Rate Cases

When the goals of a utility and its host community aren’t in sync, breakups happen.

As utilities plan their capital budgets for the next few years, investments in advanced distribution systems face an uncertain future. Customers question the value—and propriety—of some programs, while long-term strategic goals depend on seamless integration. What will be the path forward for smart grid technology?

Integrated resource planning must level the field for both supply- and demand-side resources. Commissions in several states are showing the way.

The conventional wisdom about utility spending is correct, but key factors affecting customer satisfaction aren't obvious—and are tricky to control.

Utilities seeking financing for environmental upgrades should look to the markets for debt and equity, rather than trying to securitize those costs.

(November 2012) Fortnightly’s annual rate case survey is designed to give readers a look at rates of return on equity (ROE) awarded in state-level retail base rate proceedings for electric and natural gas utility companies. An examination of the reasoning and commentary contained in these orders provides a glimpse into economic factors considered by regulators as they seek to balance the interests of investors and consumers when authorizing utility ROEs.

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.

Gas-fired generators and suppliers alike can each share risk and reward from historic low prices with contracts that blend market and fixed prices

Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.