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Law & Lawyers

Residential and Commercial Customers Set Records

The residential and commercial classes bought record volumes of electricity this summer

On Tuesday afternoon, the Energy Department published electricity industry data for August. Among the thousands of values was this number: 155,863.

As in 155,863 thousand megawatt-hours. That was the nation’s residential consumption of electricity in August.

Residential consumption has never been that high in any month in history. 

August 2016 consumption is now number one. It beat number two, July 2011, by seven tenths of a percent.

Byline: 

Steve Mitnick

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Tracking the Bugs with Smart Meter Data

A few years ago, a medical researcher asked to add an agenda item to a meeting I was chairing in Geneva, Switzerland. Combining geographic and consumption data from real-time electric meter readings would allow public health officials to track the origin, path, and intensity of many contagious diseases.
Byline: 

Branko Terzic

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Smaller Percent for Electric Bills Means More Money for Gambling?

Commerce Department reports electric service was only 1.41 percent of personal consumption expenditures in September.

More good news yesterday for electric service customers.

The Commerce Department published the numbers it uses to estimate the gross domestic product. Including personal consumption expenditures, which is seventy percent of the GDP. 

Including the expenditures for cars, clocks, carpet, computers, cereal, clothing, cosmetics, child care, cabs, clubs, cable, cell phones and casinos. That’s just the c’s. 

And including the expenditures for electric service. 

Byline: 

Steve Mitnick

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Commissioner, did you pay the electric bill!? 

Demand-side management programs are not new to the electric utility industry. 

Arguably the most effective peak management tool was the invention of commercial and industrial interruptible service and tariff offerings. Electric utilities introduced effective residential peak shaving programs in the 1970’s as well.  

I know. I had direct experience with one when I was a young and new public service commissioner in Wisconsin in the early 1980’s.

Byline: 
Branko Terzic
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Electric Rates and Bills Down This Year, Despite Summer

Residential rates were 0.9% lower than last year, and commercial rates were 2.7% lower

The Energy Department reports that the average residential rate for electric service was lower than last year in every month this year through August (the latest month of the data). Except this March.

It also reports that the average commercial rate was lower than last year in every month this year. No exceptions.

Year-to-date, the average residential rate was 12.54 cents per kilowatt-hour this year. That’s lower than last year, by 0.9 percent, when it was 12.65 cents.

Byline: 

Steve Mitnick

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President-elect Trump and Utilities

What the election means for utility regulation and policy.

Last week, Donald Trump was elected President. 

OK, you knew that.

By now, you’ve read the speculation about what this means for all the aspects of domestic and foreign affairs. Sure, the impact on trade, immigration and jobs might be important to some folks. But you care about what this means for utility regulation and policy.

First, it seems likely that natural gas production and pipeline development will maintain its pace if not increase. There will probably be less tolerance for the efforts of opponents. Though those efforts could become more confrontational. 

Byline: 

Steve Mitnick

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The Incentive Theory

I was an early proponent of what has been called incentive ratemaking, price cap regulation or performance based ratemaking for public utilities. I’m cognizant it is not a new idea at all. 

During the 1980’s, the government of the United Kingdom, under Prime Minister Margaret Thatcher, decided to privatize the nation’s utilities. The utilities had been nationalized in the 1940’s. The UK rejected the US regulatory model, selecting a variant with annual rate adjustment. 

Byline: 
Branko Terzic
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The Bands of Regulation at La Quinta

NARUC’s Annual Meeting each November is the epic festival of regulation’s rock stars

Nov. 16, 2016: This week it’s been the center of the universe. No, not Trump Tower. La Quinta of course, California’s host town for the NARUC Annual Meeting.

NARUC’s Winter Meeting in February and Summer Meeting in July are enormous gatherings of utility regulators and their fandom. But the Annual Meeting each November is the epic festival of regulation’s rock stars.

Byline: 

Steve Mitnick

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The Price of Turkey, and Utility Service Too

October’s PPI for residential electricity is up 0.2% from last year, and commercial electricity is up 0.5%.

Nov. 17, 2016: Yesterday, the Labor Department published October’s producer price index for numerous goods and services. 

You’re likely most interested in what’s happened to the price of turkey. Thanksgiving is just a week away. Great news! Turkey’s price is down 16.6 percent from last year. 

Suppose you’re also interested in electricity and natural gas price trends. 

The PPI for residential electricity is up 0.2 percent from October 2015. For commercial electricity, it’s up 0.5 percent.

Byline: 

Steve Mitnick

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October's CPI: Electricity Still Lags Overall Cost of Living

As usual, the CPI for electric utility service lagged the overall CPI over the last 12 months.

Late last week, the Labor Department published October’s Consumer Price Index. The underlying detail shows consumer price trends for electric and natural gas utility service nationally and regionally.

Nationally, the overall CPI for all goods and services was up 1.6 percent over the last twelve months. 

As is usual these days, the CPI for electric service lagged the overall CPI. CPI-Electricity was up 0.4 percent over the twelve months. 

Byline: 

Steve Mitnick

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