2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 17 - Accounting and Budgetary Matters
1703 - Depreciation accounts; reports.

     § 1703.  Depreciation accounts; reports.
        (a)  Accounts.--Every public utility shall carry on its books
     or records of account, proper and reasonable sums representing
     the annual depreciation on its property used or useful in the
     public service, which sums shall be based upon the average
     estimated life of each of the several units or classes of
     depreciable property. The commission, by appropriate order,
     after hearing, shall, except where found to be inappropriate,
     establish for each class of public utilities, the units of
     depreciable property, the loss upon the retirement of which
     shall be charged to the depreciation reserve.
        (b)  Statements.--Every public utility shall file with the
     commission, at such times and in such form as the commission may
     prescribe, statements setting forth the details supporting its
     computation of annual depreciation, as recorded on the books or
     records of accounts of the public utility. If the commission,
     upon review of such statements, is of the opinion that the
     amount of annual depreciation so recorded by any public utility
     is not reasonable and proper, it may, after hearing, require
     that provision be made for annual depreciation in such sums as
     may be found by it to be reasonable and proper. In making its
     findings, the commission shall give consideration to the
     experience of the public utility, and the predecessors of the
     public utility in accumulating depreciation reserves, the
     retirements actually made, and such other factors as may be
     deemed relevant.
        (c)  Use of estimates.--The commission shall not be bound in
     rate proceedings to accept, as just and reasonable for rate-
     making purposes, estimates of annual depreciation established
     under the provisions of this section, but in such rate
     proceedings it shall give consideration to statements submitted
     under this section, in addition to such other factors as may be
     relevant.

        Cross References.  Section 1703 is referred to in section
     1706 of this title.