Depreciation Studies
Periodically, utilities should evaluate whether their depreciation accrual rates accurately reflect the expected service lives of their property. By developing accurate depreciation rates, utilities can prevent the over or under valuation of property. Most regulated utilities are subject to strict requirements that any proposed changes to their depreciation accrual rates be supported by a current depreciation study. The Prime Group can conduct a depreciation study to estimate the expected service lives and estimated net salvage amounts for a utility’s property record accounts. We offer the following depreciation services:
- Performing actuarial life studies based on detailed property records
- Performing simulated plant record studies
- Estimating salvage and removal costs
- Developing depreciation accrual rates
- Providing expert testimony and support
