Law & Lawyers

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.

Electric Utility History in History

George Bernard Shaw, President McKinley, Dr. Benjamin Spock, Al Capone

George Bernard Shaw got his start with Edison and Insull; President McKinley collapsed in his arms, later he founded EEI; Dr. Spock’s child care book, and Reddy Kilowatt; Scarface Al Capone thwarted by utilities’ Sam Insull

Residential Demand Charges: Bad Choice

Time-of-Use is a Better Reform

Utilities go too far in their proposals to recover capacity costs from rooftop solar customers who self-generate. The affirmative case for Time-of-Use tariffs that reflect marginal costs is strong for all customers.

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.

Watch Your Language

Beware of Utility Lingo in Customer-centric World

To be heard, utilities must change the habit of relying on rate case jargon for customer communications.