Notice2023-25288

Publication of Depreciation Rates for Telecommunications Plant

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 16, 2023

Issuing agencies

Agriculture DepartmentRural Utilities Service

Abstract

The United States Department of Agriculture (USDA) Rural Utilities Service (RUS) administers rural utilities programs, including the Telecommunications Program. Through this notice, RUS is announcing the depreciation rates for telecommunication/broadband facilities and a new process for providing these rates going forward.

Full Text

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<title>Federal Register, Volume 88 Issue 220 (Thursday, November 16, 2023)</title>
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[Federal Register Volume 88, Number 220 (Thursday, November 16, 2023)]
[Notices]
[Pages 78719-78721]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25288]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

[Docket No. RUS-23-Telecom-0023]


Publication of Depreciation Rates for Telecommunications Plant

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice.

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SUMMARY: The United States Department of Agriculture (USDA) Rural 
Utilities Service (RUS) administers rural utilities programs, including 
the Telecommunications Program. Through this notice, RUS is announcing 
the

[[Page 78720]]

depreciation rates for telecommunication/broadband facilities and a new 
process for providing these rates going forward.

DATES: These rates are effective immediately and will remain in effect 
until superseded by subsequent rates as identified in the SUPPLEMENTARY 
INFORMATION section below. These rates are to be used in applying for 
financial assistance from RUS.

FOR FURTHER INFORMATION CONTACT: Laurel Leverrier, Assistant 
Administrator, Telecommunications Program, Rural Utilities Service, 
STOP 1590--Room 4121, 1400 Independence Avenue SW, Washington, DC 
20250-1590. Telephone: (202) 720-9556.

SUPPLEMENTARY INFORMATION: RUS is publishing its median depreciation 
rates for telecommunication/broadband facilities. If an applicant for 
RUS financial assistance does not have depreciation rates approved by 
their respective Public Utilities Commission (PUC) or equivalent, these 
depreciation rates are to be used in the financial studies supporting 
the application and for determining the amortization period for any 
loan component. RUS will no longer publish these rates in the Federal 
Register. There will be an option in the RUS on-line application system 
that allows applicants to use PUC approved depreciation rates or 
default to the RUS median depreciation rates reflected in the system. 
The following chart comprises the median depreciation rates:

                                            Median Depreciation Rates
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            Code                     Group                   Letter                    Type           Rate  (%)
----------------------------------------------------------------------------------------------------------------
1000.......................  1. Network & Access    a.......................  Switching Equipment..         9.30
                              Equipment.
1001.......................  1. Network & Access    b.......................  Routing Equipment....        10.00
                              Equipment.
1002.......................  1. Network & Access    c.......................  Transport Equipment..        10.00
                              Equipment.
1003.......................  1. Network & Access    d.......................  Access Equipment.....        10.00
                              Equipment.
1004.......................  1. Network & Access    e.......................  Video Equipment......         9.61
                              Equipment.
1005.......................  1. Network & Access    f.......................  Power Equipment......        10.00
                              Equipment.
1006.......................  1. Network & Access    g.......................  Satellite Equipment..         9.26
                              Equipment.
1007.......................  1. Network & Access    h.......................  Other (specify)......        10.00
                              Equipment.
2000.......................  2. Outside Plant.....  a.......................  Copper Cable--Aerial.         6.00
2001.......................  2. Outside Plant.....  b.......................  Copper Cable--Buried.         5.15
2002.......................  2. Outside Plant.....  c.......................  Copper Cable--                5.00
                                                                               Underground.
2003.......................  2. Outside Plant.....  d.......................  Coaxial Cable--Aerial         6.00
2004.......................  2. Outside Plant.....  e.......................  Coaxial Cable--Buried         5.15
2005.......................  2. Outside Plant.....  f.......................  Coaxial Cable--               5.00
                                                                               Underground.
2006.......................  2. Outside Plant.....  g.......................  Fiber Cable--Aerial..         5.40
2007.......................  2. Outside Plant.....  h.......................  Fiber--Buried........         5.00
2008.......................  2. Outside Plant.....  i.......................  Fiber--Underground            5.00
                                                                               Cable.
2009.......................  2. Outside Plant.....  j.......................  Fiber--Submarine              5.00
                                                                               Cable.
2010.......................  2. Outside Plant.....  k.......................  Conduit Systems......         4.00
2011.......................  2. Outside Plant.....  l.......................  Ducts (Vacant).......         5.00
2012.......................  2. Outside Plant.....  m.......................  Drops................         5.00
2013.......................  2. Outside Plant.....  n.......................  Cabinets/underground          5.00
                                                                               vaults.
2014.......................  2. Outside Plant.....  o.......................  Poles................         6.35
2015.......................  2. Outside Plant.....  p.......................  Make-ready...........         5.00
2016.......................  2. Outside Plant.....  q.......................  Other (specify)......         5.00
3000.......................  3. Buildings.........  a.......................  New Construction.....         3.30
3001.......................  3. Buildings.........  b.......................  Pre-Fab Huts.........         3.30
3002.......................  3. Buildings.........  c.......................  Improvements.........         3.30
3003.......................  3. Buildings.........  d.......................  Other (specify)......         3.30
4001.......................  4. Towers............  a.......................  Guyed Towers.........         5.00
4002.......................  4. Towers............  b.......................  Lattice Towers.......         5.00
4003.......................  4. Towers............  c.......................  Monopole/Self-                5.00
                                                                               Supporting Tower.
4004.......................  4. Towers............  d.......................  Wood poles...........         5.00
4005.......................  4. Towers............  e.......................  Improvements.........         5.00
4006.......................  4. Towers............  f.......................  Other (specify)......         5.00
5000.......................  5. Customer Premises   a.......................  Video Set Top Boxes..        12.00
                              Equipment.
5001.......................  5. Customer Premises   b.......................  Modems and Routers...        12.00
                              Equipment.
5002.......................  5. Customer Premises   c.......................  Inside Wiring........        10.40
                              Equipment.
5003.......................  5. Customer Premises   d.......................  Multi-Terminal               11.33
                              Equipment.                                       Adapter (VoIP).
5004.......................  5. Customer Premises   e.......................  Smart Meters.........        11.00
                              Equipment.
5005.......................  5. Customer Premises   f.......................  Other (specify)......        12.00
                              Equipment.
6000.......................  6. Support Assets....  a.......................  Construction Vehicles        10.00
6001.......................  6. Support Assets....  b.......................  Construction                 10.00
                                                                               Equipment.
6002.......................  6. Support Assets....  c.......................  Motor Vehicles.......        17.00
6003.......................  6. Support Assets....  d.......................  Special Purpose              11.40
                                                                               Vehicles.
6004.......................  6. Support Assets....  e.......................  Office Equipment.....        10.00
6005.......................  6. Support Assets....  f.......................  Office Furniture.....        10.00
6006.......................  6. Support Assets....  g.......................  Billing System.......        20.00
6007.......................  6. Support Assets....  h.......................  Test Equipment.......        10.00
6008.......................  6. Support Assets....  i.......................  Portable Generators..        10.00
6009.......................  6. Support Assets....  j.......................  Tools................        10.00
6010.......................  6. Support Assets....  k.......................  Other (specify)......        10.00
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[[Page 78721]]

Andrew Berke,
Administrator, Rural Utilities Service.
[FR Doc. 2023-25288 Filed 11-15-23; 8:45 am]
BILLING CODE 3410-15-P


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Indexed from Federal Register on November 16, 2023.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.