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Equipment Replacement Rule 1

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bonzoboy

bonzoboy

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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?
 
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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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