Public Utility Depreciation by NARUC

I don’t usually read reference books, or textbooks, all the way through like I did with Public Utility Depreciation Practices. Because of my new job as a “depreciation engineer,” I undertook reading this guide from the National Association of Regulatory Utility Commissioners (NARUC).

The title describes the content of the book. It includes some historical and legal background, but the bulk of the book is aimed at the practicalities of determining depreciation expenses.

The main elements going into depreciation rate determination are depreciation base, service life, net salvage, and depreciation computation methods. Depreciation base is the starting point; it represents the initial investment of capital that is to be recovered as a cost through depreciation. Generally it is the book cost (original cost of the infrastructure including materials, equipment, labor and related costs).

Most methods of computing depreciation are referred to as age-life methods. These methods spread the cost of the expected life of a piece of infrastructure. The preferred method is straight line depreciation. To apply these methods, one will need to know or estimate the life of the infrastructure under consideration and the net salvage value. The depreciation rate is the difference between the base and the net salvage, divided by the life of the infrastructure. With the exception of unique pieces, like types of infrastructure are lumped together because they are expected to have a similar life (wooden poles, steel poles, copper wire, conduit, etc.).

Life expectancy can be estimated by several methods. Survivor curves are developed from statistical studies of the life of particular types of infrastructure, though other methods may be used depending on the type and quality of data available.

Net salvage is estimated based on experience. The gross salvage is the price received for the equipment or materials retired. The cost of removal is subtracted from this to calculate the net salvage. Sometimes it can cost more to remove infrastructure than the value of the retired equipment and materials, so net salvage can be negative.

Calculating depreciation is more art than science. Projections of future values are inherently tricky. Growth can cause infrastructure to become inadequate before it is expected, or slower than expected growth can extend the life infrastructure. New regulations can make infrastructure obsolete in an instant, as can new technologies. In addition, utilities are constantly adding and retiring infrastructure. Amidst this uncertainty, regulators must balance the level of service needed by utility customers with the returns needed by utility investors in a complex environment.

Admittedly, a book from 1968 may seem dated. However, many of the practices described are still in use. Government regulation of monopoly utility rates in the United States has been occurring for more than a century, and the practices to not change rapidly. Even so, some of the practices described were considered obsolete, or near obsolescence, at the time of publication, and are not likely to be encountered now unless you’re a financial historian combing through moldy account books.

National Association of Regulatory Utility Commissioners. Public Utility Depreciation Practices. 1968. Washington, DC: Author, 1974.

The Introvert's Way by Sophia Dembling

Blogger Sophia Dembling writes about her life as an introvert. This subject carries over into her book The Introvert’s Way.

Dembling tries to sort out what introversion is. It is not simply the opposite of extroversion, nor is it shyness. It is not antisocial or pathological. Introversion and extroversion are different ways in which the brains of people operate. There is much that is positive in the introverted way, even if western—and particularly American—culture has a preference for traits associated with extroverts.

Admittedly, introverts can come across as aloof, timid, or too intense. Dembling describes how introverts are simply responding to the world in ways that suit our (yes, I’m an introvert) sensitivity to stimuli, energy, and way of thinking. When we withdraw, we’re simply tired or overstimulated, not angry or shy. We can seem intense because we like making deeper connections and we are passionate about our interests. Dembling suggest that introverts can combat misperceptions by first accepting themselves as they are and then gently explaining it to others.

Another thing that introverts tend to do that can drive extrovert up the wall is we think and act slowly. My longsuffering wife has learned to give me plenty of advanced notice when an important decision is needed from me or us as a couple. This may be why introverts shine in e-mail, texting, and social media (some of us old-timers still write letters on occasion). The media allow us to think and respond at our own pace.

Dembling also addresses the misconception that introverts don’t have fun. We do. Sometimes we even have fun at parties or social gatherings, especially with a small group of close friends or family. Introverts generally like quiet, slow-paced activities. Extroverts probably look at us and think we’re not doing anything.

