65-407-68 Me. Code R. § 1

Current through 2024-25, June 19, 2024

Section 407-68-1 - Definitions

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:

Annual Depreciation Rate = 100% - Net Salvage Price as percent of original cost/Service life (in years)

65-407 C.M.R. ch. 68, § 1