Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 51 Pa.B. 6892 (October 30, 2021).

52 Pa. Code § 73.4. Format for filing the annual depreciation report.

§ 73.4. Format for filing the annual depreciation report.

 The public utility shall include the following information in the annual depreciation report:

   (1)  An executive summary of the annual depreciation report, including an explanation of depreciation methods used.

   (2)  A comparison with the prior year’s annual depreciation report.

   (3)  Explanations of extraordinary events occurring in the past year which significantly affected the amount of the utility’s depreciation reserve or annual depreciation expense, and proposed changes to its depreciation methods or parameters, or both, as a result of those events.

   (4)  Plant database used in the most recent service life study shall be submitted to the Office of Special Assistants in an electronic medium or computerized format as directed by that office. The plant database shall be updated for the current annual depreciation report, if requested by the Office of Special Assistants.

   (5)  The Office of Special Assistants will notify each utility in writing of the software and format that will be acceptable prior to filing the depreciation reports in electronic medium or computerized format by March 31st of the year in which the report is due.

   (6)  A summary of the depreciation calculations at the end of the calendar year by function or account which includes the following information:

     (i)   Original cost balance.

     (ii)   Book reserve.

     (iii)   Net original cost.

     (iv)   Average service life and survivor curve.

     (v)   Remaining life, for utilities using that method.

     (vi)   Annual accrual.

     (vii)   Annual accrual rate.

   (7)  When the information required by this section has been provided in another required report to the Commission, the utility shall notify the Office of Special Assistants as to the location of the information. If the information was not previously filed in the electronic format designated by the Office of Special Assistants, the information shall either be submitted in, or converted to, the electronic format required under this chapter.

   (8)  A summary of book reserve entries by function or account shall be submitted with the following information:

     (i)   Book reserve at the beginning of the year.

     (ii)   Annual accrual.

     (iii)   Retirements.

     (iv)   Gross salvage.

     (v)   Cost of removal.

     (vi)   Adjustments.

     (vii)   Book reserve at year end.

     (viii)   Book reserve as a percentage of original cost.

   (9)  A summary of retirements by function or account shall be submitted with the following information:

     (i)   Original cost balance of plant at the beginning of year.

     (ii)   Original cost of additions during year.

     (iii)   Original cost of retirements during year.

     (iv)   Adjustments to original cost.

     (v)   Original cost balance of plant at the end of year.

     (vi)   Percent of beginning of year original cost retired.

     (vii)   Explanation of whether the level of retirements is considered abnormal for the type of property being retired and if the level of retirements necessitates a review of the average service life of that type of property.

   (10)  For utilities that do not include salvage in the depreciation rate calculation, the utilities shall provide the calculation of the 5-year rolling average of net salvage by function or account showing each year’s experienced gross salvage and cost of removal, including a detailed explanation of any amounts excluded from the 5-year rolling average calculation of net salvage. Utilities using average or future net salvage in the depreciation rate calculation shall provide the average or future net salvage by depreciation rate category or account.

   (11)  Additional information and schedules shall be submitted as requested by the Commission if unique procedures are used by a utility.



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