FERC rules wholesale users can be charged CWIP
Electric utilities selling wholesale power will now be able to file for rates that include up to a 50% return on their investments in construction work in progress (CWIP), says the Federal Energy Regulatory Commission (FERC). Only financing costs on utility investment before a plant is in service can be recovered from ratepayers. FERC estimates the average wholesale customer will see an initial rate increase of 3.57%. Less than 8% of electricity sales by privately owned utilities will be affected by the rule. The American Public Power Association has filed for a rehearing on the ruling, fearing the policy will put local public power systems in unfavorable competitive positions. It is seeking legislation for CWIP in the rate base only for plant conversions, pollution control, and utilities in severe financial distress. Investor-owned utilities feel such legislation would make it almost impossible to obtain CWIP.
- OSTI ID:
- 5566486
- Journal Information:
- Electr. Light Power; (United States), Journal Name: Electr. Light Power; (United States) Vol. 61:7; ISSN ELLPA
- Country of Publication:
- United States
- Language:
- English
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