Duke Power & Light just spent $10 million to repair one of its electrical grid substations that was heavily damaged by a lightning strike.The loss was not insured.
Required:
Why would a utility ask the public service commission for approval to treat the $10 million as an asset for rate-making purposes rather than as an allowed expense?

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The Answer of Duke Power & Light just spent $10 million to repair one of its electrical grid substations that was heavily damaged by a lightning strike.The loss was not insured.
Required:
Why would a utility ask the public service commission for approval to treat the $10 million as an asset for rate-making purposes rather than as an allowed expense?

Duke Power & Light Just Spent $10 Million to Repair