Relationship to Regulated Industry

Ever since the advent of the active regulation of public utilities, the problem of depreciation has been and now is in a very confused state. In an attempt to find some satisfactory solution to the problem, a great deal of effort has been spent by independent writers, public utilities, and regulatory authorities. Numerous treatises, reports, and books have been written on the subject. Numerous concepts and methods of depreciation have been advanced, and many different solutions advocated. The present situation might appear to be a mere battle of words, or a battle over theories and definitions, which not only fails to clarify the situation but, on the contrary, obscures the basic factors that control the problem.