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In discussions of electric power generation deregulation, stranded costs represent a public utility's existing infrastructure investments that may become redundant after substantial changes in regulatory or market conditions. [1] An incumbent electric power utility will have made substantial investments over the years and will carry debt.
An expense and cost recovery system (ECRS) is a specialized subset of "extract, transform, load" (ETL) functioning as a powerful and flexible set of applications, including programs, scripts and databases designed to improve the cash flow of businesses and organizations by automating the movement of data between cost recovery systems, electronic billing from vendors, and accounting systems.
Klatskin's monthly cost recovery fee was 97 cents last year but more than doubled this year to $1.97. It will rise again to $3 on Jan. 1, according to the company. Klatskin, 69, was confused.
Cost plus a fixed-fee (CPFF) contracts pay costs plus a pre-determined fee that was agreed upon at the time of contract formation. Cost-plus-incentive fee ( CPIF ) contracts have a larger fee awarded for contracts which meet or exceed certain performance goals, for example being on schedule and any cost savings.
O is the utility's operating expenses, which are passed through to customers at cost with no mark-up. Examples include labor (for everything from field repair and maintenance crews to customer service and accounting personnel); bad debt expense; interest on debt; depreciation on assets; and federal (and sometimes state) taxes on income.
The cost of an impact fee can vary from state to state. Generally, areas in the Western United States charge higher fees than other places in the country. They can also vary depending on the type of need by a community with school facilities causing the greatest cost of an impact fee. [2]
The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation. The lives are specified broadly in the Internal Revenue Code.