- videocam Live Webinar with Live Q&A
- calendar_month November 5, 2026 @ 1:00 PM ET/10:00 AM PT
- signal_cellular_alt Intermediate
- card_travel Energy
- schedule 90 minutes
Utility Cost Recovery for Grid Investment: Prudence, CWIP, Riders, Overruns, Abandoned Projects
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About the Course
Introduction
This CLE course will explore the legal and regulatory issues arising when utilities seek to recover the costs of investment in new generation, transmission, distribution, and grid modernization projects. The panel will examine "prudence" and "used-and-useful" standards, construction work in progress, riders and trackers, cost overruns, and recovery of costs associated with canceled or abandoned projects.
Description
Utilities are accelerating infrastructure investment in energy generation, transmission, and distribution. Recovery of those investments is not guaranteed or automatic. State utility commissions may examine whether the investment was needed, whether the utility acted "prudently," whether the resulting asset is "used and useful," and whether the suggested recovery mechanism fairly allocates costs across customers.
Risks may increase when a project encounters delays, cost escalation, or other developments that undermine the original model assumptions. Projects that are canceled or abandoned before entering service present further recovery challenges. Key is developing an effective record demonstrating the rationale behind management decisions, consideration of available alternatives, thorough project oversight, and more.
Listen as our authoritative panel examines the standards and strategies governing utility cost recovery for major capital investments.
Presented By
Mr. Musco is a trusted energy and economics advisor and witness, specializing in electric utilities, regulatory support, auction and market design, and prudence review of energy sector investments. He is a recognized expert adept at tackling complex economic challenges in the energy sector. Mr. Musco regularly consults and testifies on critical energy market and ISO/RTO issues, such as pricing in organized electricity markets, the economics of fuel and power purchases by utilities, mergers and acquisitions, prudence audits, FERC open access transmission issues, electric utility rates and tariffs, purchased power agreements, integrated resource planning, and electric utility costs and revenue requirements. He serves as an independent evaluator for utility regulators and electric utilities across North America for new and existing conventional and renewable generation, energy storage, and distributed energy resources. Mr. Musco has consulted on behalf of and in front of state and federal regulators on electric and natural gas economic, regulatory, and policy issues, and his experience includes working with more than 15 states and 5 Canadian provinces across North America.
Mr. Sherrier is responsible for litigation, working with SELC’s energy team to accelerate Georgia’s clean energy transition, and lobbying for smart energy policy at the Georgia General Assembly. His outcomes include successfully defending a community group against baseless claims of defamation after they exercised their constitutional right to protest and speak in opposition to a polluting facility in their neighborhood.
Ms. Thompson provides regulatory and transactional advice to clients involved in the generation, marketing, and transmission of electric energy. She largely practices before the Federal Energy Regulatory Commission (FERC), especially regarding matters arising under the Federal Power Act (FPA) and the Public Utility Regulatory Policies Act of 1978 (PURPA). Ms. Thompson regularly advises clients on compliance and business issues implicated in transmission- and interconnection-related agreements. In addition to assisting clients in FERC matters, she advocates for clients in various rate case and tariff-related proceedings before, and disputes involving, the Bonneville Power Administration, CAISO, and other ISOs/RTOs across the U.S., as well as the U.S. Court of Appeals for the Ninth Circuit, to help protect client commercial interests and transmission rights.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
Date + Time
- event
Thursday, November 5, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Utility investment and cost recovery framework
A. Rate base, revenue requirements, commission authority
II. Project approval and the record
A. Need, alternatives, projected benefits, initial assumptions
B. Procurement, oversight, and management decision-making
III. Prudence and used-and-useful standards
A. Applicable standards and timing of review
IV. Cost recovery mechanisms
A. CWIP, AFUDC, rate-base treatment, amortization
B. Riders, trackers, reconciliations, true-ups
V. Cost overruns, delays, and changed assumptions
VI. Canceled and abandoned projects
VII. Commission proceedings and judicial review
The panel will review these and other key issues:
- How do prudence and used-and-useful standards apply to major utility investments?
- When may utilities recover construction costs through CWIP, riders, or other mechanisms?
- What evidence supports or challenges recovery when projects experience cost overruns?
- When may a utility recover costs from a canceled or abandoned project?
- How can counsel build a persuasive record?
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