utilityoperatingcost
Utility operating cost is a term used to describe the ongoing expenses a utility incurs in order to run its day-to-day operations and deliver its services, such as electricity, water, gas, or telecommunications. In many accounting and regulatory contexts, it refers to operating and maintenance expenses rather than capital expenditures or depreciation, though the exact treatment can vary by jurisdiction and framework.
Typical components of utility operating costs include direct O&M expenses such as labor, maintenance and repairs,
Calculation and use: Operating costs are reported on financial statements as O&M expenses. In regulated industries,
Considerations: The exact definition of utility operating cost varies by sector, country, and regulatory regime. Differences