It’s called ‘Construction Work in Progress,’ but don’t let the dry-sounding phrase lead you to believe it’s nothing you should concern yourself with. In fact, ‘CWIP’ could impact on how much you pay for electricity. Jon Sanders, John Locke Foundation director of regulatory studies, discusses the problems associated with Construction Work in Progress, or CWIP, provisions for regulated utility companies. Sanders offered these comments during an interview with me for Carolina Journal Radio.
To learn more about CWIP and other issues related to the electricity market, plan to attend the March 20 forum in Raleigh.
The second forum on March 20 will focus on “The Prospect of State-Mandated Consumer Financing of Power Plants.” Both events are scheduled 4:30-6:30 p.m. at the Doubletree by Hilton Hotel Raleigh-Brownstone at 1707 Hillsborough Street.
Former N.C. Supreme Court Justice Bob Orr will moderate panel discussions during both forums. In addition to speakers from JLF and NC WARN, the forums will feature representatives from the Center for Environmental Stewardship, Sustainable Energy Community Development Company, and other groups interested in electricity issues.
JLF and NC WARN agreed to co-host the forums to publicize two key concerns about North Carolina’s electricity market. First, consumers would benefit if North Carolina state government would open up the electricity market to more competition.
Second, consumers reap no benefit from so-called Construction Work in Progress rules. CWIP allows utility companies to charge customers in advance for construction costs linked to new power plants, even if those plants never open.
CWIP and the absence of competitive markets both lead to higher prices for all electricity consumers, but the impact hits low- and moderate-income residential users especially hard. Energy costs eat up a larger portion of those customers’ paychecks.
Both forums are free and open to the public. Contact the John Locke Foundation at johnlocke.org/events or 1-866-JLF-INFO for more information.