Introduction to Utility Depreciation
February 19-20, 2020 | Denver, CO
If this event is of interest you may also be interested in this related event
Intermediate Utility Depreciation, February 20-21, 2020 in Denver, CO
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, Depreciation Fundamentals. 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
- Introduce the steps and identify the useful outcomes of a depreciation study
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.
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
Wednesday, February 19, 2020
8:00 – 8:30 a.m. :: Registration and Continental Breakfast
8:30 a.m. – 5:00 p.m. :: Course Timing
12:00 – 1:00 p.m. :: Group Luncheon
What is Depreciation?
- Different Perspectives
- Historical Development
- Defining Terms
Why is Depreciation Important?
- Revenue Requirement
- Social Considerations
- Ratemaking Impacts
The Depreciation Cube
- Methods, Procedures & Techniques
- Depreciation Methods
- Depreciation Procedures
- Depreciation Techniques
- Unit Accounting
- Group Accounting
- Average Service Life
- Average Remaining Life
- Probable Life
- What about REAL Life?
- Retirement Rate Method
- Survivor Curves
- Placement Bands
- Experience Bands
- 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
Thursday, February 20, 2020
8:00 – 8:30 a.m. :: Continental Breakfast
8:30 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.
Plaza Tower One Conference Center
6400 S Fiddlers Green Cir.
Greenwood Village CO, 80111
The EUCI conference center is conveniently located adjacent to the Arapahoe at Village Center Light Rail Station, allowing easy access to and from DIA, Downtown, and Local Area Attractions.
Each of these hotels offers a complimentary shuttle to and from the EUCI conference center.
Hyatt Regency Denver Tech Center
7800 East Tufts Ave
Denver, CO 80237
2.8 miles away
Special EUCI Room Rate: $179.00
To access EUCI room rate visit denvertechcenter.regency.hyatt.com
Click “Book Now”, then click “Special Rates”
Click “Corporate or Group Code” and enter CR102338
You may also call our central reservation at 1-800-233-1234 and give them the corporate code of CR102338
Springhill Suites DTC
7900 East Peakview Ave
Greenwood Village, CO 80111
0.3 miles away
Wingate by Wyndham
8000 East Peakview Ave
Greenwood Village, CO 80111
0.3 miles away
Hyatt Place Denver Tech Center
8300 E.Crescent Parkway
Greenwood Village, CO 80111
2.1 miles away
Denver Marriott Tech Center
4900 S Syracuse St
Denver, CO 80237
3.1 miles away
Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800
|Event||Early Bird Before |
Friday, January 31, 2020
|Introduction to Utility Depreciation||US $ 1195.00||US $ 1395.00|
This event has the following related events:
|Intermediate Utility Depreciation||US $ 1195.00||US $ 1395.00|
Take advantage of these discounts!
- Attend the Course and Intermediate Utility Depreciation and pay US $ 2,195.00 per attendee (save US $ 195.00 each)
Register 3 Send 4th Free!
Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.
Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 17, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800