Section 254 - Reserve for Depreciation of Utility Plant in ServiceA. This account shall be credited with the following: (1) Amounts charged to account 403, Depreciation Expense, to account 415, Income from Merchandising, Jobbing, and Contract Work, or to clearing accounts for current depreciation expense.(2) Amounts charged to account 435, Miscellaneous Debits to Surplus, for past accrued depreciation.(3) Amounts of depreciation applicable to utility properties acquired as operating units or systems.(4) Amounts charged to account 182, Extraordinary Property Losses, when authorized by the Department.(5) Amounts of depreciation applicable to utility plant donated to the utility.B. At the time of retirement of depreciable utility plant in service, this account shall be charged with the book cost of the property retired and the cost of removal, and shall be credited with the salvage value and any other amounts recovered, such as insurance. When retirements, cost of removal and salvage are entered originally in retirement work orders, the net total of such work orders may be included in a separate subaccount hereunder. Upon completion of the work order, the proper distribution to subdivisions of this account shall be made as provided in the following paragraph.C. For general ledger and balance sheet purposes, this account shall be regarded and treated as a single composite provision for depreciation. For purposes of analysis, however, each utility shall maintain subsidiary records in which this account is segregated according to the utility department to which applicable. These subsidiary records shall reflect the current credits and debits to this account in sufficient detail to show separately (a) the amount of accrual for depreciation, (b) the book cost of property retired, (c) cost of removal, (d) salvage, and (e) other items, including recoveries from insurance.D. When transfers of plant are made from one utility plant account to another, or from or to nonutility property, the accounting shall be as provided in gas plant instruction 11.E. The utility is restricted in its use of this account to the purposes set forth above. It shall not transfer any portion of this account to surplus or make any other use thereof without authorization by the Department.