Property, plant and equipment and construction in progress

12 Months Ended

Dec. 31, 2011

Property, plant and equipment and construction in progress

7. Property, plant and equipment and construction in progress

	December 31,
	2011		2010
Land	$	3,223,361	$	3,223,361
Buildings		16,732,298		15,222,319
Plant and equipment		58,758,920		50,330,524
Distribution system		24,099,566		20,776,389
Office furniture, fixtures and equipment		2,492,913		2,174,260
Vehicles		1,283,037		1,322,840
Leasehold improvements		222,829		232,026
Lab equipment		34,874		34,874
		106,847,798		93,316,593
Less accumulated depreciation		42,662,688		37,392,862
Property, plant and equipment, net	$	64,185,110	$	55,923,731
Construction in progress	$	141,204	$	249,300

As of December 31, 2011, the Company had outstanding capital commitments of approximately $211,000. The Company maintains insurance for loss or damage to all fixed assets that it deems susceptible to loss. The Company does not insure its underground distribution system, which the Company estimates has a replacement cost in excess of $40 million as of December 31, 2011, as the Company considers the possibility of material loss or damage to this system to be remote. During the years ended December 31, 2011 and 2010, $13,576,895 and $740,729, respectively, of construction in progress was placed in service. Depreciation expense was $5,789,401, $6,195,266, and 6,171,239 for the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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