Each chapter is written as a short essay. In addition to dealing with the issues already mentioned, Dembling writes about how she and other introverts deal with things we tend to hate, like parties and small talk. She takes a middle ground somewhere between don’t be bullied by (well-meaning) extorverts and suck it up because these things are part of life. To have the peaceful life introverts want along with the social life they want (and they do want one), they have to strike a balance, and Dembling suggests some ways that balance can be made.

If you’re interested in this book, you may also be interested in

The Highly Sensitive Person by Elaine N. Aron

Quiet by Susan Cain

Dembling, Sophia. The Introvert’s Way: Living a Quiet Life in a Noisy World. New York: Perigee, 2012.

Happier by Tal Ben-Shahar

Ben-Shahar, Tal. Happier: Learn the Secrets of Daily Joy and Lasting Fulfillment. New York: McGraw-Hill, 2007.

Happier is based on a popular class Dr. Ben-Shahar teaches at Harvard University. The author refers to happiness as the ultimate currency, and in that light, it is not surprising that so many people are seeking more of it.

Ben-Shahar frames happiness as a balance of present and future benefits. Many people sacrifice present pleasure for hopes of a more desirable future; they’re rat-racers. Hedonists seek momentary pleasures without regard for the future. Those who’ve given up on finding happiness in both the present and future are nihilists. Happiness is found in a life that has future benefits that is enjoyable along the way.

Happiness is about more that just pleasure, which is hollow by itself. Happy people lead lives they find meaningful. In a sense, a meaningful life provides the ultimate future benefit. Pairing meaning with enjoyment along the way, present pleasure, leads to happiness. This doesn’t lead to a life free of negative emotions or perpetual positivity; Ben-Shahar thinks that is unrealistic and probably unfulfilling and throughout the book reminds readers of the balanced definition of happiness.

The middle section of the book tackles some of the practical matters of happiness in education, work and relationships. School is all about present sacrifice for future payoff. That mindset can send people in to careers they find to be meaningless drudgery. The same attitudes can come into relationships. Happiness in the real world sometimes means setting aside the expectations of others and society and acting on what you personally find meaningful and pleasurable. Not everyone has the luxury of putting off all obligations and doing their own thing, but nearly everyone can do something to introduce more happiness into their lives.



In closing, Ben-Shahar offers a number of “meditations.” These chapters offer exercises, of both practice and thought, for building happiness on our lives.

Solve for Happy by Mo Gawdat

Mo Gawdat, an executive and software engineer at Google, has been curious about happiness for years. When his son died suddenly, he took inspiration from the happy young man he lost to get his thought together on the subject and produce Solve for Happy.

To Gawdat, happiness isn’t something we gain, it’s something we lose or bury. Happiness his how we would normally feel, what he calls our “default state,” but we let all manner of thoughts make us unhappy.

What buries our native happiness? It’s the suffering we experience when the events of our life do not meet expectations. Gawdat illustrates this in his book with a balance with the events on one side and expectations on the other.

Donte be quick to blame unhappiness on the events of life. Gawdat points the finger at expectations.

Our expectations are often out of touch with reality. We suffer under misperceptions, illusions, blind spots and lies we tell ourselves. Gawdat identifies 13 such issues and challenges them. As long as you cling to beliefs and biases that lead to false expectations, you’ll suffer.

Experiencing the greatest joy involves embracing the truth. Gawdat describes five things he believes to be true that lead to joy.

I’m reminded of The Road Less Traveled by M. Scott Peck. Dr. Peck calls for a devotion to truth. Like Gawdat, Peck believed that every life has some pain, but a lot of additional, unnecessary pain is caused when we refuse to deal with reality.

I think there is a lot to be said for Gawdat’s overall concept. I can see in myself and others a lot of pain and disappointment that has its roots in false expectations, refusal to deal with reality and the avoidance of the hard (but rewarding) work of living and growing as a person. I don’t agree with every detail of Gawdat’s book, but don’t think you have to in order to gain useful insights from it.

