- Depreciation Rate Study - Analysis Update
Our team assisted the Kansas City, Kansas, Board of Public Utilities (BPU) with professional consulting services to update the analysis of electric system depreciation expense. An e-mail survey to several electric utility systems requested data for the utility’s beginning and end of year plant-in-service balances, depreciation expenses and depreciation rates, by Federal Energy Regulatory Commission (FERC) Uniform System of Accounts.
An initial comparison of composite average annual depreciation rates for various utilities was developed, followed by a more in-depth analysis of depreciation rates by FERC account. A detailed table comparing depreciation rates and useful service lives for each FERC plant account, based on the survey data, was also included in the study. We also prepared recommended depreciation rate changes for BPU’s consideration and implementation.