PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

2.     PROPERTY, PLANT AND EQUIPMENT

        Our total property, plant and equipment are summarized below (in thousands).

	December 31,
	2015		2014
Electric plant
Production	$	1,151,395	$	1,159,140
Transmission		316,038		288,542
Distribution		870,047		840,761
General(1)		123,338		119,572
Electric plant		2,460,818		2,408,015
Less accumulated depreciation and amortization(2)		721,883		704,596
Electric plant net of depreciation and amortization		1,738,935		1,703,419
Construction work in progress		182,585		110,500
Net electric plant		1,921,520		1,813,919
Water plant		13,109		12,809
Less accumulated depreciation and amortization		5,281		5,102
Water plant net of depreciation and amortization		7,828		7,707
Construction work in progress		75		146
Net water plant		7,903		7,853
Net electric segment plant		1,929,423		1,821,772
Gas plant
Transmission		8,498		8,269
Distribution		66,588		63,319
General(3)		8,316		7,776
Gas Plant		83,402		79,364
Less accumulated depreciation and amortization		18,557		16,405
Gas plant net of accumulated depreciation		64,845		62,959
Construction work in progress		627		379
Net gas plant		65,472		63,338
Other
Fiber		44,263		41,394
Less accumulated depreciation and amortization		19,174		17,304
Non-regulated net of depreciation and amortization		25,089		24,090
Construction work in progress		402		1,072
Net non-regulated property		25,491		25,162
TOTAL NET PLANT AND PROPERTY	$	2,020,386	$	1,910,272

(1)Includes intangible property of $39.8 and $41.2 million as of December 31, 2015 and 2014, respectively, primarily related to capitalized software and investments in facility upgrades owned by other utilities. Accumulated amortization related to this property in 2015 and 2014 was $15.6 and $15.7 million, respectively.

(2)As part of our depreciation rates, we accrue the estimated cost of dismantling and removing plant from service upon retirement. The accrued cost of removal, upon retirement, is reclassified from accumulated depreciation to a regulatory liability. These reclassified amounts are not reflected here. See the depreciation discussion under Note 1 and Note 3 Regulatory Matters for more detail.

(3)Includes intangible property of $0.9 and $0.7 million as of December 31, 2015 and 2014, respectively, primarily related to capitalized software and investments in facility upgrades owned by other utilities. Accumulated amortization related to this property in 2015 and 2014 was $0.6 million and $0.5 million, respectively.

        The table below summarizes the total provision for depreciation and the depreciation rates for continuing operations, both capitalized and expensed, for the years ended December 31 (in thousands):

	2015		2014		2013
Provision for depreciation
Regulated — Electric and Water(1)	$	73,885	$	66,600	$	63,192
Regulated — Gas(1)		4,036		3,851		3,763
Non-Regulated		4,895		1,891		1,938
TOTAL		82,816		72,342		68,893
Amortization		2,858		2,692		2,492
TOTAL	$	85,674	$	75,034	$	71,385

(1)A portion of this amount is reclassified to a regulatory liability for the cost of removal. See the depreciation discussion under Note 1 and Note 3 Regulatory Matters for more detail.

	2015			2014			2013
Annual depreciation rates
Electric and water		3.1	%		3.0	%		3.0	%
Gas		5.1	%		5.2	%		5.4	%
Non-Regulated		4.4	%		4.7	%		5.0	%
TOTAL COMPANY		3.2	%		3.0	%		3.1	%

        The table below sets forth the average depreciation rate for each class of assets for each period presented:

	2015			2014			2013
Annual Weighted Average Depreciation Rate
Electric fixed assets:
Production plant		2.8	%		2.4	%		2.4	%
Transmission plant		2.4	%		2.4	%		2.4	%
Distribution plant		3.5	%		3.6	%		3.6	%
General plant		5.9	%		5.8	%		5.8	%
Water		2.8	%		2.7	%		2.8	%
Gas		5.1	%		5.2	%		5.4	%
Non-regulated		4.4	%		4.7	%		5.0	%