[Federal Register Volume 71, Number 191 (Tuesday, October 3, 2006)]
[Notices]
[Page 58371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-8323]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Publication of Depreciation Rates

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Utilities Service (RUS), an agency delivering the 
U.S. Department of Agriculture's Rural Development Utilities Programs, 
hereby announces the depreciation rates for telecommunications plant 
for the period ending December 31, 2005.

DATES: These rates are effective immediately and will remain in effect 
until rates are available for the period ending December 31, 2006.

FOR FURTHER INFORMATION CONTACT: Jonathan P. Claffey, Deputy Assistant 
Administrator, Telecommunications Program, Rural Development Utilities 
Programs, STOP 1590--Room 5151, 1400 Independence Avenue, SW., 
Washington, DC 20250-1590. Telephone: (202) 720-9556.

SUPPLEMENTARY INFORMATION: In the USDA Rural Development regulation 7 
CFR part 1737, Pre-Loan Policies and Procedures Common to Insured and 
Guaranteed Telecommunications Loans, section 1737.70(e) explains the 
depreciation rates that are used by USDA Rural Development in its 
feasibility studies. Section 1737.70(e)(2) refers to median 
depreciation rates published by USDA Rural Development for all 
borrowers. The following chart provides those rates, compiled by USDA 
Rural Development, for the reporting period ending December 31, 2005:

    Median Depreciation Rates of USDA Rural Development Borrowers by
         Equipment Category for Period Ending December 31, 2005
------------------------------------------------------------------------
                                                           Depreciation
            Telecommunications plant category                  rate
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1. Land and Support Assets:
   a. Motor Vehicles....................................           16.00
   b. Aircraft..........................................           10.00
   c. Special purpose vehicles..........................           12.00
   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............................................            8.45
  b. Analog & Electro-mechanical........................           10.00
  c. Operator Systems...................................           10.00
3. Central Office Transmission:
  a. Radio Systems......................................            9.24
  b. Circuit equipment..................................           10.00
4. Information origination/termination:
   a. Station apparatus.................................           12.00
   b. Customer premises wiring..........................           10.00
   c. Large private branch exchanges....................           12.50
   d. Public telephone terminal equipment...............           11.40
   e. Other terminal equipment..........................           10.35
5. Cable and wire facilities:
   a. Aerial cable--Poles...............................            6.37
   b. Aerial cable--Metal...............................            5.90
   c. Aerial cable--Fiber...............................            5.10
   d. Underground cable--Metal..........................            5.00
   e. Underground cable--Fiber..........................            5.00
   f. Buried cable--Metal...............................            5.00
   g. Buried cable--Fiber...............................            5.00
   h. Conduit systems...................................            3.33
   i. Other.............................................            8.34
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    Dated: September 22, 2006.
James M. Andrew,
Administrator, Rural Utilities Service.
[FR Doc. 06-8323 Filed 10-2-06; 8:45 am]
BILLING CODE 3410-15-P