A utility rate case is a complex and challenging formal process that is conducted by utility regulators essential for setting the prices that utilities can change their customers. The rate case process involves a great deal of strategic planning, operational analysis, and a thorough understanding of the regulatory environment to submit an application with the utility commission successfully.
The first step in rate case preparation is to develop a clear and concise regulatory strategy. This strategy must take into account the specific goals and objectives of the utility, as well as the unique complexities of the energy sector. Once the strategy is in place, the next step is to begin the actual preparation. This process includes a comprehensive review of the utility’s costs, revenues, and other relevant factors.
This process aims to create a rate that is just and reasonable for the utility and its customers. Rate cases are challenging, but with careful planning and execution, they can be an effective tool for setting prices in the energy sector.
Outcomes are not tied to an exact timeline to allow developments to occur at a pace established by market participants. Rate proceedings will be critical for refining and implementing earnings adjustment mechanisms. Meanwhile, demonstration projects will likely inform the developments of platform service revenues.
In rate plans, utilities will be encourages to displace capital expenditures with third-party distributed energy resources where cost-effective and retained earnings on capital are already at base rates until rates are reset.
ScottMadden understands the strategic and operational challenges if energy regulation. We can provide you with regulatory strategy, rate case preparation, and management support. We also provide expert testimony and can help you with best practices, regulatory process improvement, preparation for compliance audits, and more.
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