The Board of Public Utilities is scheduled to rule March 20 on whether to compel Jersey Central Power & Light Co. to conduct a depreciation study in its pending rate request. The Division of Rate Counsel requested the analysis, noting that JCPL’s last study was conducted 17 years ago.

JCPL balked, arguing that there is no requirement that a depreciation study be filed with a base rate case. The company said its depreciation rates have been updated annually since 2000, and that its depreciation rates were reviewed in its 2002 base rate case, when a change in the depreciation methodology resulted in a decrease in the allowed depreciation expense.

The board will be ruling on whether to overturn an administrative law judge ruling rejecting the Rate Counsel request. The board agreed to review the ruling Feb. 20 “given the possible impact of the calculation of depreciation on the determination of just and reasonable rates.”

The board ordered JCPL to file the rate case in response to a Rate Counsel petition alleging the company was earning an unreasonable return on its rate base.

The company responded Nov. 30 with a request for a $31 million increase. It followed up with a supplemental request Feb. 22 seeking to recover the $630 million it spent on Hurricane Sandy. The company asked for $345 million in capital expenditures and $258 million in non-capital costs, which it proposed to recover over a six-year period. JCPL said it would continue to have the lowest residential electric rates among the states four electric distribution companies even after the rate increase, which would result in a 4.5% increase for an average residential customer. Docket Nos. ER12111052 and OAL PUC 16310-12.