Utility Dive•21 days ago
Rein in CWIP to protect ratepayers from bloated infrastructure costs: report
- •Utilities leveraging Construction Work In Progress (CWIP) accounting can transform project cost overruns into profit opportunities, rather than incurring financial penalties.
- •This accounting method directly results in inflated infrastructure costs being passed on to ratepayers, leading to higher electricity prices for large power consumers and potentially distorting competitive market signals for new generation.
- •The report advocates for reining in CWIP, signaling potential future regulatory or policy changes aimed at utility cost recovery mechanisms.
financing