- Depreciation Rate Study - Generation Facilities
We prepared a comprehensive depreciation rate study for Western Farmers Electric Cooperative (WFEC) for all generation facilities in accordance with Rural Utility Service (RUS) requirements and procedures. An engineering assessment was completed in conjunction with a useful life assessment of WFEC’s generation assets.
The study included the physical observation of major generation equipment components and systems; interviews with plant management to determine the current condition of major equipment and systems and the present maintenance and operating policies; review of outage reports and other evidence of progressive application of up-to-date technologies and procedures; analysis of depreciation rates and performance of actuarial analysis of the service lives; and calculation of proposed depreciation rates for plant assets by RUS account code.
A report was provided to WFEC and RUS, and WFEC incorporated the depreciation rates from the Study into its accounting system. Our team supported WFEC in answering questions regarding the proposed depreciation rates from RUS. We had prepared a similar study for WFEC five years before this study, and initiated an update to the study in October 2016.
- Property inspections
- Management interviews
- Data review
- Analysis and development of depreciation rates
- Study report and presentation