Electric utility ratemaking hearing before the Subcommittee on Oversight and Investigations of the Committee on Interstate and Foreign Commerce, House of Representatives, Ninety-fifth Congress, first session, on review of a case study, Henderson, Nev., July 1, 1977. by United States. Congress. House. Committee on Interstate and Foreign Commerce. Subcommittee on Oversight and Investigations.

Cover of: Electric utility ratemaking | United States. Congress. House. Committee on Interstate and Foreign Commerce. Subcommittee on Oversight and Investigations.

Published by U.S. Govt. Print. Off. in Washington .

Written in English

Read online

Places:

  • Nevada,
  • Henderson

Subjects:

  • Electric utilities -- Nevada -- Henderson -- Rates

Book details

Classifications
LC ClassificationsKF27 .I5547 1977k
The Physical Object
Paginationiii, 86 p. ;
Number of Pages86
ID Numbers
Open LibraryOL4373666M
LC Control Number78601256

Download Electric utility ratemaking

This book explains how the traditional rate-setting process is commonly done for energy utilities. This book includes a discussion of revenue requirement, rate base, cost of capital, expenses, revenues, rate-making objectives, cost of service studies, rate design, the rate case process, tariff policies, metering, service quality and other types of cases affecting rates/5(4).

A guide to FERC electric utility ratemaking Unknown Binding – January 1, by Michael E Small (Author) See all formats and editions Hide other formats and editions. The Amazon Book Review Author interviews, book reviews, editors' picks, and more. Read it now.

Enter your mobile number or email address below and we'll send you a link to Author: Michael E Small. FERC's exercise of its ratemaking jurisdiction over electric utilities under the Federal Power Act.' The book, consisting of almost ninety pages of text and an additional seventy-five pages of appendices and indices, provides a quick and imminently readable access to the FERC's jurisprudence on virtually all areas of electric utility ratemaking.

Briefing Book Kansas Legislative Research Department N-2 Electric Utility Regulation and Ratemaking 3 states. Opponents stated the resolution was unnecessary as rate reductions would be realized through a pending merger of Westar and KCP&L. The resolution passed the Senate Committee of the Whole but died in the House Committee on.

Briefing Book Kansas Legislative Research Department Utilities and Energy M-3 Electric Utility Regulation and Ratemaking 3 states. Opponents stated the resolution was unnecessary as rate reductions would be realized through a pending merger of Westar and KCP&L.

The resolution passed the Senate Committee of. This book is very useful for its thorough survey of issues and cases pertinent to electric utility rate filings at the Federal Energy Regulatory Commission (FERC). As the author states, the book provides a step-by-step analysis of the statutory provisions, regulations and case law that are pertinent to the establishment of electric utility sales and transmission rates.

producer was limited to only the largest users and subject to tight limitations. The electric industry was also vertically integrated as a monopoly. The generation side of the house was 1 The links appearing in this handbook were accessed during September through November Most likely, they.

The ratemaking principle of Gradualism is applied when electric utilities adjust rates in smaller increments over time to avoid dramatic rate increases all at once. Utility margins should be included in fixed charges whenever possible, so that variations in weather or conservation do not adversely impact utility margins.

“Utility Ratemaking” is the name of the process that public utilities must go through, by law, to set the rates or prices that they will charge their customers. The government is better able to regulate Electric utility ratemaking book utilities via the ratemaking process, by conducting and investigating rate cases with the state Public Utilities Commission.

ratemaking formula 6 Basic COS Components: Rate Base and Rate of Return The Rate Base is the net amount of investment, funded by investors, in utility plant and other assets devoted to the 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.

If a utility has a capital structure of 50% debt, as regulators encourage, then: rr rd + re. Where: rd = return on debt and re = return on equity. 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%. 7 TRADITIONAL RATEMAKING PROCESS n Determination of Revenue Requirement n Total Revenues necessary to recover prudent investment, to recov er reasonable and necessary costs, and to earn a fair profit n Driven by actual or projected costs n Allocation of Costs to Customers n Generally based on usage n Cost causer pays balanced by social/economic issues n Establishment of Actual Rates to.

Cost of Service Ratemaking Regulation Status of Michigan Electric Utilities •8 Investor-Owned Electric Utilities (regulated by MPSC) •9 Cooperative Electric Utilities –3 rate-regulated by MPSC –6 member-regulated Dr. James C. Bonbright in his book “Principles of Public Utility Rates” (), which is often quoted by rate.

Basic ratemaking components Steps in calculating rates The rate approval process. In most cases providing utility service functions better as a monopoly (more efficient provision of service) ›Basic ratemaking concepts have been shaped and molded over the last years. The original Rate Case Handbook was first published in The handbook served as a valuable resource for energy and utility practitioners.

Just as before, the updated guidebook is well laid out and manages to make complex information easy to digest. Includes discussion of multi-year rate plans and other forms of performance-based ratemaking, revenue decoupling, formula rates, forward test years, and capital cost trackers.

Utility Strategy Proposal Planning – Students break into teams to craft proposed utility strategies for dealing with issues raised by the course.

Wednesday, July Basic Ratemaking Geoff Werner, FCAS, MAAA and Claudine Modlin, FCAS, MAAA Willis Towers Watson This text outlines basic property/casualty insurance ratemaking concepts and techniques.

It is intended to be a single educational text to prepare actuarial candidates practicing around the world for basic ratemaking. Performance-Based Ratemaking for Electric Utilities: Review of Plans and Analysis of Economic and Resource- Planning Issues Volume I. Publication Type.

Finally, we look at the interaction among PBR and utility-sponsored energy efficiency programs and the restructuring of the industry's generation segment. Year of Publication. Keywords.

