The AFUDC Acceleration
2 filers across 1 sector are flagging higher capital deployment. First surfaced in 2025Q3; tracked through 2025Q4. Almost entirely a capital story (89%). Recent filings describe "allowance for equity funds used during construction was $243 million compared to $167 million." Still gaining momentum.
Regulated utilities are capturing significantly higher allowance for funds used during construction (AFUDC) on swelling capital expenditure bases, boosting non-cash earnings and offsetting interest expense growth.
DISTINCT NEW FILERS PER QUARTER
✦ WHAT THE DIFF CAUGHT
Language shifts from forward capex risk to present-tense earnings accretion via a regulatory accounting mechanism.
REPRESENTATIVE SIGNAL FROM FILINGS
“allowance for equity funds used during construction was $243 million compared to $167 million”
AFUDC increased significantly year-to-date 2025 to $243 million from $167 million in 2024, driven by higher capital expenditures at Georgia Power and Alabama Power.
“higher AFUDC equity rate and base compared to the prior year”
AFUDC equity rate and base increased compared to the prior year.
DRIVERS