Introduction to Utility Depreciation

Introduction to Utility Depreciation

March 8, 2022 | Online :: Central Time

“This was one of the best trainings that I’ve ever received. I appreciated the real life examples a lot.” – UNS

“Amazing speaker and answered all questions.” – California Public Utilities Commission

“James was very knowledgeable but was also able to explain things in a way that made it very understandable” – Director of Finance, Prairie Land Electric Coop

“This was extremely helpful as someone with very little depreciation experience.” – Senior Consultant, Brubaker + Associates, INC

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.

Learning Outcomes

  • 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, and the value of tracking contributed plant
  • 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



Tuesday, March 8, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:00 – 12:45 p.m.
Lunch Break

9:00 a.m. – 5:00 p.m.
Course Timing


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

Property Accounting

  • Unit Accounting
  • Group Accounting

Life Analysis

  • Defining Terms
  • Modeling Real Life with Analytical Tools
  • Simulated Plant Records

Net Salvage Analysis

  • Net Salvage Analysis
  • Gross Salvage
  • Cost of Removal
  • Inflation

Ideal Continuing Property Records

  • Objectives
  • Setting up or Modifying CPRs
  • Regulatory Requirements
  • Ideal Continuing Property Records

Capitalization Policy

  • Selecting Retirement Units
  • Capitalization Policy
  • Capitalization Threshold
  • Capitalize or Expense?

Selecting Account Groupings

  • Asset Distinctions that Matter
  • Pros & Cons of Subaccounts

The Depreciation Study


Applied Depreciation Principles

This optional workshop is free of charge to course attendees

Thursday, March 10, 2022 : Central Time

8:30 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Workshop Timing


Pre-Submitted or Unaddressed Questions from Fundamentals & Intermediate Classes

  • Application of concepts through analysis of real data
    1. Actuarial Analysis
    2. Simulated Plant Record Analysis
    3. Net Salvage Analysis


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.

Online Delivery

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.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • 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

Event Standard RateAttendees
Single Connection - Introduction to Utility DepreciationUS $ 995.00
Pack of 5 connectionsUS $ 3,980.00
Pack of 10 ConnectionsUS $ 6,965.00
Pack of 20 ConnectionsUS $ 11,940.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs

This event has the following workshops:

Applied Depreciation PrinciplesUS $ 0.00

This event has the following related events:

Intermediate Utility DepreciationUS $ 995.00
Pack of 5 connectionsUS $ 3,980.00
Pack of 10 ConnectionsUS $ 6,965.00
Pack of 20 ConnectionsUS $ 11,940.00

By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

Take advantage of these discounts!

  • Attend the Course and Intermediate Utility Depreciation and pay US $ 1,895.00 per attendee (save US $ 95.00 each)

Cancellation Policy

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 February 04, 2022 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

Secured By:




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 0.7 CEUs for this course and 0.3 CEUs for the workshop.

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.


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

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 9.0
Workshop CEP Credits: 3.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Beginner/Intermediate
Delivery Method: Group-Live presented online due to COVID-19
Advanced Preparation: 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.



Who Should Attend

  • New plant accountants
  • Utility financial and ratemaking staff
  • Utility management wanting to get the “big picture” on depreciation
  • Regulatory Staff and Commissioners who review depreciation studies

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