Reducing Rate Shocks

Original-cost ratemaking doesn’t suit the challenges facing utilities today.

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

Profit and the New Normal

Delivering value in a zero-growth market.

Disruptive technologies and resource shifts are changing the utility business model. Market factors are driving companies toward four possible paths.

Industry in Transition

Utility CEOs face disruptive trends.

Top executives at AEP, the California ISO, and El Paso Electric address key challenges and opportunities.

Investor Sequester

State complaints over FERC-granted equity returns could dry up funding for transmission expansion.

Perhaps sensing the weight of evidence allayed against them, transmission owners have thrown caution to the wind by openly and admittedly submitting an ROE analysis that doesn’t comport with FERC precedent.

Transactions (June 2013)

Atlantic Power sells 800 MW of generating capacity in Florida and Texas; Goldman Sachs buys Imperial Valley project from FirstSolar; Duke acquires two solar plants in California; Southern Company and Turner Renewable Energy buy Campo Verde project; plus other deals and issues totaling more than $2 billion.

Minnesota PUC Adds PV Capacity Credit in Xcel Standby Tariff

Upon review of a load profile study submitted by Xcel Energy, the Minnesota Public Utilities Commission (PUC) found that “it is clear … that solar PV facilities contribute to Xcel’s capacity requirements and that the existing Standby Service tariff does not reflect that contribution.” The commission ruled that $5.15 per kW per month would be a reasonable, conservative interim rate to be paid to sellers in the form of a capacity credit.

Michigan PSC OKs AMI Opt-Out for Detroit Edison

The Michigan Public Service Commission (PSC) authorized Detroit Edison to implement an AMI opt-out program. The commission approved the specifics of the opt-out proposal submitted by the utility, except that it reduced the associated charges recommended by the company, finding that the company’s forecasted participation rate was too low. For complete regulatory coverage, citations, and analysis, subscribe to Utility Regulatory News http://www.fortnightly.com/urn-subscribe

DC PSC Nixes AMI Opt-Out for Pepco

The District of Columbia Public Service Commission (PSC) has denied a request by the city’s public advocate, the Office of People’s Counsel (OPC), to reconsider an earlier decision in which the commission had rejected calls for it to require Potomac Electric Power Co. (Pepco) to offer its customers a chance to opt out of an ongoing AMI program. For complete regulatory coverage, citations, and analysis, subscribe to Utility Regulatory News http://www.fortnightly.com/urn-subscribe

Arizona Reopens Health Question in Metering Docket

The Arizona Corporation Commission has reopened the record in a pending docket on advanced metering infrastructure (AMI) to examine safety and health concerns regarding smart meters. In so doing, the commission said it was particularly interested in seeing any health studies that have been conducted since the evidentiary phase of the case had closed. The commission related that such submissions would help it determine if there was a compelling reason to continue the fact-gathering process before proceeding to the deliberations phase.

Missouri OKs Lower Voluntary Rate Schedules

The Missouri Public Service Commission (PSC) approved a proposal by Ameren Missouri to update a voluntary program which gives consumers the opportunity to finance the purchase renewable energy credits (REC). Ameren charges customers $15 per credit, including the ability to purchase amounts equal to their monthly usage or select a set number of RECs per month. The PSC said that price was about average for such programs in the United States.