Which term describes purchases of equipment or line construction in utility management?

The term that best describes purchases of equipment or line construction in utility management is capital expenses. This classification refers to the significant investments made by a business to acquire, upgrade, or maintain physical assets such as buildings, machinery, and equipment. These expenses are typically incurred to improve the long-term productivity and efficiency of the utility infrastructure, which can lead to better service delivery to customers.

Capital expenses are considered long-term investments, as they usually deliver benefits over multiple years. Understanding the distinction between capital expenses and other types of expenses is crucial for utility management, as capital expenditures often require careful planning, budgeting, and financing strategies to ensure that the utility can support its growth and service demands efficiently.