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 in the rate base of such utility of the costs of construction work in progress (defined as construction of a facility used to generate electric energy) 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. Authorizes the Commission to approve by final order the costs of construction work in progress for other types of facilities, subject to the requirements under this Act.

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 utility has initiated programs to acquire alternative energy resources; (3) the facility being constructed is reasonably necessary to meet energy demands; (4) any mismanagement involved will not affect the utility's future financial situation; (5) the long-term benefits justify short-run rate increases in the case of customers purchasing electric energy for resale; (6) innovative financing is insufficient to alleviate or prevent severe financial difficulty; 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 charged to recover any costs imprudently incurred; or (5) be unduly discriminatory or preferential or exceed a just and reasonable amount.