(November 2007) Fortnightly's annual rate-case analysis reveals a new trend at state PUCs involving return-on-equity rate allowances. Regulators increasingly are giving utilities...
Return On Equity: Regulators Trust, but Verify
Some recent utility rate proceedings cast doubt on new ROE models and “risk adders.”
order for notice and hearing the commission consolidated utility’s rate-case filing and application for performance-based rate plan. Utility may decline commission-approved performance plans, in which case rates may be reset based on cost-of-service data.
24. Order approving performance-base rate plan. Commission rejects proposal to dismiss general rate filings and approves revenue requirement findings as shown to be used in event utility rejects plan.
25. Financial data indicated the need for a $393.9 million increase, but WEPCO only requested an increase of $256.4 million based on the recovery of: $67.5 million in costs related to transmission charges; $70.1/million related to reliability investments; $6 million in costs related to renewable sources of energy; $93.4 million in additional fuel costs; and $19.4 million related to Midwest Independent Transmission System Operator additional costs.