New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter II - ELECTRIC UTILITIES › Subchapter F - UNIFORM SYSTEMS OF ACCOUNTS › Article 3 - Municipal Electric Utilities › Part 197 - Instructions › Section 197.7 - Depreciation accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Computation and filing of depreciation rates.
(1) Each utility shall determine and file
					 with this commission not later than six months following the date when it
					 becomes subject to this system of accounts, a statement showing composite
					 annual percentage rates considered applicable to the book cost of each class of
					 depreciable property or subdivision thereof (see subdivision [c] of this
					 section) used wholly or partly in electric operations, which rates shall be
					 based upon the estimated service values and service lives developed by a study
					 of the utility's history and experience, the history and experience of other
					 utilities and electric corporations, and such engineering and other information
					 as may be available in respect of probable future conditions. These percentage
					 rates shall be computed in conformity with the group plan of accounting for
					 depreciation and shall be such that the loss in service value of the property
					 will be distributed in equal monthly charges during the service life of the
					 property in accordance with the straight- line method (see §
												196.1,
					 subd. [a][44]). When a class of depreciable property covers two or more
					 distinct types of property with different service lives and/or net salvage
					 values, the service lives and net salvage values shall be separately determined
					 for each such type of property. When this is done the composite annual rates
					 shall be computed so as to produce a charge to operating expenses for each
					 class of depreciable property which will be equal to the sum of the amounts
					 chargeable for each of the various types of depreciable property included in
					 such class. The composite annual rates so filed shall be accompanied by a
					 statement subscribed by the responsible municipal official or other duly
					 authorized representative of the utility showing the bases therefor and the
					 methods employed in their computation, including the estimated service life and
					 net salvage value at retirement of each class, or subdivision thereof, of
					 depreciable property, and the date when such rates become effective. The
					 utility shall be prepared to submit evidence showing the correctness and
					 applicability under the principles and methods herein prescribed of such rates,
					 and to compute and submit at any time, upon direction of this commission,
					 revised rates when existing rates are deemed inapplicable.
(2) If in the judgment of the utility any
					 composite rate filed with the commission becomes no longer currently
					 applicable, the utility shall in like manner file revised annual composite
					 depreciation rates which in its judgment should be established.
(3) The utility shall keep such records of
					 property and property retirements as will reflect the service life of property
					 which has been retired, or will permit the determination of probable service
					 life by appropriate methods; and also such records as will reflect the
					 percentage of salvage value, or net salvage value, as appropriate, for property
					 retired from each class, or subdivision thereof, of depreciable operating
					 property used wholly or partly in electric operations.