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Eversource explains how internal labor on LiDAR and IT projects is capitalized and how RAM/Grama interacts with base rates
Summary
Company witnesses told PURA staff that internal labor charged to capital work orders is actual hours, that representative amounts are removed from base distribution rates in rate cases, and that RAM/Grama recovery uses depreciation and a full revenue‑requirement calculation.
Eversource witnesses told the Public Utilities Regulatory Authority that internal employee labor charged to capital work orders for IT projects such as LiDAR implementation is recorded as actual hours and capitalized when it meets accounting rules; base distribution rates are adjusted using a representative amount in rate cases and RAM/Grama recovery is calculated using depreciation as part of a full revenue requirement.
Nut graf: The exchange addressed how internal labor is treated for capital projects, how much of those costs appear in base distribution rates versus RAM (reconciliation) filings, and the company’s rationale for using representative percentages drawn from the most recent rate case test‑year data.
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