Utah Admin. Code 746-332-1

Current through Bulletin 2024-23, December 1, 2024

Section 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 Number	Account	Average Service Life -Years	Net Salvage Percent	Depreciation Rate - Percent
304	Structures and Improvements	35		2.9
305	Collecting and Impounding reservoirs	50		2.0
306	Lake, River and Other Intakes	35		2.9
307	Wells and Springs	25		4.0
308	Infiltration Galleries and Tunnels	25		4.0
309	Supply Mains	50		2.0
311	Pumping Equipment	20		5.0
320	Water Treatment Equipment	20		5.0
330	Distribution Reservoirs and Standpipes	30		3.3
331	Transmission and DistributionMains	50		2.0
333	Services	30		3.3
334	Meters and Meter Installations	35	10	2.6
335	Hydrants	40	5	2.4
340	Office Furniture and Equipment	20	5	4.8
341	Transportation Equipment	7	10	12.9
342	Stores Equipment	20		5.0
343	Tools, Shop and Garage Equipment	15	5	6.3
344	Laboratory Equipment	15		6.7
345	Power Operated Equipment	10	10	9.0
346	Communication Equipment	10	10	9.0

Utah Admin. Code R746-332-1