamps or strain insulators on guys in place. b. Moving line or guy pole in relocation of pole or section of line. c. Painting poles, towers, crossarms, or pole extensions. d. Readjusting and changing position of guys or braces. e. Realigning and straightening poles, crossarms, braces, pins, racks, brackets, and other pole fixtures. f. Reconditioning reclaimed pole fixtures. g. Relocating crossarms, racks, brackets, and other fixtures on poles. h. Repairing pole supported platform. i. Repairs by others to jointly owned poles. j. Shaving, cutting rot, or treating poles or crossarms in use or salvaged for reuse. k. Stubbing poles already in service. l. Supporting conductors, transformers, and other fixtures and transferring them to new poles Date Created: August 11, 2005 Page 68 Date Updated: May 8, 2006

70 May 8, 2006 during pole replacements. m. Maintaining pole signs, stencils, tags, etc. 2. Work of the following character on over-head conductors and devices: a. Overhauling and repairing line cutouts, line switches, line breakers, and capacitor installations. b. Cleaning insulators and bushings. c. Refusing line cutouts. d. Repairing line oil circuit breakers and associated relays and control wiring. e. Repairing grounds. f. Retagging, retying, or rearranging position or spacing of conductors. g. Standing by phones, going to calls, cut-ting faulty lines clear, or similar activities at times of emergency. h. Sampling, testing, changing, purifying, and replenishing insulating oil. i. Transferring loads, switching, and reconnecting circuits and equipment for maintenance purposes. j. Repairing line testing equipment. 3. Work of the following character on over-head services: a. Moving position of service either on pole or on customers premises. b. Pulling slack in service wire. c. Retying service wire. d. Refastening or tightening service bracket. NOTE: Programs that extend the life or provide future benefit of the asset will be recorded to the associated capital accounts. 584 Operation and Maintenance Underground line expenses This account shall include the cost of labor, materials used and expenses incurred in the operation and maintenance of underground distribution lines, the book cost of which is includible in Account 367, Underground conductors and devices. (See Operating Expense Instruction 1 and 2). EXAMPLE ITEMS 1. Line work of the following character: a. Supervising line operation. b. Changing line transformer taps. c. Inspecting and testing lightning arresters, line circuit breakers, switches and grounds. d. Inspecting and testing line transformers for the purpose of determining load, temperature or operating performance. e. Patrolling lines. f. Load tests and voltages surveys of feeders, circuits and line transformers. g. Removing line transformers and voltage regulators with or without replacements. h. Installing line transformers or voltage regulators with or without change in capacity provided that the first installation of these items is included in Account 368, Line transformers. i. Voltage surveys, either routine or upon request of customers, including voltage tests at customers main switch. j. Transferring loads, switching and re-connecting circuits and equipment for operation purposes. k. Electrolysis surveys. l. Inspecting and adjusting line testing equipment. 2. Station work of the following character: a. Supervising station operation. b. Adjusting station equipment where such adjustment primarily affects performance, such as regulating the flow of cooling water, adjusting current in fields of a machine, changing voltage of regulators or changing station transformer taps. c. Keeping station log and records and pre-paring reports on station operation. d. Inspecting, testing and calibrating station equipment for the purpose of checking its performance. e. Operating switching and other station equipment. f. Standing watch, guarding and patrolling station and station yard. g. Sweeping, mopping and tidying station. h. Care of grounds, including snow removal, cutting grass, etc. Date Created: August 11, 2005 Page 69 Date Updated: May 8, 2006

71 May 8, Work of the following character on underground conduit, services, conductors and devices: a. Cleaning ducts, manholes, and sewer connections. b. Moving or changing position of conduit or pipe. c. Minor alterations of hand holes, man-holes, or vaults. d. Refastening, repairing, or moving racks, ladders, or hangers in manholes or vaults. e. Plugging and shelving ducts. f. Repairs to sewers, drains, walls, and floors, rings and covers. g. Service restoration of slump trench h. Repairing circuit breakers, switches, cutouts, network protectors and associated relays and control wiring. i. Repairing grounds. j. Retraining and reconnecting cables in manholes including transfer of cables from one duct to another. k. Repairing conductors and splices. l. Repairing or moving junction boxes and potheads or terminators m. Re-fireproofing cables and repairing sup-ports. n. Repairing electrolysis preventive de-vices for cables. o. Repairing cable bonding systems. p. Sampling, testing, changing, purifying and replenishing insulating oil. q. Transferring loads, switching and reconnecting circuits and equipment for maintenance purposes. r. Repairing line testing equipment. s. Repairing oil or gas equipment in high voltage cable systems and replacement of oil or gas. t. Restoration associated with oil spills from padmount equipment u. Repainting of padmount transformers, pedestals and switching cubicles v. Straightening or resetting padmount equipment w. Cleaning ducts. x. Repairing any underground service plant. 4. Expenses: a. Tool expenses. b. Transportation expenses. c. Meals, traveling and incidental expense. d. Operating supplies, such as instrument charts, rubber goods, lubricants, commutator brushes, water and rubber goods, etc. e. Building service expenses f. Station meter and instrument supplies, such as ink and charts. g. Station record and report forms. NOTE A: Programs that extend the life or provide future benefit of the asset will be recorded to the associated capital accounts. NOTE B: If the Utility owns storage battery equipment used for supplying electricity to customers in periods of emergency, the cost of operating and maintenance labor and of supplies, such as acid, gloves, hydrometers, thermometers, soda, automatic cell fillers, acid proof shoes, etc., shall be included in this account. If significant in amount, a separate subdivision shall be maintained for such expenses. 585 Operation and Maintenance Street lighting and signal system expenses This account shall include the cost of labor, materials used and expenses incurred in the operation and maintenance of street lighting and signal system plant, the book cost of which is includible in Account 373, Street lighting and signal systems. (See Operating Expense Instruction 1 and 2). Costs include: (a) The operation of street lighting and signal system plant which is owned or leased by the Utility; and (b) The operation and maintenance of such plant owned by customers where such work is done regularly as a part of the street lighting and signal system service. EXAMPLE ITEMS Labor: 1. Supervising street lighting and signal systems operation 2. Replacing individual lamps and incidental cleaning of glassware and fixtures in connection therewith. 3. Routine patrolling for lamp outages, extraneous nuisances or encroachments, etc. 4. Testing lines and equipment including voltage and current measurement. Date Created: August 11, 2005 Page 70 Date Updated: May 8, 2006

72 May 8, Winding and inspection of time switch and other controls. Materials and Expenses: 6. Street lamps. 7. Transportation and tool expense. 8. Meals, traveling, and incidental expenses. 586 Operation and Maintenance meter expenses This account shall include the cost of labor, materials used and expenses incurred in the operation and maintenance of customer meters and associated equipment, the book cost of which is includible in Account 370, Conventional meters and Account 371 Automated meters. (See Operating Expense Instruction 1 and 2). EXAMPLE ITEMS Labor: 1. Supervising meter operation. 2. Clerical work on meter history and associated equipment record cards, test cards, and reports. 3. Consolidating meter installations due to elimination of separate meters for different rates of service. 4. Changing or relocating meters, instrument transformers, time switches, and other metering equipment. 5. Resetting time controls, checking operation of demand meters and other metering equipment, when done as an independent operation. 6. Inspecting and adjusting meter testing equipment. 7. Inspecting and testing meters, instrument transformers, time switches, and other metering equipment on premises or in shops excluding inspecting and testing incidental to maintenance. 8. Performance of compliance audits internal and federal. Materials and Expenses: 9. Meter seals and miscellaneous meter supplies. 10. Transportation expenses. 11. Meals, traveling, and incidental expenses. 12. Tool expenses. 13. Federal fees for certification of test equipment, meters and audits 14. Internal and external audit costs NOTE: The cost of setting and testing of a meter is chargeable to utility plant Account 370, Conventional meters and Account 371, Automated meters. 587 Operation and Maintenance Customer installations expenses This account shall include the cost of labor, materials used and expenses incurred in work on customer installations in inspecting premises and in rendering services to customers of the nature of those indicated by the list of items hereunder. EXAMPLE ITEMS Labor: 1. Supervising customer installations work. 2. Inspecting premises, including check of wiring for code compliance. 3. Investigating, locating, and clearing grounds on customers wiring. 4. Investigating service complaints, including load tests of motors and lighting and power circuits on customers premises; field investigations of complaints on bills or of voltage. 5. Installing, removing, renewing, and changing lamps and fuses. 6. Radio, television and similar interference work including erection of new aerials on customers premises and patrolling of lines, testing of lightning arresters, inspection of pole hardware, etc., and examination on or off premises of customers appliances, wiring, or equipment to locate cause of interference. 7. Installing, connecting, reinstalling, or removing leased property on customers premises. 8. Testing, adjusting, and repairing customers fixtures and appliances in shop or on premises. 9. Cost of changing customers equipment due to changes in service characteristics. 10. Investigation of current diversion including setting and removal of check meters and securing special readings thereon; special calls by employees in connection with discovery and settlement of current diversion; changes in customer wiring and any other labor cost identifiable as caused by current diversion. 11. Time, material and expenses incurred to provide contracted services on customer owned Date Created: August 11, 2005 Page 71 Date Updated: May 8, 2006

73 May 8, 2006 facilities including customer owned street lighting systems. 12. Time, material and expense for contracted services provided by a distribution Utility to an industrial, generation or transmission company. Materials and Expenses: 13. Lamp and fuse renewals for customers. 14. Materials used in servicing customers fixtures, appliances and equipment. 15. Power, light, heat, telephone, and other expenses of appliance repair department. 16. Tool expense. 17. Transportation expense, including pick-up and delivery charges. 18. Meals, traveling and incidental expenses. 19. Rewards paid for discovery of current diversion. 588 Operation and Maintenance Miscellaneous distribution expenses This account shall include the cost of labor, materials used and expenses incurred in distribution system operation and maintenance not provided for elsewhere. EXAMPLE ITEMS Labor: 1. General records of physical characteristics of lines and substations, such as capacities, etc. 2. Ground resistance records. 3. Joint pole maps and records. 4. Distribution system voltage and load records. 5. Preparing maps and prints. 6. Service interruption and trouble records. 7. General clerical and stenographic work except that chargeable to Account 586, Operation and Maintenance Meter expenses. 8. Land records including the administration of crossing and processing of agreements, planning commission circulations encroachments and easements inquires or complaints. 9. Work of similar nature to that listed in other distribution operation and maintenance accounts. Materials and Expenses: 10. Operating records covering poles, trans-formers, manholes, cables, and other distribution facilities. Exclude meter records chargeable to Account 586. Operation and Maintenance Meter expenses and station records chargeable to Account 582, Operation and Maintenance Station expenses 11. Janitor work at distribution office buildings including snow removal, cutting grass, etc. 12. Building service expenses. 13. Miscellaneous office supplies and expenses, printing, and stationery, maps and records and first-aid supplies. 14. Research, development, and demonstration expenses 15. Maintenance of office furniture and equipment used by distribution system control centre department. (See Account System communication & control) 16. Fees associated with distribution fringe service areas. 589 Operation and Maintenance Right of way payments A. The expense associated with operating and maintaining distribution right of way properties is the only expenditure to be accounted for within this account. (See Operating Expense Instruction 3.) B. If payments cover property used for more than one function, such as production plant and transmission, or by more than one department, the payment shall be apportioned to the appropriate account on an actual, or if necessary, an estimated basis. C. The costs for the property when incurred by the Utility shall be charged to the accounts appropriate for the expense, as if the property were owned. 591 Operation & Maintenance of structures This account shall include the cost of labor, materials used and expenses incurred in operation and maintenance of structures, the book cost of which is includible in Account 361, Structures and improvements. (See Operating Expense Instruction 1 and 2) Operation and Maintenance vegetation management Date Created: August 11, 2005 Page 72 Date Updated: May 8, 2006

74 May 8, 2006 This account shall include the cost of labour, materials used and expenses incurred in operation and maintenance of plant specially related to the control of trees, brush and general vegetation which may affect the safe and reliable operation of the distribution system. EXAMPLE ITEMS: Labour: 1. Contract or internal labour associated with trimming, slashing or mowing of trees and brush. 2. Management and supervision of contract crews assigned to vegetation maintenance duties. 3. Application of herbicides to control brush or noxious weeds. 4. The application of herbicides to control weeds in or around substations, switching cubicles or other underground devices. 5. Chemical treatment of right of way areas, other than the initial application occurring as a result of construction of line. Expenses: 1. System record and report forms associated with vegetation management 2. Meals, traveling and incidental expenses, 3. Materials used in vegetation management 595 Operation & Maintenance of line transformers This account shall include the cost of labor, materials used and expenses incurred in operation and maintenance of distribution line transformers, the book cost of which is includible in Account 368, Line transformers. (See Operating Expense Instruction 1 and 2) 599 Operation and Maintenance Operation & Maintenance IT support This account shall include the cost of labor, materials used and expenses incurred in operation and maintenance of owned or leased Information Technology (IT) systems which is assignable to distribution operations and is not provided for elsewhere. EXAMPLE Systems Supported: AMFM (Geographical Information Systems) Crew Dispatch Applications Repair tracking tools Workforce management systems Outage reporting and management systems Data reliability applications 901 Supervision This account shall include the cost of labor and expenses incurred in the general direction and supervision of customer accounting and collecting activities. Direct supervision of a specific activity shall be charged to Account 902, Meter reading expenses, or Account 903, Customer records and collection expenses, as appropriate. (See Operating Expense Instruction 1) 902 Meter reading expenses This account shall include the cost of labor, materials used and expenses incurred in reading customer meters, and determining consumption. These costs shall include salaries and wages, stationery, postage, transportation, delivery expenses and the charges for contract work performed by other parties engaged in these functions. EXAMPLE ITEMS Labor: 1. Preparatory costs for obtaining meter readings by mail. 2. Changing and collecting meter charts used for billing purposes. 3. Inspecting time clocks, checking seals, etc., when performed by meter readers. 4. Reading meters, including demand meters. 5. Collecting from prepayment meters. 7. Maintaining records. 8. Computing estimated or average consumption. Materials and Expenses: Date Created: August 11, 2005 Page 73 Date Updated: May 8, 2006

75 May 8, Badges, lamps, and uniforms. 10. Demand charts, meter books and binders and forms for recording readings, but not the cost of preparation. 903 Customer records and collection expenses This account shall include all costs related to work on customer applications, contracts, orders, credit investigations, billing and accounting, collections and complaints. These costs shall include salaries and wages, stationery, postage, delivery expense and the charges for contract work performed by other parties engaged in these functions. EXAMPLE ACTIVITIES: Customer Service Contact Centre (related staff charges and expenses) Back office analysis Banking Fees in relation to billing and collection Billing staff chares and expenses Third Party Billing Agency Fees Third Party Collection Agency Fees NOTE: The cost of work on meter history and meter location records is chargeable to Account 586, Operation & Maintenance Meter expenses. EXAMPLE ITEMS Labor: 1. Receiving, preparing, recording and handling routine orders for service, disconnections, transfers or meter tests initiated by the customer, excluding the cost of carrying out such orders, which is chargeable to the account appropriate for the work called for by such orders. 2. Investigations of customers credit and keeping of records pertaining thereto, including records of uncollectible accounts written off. 3. Receiving, refunding or applying customer deposits and maintaining customer deposit, line extension, and other miscellaneous records. 4. Preparing billing data. 5. Operating billing and bookkeeping machines. 6. Verifying billing records with contracts or rate schedules. 7. Preparing bills for delivery, and mailing or delivering bills. 8. Collecting revenues, including collection from prepayment meters unless incidental to meterreading operations. 9. Balancing collections, preparing collections for deposit, and preparing cash reports. 10. Posting collections and other credits or charges to customer accounts and extending unpaid balances. 11. Balancing customer accounts and controls. 12. Preparing, mailing, or delivering delinquent notices and preparing reports of delinquent accounts. 13. Receiving, recording, and handling of inquiries, complaints, and requests for investigations from customers, including preparation of necessary orders, but excluding the cost of carrying out such orders, which is chargeable to the account appropriate for the work called for by such orders. 14. Statistical and tabulating work on customer accounts and revenues, but not including special analyses for sales department, rate department, or other general purposes, unless incidental to regular customer accounting routines. Materials and Expenses: 15. Address plates and supplies. 16. Cash overages and shortages. 17. Boards or fees to others for collecting. 18. Payments to credit organizations for investigations and reports. 19. Postage. 20. Transportation, meals, and incidental expenses. 21. Bank charges, exchange, and other fees for cashing and depositing customers checks. 22. Forms for recording orders for services removals, etc. 23. Rent of mechanical equipment. 904 Uncollectible accounts This account shall be charged with amounts sufficient to provide for losses from uncollectible utility Date Created: August 11, 2005 Page 74 Date Updated: May 8, 2006

76 May 8, 2006 revenues. Concurrent credits shall be made to Account 144, Accumulated provision for uncollectible accounts credit. Losses from uncollectible accounts shall be charged to Account Miscellaneous customer accounts expenses This account shall include the cost of labor, materials used and expenses incurred not provided for in other accounts. EXAMPLE ITEMS Labor: 1. General clerical and stenographic work. 2. Miscellaneous labor. Materials and Expenses: 3. Communication service. 4. Miscellaneous office supplies and expenses and stationery and printing other than those specifically provided for in Accounts 902, Meter reading expenses, and 903, Customer records and collection expenses IT customer service This account shall include the cost of labor, materials used and expenses incurred the operation and maintenance of owned or leased Information Technology (IT) systems which is assignable to customer service operations covered under accounts and not provided for in other accounts. EXAMPLE Systems Supported Order Entry and related tracking tools Billing, accounts Receivable and collections Applications (SAP / ISU) Call Centre Infrastructure, Telecommunications / Networks 907 Supervision This account shall include the cost of labor and expenses incurred in the general direction and supervision of customer service activities, the object of which is to encourage safe, efficient and economical use of the Utility s service. Direct supervision of a specific activity within customer service and informational expense classification shall be charged to the account wherein the costs of such activity are included. (See Operating Expense Instruction 1) 908 Customer assistance expenses This account shall include the cost of labor, materials used and expenses incurred in district based (or field based) activities which include promoting and encouraging safe, efficient and economical use of the Utility s service; these activities are not provided for in other accounts. EXAMPLE ITEMS 1. Providing services to the community 2. Providing services related to energy conservation 3. Providing or demonstrating technical advice 909 Informational and instructional advertising expenses This account shall include the cost of labor, materials used and expenses incurred in activities conducted by the corporate communications groups which primarily convey information to the public promoting and encouraging safe, efficient and economical use of the Utility s service. EXAMPLE ITEMS 1. Labour and expenses of the Corporate Communications Group 2. Agency fees for developing promotional material, campaigns, direct mailings, ad placements, merchandising requirements, etc. NOTE A: Exclude from this account and charge to Account 930.2, Miscellaneous general expenses, the cost of publication of stockholder reports, dividend notices, bond redemption notices, financial statements, and other notices of a general corporate character. Exclude also all expenses of a promotional, institutional, goodwill or political nature, which are includible in such accounts and Account 426.4, Expenditures for certain civic, political and related activities. 910 Miscellaneous customer service and informational expenses Date Created: August 11, 2005 Page 75 Date Updated: May 8, 2006

77 May 8, 2006 This account shall include the cost of labor, materials used and expenses incurred in connection with customer service and informational activities which are not includible in other customer information expense accounts. EXAMPLE ITEMS Labor: 1. General clerical and stenographic work not assigned to specific customer service and informational programs. 2. Miscellaneous labor. Materials and Expenses: 3. Communication service. 4. Printing, postage and office supplies expenses. 916 Miscellaneous sales expenses This account shall include the cost of labor, materials used and expenses incurred in connection with sales activities, except merchandising, which are includible in Account 909, Informational and instructional advertising expenses. EXAMPLE ITEMS Labor: 1. General clerical and stenographic work not assigned to specific functions. 2. Special analysis of customer accounts and other statistical work for sales purposes not a part of the regular customer accounting and billing routine. 3. Miscellaneous labor. Materials and Expenses: 4. Communication service. 5. Printing, postage, and office supplies and expenses applicable to sales activities 920 Administrative and general salaries A. This account shall include the compensation (salaries, bonuses, and other consideration for services, but not including directors fees) of officers, executives, and other employees of the Utility properly chargeable to utility operations and not chargeable directly to a particular operating function. B. This account may be subdivided in accordance with a classification appropriate to the departmental or other functional organization of the Utility. 921 Office supplies and expenses A. This account shall include office supplies and expenses incurred in connection with the general administration of the Utility s operations, which are assignable to specific administrative or general departments and are not specifically provided for in other accounts. This includes the expenses of the various administrative and general departments, the salaries and wages of which are includible in Account 920, Administrative and general salaries. B. This account may be subdivided in accordance with a classification appropriate to the departmental or other functional organization of the Utility. NOTE: Office expenses which are clearly applicable to any group of operating expenses other than the administrative and general group shall be included in the appropriate account in such group. Further, general expenses which apply to the Utility as a whole rather than to a particular administrative function shall be included in Account 930.2, Miscellaneous general expenses. EXAMPLE ITEMS 1. Automobile service, including charges through clearing account. 2. Bank messenger and service charges. 3. Books, periodicals, bulletins and subscriptions to newspapers, newsletters, tax services, etc. 4. Building service expenses for customer accounts, sales, and administrative and general purposes. 5. Communication service expenses. 6. Cost of individual items of office equipment used by general departments which are of small value or short life. Date Created: August 11, 2005 Page 76 Date Updated: May 8, 2006

78 May 8, Membership fees and dues in trade, technical, and professional associations paid by a Utility for employees. (Company memberships are includible in Account 930.2, Miscellaneous general expenses) 8. Office supplies and expenses. 9. Payment of court costs, witness fees and other expenses of legal department. 10. Postage, printing and stationery. 11. Meals, traveling and incidental expenses. 922 Administrative expenses transferred Credit. This account shall be credited with administrative expenses recorded in Accounts 920, Administrative and general salaries, and 921, Office supplies and expenses which are transferred to construction costs or to non-utility accounts. (See Electric Plant Instruction 5) 923 Outside services employed. A. This account shall include the fees and expenses of professional consultants and others for general services which are not applicable to a particular operating function or to other accounts. It shall include also the pay and expenses of persons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the Utility. B. This account shall be so maintained as to permit ready summarization according to the nature of service and the person furnishing the same. EXAMPLE ITEMS 1. Fees, pay and expenses of accountants and auditors, actuaries, appraisers, attorneys, engineering consultants, management consultants, negotiators, public relations counsel, tax consultants, etc. 2. Supervision fees and expenses paid under contracts for general management services. NOTE: Do not include inspection and brokerage fees and Commissions chargeable to other accounts or fees and expenses in connection with security issues which are includible in the expenses of issuing securities. 924 Insurance premiums A. This account shall include the cost of insurance premiums. B. Records shall be kept so as to show the amount of coverage for each class of insurance carried, the property covered, and the applicable premiums. Any dividends distributed by mutual insurance companies shall be credited to the accounts to which the insurance premiums were charged. EXAMPLE ITEMS 1. Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, directors and officers, liability, lightning, fidelity, riot, and similar insurance. 2. Special costs incurred in procuring insurance. 3. Insurance inspection service. 4. Insurance counsel, brokerage fees, and expenses. NOTE A: The cost of insurance shall be charged to construction either directly or by transfer to construction work orders from this account. NOTE B: The cost of insurance for the following classes of property shall be charged as indicated. (1) Electric plant leased to others, to Account 413, Expenses of electric plant leased to others. (2) Non-utility property, to Account 417, Revenue from non-utility operations. NOTE C: The cost of labor and related supplies and expenses of administrative and general employees who are only incidentally engaged in property insurance work may be included in Accounts 920, Administrative and general salaries, and 921, Office supplies and expenses, as appropriate. 925 Injuries and damages A. This account shall include the cost reserve accruals to protect the Utility against injuries and damages claims of employees or others, losses of such character not covered by insurance, and Date Created: August 11, 2005 Page 77 Date Updated: May 8, 2006

