25-7.046. Subcategories of Gas Plant for Depreciation

(1) The accounts under subsection (3) below are to be used in the design of depreciation rates. They are intended to group together items which are relatively homogeneous in their expected life and salvage characteristics. Reserve, mortality data, salvage and costs of removal shall be maintained accordingly for each depreciation category for which a depreciation rate is to be applied. This shall be done on the books of the company, or as a side record for depreciation study use only.

(2)(a) No company shall establish a new sub-account that would represent less than 10% of the original primary account unless it meets the following criteria:

1. Introduction of a new technology.

2. The present inclusion of an obsolescent/dying technology in a viable technology.

(b) Any company may further develop sub-accounts within the listed primary account as appropriate for its plant.

(3) The depreciation accounts listed below shall be in accordance with the Uniform System of Accounts for Natural Gas Companies (USOA) as found in the Code of Federal Regulations, Title 18, Subchapter F, Part 201, as revised April 1, 2013, which is incorporated by reference in subsection 25-7.014(1), F.A.C. New depreciation subaccounts shall be established under these accounts as listed in subsection 25-7.014(1), F.A.C.

(a) Local Storage Plant.

1. Structures and Improvements – (Account 361)

2. Gas Holders – (Account 362)

3. Other – (Account 363) – Equipment such as compressors, gauges and other instruments used in connection with the storage of gas in holders.

(b) Distribution Plant.

1. Structures and Improvements – (Account 375)

2. Mains – (Account 376) – The following sub-accounts shall be used:

a. Plastic

b. Other – cast iron, steel, etc.

3. Compressor Station Equipment – (Account 377)

4. Measuring and Regulating Equipment – General – (Account 378) – Equipment used in measuring and regulating gas in connection with distribution systems other than the measurements of gas deliveries to customers.

5. Measuring and Regulating Equipment – City Gate – (Account 379) – Equipment used in measuring of gas at entry points to distribution systems.

6. Services – (Account 380) – The following sub-accounts shall be used:

a. Plastic

b. Other – cast iron, steel, etc.

7. Meters – (Account 381)

8. Meter Installations – (Account 382)

9. Regulators – (Account 383)

10. Regulator Installations – (Account 384)

11. Industrial Measuring and Regulating Equipment – (Account 385)

12. Other Property on Customer’s Premises – (Account 386) – Investment of equipment owned by the company installed on the customer’s premises that is not includible in other accounts.

13. Other Equipment – (Account 387) – Investment in equipment used for the distribution system not included in any of the above accounts such as fire protection equipment, leak detectors, pipe locators.

(c) General Plant.

1. Structures and Improvements – (Account 390)

2. Office Furniture and Equipment – (Account 391) – The following sub-accounts shall be used:

a. Office Furniture – Regular office furniture and furnishings and miscellaneous equipment such as lounge equipment.

b. Office devices such as typewriters, calculating, reproducing, addressing, blueprinting, cash registers, check writers and other office machines.

c. Computers and peripheral equipment

3. Transportation Equipment – (Account 392) – The following sub-accounts shall be used:

a. Passenger cars and light trucks (trucks of one ton capacity or less)

b. Heavy trucks (trucks of greater than one ton capacity)

c. Special purpose vehicles such as trailers

d. Airplanes

4. Stores Equipment – (Account 393)

5. Tools, Shop and Garage Equipment – (Account 394)

6. Laboratory Equipment – (Account 395)

7. Power Operated Equipment – (Account 396)

8. Communication Equipment – (Account 397)

9. Miscellaneous Equipment – (Account 398) – Investment in miscellaneous equipment such as kitchen equipment, infirmary equipment.

(4) The accounts under subsection (3) shall be implemented as of the beginning of the next fiscal year following the adoption of this rule. As of that point in time:

(a) Reserve activity data, mortality activity data, salvage and costs of removal are to be recorded to these accounts for subsequent activity.

(b) The separation of embedded investments and reserves under prior accounts into balances relating to accounts under subsection (3) may require estimation. For accounts where vintage data is to be maintained, development of the vintaged distributions of those investments may require synthesization. Vintaged distribution of the reserves is not required.

(c) Where any existing accounts are compatible with those listed in subsection (3) for depreciation study purposes, those existing accounts shall be deemed to be in compliance with this rule.

Rulemaking Authority 350.127(2), 366.05(1) FS. Law Implemented 366.05(1), 366.06(1) FS. History–New 11-7-85, Formerly 25-7.46, Amended 4-28-16.