Florida Administrative Code › 25 - PUBLIC SERVICE COMMISSION › 25 - Departmental › Chapter 25-7 - GAS SERVICE BY GAS PUBLIC UTILITIES › Part III - GENERAL MANAGEMENT REQUIREMENTS › Section 25-7.045 - Depreciation

Current through Reg. 50, No. 138; July 16, 2024
(1) For the purpose of this rule, the
				  following definitions shall apply:
(a)
				  Category or Category of Depreciable Plant - A grouping of plant for which a
				  depreciation rate is prescribed. At a minimum it shall include each plant
				  account prescribed in Rule
				   25-7.046, F.A.C.
(b) Embedded Vintage - A vintage of plant in
				  service as of the date of study or implementation of proposed rates.
(c) Mortality Data - Historical data by study
				  category showing plant balances, additions, adjustments and retirements, used
				  in analyses for life indications or for calculations of realized life. This is
				  aged data in accord with the following:
1. The
				  number of plant items or equivalent units (usually expressed in dollars) added
				  each calendar year.
2. The number
				  of plant items retired (usually expressed in dollars) each year and the
				  distribution by years of placing of such retirements.
3. The net increase or decrease resulting
				  from purchases, sales or adjustments and the distribution by years of placing
				  of such amounts.
4. The number that
				  remains in service (usually expressed in dollars) at the end of each year and
				  the distribution by years of placing of such amounts.
(d) Net Book Value - The book cost of an
				  asset or group of assets minus the accumulated depreciation or amortization
				  reserve associated with those assets.
(e) Remaining Life Techique - The method of
				  calculating a depreciation rate based on the unrecovered plant balance, the
				  average future net salvage and the average remaining life. The formula is:
Remaining Life Rate = 100% - Reserve % - Average Future Net
					 Salvage %
Average Remaining Life in Years
(f) Reserve (Accumulated Depreciation) - The
				  amount of depreciation/amortization expense, salvage, cost of removal,
				  adjustments, transfers, and reclassifications accumulated to date.
(g) Reserve Data - Historical data by study
				  category showing reserve balances, debits and credits, such as booked
				  depreciation expense, salvage and cost of removal, and adjustments to the
				  reserve utilized in monitoring reserve activity and position.
(h) Reserve Deficiency - An inadequacy in the
				  reserve of a category as evidenced by a comparison of that reserve indicated as
				  necessary under current projections of life and salvage with that reserve
				  historically accrued. The latter figure may be available from the utility's
				  records or may require retrospective calculation.
(i) Reserve Surplus - An excess in the
				  reserve of a category as evidenced by a comparison of that reserve indicated as
				  necessary under current projections of life and salvage with that reserve
				  historically accrued. The latter figure may be available from the utility's
				  records or may require retrospective calculation.
(j) Salvage Data - Historical data by study
				  category showing bookings of retirements, gross salvage and cost of removal
				  used in analysis of trends in gross salvage and cost of removal or for
				  calculations of realized salvage.
(k) Theoretical Reserve or Prospective
				  Theoretical Reserve - A calculated reserve based on components of the proposed
				  rate using the formula:
Theoretical Reserve = Book Investment - Future Accruals -
					 Future Net Salvage.
(l)
				  Vintage - The year of placement of a group of plant items or investment under
				  study.
(m) Whole Life Techique -
				  The method of calculating a depreciation rate based on the whole life (average
				  service life) and the average net salvage. Both life and salvage components are
				  the estimated or calculated composite of realized experience and expected
				  activity. The formula is:
Whole Life Rate = 100% - Average Net Salvage %
Average Service Life in Years