- Depreciation Rate Study - Transmission & Distribution Assets
Our team prepared a comprehensive depreciation rate study for all transmission, distribution and general facilities accounted for in accordance with Rural Electric Service (RUS) requirements and procedures. The work included an engineering assessment in conjunction with a useful life assessment of Bandera’s transmission and distribution assets.
The scope included the physical observation of major transmission and distribution facilities, components and systems; interviews with management and staff 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 analysis of the service lives; and calculation of proposed depreciation rates for transmission, distribution and general assets by account code.
The depreciation rates contained in the completed study were implemented into Bandera's accounting system. We provided support in answering questions regarding the proposed depreciation rates from the Bandera board.
- Property inspections
- Management interviews
- Data review
- Analysis and development of depreciation rates
- Study report and presentation