Allowance for Funds Used During Construction
(AFUDC)
  Construction activities may be financed from internally generated funds (primarily earnings retained in the business), or from funds provided by other external sources (short- and long-term debt). The allowance for funds used during construction is intended to recognize the cost of these funds dedicated to construction activities during the construction period. To arrive at the "allowance", a common procedural method makes use of a formula that is based on the assumption that short-term debt is the first source of construction funds. The cost rate for short-term debt is based on current costs. Since a utility plant is subject to depreciation, the allowance for funds used during construction is recovered in the form of depreciation from ratepayers over the service life of the plant to which it applies.

Energy terms . 2014.

Look at other dictionaries:

  • Construction costs — (of the electric power industry)   All direct and indirect costs incurred in acquiring and constructing electric utility plant and equipment and proportionate shares of common utility plants. Included are the cost of land and improvements,… …   Energy terms

  • AFUDC —   Allowance for Funds Used During Construction   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

  • List of energy abbreviations — This is a list of abbreviations found in the context of energy issues. Contents: 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y …   Wikipedia

  • Fixed charge coverage —   The ratio of earnings available to pay so called fixed charges to such fixed charges. Fixed charges include interest on funded debt, including leases, plus the related amortizations of debt discount, premium, and expense. Earnings available for …   Energy terms

  • налоговая скидка на фонды, используемые в процессе строительства — (напр. экологически чистых энергетических объектов) [А.С.Гольдберг. Англо русский энергетический словарь. 2006 г.] Тематики энергетика в целом EN allowance for funds used during constructionAFUDS …   Справочник технического переводчика

  • Richard Roach Jewell — (born 1810 in Barnstaple, Devon, England died 1891 in Perth, Western Australia) was an architect who designed many of the important public buildings in Perth during the latter half of the nineteenth century. Jewell was articled(trained) as an… …   Wikipedia

  • Rod Blagojevich — For other people named Blagojevich, see Blagojević. Rod R. Blagojevich 40th Governor of Illinois In office January 13, 2003 – January 29, 2009 Lieutenant Pat Quinn …   Wikipedia

  • New Frontier — For other uses, see New Frontier (disambiguation). Part of the Politics series on Progressivism Schools American Progressivism Modern liberalism Progressive education Ideas …   Wikipedia

  • Uthman ibn Affan — For other uses of the name, see Uthman. Uthman ibn Affan Caliph Uthman s empire at its peak, 655. Thu Al Nurayn Reign …   Wikipedia

  • Winston Churchill — For other uses, see Winston Churchill (disambiguation). Churchill redirects here. For other uses, see Churchill (disambiguation). The Right Honourable Sir Winston Churchill …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”