(a) Transfers of property between operating departments for each of which this commission has prescribed a system of accounts shall be recorded by transferring the book cost (see § 196.1, subd. [a][4]) thereof from operating property of one department to that of the other, and likewise any related amounts carried in the depreciation and/or amortization reserves of the department in which such property had previously been carried.

(b) Transfers from Operating Property—Electric or Operating Property—General to operating departments of the municipal electric utility not subject to the jurisdiction of this commission, or to the operating or lessor municipality, or to non-operating property accounts, shall be treated as retirements (see § 197.23) and the amount credited to account 261, Depreciation Reserves, shall be the current fair market value of the property transferred, except that land, with or without improvements, transferred to account 112, Non-operating Property, to be held for sale, shall be accounted for as if carried in Operating Property—Electric or Operating Property—General, until sold.

(c) Property transferred from operating departments not subject to the jurisdiction of this commission or from non-operating property accounts or from the operating or lessor municipality, to Operating Property—Electric or Operating Property—General, shall be charged to such account at the original cost plus net carrying charges, if any, for the period during which it has been held for future use in electric service, with credits to the appropriate accounts for the accrued depreciation and/or amortization to date of transfer computed by the straight-line method. In such cases, the utility shall submit to the commission for approval the proposed journal entries to record the changes in property accounts and in reserves involved, together with full supporting details.