AFUDC Rate Clause Samples
The AFUDC Rate clause defines the interest rate applied to funds used during construction of a project, allowing the capitalization of financing costs incurred before the asset is operational. In practice, this rate is used to calculate the amount of interest that can be added to the cost basis of a project, typically covering borrowed funds or equity invested during the construction phase. By specifying how these costs are determined and applied, the clause ensures that all parties understand how construction-period financing expenses are treated, thereby providing clarity and consistency in project accounting and cost recovery.
AFUDC Rate. For 2018, the AFUDC rate will be 6.83%. The AFUDC rate for 2019 will be the rate of return on rate base for 2019.
AFUDC Rate. For purposes of determining the Allowance for Funds Used During Construction (“AFUDC”) rate for Iatan 2 and the carrying cost rate for any Accounting Authority Order established from this case for Iatan 1, the AFUDC equity rate will be the lower of 8.25% or 250 basis points less than the return on equity ordered in the pending KCP&L Greater Missouri Operations Company rate case, Case No. ER-2009-0090.
AFUDC Rate. The Company's return on common equity used for calculating its AFUDC rate shall be 11.1% beginning on January 1, 1995, and ending on the last day of the calendar year following the Commission's approval of a settlement resolving the rate of return issue in any subsequent proceeding involving a rate decrease or increase or the Commission's decision in such a proceeding resolving that issue on the merits.
AFUDC Rate. For 2008 the AFUDC rate will be 7.73%. The AFUDC rate for 2009 and 2010 will be the rate of return on rate base for 2009 and 2010, respectively.