79 May 8, 2006 expenses incurred in settlement of injuries and damages claims. It shall also include the cost of labor and related supplies and expenses incurred in injuries and damages activities. B. Reimbursements from insurance companies or others for expenses charged hereto on account of injuries and damages and insurance dividends or refunds shall be credited to this account. EXAMPLE ITEMS 1. Amounts credited to Accumulated provision for self insurance, Account 228.1, for similar protection. 2. Losses not covered by insurance or re-serve accruals on account of injuries or deaths to employees or others and damages to the property of others. 3. Fees and expenses of claim investigators. 4. Payment of awards to claimants for court costs and attorneys services. 5. Medical and hospital service and expenses for employees as the result of occupational injuries, or resulting from claims of others. 6. Compensation payments under work-men s compensation laws. 7. Compensation paid while incapacitated as the result of occupational injuries. (See Note A.) 8. Cost of safety, accident prevention and similar educational activities. NOTE A: Payments to or on behalf of employees for accident or death benefits, hospital expenses, medical supplies or for salaries while incapacitated for service or on leave of absence beyond periods normally allowed, when not the result of occupational injuries, shall be charged to Account 926, Employee pensions and benefits. (See also Note B of Account 926, employee pensions and benefits) NOTE B: The cost of injuries and damages or reserve accruals capitalized shall be charged to construction directly or by transfer to construction work orders from this account. NOTE C: Exclude here from the time and expenses of employees (except those engaged in injuries and damages activities) spent in attendance at safety and accident prevention educational meetings, if occurring during the regular work period. NOTE D: The cost of labor and related supplies and expenses of administrative and general employees who are only incidentally engaged in injuries and damages activities may be included in Accounts 920, Administrative and general salaries, and 921, Office supplies and expenses, as appropriate. NOTE E: Recoveries from insurance companies or others for property damages shall be credited to the account charged with the cost of the damage. If the damaged property has been retired, the credit shall be to the appropriate account for accumulated provision for depreciation. 926 Employee pensions and benefits A. The cost of pension and benefit expense as determined in the CICA Handbook Section 3461 will be recorded in this account. B. Utilities will segregate costs for non-utility pensions and benefits expenses, and those amounts charged to construction, operations & maintenance and G&A accounts either through sub accounts or a credit to this account for that value. EXAMPLE ITEMS 1. Cost of pension plan expense. 2. Accruals for or payments to pension funds or to insurance companies for pension purposes. 3. Group and life insurance premiums (credit dividends received). 4. Payments for medical and hospital services and expenses of employees when not the result of occupational injuries. 5. Payments for accident, sickness, hospital, and death benefits or insurance. 6. Payments to employees incapacitated for service or on leave of absence beyond periods normally allowed, when not the result of occupational injuries, or in excess of statutory awards. NOTE A: Salaries paid to employees during periods of non-occupational sickness may be charged to the appropriate labor account rather than to employee benefits. NOTE B: The Utility s total pension and total benefit expenses prior to any amounts charged out need to be provided, if requested. 928 Board expenses Date Created: August 11, 2005 Page 78 Date Updated: May 8, 2006

80 May 8, 2006 A. This account shall include all third party expenses and payments for fees assessed against the Utility for regulatory proceedings. Costs will include pay and expenses of the Board, its officers, agents, and employees, and also including payments made to the province for the administration of the EUA. NOTE: Any and all costs in excess of Board scale, unless approved by the Board and all disallowed hearing costs would be charged to Account 941 Board expenses disallowed. B. Amounts of regulatory Board expenses which by approval or direction of the Board are to be spread over future periods shall be charged to Account 186, Miscellaneous deferred debits, and amortized by charges to this account. C. The Utility shall be prepared to show the cost of each formal case. EXAMPLE ITEMS 1. Third party external salaries, fees, retainers, and expenses of counsel, solicitors, attorneys, accountants, engineers, clerks, attendants, witnesses, and others engaged in the prosecution of, or defense against petitions or complaints presented to regulatory bodies, or in the valuation of property owned or used by the Utility in connection with such cases. 2. Expenses as presented for reimbursement by third parties for office supplies and expenses, payments to public service or other regulatory Boards, stationery and printing, traveling expenses, and other expenses incurred directly in connection with formal cases before regulatory Boards. NOTE A: Exclude from this account and include in other appropriate operating expense accounts, expenses incurred in the improvement of service, additional inspection, or rendering reports, which are made necessary by the rules and regulations, or orders, of regulatory bodies. NOTE B: Do not include in this account amounts includible in Account 302, Franchises and consents, Account 181, Unamortized debt expense General advertising expenses This account shall include the cost of labor, materials used, and expenses incurred in advertising and related activities, the cost of which by their content and purpose are not provided for elsewhere. EXAMPLE ITEMS Labor: 1. Supervision. 2. Preparing advertising material for news-papers, periodicals, billboards, etc., and preparing or conducting motion pictures, radio and television programs. 3. Preparing booklets, bulletins, etc., used in direct mail advertising. 4. Preparing window and other displays. 5. Clerical and stenographic work. 6. Investigating and employing advertising agencies, selecting media and conducting negotiations in connection with the placement and subject matter of advertising. Materials and Expenses: 7. Advertising in newspapers, periodicals, billboards, radio, etc. 8. Advertising matter such as posters, bulletins, booklets, and related items. 9. Fees and expenses of advertising agencies and commercial artists. 10. Postage and direct mail advertising. 11. Printing of booklets, dodgers, bulletins, etc. 12. Supplies and expenses in preparing advertising materials. 13. Office supplies and expenses. NOTE A: Properly includible in this account is the cost of advertising activities on a local or national basis of a good will or institutional nature, which is primarily designed to improve the image of the Utility or the industry, including advertisements which inform the public concerning matters affecting the company s operations, such as, the cost of providing service, the company s efforts to improve the quality of service, the company s efforts to improve and protect the environment, etc. Entries relating to advertising included in this account shall contain or refer to supporting documents which identify the specific advertising message. If references are used, copies of the advertising message shall be readily available. NOTE B: Exclude from this account and include in Account 426.4, Expenditures for certain civic, political Date Created: August 11, 2005 Page 79 Date Updated: May 8, 2006

81 May 8, 2006 and related activities, expenses for advertising activities, which are designed to solicit public support or the support of public officials in matters of a political nature Miscellaneous general expenses This account shall include the cost of labor and expenses incurred in connection with the general management of the Utility not provided for elsewhere. EXAMPLE ITEMS Labor: 1. Miscellaneous labor not elsewhere provided for. Expenses: 2. Industry association dues for company memberships. 3. Contributions for conventions and meetings of the industry. 4. Research, development, and demonstration expenses not charged to other operation and maintenance expense accounts on a functional basis. 5. Communication service not chargeable to other accounts. 6. Trustee, registrar, and transfer agent fees and expenses. 7. Stockholders meeting expenses. 8. Dividend and other financial notices. 9. Printing and mailing dividend checks. 10. Directors fees and expenses. 11. Publishing and distributing annual re-ports to stockholders. 12. Public notices of financial, operating and other data required by regulatory statutes, not including, however, notices required in connection with security issues or acquisitions of property. 931 Rents This account shall include rents properly includible in utility operating expenses for the property of others used, occupied, or operated in connection with utility operations other than head office rent. This account shall include rents for retail offices and field offices. Exclude only those payments associated with operating and maintaining right of way properties. (See Operating Expense Instruction 3) Head office rent This account shall include rents properly includible in utility operating expenses for the property of others used, occupied, or operated in connection with the head office. 934 IT general & administrative expense This account shall include the compensation (salaries, and expenses) employees of the IT department related to general and administrative activities properly chargeable to utility operations for the provision of regular utility services and not chargeable directly to a particular operating function. Example Systems Supported: Document/Records Management Backoffice systems ( , file - print, web, etc). Office Furniture tracking systems Treasury and Accounting applications used for corporate reporting 935 Maintenance of general plant A. This account shall include the cost assignable to customer accounts, sales and administrative and general functions of labor, materials used and expenses incurred in the maintenance of property, where the book cost is includible in Account 390, Structures and improvements, Account 391, Office furniture and equipment, Account Computer hardware & voice and data network equipment, Account 397, Communication equipment, and Account 398 Miscellaneous equipment. (See Operating Expense Instruction 2) B. Maintenance expenses on office furniture and equipment used other than in general, commercial and sales offices shall be charged to the following accounts: Date Created: August 11, 2005 Page 80 Date Updated: May 8, 2006

82 May 8, 2006 Hydraulic Power Generation, Account 537. Other Power Generation, Account 554, Transmission, Account 566, Distribution, Account 588, Appropriate clearing account, if used. NOTE: Maintenance of plant included in other general equipment accounts shall be included herein unless charged to clearing accounts or to the particular functional maintenance expense account indicated by the use of the equipment. 941 Board expenses disallowed. This account shall include all costs exceeding the Board scale, unless approved by the Board, and all disallowed costs in regards to third party expenses and payments made for fees assessed against the Utility for formal regulatory proceedings. Amounts within the Board scale value shall be recorded in Account 928, Board Expenses. 944 Load settlement This account shall include all expenses properly includible in utility operating expenses, (except pay of regular employees only incidentally engaged in such work) incurred by the Utility in connection with activities to support administration and execution of the load settlement as defined under the AESO system settlement code. These costs shall include salaries and wages stationery, postage, delivery expense and the charges for contract work performed by other parties engaged in these functions. EXAMPLE ITEMS: Analyze, arbitrate and resolve disputes as they so arise, including payments made to the regulatory board for fees, pay and expenses of agents, and employees, and related expenses of the formal Labour costs associated with the analysis / assessment of code changes. Processing, profiling, analysis, measuring, and reporting requirements to administer provisions as set forward by the system settlement code AESO bill processing, Staff costs and expenses of the settlement group IT load settlement This account shall include the cost of labor and expenses incurred in IT (Information Technology) activities to support AESO transactions provisioned under agreements such as pooling or interconnection. EXAMPLE Systems Supported: Interconnection measurement and tracking system Settlement profiling application Economic assessment modeling tools used to assess evolutionary code change Date Created: August 11, 2005 Page 81 Date Updated: May 8, 2006

83 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX 20XY January XX, 20XX Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

84 Minimum Filing Requirements V9 Phase 1 May 4, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Table of Contents XYZ UTILITY INC XX 20XY... 1 GENERAL TARIFF APPLICATION... 1 JANUARY XX, 20XX... 1 TABLE OF CONTENTS... 2 PREAMBLE... 1 SECTION 1 - INTRODUCTION... 5 APPLICATION OVERVIEW... 5 COST DRIVERS... 5 TARIFF/RATE APPLIED FOR... 5 OTHER APPROVALS (DEFERRAL ACCOUNTS) REQUESTED FOR... 6 ORGANIZATIONAL STRUCTURE... 6 FORECASTING METHODOLOGY/PROCESS AND KEY ASSUMPTIONS... 6 Assumptions... 6 Forecasting Methodologies... 7 MAJOR ISSUES AND POLICY CHANGES... 7 REQUIRED SCHEDULES... 8 OPERATIONAL PERFORMANCE... 8 SECTION 2 BOARD DIRECTIVES... 9 SECTION 3 TRANSMISSION REVENUE REQUIREMENTS SUMMARY TRANSMISSION REVENUE REQUIREMENT SCHEDULES SECTION 4 TRANSMISSION FUEL COSTS SUMMARY TRANSMISSION FUEL COST SCHEDULE SECTION 5 TRANSMISSION OPERATING COSTS OPERATION AND MAINTENANCE TAXES OTHER THAN INCOME TRANSMISSION OPERATING COST SCHEDULES SECTION 6 TRANSMISSION DEPRECIATION SUMMARY TRANSMISSION DEPRECIATION SCHEDULES SECTION 7 TRANSMISSION INCOME TAXES SUMMARY TRANSMISSION INCOME TAX SCHEDULES SECTION 8 TRANSMISSION REVENUE OFFSETS Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

85 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX SUMMARY TRANSMISSION REVENUE OFFSET SCHEDULES SECTION 9 TRANSMISSION RETURN ON RATE BASE SUMMARY TRANSMISSION RETURN ON RATE BASE SCHEDULES SECTION 10 TRANSMISSION RATE BASE SUMMARY Business Cases Post Implementation Reviews Necessary Working Capital Other Items TRANSMISSION RATE BASE SCHEDULES SECTION 11 TRANSMISSION NECESSARY WORKING CAPITAL SUMMARY TRANSMISSION NECESSARY WORKING CAPITAL SCHEDULES SECTION 12 DISTRIBUTION REVENUE REQUIREMENTS SUMMARY DISTRIBUTION REVENUE REQUIREMENT SCHEDULES SECTION 13 DISTRIBUTION RETAIL REVENUE SUMMARY DISTRIBUTION REVENUE SCHEDULES SECTION 14 DISTRIBUTION COST OF SALES SUMMARY DISTRIBUTION COST OF SALES SCHEDULES SECTION 15 DISTRIBUTION OPERATING COSTS OPERATION AND MAINTENANCE TAXES OTHER THAN INCOME DISTRIBUTION OPERATING COST SCHEDULES SECTION 16 DISTRIBUTION DEPRECIATION SUMMARY DISTRIBUTION DEPRECIATION SCHEDULES SECTION 17 DISTRIBUTION INCOME TAXES SUMMARY DISTRIBUTION INCOME TAX SCHEDULES SECTION 18 DISTRIBUTION REVENUE OFFSETS SUMMARY DISTRIBUTION REVENUE OFFSET SCHEDULES SECTION 19 DISTRIBUTION RETURN ON RATE BASE Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

86 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX SUMMARY DISTRIBUTION RETURN ON RATE BASE SCHEDULES SECTION 20 DISTRIBUTION RATE BASE SUMMARY Business Cases Post Implementation Reviews Necessary Working Capital Other Items DISTRIBUTION RATE BASE SCHEDULES SECTION 21 DISTRIBUTION NECESSARY WORKING CAPITAL SUMMARY DISTRIBUTION NECESSARY WORKING CAPITAL SCHEDULES SECTION 22 ISOLATED OPERATING COSTS SUMMARY ISOLATED OPERATING COST SCHEDULES SECTION 23 GENERAL OPERATION AND MAINTENANCE SUMMARY GENERAL OPERATION AND MAINTENANCE SCHEDULES SECTION 24 COMMON OPERATIONS SUMMARY COMMON OPERATIONS SCHEDULES SECTION 25 CORPORATE ADMINISTRATION AND GENERAL SUMMARY CORPORATE ADMINISTRATION AND GENERAL SCHEDULES SECTION 26 GENERAL CORPORATE PROPERTY PLANT AND EQUIPMENT SUMMARY Business Cases Post Implementation Reviews CORPORATE GENERAL PP&E SCHEDULES SECTION 27 COST FUNCTIONALIZATION SUMMARY COST FUNCTIONALIZATION SCHEDULES SECTION 28 - FINANCING SUMMARY SCHEDULES SECTION 29 NO COST CAPITAL SUMMARY SCHEDULES Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

87 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX SECTION 30 AFFILIATE TRANSACTIONS SUMMARY SCHEDULES SUPPLEMENTARY INFORMATION SUMMARY OTHER MATTERS ANNUAL REPORT OF FINANCES AND OPERATIONS QUALITY OF SERVICE REPORTS ACCOUNTING POLICIES APPENDIX 1 TRANSITION PROVISIONS SUMMARY Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

88 Minimum Filing Requirements V9 Phase 1 May 4, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Preamble The Board is the custodian of the Minimum Filing Requirements (MFR) and is responsible for ensuring the requirements are amended from time to time, as required. The Board will conduct an initial formal review of the content of this MFR within three years after implementation. On an ongoing basis, the Board will initiate a formal review of this MFR document every 3 years to ensure that its content reflect the regulatory circumstances existing at the time of the review. In principle, minimum filing requirements are intended to provide visibility into the application. They are intended to provide consistency between the applications filed by different applicants; to facilitate an understanding of the items included in the application and how the forecasts used in the application were developed. These requirements are to be interpreted and implemented in conjunction with the Uniform System of Accounts prescribed by the Board and the accounting instructions included within the Uniform System. All filings must be in an electronic format for all documents. Electronic copies must include PDF and Microsoft Excel files of all materials, which will form the permanent record, as required for the Board s Electronic Application System. As well, Microsoft Word copies of all material other than Microsoft Excel spreadsheets must be made available to the Board and other parties. These function as working copies and allow all parties to readily extract and analyze information. Where possible, spreadsheets must be linked and integrated so that any changes can be worked through all the sheets. A reasonable level of formulaic detail should be maintained in the spreadsheets, including, but not limited to: sums, differences, percentages, and basic extension calculations. Additionally, revisions to the application and schedules must be filed with revisions clearly marked Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

89 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX After responses to information requests have been filed, the applicant shall complete and file a statement of omissions and adjustments. This statement shall itemize and summarize any errors, omissions and adjustments to the application identified since the initial filing. This shall include items identified by the utility in its own review of the application, items identified in responses to information requests, and items arising from external factors. Items identified by the utility in its own review will be those items: where prior year rate base actuals have become known subsequent to the application; where the utility has identified an error or omission from the original application; where there is new information on a major assumption or other factors that could impact the forecast included in the GTA. Consideration shall also be given to providing updated schedules incorporating those errors and omissions where this disclosure will help clarify the impact of the changes to the Board and interested parties. Where prior year actual results have become known subsequent to the application, the applicant shall update schedules to include actual results for comparison purposes. All pages must have line numbers and page numbers to facilitate reference in information requests, cross-examination, argument, and reply argument. All sections must be clearly marked, with section number and name in the header of each page and schedule. As well, the application name, applicant name, application date, and proceeding number (if available at time of filing) must be included in the header for each page and schedule. The following list outlines the sections of an application that must be filed with the Board Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

90 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 1 Introduction Section 2 Board Directives Section 3 Transmission Revenue Requirements Section 4 Transmission Fuel Costs Section 5 Transmission Operating Costs Section 6 Transmission Depreciation Section 7 Transmission Income Taxes Section 8 Transmission Revenue Offsets Section 9 Transmission Return on Rate Base Section 10 Transmission Rate Base Section 11 Transmission Necessary Working Capital Section 12 Distribution Revenue Requirements Section 13 Distribution Retail Revenue Section 14 Distribution Cost of Sales Section 15 Distribution Operation Costs Section 16 Distribution Depreciation Section 17 Distribution Income Taxes Section 18 Distribution Revenue Offsets Section 19 Distribution Return on Rate Base Section 20 Distribution Rate Base Section 21 Distribution Necessary Working Capital Section 22 Isolated Operating Costs Section 23 General Operation and Maintenance Section 24 Common Operations Section 25 Corporate Administration and General Section 26 Corporate PP&E Section 27 Cost Functionalization Section 28 - Financing Section 29 No Cost Capital Section 30 Affiliate Transactions Section 31 Supplementary Information These sections and section numbers must be standard to all s (GTA). If a section is not required, the section should be included with an indication that the section is not required. Additional information may be provided within each section or as additional sections as required. The applicant may add appendices containing supplementary information as required, provided the appendices are clearly referenced in Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

91 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX the application. As well, the Board may require additional information in the process of evaluating a utility s application. A transition process is required in order to assist in the bridging of the pre USA/MFR format and numbers to the post USA/MFR material. For the transition process, in order to provide a bridge or mapping to the new USA / MFR format, summary schedules ( Vintage Schedules ) that adopt the pre USA and MFR formats where necessary must be filed. These Vintage Schedules will only be provided on a one time basis at the time of the Utilities first filing under the new USA and MFR formats. There is no additional requirement to restate historical information previously filed with the Board to reflect the new USA / MFR data requirements or formats. The Board will initiate a process to further develop and define guidelines and formats for the transition Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

92 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 1 - Introduction Application Overview The Application Overview shall contain a summary of the application in sufficient detail to give an understanding of the basic nature of the application and decisions being requested of the Board. The Application Overview section shall include an introduction to the utility, and should outline key characteristics of the utility such as service territory, size of the utility, and total revenue requirement requested. Applicants shall provide a summary of the major issues being raised in the application requiring Board decision, along with the position of the applicant on each major issue. Cost Drivers This section shall contain a summary of the significant factors that are contained in this application and that influence the filing. This may include a summary of cost drivers or other factors impacting the application and requested revenue requirement. The Applicant shall provide an executive summary explaining the reasons for changes in requested revenue requirements. Tariff/Rate Applied For This section shall clearly identify the specific approvals being requested in the application(s). As applicable, this section will include Phase 1, Revenue Requirements; Phase 2, Final Rates; terms and conditions and any application for interim rates that an applicant may request. If interim rates are requested, this shall include the justification for interim rates (i.e. the urgency and special circumstances that require interim rates rather than awaiting final rates, prima facie evidence in support of interims, rate shock due to deferring increased costs, etc.), the rates requested, and the terms and conditions requested for interim rates Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

93 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Other Approvals (Deferral Accounts) Requested For This section shall contain any supplementary application(s) being requested. This will include new deferral accounts being requested, application for continuance of existing deferral accounts and the status of any Board ordered placeholders. Organizational Structure Applicants shall provide an overview of the organizational structure of the utility. Applicants shall provide an overview of the corporate entity of which the utility is a part. The schedule shall outline affiliated entities and a description of business lines for each entity. As well, the applicant shall provide organization charts, down to direct reports of vice presidents. The applicant shall disclose all operations, lines of business, or activities performed within the regulated utility that are considered non-utility or are not included in the application. Forecasting Methodology/Process and Key Assumptions Assumptions Applicants shall identify all assumptions used in the preparation of the application and related forecasts. Applicants shall define the basis of the assumption and the source of any information that lead to the assumption. As well, applicants shall explain why the assumption is appropriate. If different assumptions are used for different sections of the application, these will be explained. Typically, applications shall include the following assumptions such as: Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

94 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX general inflation forecasts for Alberta, and Edmonton/Calgary, or elsewhere as appropriate, segregated for: supplies and wages; specific inflation for items that differs from general inflation; housing-start forecasts for Alberta, and Edmonton/Calgary; residential and commercial customer-growth forecasts; residential and commercial sales-per-customer forecasts; interest-rate forecasts for long and short-term debt and for investments. coupon rates for preferred shares; timing of forecast capital expenditures and additions (i.e. monthly vs. mid-year); vacancy rates Forecasting Methodologies Each application shall include an appropriate explanation of the utility s methodologies, practices and procedures for preparing and approving the forecasts provided in the application, including the timelines for approval of capital and operating expenses, and overall forecast approvals by management, senior management, and executives. This shall include an appropriate discussion of the steps taken and internal reviews and approvals in arriving at the forecast included in the application. Specifically, applicants shall provide an appropriate discussion of processes used to prepare and approve forecasts for: Operation and Maintenance Expense; Capital Expenditures; and Load Forecasts. Major Issues and Policy Changes The intent of this section is for the utility to provide the Board and all interveners with an understanding of the major issues and related forecasts submitted in the application. Applicants shall indicate changes to policy from prior applications or deviations from the USA. When such changes occurred utilities shall explain the justification and intent of any changes Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

