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Daily Rules, Proposed Rules, and Notices of the Federal Government

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Publication of Depreciation Rates

AGENCY: Rural Utilities Service, USDA.
ACTION: Notice.
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, 2011.
DATES: These rates are effective immediately and will remain in effect until rates are available for the period ending December 31, 2012.
FOR FURTHER INFORMATION CONTACT: Jonathan P. Claffey, Deputy Assistant Administrator, Telecommunications Program, Rural Utilities Service, STOP1590--Room 5151, 1400 Independence Avenue SW., Washington, DC 20250-1590. Telephone: (202) 720-9556.
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. § 1737.70(e)(2) refers to median depreciation rates published by RUS for all borrowers. The following chart provides those rates, compiled by RUS, for the reporting period ending December 31, 2011:

Median Depreciation Rates ofRural Utilities Service Borrowers by Equipment Category for Period Ending December 31, 2011 Telecommunications plant category Depreciation rate 1. Land and Support Assets: a. Motor vehicles 16.00 b. Aircraft 12.00 c. Special purpose vehicles 13.03 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 9.00 b. Analog & Electro-mechanical 10.00 c. Operator Systems 9.00 3. Central Office Transmission: a. Radio Systems 9.95 b. Circuit equipment 10.00 4. Information origination/termination: a. Station apparatus 11.90 b. Customer premises wiring 10.00 c. Large private branch exchanges 11.40 d. Public telephone terminal equipment 11.25 e. Other terminal equipment 10.20 5. Cable and wire facilities: a. Aerial cable—poles 6.00 b. Aerial cable—metal 5.80 c. Aerial cable—fiber 5.00 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 3.50 i. Other 5.59 Dated: October 9, 2012. John Padalino, Acting Administrator of theRural Utilities Service.