# 65-407 Ch. 68: Ch. 68: Water Utilities Depreciation Rates > Maine · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_68 ## Section - **Citation:** 65-407 Ch. 68 - **Heading:** Ch. 68: Water Utilities Depreciation Rates - **Jurisdiction:** Maine - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Code of Maine Rules / 65-407 Public Utilities Commission - General / Ch. 68 ## Text SUMMARY: This rule governs the essential information and procedures for estimating the depreciation rates for the plant of water utilities. 1. Definitions. A. Service Life - The average length of time a unit of equipment will remain in service taking into account factors such as the effect of normal wear and tear, economic and technological obsolescence and public requirements. B. Net Salvage Price - The price that the sale of a unit of equipment will bring upon the end of its useful service life to a utility, less the estimated cost of removal involved in retiring such property. C. Depreciation Rate - This rate is derived by using the following formula: 100% - Net Salvage Price as Annual Depreciation Rate = percent of original cost Service life (in years) 2. Except as provided in Section 3 the following are the maximum depreciation rates which will be allowed by the Commission for ratemaking and accounting purposes. MAXIMUM DEPRECIATION RATES WATER UTILITIES % STRUCTURES Brick, Concrete 2 Frame 3 IMPOUNDING DAMS & RESERVOIRS 1.3 SPRINGS & WELLS 2 INTAKES & SUCTION MAINS 1.5 PURIFICATION SYSTEM Filters (Mfg. in Place) 3 Filters (Package Plant) 3 Chlorinators 10 Chemical Feeders 10 Test Equipment 10 Other Related Equip. 5 PUMPING EQUIPMENT Electric 5 Gas & Oil 5 Hydraulic 5 TRANSMISSION MAINS 1.3 SUBMARINE MAINS 5 DISTRIBUTION MAINS 6" & Larger 1.3 4" & Smaller (Buried & Surface) 3 DISTRIBUTION RESERVOIRS 1 Floating Covers 2 STANDPIPES & TANKS Above Ground (Conc. & Steel) 1.7 Below Ground (Conc.) 1.3 SERVICES Copper 3 C.I. & D.I. (Large) 1.3 Plastic 3 METERS 4 Remote Readers 7.5 HYDRANTS 2 FOUNTAINS & TROUGHS 1 GENERAL EQUIPMENT Office-Electronic 12 Office Furniture 5 Shop 7 Stores 5 TRANSPORTATION Trucks 10 Cars & Pickups 20 Telephone 10 Radio 10 Laboratory 10 Misc ting Covers 2 STANDPIPES & TANKS Above Ground (Conc. & Steel) 1.7 Below Ground (Conc.) 1.3 SERVICES Copper 3 C.I. & D.I. (Large) 1.3 Plastic 3 METERS 4 Remote Readers 7.5 HYDRANTS 2 FOUNTAINS & TROUGHS 1 GENERAL EQUIPMENT Office-Electronic 12 Office Furniture 5 Shop 7 Stores 5 TRANSPORTATION Trucks 10 Cars & Pickups 20 Telephone 10 Radio 10 Laboratory 10 Misc. Construction 10 Garage 7 Utilities may continue to use rates previously allowed by the Commission until their next rate case after the effective date of this rule. 3. The Commission may allow a utility to use alternative depreciation rates which may be justified using on e or more of the methods described in two manuals published by the National Association of Regulatory Utility Commissioners, Public Utility Depreciation Practices (1968) and Depreciation Practices for Small Water Utilities (1979). Requests to use alternative depreciation rates may be ruled upon by the Director of the Technical Analysis Division, in consultation with the Director of the Finance Division whose decision shall be contained in a written order. This delegation of authority shall not affect the Commission's authority to rule upon requests or review the decision of the Director of Technical Analysis. ## Nearby sections - [65-407 Ch. 25 Ch. 25: Coin-Operated Telephone Service](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_25.md) - [65-407 Ch. 35 Ch. 35: Accounting Treatment for Area Lighting](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_35.md) - [65-407 Ch. 62 Ch. 62: Service Standards for Water Utilities](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_62.md) - [65-407 Ch. 63 Ch. 63: Major Construction Projects for Water Companies](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_63.md) - [65-407 Ch. 65 Ch. 65: Water Main Extension and Service Line Rule](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_65.md) - [65-407 Ch. 68 Ch. 68: Water Utilities Depreciation Rates](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_68.md) - [65-407 Ch. 69 Ch. 69: Determination of Fire Protection Revenues for Water Utilities](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_69.md) - [65-407 Ch. 83 Ch. 83: Political Activities, Institutional/Promotional Advertising, Allowances by Public Utilities](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_83.md) - [65-407 Ch. 89 Ch. 89: Confidentiality of Customer Records]](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_89.md) - [65-407 Ch. 110 Ch. 110: Rules of Practice and Procedure](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_110.md) - [65-407 Ch. 120 Ch. 120: Filing Requirements for Schedule of Rates, Terms and Conditions](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_120.md) - [65-407 Ch. 130 Ch. 130: Safety and Accident Reporting Requirements](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_130.md) - [65-407 Ch. 140 Ch. 140: Utility Service Area and Infrastructure Maps](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_140.md) - [65-407 Ch. 200 Ch. 200: Telecommunications Carrier Outage Reporting](https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_200.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ME_CMR_65_407_68. Check the current official text before relying on it. Not legal advice.