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Gas Pipeline Recovered Capital Cost

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Description:Capital cost recovered by flowing gas through the pipeline

Gas Pipeline Recovered Capital Cost is the build cost that is recovered over a period of time, i.e. the investment recovery over the horizon using future cash flows. It is calculated as follows:

Recovered Capital Cost \displaystyle = \sum_{i=1}^{n} P_{i} \times RP \times D_{i}

where n is the total number of years, i is the year, P is the flow(GJ) denoting the usage, RP is the Recovery Price ($/GJ), and D is the discount factor.