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The Depreciation Study

November 17, 2017

A depreciation study examines the age, mortality, and salvage characteristics of a utility’s plant to formulate appropriate depreciation rates. Our team is excited to announce that we now offer these studies to our electric cooperative clients.

Regulated cooperatives typically establish current depreciation rates by filing a depreciation study during a rate adjustment application. Self-regulated cooperatives often adopt depreciation rates based on prescribed RUS guidelines. Prescribed rates may give managers the false assurance of having made appropriate choices when, in reality, to ensure that the true cost of depreciation is being recovered, a cooperative’s plant history must be analyzed.

Our team can help ensure that the true cost of depreciation is being recovered – no more, no less.

For more information about how our depreciation study can help your utility, please contact Lance Schafer at 859-721-2853 or email schaferl@powersystem.org

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