Sec.  32.1438   Deferred maintenance and retirements.

   (a) This account shall include such items as:

   (1) The unprovided-for loss in service value of telecommunications plant for
   extraordinary nonrecurring retirement not considered in depreciation and the
   cost of extensive replacements of plant normally chargeable to the current
   period Plant Specific Operations Expense accounts. These charges shall be
   included in this account only upon direction or approval from this
   Commission. However, the company's application to this Commission for such
   approval shall give full particulars concerning the property retired, the
   extensive replacements, the amount chargeable to operating expenses and the
   period over which in its judgment the amount of such charges should be
   distributed.

   (2) Unaudited amounts and other debit balances in suspense that cannot be
   cleared and disposed of until additional information is received; the
   amount, pending determination of loss, of funds on deposit with banks which
   have failed; revenue, expense, and income items held in suspense; amounts
   paid for options pending final disposition.

   (3) Cost of preliminary surveys, plans, investigation, etc., made for
   construction projects under contemplation. If the projects are carried out,
   the preliminary costs shall be included in the cost of the plant
   constructed. If the projects are abandoned, the preliminary costs shall be
   charged to Account 7300, Nonoperating income and expense.

   (4) Cost of evaluations, inventories, and appraisals taken in connection
   with the acquisition or sale of property. If the property is subsequently
   acquired, the preliminary costs shall be accounted for as a part of the cost
   of acquisition, or if it is sold, such costs shall be deducted from the sale
   price in accounting for the property sold. If purchases or sales are
   abandoned, the preliminary costs included herein (including options paid, if
   any) shall be charged to Account 7300.

   (b) Charges provided for in paragraph (a) of this section shall be included
   in this account only upon direction or approval from this Commission.
   However, the company's application to this Commission for such approval
   shall give full particulars concerning the property retired, the extensive
   replacements, the amount chargeable to operating expenses and the period
   over which in its judgment the amount of such charges should be distributed.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5683 , Feb. 6, 2002]