Changing nature of public utility regulation: the used and useful property rate base versus the capitalization rate base in the nuclear age

Journal Article · Wed May 01 04:00:00 EDT 1985 · La. Law Rev.; (United States)

OSTI ID:5067656

Dakin, M G

The author reviews public utility rate cases, with a focus on the efforts of regulatory commissions to preserve the used and useful rate base as an operative principle. The issue is whether this is warranted in the era of nuclear plant construction and abandonment. He considers court decisions on the legal pros and cons of including construction work in progress (CWIP) and allowance for funds used during construction (AFUDC) in the rate base in terms of their effect on capital costs and the impact on the costs to present and future consumers. Current practice has been to allow a selective use of CWIP and retain the used and useful principle, but a move to a capitalization rate base would simplify the process and still allow the control of utility financial behavior through oversight of construction expenditures and operating income and expenses.

• Research Organization: Louisiana State Univ., Baton Rouge
• OSTI ID: 5067656
• Journal Information: La. Law Rev.; (United States), Journal Name: La. Law Rev.; (United States) Vol. 45:5; ISSN LLRED
• Country of Publication: United States
• Language: English

Related Subjects

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
210801* -- Nuclear Power Plants-- Economics-- Construction & Operation-- (-1987)
29 ENERGY PLANNING, POLICY, AND ECONOMY
290600 -- Energy Planning & Policy-- Nuclear Energy
296000 -- Energy Planning & Policy-- Electric Power
AFUDC
CAPITALIZED COST
CASE LAW
CONSTRUCTION
COST
CWIP
FINANCING
LAWS
LEGAL ASPECTS
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
OPERATING COST
POWER PLANTS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
THERMAL POWER PLANTS