Areas of study include property service-life forecasting, depreciation estimation, and valuation of industrial property as of the following: Service Life Studies IOWA CURVES Survivor curves Net Salvage Studies Development of Depreciation Rates Assessment of Depreciation Reserves
Estimation of Asset Retirement Obligations (SFAS 143 and FIN 47) Periodic studies of depreciation rates and practices are well overdue for NYPA so that the most current service life experience, net salvage trends, replacement activity, and technological and economic developments may be properly reflected in annual depreciation.
An annual rate credit of $64 million due to the amortization of excess depreciation reserves
will expire on December 31, 2005.
Just as business owners know it is good business practice to establish depreciation reserves
for machinery, so, too, they recognize the necessity of accumulating funds to protect against the loss of management talent.
Another example of a change in permissible methods unaffected by the procedure would be a change from charging depreciation reserves
with costs of removal and crediting reserves with salvage proceeds, deducting the costs of removal as an expense and then including salvage proceeds in taxable income.
The rate increase is net of a $64 million annual credit related to the amortization of excess depreciation reserves
that will expire on Dec.
In addition, medical center depreciation reserves
held by the state treasurer and valued at $212 million (as of Jan.
In the first quarter of 1998, SCE&G reversed a shift of depreciation reserves
originally approved by the South Carolina Public Service Commission (SCPSC) in 1996 to accelerate the depreciation of the Summer Plant.
Commenting on the 5 cents per share increase in earnings resulting from the non-recurring adjustment the Company recorded in the first quarter, Marsh said, "In the first quarter of 1998, the Company reversed a $257 million shift of depreciation reserves
from electric transmission and distribution assets to nuclear production assets that had previously been approved by the South Carolina Public Service Commission (SCPSC) in a January 1996 rate order.
The settlement agreement also addresses accelerating depreciation of the company's nuclear facilities through a book transfer of $18 million in depreciation reserves
from its fossil-fired generating plant assets to its nuclear assets (Palisades, Big Rock Point).
The Commission also approved SCE&G's request to shift approximately $257 million of depreciation reserves
from its transmission and distribution assets to nuclear production assets.