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This excerpt taken from the PCG 8-K filed Oct 28, 2005. Capitalized
Interest and AFUDC
AFUDC is the estimated cost of debt and equity funds used to finance
regulated plant additions that is allowed to be recorded as part of the costs
of construction projects. AFUDC is recoverable from customers through rates
once the property is placed in service. The Utility had capitalized interest
and AFUDC of approximately $32 million at December 31, 2004 and
$29 million at December 31, 2003. PG&E Corporation on a stand-alone
basis did not have any capitalized interest and AFUDC at December 31, 2004
and 2003.
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