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Growing importance of AFDC in utility stocks

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:5685899
Utility earnings have been bolstered in recent years by the allowance for funds used during construction (AFUDC), which reflects the increase in construction work in progress (CWIP). AFUDC growth has been slower than that for CWIP because the accelerating inflation rate has increased capital costs, with CWIP now constituting a major part of the electric power industry's utility plant. The earnings from construction activity do not generate immediate cash and, because they can be based on a long-term commitment, can obscure weaknesses from the utility's operating earnings. (DCK)
OSTI ID:
5685899
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 104:8; ISSN PUFNA
Country of Publication:
United States
Language:
English

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