Utah Department of Administrative Services Division of Administrative Rules

Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since April 1, 2014, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.


R746. Public Service Commission, Administration.

Rule R746-332. Depreciation Rates for Water Utilities.

As in effect on April 1, 2014

Table of Contents

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          Average  Net       Depreciation
     Account                  Service  Salvage   Rate
     Number                   Life --  Percent -- Percent
                              Years

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

                                                            

KEY

public utilities, water, rules and procedures

Date of Enactment or Last Substantive Amendment

1987

Notice of Continuation

March 28, 2013

Authorizing, Implemented, or Interpreted Law

54-4-24


Additional Information

Contact

For questions regarding the content or application of rules under Title R746, please contact the promulgating agency (Public Service Commission, Administration). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.