On Sunday, November 9, 2008, the Fair Trading Commission (FTC) placed a Public Notice in the newspapers, announcing that the Company has applied for a re-prescription of the useful lives of the assets and plant in service. This is essentially a request for the setting of depreciation rates for our assets. It is not an application for a rate adjustment.
There will be a hearing on the matter, which is anticipated to take place in early 2009, and which time the FTC will consider the Company's submission on depreciation as well as the views of any persons who wish to intervene. Depreciation rates were last set some 25 years ago in the May 1983 rate decision by the Public Utilities Board. Since then, the Company has had several depreciation studies conducted by qualified professional firms and has used these depreciation rates in its annual financial reporting.
Following is a link to the information regarding this application on the FTC's website: Application for Depreciation Rate Review