§ 73.2. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

   Depreciation accrual—The depreciation expense amount, excluding any net salvage allowance amount not already a component of the depreciation formula, which is debited to the income statement and credited to the depreciation reserve account.

   Depreciation parameter—A variable used in the depreciation rate formula or used to develop a variable of the depreciation rate formula.

   Depreciation rate—The value expressed as a percent applied to utility plant investment to develop annual depreciation accruals.

   Major—Each project with a cost in excess of 1% of the undepreciated original cost of the utility’s total plant in service or $10 million, whichever is less.

   Net salvage—The gross salvage less the cost of removal.

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