Sec. 53.054. CONSTRUCTION WORK IN PROGRESS. (a) Construction work in progress, at cost as recorded on the public utility's books, may be included in the utility's rate base. The inclusion of construction work in progress is an exceptional form of rate relief that the commission may grant only if the utility demonstrates that inclusion is necessary to the utility's financial integrity.
(b) Construction work in progress may not be included in the rate base for a major project under construction to the extent that the project has been inefficiently or imprudently planned or managed.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Structure Texas Statutes
Title 2 - Public Utility Regulatory Act
Subtitle C - Telecommunications Utilities
Subchapter B. Computation of Rates
Section 53.051. Establishing Overall Revenues
Section 53.052. Establishing Reasonable Return
Section 53.053. Components of Invested Capital
Section 53.054. Construction Work in Progress
Section 53.055. Separations and Allocations
Section 53.056. Depreciation, Amortization, and Depletion
Section 53.057. Net Income; Determination of Revenues and Expenses
Section 53.058. Consideration of Payment to Affiliate
Section 53.059. Treatment of Certain Tax Benefits
Section 53.060. Computation of Income Tax; Consolidated Return
Section 53.061. Allowance of Certain Expenses
Section 53.062. Consideration of Certain Expenses
Section 53.063. Consideration of Profit or Loss From Sale or Lease of Merchandise
Section 53.064. Self-Insurance
Section 53.065. Interexchange Services; Rates of Incumbent Local Exchange Company