Public Utility Commission of Texas (PUCT) to analyze alternative ratemaking mechanisms adopted by other states and to provide a report thereon to the legislature by Janu The bill reflects concerns that electric transmission and distribution (T&D) costs are increasingFile Size: KB.

Ratemaking is a two-step process. Commission staff - a group of accountants, economists, financial analysts, and engineers - reviews the utility's books and records. Commission staff has the ability to submit requests for additional data or information to the utility and the utility must respond to these requests.

the Commission. • For ratemaking purposes, the income statement summarizes: (1) the funds collected by the utility from its customers; (2) the company’s spending and its use of resources in providing service to customers; and, (3) the company’s net operating earnings.

• The income statement includes: – Operating Revenues – Operating Expenses. Each of the seven chapters addresses a particular facet of public-utility ratemaking. Chapter One contains a discussion of the evolution of the public-utility concept, as well as the legal and economic justification for public utilities.

The second chapter sets forth an analytical economic model which provides the basis for the next four chapters. Electric utilities are monopoly service providers and therefore subject to unique financial requirements and regulations. Unlike competitive service providers, rates charged and cost recovery mechanisms are subject to unique principles and differing levels of regulatory oversight ranging from self-regulation in the case of electric cooperatives to local board or council regulation in the case.

equity for ratemaking purposes-was then only a nascent concept.7 Text-books on public utility ratemaking, for example, did not start including discus-sions of the DCF approach until the early s.' The first DCF advocates in rate proceedings were witnesses for ratepay.

An Introduction to Utility Cost of Capital Policy & Planning Division California Public Utilities Commission The overall rate of return (ROR) or cost of capital from a ratemaking perspective is a weighted average preferred equity, and common equity, where the weights are the book-value percentages of debt, preferred equity, and common.

Alternative Ratemaking Methodologies Order. 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.

Comments are now due by and Reply Comments are due. Get this from a library. A consumer's guide to the economics of electric utility ratemaking. [James I Sturgeon; Illinois Office of Consumer Services.; United States.

Department of Energy. Division of Utility Regulatory Assistance.; Mid-America Economics Institute.] -- This guide deals primarily with the economics of electric utilities, although certain legal and organizational aspects of.

Other Ratemaking Processes (Cont.) of Utility Self-Implemented rates. reconciled after approval of final rates. Special Contracts. Individually approved by the Commission. TIER ratemaking.

Simple mechanism used for rural co-ops. Your electric utility is offering a rebate to switch to a more efficient electric heat pump water heater. It could save you money by heating water at. 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, but criteria are required to judge whether, ari~'. Next, the paper explores the ratemaking process and concludes that it is imbued with false precision, and that so-called subsidies between ratepayers are a feature, and not a flaw, of utility rates.

For IOUs, competition in the business of electricity distribution is unusual but not by: 2. 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.

Apr. 03 — The following post was written by research groups within our Energy offering, including Regulatory Research Associates, or RRA. For further information on the full reports, please request a call. California leads the nation in the adoption of electric vehicles, or EVs, but the state remains in the early stage of the adoption cycle.

Comparative Analysis of PUC Ratemaking Authority As Required By House. Bill Background and Purpose. House Bill (HB) 1. and Senate Bill (SB) 2. transferred the economic regulation of water and sewer utilities from the Texas Commission on Environmental Quality (TCEQ) to the Public Utility Commission (PUC).File Size: 88KB.

Generally if a utility found its costs are exceeding the amount of revenue it’s bringing in, it has to file a base rate case with the PUC—an involved, expensive process that can take months. Due to the regulatory lag, utilities can continue to lose money.

Alterative ratemaking provides more : Marie Cusick. Ratemaking alternatives, such as revenue decoupling, for example, could involve making consumer charges less dependent on usage.

Decoupling advocates suggest that decoupling removes possible disincentives for greater energy efficiency because utility revenues are no longer directly linked to the volume of electricity or gas sold.

by Bob Shively, Enerdynamics President and Lead Instructor Perhaps the most important factor in the gas and electric utility business is the setting of rates. This determines what customers pay for their services and establishes the utility’s opportunity to remain financially viable.

Rate setting is accomplished via a proceeding called a rate case. COVID Resources. Reliable information about the coronavirus (COVID) is available from the World Health Organization (current situation, international travel).Numerous and frequently-updated resource results are available from this ’s WebJunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus.

This seminar addresses the utility’s key rate issues and the principles that regulatory commissions apply when making rate decisions.

Participants will explore current critical rate issues from the standpoint of various stakeholders, and become familiar with how ratemaking is evolving and how this evolution can provide new earnings opportunities. @article{osti_, title = {Study of the treatment of construction work in progress and tax-timing differences for rate-making purposes in the electric utility industry}, author = {}, abstractNote = {A study was prepared encompassing a background analysis of the effects of the inclusion of Construction Work in Progress in the rate base and normalization of all income tax costs of the.

Subject matter specialists will cover three major topics: electric and gas utility operations, traditional utility ratemaking concepts, and utility industry accounting and financial reporting. The first topic addresses the economic characteristics of utility companies and provides an introduction to electric and gas utility operations and concepts.[Live, online training] Utility Ratemaking: An Introduction.

Jan. 27, • Online Visit the Event Page.of tax reform on net revenues. Ma In brief The Tax Cut and Jobs Act (the Act), signed into law by President Trump on Decemreduced estimated book life if the utility is unable to identify the reversal pattern In the ratemaking process, the utility’s rate base is generally reduced by the ADIT or, in certainFile Size: KB.

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