This course guides utilities and energy personnel through the fundamentals necessary to achieve accurate and meaningful data to provide to consultants doing depreciation studies. 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.
- Review depreciation terms, definitions, background, and reference books
- Explain the fundamentals of plant accounting
- Examine depreciation concepts
- Discuss the steps to completing a depreciation study
- Review the procedures and techniques of the depreciation cube
- Explore depreciation analysis methods
- Develop depreciation rates by asset class
- Review the components of salvage analysis
- Complete a historical life and salvage analysis
- Review a depreciation case 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 1.0 CEUs for this event.
Requirements for Successful Completion of Program
Participants must sign in/out each day, be in attendance for the entirety of the course to be eligible for continuing education credit.
Case studies, PowerPoint presentations, and group discussion will be used in this event.
Thursday, June 14, 2018
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
Why Recognize Depreciation?
- Depreciation from early times
- Evolution – the last 25 years and more
- As a balance sheet component
- As an income statement component
Depreciation in Ratemaking
- Revenue requirement
- General accounting view
- Plant accounting view
Plant Accounting Record Systems
- Accounting system conversions
- Developing and maintaining prior records
- Importance of historical plant record continuity
- AICPA Bulletin # 1
- 1996 NARUC “Public Utility Depreciation Practices”
- Depreciation Terms
- Depreciation Background
- Depreciation Reference Textbooks
Plant Accounting & Depreciation Guidance
- Uniform system of accounts-various
- Plant records
- Plant assets
- Plant accounting-property units
- Work orders
- Components of construction cost
- Property retirements
- Unrecorded retirements
- Under-recorded retirements
- Plant accounting record audits
- Unit depreciation concepts
- Group depreciation concepts
Completing a Depreciation Study
- Planning a study
- Stages of a study
- Study procedures
- Depreciation database
- Building a database
- Dependent upon available company data
- Data collection phase
- Database assembly
- Building a database
Depreciation Analysis Methods
- Tools to study historical life data
- Actuarial life analysis
- Basic data requirements
- Simulated plant analysis
- Basic data requirements
- Depreciation of power plants and other life span/forecast account
- Actuarial life analysis
Friday, June 15, 2018
8:00 – 8:30 a.m. :: Continental Breakfast
8:30 a.m. – 12:00 p.m. :: Course Timing
- Book accounting transactions
- Historical net salvage analysis
- Prospective net salvage in depreciation rates
- Forecast salvage analysis
Complete a Historical Life & Salvage Analysis
- Forecasting depreciation parameters
Developing Depreciation Rates by Asset Class
- Whole life depreciation accrual amount
- Whole life depreciation rate
- Remaining life depreciation accrual amount
- Remaining life depreciation rate
- ELG depreciation
Depreciation Reserve Analysis
- Comparison of book versus theoretical reserves
Summarizing Depreciation Recommendations
- Depreciation rates by asset recovery component
- Understanding recovery rates by component
Depreciation – Case Study
Earl M. Robinson, CDP, Principal and Director, AUS Consultants
Mr. Robinson is a nationally recognized Certified Depreciation Professional (CDP) and a principal and director of AUS Consultants. As a CDP, he provides services to the firm’s clients with regard to depreciation and cost-based valuation issues. With more than 40 years of experience, Mr. Robinson began his career as a staff member of the plant accounting department of United Telephone (now Embarq) Eastern Group Headquarters subsequent to which he has spent more than 35 years as a consultant preparing depreciation and valuation studies for gas, pipeline, electric, telecommunications, water, and wastewater utilities. In conjunction with the provision of these services, Mr. Robinson has testified on many occasions before numerous regulatory agencies including state, federal, and property tax agencies throughout the U.S., Canada, and the Caribbean in support of the many studies completed for his diverse list of clients.
Mr. Robinson is a founding member and past president of the Society of Depreciation Professionals. He is also a member of the American Gas Association (AGA) accounting services committee and past chairman of the statistics, bibliography, and court regulatory sub-committee of the AGA depreciation committee.
401 W Pratt St, Baltimore, MD 21201
To reserve your room, please call (443) 573-8700
Please indicate that you are with the EUCI group to receive the group rate.
The room rate is $209 single or double plus applicable taxes.
Room Block Dates:
A room block has been reserved for the nights of June 13-14, 2018.
Rate Available Until:
Make your reservations prior to May 13, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.
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, May 25, 2018
|Depreciation Fundamentals for Utilities and Energy Companies||US $ 1195.00||US $ 1395.00|
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 May 11, 2018 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