Rates and Depreciation Case Studies
Depreciation Study for New EHV Transmission Line
Tangibl prepared a depreciation study for a new 500kV transmission line in the mid-Atlantic region. The study involved assembly of estimated construction costs, assignment of the cost to the appropriate FERC accounts, estimation of services lives and net salvage percentages to be used in developing the depreciation rates and calculation of the depreciation rates. A report was prepared which presented the methodology used and the study results. Direct testimony was prepared and submitted to the FERC as a part of the Company’s rate approval process.
The study involved developing depreciation rates for a Static VAR Compensator (SVC) as well as the more traditional transmission facilities such as towers, conductor, station equipment, etc. As part of the study Tangibl made a field visit to the SVC facilities which were under construction and met with management and operating personnel to obtain their input on the outlook and plans for the facilities.
The study was completed over a two-month time frame and the depreciation rates resulting from the study were accepted by the FERC. Tangibl has completed similar studies for four additional transmission projects in the mid-west and the eastern U.S.