Introduction to Utility Depreciation
January 26-27, 2021 | Online :: Central Time
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Intermediate Utility Depreciation, January 27-28, 2021
This course provides a foundation for understanding depreciation concepts, thinking through ratemaking implications, and making data collection choices that will impact the content and quality of the depreciation study. This course is intended to be introductory and will provide a framework for the more advanced course, Intermediate Utility Depreciation. The course is not simply a lecture but is intended to be interactive with the goal of addressing to the greatest extent possible, questions from the attendees. The goal of the course is that participants will become conversant on basic depreciation issues.
- Explain the definition of depreciation, the calculation of annual depreciation expense, and the concepts associated with basic plant accounting
- Discuss the social and financial significance of accurately accruing depreciation and net salvage over the lifespan of the plant assets (i.e. the ratemaking perspective)
- Introduce the “Depreciation Cube” (Methods, Procedures, and Techniques) with a focus on the methods, techniques, and procedures most commonly used
- Introduce life analysis, survivor curves, and the concepts behind the methods used to estimate the remaining service life
- Introduce net salvage analysis and discuss its increasing significance in the development of depreciation accrual rates
- Identify the “ideal” data that should be tracked within continuing property records.
- Examine depreciation accounting concepts including capitalization policies, account groupings, individual vs group (mass) asset accounting methodologies, the value of tracking contributed plant, and whether amortization is a better choice for some assets
- Explore accounting options to record fixed asset retirements and the impact of the choices upon depreciation calculations
- Examine the connection between actual data available in plant records and the choice of life and net salvage analysis methods and the reliability of the resulting analysis
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 1.1 CEUs for this course.
Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.
Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program Level: Beginner/Intermediate
Delivery Methood: Group-Live
Advanced Preperation: None
EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
Requirements for Successful Completion of Program
Participants must sign in/out each day, be in attendance for the entirety of the course
Power Point presentations and open discussion will be used
Tuesday, January 26, 2021 : Central Time
8:30 a.m. – 9:00 a.m. :: Log In and Welcome
9:00 a.m. – 5:00 p.m. :: Course Timing
12:00 – 12:30 p.m. :: Break for Lunch
What is Depreciation?
- Different Perspectives
- Historical Development
- Defining Terms
Why is Depreciation Important?
- Revenue Requirement
- Social Considerations
- Ratemaking Impacts
The Depreciation Cube
- Depreciation Methods
- Depreciation Procedures
- Depreciation Techniques
- Unit Accounting
- Group Accounting
- Defining Terms
- Modeling Real Life with Analytical Tools
- Simulated Plant Records
Net Salvage Analysis
- Net Salvage Analysis
- Gross Salvage
- Cost of Removal
Ideal Continuing Property Records
- Setting up or Modifying CPRs
- Regulatory Requirements
- Ideal Continuing Property Records
- Selecting Retirement Units
- Capitalization Policy
- Capitalization Threshold
- Capitalize or Expense?
Selecting Account Groupings
- Asset Distinctions that Matter
- Pros & Cons of Subaccounts
Wednesday, January 27, 2021 : Central Time
8:30 – 9:00 a.m. :: Log In
9:00 a.m. – 12:00 p.m. :: Course Timing
Fixed Asset Retirements
- Various Methods
The Depreciation Study
- Data Collection
- Accrual Rate
- Final Thoughts
Next Steps to Learning More
James Keen, Utility Consultant, Aldrich CPAs + Advisors
Mr. Keen’s public utility experience totals over 18 years, focusing primary on regulatory matters, depreciation, and rate development. Mr. Keen is a Certified Depreciation Professional experienced in preparing detailed depreciation studies for utility use and for review and approval by regulatory bodies. His experience includes analyzing financial and technical information, developing spreadsheet models, preparation of revenue requirement studies and expert testimony, and performing market analysis and economic forecasting. His expertise includes rate development, preparing utility contractual agreements, tariff modifications, depreciation studies and regulatory planning for electric, natural gas, solid waste, telephone and water and wastewater clients.
Prior to his role as a consultant, Mr. Keen worked for the Regulatory Commission of Alaska for over 15 years, serving as the chief of the engineering section for 10 years. During his time there, he was involved with managing complex regulatory rulemaking proceedings, developing regulations implementing federal and state programs, and analyzing matters of first impression. He was also the Commission’s primary depreciation analyst. He has testified before Alaska Senate and House Committees and taught workshops to utility personnel on regulatory policy, basic ratemaking, and depreciation.
Before entering the utility arena, Mr. Keen was a design engineer at Rolls-Royce North America, specializing in aero gas turbine engines for commercial and military applications. Mr. Keen has a Bachelor of Science in Mechanical Engineering from Purdue University.
Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.
We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.
- You will receive a meeting invitation will include a link to join the meeting.
- Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
- You will need to join the appropriate meeting at the appropriate time.
- If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
- The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.
Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ
If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event