Rate design should balance consumer and investor interests.
Regulators should ensure that changes to rate design seek to balance consumer and utility interests. Rates that are intended to insulate utilities from economic and technological change while providing no benefits to consumers ought to be considered unjust, unreasonable, and unduly discriminatory.
Uncertainties remain, but recent cases provide guidance.
Levelized rates can serve customers’ interests, while also accelerating capital investment and providing an economic stimulus to the economy.