Accounting & Depreciation

The Power of Innovation, Part II

Utility Execs' Roundtable: We sat down with five utility execs who lead their companies on innovation

Migrating to a model that focuses on product and service volume to produce margins is a fundamental shift. But the challenge these executives acknowledge is learning how to blend several unique business models as the scope of their business expands.

Grand Theft with Capital Recovery

Western utility economics puzzle former Communists

I am not sure how many older generation post-communist managers stayed in such positions after the introduction of capitalism and national programs of commercialization and privatization. Under the communist system, the public utility services bill was based on pricing principles far removed from any notion of the cost of the services.

2016 Annual Rate Case Survey

It is often said that ratemaking is as much art as science.

It is the process of setting a return on equity that is fair to both shareholders and consumers that demonstrates the art and science practiced by regulators. One case reported here provides a good glimpse at the entire range of issues put before regulators: a decision by the Michigan Public Service Commission setting electric rates for Consumers Energy Company.

Innovation and Capital Recovery

A History of Public Utility Regulation

The electric power industry is the key industry in our society. Nothing can function without adequate, reliable, fairly-priced produced and delivered electric service. Getting the capital recovery or depreciation right is not optional.

Local Financing Benefits U.S. Utilities

Banks, Utilities Find Natural Fit

Local banks are still an under-utilized resource for electric utilities, despite the role these banks played historically. Regional and local banks are often healthier than big banks, according to the Federal Reserve.

Rethinking Rate Design

Berkeley Lab’s Discussion with Five Experts

Five of our industry's top thought leaders weigh in on the white-hot controversy of rate design as utilities and regulators plot a course for electricity's future.

Nice Work If You Can Get It

Rate of Return for Fun and Profit

If you want actionable intelligence up front, here it is: invest in regulated utilities. There is mounting evidence that investment in utility stocks has outperformed the broader market in the past, and will continue to do so.