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Friday, May 22, 2020 | History

1 edition of Alternative test year methods in public utility rate proceedings found in the catalog.

Alternative test year methods in public utility rate proceedings

Paul Rodgers

Alternative test year methods in public utility rate proceedings

by Paul Rodgers

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  • 10 Currently reading

Published by National Association of Regulatory Utility Commissioners in Washington, D.C .
Written in English

    Subjects:
  • Public utilities -- United States -- Rate of return,
  • Public utilities -- Rates -- United States

  • Edition Notes

    StatementPaul Rodgers, Gordon Pozza
    ContributionsPozza, Gordon L, National Association of Regulatory Utility Commissioners
    The Physical Object
    Paginationi, 64 p. ;
    Number of Pages64
    ID Numbers
    Open LibraryOL14439402M

    Public Utilities Reports guide: Principles of public utilities operations & management: educational program Paperback – January 1, See all formats and editions Hide other formats and editionsFormat: Paperback. Utility ratemaking is the formal regulatory process in the United States by which public utilities set the prices (more commonly known as "rates") they will charge consumers. Ratemaking, typically carried out through "rate cases" before a public utilities commission, serves as one of the primary instruments of government regulation of public utilities.

    For over a century, the law of public utility regulation has supported and disciplined the nation's infrastructural industries. Regardless of sector or era, all utility law has shared five features: its mission (to align private utility behavior with the public interest); its diversity (from state law exclusive franchises to federal protection of shareholder investment); its reliance on. Guidance for Utilities Commissions on Time of Use Rates: proceedings at the California Public Utilities Commission, including cases addressing utility while also considering inclining block rates (“tiered rates”) as an alternative to traditional flat volumetric rates.

    For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues. # # # Docket No.: M The Electric Power Research Institute (EPRI) conducts research, development, and demonstration projects for the benefit of the public in the United States and internationally. As an independent, nonprofit organization for public interest energy and environmental research, we focus on electricity generation, delivery, and use in collaboration with the electricity sector, its stakeholders and.


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Alternative test year methods in public utility rate proceedings by Paul Rodgers Download PDF EPUB FB2

The test year and are associated with new generating plant for which the Board granted advanced ratemaking treatment are also allowed under the new law. These changes were made to spur new investment and mitigate risk to the utilities.

The two standards set by the legislature in Senate File were applied to the option of a future test Size: KB. rendering of utility service upon which a reasonable rate of. return may be earned.

The Rate of Return is the percentage rate which the commission. finds should be earned on the rate base in order to cover the cost. of capital. The rate of return on invested capital is based upon the conceptof the. Tentative Order - Alternative Ratemaking Methodologies from the Public Meeting of March 2, at Docket No.

M Secretarial Letter - Granting an extensionof time to file Comments and Reply Comments to Tentative Order on Alternative Ratemaking Methodologies. Adjustments to the Test Year • A test year is restated to the extent necessary (or permitted) to produce the data considered reflective of conditions during the period rates are to be in effect Alternative test year methods in public utility rate proceedings book The adjustments that need to be made to the test year are generally classified as: – Commission prescribed adjustments – Accounting adjustments.

The rate level is established in a rate case using a “test year,” which is a representative 12 month period of normal utility operations.

In Minnesota, utilities may use a historical test year adjusted for known and measurable changes, or a forecasted test year. Under either type ofFile Size: 3MB. Revenue requirement determination is the first step in cost of service study.

Subsequent steps in cost of service study allocate total revenue requirement to various customer classes. After cost of service study is performed, to develop rates for each customer class, rate design analysis is conducted. Size: KB. Principles of Public Utility Rates instance, regulation should allow a fairrate ofreturn, but not guaran~ or protect a regulatee against mismanagement or adverse busine~l conditions.

