FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

SCOPE
FORTISBC, INC.
DEPRECIATION STUDY
CALCULATED ANNUAL DEPRECIATION ACCRUAL RATES
APPLICABLE TO PLANT IN SERVICE
AT DECEMBER 31, 2009
PART I. INTRODUCTION
This report sets forth the results of the depreciation study conducted for the electric
generation, transmission and distribution assets of FortisBC, Inc. (“Fortis”) to determine the
annual depreciation accrual rates and amounts for ratemaking purposes applicable to the
original cost of plant at December 31, 2009.
The depreciation accrual rates presented herein are based on generally-accepted
methods and procedures for calculating depreciation. The estimated survivor curves and
estimated net salvage percents used in this report are based on studies incorporating data
through 2009.
Part I, Introduction, contains statements with respect to the scope of the report and
the basis of the study. Part II, Methods Used in the Estimation of Depreciation, presents
the methods used in the estimation of average service lives, survivor curves and net
salvage and in the calculation of depreciation. Part III, Results of Study, presents a
summary of annual depreciation. Parts IV through VI, present the statistical analyses of
service lives, net salvage estimates, and the detailed tabulations of annual depreciation,
respectively.
Appendix BCUC IR1 69.4