COST Control
A Congressional subcommittee has heard calls from utilities to review federal tax laws that will enable power assets to depreciate more quickly. Utilities are concerned that, in the 24 states where competition has been introduced, investors may shy away from committing to a 15 to 20 year return on their investment when market volatility could affect the potential for long-term returns. Utilities have suggested that a seven year depreciation period would be more likely to encourage investment in power generation assets. With ever increasing demand, utilities are becoming concerned that a lack of investment interest will bring about the recent scenarios seen in California and elsewhere. See page 11.