Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

Benchmarking Your Rate Case

Show the PUC how your filing stacks up against the others.

Fortnightly Magazine - July 2013
This full article is only accessible by current subscribers. Please login to view the full content.
Not a subscriber yet? Click here to subscribe for one year of Fortnightly Magazine, and gain access to the entire Fortnightly article database online for you and three of your coworkers.

is a sub-optimal number. Utilities should aspire to raise their load factors because that will lower their average costs and relieve the upward pressure on rates.

Endnotes: 

1. The weak economic recovery is one of five factors slowing down sales growth with demand-side management, codes and standards, distributed generation and fuel switching toward gas being the other four. See Ahmad Faruqui and Eric Shultz, “ Demand Growth and the New Normal ,” Public Utilities Fortnightly , December 2012. Ironically, the slowdown in sales growth is prompting utilities to raise rates, in order to recover their fixed costs which, ipso facto, don’t move proportionately with sales. For example, Xcel Energy in Minnesota is requesting a rate increase partly to recover fixed costs that run the risk of being stranded as sales growth slows down due to an expansion in its Demand-Side Management programs. Especially relevant to this paper are Faruqui’s rebuttal and direct testimonies which can be found here and here.

2. The data used in this analysis is from EIA Form 861, which includes retail revenue and sales data for each utility in the U.S.

This full article is only accessible by current subscribers. Please login to view the full content.
Not a subscriber yet? Click here to subscribe for one year of Fortnightly Magazine, and gain access to the entire Fortnightly article database online for you and three of your coworkers.