This course is intended for the depreciation practitioner as well as managers seeking an overview of issues related to utility ratemaking and depreciation analysis. This course includes the new class requested by our members: AI and Generative AI. This new class begins with an overview of AI and AI’s impact on utilities. The class then discusses the implications of AI for depreciation of electric utilities and the conduct of depreciation studies.

To begin the course, a former FERC Commissioner gives a fascinating explanation of how depreciation fits in the process of utility ratemaking. (A more extensive discussion of utility ratemaking is provided in our Midweek Training course: Utility Ratemaking – History, Revenue Requirements, and Process.) This Sunday course ends with a discussion of current issues including those currently before regulators, decarbonization, electric vehicles and battery storage, and topics suggested by attendees.

There is ample opportunity during class and at an informal evening reception to ask questions of the expert instructors and network with fellow attendees from utilities, state and Federal commissions, and consulting firms. This course may be repeated for a review of depreciation regulation and current issues. You will receive up to 6 CPEs for this course and additional CPEs if you attend Extended Training. This course has No Prerequisites. 

This course examines how the components of net salvage (gross salvage and cost of removal) are recorded to accumulated depreciation, analyzed using statistical techniques, and estimated and used in the calculation of annual and accrued depreciation. You will discuss activities that contribute to net salvage and how they are impacted by the causes of retirement.  

Net salvage transactions will be analyzed in relation to the original cost and current cost of the retired assets. The estimation of net salvage for mass and life-span properties will be discussed. You will also discuss adjustments for the age of the retired asset and inflation. The course will bring you up to date on current issues involving net salvage including Asset Retirement Obligations (AROs). 

Ample opportunity is provided during class and at informal evening receptions to ask questions of the expert instructors and network with fellow attendees from utilities, state and Federal commissions, and consulting firms. This course may be repeated for valuable preparation for the net salvage analyses you perform or review at work. You will receive up to 22 CPEs for this course and additional CPEs if you also attend Sunday Training. 

Prerequisite: Depreciation Fundamentals (or permission from Dr. Susan Jensen based on your qualifying experience or courses). 

This course explains and probes life analysis models. After a brief review of actuarial and simulation life analysis models, pitfalls of the models are discussed. You will then apply the models to real-world data and our experts will provide valuable insights to help you interpret the results of the models. The Life Span model will also be explained and applied. In Engineering Aspects of Life Analyses you examine engineering reasons that cause assets to fail or be replaced. 

the tools to help you transform life analysis results into life forecasts. Applying Service Life Estimates to Depreciation completes the cycle by showing you how average service lives and average remaining lives are used to calculate depreciation rates. This class also includes a well received segment on the weighting of remaining lives. 

Ample opportunity is provided during class and at informal evening receptions to ask questions of the expert instructors and network with fellow attendees from utilities, state and Federal commissions, and consulting firms. This course may be repeated for valuable case study practice and preparation for the life analyses you perform or review in your job.  

You will receive up to 22 CPEs for this course and additional CPEs if you also attend Sunday Training. Prerequisite: Depreciation Fundamentals (or permission from Dr. Susan Jensen based on your qualifying experience or courses).