Gas Pipeline Uniform Accounting Regulations

54 (1) As soon as the information can be assembled, a company shall file with the Board depreciation rates estimated to be appropriate for each group of plant accounts, each plant account or each group of assets within a plant account.

(2) The rates referred to in subsection (1) shall be based on the service value and estimated service life of plant, as developed by a study of the company’s history and experience and such engineering and other information as may be available with respect to future operating conditions.

(3) The rates referred to in subsection (1) shall be established to produce a charge for depreciation equal to the sum of the amounts that would otherwise be chargeable as depreciation for each of the various classes of plant included in a group of plant accounts, for each plant account or for each group of assets within a plant account.

(4) The rates referred to in subsection (1) may be developed by a company by the method deemed most appropriate for the portrayal of the depreciation experienced and, when filed, shall be accompanied by a statement showing their basis and the methods employed in their computation.

(5) A company shall, at any time, upon direction of the Board, conduct a study on the suitability of depreciation rates in use in the light of the company’s history and available engineering data, and shall submit to the Board for approval a report of the results of such study together with recommendations for any desired changes in depreciation rates.