Traditional rate making will remain prominent in the near term.
Outcomes are not tied to an explicit timeline to allow developments to occur at a pace established by market participants. Rate proceedings will be a critical venue for the refinement and implementation of earnings adjustment mechanisms. Meanwhile, demonstration projects currently underway are likely to inform development of platform service revenues. In rate plans, utilities will be encouraged to displace capital expenditures with third-party distributed energy resources, where cost effective, and retain earnings on capital already in base rates until rates are reset in their next rate case.
ScottMadden understands the strategic and operational challenges posed by energy regulation. We can provide you with regulatory strategy and rate case preparation and management support. We also provide expert testimony, and we can help you with best practices, regulatory process improvement, preparation for compliance audits, and more.