95 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Required Schedules Applicants shall file schedules as outlined in each section. Generally, financial results shall be reported in millions of dollars plus one decimal. All of the schedules should be in Microsoft Excel format. To the extent possible, spreadsheets must be linked and integrated so that any changes can be worked through the all sheets. A reasonable level of formulae should be maintained in the spreadsheets, including, but not limited to: sums, differences, percentages, and basic extension calculations. Additionally, revisions to schedules must be filed with revisions clearly marked. Schedules should be cross referenced and include at least two years of actual results. Where the application is filed before the beginning of the test period, the schedules shall also include an estimate of the year preceding the test period forecasts in addition to the two years actual results. Where the applicant uses tables in the body of the application to provide additional information or clarity, the tables shall contain the same years as the schedules. In addition, the tables shall be clearly referenced or reconciled to the appropriate schedule in the application. In addition, the schedules shall be based on the Uniform System of Accounts defined by the Board. Any non-utility or disallowed costs shall be disclosed separately and excluded from actual and forecast revenue requirements. Operational Performance As directed by the Board, or at the option of the utility, the utility shall report achievement of operational performance indicators for each year of the application. The applicant will also disclose any proposed changes in service levels, either an increase or decrease and the impact of such changes on actual and/or forecast results. The applicant shall also explain the rationale for the proposed change Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

96 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 2 Board Directives The applicant will provide a table showing each of the directions from the Board from prior related decisions with an explanation, with references, to how the utility is in compliance with the direction. In rare circumstances where the applicant is not in compliance with the direction, the applicant will explain the reason for not complying with the direction. Each applicant shall provide a table outlining: A summary of the directive, outlining the nature of the directive. In the event that a Board direction was not captured in the Summary of Board Directions appendix in the decision report and was, therefore, not assigned a direction number, the applicant shall provide a clear identification of where the direction is located in the prior decision. The current status for each directive. If not complete, an explanation of why the directive has not been complete and an estimate of the anticipated completion date. Identification of the impact of responses to the directive on the content of the application and Cross References to the section, page and lines of the application that are impacted by the response to the direction Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

97 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 3 Transmission Revenue Requirements Summary This shall include a summary schedule of revenue requirement, and requested revenue shortfalls/surpluses, for two years of actual results and any forecast years prior to the application in addition to the forecast years of the application. This summary schedule shall include the components of revenue requirement for all years in the following categories: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates Revenue Shortfall (Surplus) This section shall also include an analysis outlining the year over year changes in each of the components of revenue requirement, and explanation of the major reasons for change in each component for: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates This section shall also include an analysis outlining, for the most recent available historic year, the differences between the utilities applied for forecast and its actual results in each Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

98 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX of the components of revenue requirement, and explanation of the major reasons for change in each component for: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates The Application Overview shall include a summary of Rate Base and Capital Expenditures. Information shall be provided for two years of actual results or longer if greater than two years have elapsed since the last application, and any forecast years prior to the application in addition to the forecast years of the application. Transmission Revenue Requirement Schedules 3-1 Summary of Transmission Revenue and Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

99 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 4 Transmission Fuel Costs Summary This section shall contain an explanation of Transmission Fuel costs, including a description of the operation and an explanation of changes in costs from year to year, or from actual to approved forecast. These fuel costs relate to the isolated generation units. These generation units use natural gas and diesel fuel Transmission Fuel Cost Schedule 4-1 Schedule of Fuel Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

100 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 5 Transmission Operating Costs Section 5 shall contain the applicant s evidence in support of its forecast Transmission Operating Costs. It shall contain an explanation of Operation and Maintenance, Taxes, Other Than Income, and any other operating costs forecast in the application. Operation and Maintenance This section shall contain an explanation of Transmission Operation and Maintenance expenditures. Applicants shall provide an explanation of the major factors that are driving forecast expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain and quantify all significant changes in Operation and Maintenance Expense such as new programs; reductions and eliminations of programs; and impact of industry changes, such as unbundling and transfer of retail businesses. Applicants shall explain corporate costs and allocation methodology to various subsidiaries. Applicants must justify corporate costs to demonstrate that costs are required by utilities, and that any method(s) used to allocate costs to utilities are appropriate. Applicants shall explain all allocation methods, and provide all data used in the calculation of the allocation. In Section 5 Schedules, applicants should provide explanations for all significant variances at the account level. At the Transmission level, the costs should be disclosed as labour, fringe benefits, contractor services and other Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

101 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX For labour variances at the Transmission level applicants can explain variances between actual results and respective approved forecast by using items such as: growth growth in employee base; attrition reductions in employee base; vacancy provision for vacant positions; inflation general wage increases; benefits, wages changes in benefit costs directly related to changes in labour costs; benefits, plan changes in benefit costs due to changes in the benefits plan; variable compensation changes in variable compensation; and other any other changes in labour and related costs. For other variances at the Transmission level, explanations shall be based on the nature of cost increases. Taxes Other Than Income Applicants shall explain the nature and changes in Taxes Other Than Income. This will include Franchise Taxes or Municipal Consent and Access Fees as well as any other taxes or government levies and fees. Other charges may include Property Taxes, Transmission and Pipeline Taxes, Business Taxes, or any other tax levied on utilities. Each charge shall be explained separately. Transmission Operating Cost Schedules 5-1 Schedule of Transmission Operation & Maintenance Costs by Account 5-2 Schedule of Transmission Operation & Maintenance Costs - Variance Explanations 5-3 Details of Miscellaneous Transmission Expenses - GTA Account 566 (Note 1) 5-4 Schedule of Transmission Costs 5-5 Schedule of Transmission Manpower - Full Time Equivalents (FTEs) - Annual Averages 5-6 Schedule of Transmission Taxes Other Than Income Taxes Note 1 This schedule would be on an as required basis to provide more information on significant accounts Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

102 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 6 Transmission Depreciation Summary Applicants shall provide an understanding of the applicant s methodology for depreciation, and their rationale for that methodology. Applicants shall explain the rationale for any changes in depreciation rates. Applicants shall document and explain any changes in methodology, or rationale from prior proceedings. As well, applicants shall quantify the impact of any changes in methodology. Applicants shall discuss any depreciation related issues as they relate to the application and related forecasts. As part of the minimum filing requirements, irrespective of whether the utility is filing a new depreciation study or a technical update, the utility is required to file: historical additions and retirements (not required for technical updates); current-year plant balances by account/sub-account and vintage, if required to do the depreciation calculation; and all calculations showing the development of the depreciation rate, depreciation reserve adjustment, and resulting depreciation expense requested by the utility. If a depreciation study is being filed, the utility is also required to provide: the basis for the life and net salvage; specific rationale for the selection of each account/sub-account life and net salvage including copies of all field notes, discussions with management, letters, s, and related correspondence (if not available, a summary sheet is acceptable) as it relates to the depreciation witness; and various life and net salvage patterns examined and reasons for acceptance or rejection concerning the finally decided parameters for life and net salvage. Transmission Depreciation Schedules 6-1 Schedule of Transmission Depreciation and Amortization Expense 6-2 Schedule of Transmission Depreciation Gross Provision Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

103 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 6-3 Schedule of Transmission Depreciation Parameters and Rates 6-4 Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision for True-up Related to Estimated Original Cost as of June 30, 20XX - "Life Analysis" 6-5 Schedule of Isolated Generation Forecast Retirement Dates Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

104 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 7 Transmission Income Taxes Summary The Board has reviewed three methodologies in determining income taxes for rate setting purposes. 1 The Flow-through Method Under this method, the utility maximizes all allowed deductions for income tax, and only those income taxes currently payable are included in customer rates. 2 Future Income Tax Liability Method Under this method, the utility follows the accounting treatment prescribed by the CICA handbook Section The utility includes all income taxes currently payable, as well as a provision for future income taxes. Amounts collected for future tax liabilities which arise from temporary differences are held by the utility as no-cost capital. 3 Normalized-All Taxes Paid Under this method, the utility claims only capital cost allowance to offset all temporary differences. All income taxes currently payable are included in revenue requirement. 4 Any other method as determined by the Board. Applicants shall report federal and provincial income taxes separately and explain the methodology used (NATP or flow-through) for each jurisdiction. Applicants shall include legislated income tax rates in applications, and not anticipated rate changes. Applicants shall provide an explanation of any changes in applicable income tax law since its last filing, along with a schedule quantifying the impact of any changes. Applicants shall discuss options available to utilities to minimize income tax liabilities and rationale for options chosen. Applicants shall quantify and justify the impact of any requested changes in treatment of items for income tax purposes. Applicants shall provide explanations for each item used to reconcile net income to taxable income for each year Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

105 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX The applicant shall include a summary of any changes in income tax legislation, changes in utility treatment of significant items for tax purposes and changes in tax methodology for rate making purposes. Transmission Income Tax Schedules 7-1 Schedule of Transmission Utility Income Tax Expense 7-2 Schedule of Transmission Income Taxes 7-3 Determination of Federal Taxable Income 7-4 Schedule of Transmission Capital Cost Allowance 7-5 Schedule of Large Corporations Tax Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

106 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 8 Transmission Revenue Offsets Summary Section 8 shall contain the applicant s evidence related to revenue offsets. The applicant shall explain the nature of the revenue, itemizing the different types or sources of revenue. The applicant shall also explain changed from prior year and variance between actual and approved forecast. Transmission Revenue Offset Schedules 8-1 Schedule of Transmission Revenue Offsets Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

107 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 9 Transmission Return on Rate Base Summary Applicants shall clearly indicate that the Return on Equity used in calculating Return on Rate Base is the return determined by the Board in the Generic Cost of Capital Proceeding. Applicants shall describe how the interest and coupon rates identified in Section 1 have been incorporated into the application and related forecasts. Applicants shall discuss the need for new issues and the impact of any proposed refinancing. This discussion shall include projected sources of financing. Applicants shall provide current copies of reports or opinions of any credit rating agencies that report on the applicant. These may include those of Standard & Poor s, Moody s, Dominion Bond Rating Service, or any other recognized bond-rating agency. Transmission Return on Rate Base Schedules 9-1 Schedule of Transmission Return on Rate Base 9-2 Schedule of Transmission AFUDC Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

108 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 10 Transmission Rate Base Summary Section 10 shall contain an explanation of rate base and capital additions. Applicants shall provide an explanation of the major factors driving capital expenditures. Applications shall describe how their proposed capital expenditures are consistent with stated policies and how such policies are reflected in the stated assumption used to develop the capital expenditure forecasts provided in the application. Applicants shall group capital expenditures into meaningful categories. Categories may include: Growth projects - expenditures required to meet growth in customers or load. replacement and improvement - expenditures to replace or improve utility plant which is intended to provide a benefit to the customer. This should be broken into significant projects. Direct assign projects - This should be broken into significant projects. Information Technology projects Any other significant programs. Applicants should provide an explanation of the nature of each significant project and the drivers and assumptions used in developing the forecast. The applicant is to explain what is included in each category and explain year over year changes in expenditures. Where ever possible, benefits should be identified and explained. Benefits may be financial, or other non-financial customer service benefits; such as reliability of improved service. Any applicants who seek approval of capital expenditures on the basis of a system reliability requirement must clearly describe the nature of the system reliability risk that would arise if the proposed project were not undertaken. In addition, the Applicant should clearly explain why the proposed project is the most cost effective alternative to address the identified reliability requirement Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

109 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Applicants shall provide details in support of large volume capital additions (i.e. distribution extensions, services, meters, etc.), which may include number of units, unit costs and an explanation of changes in these items. Applicants shall explain the nature of, and reason for, all difference between property, plant, and equipment and capital additions included in the determination of revenue requirement and property, plant, and equipment and capital additions included in audited financial statements. Business Cases Applicants shall provide business cases for capital projects and programs in excess of $500,000 (Smaller applicants with revenues less than $100 million, excluding the cost of energy will be subject to a materiality limit of $100,000) over the life of the project, clearly showing: The reasons for the proposed expenditure; The alternatives examined; The incremental capital and operating costs associated with each alternative examined for a minimum 10 year period; The discount or investment rate used to compare alternatives and the basis for its use; The annual costs of each alternative for the period analyzed; The rationale for choosing a specific alternative, including any qualitative considerations used in choosing the alternative; and The date of preparation and the date of approval. Post Implementation Reviews Post Implementation Reviews (PIRs) shall be prepared when directed by the Board. During the review of an application, interveners may provide information to substantiate a request for the Board to direct the applicant to prepare PIRs for certain projects. It is expected that, if the Board decides to grant the request, the Board would provide Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

110 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX guidance to the Applicant on how the PIRs that are to be included in the Applicant s next GTA should be prepared. Typically, PIRs should involve a comparison of approved business cases to actual experience and a comparison of actual costs and benefits of the project with costs and benefits approved in the business case. A PIR should also include a comparison of the completed project with the planned project. This includes such items as size, capacity, throughput, functionality, or other characteristics that may be different than planned. Any differences should be fully explained. Finally, PIRs should address any process improvements implemented for future projects as a result of reviewing the project. Necessary Working Capital Applicants shall provide a discussion of their Necessary Working Capital requirements. Applicants shall explain the methodologies used and the impact of any studies filed in Section 31. Applicants shall document and justify any changes in methodology from prior proceedings. To the extent that there have been non material changes relating to working capital items, then the utility has the option to not provide a lead lag study update. Other Items Applicants shall provide an explanation of any items required to reconcile plant in service to rate base. Applicants shall provide a discussion of any other capital-related issues that impact the application and are not outlined in these requirements. Transmission Rate Base Schedules 10-1 Schedule of Transmission Rate Base 10-2 Schedule of Transmission Property, Plant & Equipment 10-3 Schedule of Transmission Accumulated Depreciation 10-4 Schedule of Transmission Capital Expenditures 10-5 Schedule of Transmission ES&G Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

111 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 10-6 Schedule of Transmission Contribution in Aid of Construction 10-7 Schedule of Transmission Computer System Costs ion 11 Transmission Necessary Working Capital Summary The applicant shall include a description of the methodology used in calculating each item included in necessary working capital. The description shall include a description of the Lead/Lag study used, and the sampling techniques used. To the extent that there have not been material changes relating to working capital items, then the utility has the option to not provide a lead lag study update and provide the date of the last filed lead-lag study. The applicant shall provide a summary of the process reviewed to determine that a new lead lag study is not needed. The applicant will explain any other non Lead/Lag items included in necessary working capital. The applicant shall also provide an explanation of changes in working capital from prior years, and an explanation of changes in methodology from prior applications. Transmission Necessary Working Capital Schedules 11-1 Schedule of Transmission Necessary Working Capital 11-2 Schedule of Transmission Necessary Working Capital Calculation 11-3 Transmission Lead/Lag days for Necessary Working Capital 11-4 Schedule of Transmission Net Operating Expense Lead/Lag Days 11-5 Schedule of Transmission Operating Expense Lag Days 11-6 Transmission GST impact on Working Capital Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

112 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 12 Distribution Revenue Requirements Summary This shall include a summary schedule of revenue requirement, and requested revenue shortfalls/surpluses, for two years of actual results and any forecast years prior to the application in addition to the forecast years of the application. This summary schedule shall include the components of revenue requirement for all years in the following categories: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates Revenue Shortfall (Surplus) This section shall also include an analysis outlining the year over year changes in each of the components of revenue requirement, and explanation of the major reasons for change in each component for: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates This section shall also include an analysis outlining, for the most recent available historic year, the differences between the utilities applied for forecast and its actual results in each Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

113 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX of the components of revenue requirement, and explanation of the major reasons for change in each component for: Return on Rate Base Income Taxes Depreciation Expense Operation and Maintenance Expense Taxes Other than Income Revenue Offsets/Income Credits Other Revenue on Existing Rates The Application Overview shall include a summary of Rate Base and Capital Expenditures. Information shall be provided for two years of actual results, and any forecast years prior to the application in addition to the forecast years of the application. Distribution Revenue Requirement Schedules 12-1 Summary of Distribution Revenues and Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

114 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 13 Distribution Retail Revenue Summary Section 13 shall contain an explanation of Sales and Revenue on Existing Rates. Applicants shall provide an explanation of the major factors that are driving forecast Sales and Revenue on Existing Rates. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain any changes in forecasts as well as year-to-year changes in forecasts. Applicants shall explain any normalization methodologies used in adjusting actual results and as a basis for developing application forecasts. Any changes to previously approved normalization methods must be explained. Applicants shall explain trending techniques in determining forecast sales per customer and customer growth, as well as any adjustment to trends. Applicants will describe and justify all forecasts of sales to industrial and transportation customers. Applicants shall provide an explanation of the items included in Other Revenues. Such explanations shall include an explanation of the contents of Other Revenues as well as an explanation of changes in Other Revenues from year to year. Distribution Revenue Schedules 13-1 Summary of Customers, Energy and Revenue Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

115 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 14 Distribution Cost of Sales Summary This section shall contain an explanation of Distribution Cost of Sales, including a description of the operation and an explanation of changes in costs from year to year, or from actual to approved forecast. Distribution Cost of Sales Schedules 14-1 Schedule of Distribution Cost of Sales 14-2 Transmission Access Payments Details 14-3 Schedules of Fuel & Non Pool Energy Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

116 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 15 Distribution Operating Costs Section 15 shall contain the applicant s evidence in support of its forecast Distribution Operating Costs. It shall contain an explanation of Operation and Maintenance, Taxes, Other Than Income, and any other operating costs forecast in the application. Operation and Maintenance This section shall contain an explanation of Distribution Operation and Maintenance expenditures.. Applicants shall provide an explanation of the major factors that are driving forecast expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain and quantify all significant changes in Operation and Maintenance Expense such as new programs; reductions and eliminations of programs; and impact of industry changes, such as unbundling and transfer of retail businesses. Applicants shall explain corporate costs and allocation methodology to various subsidiaries. Applicants to explain and justify corporate costs to demonstrate that costs are required by utilities, and that any method(s) used to allocate costs to utilities are appropriate. Applicants shall explain all allocation methods, and provide all data used in the calculation of the allocation. In Section 15 Schedules, applicants should provide explanations for all significant explanations at the activity level. At the Distribution level, the costs should be disclosed as labour, fringe, contractor services and other Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

117 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX For labour variances at the Distribution level applicants can explain variances between actual results and respective approved forecast by using items such as: growth growth in employee base; attrition reductions in employee base; vacancy provision for vacant positions; inflation general wage increases; benefits, wages changes in benefit costs due to changes in labour costs; benefits, plan changes in benefit costs due to changes in the benefits plan; variable compensation changes in variable compensation; and other any other changes in labour and related costs. For other variances at the Distribution level, explanations shall be based on the nature of cost increases. Taxes Other Than Income Applicants shall explain the nature and changes in Taxes Other Than Income. This will include Franchise Taxes or Municipal Consent and Access Fees as well as any other taxes or government levees and fees. Other charges may include Property Taxes, Transmission and Pipeline Taxes, Business Taxes, or any other tax levied on utilities. Each charge shall be explained separately. Distribution Operating Cost Schedules 15-1 Schedule of Distribution Operation & Maintenance Costs 15-2 Schedule of Distribution Schedule of Account Services and Public Information 15-3 Schedule of Distribution Operation & Maintenance Costs Variance Explanations 15-4 Schedule of Distribution Operation & Maintenance costs - Customer Accounting 15-5 Schedule of Distribution Operation & Maintenance Costs Customer Accounting - Variance Explanation 15-6 Schedule of Distribution Direct Operation & Maintenance Costs 15-7 Schedule of Distribution Direct Operation & Maintenance Costs Variance Explanation 15-8 Details of Miscellaneous Distribution Expenses - GTA Account 588 (Note 1) Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

118 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 15-9 Schedule of Distribution Costs Schedule of Distribution Manpower Full Time Equivalents (FTEs) Annual Averages Schedule of Distribution Taxes Other Than Income Note 1 This schedule would be on an as required basis to provide more information on significant accounts Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

119 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 16 Distribution Depreciation Summary Applicants shall provide an understanding of the applicant s methodology for depreciation, and their rationale for that methodology. Applicants shall explain the rationale for any changes in depreciation rates. Applicants shall document and explain any changes in methodology, or rationale from prior proceedings. As well, applicants shall quantify the impact of any changes in methodology. Applicants shall discuss any depreciation related issues as they relate to the application and related forecasts. As part of the minimum filing requirements, irrespective of whether the utility is filing a new depreciation study or a technical update, the utility is required to file: historical additions and retirements (not required for technical updates); current-year plant balances by account/sub-account and vintage, if required to do the depreciation calculation; and all calculations showing the development of the depreciation rate, depreciation reserve adjustment, and resulting depreciation expense requested by the utility. If a depreciation study is being filed, the utility is also required to provide: the basis for the life and net salvage; specific rationale for the selection of each account/sub-account life and net salvage including copies of all field notes, discussions with management, letters, s, and related correspondence (if not available, a summary sheet is acceptable) as it relates to the depreciation witness; and various life and net salvage patterns examined and reasons for acceptance or rejection concerning the finally decided parameters for life and net salvage. Distribution Depreciation Schedules 16-1 Schedule of Distribution Depreciation Expense Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

120 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 16-2 Schedule of Distribution Gross Depreciation Provision 16-3 Schedule of Distribution Depreciation Parameters and Rates 16-4 Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision for True-Up Related to Estimated Original Cost as of June 30, 20XX - "Life Analysis" 16-5 Schedule of Isolated Generation Forecast Retirement Dates Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

121 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 17 Distribution Income Taxes Summary The Board has reviewed three methodologies in determining income taxes for rate setting purposes. 1 The Flow-through Method Under this method, the utility maximizes all allowed deductions for income tax, and only those income taxes currently payable are included in customer rates. 2 Future Income Tax Liability Method Under this method, the utility follows the accounting treatment prescribed by the CICA handbook Section The utility includes all income taxes currently payable. Amounts collected for future tax liabilities which arise from temporary differences are held by the utility as no-cost capital. 3 Normalized-All Taxes Paid Under this method, the utility claims only capital cost allowance to offset all temporary differences. All income taxes currently payable are included in revenue requirement. 4 Any other method as determined by the Board. Applicants shall report federal and provincial income taxes separately, and explain the methodology used (NATP or flow-through) for each jurisdiction. Applicants shall include legislated income tax rates in applications, and not anticipated rate changes. Applicants shall provide an explanation of any changes in applicable income tax law since its last filing, along with a schedule quantifying the impact of any changes. Applicants shall discuss options available to utilities to minimize income tax liabilities and rationale for options chosen. Applicants shall quantify and justify the impact of any requested changes in treatment of items for income tax purposes. Applicants shall provide explanations for each item used to reconcile net income to taxable income for each year Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

122 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX The applicant shall include a summary of any changes in income tax legislation, changes in utility treatment of significant items for tax purposes and changes in tax methodology for rate making purposes. Distribution Income Tax Schedules 17-1 Schedule of Distribution Utility Income Tax Expense 17-2 Schedule of Distribution Income Taxes 17-3 Determination of Federal Taxable Income 17-4 Schedule of Distribution Capital Cost Allowance 17-5 Schedule of Large Corporations Tax Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

