R746.  Public Service Commission, Administration.
R746-332.  Depreciation Rates for Water Utilities.
R746-332-1.  Depreciation Rates for Water Utilities.
	A.  Water utilities operating under the jurisdiction of the Public Service Commission of Utah shall be allowed to recover in rates charged consumers, the cost of the investment in depreciable utility plant, less established net salvage, over the useful life of the plant.
	B.  The base on which depreciation expense is calculated shall be the original cost of the depreciable property to the person or entity who first devotes the property to public service, and that the method to be used in calculating depreciation expense for book and rate making purposes shall be the straight line average service life method.
	C.  Effective with each utility's next general rate case, each water utility operating in Utah shall not depreciate utility plant faster than allowed by the following rates, except where the Commission has approved depreciation rates based on shorter plant lives as shown by a competent depreciation study:

	TABLE

     NARUC   Account          Average  Net       Depreciation
     Account                  Service  Salvage   Rate
     Number                   Life --  Percent -- Percent
                              Years

     304     Structures and   35                  2.9
               Improvements
     305     Collecting and   50                  2.0
               Impounding
               reservoirs
     306     Lake, River and  35                  2.9
               Other Intakes
     307     Wells and        25                  4.0
               Springs
     308     Infiltration     25                  4.0
               Galleries and
               Tunnels
     309     Supply Mains     50                  2.0
     311     Pumping          20                  5.0
               Equipment
     320     Water            20                  5.0
               Treatment
               Equipment
     330     Distribution     30                  3.3
               Reservoirs and
               Standpipes
     331     Transmission and 50                  2.0
               Distribution
               Mains
     333     Services         30                  3.3
     334     Meters and Meter 35       10         2.6
               Installations
     335     Hydrants         40        5         2.4
     340     Office           20        5         4.8
               Furniture
               and Equipment
     341     Transportation    7       10        12.9
               Equipment
     342     Stores           20                  5.0
               Equipment
     343     Tools, Shop and  15        5         6.3
               Garage
               Equipment
     344     Laboratory       15                  6.7
               Equipment
     345     Power            10       10         9.0
               Operated
               Equipment
     346     Communication    10       10         9.0
               Equipment

KEY:  public utilities, water, rules and procedures
Date of Enactment or Last Substantive Amendment:  1987
Notice of Continuation:  February 14, 2018
Authorizing, and Implemented or Interpreted Law:  54-4-24