Are You Capitalizing All the Costs You Are Entitled to?
Reducing O&M costs is a high priority for utilities today, but some O&M spending is more appropriately capitalized. As a utility incorporates numerous interdependent pieces of equipment and components, it can become difficult to identify whether items constitute discrete units of property, major components, or something else. By updating its capitalization policies, a utility can streamline the capitalization decision process and capitalize significant O&M spending.