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							R746. Public Service Commission, Administration.
R746-332. Depreciation Rates for Water Utilities.
R746-332-1. Depreciation Rates for Water Utilities.
     A. Water utilities operating under the jurisdiction of the Public
Service Commission of Utah shall be allowed to recover in rates charged
consumers, the cost of the investment in depreciable utility plant,
less established net salvage, over the useful life of the plant.
     B. The base on which depreciation expense is calculated shall
be the original cost of the depreciable property to the person or
entity who first devotes the property to public service, and that
the method to be used in calculating depreciation expense for book
and rate making purposes shall be the straight line average service
life method.
     C. Effective with each utility's next general rate case, each
water utility operating in Utah shall not depreciate utility plant
faster than allowed by the following rates, except where the Commission
has approved depreciation rates based on shorter plant lives as shown
by a competent depreciation study:

                                TABLE

     NARUC   Account            Average   Net       Depreciation
     Account                    Service   Salvage   Rate
     Number                     Life --   Percent -- Percent
                                Years

     304     Structures and     35                   2.9
               Improvements
     305     Collecting and     50                   2.0
               Impounding
               reservoirs
     306     Lake, River and    35                   2.9
               Other Intakes
     307     Wells and          25                   4.0
               Springs
     308     Infiltration       25                   4.0
               Galleries and
               Tunnels
     309     Supply Mains       50                   2.0
     311     Pumping            20                   5.0
               Equipment
     320     Water              20                   5.0
               Treatment
               Equipment
     330     Distribution       30                   3.3
               Reservoirs and
               Standpipes
     331     Transmission and   50                   2.0
               Distribution
               Mains
     333     Services           30                   3.3
     334     Meters and Meter   35        10         2.6
               Installations
     335     Hydrants           40        5          2.4
    340     Office            20       5         4.8
              Furniture
              and Equipment
    341     Transportation    7       10        12.9
              Equipment
    342     Stores            20                 5.0
              Equipment
    343     Tools, Shop and   15       5         6.3
              Garage
              Equipment
    344     Laboratory        15                 6.7
              Equipment
    345     Power             10      10         9.0
              Operated
              Equipment
    346     Communication     10      10         9.0
              Equipment

KEY: public utilities, water, rules and procedures
Date of Enactment or Last Substantive Amendment: 1987
Notice of Continuation: April 1, 2008
Authorizing, and Implemented or Interpreted Law: 54-4-24