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Wednesday, July 22, 2020 | History

2 edition of Regulation, valuation and depreciation of public utilities found in the catalog.

Regulation, valuation and depreciation of public utilities

Samuel S. Wyer

Regulation, valuation and depreciation of public utilities

by Samuel S. Wyer

  • 233 Want to read
  • 3 Currently reading

Published by Sears & Simpson company in Columbus, O .
Written in English

    Subjects:
  • Corporations -- Valuation.,
  • Public service commissions.

  • Edition Notes

    Statementby Samuel S. Wyer...
    Classifications
    LC ClassificationsHD2765 .W8
    The Physical Object
    Pagination313 p.
    Number of Pages313
    ID Numbers
    Open LibraryOL6554427M
    LC Control Number13002871
    OCLC/WorldCa2613582

    In The Regulation of Public Utilities: Theory and Practice, a small discussion of CIAC concludes essentially that, "For ratemaking purposes, the commissions generally deduct customer advances for construction from a utility's rate base, although utilities have always been allowed to include depreciation on contributed property as a legitimate. }unoui04}!-| THE VALUATION OF PUBLIC UTILITIES WITH SPECIAL REFERENCE TO GAS AND ELECTRIC PROPERTIES BY PAUL THELEN Assistant Engineer, California Railroad Commission UNIVERSITY OF CALIFORNIA PRESS BERKELEY THE VALUATION OF PUBLIC UTILITIES* SYLLABUS Introduction — purpose and seoiie of paper.

    The tax regulations specify the useful life of assets but also allow for accelerated depreciation or the immediate expensing of certain amounts on some companies' tax returns. There is no regulation that requires the tax depreciation to be the same as the book depreciation in a . 8 BASIC REGULATORY CONCEPTS n Public Interest n In the eye of the beholder n Regulators generally take the longer term view – rather than thinking that lower rates are always best for customers n Consider service as well as price n Used and Useful n The property, asset, or other investment is deemed to be in service, or is providing a benefit to customers at the current.

    Downloadable (with restrictions)! Capital charges constitute the major share of costs in regulated network industries; in regulatory practice, however, no universally accepted method of depreciation exists. This paper compares the most commonly used asset valuation and depreciation methods according to their provision of adequate investment incentives, their Cited by: 3. 4 A. Yes. I have conducted depreciation studies and filed testimony or testified on 5 depreciation and valuation issues before the New Mexico Public Regulation 6 Commission (“Commission”), the Public Utility Commission of Texas, and 7 numerous other regulatory bodies. A list of proceedings in which I have provided.


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Regulation, valuation and depreciation of public utilities by Samuel S. Wyer Download PDF EPUB FB2

Excerpt from Regulation, Valuation and Depreciation of Public Utilities The net income of a coporation for dividend purposes cannot be determined until all taxes, depreciation, maintenance and up-keep expenditures have been deducted, 'otherwise the dividend is not paid from the earnings, but by a depreciation of the capital : Samuel S.

Wyer. Regulation, valuation and depreciation of public utilities. Columbus, O., Sears & Simpson Co. [©] (OCoLC) Named Person: His Royal Highness Prince Mahidol of Songkla: Document Type: Book: All Authors / Contributors: Samuel S Wyer.

Get this from a library. Regulation, valuation and depreciation of public utilities. [Samuel S Wyer]. Full text of "Regulation, valuation and depreciation of public utilities" See other formats.

Historically, net book cost or rate base have established the fair market value by taking into consideration depreciation. Now, deregulation has caused adjustments to this utility valuation technique resulting in the necessity for companies to reassess previously appraised utilities.

Without regulation, the industry will see an increase in. Public Utility Depreciation Practices [Depreciation Subcommittee of The NARUC Committee on Engineering, Depreciation and Valuation of the National Association of Regulatory Utility Commission] on *FREE* shipping on qualifying offers.

4/5(1). For appraisal purposes, depreciation is defined as the loss in value due to any cause, including internal and external factors. The depreciation reserve subtracted from historical cost for rate base regulated utilities is based on the depreciation rates and methods established by the appropriate rate or tariff-setting regulatory agency.

