Accurate fixed asset records can quickly become less accurate due to such factors as inefficient field processes, the flow of information from field crews to the finance department, and too many choices of fixed asset types. Inaccurate fixed assets lead to inequitable customer rates.

Here is a case study of one electric and water utilities’ recognition of problems in fixed assets and their path to a solution.

Don’t underestimate the value of sound fixed asset systems in power and utility organizations. Fixed asset depreciation is a component of customer rates and the return on ratebase, which can make up to 8% of a customer’s rate. Fixed assets that were accurate can become inaccurate and a problem area due to a lack of attention to changing business processes, workforce training and succession, and lagging technology.

Here is a case study of one electric and water utilities’ recognition of problems in fixed assets and their path to a solution.