Value of an Existing Water System

[PBW2]

We are working on valuation of an existing water distribution system (pipe and valves only) from an asset and depreciation standpoint. The pipe size is 2"-12" PVC and DI and the oldest pipes were installed in 1980. We are trying to find information on depreciation schedules, depreciation life, old cost data, etc.

The sellers #'s depreciate the system over 100 years which seems like too long.

Any help is greatly appreciated.

 

[rconner]

While I suspect the actual "life" that will be realized overall by specific systems or any parts thereof is probably dependent on many complex factors, I noticed recently that currently more than 600 communities in the United States and Canada alone have reportedly been identified with working cast iron pipelines more than 100 years old, and it appears that more than 20 of these with working pipelines more than 150 years old. The specific water utilities are actually listed at

http://www.dipra.org/pdf/CIPCC-CIPSC.pdf.

 

[RWF7437]

Many years (1947) ago the AWWA published a reference work entitled "Survival and Retirement of Waterworks Facilities". It is very dated, of course, but the methods should still be useful to you. I don't know if is still in print but check the AWWA website.

Good luck