11. [Change in depreciation for regulated company] Laclede Group [LC] is a distributor of natural gas in St. Louis and nearby areas of Missouri. Its rates and accounting methods are regulated by the Missouri Public Service Commission (MoPSC). Laclede's 1999 annual report includes the follow- ing accounting policy: Utility plant (excluding insignificant exploration and de- velopment property held during 1997) is depreciated on the straight-line basis at rates based on estimated service lives of the various classes of property. Annual deprecia- tion in 1999, 1998, and 1997 averaged approximately 2.6%, 3.1%, and 3.4%, respectively, of the original cost of depreciable property In the Company's 1998 rate case, the MoPSC approved a settlement agreement that authorized a decrease in depreciation rates for the Com. pany, which was instituted July 1, 1998.