Construction Work in Progress Policy Act of 1983

Construction Work in Progress Policy Act of 1983 - Amends the Federal Power Act to authorize the Federal Energy Regulatory Commission to approve, upon application by a public utility, the inclusion of the costs of construction work in progress (defined as construction of a facility used to generate electric energy) in the rate base of such public utility with respect to: (1) any pollution control facility; and (2) the conversion of oil or natural gas-fired facilities to the use of other fuels.

Requires the Commission to hold an evidentiary hearing upon application by a public utility for approval of such a rate increase. Sets forth the items required in any such application. Requires the Commission to approve the rate increase applied for or to order a lesser rate increase if, after the hearing, the Commission finds that: (1) the utility will be in severe financial difficulty unless construction work in progress costs are included in the rate base; (2) the facility being constructed is reasonably necessary to meet energy demands; (3) any mismanagement involved will not affect the utility's future financial situation; (4) the long-term benefits justify short-run rate increases in the case of customers purchasing electric energy for resale; (5) such wholesale customers have been offered an ownership interest in the facility under construction; (6) the rate increase will not unreasonably impair the ability of wholesale customers to sell electric energy to their retail customers at the least cost; and (7) the applicant utility will discontinue the capitalization of allowance for funds used during construction for those construction work in progress costs included in the rate base.

Provides that no rate increase approved or ordered under this Act may: (1) be charged for electric energy sold before the date of such approval or order; (2) exceed the amount needed to alleviate the utility's financial difficulties; (3) have an anticompetitive effect; (4) be applied to any customer who holds an ownership interest in the facility being constructed (with limited exceptions); or (5) be unduly discriminatory or preferential or exceed a just and reasonable amount.