Targeting Attrition: Some Familiar Ratemaking Tools

Wed Aug 31 16:24:00 EDT 2011
By Kurt G. Strunk, et al.

Electric utilities are now facing a persistent inability to recover the real costs of providing utility services, and the extensive construction programs facing the electric utility industry threaten to exacerbate this attrition problem. This article from The Electricity Journal investigates new applications of traditional regulatory tools, aiming to provide commissions and utilities with examples of approaches that meet such challenges. The authors survey and review key regulatory building blocks that could accommodate regulatory approaches that result in more timely recovery of costs.