HomeMy WebLinkAbout9-2 Attachment - Annual Cost of OwnershipATTACHMENT 2
Truckee Donner PUD Annual Cost Space
Occupied
Net Pole
Investment 85%
Annual Cost of Ownership per Foot of
Usable Space (13.5 ft)Per Foot Usable
Space
Total Number
of Poles
Annual Cost 1 $4,959,566 85%32.48%
Per Foot 13.5 5,442
Space Occupied ft. = 1
Usable Space ft. =13.5 Annual Cost of Ownership
Per Foot =$19
Net Pole Investment $4,959,566 $911 per pole with appurtenances
Account 364 = $18,065,003
Account 108 Depr.=$13,105,438
Accum Def. Income Tax = $0.00
Total Number of Poles from Account 364 units 5,442
An adjustment to a utility's net pole investment 0.85 $775 per pole without appurtenances
(15% for electric utilities) is necessary to eliminate
the investment in crossarms and other non-pole
related items.
Carrying Charge Rate 32.48%
Administrative Element 5.50%
Total General and Admin. From 12/31/13 Fin. Report $2,339,169
Gross Plant $61,443,787
Accumulated Depr. (Acct 108)$18,908,019
Accumulated Deferred Taxes -
Maintenance Element 1.95%
Account 593 From 12/31/13 Financial Report $209,980
Account 364 Poles $18,065,003
Account 365 OH Conductors & Devices $6,773,310
Account 369 Services $2,075,367
Accumulated Depreciation of Account 364 $13,105,438
Accumulated Depreciation of Account 365 $2,360,216
Accumulated Depreciation of Account 369 $667,109
Accumulated Deferred Income Tax $0
Depreciation Element 11.04%
Gross Pole Investment (Account 364)$18,065,003
Net Pole Investment (Account 364-Account 108)$4,959,566
Depreciation Rate for Gross Pole Inventory *3%
* 33 Year Life from Accounting
Cost of Borrowing 4.00%
Required Rate of Return 10.00%
CPUC Formula
multiplied by a carrying charge.
x x x=
=x x x
Carrying
Charge
Rate
The CPUC formula is really just a version of the FCC formula. The 7.4% of the annual cost of ownership for the pole comes from Space Occupied divided
by the Usable Space on a pole or 1/13.5 feet. The annual cost of the pole could be defined as the Net Pole Investment divided by number of poles