Depreciation is a matter of valuation and of the determination of the cost of rendering public service. It is only incidentally related to replacements, and accounting for depreciation will not necessarily provide for replacements. Since depreciation does have to do primarily with valuation and determination of the cost of rendering service, and since capital devoted to public utility use is subject to regulation, it would seem that consistency in principles is not only desirable but attainable. It is the purpose of this article to examine the cases decided by the courts and by the regulatory commissions of the various jurisdictions to determine the manner in which this consistency may be achieved.
Robert D. Haun,
INCONSISTENCIES IN PUBLIC UTILITY DEPRECIATION,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol38/iss2/3