123 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 18 Distribution Revenue Offsets Summary Section 18 shall contain the applicant s evidence related to revenue offsets. The applicant shall explain the nature of the revenue, itemizing the different types or sources of revenue. The applicant shall also explain changed from prior year and variance between actual and approved forecast. Distribution Revenue Offset Schedules 18-1 Schedule of Distribution Revenue Offsets Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

124 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 19 Distribution Return on Rate Base Summary Applicants shall clearly indicate that the Return on Equity used in calculating Return on Rate Base is the return determined by the Board in the Generic Cost of Capital Proceeding. Applicants shall describe how the interest and coupon rates identified in Section 1 have been incorporated into the application and related forecasts. Applicants shall discuss the need for new issues and the impact of any proposed refinancing. This discussion shall include projected sources of financing. Applicants shall provide current copies of reports or opinions of any credit rating agencies that report on the applicant. These may include those of Standard & Poor s, Moody s, Dominion Bond Rating Service, or any other recognized bond-rating agency. Distribution Return on Rate Base Schedules 19-1 Schedule of Distribution Return on Rate Base 19-2 Schedule of Distribution AFUDC Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

125 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 20 Distribution Rate Base Summary Section 20 shall contain an explanation of rate base and capital additions. Applicants shall provide an explanation of the major factors driving capital expenditures. Applications shall describe how their proposed capital expenditures are consistent with stated policies and how such policies are reflected in the stated assumption used to develop the capital expenditure forecasts provided in the application. Applicants shall group capital expenditures into meaningful categories. Categories may include: growth - expenditures required to meet growth in customers or load. replacement and improvement - expenditures to replace or improve utility plant which is intended to provide a benefit to the customer. This should be broken into significant projects. Information Technology projects Any other significant programs. Applicants should provide an explanation of the nature of each project and the drivers and assumptions used in developing the forecast. The applicant is to explain what is included in each category and explain year over year changes in expenditures. Where ever possible, benefits should be identified and explained. Benefits may be financial, or other non-financial customer service benefits; such as reliability of improved service. Any applicants who seek approval of capital expenditures on the basis of a system reliability requirement must clearly describe the nature of the system reliability risk that would arise if the proposed project were not undertaken. In addition, the Applicant should clearly explain why the proposed project is the most cost effective alternative to address the identified reliability requirement Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

126 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Applicants shall provide details in support of large volume capital additions (i.e. distribution extensions, services, meters, etc.), which may include number of units, unit costs and an explanation of changes in these items. Applicants shall explain the nature of, and reason for, all difference between property, plant, and equipment and capital additions included in the determination of revenue requirement and property, plant, and equipment and capital additions included in audited financial statements. Business Cases Applicants shall provide business cases for capital projects and programs in excess of $500,000 (Smaller applicants with revenues less than $100 million, excluding the cost of energy will be subject to a materiality limit of $100,000) over the life of the project, clearly showing: The reasons for the proposed expenditure; The alternatives examined; The incremental capital and operating costs associated with each alternative examined for a minimum 10 year period; The discount or investment rate used to compare alternatives and the basis for its use; The annual costs of each alternative for the period analyzed; The rationale for choosing a specific alternative, including any qualitative considerations used in choosing the alternative; and The date of preparation and the date of approval. Post Implementation Reviews Post Implementation Reviews (PIRs) shall be prepared when directed by the Board. During the review of an application, interveners may provide information to substantiate a request for the Board to direct the applicant to prepare PIRs for certain projects. It is expected that, if the Board decides to grant the request, the Board would provide Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

127 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX guidance to the Applicant on how the PIRs that are to be included in the Applicant s next GTA should be prepared. Typically, PIRs should involve a comparison of approved business cases to actual experience and a comparison of actual costs and benefits of the project with costs and benefits approved in the business case. A PIR should also include a comparison of the completed project with the planned project. This includes such items as size, capacity, throughput, functionality, or other characteristics that may be different than planned. Any differences should be fully explained. Finally, PIRs should address any process improvements implemented for future projects as a result of reviewing the project. Necessary Working Capital Applicants shall provide a discussion of their Necessary Working Capital requirements. Applicants shall explain the methodologies used and the impact of any studies filed in Section 31. Applicants shall document and justify any changes in methodology from prior proceedings. To the extent that there have been non material changes relating to working capital items, then the utility has the option to not provide a lead lag study update. Other Items Applicants shall provide an explanation of any items required to reconcile plant in service to rate base. Applicants shall provide a discussion of any other capital-related issues that impact the application and are not outlined in these requirements. Distribution Rate Base Schedules 20-1 Schedule of Distribution Rate Base 20-2 Schedule of Distribution Property, Plant & Equipment 20-3 Schedule of Distribution Accumulated Depreciation 20-4 Schedule of Distribution Capital Expenditures 20-5 Schedule of Distribution ES&G Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

128 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 20-6 Schedule of Distribution Contribution in Aid of Construction 20-7 Schedule of Distribution Computer System Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

129 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 21 Distribution Necessary Working Capital Summary The applicant shall include a description of the methodology used in calculating each item included in necessary working capital. The description shall include a description of the Lead/Lag study used, and the sampling techniques used. To the extent that there have not been material changes relating to working capital items, then the utility has the option to not provide a lead lag study update and provide the date of the last filed lead-lag study. The applicant shall provide a summary of the process reviewed to determine that a new lead lag study is not needed. The applicant will explain any other non Lead/Lag items included in necessary working capital. The applicant shall also provide an explanation of changes in working capital from prior years, and an explanation of changes in methodology from prior applications. Distribution Necessary Working Capital Schedules 21-1 Schedule of Distribution Necessary Working Capital 21-2 Schedule of Distribution Necessary Working Capital Calculation 21-3 Distribution Lead/Lag Days for Necessary Working Control 21-4 Schedule of Distribution Net Operating Expense Lead/Lag Days 21-5 Schedule of Distribution Operating Expense Lag Days 21-6 Distribution GST Impact on Working Capital Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

130 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 22 Isolated Operating Costs Summary The applicant shall also provide an explanation of the costs included in Isolated Generation Costs, including an explanation of year over year changes in cost forecasts. Isolated Operating Cost Schedules 22-1 Schedule of Isolated Generation Operation & Maintenance Power Production 22-2 Schedule of Isolated Generation O&M Variance Explanations Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

131 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 23 General Operation and Maintenance Summary This section shall contain an explanation of General Operation and Maintenance expenditures. Applicants are to explain forecast expenditures. Applicants shall provide an explanation of the major factors that are driving forecast expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain and quantify all significant changes in Operation and Maintenance Expense such as new programs; reductions and eliminations of programs; and impact of industry changes, such as unbundling and transfer of retail businesses. Applicants shall explain corporate costs and allocation methodology to various subsidiaries. Applicants to explain corporate costs in order to demonstrate that costs are required by utilities, and that any method(s) used to allocate costs to utilities are appropriate. Applicants shall explain all allocation methods, and provide all data used in the calculation of the allocation. In Section 23 Schedules, applicants should provide explanations for all significant explanations at the activity level. At the Transmission or Distribution level, the costs should be disclosed as labour, fringe, contractor services and other Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

132 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX For labour variances at the Transmission or Distribution level applicants can explain variances between actual results and respective approved forecast by using items such as: growth growth in employee base; attrition reductions in employee base; vacancy provision for vacant positions; inflation general wage increases; benefits, wages changes in benefit costs due to changes in labour costs; benefits, plan changes in benefit costs due to changes in the benefits plan; variable compensation changes in variable compensation; and other any other changes in labour and related costs. For other variances at the Transmission or Distribution level, explanations shall be based on the nature of cost increases. General Operation and Maintenance Schedules 23-1 Schedule of General Operation & Maintenance by Account 23-2 Schedule of General Operation & Maintenance Variance Explanations Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

133 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 24 Common Operations Summary This section applies mainly to utilities that have multiple functions within the regulated utility, and provide common services to all functions. This section will contain costs related operations that are shared between transmission and distribution, when both functions are in one legal entity. This section shall contain an explanation of Common Operations expenditures. Applicants to provide explanations for forecast expenditures. Applicants shall provide an explanation of the major factors that are driving forecast expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain and quantify all significant changes in Common Operations Expense such as new programs; reductions and eliminations of programs; and impact of industry changes, such as unbundling and transfer of retail businesses. Applicants shall explain corporate costs and allocation methodology to various subsidiaries. Applicants are to provide explanations regarding corporate costs to demonstrate that costs are required by utilities, and that any method(s) used to allocate costs to utilities are appropriate. Applicants shall explain all allocation methods, and provide all data used in the calculation of the allocation. On a Transmission and Distribution level, costs shall be disclosed as, labour, fringe benefits, contractor services, and other Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

134 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX In Section 24 Schedules, applicants to explain changes from year to year. Applicants can explain variances between actual results and any respective approved forecast by using such items as: growth growth in employee base; attrition reductions in employee base; vacancy provision for vacant positions; inflation general wage increases; benefits, wages changes in benefit costs due to changes in labour costs; benefits, plan changes in benefit costs due to changes in the benefits plan; variable compensation changes in variable compensation; and other any other changes in labour and related costs. Explanations shall be provided for other costs based on the nature of cost increases. Common Operations Schedules 24-1 Schedule of Common Operations by Account Note Methodology of Assigning Common Operations Costs Note 2 This schedule would be on an as required basis to provide more information on significant accounts Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

135 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 25 Corporate Administration and General Summary This section shall contain an explanation of Corporate Administration and General Expenditures. Applicants shall provide an explanation of the major factors that are driving forecast expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall explain and quantify all significant changes in Corporate Administration and General Expense such as new programs; reductions and eliminations of programs; and impact of industry changes, such as unbundling and transfer of retail businesses. Applicants shall explain corporate costs and allocation methodology to various subsidiaries. Applicants to explain corporate costs to demonstrate that costs are required by utilities, and that any method(s) used to allocate costs to utilities are appropriate. Applicants shall explain all allocation methods, and provide all data used in the calculation of the allocation. On a Transmission and Distribution level, costs shall be disclosed as, labour, fringe benefits, contractor services, and other. In Section 25 Schedules, applicants can explain year over year variances between actual results and any respective approved forecast by using items such as: growth growth in employee base; attrition reductions in employee base; vacancy provision for vacant positions; inflation general wage increases; benefits, wages changes in benefit costs due to changes in labour costs; Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

136 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX benefits, plan changes in benefit costs due to changes in the benefits plan; variable compensation changes in variable compensation; and other any other changes in labour and related costs. Explanations shall be provided for other based on the nature of cost increases. Corporate Administration and General Schedules 25-1 Schedule of Corporate Administration & General by Account 25-2 Schedule of Corporate Administration & General Accounts Details Note Schedule of Corporate Administration & General Accounts - Variance Explanations 25-4 Schedule of Corporate Costs 25-5 Schedule of Corporate Manpower Full Time Equivalents (FTEs) 25-6 Allocation of Corporate Administration and General Note Communication Expenditures 25-8 Schedule of Corporate Computer System Costs 25-9 Schedule of Rate Hearing Costs - Total Note 1 Note 2 This schedule would be on an as required basis to provide more information on significant accounts. These schedules would be on an as required basis for those utilities that have corporate groups Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

137 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 26 General Corporate Property Plant and Equipment Summary Section 26 shall contain an explanation of rate base and capital additions. Applicants to explain and provide support for requested expenditures. Applicants shall provide a an explanation of the major factors driving capital expenditures. Applications shall demonstrate how applicants have applied stated policies and incorporated stated assumptions into forecasts provided. Applicants shall group capital expenditures into meaningful categories. Categories may include: growth - expenditures required to meet growth in customers or load. replacement and improvement - expenditures to replace or improve utility plant which is intended to provide a benefit to the customer. This should be broken into significant projects. Information Technology projects Any other significant programs. Applicants should provide an explanation of the nature of each project and the drivers and assumptions used in developing the forecast. The applicant to explain what is included in each category and explain year over year changes in expenditures. Where ever possible, benefits should be identified. Benefits may be financial, or other nonfinancial customer service benefits; such as reliability of improved service. Any applicants who seek approval of capital expenditures on the basis of a system reliability requirement must clearly describe the nature of the system reliability risk that would arise if the proposed project were not undertaken. In addition, the Applicant should clearly explain why the proposed project is the most cost effective alternative to address the identified reliability requirement Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

138 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Applicants shall provide details in support of large volume capital additions (i.e. distribution extensions, services, meters, etc.), which may include number of units, unit costs and an explanation of changes in these items. Applicants shall explain the nature of, and reason for, all difference between property, plant, and equipment and capital additions included in the determination of revenue requirement and property, plant, and equipment and capital additions included in audited financial statements. Business Cases Applicants shall provide business cases for capital projects and programs in excess of $500,000 (Smaller applicants with revenues less than $100 million, excluding the cost of energy will be subject to a materiality limit of $100,000) over the life of the project, clearly showing: The reasons for the proposed expenditure; The alternatives examined; The incremental capital and operating costs associated with each alternative examined for a minimum 10 year period; The discount or investment rate used to compare alternatives and the basis for its use; The annual costs of each alternative for the period analyzed; The rationale for choosing a specific alternative, including any qualitative considerations used in choosing the alternative; and The date of preparation and the date of approval. Post Implementation Reviews Post Implementation Reviews (PIRs) shall be prepared when directed by the Board. During the review of an application, interveners may provide information to substantiate a request for the Board to direct the applicant to prepare PIRs for certain projects. It is expected that, if the Board decides to grant the request, the Board would provide Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

139 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX guidance to the Applicant on how the PIRs that are to be included in the Applicant s next GTA should be prepared. Typically, PIRs should involve a comparison of approved business cases to actual experience and a comparison of actual costs and benefits of the project with costs and benefits approved in the business case. A PIR should also include a comparison of the completed project with the planned project. This includes such items as size, capacity, throughput, functionality, or other characteristics that may be different than planned. Any differences should be fully explained. Finally, PIRs should address any process improvements implemented for future projects as a result of reviewing the project. Corporate General PP&E Schedules 26-1 Schedule of Corporate General PP&E Gross Depreciation Provisions 26-2 Schedule of Corporate General PP&E Expenditures Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

140 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 27 Cost Functionalization Summary Applicants shall explain in detail how General Operation and Maintenance Costs, Common Operations Costs, and Corporate Administration and General Costs are allocated to Distribution and Transmission services. Applicants shall provide copies of any studies or analyses supporting the allocation as well as an understanding of any assumptions made in the allocation. Cost Functionalization Schedules 27-1 Assignment of General Operation and Maintenance Costs Note Allocation of Corporate Administration and General 27-3 Allocation of Corporate General Property, Plant & Equipment Computer Systems 27-4 Assignment of Common Operations Costs Note 1 Affiliate costs currently separately disclosed will be rolled up to the agreed accounts Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

141 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 28 - Financing Summary The applicant shall discuss the types of capital used to finance Rate Base. The applicant will discuss the choices made and the terms and conditions of each type of financing in place. The applicant will explain why incremental financing is required, as well as any significant changes in financing. Schedules 28-1 Schedule of Capital Structure and Average Cost of Capital 28-2 Schedule of Debt Capital Employed and Embedded Cost 28-3 Schedule of Preferred Capital Employed and Embedded Cost Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

142 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 29 No Cost Capital Summary The applicant shall discuss the sources of no cost capital used to finance Rate Base. The applicant will discuss the choices made and the terms and conditions of each type of no cost financing in place. Schedules 29-1 Schedule of Mid-Year No Cost Capital 29-2 Schedule of Reserve for injuries and Damages 29-3 Reserve for Injuries and Damages Target Balance 29-4 Schedule of Future Income Taxes 29-5 Schedule of Deferred Pension/Post Retirement Benefits Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

143 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Section 30 Affiliate Transactions Summary In each application, applicants shall explain all affiliate relationships and related transactions. The applicant shall include a discussion and explanation of all proposed or forecast transactions with affiliated entities. Applicants shall file a schedule that outlines and quantifies all major transactions with affiliated entities, and summaries of minor transactions with affiliated entities. The schedule shall separate total operating expense, total capital expenditures, and total revenues with each affiliated entity as well as the nature and the purpose of the transactions. The applicant shall disclose those affiliate transactions which have been valued using fair market value and those which have been valued using full cost recovery. Applicants shall file the current Inter-Affiliate Code of Conduct in place for the utility. Applicants shall file evidence, such as transfer pricing policies, audit reports from Board audits, evidence of filing of Inter-Affiliate compliance reports, or recent Board orders demonstrating that their Code is compliant with applicable regulations and prior Board Decisions. Applicants shall also identify any areas where they are not in compliance with their Code. Utilities will comply with their approved code of conducts. The schedules will be provided to meet and reflect the various utilities requirements Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

144 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Applicants to identify changes in their Code from prior applications as well as provide an explanation of the reason for the changes. The applicant will file the last two years actual compliance filing for affiliate transactions as an appendix to the application. Schedules 30-1 Schedule of Transmission Affiliate Cost of Goods Sold 30-2 Schedule of Transmission Affiliate Cost of Goods Sold 30-3 Schedule of Distribution Account Services and Public Information Affiliate Costs 30-4 Schedule of Distribution Customer Accounting Affiliate Costs 30-5 Schedule of Distribution Affiliate Costs 30-6 Schedule of Isolated O&M Affiliate Costs 30-7 Schedule of General O&M Affiliate Costs 30-8 Schedule of Common Operations O&M Affiliate Costs 30-9 Schedule of Corporate Affiliate Costs Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

145 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX 31 Supplementary Information Summary Applicants shall provide copies of studies and supplementary information used in the preparation of the application and related forecasts. Typical information may include: all Master Service Agreements, Service Level Agreements, and Annual Supplementary Operating Agreements for services provided by or for affiliates; Cost of Service Study; Forecast of inflation and economic activity; Lead Lag Study; Depreciation Study; Customer Satisfaction Surveys; Overhead Study; Overhead Calculations; Benchmarks and Best Practice Studies; Compensation Surveys; and Executive Compensation Surveys. Franchise Agreement Other Matters Applicants shall provide any other information that will assist the Board and other parties in their review of the application. Other items may be included in or relate to a filed application. Such items may include, but not be limited to Deferral Accounts Summary (including all placeholder amounts); Reserves; Pension Plan Details; Other Expenses. Applicants shall provide a discussion of all other items included in the application. Applicants shall provide details for all deferral accounts. Applicants shall detail forecast additions to deferral accounts and proposed rate impacts on deferral accounts Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

146 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Annual Report of Finances and Operations Applicants shall include a copy of the last two years Annual Report of Finances and Operations with each application. Quality of Service Reports Applicants shall include a copy of the last two Annual Quality of Service Reports with each application. Transmission utilities shall report annual quality of service reliability indices and employee safety statistics and vehicle incidents rate. The report shall include annual data for the latest five years and a five year moving average. Accounting Policies To the extent that an applicant has developed accounting policies, the applicant shall include copies of the policies in the application. Policies may include: the latest Capitalization Policy, including o policy or guidelines governing whether new plant is determined to be an asset addition or maintenance expense; o policy guidelines on asset re-use; and o policy guidelines on return to stores; the latest Transfer Pricing Policy; the latest Overhead Policy including calculations of overhead rate(s);as they relate to charges to third party companies or affiliates. the latest Overhead Policy including calculations of overhead rate(s);as they relate to charges to capital. a schedule outlining any differences between the Code of Accounts used by the utility and the Uniform System of Accounts, as may be prescribed by the Board or legislation from time to time Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

147 Minimum Filing Requirements Phase 1 May 8, 2006 XYZ Utility Inc. 20XX-20XY January XX, 20XX Appendix 1 Transition Provisions Summary If the EUB decides that the USA Committee s USA and MFR should be implemented, a plan to transition smoothly to the new USA and MFR regime would need to be established. This would ensure that there is a good measure of comparability between a utility s last GTA filed under the current system and its first GTA under the new USA/MFR regime. The transition plan can be developed by the EUB in consultation with the utilities and interveners once the decision is made to proceed with implementation of the USA and MFR. Hence, this appendix is left intentionally blank Prepared for the Alberta Energy and Utilities Board USA/MFR Task Force

148 Minimum Filing Requirements Index of Schedules Schedule No. Schedule Name 3-1 Summary of Transmission Revenues and Costs 4-1 Schedule of Fuel Costs 5-1 Schedule of Transmission Operation & Maintenance Costs by Account 5-2 Schedule of Transmission Operation & Maintenance Costs - Variance Explanations 5-3 Details of Miscellaneous Transmission Expenses - GTA Account Schedule of Transmission Costs 5-5 Schedule of Transmission Manpower - Full Time Equivalents (FTE's) - Annual Averages 5-6 Schedule of Transmission Taxes Other Than Income Taxes 6-1 Schedule of Transmission Depreciation and Amortization Expense 6-2 Schedule of Transmission Depreciation Gross Provision 6-3 Schedule of Transmission Depreciation Parameters and Rates 6-4 Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision for True-up Related to Estimated Original Cost as of June 30, "Life Analysis" 6-5 Schedule of Isolated Generation Forecast Retirement Dates 7-1 Schedule of Transmission Income Taxes, Utility Operating Income 7-2 Schedule of Transmission Income Taxes 7-3 Determination of Federal Taxable Income 7-4 Schedule of Transmission Capital Cost Allowance 7-5 Schedule of Large Corporations Tax

149 Schedule No. Minimum Filing Requirements Index of Schedules Schedule Name 8-1 Schedule of Transmission Revenue Offsets 9-1 Schedule of Transmission Return on Rate Base 9-2 Schedule of Transmission AFUDC 10-1 Schedule of Transmission Rate Base 10-2 Schedule of Transmission Property, Plant & Equipment 10-3 Schedule of Transmission Accumulated Depreciation 10-4 Schedule of Transmission Capital Expenditures 10-5 Schedule of Transmission ES&G 10-6 Schedule of Transmission Contributions in Aid of Construction 10-7 Schedule of Transmission Computer System Costs 11-1 Schedule of Transmission Necessary Working Capital 11-2 Schedule of Transmission Necessary Working Capital Calculation 11-3 Transmission Lead/Lag Days for Necessary Working Capital 11-4 Schedule of Transmission Net Operating Expense Lead/Lag Days 11-5 Schedule of Tranmission Operating Expense Lag Days 11-6 Transmission GST Impact on Working Capital 12-1 Summary of Distribution Revenues and Costs 13-1 Summary of Customers, Energy and Revenue 14-1 Schedule of Distribution Cost of Sales 14-2 Transmission Access Payments - Details 14-3 Schedule of Fuel & Non Pool Energy Costs 15-1 Schedule of Distribution Operation & Maintenance Costs

