Question

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Answer 1

One of the main components of the Full Cost of Electricity is capital expenditures for equipment that is used to generate or deliver electricity. Capital expenditures include the upfront cost of generation technologies, utility poles, electrical wires, substations, transformers, and other electrical equipment, as well as long-term interest payments required to finance upfront capital costs.

The Full Cost of Electricity study seeks to quantify the capital costs of the electricity system and how they affect decisions and interactions with other cost factors to determine the total direct and indirect costs of electricity.