Home > Term: original cost
original cost
The actual cost of land, buildings, pipelines and other plant items (in the Code of Federal Regulations) "to the person first devoting it to public service." (Distinguished from the cost to a subsequent owner of acquiring such property after it is already "devoted to public service"). In ratemaking a rate base developed on original cost will not include the difference between the pipeline's acquisition cost and the original cost of facilities acquired. See HISTORICAL COST.
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