392.280. Depreciation account required--application for change, information required--ruling, when--minimum rates in lieu of fixed rates.

MISSOURI STATUTES AND CODES

392.280. Depreciation account required--application for change, information required--ruling, when--minimum rates in lieu of fixed rates.

Depreciation account required--application for change, informationrequired--ruling, when--minimum rates in lieu of fixed rates.

392.280. 1. The commission shall have power, afterhearing, to require any or all telecommunications companies tocarry a proper and adequate depreciation account in accordancewith such rules and regulations and in the forms of account asthe commission shall prescribe. The commission may, from time totime on its own motion or upon the application of thetelecommunications company or the office of the public counsel,ascertain and determine and by order fix the proper and adequaterates of depreciation of the several classes of property of suchpublic utility. Each telecommunications company shall conformits depreciation accounts to the rates so ascertained, determinedand fixed. Upon filing the application for a change indepreciation rates, the applicant must file with the commissionall information in justification of the depreciation ratechanges. The commission shall rule upon any request for a changein depreciation rates within twelve months of such request,unless a general rate proceeding is pending at the time set fordecision, in which case the commission may rule upon the requestfor a change in depreciation rates at the same time it rules uponthe general rate case proceeding.

2. Notwithstanding the provisions of subsection 1 of thissection, a telecommunications company may request the commissionto authorize minimum depreciation rates in lieu of fixed rates,and to record depreciation expense on the basis of depreciationrates in excess of such minimum rates. The reasonableness of anyrequest for an increase in the tariffed rates for noncompetitivetelecommunications service shall be considered on the basis ofthe minimum authorized depreciation rates, and the depreciationexpense attributed to any test period shall be calculated on thebasis of the company's minimum depreciation rates regardless ofthe depreciation expense actually recorded by thetelecommunications company. Where minimum depreciation rateshave been authorized pursuant to this subsection, the commissionmay prescribe new minimum depreciation rates in a general rateproceeding and use those new minimum depreciation rates todetermine the reasonableness of tariffed rates fortelecommunications service in that general rate proceeding. Inany proceeding to consider a request for an increase in thetariffed rates for telecommunications service, thetelecommunications company shall utilize for the purposes of suchproceeding the depreciation reserve levels which have occurred onthe basis of the recorded depreciation expenses.