If you’re interested in this book, you may also be interested in

Happier by Tal Ben-Shahar

The Language of God by Francis S. Collins

Outliers by Malcolm Gladwell

The Road Less Traveled by M. Scott Peck

Self Love by Robert H. Schuller

Gawdat, Mo. Solve for Happy: Engineering Your Path to Joy. New York: North Star Way, 2017.

His Excellency by Joseph J. Ellis

Ellis, Joseph J. His Excellency: George Washington. New York: Knopf, 2004.


Ellis organizes his biography of the first President of the United States along the lines of Henry Lee’s statement about the man, “First in war, first in peace, and first in the hearts of his countrymen,” though he breaks Washington’s life into a few more categories than that. He begins with Washington’s youth on the frontier and follows it through his vigorous retirement.

Ellis presents a man who does not rehearse his past, but seeks lessons from his experience. I’ll take a similar attitude in this review.

One of the things that stands out about Washington is his understanding of models and how to use them. As a youth, he looked up to the landed aristocracy that ruled Virginia and proceeded to become a man in much the same mode. As head of the Continental Army, he looked to Roman general Fabius Cunctator who won through retreat, preserving his army from battles he couldn’t win, even though Washington warred against his on adventurous nature to fight such a war. As a retiring general who could have received great political power from a grateful nation, he looked to Cicero, who retired to his farm when his duty was completed.

Washington also knew how to break with models and go his own way. He twice came out of retirement to lend his reputation to efforts to build an American nation, first to preside over the Constitutional Convention, second to serve as president under the new constitution.

Another notable thing about Washington’s life is the balance he struck between ambition and virtue. Only an ambitious and opportunistic man could have accomplished what he did; he accumulated great wealth and power. However, he held on to power lightly and readily let it go, though he seemed a little more attached to wealth. His virtues restrained his ambitions.

Finally, Washington was a realist. He was certainly a man of high ideals, but he didn’t expect to see people and nations conform themselves to ideals. Just as he had to restrain himself from excesses, so did others. This is clearly where he differed from Thomas Jefferson and his Ant-Federalist faction; Washington didn’t believe in a naturally virtuous class of citizen who would naturally uphold republican values. People pursued their interests; that went double for nations.

Washington was the right man at the right time. His insight into models, ambition, virtue and realism were just what the nascent nation needed to rally it together and lead it through the rough patches that could have broken it to pieces.

The Chinatown Death Cloud Peril by Paul Malmont

Malmont, Paul. The Chinatown Death Cloud Peril. New York: Simon & Schuster, 2006.

There is trouble in Chinatown. The war god that sets faction against faction in Asia stretches a tentacle across the world to stir plots and revenge in America. Heroes rise to meet this menace, very unlikely heroes: writers.

Malmont takes real life writers of pulp magazines, who he clearly regards with great respect and affection, and puts fictional versions of them in the middle of the kind of adventure they may have written. Some of these writers were legends in their time, but may be little know today. For instance, the main characters are Walter Gibson, who wrote The Shadow as Maxwell Grant, and Lester Dent, who penned Doc Savage as Kenneth Robeson. Other names may be more familiar to modern readers of genre fiction, especially L. Ron Hubbard and Robert Heinlein. H. P. Lovecraft plays a brief but pivotal role in a creepy way suited to his weird tales. Several lesser know pulp writers play lesser roles in the story.

I enjoyed these intrusions of biography into the wild fiction. I don’t think anyone would need to be a fan of pulps to enjoy the book. If someone enjoys adventure stories, he’ll probably enjoy this one. The characters sometimes discuss what might be real, if improbable, and what is pulp, a good yarn. Malmont puts the pulp first.

Malmont achieves the right balance of fact and fiction by throwing out the balance. It’s fiction first. The reality is informative and fun, but Malmont makes it work double duty. It is biography and history, but it also helps the reader connect to the characters and their world, which does much to serve the fictional story.

The best thing about the book is that it is fun. It’s a thriller that thrills. It’s a twisty tale that doesn’t try to throw the reader, but sweep them along.

