DEPRECIATION OF DAMS, POWER PLANTS AND SUBSTATIONS REGULATION 395/99 [REPEALED]
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1 PDF Version [Printer-friendly - ideal for printing entire document] DEPRECIATION OF DAMS, POWER PLANTS AND SUBSTATIONS REGULATION 395/99 [REPEALED] Published by Updated To: [includes B.C. Reg. 243/2014 amendments (effective December 22, 2014)] Important: Printing multiple copies of a statute or regulation for the purpose of distribution without the written consent of is strictly prohibited. Quickscribe offers a convenient and economical updating service for those who wish to maintain a current collection of hard copy legislation. Go to for more details. B.C. Reg. 395/99 [Repealed March Go 2, 2016 to by B.C. Reg. 53/2016] to view the Terms of Use.
2 DEPRECIATION OF DAMS, POWER PLANTS AND SUBSTATIONS REGULATION 395/99 [REPEALED] B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Reg. 53/2016] [includes B.C. Reg. 243/2014 amendments (effective December 22, 2014)] Contents 1. Definitions 2. Determining depreciation 3. Maximum depreciation 4. Closure allowances 5. Rounding down amounts SCHEDULE A SCHEDULE B SCHEDULE C [Provisions of the Assessment Act, RSBC 1996, c. 20, relevant to the enactment of this regulation: sections 20.1, 22.1 and 74] Definitions 1. In this regulation: "Act" means the Assessment Act; "chronological age" means the number of years determined by subtracting from the year in which the new assessment roll is completed (a) the year in which the electrical power generating facility first commenced operation, or (b) in the case of an improvement or part of an improvement that was constructed or installed after the electrical power generating facility commenced operation, the year in which the construction or installation of the improvement or part of it was completed; "effective age" means the number of years determined by (a) calculating the total cost of the electrical power generating facility improvement, (b) multiplying the chronological age of each part of the improvement by the cost of that part to give the weighted age of that part, (c) (d) adding the weighted ages of all of the parts of the improvement, and dividing the sum of the weighted ages by the total cost of the improvements and rounding the quotient up to the next whole year to yield the effective age; "electrical power generating facility" means a dam, power plant or substation, each as defined in section 20.1 of the Assessment Act, but does not include an industrial improvement B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 2 of 53/2016] 15
3 (ADD) Nov 04/11 as defined in section 20 of the Assessment Act; "wind power plant" means a power plant that uses a wind turbine to generate or supply electricity from the wind. [am. B.C. Reg. 192/2011.] Determining depreciation 2. (1) For the purposes of section 20.1 of the Act, (a) dam and power plant improvements must be depreciated according to the following formula: (b) where (i) depreciation = annual depreciation X age "annual depreciation rate" is the percentage rate set out in Schedule A or B for the category of improvement within a dam or power plant, and (ii) "age" is the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement, and substation improvements must be depreciated according to the following formula: depreciation = depreciation percentage X age where (i) "depreciation percentage" is the rate set out in Schedule C for a specified age of a substation, and (ii) "age" is the chronological age or, if parts of an improvement have different chronological ages, the effective age of the improvement. (2) Despite subsection (1) and section 3, the costs of the improvements at each of the following locations must be reduced by 15 before application of the depreciation determined otherwise under this regulation: (a) Lower Bonnington Plant #1; (b) Upper Bonnington Plant #2; (c) South Slocan Plant #3; (d) Corra Linn Plant #4. (3) Despite subsection (1) and sections 3 and 4, the depreciation to be applied to the following must be determined by the assessor using generally accepted appraisal methods: (a) dam improvements, if the dam has an actual electrical power generating capacity of 6 or less megawatts per hour; (b) improvements not specifically described in Schedule A, B or C. (4) Despite subsection (1) and section 3, if the assessor determines, as of October 31 of any year, that an electrical transformer within a substation has a design capacity that is at least B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 3 of 53/2016] 15
4 100 greater than the peak megavolt amp load requirement of that transformer during the previous 12 months, the cost of that transformer must be reduced by 25 before application of the depreciation determined otherwise under this regulation for valuation of that transformer for the next assessment roll. (5) Subsection (4) applies only if a transformer is installed to service a load requirement or anticipated load requirement, and, subsequent to the installation, (a) the load requirement diminishes, or (b) Maximum depreciation the anticipated load requirement does not occur. [am. B.C. Regs. 295/2001; 365/2002.] 