06-8323. Publication of Depreciation Rates

AGENCY:

Rural Utilities Service, USDA.

ACTION:

Notice.

SUMMARY:

The Rural Utilities Service (RUS), an agency delivering the U.S. Department of Agriculture's Rural Development Utilities Programs, hereby announces the depreciation rates for telecommunications plant for the period ending December 31, 2005.

DATES:

These rates are effective immediately and will remain in effect until rates are available for the period ending December 31, 2006.

FOR FURTHER INFORMATION CONTACT:

Jonathan P. Claffey, Deputy Assistant Administrator, Telecommunications Program, Rural Development Utilities Programs, STOP 1590—Room 5151, 1400 Independence Avenue, SW., Washington, DC 20250-1590. Telephone: [phone].

SUPPLEMENTARY INFORMATION:

In the USDA Rural Development regulation 7 CFR part 1737, Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans, section 1737.70(e) explains the depreciation rates that are used by USDA Rural Development in its feasibility studies. Section 1737.70(e)(2) refers to median depreciation rates published by USDA Rural Development for all borrowers. The following chart provides those rates, compiled by USDA Rural Development, for the reporting period ending December 31, 2005:

Median Depreciation Rates of USDA Rural Development Borrowers by Equipment Category for Period Ending December 31, 2005

Telecommunications plant category	Depreciation rate
1. Land and Support Assets:
a. Motor Vehicles	16.00
b. Aircraft	10.00
c. Special purpose vehicles	12.00
d. Garage and other work equipment	10.00
e. Buildings	3.20
f. Furniture and Office equipment	10.00
g. General purpose computers	20.00
2. Central Office Switching:
a. Digital	8.45
b. Analog & Electro-mechanical	10.00
c. Operator Systems	10.00
3. Central Office Transmission:
a. Radio Systems	9.24
b. Circuit equipment	10.00
4. Information origination/termination:
a. Station apparatus	12.00
b. Customer premises wiring	10.00
c. Large private branch exchanges	12.50
d. Public telephone terminal equipment	11.40
e. Other terminal equipment	10.35
5. Cable and wire facilities:
a. Aerial cable—Poles	6.37
b. Aerial cable—Metal	5.90
c. Aerial cable—Fiber	5.10
d. Underground cable—Metal	5.00
e. Underground cable—Fiber	5.00
f. Buried cable—Metal	5.00
g. Buried cable—Fiber	5.00
h. Conduit systems	3.33
i. Other	8.34

Dated: September 22, 2006.

James M. Andrew,

Administrator, Rural Utilities Service.