The Solution by Lucinda Bassett

You may have heard of Lucinda Bassett and the Midwest Center for Stress and Anxiety. I remember hearing her on radio commercials talking about a book or audio program. You may have seen her infomercial or an appearance on a talk show, notably Oprah.

As you can guess form the name of her business, Bassett focuses on helping people overcome stress, anxiety, and fear. That is the purpose of her book, The Solution.

The first part of The Solution is a description of the problem. Of course, a certain amount of fear, stress, and anxiety are natural. They are our built-in emotional and physical responses to threats in our environment. They become problems when we experience them too often, when they capture us in constrained and unsatisfying lives. The worst part is that much of the fear, anxiety, and stress we experience is our own doing, responses to worries and imagined threats.

Worry turns our imagination into our worst enemy.  We seek out threats, conjure catastrophes, and foresee the worst. Bassett says we can turn this around. We can train ourselves to use our imaginations positively, to seek opportunities, to foresee desirable results. This notion is fundamental to most self-help, but Bassett frames it a little more interestingly. We can worry positively. A great worrier can be a great success.

These worries and the habitual behaviors they trigger, are rooted in a core story. This is another opportunity for reframing. A core story that once lead to defeat and discouragement can become motivation to strive for something better. Exercises in the book guide the reader in discovering his core story.

The second half of the book presents six strategies for dealing with stress and anxiety.

•  Detachment is about accepting and letting go of things you cannot change, being honest, and holding on to peace.
• Security is about improving your attitudes and beliefs about money and getting your financial house in order.
• Good health is important to coping with stress. Diet, exercise and sleep are the keys to good health.
• Compassion is a potent antidote to anxiety. Show yourself compassions by stopping the negative messages you repeat to yourself and intentionally practice positive self-talk.
• Reconnects with you dreams and decide what you want, the develop a plan to achieve your goals. Put the plan into action.
• A balanced life looks different for different people, but balance helps us all feel less anxious. Set your priorities, act on them, and live with purpose in the moment.

 
The strength of the book is Bassett’s own experience. She is someone who was once hindered by anxiety who has turned her imagination from and enemy to an ally. She reframed her core story from one of loneliness and lack to motivation to have a good life of family and abundance. Bassett also enlivens the book with stories of her clients, popular figures, and historical people.

If you’re interested in this book, you may also be interested in

Change Your Brain, Change Your Body by Daniel G. Amen

Secrets You Keep from Yourself by Dan Neuharth

Positive Imaging by Norman Vincent Peale

The Power of Positive Thinking by Norman Vincent Peale

You Can if You Think You Can by Norman Vincent Peale

Bassett, Lucinda. The Solution: Conquer Your Fear, Control Your Future. New York: Sterling, 2011.

Walk Away the Pounds by Leslie Sansone

Sansone, Leslie. Walk Away the Pounds. New York: Warner, 2005.



Leslie Sansone says people can improve their health and lose weight without changing their eating habits. They have to exercise, but it’s mostly putting one foot in front of the other.

The opening chapters deal with the benefits of exercise. There is a particularly focus on the benefits of walking.

This leads to a description of the exercises that are used in the program that makes up much of the book. It walking and several moves that can be done while walking to mix things up. It also includes resistance exercises that can be done with light dumbbells, weighted balls or bands. There is also a chapter devoted to shoes and other equipment to help you get off on the right foot.

The middle of the book lays out a 6-week program of walking. It starts out with a mile of walking (about 2,000 steps) and builds of up to 4 to 5 miles (8,000 to 10,000 steps). Along the way, it adds periodic resistance exercises. Following the program, you’ll walk 64 miles in the six weeks. The pages make a diary for keeping track of your progress through the program.

From there, walkers can keep going. Sansone devotes a chapter to continuing the program, ramping it up, and overcoming plateaus.

