Investigation shows that insulator trouble increasing with time is not due to fatigue in the material under applied working loads, but rather to depreciation caused by the absorption of water by porous material or by the cracking of the dielectric from high internal mechanical stress set up by uneven temperature in the dielectric, or by greater expansion of cement or metal, or stress from a combination of these. The shape of the dielectric may cause high maximum stresses under comparatively mild conditions, necessitating the working of material with a lower factor of safety than that permissible even in steel work. The high maximum internal stress under which insulators operate will cause considerable depreciation in some types through cracking, necessitating a careful study of the effect of depreciation upon the operation of the system. Trouble comes largely through the matching up of faulty parts so that the remainder of the insulator will be destroyed by a comparatively mild surge. Applying the theory of probability, it is then possible to obtain a relative operating hazard for the insulator under the same conditions or for varying degrees of depreciation. An equation for the operating hazard may be developed which gives a good idea of the relative economic importance of the number of sections in the insulator, the magnitude of the switching surge and the rate of depreciation as affecting the reliability of the system. The study of depreciation shows that routine tests which will tend to eliminate future depreciation, or refinements in the mechanical features of the insulator, are of far more importance in producing reliability than the designing of insulators to withstand extremely severe dielectric design tests, for insulators which may have extremely high dielectric strength will cause trouble through cracking from internal stress.