(1) Accounts or these accounts means the accounts of this system of accounts.

(2) Actually issued as applied to securities means those which have been sold to bona fide purchasers for a valuable consideration (including those issued in exchange for other securities or other property) so that the purchasers secured them free from control by the issuing utility.

(3) Actually outstanding as applied to securities means those which have been actually issued and are neither retired nor held by or for the utility, and also securities held by trustees for sinking or other funds.

(4) Book cost means the amount at which property is recorded on the books of the utility without deduction of related reserve or reserves.

(5) Book liability means the amount at which a liability is recorded on the books of the utility.

(6) Book value when applied to operating property means the book cost (see paragraph [4] of this subdivision) less related depreciation and amortization reserves. When applied to other property, the term means the book cost less reserves for loss in value.

(7) Commission or the commission means the Public Service Commission of the State of New York.

(8) Cost means the amount of money actually paid for property or services, or the current money value of any consideration other than money.

(9) Cost of removal means the cost of demolishing, dismantling, tearing down, or otherwise removing operating property, including the cost of transportation and handling incident thereto.

(10) Date of installation means the date at which operating property is ready for service.

(11) Date of retirement means the date at which operating property is withdrawn from service.

(12) Debt expense means all expense in connection with the issuance and sale of evidences of debt, such as fees for drafting legal papers in connection therewith; 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; costs of special elections called to pass on the question of issuance of debt; and other like costs.

(13) Depreciation as applied to depreciable operating property means the loss (or gain) in service value (see paragraph [39] of this subdivision) not restored by current repairs, incurred in connection with the consumption or prospective retirement of operating property from causes inherent in current operations against which the utility is not protected by insurance, and the effect of which can be forecast with a reasonable approach to accuracy. Among the causes to be given consideration are wear and tear, decay, action of the elements, obsolescence, changes in the art, inadequacy, changes in demand, and requirements of public authority.

(14) Discount as applied to debt of the utility means the excess of the par value plus interest accrued at the date of the sale over the current money value of the consideration received.

(15) Distribution system.

(See section 197.35 of this Title.)

(16) Electric operations or electric service means the service of supplying electricity, together with the generation, transmission, and distribution thereof, when such service is in whole or in part subject to the jurisdiction of the commission; and services incidental thereto.

(17) Electric plant.

(See Abstracts from Law, section 195.2 of this Title.)

(18) Group plan as applied to depreciation accounting means the plan under which depreciation charges are accrued upon the book cost of all depreciable property, regardless of the age of the particular items of that property, and upon the retirement of any depreciable property its entire service value is charged to the depreciation reserves whether or not the particular item has attained the average service life.

(19) Lessor municipality means a municipality owning, either solely or jointly, but not operating a municipal electric utility (see paragraph [23] of this subdivision).

(20) Long term debt means obligations having a life of more than one year from date of creation of assumption, and all bonds.

(21) Minor items as applied to depreciable electric or general operating property means any part or element which is not designated as a unit of property (see paragraph [42] of this subdivision).

(22) Municipality means a county, city, village, town, or lighting district organized as provided by a general or a special legislative act.

(23) Municipal electric utility means an electric plant (see Abstracts from Law, section 195.2 of this Title) operated and/or owned by a municipality or municipalities, which provides electric service (see paragraph [16] of this subdivision) to others than the government of such municipality or municipalities.

(24) Net salvage value means the salvage value (see paragraph [37] of this subdivision) of property retired after deducting the cost of removal.

(25) Nominally issued as applied to securities means those which have been signed, certified, or otherwise executed, and placed with the proper officer for sale, or pledged, but which have neither been sold nor issued direct to trustees of sinking funds in accordance with mortgage requirements.

(26) Nominally outstanding as applied to securities means those which, after being actually issued, have been reacquired by or for the utility but not retired, except those held for sinking or other funds.

(27) Non-operating property means all physical property owned by the municipality and definitely identified with and in the custody of or under the supervision of persons responsible for the operation of the municipal electric utility, which property is not used in electric operations or other operations under the jurisdiction of the commission but which it is not practicable to exclude from the books and financial statements of the municipal electric utility.

(28) Operating municipality means a municipality operating either solely or jointly a municipal electric utility (see paragraph [23] of this subdivision).

(29) Operating property means the property, both tangible and intangible, which is used (see paragraph [43] of this subdivision) for the purposes of supplying electric service or other service subject to the jurisdiction of the commission, and which has an expectation of life in service of more than one year from date of installation.

(30) Operating property—electric means the operating property used (see paragraph [43] of this subdivision) by the municipal electric utility in the conduct of its electric operations (see paragraph [16] of this subdivision) or leased to others for such operations.

(31) Operating property—general means the operating property used (see paragraph [43] of this subdivision) in operations which can not be definitely assigned to a particular department or class of operations subject to the jurisdiction of the commission. If the utility conducts more than one class of operations, the property used in common by two or more departments subject to the jurisdiction of the commission may be classified as Operating Property— General.

(32) Operating property—other operations means the operating property used (see paragraph [43] of this subdivision) by the utility in the conduct of operations other than electric operations (see paragraph [16] of this subdivision) which are subject to the jurisdiction of the commission.

(33) Original cost means the actual money cost (or the current money value of any consideration other than money) of property at the time when it was first devoted to the public service, whether by the accounting utility or by a predecessor public utility.

(34) Premium as applied to securities of the utility means the excess of the current money value of the consideration received at their sale over the sum of their par value and interest accrued at the date of their sale.

(35) Property retired as applied to operating property means property which has worn out, been removed, sold, abandoned, destroyed, or has become unserviceable, or unnecessary, or has been otherwise withdrawn from service.

(36) Replacing or replacement, when not otherwise indicated in the context means the acquisition, construction, or installation of property in place of property retired, together with the removal of the property retired.

(37) Salvage value means the amount received for property retired, if sold, less any expenses incurred in connection with such sale or in preparing the property for sale; or, if retained, the amount at which the material recovered is chargeable to account 123, Materials and Supplies, or other appropriate account.

(38) Service life means the period between the date of installation (see paragraph [10] of this subdivision) of operating property and the date of its retirement. (See paragraph [11] of this subdivision.)

(39) Service value means the difference between the book cost (see paragraph [4] of this subdivision) and the net salvage value (see paragraph [24] of this subdivision) of operating property.

(40) Straight-line method as applied to depreciation accounting means the plan under which the service value (see paragraph [39] of this subdivision) of property is charged to operating expense or other accounts and credited to the depreciation reserves through equal monthly charges as nearly as may be during its service life.

(41) Transmission system.

(See paragraph [37] of this subdivision.)

(42) Units of property means those items of operating property which, when retired and replaced, are accounted for by crediting the book cost thereof to the operating property account in which it is included and charging to operating property the cost of the superseding property. (See section 197.23[b][1] of this Title.)

(43) Used as applied to operating property means actually and necessarily in current service or ready for and reasonably required to be currently held for future service.

(44) Utility or the utility means the accounting municipal electric utility as defined in paragraph (23) of this subdivision.