Introduction to Utility Depreciation

January 26-27, 2021


Tuesday, January 26, 2021 : Central Time

8:30 a.m. – 9:00 a.m. :: Log In and Welcome

9:00 a.m. – 5:00 p.m. :: Course Timing

12:00 - 12:30 p.m. :: Break for Lunch

What is Depreciation?

  1. Different Perspectives
  2. Historical Development
  3. Defining Terms

Why is Depreciation Important?

  1. Revenue Requirement
  2. Social Considerations
  3. Ratemaking Impacts

The Depreciation Cube

  1. Depreciation Methods
  2. Depreciation Procedures
  3. Depreciation Techniques

Property Accounting

  1. Unit Accounting
  2. Group Accounting

Life Analysis

  1. Defining Terms
  2. Modeling Real Life with Analytical Tools
  3. Simulated Plant Records

Net Salvage Analysis

  1. Net Salvage Analysis
  2. Gross Salvage
  3. Cost of Removal
  4. Inflation

Ideal Continuing Property Records

  1. Objectives
  2. Setting up or Modifying CPRs
  3. Regulatory Requirements
  4. Ideal Continuing Property Records

Capitalization Policy

  1. Selecting Retirement Units
  2. Capitalization Policy
  3. Capitalization Threshold
  4. Capitalize or Expense?

Selecting Account Groupings

  1. Asset Distinctions that Matter
  2. Pros & Cons of Subaccounts

Wednesday, January 27, 2021 : Central Time

8:30  – 9:00 a.m. :: Log In

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

Amortization Considerations

Fixed Asset Retirements

  1. Various Methods
  2. Vintage
  3. FIFO
  4. LIFO
  5. Comparison

The Depreciation Study

  1. Planning
  2. Data Collection
  3. Calculation
  4. Evaluation
  5. Accrual Rate
  6. Recommendation
  7. Final Thoughts

Next Steps to Learning More


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.


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.