Rate Cases

Energy Efficiency Unmasked

Regulatory formulas for rewarding efficiency investments.

Effective conservation incentives would send appropriate price signals to consumers. The more common approach, unfortunately, involves arbitrary standards that introduce market inefficiencies and ultimately harm consumers.

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.

Anomaly or New Normal?

Regulators weigh interest rate climate and future Fed policy in setting allowed return on equity.

(November 2013) Consumer advocates argue for lower allowed utility returns, to reflect lower financing costs. Our rate case survey shows mixed regulatory responses.

All You Need to Know

Picturing utilities in a series of sobering snapshots.

Utilities are growing rate base despite static or declining demand: making customers pay more for a product they want less of.

What Price, Resiliency?

Evaluating the cost effectiveness of grid-hardening investments.

As with any investment, resiliency upgrades can reach a point of diminishing returns. Analyzing the costs and benefits can help guide upgrade strategies.

Pricing Social Benefits

Calculating and allocating costs for non-traditional utility services.

Alternative ways to calculate utilities’ costs of service allow policy makers to achieve social goals in a way that’s fair and economically efficient.

Valuing Energy Efficiency

The search for a better yardstick.

Policy analysts are right to demand a reform of the total resource cost test. The evidence that it understates the benefits of energy efficiency, the main claim against it, is convincing.

Benchmarking Your Rate Case

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

With regulators reluctant to OK rate hikes, utilities can better justify an increase – if it compares well with the utility’s peer group.

Rethinking Capacity Markets

A pragmatic new approach to assuring reliability.

The latest dispute over PJM’s bidding rules has raised the level of uncertainty in organized electricity markets. Efforts at reform have created a market structure so jumbled that it can’t produce just and reasonable rates -- or assure adequate supply resources. It’s time for FERC to consider alternative approaches to market design.

Energy Efficiency's False Hope

Only behavioral change will reduce energy consumption.

Standards and technology don't reduce energy consumption, despite the claims of efficiency zealots. Real energy savings only come through behavioral change.