(a) When property is transferred from one account for electric plant to another, from one utility department to another, such as from electric to gas, or, in the case of Class C utilities, to or from accounts 1101, Electric Plant in Service, 1102, Electric Plant Leased to Others, and 1104, Electric Plant Held for Future Use, the transfer shall be recorded by transferring the book cost thereof from the one account, department or division to the other, and likewise any related amounts carried in the depreciation and amortization reserves and other accounts shall be transferred in accordance with the segregation of such reserves and other accounts. When property (except customers' meters and line transformers) in connection with which installation costs have been incurred is physically transferred it shall be accounted for as provided in electric plant instruction section 182.2.

(b) When property subject to depreciation is transferred from the electric plant accounts to account 1110, Other Physical Property, the transfer shall be accomplished by crediting the electric plant accounts and charging the depreciation reserve with the book cost of the item transferred; the depreciation reserve shall then be credited and account 1110, Other Physical Property, charged with the fair value of the property transferred.