A Timeline of Price Regulation 60 Rate of Return Rate of Return - PowerPoint PPT Presentation

A Timeline of Price Regulation 60 Rate of Return Rate of Return 50 Earnings Sharing umber of states Price Caps 40 30 20 20 Nu 10 0 Year J. Parman (College of William & Mary) Regulation of Markets, Spring 2017 February 20 and 22, 2017 1 / 50

Example of a Rate Case May 16, 2011 - Avista files revised tariff sheets June 1, 2011 - Avista requests an electric rate increase of $38.3 million (8.7%) and a gas rate increase of $6.2 million (4.0%) June 20, 2011 - Washington Utilities and Transportation Commission schedules prehearing conference November 8, 2011 - Commission begins to public comments hearings December 16, 2011 - commission rejects revised tariff sheets, adopts settlement allowing electric rate increase of $20 million (4.6%) and gas rate increase of $3.75 million (2.4%) February 29, 2012 - data on compensation packages of Avista executives filed J. Parman (College of William & Mary) Regulation of Markets, Spring 2017 February 20 and 22, 2017 2 / 50

MINI ~M M Example of a Rate Case MORGAN COUNTY RURAL ELECTRIC ASSOCIATION Fourteenth Revised Sheet NO . 1 Cancels ThIrteenth Revised Sheet No 1 RESIDENTIAL SALES Company RESIDENTIAL RATE Rate Code APPLICABILITY: Applicable to domestic consumers for a ll uses in the hom e subject to the established rul es of the Association. Approval must be obta in ed f rom th is Associa ti on prior to the in stallallon of a molor having a rating oilen horsepo we r (10 hpJ or more. 01 , 03 ,60 RATE AVAILABILITY: Available throughout the serv ice a re a of the Association. TYPE QF SERVIQE: Single or three- phase , 60 He rtz , at voltages acceptable to t he AS S OCiation . Se rvice under this schedule is hmited to consumers whose load requirements do nol exceed fifty (50) kVa of transformer capaci ty . BASE CHARGES;, per month Faci li tie s Charge $16.85 . Regulatory Compliance $4 . 45 Ene rgy Efficiency $1. 20 ENERC;;Y QHARGES. per kW h r&D MCREA kWh Rate $0.032694 Purchased Power kWh Rate $0.073894 QHARGE: The minimum per meter per mon th shall be the base charges 01 $22.50 where fifteen (15) kVa or le ss 01 tran sfo rmer capacity is required. Each co ns umer who reqUires more than fifteen (15) kVa of transformer ca pacity will pay , in addition 10 the above minimum , one doU ar ($1 .00) per m ont h for ea ch addiiional kVa, or Iraclion thereof, required. TERMS OF PAYMENT: The above rates are net, due and payable within fifteen (15) days fr om the da le of the bill. If not paid on or before this date, service will be disco ntinu ed after due nolice. . - - A discount of three percent (3%) will app ly when the 1 0lal estimated annual bill is paid in - advance pnor to January 20 of each year. 12/0 1110 ISSUE DATE J. Parman (College of William & Mary) Regulation of Markets, Spring 2017 February 20 and 22, 2017 3 / 50 01101/11 EFFECTIVE DATE