An interesting development in the climate change debate occurred this summer in the U.S. Congress. It wasn’t the Senate’s work on the Lieberman-Warner Climate Security Act; that was a...
How to Tango With a Regulator
Utilities and financiers want ratepayers to fund the next wave of power plants. Will higher electric rates spoil the party?
might not look like much to the seasoned executive, but Richard Rudden, managing director, R.J. Rudden Associates, a Black & Veatch company, provided a whopping number for transmission and capital development over 10 years: as much as $300 billion industry-wide. He said that could mean a 40 percent cumulative increase in retail electric rates, and he warned that regulators might go back to conducting prudence reviews.
That would be a cold splash of water on the warming relationship between regulators and utilities. But in the end, no matter how it plays out, both will have to face the music.