(a) When steam plant consisting of one or more retirement units is transferred from one account for steam plant to another, from one utility department to another, such as from steam to electric, from one cost area to another, between accounts 101, Steam Plant in Service, 102, Steam Plant Leased to Others, 104, Steam Plant Held for Future Use, or between corresponding accounts for common utility plant, the transfer shall be recorded by transferring the book cost thereof from one account, department, or cost area to the other. In the case of all transfers between accounts 101, 102 and 104, and corresponding accounts for common utility plant and from one utility department to another, and in case of transfers of substantial amounts in any year from one primary account for steam or common plant to another, or from one accounting division to another, any related amounts carried in the depreciation reserves shall, not later than the end of the year, be transferred in accordance with the segregation of such reserves. When property (except customers' meters) in connection with which installation costs have been incurred is physically transferred, it shall be accounted for as provided in steam plant instruction section 463.11.

(b) When property is transferred from the steam plant accounts to account 110, Other Physical Property, the transfer shall be accomplished by crediting the steam plant accounts and charging the depreciation reserve with the book cost of the item transferred; the depreciation reserve shall then be credited, as the estimated salvage, and account 110, Other Physical Property, concurrently charged with the market value of the property transferred. If the property is sold within a relatively short time, a debit or credit shall be made to the depreciation reserve to adjust the estimated salvage to the amount actually realized.