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Construction work in progress: planning for the rate case

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:6166166
The question is raised whether consumers benefit when construction work in progress (CWIP) is placed in the rate base with no allowance for funds used during construction. The answer to the question is generally yes. This results from the high cost of capital for electric utilities and the substantial avoidable costs of allowance for funds used during construction (AFUDC). This article also includes some suggestions on how the utility company and intervenors should prepare for the rate case in which the company requests authorization to include CWIP in the rate base with no AFUDC.
Research Organization:
Univ. of Georgia, Athens
OSTI ID:
6166166
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 104:3; ISSN PUFNA
Country of Publication:
United States
Language:
English

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