Section 408.377 - Allowance credits for betterments to facility1. The cost of any voluntary betterment to a facility which is replaced or adjusted and the net salvage value of any materials recovered must be credited to the project.2. The accrued depreciation of the replacement of a utility's facility including a building, pumping station, filtration plant, power plant, substation or any other similar operational unit, must be credited to the project. Credit for accrued depreciation is not required for the replacement of a part of a utility's service, distribution or transmission lines.3. Credit for a betterment is not required for an addition or improvement which:(a) Is required by the project.(b) Replaces a device or material which equals the requirements of the device or material which is replaced.(c) Replaces a device or material which is not regularly manufactured with a device or material of the next highest grade or size available.(e) Is required by the design practices regularly used by the utility in its work and which provides a direct benefit to the project.4. Credit for accrued depreciation for a project is not required for an operational unit of a utility, including a building, pumping station, filtration plant, power plant and substation, which is rehabilitated or moved to accommodate a project.5. The allowance of credits required by the provisions of this section may not exceed the cost of the additions or improvements required by the project.6. As used in this section, "accrued depreciation" means an amount equal to the ratio between the actual length of service and the total life expectancy applied to the original cost of the operational unit.Nev. Admin. Code § 408.377
Added to NAC by Dep't of Transportation, eff. 1-6-95