Sound rate relationships are essential to the attainment~" these desirable ends. Calculating the Rates 17 •Utility Basis (cont‟d) –Return on Investment (ROI) •Intended to pay annual interest cost or provide a fair return for capital investments •There is no single optimal method for determining a fair or reasonable rate of return –Utility basis implies allocating expenses among customer classes.

This can also be File Size: KB. So if the utility is allowed an 8% overall rate of return and obtains debt for 5% (rd), its return on equity will be 11% (re).

If the allowed rr is raised to 9%, then the re will be 13%. Once the rate of return is set if the cost of debt decreases, the return on equity will increase.

methodology in social sciences will find this book very helpful in understanding the basic concepts before they read any book on research methodology.

This book is useful those students who offer the Research Methodology at Post Graduation and Level. This book is alsoFile Size: 1MB. This chapter focuses of the rate-setting function in public utilities. The process of setting rates (prices for services) in public utilities involves four steps: (1) determining operating costs, (2) distributing costs among different customer classes, (3) considering relevant load and use factors, and (4) designing the pricing structures that reflect the influences of the first three Author: David E.

McNabb. Welcome to the Public Utilities Regulatory Authority website. Here you will find information about the regulation of rates and services of Connecticut’s electricity, natural gas, water and telecommunication public service companies as well as franchise information about the state’s cable television companies.

The Tax Cut and Jobs Act (the Act), signed into law by President Trump on Decemreduced the federal corporate income tax rate from 35% to 21% effective for tax years beginning after Decem File Size: KB.

T he Public Utility Commission formally published its Implementation Order for Act 58 ofputting in place procedures through which utilities may seek Commission approval of applications establishing alternative rates and rate mechanisms in future base rate proceedings in Author: David E.

Hess. provide utility service. Utilities also issue long-term capital to finance the replacement and expansion of their facilities to fulfill public utility service obligation. To finance investment in physical plant and assets utilities generally use long-term capital such.

The second method of utility valuation is the cost approach method. This method is based on the underlying principle that an acquiring company would not purchase property for more than what it would cost to build a substitute facility with equivalent characteristics.

The Pennsylvania Public Utility Commission (“PUC”) is seeking information on alternative utility ratemaking methods, such as revenue decoupling. Decoupling advocates suggest that decoupling removes possible disincentives for utilities to promote greater energy efficiency because utility revenues are no longer directly linked to the volume of electricity or gas sold.

Power and utility industry measures in new tax law However, the new law also allows for an alternative method if the books and underlying records do not contain the vintage account data necessary to The following example illustrates the application of the average rate assumption method.

A calendar year regulated utility placed property. The Public Utility Commission published notice in the August 24 PA Bulletin of its final Distribution Rates Policy Statement identifying factors the Commission will consider when utilities propose alternative ratemaking mechanisms and rate designs in distribution base rate proceedings that promotes the efficient use of electricity, natural gas or water, the use of distributed energy resources.

Forthe growth rate was % based on historical performance. We can use the formula =(C7-B7)/B7 to get this number. Assuming the growth will remain constant into the future, we will use the same rate for – 2. To forecast future revenues, take the previous year’s figure and multiply it by the growth rate.

* Bonbright, James C, Principles of Public Utility Rates, Columbia University Press, New York NY,p. The Bonbright principles, as well as the Hope and Bluefield decisions, help regulators to determine rates for investor-owned utilities that balance the interests of utility ratepayers with those of utility .We provide our clients access to one of the nation’s largest pools of expert witnesses in the field of utility regulation, with more than 20 individuals who have appeared as experts in regulatory proceedings across North America, backed up by a team of consultants that are experienced in all aspects of developing the financial, economic and technical data filed as part of regulatory proceedings.

Today the Pennsylvania Public Utility Commission (PUC) announced it will hold a March 3, hearing in Harrisburg to gather information from experts regarding alternative ratemaking methodologies.

Ratemaking alternatives, such as revenue decoupling, for example, could involve making consumer charges less dependent on usage.

Decoupling advocates suggest that decoupling .