The money is used to fund operating expenses, plant improvements and technology. It reduces the need for us to borrow money on your behalf. Even though you don’t receive the margins as soon as they are earned, it does help you by keeping your cost per kilowatt hour low and helped us save money on interest from borrowed money. Fluctuating fuel prices, system growth, government compliance, financial institution compliance, inflation, interest rates, and weather events can affect margins. When these extenuating circumstances occur, capital credit payments may be delayed.
If capital credits are assigned each year they are earned, where is the money kept until you decide to pay them back to me?
