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Yo_Mama

(8,303 posts)
3. Don't utililities always rack up planning costs?
Fri May 3, 2013, 12:08 PM
May 2013

I can't see a legal doctrine that would say a utility wouldn't have the right to recover costs even if a project weren't built.

Any sort of project process involves costs, and the projects wont' always go through. For instance, environmental impact studies, etc, are done for many types of projects. Doing these studies means that sometimes you will come up with projects which won't be built.

Or changes. For instance, if you are building a transmission line.

This doesn't seem workable for regulated utilities. They should have enough oversight so they aren't wasting the money, but studies and permitting processes are often very expensive for any type of project.

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