150 Schedule No. Minimum Filing Requirements Index of Schedules Schedule Name 15-2 Schedule of Account Services and Public Information 15-3 Schedule of Distribution Operation & Maintenance Costs - Variance Explanations 15-4 Schedule of Distribution Operation & Maintenance Costs 15-5 Schedule of Distribution Operation & Maintenance Costs - Customer Accounting Variance Explanations 15-6 Schedule of Distribution Expenses Operation & Maintenance Costs 15-7 Schedule of Distribution Direct Operation & Maintenance Costs - Variance Explanations 15-8 Details of Miscellaneous Distribution Expenses - GTA Account Schedule of Distribution Costs Schedule of Distribution Manpower - Full Time Equivalents (FTE's) - Annual Averages Schedule of Distribution Taxes Other Than Income Taxes 16-1 Schedule of Distribution Depreciation Expense 16-2 Schedule of Distribution Gross Depreciation Provision 16-3 Schedule of Distribution Depreciation Parameters and Rates 16-4 Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision for True-up Related to Estimated Original Cost as of June 30, "Life Analysis" 16-5 Schedule of Isolated Generation Forecast Retirement Dates 17-1 Schedule of Distribution Utility Income Tax Expense 17-2 Schedule of Distribution Income Taxes 17-3 Determination of Federal Taxable Income 17-4 Schedule of Distribution Capital Cost Allowance

151 Schedule No. Minimum Filing Requirements Index of Schedules Schedule Name 17-5 Schedule of Large Corporations Tax 18-1 Schedule of Distribution Revenue Offsets 19-1 Schedule of Distribution Return on Rate Base 19-2 Schedule of Distribution AFUDC 20-1 Schedule of Distribution Rate Base 20-2 Schedule of Distribution Property, Plant & Equipment 20-3 Schedule of Distribution Accumulated Depreciation 20-4 Schedule of Distribution Capital Expenditures 20-5 Schedule of Distribution ES&G 20-6 Schedule of Distribution Contributions in Aid of Construction 20-7 Schedule of Distribution Computer System Costs 21-1 Schedule of Distribution Necessary Working Capital 21-2 Schedule of Distribution Necessary Working Capital Calculation 21-3 Distribution Lead/Lag Days for Necessary Working Capital 21-4 Schedule of Distribution Net Operating Expense Lead/Lag Days 21-5 Schedule of Distribution Operating Expense Lag Days 21-6 Distribution GST Impact on Working Capital 22-1 Schedule of Isolated Generation Operation & Maintenance Power Production 22-2 Schedule of Isolated Generation O&M Variance Explanations 23-1 Schedule of General Operation & Maintenance By Account 23-2 Schedule of General Operation & Maintenance - Variance Explanations 24-1 Schedule of Common Operations By Account

152 Schedule No. Minimum Filing Requirements Index of Schedules Schedule Name 24-2 Methodology of Assigning Common Operations Costs 25-1 Schedule of Corporate Administration & General By Account 25-2 Schedule of Corporate Administration & General Account 25-3 Schedule of Corporate Administration & General Accounts 25-4 Schedule of Corporate Costs 25-5 Schedule of Corporate Manpower -Full Time Equivalents (FTE's) - Annual Averages 25-6 Allocation of Corporate Administration and General 25-7 Communication Expenditures 25-8 Schedule of Corporate Computer System Costs 25-9 Schedule of Rate Hearing Costs - Total 26-1 Schedule of Corporate General PP&E Gross Depreciation Provision 26-2 Schedule of Corporate General PP&E Expenditures 27-1 Assignment of General Operation and Maintenance Costs 27-2 Allocation of Corporate Administration and General 27-3 Allocation of Corporate General Property, Plant & Equipment and Computer Systems 27-4 Assignment of Common Operations Costs 28-1 Schedule of Capital Structure and Average Cost of Capital 28-2 Schedule of Debt Capital Employed and Embedded Cost 28-3 Schedule of Preferred Share Capital Employed and Embedded Cost 29-1 Schedule of Mid-Year No Cost Capital 29-2 Schedule of Reserve for Injuries and Damages 29-3 Reserve for Injuries and Damages Target Balance

153 Schedule No. Minimum Filing Requirements Index of Schedules Schedule Name 29-4 Schedule of Future Income Taxes 29-5 Schedule of Deferred Pension/Post Retirement Benefits 30-1 Schedule of Transmission Affiliate Cost of Goods Sold 30-2 Schedule of Transmission Affiliate Cost of Goods Sold 30-3 Schedule of Distribution Account Services and Public Information Affiliate Costs 30-4 Schedule of Distribution Customer Accounting Affiliate Costs 30-5 Schedule of Distribution Affiliate Costs 30-6 Schedule of Isolated O&M Affiliate Costs 30-7 Schedule of General O&M Affiliate Costs 30-8 Schedule of Common Operations O&M Affiliate Costs 30-9 Schedule of Corporate Affiliate Costs

154 Company Name XXXXX Summary of Transmission Revenues and Costs $m Schedule 3-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Revenues 2 Transmission Tariffs 3 Deferral Accounts 4 Payment from Balancing Pool 5 Total Revenues Costs 8 Fuel S Operating Costs S Depreciation S Return on Rate Base S Income Tax Expense S Revenue Offsets S Total Costs Transmission Tariffs Revenue at Existing Rates Increase % Increase % %

155 Company Name XXXXX Schedule of Fuel Costs $m Schedule 4-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Fuel S. 3-1

156 Company Name XXXXX Schedule of Transmission Operation & Maintenance Costs By Account $m Schedule 5-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 Direct Operation and Maintenance Supervision and engineering S Control centre operations S Station equipment expenses S Overhead lines expenses S Underground line expenses S Miscellaneous transmission expenses S Right of way payments S Operation & Maintenance of structures S Vegetation management S IT support S Affiliate Cost of Goods Sold S Total Disallowed/Non-Utility Costs (included above) Total Direct Operation & Maintenance Isolated Generation Operation and Maintenance S Allocated Share of General Operation and Maintenance S Total Operation and Maintenance Allocated Administrative & General S Taxes Other Than Income S Farms, Irrigation Transmission Operating Costs TOTAL TRANSMISSION OPERATING COSTS S

157 Company Name XXXXX Schedule of Transmission Operation & Maintenance Costs Variance Explanations $m Schedule 5-2 Page 1 of 1 Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 Direct Operation and Maintenance 560 Non-Affiliate S Affiliate Supervision and engineering Non-Affiliate S Affiliate Control centre operations Non-Affiliate S Affiliate Station equipment expenses Non-Affiliate S Affiliate Overhead lines expenses Non-Affiliate S Affiliate Underground line expenses Non-Affiliate S Affiliate Right of way payments Non-Affiliate S Affiliate Operation & Maintenance of structures Non-Affiliate S Affiliate Vegetation management Non-Affiliate S Affiliate IT support

158 Company Name XXXXX Details of Miscellaneous Transmission Expenses - GTA Account 566 $m Schedule 5-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Non Affiliate 2 Labour 3 Other 5 General Administration Expense 6 Employee Benefits 7 Safety and Training 8 Special Services and Studies 9 10 Total Non Affiliate Affiliate S Allocated Share of Common Operations S Total S

159 Company Name XXXXX Schedule of Transmission Costs $m Schedule 5-4 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Direct O&M - Labour 2 Direct O&M - Fringe 3 Direct O&M - Contractor Services 4 Direct O&M - Other Isolated O&M - Labour 8 Isolated O&M - Fringe 9 Isolated O&M - Contractor Services 10 Isolated O&M - Other General O&M - Labour 14 General O&M - Fringe 15 General O&M - Contractor Services 16 General O&M - Other Total Operations & Maintenance - Labour Total Operations & Maintenance - Fringe Total Operations & Maintenance - Contractor Service Total Operations & Maintenance - Other Capital - Labour Other - Labour Total Transmission - Labour

160 Company Name XXXXX Schedule of Transmission Manpower - Full Time Equivalents (FTE's) Annual Averages Schedule 5-5 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 GTA Complement - Permanent 2 Vacancy 3 Final Adjusted Complement - Perm Vacancy Rate % % % % 5 6 GTA Complement - Temporary 7 Vacancy 8 Final Adjusted Complement - Temp Vacancy Rate (Note 1) % % % % GTA Complement - Total 12 Vacancy 13 Final Adjusted Complement Vacancy Rate % % % % 15 Final Adjusted Complement by Area 16 Total Operations & Maintenance 17 Capital 18 Other Labour cost ($000's) - Schedule Labour per FTE

161 Company Name XXXXX Schedule of Transmission Taxes Other Than Income Taxes $m Schedule 5-6 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Taxes other than income taxes, utility operating income 2 Main Transmission Lines 3 Main Trans Substations 4 Communications 5 General Isolated Generation Plants 9 10 Total Transmission S

162 Company Name XXXXX Schedule of Transmission Depreciation and amortization expense $m Schedule 6-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Depreciation and amortization expense 2 Gross Provision S Vehicle Depreciation Capitalized 4 Amortization of Computer System Costs S Amortization of Contributions S Total Depreciation Expense S

163 Company Name XXXXX Schedule of Transmission Depreciation Gross Provision $m Schedule 6-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Transmission 2 Transmission 3 Amortization of Differences 4 Sub Total S Direct General PP&E 7 Direct General PP&E 8 Amortization of Differences 9 Sub Total S Allocated General PP&E S Transmission Gross Provision Farms, Irrigation Transmission Total Transmission Gross Provision S Depreciation Gross Provision - Life 21 Depreciation Gross Provision - Net Salvage

164 Company Name XXXXX Schedule of Transmission Depreciation Parameters and Rates Schedule 6-3 Page 1 of Parameters Parameters Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period YFR/Int.Ret. YFR/Int.Ret. Actuals Actuals Forecast Yr. 1 Yr. 2 Account Description Life N.S. Life N.S. Rate Rate Rate Rate Rate Transmission Facilities Land rights 355 Poles and fixtures 356 Overhead conductors and devices 354 Towers and fixtures 353 Station equipment System communication & control McNeill Convertor Station Land rights 355 Poles and fixtures 356 Overhead conductors and devices 354 Towers and fixtures 353 Station equipment Ruth Lake Sub Land rights 355 Poles and fixtures 356 Overhead conductors and devices 354 Towers and fixtures 353 Station equipment General Plant 390 Structures and improvements 391 Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications 392 Transportation equipment, fleet vehicles 394 Tools, shop, garage, stores and laboratoy equipment

165 Company Name XXXXX Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision For True-up Related to Estimated Original Cost as of June 30, 2004 "Life Analysis" Schedule 6-4 Page 1 of 2 Surviving Calculated Book Accumulated Probable Annual Original Cost Accrued Accumulated Depreciation Remaining Provision Account Description at 06/30/2004 Depreciation Depreciation Variance Life for True-Up (1) (2) (3) (4) (5) (6) = (4)-(5) (7) (8)=(6)/(7) Transmission Plant Land rights Poles and fixtures Overhead conductors and devices Towers and fixtures Station equipment - Total Transmission Plant McNeill Converter Station Land rights 355 Poles and fixtures 356 Overhead conductors and devices 353 Station equipment Total McNeill Converter Distribution Plant Land rights 364 Poles, towers and fixtures 365 Overhead conductors and devices 367 Underground conductors and devices 370 Conventional meters 371 Automated meters 362 Station equipment 373 Street lighting and signal systems 368 Line transformers Total Distribution Plant General Plant 390 Structures and improvements 391 Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications 392 Transportation equipment, fleet vehicles 394 Tools, shop, garage, stores and laboratoy equipment Total General Plant Total Utility Plant in Service

166 Company Name XXXXX Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision For True-up Related to Estimated Original Cost as of June 30, 2004 "Net Salvage Analysis" Schedule 6-4 Page 2 of 2 Surviving Calculated Book Accumulated Probable Annual Original Cost Accrued Accumulated Depreciation Remaining Provision Account Description at 06/30/2004 Depreciation Depreciation Variance Life for True-Up (1) (2) (3) (4) (5) (6) = (4)-(5) (7) (8)=(6)/(7) Transmission Plant Land rights 355 Poles and fixtures 356 Overhead conductors and devices 354 Towers and fixtures 353 Station equipment Total Transmission Plant McNeill Converter Station Land rights 355 Poles and fixtures 356 Overhead conductors and devices 353 Station equipment Total McNeill Converter Distribution Plant Land rights 364 Poles, towers and fixtures Overhead conductors and devices 367 Underground conductors and devices 370 Conventional meters 371 Automated meters 362 Station equipment 373 Street lighting and signal systems 368 Line transformers Total Distribution Plant General Plant 390 Structures and improvements 391 Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications 392 Transportation equipment, fleet vehicles 394 Tools, shop, garage, stores and laboratoy equipment Total General Plant Total Utility Plant in Service

167 Company Name XXXXX Schedule of Isolated Generation Forecast Retirement Dates Schedule 6-5 Page 1 of 1 Line Retirement No. Description Unit Date 1 Communities Community Mobiles Transmission Microwaves

168 Company Name XXXXX Schedule of Transmission Income Taxes, utility operating income $m Schedule 7-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Utility Income Tax Expense S Farms, Irrigation Transmission 4 Utility Income Tax Expense 5 6 Total Utility Income Tax Expense S

169 Company Name XXXXX Schedule of Transmission Income Taxes $m Schedule 7-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Income taxes, utility operating income 2 Federal Income Tax 3 Federal Taxable Income S Income Tax Rate 5 Federal Income Tax Provincial Income Tax 8 Federal Taxable Income 9 Add: CCA Federal Flowthrough S Less: CCA Provincial Flowthrough S Provincial Taxable Income Income Tax Rate 13 Provincial Income Tax Reserve for Rainbow Pipeline Expense Total Provincial Income Tax Total Current Tax (L.5+L.14) Provisions for future income taxes, utility operating income 20 Federal Temporary Differences S Income Tax Rate Other Total Future Tax S Other Items 27 Large Corporations Tax S Preferred Dividend Tax 29 Other 30 Total Other Items Utility Income Tax (L.15+L.21+L.26) S

170 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 7-3 Page 1 of 3 Line Prior Yr. 3 Cross Actuals No. Description Reference Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC - 7 ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense - 15 Rate Case Claims - 16 Capital Repair Costs (Rainbow Pipeline Case) - 17 Deferred Pension Expense - 18 Deferrals for Tax Purposes - 19 Non Allowable Meals, Mileage, Gifts - 20 Part VI.I Tax Deduction - 21 Other - 22 Subtotal Federal Taxable Income S

171 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 7-3 Page 2 of 3 Prior Yr. 2 Prior Yr. 1 Line Cross Actuals Forecast No. Description Reference Permanent Temporary Total Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense Rate Case Claims Capital Repair Costs (Rainbow Pipeline Case) Deferred Pension Expense Deferrals for Tax Purposes Non Allowable Meals, Mileage Part VI.I Tax Deduction Other Subtotal Federal Taxable Income S

172 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 7-3 Page 3 of 3 Test Period Test Period Line Cross Yr. 1 Yr. 2 No. Description Reference Permanent Temporary Total Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense Rate Case Claims Capital Repair Costs (Rainbow Pipeline Case) Deferred Pension Expense Deferrals for Tax Purposes Non Allowable Meals, Mileage Part VI.I Tax Deduction Other Subtotal Federal Taxable Income S

173 Company Name XXXXX Schedule of Transmission Capital Cost Allowance Prior Yr. 3 $m Schedule 7-4 Page 1 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Cla No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 4 1 FEDERAL 2 3 Undepreciated Capital Cost December 31, xxxx 4 xxxx Gross Additions 5 Deduct: Net change in holdbacks 6 Allowance for Funds Used 7 Increase in Extension Contributions 8 Depreciation on Automotive Equip 9 Meals and Expenses 10 ES&G Running Costs 11 Capital Repair Costs 12 Net change in ES&G carryover 13 Add: Dismantling Expense 14 Sub Total Deduct: Lesser of Cost or Proceeds 16 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 20 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL Undepreciated Capital Cost December 31, xxxx 28 xxxx Gross Additions 29 Deduct: Net change in holdbacks 30 Allowance for Funds Used 31 Increase in Extension Contributions 32 Depreciation on Automotive Equip 33 Meals and Expenses 34 ES&G Running Costs 35 Capital Repair Costs 36 Net change in ES&G carryover 37 Dismantling Expense 38 Sub Total Deduct: Lesser of Cost or Proceeds 40 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 44 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

174 ATCO Electric Schedule of Transmission Capital Cost Allowance Prior Yr. 2 $m Schedule 7-4 Page 2 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Cla No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 4 1 FEDERAL 2 3 Undepreciated Capital Cost December 31, xxxx 4 xxxx Gross Additions 5 Deduct: Net change in holdbacks 6 Allowance for Funds Used 7 Increase in Extension Contributions 8 Depreciation on Automotive Equip 9 Meals and Expenses 10 ES&G Running Costs 11 Capital Repair Costs 12 Net change in ES&G carryover 13 Add: Dismantling Expense 14 Sub Total Deduct: Lesser of Cost or Proceeds 16 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 20 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL Undepreciated Capital Cost December 31, xxxx 28 xxxx Gross Additions 29 Deduct: Net change in holdbacks 30 Allowance for Funds Used 31 Increase in Extension Contributions 32 Depreciation on Automotive Equip 33 Meals and Expenses 34 ES&G Running Costs 35 Capital Repair Costs 36 Net change in ES&G carryover 37 Dismantling Expense 38 Sub Total Deduct: Lesser of Cost or Proceeds 40 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 44 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

175 ATCO Electric Schedule of Transmission Capital Cost Allowance Prior Yr. 1 $m Schedule 7-4 Page 3 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Cla No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 4 1 FEDERAL 2 3 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 6 Deduct: Land / Land Right Payments 7 Allowance for Funds Used 8 Increase in Extension Contributions 9 Depreciation on Automotive Equip 10 Meals and Expenses 11 ES&G Running Costs 12 Net change in ES&G carryover 13 Capital Repair Costs 14 Add: Dismantling Expense 15 Sub Total Deduct: Lesser of Cost or Proceeds 17 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 21 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31,xxxx PROVINCIAL Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 31 Deduct: Land / Land Right Payments 32 Allowance for Funds Used 33 Increase in Extension Contributions 34 Depreciation on Automotive Equip 35 Meals and Expenses 36 ES&G Running Costs 37 Net change in ES&G carryover 38 Capital Repair Costs 39 Dismantling Expense 40 Sub Total Deduct: Lesser of Cost or Proceeds 42 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 46 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31,xxxx

176 ATCO Electric Schedule of Transmission Capital Cost Allowance Test Period Yr. 1 $m Schedule 7-4 Page 4 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Cla No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 4 1 FEDERAL 2 3 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 6 Deduct: Land / Land Right Payments 7 Allowance for Funds Used 8 Increase in Extension Contributions 9 Depreciation on Automotive Equip 10 Meals and Expenses 11 ES&G Running Costs 12 Capital Repair Costs 13 Add: Dismantling Expense 14 Sub Total Deduct: Lesser of Cost or Proceeds 16 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 20 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 30 Deduct: Land / Land Right Payments 31 Allowance for Funds Used 32 Increase in Extension Contributions 33 Depreciation on Automotive Equip 34 Meals and Expenses 35 ES&G Running Costs 36 Capital Repair Costs 37 Dismantling Expense 38 Sub Total Deduct: Lesser of Cost or Proceeds 40 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 44 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31,xxxx

177 ATCO Electric Schedule of Transmission Capital Cost Allowance Test Period Yr. 2 $m Schedule 7-4 Page 5 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Cla No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 4 1 FEDERAL 2 3 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 6 Deduct: Land / Land Right Payments 7 Allowance for Funds Used 8 Increase in Extension Contributions 9 Depreciation on Automotive Equip 10 Meals and Expenses 11 ES&G Running Costs 12 Capital Repair Costs 13 Add: Dismantling Expense 14 Sub Total Deduct: Lesser of Cost or Proceeds 16 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 20 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 30 Deduct: Land / Land Right Payments 31 Allowance for Funds Used 32 Increase in Extension Contributions 33 Depreciation on Automotive Equip 34 Meals and Expenses 35 ES&G Running Costs 36 Capital Repair Costs 37 Dismantling Expense 38 Sub Total Deduct: Lesser of Cost or Proceeds 40 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 44 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31,xxxx

178 Company Name XXXXX Schedule of Large Corporations Tax $m Schedule 7-5 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Capital 2 Equity (including preferred) 3 Reserves 4 Loans and Advances 5 Long Term Debt 6 Dividends Payable 7 Shares in Other Corporations 8 Loans and Advances to Other Corporations 9 Tax Base Large Corporations Tax Before Adjustment Capital Reduction Amount Large Corporations Tax S

179 Company Name XXXXX Schedule of Transmission Revenue Offsets $m Schedule 8-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Revenue - Affiliates & Inter-Affiliates Miscellaneous revenue - other 4 5 Total Revenue Offsets S. 3-1

180 Company Name XXXXX Schedule of Transmission Return on Rate Base $m Schedule 9-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Rate Base S Net Mid Year Contributions S Net Rate Base Cost Rate S % % % % 5 6 Return on Rate Base Farms, Irrigation Transmission 9 Rate Base S Cost Rate S % % % % % Return on Rate Base Total Return on Rate Base S

181 Company Name XXXXX Schedule of Transmission AFUDC $m Schedule 9-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Prior Year Work-In-Progress 2 Adjusted for Holdbacks 3 4 Current Year Work-in-Progress 5 Adjusted for Holdbacks net of AFUDC 6 7 Mid Year Work-in-Progress 8 9 Add: Materials & Supplies Inventory Compounded Cost of Capital Rate AFUDC Mid-Year Materials and Supplies Inventory Mid Year Inventory Total S Mid Year 93%

182 Company Name XXXXX Schedule of Transmission Rate Base $m Schedule 10-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Adjusted Prior Year Property, Plant and Equipment S Line Adjusted Prior Year Accumulated Depreciation S Line Prior Year Net Property Current Year Property, Plant and Equipment S Current Year Accumulated Depreciation S Current Year Net Property Mid-Year Net Property Working Capital S Rate Base S Farms, Irrigation Transmission 16 Mid Year Net Property 17 Working Capital S Rate Base S Total Rate Base S

183 Company Name XXXXX Schedule of Transmission Property, Plant & Equipment $m Schedule 10-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous Year Balance Capital Deferral Capital Deferral - 4 Purchase of AEC Foster Creek Facilities - 5 Adjusted Previous Year Balance S Additions to property 8 Transmission S Direct General PP&E S Allocated General PP&E S Retirements and Adjustments 13 Transmission 14 Direct General PP&E 15 Allocated General PP&E Total Property Plant & Equipment S

184 Company Name XXXXX Schedule of Transmission Accumulated Depreciation $m Schedule 10-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous year balance Capital Deferral Depreciation Adjusted Previous Year Balance Gross Provision 7 Transmission S Direct General PP&E S Allocated General PP&E S Retirements, Net Salvage and Adjustments 12 Transmission 13 Direct General PP&E 14 Allocated General PP&E Total Accumulated Depreciation S Accumulated Depreciation - Life 20 Accumulated Depreciation - Net Salvage

185 Company Name XXXXX Schedule of Transmission Capital Expenditures $m Schedule 10-4 Page 1 of 3 Prior Yr. 3 Actuals Cross CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance TRANSMISSION CAPITAL MAINTENANCE Details by project TELECOMMUNICATION Details by project SCADA / EMS Details by project TOTAL CAPITAL MAINTENANCE DIRECT ASSIGNED PROJECTS Details by project TRANSMISSION ISOLATED GENERATION Details by project Total Transmission Dismantling Expense Additions to Property 0.0 DIRECT GENERAL PP&E Details by project Dismantling Expense - Additions to Property 0.0 Farms, Irrigation Transmission