What about eating? Though Sansone says it’s not a necessary part of the program, she suggests that you’ll probably want to improve your eating habits as your health improves and your body demand nutrition to support its new level of activity. She discusses this in a chapter that includes a nutrition primer and several tips on better eating habits.

Sansone also devotes chapters to dealing with stress and having a balanced life. Exercise can alleviate stress and its negative effects, but there are other things busy people can do to reduce stress, make life less hectic, and find more balance.

The book wraps up dealing with motivation. Proper motivation is needed to stick to a healthy lifestyle and Sansone discusses perspective, habits, and environmental changes to help walkers stay on track.

The book is written to a female audience, though program is probably just as suitable to men. Several short success stories appear throughout, briefly discussing the success of women who have tried the program.

A DVD is included with the book. It is a walk-in-place program that leads the viewer through a 1-mile walk in about 18 minutes.

If you’re interested in this book, you may also be interested in
The 6 Day Body Makeover by Michael Thurmond
8 Minutes in the Morning for Extra-Easy Weight Loss by Jorge Cruise
How Much Does Your Soul Weigh? by Dorie McCubbrey

The Faith of JFK edited by T. S. Settel

Settel, T. S., ed. The Faith of JFK. New York: E. P. Dutton & Co., 1965.

The Faith of JFK is a compilation of segments of John F. Kennedy’s speeches and writings and related material, mostly from the time of his presidency. One might hope for an analysis of his faith and its influence on his public life, but perhaps it was too early for such considerations in 1965.


The segments of Kennedy’s speeches and proclamations gives one a sense of his espoused views on the subjects of his religion, American government and foreign affairs, which he sometimes presented forcefully. On a few occasions, the quotes are so short as to have almost no context except to show that he quoted some source. Generally, the edited segments strike a nice balance between being representative and brief.

The largest segment of the book juxtaposes parts of Kennedy’s speeches in which he quoted scripture with the verses from the Bible. Sometimes they show a thoughtful reflection on how biblical ideas applied to the issues at hand (probably this was something of the intent of the collection, to demonstrate the president’s adherence to both Catholic and American ideals). Often, the biblical quotations are selected to support a point in the speech, but when one reads the passage from which it is taken it appears to be at best tangentially related or actually related to another subject altogether. This is far too common even today. Even in this second case, this chapter is illuminating, because seeing the sometimes tenuous connection between the Bible and the speech that quotes it can help one more clearly see what each is really addressing.

The best parts of the book are those that don’t relate to Kennedy’s quotations of the Bible, poems or other literature. Kennedy seemed to express his ideals and policies most eloquently when he was not leaning on other sources. In those times, he might have most clearly expressed his true views, without obscuring them with quotes that carry their own weight and meaning.

If you’re interested in this book, you may also be interested in
Common Sense by Thomas Paine
God and Ronald Reagan by Paul Kengor
His Excellency by Joseph J. Ellis
The Politically Incorrect Guide to Western Civilization by Anthony Esolen

Dreams of Iron and Steel by Deborah Cadbury & The Lighthouse Stevensons by Bella Bathurst

In Dreams of Iron and Steel (New York: HarperCollins, 2004), Deborah Cadbury tells the stories of seven great works that cover over a century of engineering history. Originally published in Great Britain as Seven Wonders of the Industrial World, the book was a companion to a BBC television series. The projects covered vary widely from a sewer built under a metropolis to a bridge that towered above the skyline of its day.

The oldest of these (still standing like all but one of the other projects) is the Bell Rock lighthouse. The Bell Rock sank many ships that sought shelter from North Sea storms in Scotland’s Firth of Forth. Robert Stevenson, grandfather of author Robert Louis Stevenson, designed and oversaw the construction of a tower on it. The rock was a formidable construction site. It sat eleven miles from land. High tide covered it with as much as 16 feet of water. Low tide exposed an area only 250 by 130 feet. Yet Stevenson and his men built a 100-foot, stone tower on it. They did it 200 years ago.

By the middle of the nineteenth century, several wonders were built almost at once. The Great Eastern, built by Isambard Kingdom Brunel, was twice the size of any other ship. Though a commercial failure, it set the standard for the next generation of ships.

