Utility Depreciation

April 7 - 8, 2026 Online :: Central Time

In today’s evolving utility landscape, regulatory scrutiny, aging infrastructure, and the capital‑intensive transition to cleaner energy are fundamentally reshaping asset management strategies. Utilities are under increasing pressure to align financial practices with long‑term system planning, customer affordability, and regulatory expectations. Within this environment, depreciation plays a critical role in cost recovery, revenue requirements, and investment decision‑making, making a strong understanding of depreciation concepts more essential than ever for utility professionals.

This course provides participants with a solid foundation in the practices and practical applications of utility depreciation from regulatory, financial, and operational perspectives. Attendees will explore how depreciation impacts revenue requirements, cost recovery, and long‑term planning, and will learn how depreciation rates are established through utility depreciation studies. Through real‑world examples and interactive discussions, participants will develop a clear understanding of core depreciation concepts and strengthen their ability to participate in, review, or assess depreciation studies using relevant data and accepted accounting practices for utility plant assets.

Learning Outcomes

Define the concept and calculation of depreciation for utilities
Discover how depreciation affects revenue requirements and customer rates
Review the elements of a depreciation system and how to build or assess one
Identify how a depreciation study relates to plant operations and asset strategy
Conduct or assess actuarial analysis of plant retirement data to forecast the distribution of plant retirements
Conduct or assess net salvage analysis, and recognize its increasing importance amid rising asset retirement costs
Calculate annual depreciation rates based on the results of life and salvage analysis
Examine the role of capitalization policies and account structures in shaping depreciation outcomes
Identify the impact of accounting choices on depreciation expense and regulatory treatment
Assess how data availability and asset records influence the reliability of depreciation analysis

Continue to Agenda

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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 attendees for 7 days after the event

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This event has passed and cannot be registered for. If you would like to see if this event will be offered again please reach out to [email protected]

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 March 06, 2026 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

EUCI retains the right to refuse registration by any individual or company.

Day one

Tuesday, April 7, 2026

Day two

Wednesday, April 8, 2026

Agenda

Tuesday, April 7, 2026
Central Time

Online

Log In & Welcome

8:45 AM

Lunch Break

12:15 - 1:15 PM

Adjourn for the day

5:00 PM

8:45 AM - 9:00 AM

Log In & Welcome

9:00 AM - 5:00 PM

Day One – Fundamentals and Frameworks

9:00 - 9:30 AM

Understanding Depreciation in Today’s Utility Environment

• The evolving role of depreciation in cost recovery and capital planning
• Key terms and definitions from AICPA and NARUC
• Today’s practical implications
• Unit accounting vs. Group accounting

9:30 - 10:00 AM

Why Depreciation Matters in Today's Utility Environment

• Revenue requirement and plant accounting perspectives
• Regulatory and public perception considerations
• Strategic implications for capital allocation and grid investment

10:00 - 10:15 AM

Morning Break

10:15 AM - 12:15 PM

Depreciation Systems Overview

• Purpose and structure of depreciation systems
• Comparison of commonly used approaches

12:15 - 1:15 PM

Lunch Break

1:15 - 2:15 PM

Depreciation Study Fundamentals

• Study goals and components
• Key procedures
• How depreciation studies inform ratemaking

2:15 - 3:45

Forecasting Retirement Traits

• Why accurate forecasting matters
• Tools, models, and principles of judgment-based analysis
• Understanding analytical modeling
• Defining characteristics in modern utility asset bases

3:45 - 4:00 PM

Afternoon Break

4:00 - 5:00 PM

Practical Applications

• Develop life tables from continuing property records
• Conduct actuarial analysis to identify best fitting retirement distributions
• Apply informed judgment to evaluate the results of actuarial analysis
• Calculate average remaining life based on forecasted retirement characteristics

Agenda

Wednesday, April 8, 2026
Central Time

Online

Log In

8:45 AM

Adjourn for the day

12:30 PM

8:45 AM - 9:00 AM

Log In

9:00 AM - 12:30 PM

Day Two – Applications and Accounting Decisions

9:00 - 9:30 AM

Net Salvage Analysis

Gross salvage vs. Cost of removal
Impact of inflation and current decommissioning trends
How net salvage feeds into depreciation rates

9:30 - 10:00 AM

Continuing Property Records (CPRs)

Objectives and benefits of CPRs
Compliance with regulatory expectations
Data structure and management practices

10:00 - 10:15 AM

Morning Break

10:15 - 11:15 AM

Capitalization Policy and Retirement Practices

Selecting and tracking retirement units
Capitalization thresholds and policies
Expense vs. capitalization decision-making

11:15 AM - 12:15 PM

Practical Applications

Apply informed judgement in evaluating net salvage rates
Calculate annual depreciation rates based on forecasted life and net salvage
Review completed depreciation study to identify areas of inquiry

12:15 - 12:30 PM

Wrap-Up

Review of core concepts
Open Q&A

Instructor

Lance Kaufman

Founder and Principal Economist

Western Economics, LLC

Lance Kaufman, Ph.D., is the founder and Principal Economist of Western Economics, LLC, where he specializes in depreciation, class cost of service, and cost of capital studies. A Certified Depreciation Professional and former Senior Economist at the Oregon Public Utility Commission, Dr. Kaufman has participated extensively in state and FERC depreciation proceedings across the United States. Dr. Kaufman has prepared depreciation studies for electric, water, and telecommunication utilities. His work integrates economic modeling, regulatory policy, and statistical analysis to support expert testimony. In addition to his consulting and expert witness practice, Dr. Kaufman has developed proprietary software for analyzing plant lives and preparing depreciation rates, combining academic rigor with practical innovation in utility economics.

Continuing Education Credits

IACET

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this event

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Who recognizes IACET Credits?

Requirements for Successful Completion of Program

Participants must log in and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, group discussions, and active attendee participation.

CPE

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

Course CPE Credits: 11.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

Cpe EUCI 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. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org

CLE

Only registered attendees can request CLE credits for an EUCI course/event. Please email [email protected] prior to the course start date and list the state where you are licensed and your bar# as well as the name and date of your course/event in your request, and someone will be in contact.