186 Company Name XXXXX Schedule of Transmission Capital Expenditures $m Schedule 10-4 Page 2 of 3 Prior Yr. 2 Prior Yr. 1 Actuals Forecast Cross CWIP Cap Cap CWIP CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance Balance Expend Adds Balance TRANSMISSION CAPITAL MAINTENANCE Details by project TELECOMMUNICATION Details by project SCADA / EMS Details by project TOTAL CAPITAL MAINTENANCE DIRECT ASSIGNED PROJECTS Details by project TRANSMISSION ISOLATED GENERATION Details by project Total Transmission Dismantling Expense Additions to Property DIRECT GENERAL PP&E Details by project Dismantling Expense - Additions to Property Farms, Irrigation Transmission

187 Company Name XXXXX Schedule of Transmission Capital Expenditures $m Schedule 10-4 Page 3 of 3 Test Period Test Period Yr. 1 Yr. 2 Cross CWIP Cap Cap CWIP CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance Balance Expend Adds Balance CAPITAL MAINTENANCE Details by project TELECOMMUNICATION Details by project SCADA / EMS Details by project TOTAL CAPITAL MAINTENANCE DIRECT ASSIGNED PROJECTS Details by project TRANSMISSION ACQUISITIONS TRANSMISSION ISOLATED GENERATION Details by project Oracle Capital Construction Savings Total Transmission Dismantling Expense Additions to Property 0.0 DIRECT GENERAL PP&E Details by project Dismantling Expense Additions to Property Farms, Irrigation Transmission

188 Company Name XXXXX Schedule of Transmission ES&G $m Schedule 10-5 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 ES&G 2 Contributions 3 4 Net ES&G S

189 Company Name XXXXX Schedule of Transmission Contributions in Aid of Construction $m Schedule 10-6 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Contributions 2 Prior Year Gross Contributions Additions to property 5 Customer Refund - 6 Retirements, Transfers & Disposals Current Year Gross Contributions Accumulated Amortization 11 Prior Year Accum. Amortization Retirements, Transfers & Disposals - 13 Gross Amortization S Current Year Accum. Amortization Net Mid Year Contributions S

190 Company Name XXXXX Schedule of Transmission Computer System Costs $m Schedule 10-7 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous Years Balance Additions 5 Transmission Direct 6 7 Allocated Corporate Computer Systems 8 9 Amortization S Unamortized Computer System Costs Mid Year Unamortized Computer System Costs S

191 Company Name XXXXX Schedule of Transmission Necessary Working Capital $m Schedule 11-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Operating Expense S Income Tax Expense S Materials & Supplies Inventory S Unamortized Computer System Costs S Rate Case Expense S Goods & Services Tax S Depreciation Expense S Interest Expense S Preferred Equity S Common Equity (retained earnings component) S Common Equity (dividend component) S Necessary Working Capital S Farms, Irrigation Transmission 15 Necessary Working Capital S Total Necessary Working Capital

192 Company Name XXXXX Schedule of Transmission Necessary Working Capital Calculation $m Schedule 11-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Total Fuel & Operating Costs S Less: Provision for Injuries and Damages S Net O&M O&M Lag Days S Cash Operating Expenses Working Capital S Utility Income Taxes S Income Tax Lag Days S Income Tax Working Capital S Mid Year Other Inventory S Inventory Factor 13 Other Inventory Working Capital Mid Year Fuel Inventory 15 Mid Year Housing Inventory 16 Total Inventory Working Capital S Mid Year Unamortized Deferred Software Mid Year Deferred Rate Case S GST Working Capital S Return - Long Term Debt S Combined Long Term Debt Lag Days S Long Term Debt Working Capital S Return - Preferred Equity S Combined Preferred Shares Lag Days S Preferred Equity Working Capital S Return - 50% of Common Equity S Preferred Equity Lag Days S Common Equity (Dividend) Working Capital S Return - 50% of Common Equity S Depreciation Lag Days S Com. Equity (Ret. Earnings) Working Capital S Net Depreciation S Depreciation Lag Days S Depreciation Working Capital S Total Working Capital S

193 Company Name XXXXX Transmission Lead/Lag Days For Necessary Working Capital Schedule 11-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Operating Expense S Income Tax Expense S Depreciation Expense S Interest Expense S Preferred Equity S Common Equity (retained earnings component) S Common Equity (dividend component) S. 11-2

194 Company Name XXXXX Schedule of Transmission Net Operating Expense Lead/Lag Days $m Schedule 11-4 Page 1 of Lead/Lag Days Line Cross Actual Lag Weighted 2003/2004 No. Description Reference Revenue Days Revenue Application 1 Revenue 2 Industrial Facility Charges - 3 Transmission Tariff - 4 Other Total Deferrals (not forecasted to occur in GTA period) 9 10 Total Transmission Revenue S Operating Expense S Net Transmission Operating Expense Lag S

195 Company Name XXXXX Schedule of Transmission Operating Expense Lag Days $m Schedule 11-5 Page 1 of Actual 2003 Lead/Lag Days Line Cross Operating (Lead) Lag Weighted 2003/2004 No. Description Reference Expenses Days Expense Application 1 Salary and Wages 2 Salaries and Wages (net) - 3 Payroll Deductions - 4 Overtime and Standby Taxes Other Than Income 7 Property Taxes Other General Operating Expenses 10 Travel - 11 Insurance - 12 Annual Right of Way Payments - 13 Company Benefits - 14 Parent Charges - 15 Contractor Services - 16 Information Technology - 17 Fuel - Isolated (Note) - 18 Other Total S

196 Company Name XXXXX Transmission GST Impact on Working Capital $m Schedule 11-6 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 REVENUE: 2 Total Operating Revenue S Net Receipts Applicable to GST GST Rate 5 GST Billable (a) Day Factor - Revenues S Day Factor - Remittance Lag 9 (b) GST Impact on Working Capital Increase/(Decrease) (a)*(b)/ EXPENSES: 14 Total Fuel & Operating Costs S Property Taxes S Parent Charges 17 Labour & Fringe 18 Deferred Pension Write - Off 19 Provision for Injuries and Damages S Rate Case Provision Reserve for I&D Claims S Rate Case Claims Capital Expenditures Net Costs Applicable to GST GST Rate 26 GST Refundable (c) Day Factor - Expenses (Including Capital) 29 Day Factor - Remittance Lag 30 (d) GST Impact on Working Capital Increase/(Decrease) (c)*(d)/ Net GST Impact on Working Capital Increase/(Decrease) S

197 Company Name XXXXX Summary of Distribution Revenues and Costs $m Schedule 12-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Revenues 2 Distribution Sales 3 Deferral Accounts 4 Payment from Balancing Pool 5 Total Revenues Costs 8 Cost of Sales S Operating Costs S Depreciation S Return on Rate Base S Income Tax Expense S Revenue Offsets S Total Costs Retail Sales Revenue at Existing Rates S Increase % Increase % %

198 Company Name XXXXX Summary of Customers, Energy and Revenue Schedule 13-1 Page 1 of 1 At Existing Rates Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Rate Class 1 2 Customers - Average 3 Energy Sales (MW.h) 4 Revenue ($000's) 5 kw.h per Customer 6 Cents/kW.h 7 Rate Class 2 8 Customers - Average 9 Energy Sales (MW.h) 10 Revenue ($000's) 11 kw.h per Customer 12 Cents/kW.h 13 Rate Class 3 14 Customers - Average 15 Energy Sales (MW.h) 16 Revenue ($000's) 17 Cents/kW.h 18 Rate Class 4 19 Customers - Average 20 Energy Sales (MW.h) 21 Revenue ($000's) 22 kw.h per Customer 23 Cents/kW.h 24 Rate Class 5 25 Customers - Average 26 Energy Sales (MW.h) 27 Revenue ($000's) 28 kw.h per Customer 29 Cents/kW.h 30 Rate Class 6 31 Energy Sales (MW.h) 32 Revenue ($000's) 33 Cents/kW.h DISTRIBUTION TOTAL AS BILLED 36 Customers - Average Energy Sales (MW.h) PF Demand (MVA) 39 PF Revenue ($000's) 40 Total Revenue ($000's) Cents/kW.h TRANSMISSION DIRECT CONNECT TOTAL AS BILLED 44 Customers - Average 45 Energy Sales (MW.h) 46 Total Revenue ($000's) TOTAL REVENUE Refund Per Refiling

199 Company Name XXXXX Schedule of Distribution Cost of Sales $m Schedule 14-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Transmission Access Payments S Fuel & Non Pool Energy Costs S Disallowed/Non-Utility Costs Total Cost of Sales S

200 Company Name XXXXX Transmission Access Payments - Details Schedule 14-2 Page 1 of 5 Line No. Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Prior Yr. 3 Actuals 1 Tariff Determinants 2 DTS $/MW/month 3 DTS energy $/MWh 4 DTS Operating Reserve Charge 5 DTS Other System Support 6 7 Forecast Determinants 8 DTS Total Billing Capacity 9 DTS Total Energy 10 DTS Max Capacity Average Monthly Pool Price Calculations 15 DTS Charges 16 DTS Capacity 17 DTS Energy 18 DTS Operating Reserve 19 DTS Other System Support 20 Deferred Power Charge Total DTS Total COS Credit Deficient Power Charge Total UFS Credit True Up Credit Total TAP

201 Company Name XXXXX Transmission Access Payments - Details Schedule 14-2 Page 2 of 5 Line No. Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Prior Yr. 2 Actuals 1 Tariff Determinants 2 DTS $/MW/month 3 DTS energy $/MWh 4 DTS Operating Reserve Charge 5 DTS Other System Support 6 7 Forecast Determinants 8 DTS Total Billing Capacity 9 DTS Total Energy 10 DTS Max Capacity Average Monthly Pool Price Calculations 15 DTS Charges 16 DTS Capacity 17 DTS Energy 18 DTS Operating Reserve 19 DTS Other System Support 20 Deferred Power Charge Total DTS Total COS Credit Deficient Power Charge Total UFS Credit True Up Credit Total TAP

202 Company Name XXXXX Transmission Access Payments - Details Schedule 14-2 Page 3 of 5 Line No. Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Prior Yr. 1 Forecast 1 Tariff Determinants 2 DTS $/MW/month 3 DTS energy $/MWh 4 DTS Operating Reserve Charge 5 DTS Other System Support 6 7 Forecast Determinants 8 DTS Total Billing Capacity 9 DTS Total Energy 10 DTS Max Capacity Average Monthly Pool Price Calculations 15 DTS Charges 16 DTS Capacity 17 DTS Energy 18 DTS Operating Reserve 19 DTS Other System Support 20 Deferred Power Charge Total DTS Total COS Credit Deficient Power Charge Total UFS Credit True Up Charge / (Credit) 31 Prior Year Adjustments (credit) 32 Total TAP

203 Company Name XXXXX Transmission Access Payments - Details Schedule 14-2 Page 4 of 5 Line No. Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Test Period Yr. 1 1 Tariff Determinants 2 DTS $/MW/month 3 DTS energy $/MWh 4 DTS Operating Reserve Charge 5 DTS Other System Support 6 7 Forecast Determinants 8 DTS Total Billing Capacity 9 DTS Total Energy 10 DTS Max Capacity Average Monthly Pool Price Calculations 15 DTS Charges 16 DTS Capacity 17 DTS Energy 18 DTS Operating Reserve 19 DTS Other System Support 20 Deferred Power Charge Total DTS Total COS Credit Deficient Power Charge Total UFS Credit True Up Credit Total TAP

204 Company Name XXXXX Transmission Access Payments - Details Schedule 14-2 Page 5 of 5 Line No. Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Test Period Yr. 2 1 Tariff Determinants 2 DTS $/MW/month 3 DTS energy $/MWh incl Voltage Control Chg 4 DTS Operating Reserve Charge 5 DTS Other System Support 6 7 Forecast Determinants 8 DTS Total Billing Capacity 9 DTS Total Energy 10 DTS Max Capacity Average Monthly Pool Price Calculations 15 DTS Charges 16 DTS Capacity 17 DTS Energy 18 DTS Operating Reserve 19 DTS Other System Support 20 Deferred Power Charge Total DTS Total COS Credit Deficient Power Charge Total UFS Credit True Up Credit Total TAP

205 Company Name XXXXX Schedule of Fuel & Non Pool Energy Costs $m Schedule 14-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Fuel 2 Non Pool Energy 3 Distribution Interchange 4 Power Pool Receipts 5 6 Less Disallowed/Non-Utility Costs Fuel & Non Pool Energy S

206 Company Name XXXXX Schedule of Distribution Operation & Maintenance Costs $m Schedule 15-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Distribution Expenses Operation and Maintenance 2 Total S Customer Accounting 5 Total S Account Services and Public Information 8 Total S Total Isolated Generation Operation and Maintenance S Allocated Share of General Operation And Maintenance S Allocated Share of Common Operations S Total Operation and Maintenance Allocated Administrative & General S Taxes Other Than Income S Farms, Irrigation Transmission Operating Costs TOTAL DISTRIBUTION OPERATING COSTS S

207 Company Name XXXXX Schedule of Account Services and Public Information $m Schedule 15-2 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 Account Services and Public Information Supervision S Customer assistance expenses S Informational and instructional advertising expenses S Miscellaneous customer service and informational expenses S Less Disallowed/Non-Utility Costs 7 Item 1 8 Item Total S

208 Company Name XXXXX Schedule of Distribution Operation & Maintenance Costs Variance Explanations $m Schedule 15-3 Page 1 of 1 Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Reference Actuals Actuals Forecast Yr. 1 Yr Non-Affiliate S Affiliate Supervision Non-Affiliate S Affiliate Customer assistance expenses Non-Affiliate S Affiliate Informational and instructional advertising expenses Non-Affiliate S Affiliate Miscellaneous customer service and informational expenses

209 Company Name XXXXX Schedule of Distribution Operation & Maintenance Costs $m Schedule 15-4 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Customer Accounting Supervision S Meter Reading Expenses S Customer records and collection expenses S Uncollectible accounts S Miscellaneous customer accounts expenses S IT customer service S Less Disallowed/Non-Utility Costs 10 Item 1 11 Item Total S

210 Company Name XXXXX Schedule of Distribution Operation & Maintenance Costs - Customer Accounting Variance Explanations $m Schedule 15-5 Page 1 of 1 Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Reference Actuals Actuals Forecast Yr. 1 Yr Non-Affiliate S Affiliate Supervision Non-Affiliate S Affiliate Meter Reading Expenses Non-Affiliate S Affiliate Customer records and collection expenses Non-Affiliate S Affiliate Uncollectible accounts Non-Affiliate S Affiliate Miscellaneous customer accounts expenses Non-Affiliate S Affiliate IT customer service

211 Company Name XXXXX Schedule of Distribution Expenses Operation & Maintenance Costs $m Schedule 15-6 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Distribution Expenses Operation and Maintenance Supervision and engineering S Control centre operations S Station equipment expenses S Overhead line expenses S Underground line expenses S Street lighting and signal system expenses S Meter expenses S Customer installations expenses S Miscellaneous distribution expenses S Right of way payments S Operation & maintenance of structures S Vegetation management S Line transformers S IT support S Less Disallowed/Non-Utility Costs 18 Item 1 19 Item Total S

212 Company Name XXXXX Schedule of Distribution Direct Operation & Maintenance Costs Variance Explanations $m Schedule 15-7 Page 1 of 1 Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Actuals Actuals Forecast Yr. 1 Yr Non-Affiliate Affiliate Supervision and engineering Non-Affiliate Affiliate Control centre operations Non-Affiliate Affiliate Station equipment expenses Non-Affiliate Affiliate Overhead line expenses Non-Affiliate Affiliate Underground line expenses Non-Affiliate Affiliate Street lighting and signal system expenses Non-Affiliate Affiliate Meter expenses Non-Affiliate Affiliate Customer installations expenses Non-Affiliate Affiliate Right of way payments Non-Affiliate Affiliate Operation & maintenance of structures Non-Affiliate Affiliate Vegetation management Non-Affiliate Affiliate Line transformers Non-Affiliate Affiliate IT support

213 Company Name XXXXX Details of Miscellaneous Distribution Expenses - GTA Account 588 $m Schedule 15-8 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Non Affiliate 2 Labour 3 Other 5 General Administration Expense 6 Employee Benefits 7 Safety and Training 8 Special Services and Studies 9 10 Total Non Affiliate S Affiliate Allocated Share of Common Operations S Total S

214 Company Name XXXXX Schedule of Distribution Costs ($000's) Schedule 15-9 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Account Services and Public Information - Labour 2 Account Services and Public Information - Fringe 3 Account Services and Public Information - Contractor Services 4 Account Services and Public Information - Other Customer Accounting - Labour 8 Customer Accounting - Fringe 9 Customer Accounting - Contractor Services 10 Customer Accounting - Other Distribution Direct O&M - Labour 14 Distribution Direct O&M - Fringe 15 Distribution Direct O&M - Contractor Services 16 Distribution Direct O&M - Other Isolated O&M - Labour 20 Isolated O&M - Fringe 21 Isolated O&M - Contractor Services 22 Isolated O&M - Other General O&M - Labour 26 General O&M - Fringe 27 General O&M - Contractor Services 28 General O&M - Other Total Operations & Maintenance - Labour Total Operations & Maintenance - Fringe Total Operations & Maintenance - Contractor Services Total Operations & Maintenance - Other Capital - Labour Other - Labour Total Distribution - Labour

215 Company Name XXXXX Schedule of Distribution Manpower - Full Time Equivalents (FTE's) Annual Averages Schedule Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 GTA Complement - Permanent 2 Vacancy 3 Final Adjusted Complement - Perm Vacancy Rate % % % % % 5 6 GTA Complement - Temporary 7 Vacancy 8 Final Adjusted Complement - Temp Vacancy Rate % % % % % GTA Complement - Total Vacancy Final Adjusted Complement Vacancy Rate % % % % % 15 Final Adjusted Complement by Area 16 Total Operations & Maintenance 17 Capital 18 Other Labour Cost ($000's) - Schedule Labour per FTE

216 ATCO Electic Schedule of Distribution Taxes Other Than Income Taxes $m Schedule Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Taxes other than income taxes, utility operating income 2 Franchise Fee (New Agreements) 3 Franchise Tax (Old Agreements) 4 Distribution Systems 5 Communications 6 General Isolated Generation Plants Total Distribution S

217 Company Name XXXXX Schedule of Distribution Depreciation Expense $m Schedule 16-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Depreciation and amortization expense 2 Gross Depreciation Provision S Vehicle Depreciation Capitalized 4 Amortization of Computer System Costs S Amortization of Contributions S Total Depreciation Expense S

218 Company Name XXXXX Schedule of Distribution Gross Depreciation Provision $m Schedule 16-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Distribution 2 Distribution 3 Amortization of Differences 4 Sub Total S Direct General PP&E 7 Direct General PP&E 8 Amortization of Differences 9 Sub Total S Allocated General PP&E S Distribution Gross Provision Farms, Irrigation to Transmission Total Distribution Gross Depreciation Provisio S Depreciation Gross Provision - Life 21 Depreciation Gross Provision - Net Salvage

219 Company Name XXXXX Schedule of Distribution Depreciation Parameters and Rates Schedule 16-3 Page 1 of Parameters Parameters Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period YFR/Int.Ret. YFR/Int.Ret. Actuals Actuals Forecast Yr. 1 Yr. 2 Account Description Life N.S. Life N.S. Rate Rate Rate Rate Rate Distribution Facilities 360 Land Land rights 361 Structures and Improvements 362 Station equipment System communication & control 363 Storage battery equipment 364 Poles, towers, and fixtures 365 Overhead conductors and devices 367 Underground conductors and devices 368 Line transformers 370 Conventional meters 371 Automated meters 373 Street lighting and signal systems 374 Asset retirement costs for distribution plant General Plant 389 Land Land rights 390 Structures and Improvements 391 Transportation Equipment Computer hardware & voice and data network equipment Computer software and applications Load settlement software applications 392 Transportation equipment, fleet vehicles 394 Tools, shop, garage, stores and laboratory equipment 396 Power operated equipment 397 Mobile communication equipment 398 Miscellaneous equipment 399 Other tangible property Asset retirement costs for general plant Leasehold improvements

220 Company Name XXXXX Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision For True-up Related to Estimated Original Cost as of June 30, 2004 "Life Analysis" Schedule 16-4 Page 1 of 2 Surviving Calculated Book Accumulated Probable Annual Original Cost Accrued Accumulated Depreciation Remaining Provision Account Description at 06/30/2004 Depreciation Depreciation Variance Life for True-Up (1) (2) (3) (4) (5) (6) = (4)-(5) (7) (8)=(6)/(7) Transmission Plant Land rights Poles and fixtures Overhead conductors and devices Towers and fixtures Station equipment - Total Transmission Plant McNeill Converter Station Land rights Poles and fixtures Overhead conductors and devices Station equipment - Total McNeill Converter Distribution Plant Land rights Poles, towers and fixtures Overhead conductors and devices Underground conductors and devices Conventional meters Automated meters Station equipment Street lighting and signal systems Line transformers - Total Distribution Plant General Plant 390 Structures and improvements Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications Transportation equipment, fleet vehicles Tools, shop, garage, stores and laboratoy equipment - Total General Plant Total Utility Plant in Service

221 Company Name XXXXX Calculated Accrued Depreciation, Book Accumulated Depreciation and Determination of Annual Provision For True-up Related to Estimated Original Cost as of June 30, 2004 "Net Salvage Analysis" Schedule 16-4 Page 2 of 2 Surviving Calculated Book Accumulated Probable Annual Original Cost Accrued Accumulated Depreciation Remaining Provision Account Description at 06/30/2004 Depreciation Depreciation Variance Life for True-Up (1) (2) (3) (4) (5) (6) = (4)-(5) (7) (8)=(6)/(7) Transmission Plant Land rights Poles and fixtures Overhead conductors and devices Towers and fixtures Station equipment - Total Transmission Plant McNeill Converter Station Land rights Poles and fixtures Overhead conductors and devices Station equipment - Total McNeill Converter Distribution Plant Land rights Poles, towers and fixtures Overhead conductors and devices Underground conductors and devices Conventional meters Automated meters Station equipment Street lighting and signal systems Line transformers - Total Distribution Plant General Plant 390 Structures and improvements Office furniture and equipment Computer hardware & voice and data network equipment Computer software and applications Transportation equipment, fleet vehicles Tools, shop, garage, stores and laboratoy equipment - Total General Plant Total Utility Plant in Service

222 Schedule 16-5 Page 1 of 1 Company Name XXXXX Schedule of Isolated Generation Forecast Retirement Dates Line Retirement No. Description Unit Date 1 Industrial Areas

223 Company Name XXXXX Schedule of Distribution Utility Income Tax Expense $m Schedule 17-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Utility Income Tax Expense S Farms, Irrigation to Transmission 4 Utility Income Tax Expense 5 6 Total Utility Income Tax Expense S

224 Company Name XXXXX Schedule of Distribution Income Taxes $m Schedule 17-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Income taxes 2 Federal Income Tax 3 Federal Taxable Income S Income Tax Rate 5 Federal Income Tax Provincial Income Tax 8 Federal Taxable Income Add: CCA Federal Flowthrough S Less: CCA Provincial Flowthrough S Provincial Taxable Income Income Tax Rate 13 Provincial Income Tax Reserve for Rainbow Pipeline Expense Total Provincial Income Tax Total Current Tax (L.5+L.14) Provisions for future income taxes 20 Federal Temporary Differences S Income Tax Rate Other Total Future Tax S Other Items 27 Large Corporations Tax S Preferred Dividend Tax Other Total Other Items Utility Income Tax (L.15+L.21+L.26) S

