Burns & McDonnell - Watch our T&D How videos

Pricing

Maximum Burden

Although EPA claims its tough new clean air regulations will improve public health, in fact they’ll measurably degrade the health of Florida seniors.

Image: 
Figure 1 - Florida Residents 65 years or Older
Figure 2 - Utility MACT and Florida Elders
Category: 
Op Ed
Author Bio: 

Roger H. Bezdek (rbezdek@misi-net.com) is president of Management Information Services Inc. He’s authored several articles for Fortnightly since 1996, most recently “Energy Subsidy Myths and Realities,” June 2012.

The electricity price increases from the proposed EPA Utility MACT will act as a regressive tax on the elderly.

What Price, GHGs?

Renewable portfolio standards and other green energy rules put a price on environmental benefits. Calculating this price can help clarify the social value of GHG reductions.

Image: 
Figure 1 - Implied CO2 Externality Values of Carbon Reduction Policies
Figure 2 - Ranges of Implied CO2 Externality Values
Category: 
Business & Money
Author Bio: 

Philip Q Hanser is a principal with The Brattle Group, and Mariko Geronimo is an associate with the firm. The views in this article are theirs and not those of The Brattle Group or its clients.

Calculating the implied value of CO2 abatement in green energy policies.

Rate Design by Objective

Changes in regulatory requirements, market structures, and operational technologies have introduced complexities that traditional ratemaking approaches can’t address. Poorly designed rates lead to cross-subsidies, inequitable outcomes, and perverse incentives. An objective-based approach can better communicate costs to customers in a way that better serves operations and policy goals.

Image: 
Author Bio: 

Philip Q Hanser is a principal with The Brattle Group. He acknowledges the contributions of Brattle colleagues Ryan Hledik and Ahmad Faruqui, as well as Ken Costello of the National Regulatory Research Institute. He also acknowledges editorial assistance from Heidi Bishop and Shannon Wentworth at Brattle. The opinions expressed in this article are Hanser’s and don’t represent those of The Brattle Group or its clients.

A purposeful approach to setting energy prices.

Pre-Funding to Mitigate Rate Shock

As the industry resumes major capital-spending programs, utilities and their stakeholders are rightly concerned about the effects on prices. Traditional regulatory approaches expose utilities to risks and costs, and can bring rate shock when capital spending finally makes its way into customers’ bills. Pre-funding investments can provide a smoother on-ramp to bearing the costs of a 21st-Century utility system — but it also raises questions for utilities to address.

Image: 
Author Bio: 

Sherman Elliott is an independent consultant and formerly was a commissioner on the Illinois Commerce Commission. Ralph Zarumba is a director in Navigant’s energy practice.

Re-starting the Big Build calls for revisiting cost-recovery mechanisms.