Definition of terms.
Section 5
SEC. 5. Definition of terms.—For purposes of this Act, the following terms are defined as follows: "Cost" means the amount of money actually paid for property or services or their cash value at the time of the transaction. "Units of property" means those items of property which when retired, with or without replacement, are accounted for by crediting the book cost thereof to the property account in which included. "Straight-line method" of depreciation means the recording of depreciation of depreciable property in equal amounts monthly over its estimated service life. "Rate base" means the money honestly and prudently invested in the used and useful property and equipment less accrued depreciation plus one-twelfth of the annual cash operating expenses as working capital.