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Utah Administrative Code (Current through November 1, 2019) |
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R746. Public Service Commission, Administration |
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R746-332. Depreciation Rates for Water Utilities |
| R746-332-1. Depreciation Rates for Water Utilities |
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Latest version.
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A. Water utilities operating under the jurisdiction of the Public Service Commission of Utah shall be allowed to recover in rates charged consumers, the cost of the investment in depreciable utility plant, less established net salvage, over the useful life of the plant. B. The base on which depreciation expense is calculated shall be the original cost of the depreciable property to the person or entity who first devotes the property to public service, and that the method to be used in calculating depreciation expense for book and rate making purposes shall be the straight line average service life method. C. Effective with each utility's next general rate case, each water utility operating in Utah shall not depreciate utility plant faster than allowed by the following rates, except where the Commission has approved depreciation rates based on shorter plant lives as shown by a competent depreciation study: TABLE NARUC Account Average Net Depreciation Account Service Salvage Rate Number Life -- Percent -- Percent Years 304 Structures and 35 2.9 Improvements 305 Collecting and 50 2.0 Impounding reservoirs 306 Lake, River and 35 2.9 Other Intakes 307 Wells and 25 4.0 Springs 308 Infiltration 25 4.0 Galleries and Tunnels 309 Supply Mains 50 2.0 311 Pumping 20 5.0 Equipment 320 Water 20 5.0 Treatment Equipment 330 Distribution 30 3.3 Reservoirs and Standpipes 331 Transmission and 50 2.0 Distribution Mains 333 Services 30 3.3 334 Meters and Meter 35 10 2.6 Installations 335 Hydrants 40 5 2.4 340 Office 20 5 4.8 Furniture and Equipment 341 Transportation 7 10 12.9 Equipment 342 Stores 20 5.0 Equipment 343 Tools, Shop and 15 5 6.3 Garage Equipment 344 Laboratory 15 6.7 Equipment 345 Power 10 10 9.0 Operated Equipment 346 Communication 10 10 9.0 Equipment |