225 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 17-3 Page 1 of 3 Prior Yr. 3 Line Cross Actuals No. Description Reference Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC - 7 ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense - 15 Rate Case Claims - 16 Capital Repair Costs (Rainbow Pipeline Case) - 17 Deferred Pension Expense - 18 Deferrals for Tax Purposes - 19 Non Allowable Meals, Mileage, Gifts - 20 Part VI.I Tax Deduction Other - 22 Subtotal Federal Taxable Income S

226 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 17-3 Page 2 of 3 Prior Yr. 2 Prior Yr. 1 Line Cross Actuals Forecast No. Description Reference Permanent Temporary Total Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense Rate Case Claims Capital Repair Costs (Rainbow Pipeline Case) Deferred Pension Expense Deferrals for Tax Purposes Non Allowable Meals, Mileage, Gifts Part VI.I Tax Deduction Other Subtotal Federal Taxable Income S

227 Company Name XXXXX Determination of Federal Taxable Income $m Schedule 17-3 Page 3 of 3 Test Period Test Period Line Cross Yr. 1 Yr. 2 No. Description Reference Permanent Temporary Total Permanent Temporary Total 1 Utility Earnings Before Tax Add / (Deduct): 4 Depreciation/Amortization of Contributions S CCA - Federal S CEC ES&G S Reserve for I&D - Provision S Expense Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Reserve for I&D - Claims S Payments Related to Premiums S Fleet Insurance Premiums Charged to Various Functions S Rate Case Expense Rate Case Claims Capital Repair Costs (Rainbow Pipeline Case) Deferred Pension Expense Deferrals for Tax Purposes Non Allowable Meals, Mileage Part VI.I Tax Deduction Other Subtotal Federal Taxable Income S

228 Company Name XXXXX Schedule of Distribution Capital Cost Allowance Prior Yr. 3 $m Schedule 17-4 Page 1 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Class No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 45 FEDERAL 1 Undepreciated Capital Cost December 31, xxxx 2 xxxx Gross Additions 3 Deduct: Land / Land Right Payments 4 Allowance for Funds Used 5 Increase in Extension Contributions 6 Depreciation on Automotive Equip 7 Meals and Expenses 8 ES&G Running Costs 9 Capital Repair Costs 10 Net change in ES&G carryover/holdbacks 11 Add: Dismantling Expense 12 Sub Total Deduct: Lesser of Cost or Proceeds 14 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 16 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL 20 Undepreciated Capital Cost December 31, xxxx 21 xxxx Gross Additions 22 Deduct: Land / Land Right Payments 23 Allowance for Funds Used 24 Increase in Extension Contributions 25 Depreciation on Automotive Equip 26 Meals and Expenses 27 ES&G Running Costs 28 Capital Repair Costs 29 Net change in ES&G carryover/holdbacks 30 Dismantling Expense 31 Sub Total Deduct: Lesser of Cost or Proceeds 33 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 35 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

229 ATCO Electric Schedule of Distribution Capital Cost Allowance Prior Yr. 2 $m Schedule 17-4 Page 2 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Class No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 45 FEDERAL 1 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 4 Deduct: Land / Land Right Payments 5 Allowance for Funds Used 6 Increase in Extension Contributions 7 Depreciation on Automotive Equip 8 Meals and Expenses 9 ES&G Running Costs 10 Capital Repair Costs 11 Add: Dismantling Expense 12 Sub Total Deduct: Lesser of Cost or Proceeds 14 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 16 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL 20 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 23 Deduct: Land / Land Right Payments 24 Allowance for Funds Used 25 Increase in Extension Contributions 26 Depreciation on Automotive Equip 27 Meals and Expenses 28 ES&G Running Costs 29 Capital Repair Costs 30 Dismantling Expense 31 Sub Total Deduct: Lesser of Cost or Proceeds 33 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 35 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

230 ATCO Electric Schedule of Distribution Capital Cost Allowance Prior Yr. 1 $m Schedule 17-4 Page 3 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Class No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 45 FEDERAL 1 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 4 Deduct: Land / Land Right Payments 5 Allowance for Funds Used 6 Increase in Extension Contributions 7 Depreciation on Automotive Equip 8 Meals and Expenses 9 ES&G Running Costs 10 Capital Repair Costs 11 Add: Dismantling Expense 12 Sub Total Deduct: Lesser of Cost or Proceeds 14 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 16 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL 20 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 23 Deduct: Land / Land Right Payments 24 Allowance for Funds Used 25 Increase in Extension Contributions 26 Depreciation on Automotive Equip 27 Meals and Expenses 28 ES&G Running Costs 29 Capital Repair Costs 30 Dismantling Expense 31 Sub Total Deduct: Lesser of Cost or Proceeds 33 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 35 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

231 ATCO Electric Schedule of Distribution Capital Cost Allowance Test Period Yr. 1 $m Schedule 17-4 Page 4 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Class No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 45 FEDERAL 1 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 4 Deduct: Land / Land Right Payments 5 Allowance for Funds Used 6 Increase in Extension Contributions 7 Depreciation on Automotive Equip 8 Meals and Expenses 9 ES&G Running Costs 10 Capital Repair Costs 11 Add: Dismantling Expense 12 Sub Total Deduct: Lesser of Cost or Proceeds 14 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 16 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL 20 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 23 Deduct: Land / Land Right Payments 24 Allowance for Funds Used 25 Increase in Extension Contributions 26 Depreciation on Automotive Equip 27 Meals and Expenses 28 ES&G Running Costs 29 Capital Repair Costs 30 Dismantling Expense 31 Sub Total Deduct: Lesser of Cost or Proceeds 33 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 35 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

232 ATCO Electric Schedule of Distribution Capital Cost Allowance Test Period Yr. 2 $m Schedule 17-4 Page 5 of 5 Line Class 1 Class 1A Class 2 Class 3 Class 6 Class 8 Class 10 Class 12 Class 13 Class 17 Class No. Description 4% 8% 6% 5% 10% 20% 30% 100% LEASE 8% 45 FEDERAL 1 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 4 Deduct: Land / Land Right Payments 5 Allowance for Funds Used 6 Increase in Extension Contributions 7 Depreciation on Automotive Equip 8 Meals and Expenses 9 ES&G Running Costs 10 Capital Repair Costs 11 Add: Dismantling Expense 12 Sub Total Deduct: Lesser of Cost or Proceeds 14 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 16 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx PROVINCIAL 20 Undepreciated Capital Cost December 31, xxxx xxxx Gross Additions 23 Deduct: Land / Land Right Payments 24 Allowance for Funds Used 25 Increase in Extension Contributions 26 Depreciation on Automotive Equip 27 Meals and Expenses 28 ES&G Running Costs 29 Capital Repair Costs 30 Dismantling Expense 31 Sub Total Deduct: Lesser of Cost or Proceeds 33 Capital Additions Undepreciated Capital Cost Before xxxx Claim CAPITAL COST ALLOWANCE FOR xxxx 35 On Balance Forward On Net Capital Additions Total xxxx Claim Undepreciated Capital Cost December 31, xxxx

233 Company Name XXXXX Schedule of Large Corporations Tax $m Schedule 17-5 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Capital 2 Equity (including preferred) 3 Reserves 4 Loans and Advances 5 Long Term Debt 6 Dividends Payable 7 Shares in Other Corporations 8 Loans and Advances to Other Corporations 9 Tax Base Large Corporations Tax Before Adjustment Capital Reduction Amount Large Corporations Tax S

234 Company Name XXXXX Schedule of Distribution Revenue Offsets $m Schedule 18-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr Revenue - Affiliates & Inter-Affiliates Miscellaneous revenue - other 4 5 Total Revenue Offsets S. 12-1

235 Company Name XXXXX Schedule of Distribution Return on Rate Base $m Schedule 19-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Rate Base S Net Mid Year Contributions S Net Rate Base Cost Rate S % % % % 5 6 Return on Rate Base Farms, Irrigation to Transmission 9 Rate Base S Cost Rate S % % % % % Return on Rate Base Total Return on Rate Base S

236 Company Name XXXXX Schedule of Distribution AFUDC $m Schedule 19-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Prior Year Work-In-Progress 2 Adjusted for Holdbacks 3 4 Current Year Work-in-Progress 5 Adjusted for Holdbacks net of AFUDC 6 7 Mid Year Work-in-Progress Add: Materials & Supplies Inventory Compounded Cost of Capital Rate AFUDC Mid-Year Materials and Supplies Inventory Mid Year Inventory Total S Mid Year 93%

237 Company Name XXXXX Schedule of Distribution Rate Base $m Schedule 20-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Adjusted Prior Year Property, Plant and Equipment S Line Adjusted Prior Year Accumulated Depreciation S Line 3 3 Prior Year Net Property Current Year Property, Plant and Equipment S Current Year Accumulated Depreciation S Current Year Net Property Mid-Year Net Property Working Capital S Rate Base S Farms, Irrigation to Transmission 16 Mid Year Net Property 17 Working Capital S Rate Base S Total Rate Base S

238 Company Name XXXXX Schedule of Distribution Property, Plant & Equipment $m Schedule 20-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous year balance Capital Deferrals Capital Deferrals 4 Adjusted Previous Year Balance S Additions to property 7 Distribution S Direct General PP&E S Allocated General PP&E S Retirements and Adjustments 12 Distribution 13 Direct General PP&E 14 Allocated General PP&E Total Property Plant & Equipment S

239 Company Name XXXXX Schedule of Distribution Accumulated Depreciation $m Schedule 20-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous year balance Capital Deferral Depreciation 3 Adjusted Previous Year Balance Gross Provision 6 Distribution S Direct General PP&E S Allocated General PP&E S Retirements, Net Salvage and Adjustments 11 Distribution 12 Direct General PP&E 13 Allocated General PP&E Total Accumulated Depreciation S Accumulated Depreciation - Life 18 Accumulated Depreciation - Net Salvage

240 Company Name XXXXX Schedule of Distribution Capital Expenditures $m Schedule 20-4 Page 1 of 3 Prior Yr. 3 Actuals Cross CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance SMALL NEW EXTENSIONS Details by project LARGE NEW EXTENSIONS Details by project CAPITAL MAINTENANCE Details by project LARGE SYSTEM IMPROVEMENTS Details by project TELECOMMUNICATION Details by project ISOLATED GENERATION Details by project 0.0 Total Distribution Dismantling Expense Additions to Property 0.0 DIRECT GENERAL PP&E Details by project Dismantling Expense 0.0 Additions to Property 0.0 Farms, Irrigation to Transmission

241 Company Name XXXXX Schedule of Distribution Capital Expenditures $m Schedule 20-4 Page 2 of 3 Prior Yr. 2 Prior Yr. 1 Actuals Forecast Cross CWIP Cap Cap CWIP CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance Balance Expend Adds Balance SMALL NEW EXTENSIONS Details by project LARGE NEW EXTENSIONS Details by project CAPITAL MAINTENANCE Details by project LARGE SYSTEM IMPROVEMENTS Details by project TELECOMMUNICATION Details by project ISOLATED GENERATION Details by project Total Distribution Dismantling Expense Additions to Property DIRECT GENERAL PP&E Details by project Dismantling Expense Additions to Property Farms, Irrigation to Transmission

242 Company Name XXXXX Schedule of Distribution Capital Expenditures $m Schedule 20-4 Page 3 of 3 Test Period Test Period Yr. 1 Yr. 2 Cross CWIP Cap Cap CWIP CWIP Cap Cap CWIP Project Description Reference Balance Expend Adds Balance Balance Expend Adds Balance SMALL NEW EXTENSIONS Details by project LARGE NEW EXTENSIONS Details by project CAPITAL MAINTENANCE Details by project LARGE SYSTEM IMPROVEMENTS Details by project TELECOMMUNICATION Details by project ISOLATED GENERATION Details by project Oracle Capital Construction Savings Total Distribution Dismantling Expense Additions to Property DIRECT GENERAL PP&E Details by project Dismantling Expense Additions to Property Farms, Irrigation to Transmission

243 Company Name XXXXX Schedule of Distribution ES&G ($000's) Schedule 20-5 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 ES&G 2 Contributions 3 4 Net ES&G S

244 Company Name XXXXX Schedule of Distribution Contributions in Aid of Construction $m Schedule 20-6 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Contributions 2 Prior Year Gross Contributions Additions to property 5 Retirements, Transfers & Disposals 6 7 Current Year Gross Contributions Accumulated Amortization 10 Prior Year Accum. Amortization Gross Amortization S Retirements, Transfers & Disposals Current Year Accum. Amortization Mid Year Net Contributions S

245 Company Name XXXXX Schedule of Distribution Computer System Costs $m Schedule 20-7 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Previous Years Balance Additions 5 Distribution Direct 6 Detail by system 7 8 Allocated Corporate Computer Systems Amortization Unamortized Computer System Costs Mid Year Unamortized Computer System Costs S

246 Company Name XXXXX Schedule of Distribution Necessary Working Capital $m Schedule 21-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Operating Expense S Income Tax Expense S Materials & Supplies Inventory S Unamortized Computer System Costs S Rate Case Expense S Goods & Services Tax S Depreciation Expense S Interest Expense S Preferred Equity S Common Equity (retained earnings component) S Common Equity (dividend component) S Necessary Working Capital S Farms, Irrigation to Transmission 15 Necessary Working Capital S Total Necessary Working Capital

247 Company Name XXXXX Schedule of Distribution Necessary Working Capital Calculation $m Schedule 21-2 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Total Cost of Sales & Operating Costs S Less: Provision for Injuries and Damages S Net O&M O&M Lag Days S Cash Operating Expenses Working Capital S Utility Income Taxes S Income Tax Lag Days S Income Tax Working Capital S Mid Year Other Inventory S Inventory Factor 13 Other Inventory Working Capital Mid Year Fuel Inventory 15 Mid Year Housing Inventory 16 Total Inventory Working Capital S Mid Year Unamortized Deferred Software Mid Year Deferred Rate Case S GST Working Capital S Return - Long Term Debt S Combined Long Term Debt Lag Days S Long Term Debt Working Capital S Return - Preferred Equity S Combined Preferred Shares Lag Days S Preferred Equity Working Capital S Return - 50% of Common Equity S Preferred Equity Lag Days S Common Equity (Dividend) Working Capital S Return - 50% of Common Equity S Depreciation Lag Days S Com. Equity (Ret. Earnings) Working Capital S Net Depreciation S Depreciation Lag Days S Depreciation Working Capital S Total Working Capital S

248 Company Name XXXXX Distribution Lead/Lag Days For Necessary Working Capital Schedule 21-3 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Operating Expense S Income Tax Expense S Depreciation Expense S Interest Expense S Preferred Equity S Common Equity (retained earnings componen S Common Equity (dividend component) S. 21-2

249 Company Name XXXXX Schedule of Distribution Net Operating Expense Lead/Lag Days $m Schedule 21-4 Page 1 of Lead/Lag Days Line Cross Actual Lag Weighted 2003/2004 No. Description Reference Revenue Days Revenue Application 1 Revenue: 2 Residential 3 Commercial 4 Industrial 5 R.E.A. 6 Company Farm 7 Street Lights 8 Industrial Facility Charges 9 Other Deferrals (not forecasted to occur in GTA period) Total Distribution Revenue S Operating Expenses S Total Net Distribution Operating Expense - -

250 Company Name XXXXX Schedule of Distribution Operating Expense Lag Days $m Schedule 21-5 Page 1 of Actual 2003 Lead/Lag Days Line Cross Operating (Lead) Lag Weighted 2003/2004 No. Description Reference Expenses Days Expense Application 1 Salary and Wages 2 Salaries and Wages (net) - 3 Payroll Deductions - 4 Overtime and Standby Transmission Access Payments to TA Taxes Other Than Income 9 Property Taxes Other General Operating Expenses 12 Travel - 13 Insurance - 14 Annual Right of Way Payments - 15 Company Benefits - 16 Parent Charges - 17 Contractor Services - 18 Information Technology - 19 Billing Services - 20 Fuel - 21 Other Total S

251 Company Name XXXXX Distribution GST Impact on Working Capital $m Schedule 21-6 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 REVENUE: 2 Total Operating Revenue S Net Receipts Applicable to GST GST Rate 5 GST Billable (a) Day Factor - Revenues S Day Factor - Remittance Lag 9 (b) GST Impact on Working Capital Increase/(Decrease) (a)*(b)/ EXPENSES: 14 Total Cost of Sales & Operating Costs S Property Taxes S Parent Charges 17 Labour & Fringe 18 Deferred Pension Write - Off Provision for Injuries and Damages S Rate Case Provision Reserve for I&D Claims S Rate Case Claims Capital Expenditures Net Costs Applicable to GST GST Rate 26 GST Refundable (c) Day Factor - Expenses (Including Capital) 29 Day Factor - Remittance Lag 30 (d) GST Impact on Working Capital Increase/(Decrease) (c)*(d)/ Net GST Impact on Working Capital Increase/(Decrease) S

252 Company Name XXXXX Schedule Of Isolated Generation Operation & Maintenance Power Production $m Schedule 22-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Hydraulic Power Generation Hydro Expenses S Other Power Generation and supply expenses Combustion Engines/Turbine Operations S Combustion Engines/Turbine Maintenance S Other Expenses 8 9 Total Less Disallowed/Non-Utility Costs Total Allocation to Business Units Transmission S Distribution S Total

253 Company Name XXXXX Schedule of Isolated Generation O&M Variance Explanations $m Schedule 22-2 Page 1 of 1 Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Actuals Actuals Forecast Yr. 1 Yr Non-Affiliate Affiliate Hydro Expenses Non-Affiliate Affiliate Combustion Engines/Turbine Operations Non-Affiliate Affiliate Combustion Engines/Turbine Maintenance

254 Company Name XXXXX Schedule Of General Operation & Maintenance By Account $m Schedule 23-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr Maintenance of General Plant 2 General Communication Equipment S Maintenance Company Owned Houses 4 Maintenance Offices, Warehouses and Yards S Total Less Disallowed/Non-Utility Costs Total Allocation to Business Units Note 1 Transmission S Distribution S Total Note 1

255 Company Name XXXXX Schedule of General O&M Variance Explanations $m Schedule 23-2 Page 1 of 1 Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Actuals Actuals Forecast Yr. 1 Yr. 2 Non-Affiliate Affiliate General Communication Equipment Non-Affiliate Affiliate Maintenance Offices, Warehouses and Yards

256 Company Name XXXXX Schedule of Common Operations By Account $m Schedule 24-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr Administrative and general salaries Office supplies and expenses Administrative expenses transferred - Credit Outside services employed Miscellaneous general expenses 5 6 Total Less Disallowed/Non-Utility Costs Total Transmission Note 3, S Distribution S Total

257 Schedule 24-2 Page 1 of 1 Company Name XXXXX Methodology of Assigning Common Operations Costs $m Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Allocation Methodology Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Number of employees training 2 Transmission 3 Distribution Analysis of Transmission versus 7 Distribution average inventory 8 Transmission 9 Distribution Average of the Percentages for 13 Revenue, Net Property, Plant 14 & Equipment and Capital 15 Expenditures 16 Transmission 17 Distribution Average number of employee 21 moves for 2002 and Transmission 23 Distribution Analysis of percentage of 27 O&M that relates to each 28 business unit 29 Transmission 30 Distribution Analysis of time spent supervising 34 O&M employees by business 35 unit 36 Transmission 37 Distribution Analysis of expenditures 42 Transmission 43 Distribution Number of application users 47 Transmission 48 Distribution Number of employees methodology 52 Transmission 53 Distribution Total Transmission Total Distribution Total

258 Company Name XXXXX Schedule of Corporate Administration & General By Account $m Schedule 25-1 Page 1 of 1 Line Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 Administrative and General expenses General Administration Expense S Administration Corporate S Administrative expenses transferred - credit S Outside services employed S Insurance premiums S Injuries and Damages S Employee pensions and benefits S Board expenses disallowed S General advertising expenses S Miscellaneous general expenses S rents S Head office rent S IT G&A expense S Maintenance of general plant S Affiliate Cost of Goods Sold 16 Total Less Disallowed/Non-Utility Costs 18 Item 1 19 Item Total Administration and General Total Labour 24 Total Other Total Administration and General Allocation to Business Units Transmission S Distribution S Total

259 Company Name XXXXX Schedule of Corporate Administration & General Account Details $m Schedule 25-2 Page 1 of 1 Acct Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Nos. Description Reference Actuals Actuals Forecast Yr. 1 Yr General Administration Expense Non Affiliate Item 1 Item 2 Affiliate Item 1 Item 2 General Administration Expense S Administration Corporate Non Affiliate Item 1 Item 2 Affiliate Item 1 Item 2 Administration Corporate S Administrative expenses transferred - credit Non Affiliate Item 1 Item 2 Affiliate Item 1 Item 2 Administrative expenses transferred - credit S Miscellaneous general expenses Non Affiliate Item 1 Item 2 Affiliate Item 1 Item 2 Miscellaneous general expenses S

260 Company Name XXXXX Schedule of Corporate Administration & General Accounts Variance Explanations $m Schedule 25-3 Page 1 of 1 Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period Account Description Actuals Actuals Forecast Yr. 1 Yr Non-Affiliate Affiliate Outside services employed Non-Affiliate Affiliate Insurance premiums Non-Affiliate Affiliate Injuries and Damages Non-Affiliate Affiliate Employee pensions and benefits Non-Affiliate Affiliate Board expenses disallowed Non-Affiliate Affiliate General advertising expenses Non-Affiliate Affiliate rents Non-Affiliate Affiliate Head office rent Non-Affiliate Affiliate IT G&A expense Non-Affiliate Affiliate Maintenance of general plant

261 Company Name XXXXX Schedule of Corporate Costs $m Schedule 25-4 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Administration and General - Labour #REF! #REF! #REF! #REF! 2 Administration and General - Fringe 3 Administration and General - Contractor Services 4 Administration and General - Other #REF! #REF! #REF! #REF! 5 #REF! #REF! #REF! #REF! 6 7 Capital - Labour 8 9 Other - Labour Total Corporate - Labour #REF! #REF! #REF! #REF!

