Methods used in determining market value — Cost approach

(a)(1) The cost approach estimates market value by calculating original cost less depreciation of the property.

(2) Reconstruction cost new less depreciation, replacement cost less depreciation, or reproduction cost less depreciation of the property may also be considered if such amounts can be reasonably determined.

(b) The cost estimate shall include:

(1) Telephone plant in service;

(2) Construction work in progress;

(3) Plant held for future use; and

(4) Material and supplies.

(c) The Tax Division of the Arkansas Public Service Commission may consider adjustments for functional and economic obsolescence if such amounts can be reasonably determined.

(d) The division may consider and adjust construction work in progress for the replacement of existing plant.