Section 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.

The provisions of this § 69.371 adopted May 19, 1995, effective May 20, 1995, 25 Pa.B. 1967.