20180927PAC to Staff Attachment 13.pdf

PacifiCorp
Case No. PAC-E-18-06
IPUC Data Request 2.13
Work Order: 6404075 - Highway Relocation - Holmes Avenue
Location: 005304 Shelley, Idaho
Retired Assets on 9/2018
Asset
Class Asset Class Description Vintage Quantity UOW
Acquisition
Value
Accumulated
Depreciation
(a)
Net Book
Value
36506 Wire, <=499 MCM 1968 8,170 FT 3,431.40 (3,431.40) -
36829 Pole, 1 Phase, <=25 Kva 1975 2 EA 647.40 (647.40) -
36914 Conduit 1998 30 FT 96.60 (96.60) -
36923 Insulated Cable, <=499 MCM 1990 3 FT 430.68 (430.68) -
Total Retirement 4,606.08$ (4,606.08)$ -$
(a) Depreciation expense for distribution assets is calculated using a group asset method. This method groups
like (similar) assets and depreciates them as a group (not as individual assets). An average cost recovery period
is determined for that group of assets and the depreciation is booked on a straight-line basis over the recovery
period. Assets are continually being added to the group and retired* from the group, so there is basically a
mixture of different vintage year assets in the group. Because of these changes, a depreciation rate study is
performed on a regular basis which reviews each group of assets and adjusts the group depreciation rate to
ensure recovery through the average remaining life of the group. The accumulated depreciation reserve is
allocated to the account level and the average remaining life is determined for each account at the time of the
study.
* In the group depreciation method, it is assumed that any asset retired is fully depreciated; hence, as assets are
retired from the group, the group gross plant balance is reduced and the group accumulated depreciation
reserve is also reduced by the same amount.
Attachment IPUC 13
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