- Depreciation Rate Study - Generation, Transmission & General Plant Assets
Big Rivers Electric Corp. hired our team to prepare a comprehensive depreciation rate study. The study was completed for generation, transmission and general plant assets, in accordance with Rural Utilities Service (RUS) requirements and procedures. An engineering assessment was completed in conjunction with a useful life assessment of the assets. The scope of the study consisted of the physical observation of major plant equipment components and systems; interviews with management aimed at determining 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 analyses of the asset service lives; and calculation of proposed depreciation rates for plant assets by RUS account code.
The study was filed with the Kentucky Public Service Commission (KPSC). Big Rivers incorporated the depreciation rates contained in the study into their accounting system. We provided support in answering questions from RUS and the KPSC. This included the preparation of testimony and responses to data requests from various parties interested in the rate case proceeding. All of the depreciation rates in the tudy were accepted by the RUS and approved by the Kentucky Public Service Commission.
Subsequent to the study, Burns & McDonnell completed an update and summarized the results in a new report. This study update was approved by RUS and the Kentucky Public Service Commission. Our team also prepared testimony and responses to data request in the rate case proceeding before the commission.
- Property inspections
- Management interviews
- Data review
- Analysis and development of depreciation rates
- Testimony provision and support