Report on the appropriate treatment of accrued depreciation

Provided a report on behalf of Progress Energy Florida, Inc., on the appropriate treatment of accrued depreciation expense for an asset whose expected life had been extended by 20 years. Report countered the request by intervenors to “reverse” the accrued deprecation. The report noted that the request would actually increase costs to customers in the long term and would likely lead to a credit rating decrease for the utility because of the reduction in cash flow. The Florida Public Service Commission denied the intervenor’s request.