Section 407-68-1 - Definitions1. Definitions. A. Service Life - The average length of time a unit of equipment will remain in service taking into account factors such as the effect of normal wear and tear, economic and technological obsolescence and public requirements.B. Net Salvage Price - The price that the sale of a unit of equipment will bring upon the end of its useful service life to a utility, less the estimated cost of removal involved in retiring such property.C. Depreciation Rate - This rate is derived by using the following formula: Annual Depreciation Rate = 100% - Net Salvage Price as percent of original cost/Service life (in years)
65-407 C.M.R. ch. 68, § 1