---
kind: "section"
citation: "16 U.S.C. § 825a"
title: "16"
title_heading: "Conservation"
number: "825a"
heading: "Rates of depreciation; notice to State authorities before fixing"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/825a"
units:
  - "Chapter 12 — Federal Regulation and Development of Power"
  - "Subchapter III — Licensees and Public Utilities; Procedural and Administrative Provisions"
---

# §825a. Rates of depreciation; notice to State authorities before fixing

- (a) The [Commission](/usc/16/544.md?p=c) may, after hearing, require [licensees](/usc/16/796.md?p=5) and public utilities to carry a proper and adequate depreciation account in accordance with such rules, regulations, and forms of account as the [Commission](/usc/16/544.md?p=c) may prescribe. The [Commission](/usc/16/544.md?p=c) may, from time to time, ascertain and determine, and by order fix, the proper and adequate rates of depreciation of the several classes of property of each [licensee](/usc/16/796.md?p=5) and public utility. Each [licensee](/usc/16/796.md?p=5) and public utility shall conform its depreciation accounts to the rates so ascertained, determined, and fixed. The [licensees](/usc/16/796.md?p=5) and public utilities subject to the jurisdiction of the [Commission](/usc/16/544.md?p=c) shall not charge to operating expenses any depreciation charges on classes of property other than those prescribed by the [Commission](/usc/16/544.md?p=c), or charge with respect to any class of property a percentage of depreciation other than that prescribed therefor by the [Commission](/usc/16/544.md?p=c). No such [licensee](/usc/16/796.md?p=5) or public utility shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge or otherwise under its operating or other expenses. Nothing in this section shall limit the power of a [State commission](/usc/16/796.md?p=15) to determine in the exercise of its jurisdiction, with respect to any public utility, the percentage rate of depreciation to be allowed, as to any class of property of such public utility, or the composite depreciation rate, for the purpose of determining rates or charges.
- (b) The [Commission](/usc/16/544.md?p=c), before prescribing any rules or requirements as to accounts, records, or memoranda, or as to depreciation rates, shall notify each [State commission](/usc/16/796.md?p=15) having jurisdiction with respect to any public utility involved, and shall give reasonable opportunity to each such [commission](/usc/16/544.md?p=c) to present its views, and shall receive and consider such views and recommendations.

## Source credit

(June 10, 1920, ch. 285, pt. III, § 302, as added Aug. 26, 1935, ch. 687, title II, § 213, 49 Stat. 855.)