New Regulatory Frameworks
These resources provide answers to commonly asked questions about new regulatory frameworks in the electric utility industry.
  • What is the problem?
    New Regulatory Frameworks for Electric Infrastructure Investment
     | May 2011
    A four-page brochure that provides an overview of key policy tools that can be configured to form new regulatory frameworks (i.e., construction work in progress, cost trackers, rate and revenue caps, revenue decoupling, formula rate plans, future test years).

    Forward Test Years for U.S. Electric Utilities | August 2010
    A comprehensive explanation of the key role unit cost plays in driving the need for utility rate increases. Explains how input price inflation, productivity, and average use affect changes in unit cost.
  • What do new regulatory frameworks look like?
    New Regulatory Frameworks for Electric Infrastructure Investement | May 2011
    A four-page brochure that explains that the coincidence of rapid capital spending with slowing sales growth is putting pressure on rates, utility credit worthiness, and ultimately, the whole regulatory process. Also suggests that new regulatory frameworks can alleviate these pressures.
  • What's out there already?
    Alternative Regulation for Evolving Utility Challenges: An Updated Survey | January 2013
    A survey of recent state regulatory innovations designed to address regulatory lag, a problem that is gaining urgency as slowing sales growth takes away revenues that used to offset the lack of timely cost recovery. Reflects precedent involving cost trackers, construction work in progress (CWIP) in rate base, multiyear rate and revenue caps, various kinds of revenue decoupling, formula rates, and forward test years.
  • What's been the experience with new regulatory frameworks?
    Case Study of Alabama Rate Stabilization and Equalization Mechanism | June 2011
    An eight-page case study that describes the design, operation, and experience with Alabama’s Rate Stabilization and Equalization mechanism. Includes key lessons learned.