CONSTRUCTION WORK IN PROGRESS
§ 69.371. Ratemaking treatment of construction work in progress (CWIP).
(a) When exercising its discretion to include in a utility’s rate base the utility’s investment in CWIP not completed and placed in public service as of the date new base rates become effective, the Commission will consider whether the CWIP projects are the following:
(1) Reasonably identifiable as nonrevenue producing.
(2) Reasonably identifiable as nonexpense reducing.
(3) Reasonably shown to be necessary to improve environmental conditions or safety at existing facilities, or required to convert facilities to the utilization of coal.
(4) Reasonably certain to be completed within the first 6 months the new base rates will be in effect.
(b) A CWIP project qualifies as nonrevenue producing and nonexpense reducing if any revenue generated by, or reduction in expenses resulting from, the CWIP project is passed through to customers on a current basis.
Source The provisions of this § 69.371 adopted May 19, 1995, effective May 20, 1995, 25 Pa.B. 1967.
No part of the information on this site may be reproduced for profit or sold for profit.
This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
