Publication of Depreciation Rates

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Federal RegisterSep 21, 2016
81 Fed. Reg. 64869 (Sep. 21, 2016)

AGENCY:

Rural Utilities Service, USDA.

ACTION:

Notice of depreciation rates for telecommunications plant.

SUMMARY:

The United States Department of Agriculture (USDA) Rural Utilities Service (RUS) administers rural utilities programs, including the Telecommunications Program. RUS announces the depreciation rates for telecommunications plant for the period ending December 31, 2015.

DATES:

These rates are effective immediately and will remain in effect until rates are available for the period ending December 31, 2016.

FOR FURTHER INFORMATION CONTACT:

Keith B. Adams, Assistant Administrator, Telecommunications Program, Rural Utilities Service, STOP 1590—Room 5151, 1400 Independence Avenue SW., Washington, DC 20250-1590. Telephone: (202) 720-9556.

SUPPLEMENTARY INFORMATION:

In 7 CFR part 1737, Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans, § 1737.70(e) explains the depreciation rates that are used by RUS in its feasibility studies. Section 1737.70(e)(2) refers to median depreciation rates published by RUS for all borrowers. The following chart provides those rates, compiled by RUS, for the reporting period ending December 31, 2015:

Median Depreciation Rates of Rural Utilities Service Borrowers by Equipment Category for Period Ending December 31, 2015

Telecommunications plant category Depreciation rate
1. Land and Support Assets:
a. Motor vehicles 16.00
b. Aircraft 11.25
c. Special purpose vehicles 12.00
d. Garage and other work equipment 10.00
e. Buildings 3.30
f. Furniture and office equipment 10.00
g. General purpose computers 20.00
2. Central Office Switching:
a. Digital 9.70
b. Analog & Electro-mechanical 10.00
c. Operator Systems 9.90
3. Central Office Transmission:
a. Radio Systems 10.00
b. Circuit equipment 10.00
4. Information origination/termination:
a. Station apparatus 12.00
b. Customer premises wiring 10.65
c. Large private branch exchanges 10.96
d. Public telephone terminal equipment 12.00
e. Other terminal equipment 10.35
5. Cable and wire facilities:
a. Aerial cable—poles 6.42
b. Aerial cable—metal 5.90
c. Aerial cable—fiber 5.00
d. Underground cable—metal 5.00
e. Underground cable—fiber 5.00
f. Buried cable—metal 5.15
g. Buried cable—fiber 5.00
h. Conduit systems 3.93
i. Other 5.00

Dated: September 13, 2016.

Brandon McBride,

Administrator, Rural Utilities Service.

[FR Doc. 2016-22747 Filed 9-20-16; 8:45 am]

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