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The AUS Telephone Plant Index (TPI)
The AUS Telephone Plant Index (TPI) is a standard index,
published for telephone operating companies for use in developing the reproduction
cost of the company’s property at a selected test year date. Published
on a semiannual basis, the index, used together with a company’s
own accounting records, supplies the reproduction cost value of the
company’s construction investment.
The annual subscription rates are:
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Electronic Version - $1,575
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Hard Copy - $1,575
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Both Electronic Version and Hard Copy - $1,670
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The AUS TPI addresses a very specific
function - to enable companies to produce trended original cost values
relative to the historical original cost of plant in service on the
company’s books and records.
The AUS TPI provides critical information for the
following:
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Determining customer tariff
prices: Due to the implementation of price cap regulation, in which
(under some regulations) customer tariff prices are adjusted to
give consideration to productivity improvements, the development
of the construction costs and investments will have a direct bearing
on the company revenue requirements
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Determination of trended
original cost in fair value rate jurisdictions and current cost
pricing for FASB-33 financial accounting disclosures.
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Insurance valuations, property
tax valuations, retirement accounting and cost forecasting. |
Divided into six geographic regions (North Atlantic,
South Atlantic, North Central, South Central, Plateau, and Pacific Coast),
The AUS TPI was designed around thirty-six component
indexes representing the basic items of material and labor, which
make up the elements of the various telephone plant accounts. The
components include such items as Buildings, Switching Equipment, Circuit
Equipment, Poles, Cable, Wire, Vehicles, Tools, Furniture, Installer
Labor and Lineman Labor, etc. The components are composited together
into account level indexes based upon material and labor weights derived
from a study of independent telephone construction cost experience.
The AUS TPI does not reflect
replacement cost inasmuch as it was designed to produce the reproduction
cost (the cost in today’s dollars to reproduce the company’s
embedded plant in service).
The following is a sample of the AUS Telephone Plant Index:
AUS Telephone Plant Index
To request more information on this report,
click here.
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AUS Monthly Utility Report
AUS Telephone Plant Index
Licensing Economics Review
Centris Research Notes
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