April 24, 2017

Time to Hit the Reset Button on Utility Distribution Company Ratemaking

For years, many have been lamenting the ever-increasing number of rate mechanisms which fall outside of the base rate review process for utility distribution companies. There are roughly a dozen reconciliation charges, trackers and automatic adjustment charges on the bill for each gas and electric utility. Call them what you will, they all do the same thing: allow utilities to recover 100 percent of certain costs of providing service separate from their total cost of service. This is a problem because as individual costs are pulled out of th more