Utah Admin. Code 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 Last Change: 1987

Notice of Continuation: February 3, 2023

Authorizing, and Implemented or Interpreted Law: 54-4-24