Your electric utility board won’t increase rates, what are some options?
- May 14, 2021 3:46 pm GMTMay 14, 2021 1:26 pm GMT
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Electric utilities of all types (electric cooperatives, investor-owned, and public power) have oversight boards or commissions at the state and local level responsible for approving electric rates. They base their decisions on rate studies prepared to estimate the amount of revenue provided from rates, comparing those revenues to expenses, debt service, capital improvements, and the expected return on ratebase.
There are times that these oversight bodies may not pass or may delay rate increases that are needed. Reasons vary, I.e., lack of convincing an increase is required, a compelling argument not presented by management, or politics and ratepayer pushback. A rate increase voted down opens the door for "Plan B", the fallback plan. But, what is the fallback plan? This article discusses some Plan B approaches.