Some Advice to Regulators on Formula Rate Plans

Ken Costello

The Electricity Journal, 2011, vol. 24, issue 2, pages 44-54

Abstract: This mechanism for adjusting base rates outside a general rate case enables regulators to fairly address utilities' complaints about the need for frequent rate cases because of rises in the average cost of utility service and avoid outcomes where the test-year approach to ratemaking produces actual earnings below those authorized.

Date: 2011
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