Embedded Costs, definition
Embedded Costs, as used in this Act, means the unavoidable, unmitigable, legitimate, verifiable, prudently incurred and administered costs of existing assets and obligations incurred by an electric company prior to (date), pursuant to the provision of retail Electric Service, and made unrecoverable as the result of the restructuring of the electric industry to permit Retail Access as required by Virginia law and determined by the State Corporation Commission. Any entity seeking recovery of Embedded Costs shall have the burden of proof with regard to the right to recover such Embedded Costs as Stranded Costs. The recovery of Embedded Costs as Stranded Costs shall not include a return on such investment.
Examples of Embedded Costs, in a sentence
Transmission and Storage Embedded Costs SoCalGas’s 2024 embedded cost of transmission (with FFU) is $601.317 million and is functionalized as $410.135 million backbone transmission and $191.182 million local transmission.