Pay now, buy later: Feds propose to expand utility CWIP charges

Journal Article · Tue Sep 01 04:00:00 EDT 1981 · Power Line; (United States)

OSTI ID:5684562

Brummer, J

The Federal Energy Regulatory Commission (FERC) plans to clarify guidelines for the use of construction work in progress (CWIP) as a way to relive utility financing problems. The present guidelines allow the CWIP costs of pollution control facilities and fuel conversion to be added to the rate base, but utilities want to expand charges under the severe financial difficulty clause to remedy the effects of overconstruction. FERC proposes new CWIP tests based on utility bond ratings and the level of relief at a threshold of 40% of the wholesale rate base. This would substitute a mechanical test for the determination of need, but will also force consumers to invest in construction for power they may never receive. The proposed change shifts the burden of proof from the utility to the consumer. (DCK)

• OSTI ID: 5684562
• Journal Information: Power Line; (United States), Journal Name: Power Line; (United States) Vol. 7:2; ISSN POLID
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CONSTRUCTION
CONSUMER PROTECTION
CWIP
ELECTRIC UTILITIES
GOVERNMENT POLICIES
NATIONAL ORGANIZATIONS
PUBLIC UTILITIES
US DOE
US FERC
US ORGANIZATIONS