Description
Money necessarily invested in the business to carry on the day-to-day operations. Working capital includes: 1) Cash working capital requirements; 2) Average monthly balances of: a) materials and supplies (inventory) b) prepayments (i.e., taxes, rents, insurance) c) gas held in storage for current use (inventory) d) advance payments on gas purchases. The Natural Gas Act permits the recognition of a working capital allowance in the rate base.