OAR 860-036-2390: Accounting for Construction Work in Progress (CWIP)

(1) This rule applies to rate-regulated water utilities. (2) CWIP is an accounting treatment for capital improvement projects under construction, but not yet placed in service. The treatment allows rate-regulated water utilities to place recoverable capital improvements costs into plant. The Commission may approve the cost of a specific capital improvement project into rates if: (a) The capital improvement project is under construction; (b) The water utility uses the additional revenues solely for the purpose of completing the capital improvement project; (c) The water utility demonstrates that it is in the public interest to provide funding for the capital improvement through rates; and (d) The costs are approved by the Commission.