R746-332-1. Depreciation Rates for Water Utilities

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