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Equipment Replacement Rule

Equipment Replacement Rule

Equipment Replacement Rule

Anybody have any thoughts on the impact of the 3-judge ruling in DC (on March 17th) throwing out the 20% (of value) equipment replacment rule.  Do you think this will freeze facility repairs, maintenance activity?

RE: Equipment Replacement Rule

Plants typically decide which potential projects provide economic return, enhance safety, etc.  Modification and expansions are treated differently than in-kind repair or replacement.  If a plant makes money they will do what is necessary to stay in production.  If a plant cannot economically justify the repair then they may cease operation.  I see no freeze.  The financial impacts will be evaluated based upon the revised interpretation.
My 2 cents.

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