By - Jon Brown

Intermediate Utility Depreciation
January 27-28, 2021 | Online :: Central Time

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Introduction to Utility Depreciation, January 26-27, 2021

This course guides utilities and energy personnel through the strategies necessary to understand the depreciation study process, meaningfully interpret depreciation study results, and develop expertise to build solid plant records upon which accurate and defensible depreciation studies can be performed.  The material that will be covered in the course will include, but will not be limited to, a discussion of company historical source data used for depreciation study purposes; development of a depreciation study database; how and why historical information is analyzed; other factors considered in life and salvage analysis; a discussion of depreciation methods, procedures, and techniques for depreciation rate development; and what is included in a depreciation study report.  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, to maximize the participants’ understanding of the depreciation study process, results, and the application in revenue requirements.

Learning Outcomes

  • Review the fundamentals of utility depreciation, including the significance of depreciation, an overview of methods, procedures and techniques, and life and net salvage analysis
  • Examine plant accounting concepts and practices and the connection between property records and the depreciation study
  • Interpret survivor curves and draw useful data for the purpose of analysis and life projections
  • Perform actuarial analysis on in-class examples
  • Develop familiarity with the Simulated Plant Records (SPR) methodology and perform basic SPR analysis on in-class examples
  • Consider how life span limitations and other factors influence the development of depreciation accrual rates
  • Explore the process of net salvage analysis, identifying the factors that are considered and work through examples
  • Examine principles for handling contributed plant in plant accounting records and the impact on the depreciation study and resulting depreciation accrual rates
  • Introduce concepts for handling reimbursements related to premature plant retirements
  • Introduce Asset Retirement Obligations
  • Perform basic analysis of accumulated depreciation, comparing actual and theoretical “reserve” balances
  • Identify the steps of a depreciation study and common issues of contention in adversarial proceedings before regulators



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 event.

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

CpeEUCI 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

Instructional Methods

Power Point presentations and open discussion will be used

Who Should Attend

  • Regulatory Staff and Commissioners who review depreciation studies
  • Recently hired accountants
  • Individuals assuming property accounting and depreciation responsibilities
  • Regulatory management and analysts at utilities that have had limited experience with accounting and depreciation measures


Wednesday, January 27, 2021 : Central Time

12:30 – 1:00 p.m. :: Log In and Welcome

1:00 p.m. – 4:30 p.m. :: Course Timing

Review of Fundamental Utility Depreciation Concepts

  • What is Depreciation and Why is it Important?
  • Depreciation Methods, Procedures & Techniques
  • Life and Net Salvage Analysis
  • Property Accounting Concepts

Plant Accounting Data

  • Objectives
  • Ideal Continuing Property Records
  • Data Needed for Analysis
  • Asset Tracking

Life Analysis – Intermediate Concepts

  • Location vs. Mass Property Accounts
  • Survivor Curves – A More Detailed Look
  • Actuarial Analysis – From Data to Graphical Analysis
    • Review of Methodology
    • Class Example

Thursday, January 28, 2021 : Central Time

8:45 – 9:00 a.m. :: Log In

9:00 a.m. – 4:30 p.m. :: Course Timing

12:00 – 12:30 p.m. :: Break for Lunch

Life Analysis – Advanced Concepts (continued)…

  • Simulated Plant Record Analysis
    • Explanation of the Methodology
    • Determining the Quality of the Results
    • Class Example
  • Life Span Analysis
    • Square Curves
    • Truncated Curves
    • Interim Retirements
  • Other Life Factors
    • Technological Obsolescence
    • Replacement Campaigns
    • Regulatory Factors

Net Salvage – Intermediate Concepts

  • Understanding Terms
  • Analysis Techniques and Examples
  • Other Factors to Consider
  • Relocations


  • Reimbursements for Relocation
  • Reimbursements from Insurance

Contributions in Aid of Construction

  • Basic Principles
  • Non-Refundable Advances
  • Refundable Advances

Accumulated Depreciation Analysis

  • Book Accumulated Depreciation
  • Theoretical Accumulated Depreciation
  • Comparing and Reconciling Book and Theoretical Accumulated Depreciation

Depreciation Study Data Request

Issues of Contention in Depreciation Studies

  • Depreciation Proceedings
  • Depreciation Parameters
  • Terminal Dates
  • Techniques and Procedures
  • Net Salvage


James Keen, Utility Consultant, Aldrich CPAs + Advisors

Mr. Keen’s public utility experience totals over 19 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.

Online Delivery

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

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