262 Company Name XXXXX Schedule of Corporate Manpower - Full Time Equivalents (FTE's) Annual Averages Schedule 25-5 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 GTA Complement - Permanent 2 Vacancy 3 Final Adjusted Complement - Perm Vacancy Rate % % % % 5 6 GTA Complement - Temporary 7 Vacancy 8 Final Adjusted Complement - Temp Vacancy Rate (Note 1) % % % % GTA Complement - Total Vacancy Final Adjusted Complement Vacancy Rate % % % % 15 Final Adjusted Complement by Area 16 Total General and Administrative 17 Capital 18 Other Labour Cost ($000's) - Schedule #REF! #REF! #REF! #REF! Labour per FTE Note 1

263 Company Name XXXXX Allocation of Corporate Administration and General $m Schedule 25-6 Page 1 of 2 Total Dollars Allocated By Allocation Methodology Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test PeriodTest Period No. Allocation Methodology Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Number of Employees Transmission 5 Distribution 6 Total $ - $ - $ - $ - $ Transmission 10 Distribution 11 Total $ - $ - $ - $ - $ Transmission 15 Distribution 16 Total $ - $ - $ - $ - $ Transmission Distribution Total $ - $ - $ - $ - $ Analysis of Expenditures Transmission 26 Distribution 27 Total $ - $ - $ - $ - $ Transmission - 31 Distribution - 32 Total $ - $ - $ - $ - $ Transmission Distribution Total $ - $ - $ - $ - $ Occupied Square Footage 39 Transmission 40 Distribution 41 Total $ - $ - $ - $ - $ Revenue Requirement - Board Approved 44 Transmission Distribution Total $ - $ - $ - $ - $ Provision for Injuries & Damages (Note 1) 49 Transmission 50 Distribution 51 Total $ - $ - $ - $ - $ -

264 Company Name XXXXX Allocation of Corporate Administration and General $m Schedule 25-6 Page 2 of 2 Total Dollars Allocated By Allocation Methodology Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test PeriodTest Period No. Allocation Methodology Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Average of Rev/PPE/Cap Exp. 2 Transmission 3 Distribution 4 Total $ - $ - $ - $ - $ Corporate Communications 7 Transmission 8 Distribution 9 Total $ - $ - $ - $ - $ Insurable Value of Lines/ 12 Insurable Value of PP&E/ 13 Number of Employees 14 Transmission 15 Distribution 16 Total $ - $ - $ - $ - $ Number of Vehicles/ 19 Number of Employees 20 Transmission 21 Distribution 22 Total $ - $ - $ - $ - $ Revenue Requirement/ 25 Analysis of Expenditures 26 Transmission Distribution Total $ - $ - $ - $ - $ Transmission Distribution Total S $ - $ - $ - $ - $ -

265 Company Name XXXXX Communication Expenditures $m Schedule 25-7 Page 1 of 1 Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Account Community Relations 3 Advertising 4 Print Materials 5 Research 6 Other Less Disallowed/Non-Utility Costs 9 Item 1 10 Item Account Community Relations 14 Less Disallowed/Non-Utility Costs 15 Item 1 16 Item Account Community Relations 20 Less Disallowed/Non-Utility Costs 21 Item 1 22 Item Account Labour 26 Less Disallowed/Non-Utility Costs 27 Item 1 28 Item Grand Total

266 Company Name XXXXX Schedule of Corporate Computer System Costs $m Schedule 25-8 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Detail by system Note 1 2 Note 1 3 Note 1 4 Total Corporate Computer System Costs Allocation of Corporate Computer System Costs 7 8 Transmission 9 Detail by system Total Transmission Distribution 15 Detail by system Total Distribution Total Corporate Computer System Costs

267 Schedule 25-9 Page 1 of 1 Company Name XXXXX Schedule of Rate Hearing Costs - Total $'s Line Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Actuals Actuals Forecast Yr. 1 Yr. 2 1 Opening Balance 2 Forecast Provision 3 4 Cost Orders and Assessments 5 Itemize Closing Balance

268 Company Name XXXXX Schedule of Corporate General PP&E Gross Depreciation Provision $m Schedule 26-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 Corporate General PP&E 1 Land 2 Land rights 3 Structures and Improvements 4 Transportation Equipment - Category 1 5 Computer hardware & voice and data network equipment 6 Computer software and applications 7 Load settlement software applications 8 Transportation equipment, fleet vehicles 9 Tools, shop, garage, stores and laboratory equipment 10 Power operated equipment 11 Mobile communication equipment 12 Miscellaneous equipment 13 Other tangible property 14 Asset retirement costs for general plant 15 Leasehold improvements Allocated General PP&E 19 Transmission S Distribution S

269 Company Name XXXXX Schedule of Corporate General PP&E Expenditures $m Schedule 26-2 Page 1 of 3 Prior Yr. 3 Actuals Line Cross CWIP Cap Cap CWIP No. Project Description Ref. Balance Exp Adds Balance Land Land rights Structures and Improvements Transportation Equipment - Category Computer hardware & voice and data network equipment Computer software and applications Load settlement software applications Transportation equipment, fleet vehicles Tools, shop, garage, stores and laboratory equipment Power operated equipment Mobile communication equipment Miscellaneous equipment Other tangible property Asset retirement costs for general plant Leasehold improvements Dismantling Expense - 18 Additions to Property Allocated General PP&E 21 Transmission 22 Distribution 23 -

270 Company Name XXXXX Schedule of Corporate General PP&E Expenditures $m Schedule 26-2 Page 2 of 3 Prior Yr. 2 Prior Yr. 1 Actuals Forecast Line Cross CWIP Cap Cap CWIP Cap Cap CWIP No. Project Description Ref. Balance Exp Adds Balance Exp Adds Balance Land Land rights Structures and Improvements Transportation Equipment - Category Computer hardware & voice and data network equipment Computer software and applications Load settlement software applications Transportation equipment, fleet vehicles Tools, shop, garage, stores and laboratory equipment Power operated equipment Mobile communication equipment Miscellaneous equipment Other tangible property Asset retirement costs for general plant Leasehold improvements Dismantling Expense Additions to Property Allocated General PP&E 21 Transmission - 22 Distribution

271 Company Name XXXXX Schedule of Corporate General PP&E Expenditures $m Schedule 26-2 Page 3 of 3 Test Period Test Period Yr. 1 Yr. 2 Line Cross CWIP Cap Cap CWIP Cap Cap CWIP No. Project Description Ref. Balance Exp Adds Balance Exp Adds Balance Land Land rights Structures and Improvements Transportation Equipment - Category Computer hardware & voice and data network equipment Computer software and applications Load settlement software applications Transportation equipment, fleet vehicles Tools, shop, garage, stores and laboratory equipment Power operated equipment Mobile communication equipment Miscellaneous equipment Other tangible property Asset retirement costs for general plant Leasehold improvements Dismantling Expense Additions to Property Allocated General PP&E 21 Transmission 22 Distribution

272 Company Name XXXXX Assignment of General Operation and Maintenance Costs Schedule 27-1 Page 1 of 1 Cost Allocator Cost Components Pr. Yr. 2 to Pr. Yr. 1 Assignment Test Period 1 to 2 Assignment Transmission Distribution Transmission Distribution Analysis of Communication costsgeneral Communication Expenses - Transmission Telecom. General Communication Expenses - Vegreville General Communication Expenses - Grande Prairie General Communication Expenses - Peace River General Communication Expenses - Vegreville General Communication Expenses - Stettler Analysis of Expenditures Carrying Costs for Staff Housing Square Footage analysis Maintenance and Gas costs - Grande Prairie Maintenance and Gas costs - Slave Lake Offices & Warehouses Maintenance and Gas costs - Fort McMurray Warehouse Maintenance and Gas costs - Drumheller Warehouse Maintenance and Gas costs - Bonnyville Office Maintenance and Gas costs - Peace River Electricity costs - Drumheller Warehouse Electricity costs - Bonnyville office

273 Company Name XXXXX Allocation of Corporate Administration and General Schedule 27-2 Page 1 of 1 Cost Allocator Cost Components Pr. Yr. 2 to Pr. Yr. 1 Assignment Test Period 1 to 2 Assignment Transmission Distribution Transmission Distribution Number of Employees Human Resources, Payroll, Health, Safety & Environment, Parent Charges - (Courier, Office Services, Public Liability and Property Damage Insurance, Non Taxable Employee Benefits, I-Tek charges), Human Resources - Special Projects, Liabilility Portion of the Reserve for Injuries & Damages Target Balance Insurable Value of Lines Insurable Value of PP&E Number of Employees Property and Excess Liability Insurance Number of Vehicles Number of Employees Other Insurance Insurable Value of Lines Property Portion (Transmission & Distribution Lines) of the Reserve for Injuries and Damages Target Balance Number of Vehicles Auto Portion of the Reserve for Injuries & Damages Target Balance Analysis of Expenditures Accounts Payable Aircraft Charges Occupied Square Footage Revenue Requirement (Board Approved) Revenue Requirement and Analysis of Expenditures Average of the Percentages for Revenue, Net Property, Plant & Equipment and Capital Expenditures Number of Employees and Internal Review of Services Provided Head Office Rent Rate Case Provision Rate Case Provision Corporate Affairs, Regulation and Business Plans, Senior VP-Controller, Information Technology, Financial Reporting, Executive, Parent Charges (Admin. Salary, Stationery, Voice Communications, Meals, Aircraft, Legal Fees, ATCO Charges) Corporate Communications

274 Company Name XXXXX Allocation of Corporate General Property, Plant & Equipment and Computer Systems Schedule 27-3 Page 1 of 1 Cost Allocator Cost Components Pr. Yr. 2 to Pr. Yr. 1 Assignment Test Period 1 to 2 Assignment Transmission Distribution Transmission Distribution Corporate GP&E Assignment of corporate employees to business units Proportion of land, buildings & structures directly assigned to each business unit Office Furniture & Equipment and Computer Equipment Corporate Tools, Instruments & Equipment Proportion of occupied square footage for corporate areas assigned to each business unit Leasehold Improvements Computer Systems Assignment of employees to the business units Average of actual revenue, year-end Net Property, Plant & Equipment and Capital Expenditures Human Resources System (HRIS) Financial Management System (FIS), Budget Planning System (BIFF), Financial Planning and Forecasting System (ESSBASE), Financial Data Warehouse, Information Technology Infrastructure and Oracle Financials (OFIN).

275 Company Name XXXXX Assignment of Common Operations Costs Schedule 27-4 Page 1 of 1 Cost Allocator Cost Components Pr. Yr. 2 to Pr. Yr. 1 Assignment Test Period 1 to 2 Assignment Transmission Distribution Transmission Distribution Number of employees training Nisku Training Center Analysis of Transmission versus Distribution average inventory Average of the Percentages for Revenue, Net Property, Plant & Equipment and Capital Expenditures Average number of employee moves for 2002 and 2003 Analysis of percentage of O&M that relates to each business unit Materials Management Aboriginal Strategy Aboriginal Relations Operational Regulatory Support Mapping Projects Lands & Properties - Staff relocations Financial Services and HR Support VP, Engineering and Construction VP, Transmission Department Analysis of time spent supervising O&M employees by business Manager, Transmission Planning unit Analysis of expenditures Number of application users Number of employees Lands & Properties - Manager Lands & Properties - Land Acquisition Lands & Properties - Property Management Materials Management - Trucking Mapping Project System Support Operational Health and Safety

276 Company Name XXXXX Schedule of Capital Structure and Average Cost of Capital $m Schedule 28-1 Page 1 of 3 Prior Yr. 3 Actuals Line Cross Mid Year Prorated No. Description Reference Balance Ratio Rate Base Cost % Return $ 1 Long Term Debt S % % 2 Preferred Stock S % % 3 Common Stock Equity % % 4 No Cost Capital S % 5 S % - % 6 Contributions for Extensions S Mid Year Rate Base S

277 Company Name XXXXX Schedule of Capital Structure and Average Cost of Capital $m Schedule 28-1 Page 2 of 3 Prior Yr. 2 Actuals Line Cross Mid Year Prorated No. Description Reference Balance Ratio Rate Base Cost % Return $ 1 Long Term Debt S % % 2 Preferred Stock S % % 3 Common Stock Equity % % 4 No Cost Capital S % 5 S % - % 6 Contributions for Extensions S Mid Year Rate Base S Prior Yr. 1 Forecast Mid Year Prorated Balance Ratio Rate Base Cost % Return $ 8 Long Term Debt S % % 9 Preferred Stock S % % 10 Common Stock Equity % % 11 No Cost Capital S % 12 S % - % 13 Contributions for Extensions S Mid Year Rate Base S

278 Company Name XXXXX Schedule of Capital Structure and Average Cost of Capital $m Schedule 28-1 Page 3 of 3 Test Period Yr. 1 Line Cross Mid Year Prorated No. Description Reference Balance Ratio Rate Base Cost % Return $ 1 Long Term Debt S % % 2 Preferred Stock S % % 3 Common Stock Equity % % 4 No Cost Capital S % 5 S % - % Contributions for Extensions S Mid Year Rate Base S Test Period Yr. 2 Mid Year Prorated Balance Ratio Rate Base Cost % Return $ 8 Long Term Debt S % % 9 Preferred Stock S % % 10 Common Stock Equity % % 11 No Cost Capital S % 12 S % - % Contributions for Extensions S Mid Year Rate Base S

279 Company Name XXXXX Schedule of Debt Capital Employed and Embedded Cost $m Schedule 28-2 Page 1 of 5 Prior Yr. 3 Net Capital Employed Actuals Principal Underwriting Per $100 of Principal Average Line Issue Coupon Maturity Amount Discount & Total Principal Effective Outstanding Carrying Embedded No. Description Series Date Rate Date Offered Expense Amount Amount Cost Rate 31-Dec-03 Cost Cost Rate Notes Payable Total Prior Year 17 Total Mid Year Cross 20 Allocation to Business Units Reference 21 Transmission S Distribution S Total Mid Year 0 0

280 Company Name XXXXX Schedule of Debt Capital Employed and Embedded Cost $m Schedule 28-2 Page 2 of 5 Prior Yr. 2 Net Capital Employed Actuals Principal Underwriting Per $100 of Principal Average Line Issue Coupon Maturity Amount Discount & Total Principal Effective Outstanding Carrying Embedded No. Description Series Date Rate Date Offered Expense Amount Amount Cost Rate 31-Dec-03 Cost Cost Rate Notes Payable Total Prior Year 17 Total Mid Year Cross 20 Allocation to Business Units Reference 21 Transmission S Distribution S Total Mid Year 0 0

281 Company Name XXXXX Schedule of Debt Capital Employed and Embedded Cost $m Schedule 28-2 Page 3 of 5 Prior Yr. 1 Net Capital Employed Forecast Principal Underwriting Per $100 of Principal Average Line Issue Coupon Maturity Amount Discount & Total Principal Effective Outstanding Carrying Embedded No. Description Series Date Rate Date Offered Expense Amount Amount Cost Rate 31-Dec-03 Cost Cost Rate Notes Payable Total Prior Year Total Mid Year Cross 22 Allocation to Business Units Reference 23 Transmission S Distribution S Total Mid Year 0

282 Company Name XXXXX Schedule of Debt Capital Employed and Embedded Cost $m Schedule 28-2 Page 4 of 5 Test Period Net Capital Employed Yr. 1 Principal Underwriting Per $100 of Principal Average Line Issue Coupon Maturity Amount Discount & Total Principal Effective Outstanding Carrying Embedded No. Description Series Date Rate Date Offered Expense Amount Amount Cost Rate 31-Dec-03 Cost Cost Rate Notes Payable Total Prior Year Total Mid Year Cross 22 Allocation to Business Units Reference 23 Transmission S Distribution S Total Mid Year 0

283 Company Name XXXXX Schedule of Debt Capital Employed and Embedded Cost $m Schedule 28-2 Page 5 of 5 Test Period Net Capital Employed Yr. 2 Principal Underwriting Per $100 of Principal Average Line Issue Coupon Maturity Amount Discount & Total Principal Effective Outstanding Carrying Embedded No. Description Series Date Rate Date Offered Expense Amount Amount Cost Rate 31-Dec-03 Cost Cost Rate Notes Payable Total Prior Year Total Mid Year Cross 22 Allocation to Business Units Reference 23 Transmission S Distribution S Total Mid Year 0

284 Company Name XXXXX Schedule of Preferred Share Capital Employed and Embedded Cost $m Schedule 28-3 Page 1 of 5 Prior Yr. 3 Actual Calculation for Mid Year Cost Rate Stated Net Amortized Carrying Line Issue Dividend Value Proceeds Dividend Issue Cost of Embedded No. Series Date Rate of Issue Outstanding Requirement Cost Issue Cost Rate Total Prior Year 7 Total Mid Year Allocation to Business Units 12 Transmission 13 Distribution 14 Total Mid Year -

285 Company Name XXXXX Schedule of Preferred Share Capital Employed and Embedded Cost $m Schedule 28-3 Page 2 of 5 Prior Yr. 2 Actual Calculation for Mid Year Cost Rate Stated Net Amortized Carrying Line Issue Dividend Value Proceeds Dividend Issue Cost of Embedded No. Series Date Rate of Issue Outstanding Requirement Cost Issue Cost Rate Total Prior Year 7 Total Mid Year Allocation to Business Units 12 Transmission 13 Distribution 14 Total Mid Year -

286 Company Name XXXXX Schedule of Preferred Share Capital Employed and Embedded Cost $m Schedule 28-3 Page 3 of 5 Prior Yr. 1 Forecast Calculation for Mid Year Cost Rate Stated Net Amortized Carrying Line Issue Dividend Value Proceeds Dividend Issue Cost of Embedded No. Series Date Rate of Issue Outstanding Requirement Cost Issue Cost Rate Total Prior Year 7 Total Mid Year Allocation to Business Units 12 Transmission 13 Distribution 14 Total Mid Year -

287 Company Name XXXXX Schedule of Preferred Share Capital Employed and Embedded Cost $m Schedule 28-3 Page 4 of 5 Test period Yr. 1 Calculation for Mid Year Cost Rate Stated Net Amortized Carrying Line Issue Dividend Value Proceeds Dividend Issue Cost of Embedded No. Series Date Rate of Issue Outstanding Requirement Cost Issue Cost Rate Total Prior Year 7 Total Mid Year Allocation to Business Units 12 Transmission 13 Distribution 14 Total Mid Year -

288 Company Name XXXXX Schedule of Preferred Share Capital Employed and Embedded Cost $m Schedule 28-3 Page 5 of 5 Test period Yr. 2 Calculation for Mid Year Cost Rate Stated Net Amortized Carrying Line Issue Dividend Value Proceeds Dividend Issue Cost of Embedded No. Series Date Rate of Issue Outstanding Requirement Cost Issue Cost Rate Total Prior Year 7 Total Mid Year Allocation to Business Units 12 Transmission 13 Distribution 14 Total Mid Year -

289 Company Name XXXXX Schedule of Mid-Year No Cost Capital $m Schedule 29-1 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Reserve for Injuries and Damages S Future Income Taxes S Deferred Pension/Post Retirement Benefits S Total Transmission 8 Reserve for Injuries and Damages S Future Income Taxes S Deferred Pension/Post Retirement Benefits S Total S Distribution 14 Reserve for Injuries and Damages S Future Income Taxes S Deferred Pension/Post Retirement Benefits S Total S

290 Company Name XXXXX Schedule of Reserve for Injuries and Damages $m Schedule 29-2 Page 1 of 1 Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Line Actuals Actuals Forecast No. Description Trans. Dist. Total Trans. Dist. Total Trans. Dist. Total 1 Opening Balance Provision Expense Related to Premiums Fleet Insurance Premiums Charged to Various Functions Claims - - * - 9 Payments Related to Premiums Fleet Insurance Premiums Charged to Various Functions Closing Balance Mid Year Balance Test Period Test Period Yr. 1 Yr. 2 Trans. Dist. Total Trans. Dist. Total 15 Opening Balance Provision Expense Related to Premiums Fleet Insurance Premiums Charged to Various Functions Claims Payments Related to Premiums Fleet Insurance Premiums Charged to Various Functions Closing Balance Mid Year Balance

291 Company Name XXXXX Reserve for Injuries and Damages Target Balance $m Schedule 29-3 Page 1 of 1 Line Allocated to Allocated to No. Description Transmission Distribution Total 1 Liability Auto Property Reserve for Injuries and Damages Target Balance - - -

292 Company Name XXXXX Schedule of Future Income Taxes $m Schedule 29-4 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Opening Balance Current Year Future Taxes Closing Balance Mid Year Future Income Taxes S Transmission 7 Opening Balance 8 Current Year Future Taxes S Closing Balance Mid Year Future Income Taxes S Distribution 13 Opening Balance 14 Current Year Future Taxes S Closing Balance Mid Year Future Income Taxes S

293 Company Name XXXXX Schedule of Deferred Pension/Post Retirement Benefits $m Schedule 29-5 Page 1 of 1 Line Cross Prior Yr. 3 Prior Yr. 2 Prior Yr. 1 Test Period Test Period No. Description Reference Actuals Actuals Forecast Yr. 1 Yr. 2 1 Opening Balance 2 Write Off of 2001 Closing Balance Closing Balance Mid Year Deferred Pension/Post Retirement Allocation to Business Units: 7 Transmission S Distribution S Total Mid Year Deferred Pension/Post Retirement

294 Schedule 30-1 Page 1 of 1 Company Name XXXXX Schedule of Transmission Affiliate Cost of Goods Sold ($000's) Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Company Name XXXXX Charges to Affiliates 2 Service Agreement Total Company Name XXXXX Charges to Affiliates S. 5-1

295 Company Name XXXXX Schedule of Transmission Affiliate Cost of Goods Sold ($000's) Schedule 30-2 Page 1 of 1 Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Company Name XXXXX Charges to Affiliates 2 GTA Account (per Schedule 5-2) S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Company Name XXXXX Charges to Affiliates

296 Schedule 30-3 Page 1 of 1 Company Name XXXXX Schedule of Distribution Account Services and Public Information Affiliate Costs ($000's) Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to Company Name XXXXX 2 GTA Account (per Schedule 15-3) S Service Agreement S Service Agreement S Service Agreement S Service Agreement 21 Total Company Name XXXXX Charges to Affiliates

297 Company Name XXXXX Schedule of Distribution Customer Accounting Affiliate Costs ($000's) Schedule 30-4 Page 1 of 1 Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to Company Name XXXXX 2 GTA Account (Per Schedule 15-5) S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Affiliate Charges to Company Name XXXXX

298 Company Name XXXXX Schedule of Distribution Affiliate Costs ($000's) Schedule 30-5 Page 1 of 2 Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to Company Name XXXXX 2 GTA Account (per Schedule 15-6) S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement 29 30

299 Company Name XXXXX Schedule of Distribution Affiliate Costs ($000's) Schedule 30-5 Page 2 of 2 Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Company Name XXXXX Charges to Affiliates

300 Schedule 30-6 Page 1 of 1 Company Name XXXXX Schedule of Isolated O&M Affiliate Costs ($000's) Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to Company Name XXXXX 2 GTA Account (per Schedule 22-1) S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Affiliate Charges to Company Name XXXXX TOTAL ISOLATED O&M AFFILIATE COSTS

301 Schedule 30-7 Page 1 of 1 Company Name XXXXX Schedule of General O&M Affiliate Costs ($000's) Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to ATCO Electric 2 GTA Account (per Schedule 23-1) S Service Agreement Total Affiliate Charges to ATCO Electric TOTAL GENERAL O&M AFFILIATE COSTS

302 Schedule 30-8 Page 1 of 1 Company Name XXXXX Schedule of Common Operations O&M Affiliate Costs ($000's) Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast 1 Affiliate Charges to ATCO Electric 2 GTA Account (per Schedule 24-1) S Service Agreement S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Affiliate Charges to Company Name XXXXX TOTAL COMMON OPERATIONS AFFILIATE COSTS

303 Company Name XXXXX Schedule of Corporate Affiliate Costs ($000's) Schedule 30-9 Page 1 of 1 Line Cross No. Service Affiliate Reference Actuals Actuals Forecast Forecast Company Name XXXXX Charges to Affiliates 1 GTA Account (per Schedule 25-2) S Service Agreement S Service Agreement S Service Agreement S Service Agreement Total Company Name XXXXX Charges to Affiliates TOTAL CORPORATE AFFILIATE OPERATING COSTS