Depreciation Fundamentals for Utilities and Energy Companies
June 14-15, 2018
Baltimore, MD

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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.

Learning Outcomes         

  • 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.

Instructional Methods

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
    • Cost
    • Benefits
  • Importance of historical plant record continuity

Depreciation Definition

  • 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 Accounting

  • Plant assets
  • Plant accounting-property units
  • Work orders
  • Components of construction cost
  • Property retirements
    • Unrecorded retirements
    • Under-recorded retirements
    • Plant accounting record audits

Depreciation Concepts

  • Unit depreciation concepts
  • Group depreciation concepts

Depreciation Cube

  • Method
  • Procedures
  • Techniques

Completing a Depreciation Study

  • Planning a study
    • Stages of a study
  • Goals/objectives
  • Study procedures 
  • Depreciation database
    • Building a database
      • Dependent upon available company data
    • Data collection phase
    • Database assembly

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

Friday, June 15, 2018

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 12:00 p.m. :: Course Timing

Salvage Analysis

  • 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.


Hilton Baltimore
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.

Click here to book online

Room 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 23, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.



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