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(3) The original cost of the gross plant additions, less of the Company in these accounts shall not exceed in any retirements, installed in the preceding calendar year. calendar year three per cent(3%)of the annual gross revenue,including contributions, gratuities and donations (4) The original cost of the gross plant additions, less not to exceed three-tenths of one per cent(3/10 of 1%) retirements, installed during the current calendar year of the annual gross revenue. averaged on a monthly basis. (6) All taxes and governmental impositions of every M. At the end of each five-year interval the construction cost nature actually paid by the Company directly to govern- trends experienced by the Company since the adoption of this ordi. mental tax collecting agencies or accrued in accordance nance shall be compared with the appropriate Handy-Whitman Index. with general acceptable accounting principles. Any tax If,after such comparison,the difference between the Handy-Whitman other than an ad valorem tax which may hereafter be law- costs and the Company's experience is 15%, or less, of the total fully authorized and thereafter separately imposed by any "reproduction cost new" plant,the Ilandy-Whitman Index costs will municipality shall be added only to the bills of the cus- be used for the succeeding five years. If the difference exceeds tourers within such municipality. 15 5, the parties agree to adjust the Handy-Whitman costs to reflect Company experience. (i) An annual allowance,beginning January 1, 1963, for depreciation of depreciable property owned by the In the event the Ilandy-Whitman Index of Public Utility Construe- Company and used and useful in rendering gas service in tian Costs (North Central Division), or its successor, is no longer the suburban area for each calendar year during the term available, another similar Index mutually agreeable to the Company of this ordinance of an amount designed to recover the and the Suburban Hate Authority will be used. original cost of such depreciable property over the esti- mated average service-life of each group of property on a (g). As used in this ordinance, '-Actual Net Earnings" of the straight-line basis, computed L,v application of the annual Company shall consist of the balance remuining after deducting depreciation rates, now used by the Company in recording from the gross revenues of the Company from the manufacture, pur- depreciation on the books of the Company to the original chase, mixture, transportation, distribution and sale of gas sold in cost of depreciable property included in each of the major the said suburban area during the calendar year of 1963, and each property classifications and properly chargeable to depre- 1 calendar vear thereafter, the following operating and maintenance ciation expenses. Provided,however,such annual depre- cosls and expenses connected with the manufacture, purchase, ciation rates may be revised periodically so as to reflect mixture, transportation,distribution and sale of gas sold in the said all factors bearing on the amount designed to recover the suburban area during such calendar periods: original cost of such depreciable property over its esti- mated average service-life: (1) Production Expenses. including cost of purchased gas. (8) All other actual and proper classes of maintenance and operating expenses of the Company; (2) Distribution and Utilization Expenses; (9) An item to cover nixes,depreciation and return on (3) Customers'Accounting and Collecting Expenses; any plant not included in the suburban area Allowable [late • Base. but which is used and useful in rendering public (4) Sales Promotion Expenses; service therein. A credit item (deduction from expenses)to cover taxes.depreciation and return on any plant included (5) An item to cover"Administrative and General Ex- in the suburban area allowable rate base,but which is penses" which shall be the just, fair and reasonable cost properly allocable to rendering service outside the suburban to the Company of nil of the sub-accounts that are includ- area,subject,however,to the provisions of Section 1. ed in such Administrative and General Expenses,but the aggregate of"Administrative Salaries" and "General In- (10) Annual allowance for amortization of extraordinary cidental Expenses"classified as in the present practice 10 11