Machine-translated by Google. Questions are authored in English.
Top

Discussion

A utility's annual revenue requirement is the sum it must recover to meet its

  • A.costs plus a permitted return
  • B.costs excluding depreciation
  • C.fuel costs and nothing more
  • D.obligations to its shareholders alone

Answer: A

Power purchase, operation and maintenance, depreciation, interest and a return on equity are added and the total divided among the consumer categories to give the tariffs. The regulator scrutinises each head before allowing it.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.