(a) Provision is made in the various operating expense accounts for rents payable for items of property or equipment other than those constituting a distinct operating unit of which the utility has exclusive possession. By exclusive possession is meant occupancy when the lessor furnishes no building or janitor service. (See account 433, Rent for Lease of Electric Plant—Dr.) Taxes paid by the lessee upon leased property shall be included in the tax account of the lessee.

(b) When a portion of property or equipment rented from others for use in connection with electric operations is subleased, the revenue derived from such subleasing shall be credited to account 621, Rent from Electric Property.

(c) Rents receivable from utility-owned electric property constituting a distinct operating unit, in the exclusive possession of the lessee for electric operations, shall be credited to account 431, Rent from Lease of Electric Plant—Cr. Other rentals from utility-owned electric property shall be credited to account 621, Rent from Electric Property. All expenditures, together with provision for depreciation, applicable to property the rentals from which are included in account 431, Rent from Lease of Electric Plant—Cr., shall be charged to account 432, Deductions from Rent Revenues—Electric.

(d) When the lessee is responsible for the currently accruing depreciation upon leased property not carried in its accounts (see § 197.17), it shall charge such depreciation to account 433, Rent for Lease of Electric Plant—Dr., with concurrent credits to account 267, Miscellaneous Reserves. Replacements of such property shall be charged to such reserve.