View Single Post
  #83   Report Post  
jim rozen
 
Posts: n/a
Default Living without air conditioning.

In article , Gary Coffman says...

Example, say the prime rate averaged 10% over a 30 year
plant operating life. Assume the up front capital investment
in plant was $5 billion. The PSC would apply their formula and
set the utility's rates so that they would receive 12% of $5 billion
($600 million) ROI each year. Over the 30 year life of the plant,
that's $18 billion dollars. Note that over that same period the
utility gets to write down (depreciate) the original $5 billion
to reduce their tax liability.


Granted indian point's been running since the early 60s, so that
may change things. But if my guess is correct, five or ten percent
of profit would wind up being $0.1 billion or so, to close out the
plant.

That's a hundred million, not twenty million.

Jim

==================================================
please reply to:
JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com
==================================================