Intermediate Utility Depreciation

Intermediate Utility Depreciation

September 22, 2021 | Online :: Central Time

“James Keen provides a refreshing perspective to Depreciation Analysis. Highly recommend.” – Electric Engineer, NV PUC

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
  • Identify the steps of a depreciation study and common issues of contention in adversarial proceedings before regulators


    Wednesday, September 22, 2021 : Central Time

    8:30 – 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


    Review of Fundamental Utility Depreciation Concepts

    Plant Accounting Data

      1. Objectives
      2. Ideal Continuing Property Records
      3. Data Needed for Analysis
      4. General Plant Amortization
      5. Fixed Asset Retirements
        1. Various Methods
        2. Comparison of Methods
      6. Asset Tracking

    Life Analysis – Intermediate Concepts

      1. Survivor Curves – A more detailed look
      2. Actuarial Analysis methods and examples
      3. Simulated Plant Records methods and examples
      4. Life Span Analysis
      5. Other Life Factors

    Net Salvage – Intermediate Concepts

      1. Understanding Terms
      2. Analysis techniques and examples
      3. Other factors to consider
      4. Relocations

    Addressing Other Transaction Types

      1. Transfers
      2. Reimbursed Retirements
      3. Acquisitions
      4. Sales
      5. Adjustments

    Properly Accounting for Contributed Plant

    Issues of Contention in Depreciation Studies

      1. Depreciation Proceedings
      2. Depreciation Parameters
      3. Terminal Dates
      4. Techniques and Procedures
      5. Net Salvage

    Depreciation Study Data Request

      1. What Information Will be Needed?


    Applied Depreciation Principles

    This optional workshop is complementary for course attendees

    Thursday, September 23, 2021 : 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 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

    Event Standard RateAttendees




    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 event.


    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: 8.0
    There is no prerequisite for this Course.
    Program field of study: Specialized Knowledge
    Program Level: Beginner/Intermediate
    Delivery Method: Group-Live
    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

    • 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

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