Cost recovery

Start the Conversation

The regulator’s role in a world divided by distributed generation.

A state utility commissioner urges her colleagues to begin planning now for distributed generation – before it’s too late.

Modernizing with Trackers

Time-tested cost recovery mechanisms provide stable funding for infrastructure replacement.

Automatic tracker surcharges provide timely cost recovery for multi-year utility system improvement programs.

Cost-Recovery for Pre-Approved Projects

Uncertainties remain, but recent cases provide guidance.

Levelized rates can serve customers’ interests, while also accelerating capital investment and providing an economic stimulus to the economy.

The Old Drawing Board

Portfolio planning in the age of gas.

PUCs are concerned that a rapid shutdown of coal-fired plants will start a full-tilt dash to gas—similar to the one that caused bankruptcies among independent power producers in the late 1990s and early 2000s. But this time around, ratepayers and not IPP investors will be stuck with the risk, if utilities rush to add all that new gas-fired capacity to rate base.

Hedging or Betting?

Lacking regulatory oversight, financial hedges turn into risky speculation.

Many utilities engage in hedging to protect customers from price spikes. But unless regulators are involved in crafting and monitoring these programs, they can turn into speculative ventures that put ratepayers at risk — for the benefit of shareholders.

Smart Grid in America and Europe (Part II)

Past accomplishments and future plans.

Policy makers in the E.U. and the United States are taking different approaches to facilitating smart grid development. While both regions are setting standards that the rest of the world likely will follow, they also face difficult challenges in resolving issues around cost recovery, customer engagement and workforce preparedness.

Smart Meters on The March

New federal policies portend a wave of demand-response programs, and perhaps a new era in resource planning.

When President Bush signed the energy bill on August 8, he set in motion a chain of events that might lead to major changes in the way utilities price and meter retail electric services—and ultimately in the way they value and use non-traditional energy resources.