3. If the depreciation determined under section 2 for an electrical power generating facility improvement is equal to or in excess of the maximum depreciation set out in Schedule A, B or C for that type of improvement, then the depreciation for that improvement is the maximum allowed for that type of improvement. Closure allowances 4. (1) If the assessor determines (a) that an electrical power generating facility is closed on or before October 31 of any year and the owner of the facility or a senior executive officer of the corporation that owns the facility confirms in writing that the closure is permanent, or (b) that an electrical power generating facility has been closed for a minimum of 3 consecutive years immediately preceding October 31 in any year and the owner of the facility or a senior executive officer of the corporation that owns the facility confirms in writing the fact that the facility is closed and the duration of that closure, then, for the purposes of the assessment roll in the succeeding year, the depreciation applicable to improvements that are part of the electrical power generating facility is the amount that is sufficient to reduce the actual value of the improvements to 10 of the cost of the improvements. (2) If the assessor determines that (a) (b) a separate improvement within an electrical power generating facility is permanently closed or shut down on or before October 31 in any year and the owner or facility manager of the facility confirms in writing that the closure or shut down is permanent, or a separate improvement within a facility has been closed or shut down for a minimum of 3 consecutive years immediately preceding October 31 in any year and the owner or facility manager confirms in writing the fact that the improvement is closed or shut down and the duration of that closure or shut down, then, for the purpose of the assessment roll in the succeeding year, the depreciation applicable to the separate improvement is the amount that is sufficient to reduce the actual value of the improvement to 10 of the cost of the separate improvement. (2.1) In addition to the requirements under subsection (1) or (2), a confirmation under this section must (a) (b) be made to the assessor of the assessment area in which the electrical power generating facility or separate improvement within an electrical power generating facility is located, B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 4 of 53/2016] 15
5 (AM) Sep 24/07 DEPRECIATION OF DAMS, POWER PLANTS AND SUBSTATIONS REGULATION 395/99 [REPEALED] be made by the November 30 next following the October 31 referred to in subsections (1) or (2), (c) in the case of subsection (1) (a) or (2) (a), specify the date of the permanent closure or shutdown, and (d) in the case of subsection (1) (b) or (2) (b), specify the commencement date and duration of the closure or shutdown in order to be effective for the following tax year. (3) Subsection (2) applies only with respect to a complete improvement and must not be applied to a part of an improvement. (4) If a previously closed electrical power generating facility or improvement is reopened or reactivated, this section ceases to apply for the purposes of the assessment roll in the succeeding year and depreciation must be determined in accordance with sections 2 and 3. (5) Repealed. [B.C. Reg. 365/2002] Rounding down amounts [am. B.C. Reg. 365/2002.] 5. The assessment authority may round the amount of depreciated value calculated under section 2 or 3 (a) down to the nearest $100, if the value determined is greater than $101 and less than $99 999, and (b) down to the nearest $1 000, if the value determined is $ or greater. [am. B.C. Reg. 292/2007.] B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 5 of 53/2016] 15
6 SCHEDULE A [en. B.C. Reg. 243/2014.] ELECTRICAL POWER GENERATING FACILITIES DEPRECIATION RATES Dams DAM IMPROVEMENTS DEPRECIATION (Straight Line ) Dam Structure (i) well maintained (ii) average maintenance Per Annum Maximum Head Gates Surge Tank Steel Penstock Polyethylene (PE) Penstock Wood Penstock Tunnel (i) well maintained (ii) average maintenance Concrete Tunnel Liner Steel Tunnel Liner B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 6 of 53/2016] 15
7 SCHEDULE B [en. B.C. Reg. 192/2011.] POWER PLANTS ELECTRICAL POWER GENERATING FACILITIES DEPRECIATION RATES POWER PLANT IMPROVEMENTS DEPRECIATION (Straight Line ) Per Annum Maximum Power plants other than wind power plants Wind power plants B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 7 of 53/2016] 15
8 SCHEDULE C ELECTRICAL POWER GENERATING FACILITIES DEPRECIATION RATES Substations BUILDINGS STEEL FRAME (S809) , , , , , , Max. 65 B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 8 of 53/2016] 15
9 19 16 B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 9 of 53/2016] 15
10 BUILDINGS PRE-ENGINEERED (S807) Max B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 10 of 53/2016] 15
11 MASONRY LOAD BEARING (S808) , , Max B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 11 of 53/2016] 15
12 TRANSFORMERS (S803) Max B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 12 of 53/2016] 15
13 BREAKERS (S801) Max B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 13 of 53/2016] 15
14 GROUNDING, TRANSFORMATION POSITIONS & BREAKER POSITIONS (S804) , , , , , , , , , , , , , , , , , , Max. 75 B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 14 of 53/2016] 15
15 LIGHT METAL SHEDS (S801) Max. 75 [Provisions of the Assessment Act, RSBC 1996, c. 20, relevant to the enactment of this regulation: sections 20.1, 22.1 and 74] B.C. Reg. 395/99 [Repealed March 2, 2016 by B.C. Page Reg. 15 of 53/2016] 15
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