2020-03234. Publication of Depreciation Rates

AGENCY:

Rural Utilities Service, USDA.

ACTION:

Notice of depreciation rates for telecommunications plant.

SUMMARY:

The United States Department of Agriculture (USDA) Rural Utilities Service (RUS) administers rural utilities programs, including the Telecommunications Program. RUS announces the depreciation rates for telecommunications plant for the period ending December 31, 2018.

DATES:

These rates are effective immediately and will remain in effect until rates are available for the period ending December 31, 2019.

FOR FURTHER INFORMATION CONTACT:

Chad Parker, Assistant Administrator, Telecommunications Program, Rural Utilities Service, STOP 1590—Room 5151, 1400 Independence Avenue SW, Washington, DC 20250-1590. Telephone: [phone].

SUPPLEMENTARY INFORMATION:

In 7 CFR part 1737, Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans, § 1737.70(e) explains the depreciation rates that are used by RUS in its feasibility studies. Given that approved depreciation rates per § 1737.70(e)(1) do not exist, RUS is publishing its annual median depreciation rates for all borrowers, in accordance with § 1737.70(e)(2). RUS also notes that the rates have changed only minimally from the previous year. The following chart provides those rates, compiled by RUS, for the reporting period ending December 31, 2018:

Median Depreciation Rates of Rural Utilities Service Borrowers

[By equipment category for period ending December 31, 2018]

Telecommunications plant category	Depreciation rate
1. Land and Support Assets:
a. Motor vehicles	16.67
b. Aircraft	10.10
c. Special purpose vehicles	12.00
d. Garage and other work equipment	10.00
e. Buildings	3.30
f. Furniture and office equipment	10.00
g. General purpose computers	20.00
2. Central Office Switching:
a. Digital	9.30
b. Analog & Electro-mechanical	9.80
c. Operator Systems	9.32
3. Central Office Transmission:
a. Radio Systems	10.00
b. Circuit equipment	10.00
4. Information origination/termination:
a. Station apparatus	11.95
b. Customer premises wiring	10.00
c. Large private branch exchanges	11.40
d. Public telephone terminal	11.65
e. Other terminal equipment	10.00
5. Cable and wire facilities:
a. Aerial cable—poles	6.00
b. Aerial cable—metal	6.00
c. Aerial cable—fiber	5.10
d. Underground cable—metal	5.00
e. Underground cable—fiber	5.00
f. Buried cable—metal	5.15
g. Buried cable—fiber	5.00
h. Conduit systems	4.00
i. Other	5.00

Chad Rupe,

Administrator, Rural Utilities Service.