Brunel launched his ship into a dirty and diseased Thames. Joseph Bazalgette sought to make the river safer for London residents. He built sewers under an ancient city that had grown to 2.5 million people and sprawled over 80 square miles.

In the American West, rival firms raced across the continent to build a railroad that would unite a nation recovering from civil war. In New York, John and Washington Roebling tackled the broad East River with their Brooklyn Bridge. They risked their lives and reputations on the longest span of the day and a material untested in bridges—steel.

The twentieth century inaugurated bigger feats. First proposed in 1879 by Vicomte Ferdinand de Lesseps of France, builder of the Suez Canal, the Panama Canal defeated most of those tried to build it. Even the United States poked at the mountains in futility until John Stevens, a railroad engineer, upgraded the infrastructure and equipment. When Stevens left the canal, a frustrated Theodore Roosevelt put military officers in charge. Lieutenant Colonel George Goethels, an engineer with extensive lock and dam experience, saw the canal through to its completion shortly before World War I.

The final project, America’s “damn big dam”, was build during the Depression. Hoover Dam was huge and constructed under difficult conditions. But construction engineer Frank “Hurry up” Crowe pushed and planned to get it done early and under budget.

Cadbury treats each project separately. However, they are linked by common elements.

Tragedy and setbacks touched each one. Thousands of men, usually poor laborers and sometimes children, were killed or injured to make these huge structures. They were beset by lack of financing, reluctance to try new methods and materials, bankrupt contractors, political opposition, corruption, greed, prejudice, and other human imperfections.

At their best, these engineers and their wonders are linked by the same qualities that appear in the best of engineering today. They had a vision to make people safer, healthier, richer, and freer. They created solutions to immense problems.

Robert Stevenson’s triumph at Bell Rock won the confidence of the Northern Lighthouse Board. It also launched an association between the Stevenson family and Scottish lighthouses that lasted four generations. During their tenures in the office of engineer for the board, Stevenson and his sons dominated the design, construction, and operation of the lights. Bella Bathurst tells their story in The Lighthouse Stevensons (New York: HarperCollins, 1999).

This book has its own kind of variety: technical, professional, and personal. It covers the construction and technology of several lighthouses, the masterpieces of Robert and his three sons. They not only built towers, but also improved their design and the design of the lamps, reflectors, optics, and mechanical systems that operated in them. One even studied the waves that assaulted their works.

It shows that engineering is more than simply design and construction. The Stevensons were also managers, fundraisers, businessmen, public servants, purchasing agents, manufacturers, contractors, and more. Their work included a broad section of what engineers do.

The book is also a biography of these four men that reveals the dynamics of the family. Robert insisted his sons join the family profession and business. Only one, David, seemed to take to it naturally. Only David’s sons filled the next generation of lighthouse Stevensons. Alan and Tom were more inclined to work in literature and the arts. Alan proved himself to be a capable engineer by building a 138-foot light at Skerryvore that could withstand the elements and exhibit a simple beauty. He became so disabled by disease, Bathurst suggests it was muscular sclerosis, that he gave up his work with the lighthouses. He managed to work irregularly as a writer. His works include and encyclopedia article on lighthouses and a translation of Greek poems. Tom shared Alan’s artistic leaning, but not his intensity and focus. He and David eventually divided the engineering work for the Northern Lights.

Not everyone is cut out to be an engineer, of course. As Robert Louis Stevenson said about his internship in the profession, “He is a wise youth, to be sure, who can balance one part of genuine life against two parts of drudgery between four walls and for the sake of one, manfully accept the other.” But some managed to catch what Marion Allen, a laborer on the Hoover Dam, called constructitis. “Sometimes one thinks he is cured,” said Allen, “only to have a relapse when he goes by fresh concrete or catches the smell of fresh sawdust from new lumber. Anyone with this affliction has to start construction of some kind, even of only to dig a hole and fill it up again.”

Order this book here.