6File Size: 1MB. Hyman, America's Electric Utilities: Past, Present and Future (5th ed. ) (“The book depreciation rate is a straight line rate for most utility companies.”); accord Depreciation Subcommittee of the NARUC Committee on Engineering, Depreciation, and Valuation of the National Association of Regulatory Utility Commissioners, Public.

For monopoly utilities, it also includes already-recovered cumulative depreciation costs in a "depreciation reserve" account combining. Depreciation The Concept of Depreciation Regarding Public Utilities The depreciation of physical structures, even the wear and tear of tools, has been recognized as a fact of mechanical life ever since the First Century B.C.

However, general acceptance of the principle of depreciation and the practice of deductingFile Size: 15KB. We restrict our analysis to depreciation and interest, as they are the fundamental cost factors in network industries.

1 The depreciation method not only determines depreciation cost but also drives the remaining book value and interest cost. Consequently, the choice of depreciation method determines the time path of regulated prices to a Cited by: 3.

Taxation of Public Utilities is the first comprehensive treatise ever published on the public utility industry's unique tax problems. It thoroughly explains and analyzes the complex interplay of the Internal Revenue Code, the financial accounting rules, and the regulatory and ratemaking process.

Highlights include: • Normalization rules • Contributions in aid of. The Regulation of Public Utilities: Theory and Practice capital charges Comm commission common competition concept considered construction consumers cost Court customers decision demand depreciation determined earnings economic effect efficiency electric Energy established existing expenses fact fair Federal firms fuel holding Ibid.

In Public Power, We Talk About “Ratepayer Owners” • Ownership/Control Structures Vary in Public Power • City, District, Authority, Board Owners Could Chose to Reduce Rates With Excess $$ Or Use Funds for Other Purposes Ratemaking Will be Much Different Under Regulation Merger Math: Valuation Methodologies and Metrics.

The major difference between book income and taxable income is depreciation expense. Accelerated depreciation is used for income tax purposes while normal depreciation (based on the useful life of the plant) is used to set electricity rates.

18 Comparison of Book Depreciation to Tax Depreciation 0 20, 40, 60, 80, Throughout this book an effort has been made to relate appraisal procedures employed in the valuation of railroad and utility property to each of the generally accepted appraisal principles.

There are, however, certain differences in applying what are commonly regarded as standard appraisal methods and by: 2. Printed in Great Britain $+ Determining the regulatory asset base for utility price regulation David M Newbery Price controls for regulated utilities determine the revenue streams, which cover costs, returns to shareholders and depreciation of by: depreciation to be deducted in valuation constitutes one of the most important problems of public utility regulation under normal circumstances.

Deprecia-tion expense, on the average, takes up approximately ten per cent of the operating revenues of gas and electric utilities and a somewhat larger percentage of the revenues of telephone utilities. Hyman, America's Electric Utilities: Past, Present and Future (5th ed.

) (``The book depreciation rate is a straight line rate for most utility companies.''); accord Depreciation Subcommittee of the NARUC Committee on Engineering, Depreciation, and Valuation of the National Association of Regulatory Utility Commissioners, Public. Regulated utilities are allowed to recover their cost to do business and earn a return on invested capital.

Expressed as a formula this is the revenue requirement: R = Oc + (V-D)rr. where: R = Revenue justified by cost and return. Oc = Operating cost including depreciation.

V = Value, always first costs. D = Depreciation. Depreciation methods are used for allocating acquisition costs of long-lived assets to individual years that benefit from those assets, e. g., in connection with product pricing and regulation of.1Asset Valuation in a Transitioning Electric Florida Public Service Commission.

2A capital carrying charge is something of a regulatory construct to act as a proxy for fixed is a fixed percentage rate assigned to assets that represents the annual expenses of owning an Size: 21KB.valuation of regulatory assets on the balance sheets of regulated public utilities.

The attention of the SEC and the FASB to the issue of regulatory assets suggests that (1) the recorded value of these assets may exceed their realizable value, and (2) the overstatements are significant enough to warrant action by accounting rule makers.