Replacement depreciation could exceed CWIP benefits
Journal Article
·
· Electr. Light Power; (United States)
OSTI ID:6207513
A replacement or economic depreciation allowance increases cash flow and provides higher quality earnings during construction than either placing construction work in progress (CWIP) or allowance for funds used during construction (AFUDC) in the rate base. The depreciation scheme provides up-front price signals and more general relief, although some utilities might not like to reduce demand by raising prices. A spokesman for Ebasco Business Consulting Company recommends economic depreciation as a substitute for deregulation and a way to preserve capital, as well as for its acceptance by regulators, its accounting advantages, and its parallel of market economics. (DCK)
- OSTI ID:
- 6207513
- Journal Information:
- Electr. Light Power; (United States), Journal Name: Electr. Light Power; (United States) Vol. 61:3; ISSN ELLPA
- Country of Publication:
- United States
- Language:
- English
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