§825a Rates of Depreciation; Notice to State Authorities Before Fixing

Summary

The Commission can, after a hearing, require licensees and public utilities to keep proper depreciation accounts and can set the correct depreciation rates for each type of property. Those companies must use the accounts and rates the Commission sets. They cannot charge depreciation for property types or at percentage rates different from what the Commission orders, and they cannot list the same depreciation cost more than once in their expenses. Before making rules about accounts or depreciation rates, the Commission must notify any State commission that has authority over a utility, give it a fair chance to comment, and consider its views. A State commission still has the power under its own jurisdiction to decide what depreciation rates it will allow when setting a utility’s rates or charges.