Published on June 7, 2013
The Role of Utility Regulationin USAOriginal can be found on http://www.muninsight.com/role-utility-regulation-usa
Who we are• We are an independentadvisory firm based inBoston, Massachusetts, USA• We are deeply connected inthe energy markets• We take part in the daily lifeof energy markets and in theagenda setting discussions• The Role of UtilityRegulation in the US
The Role of Utility Regulationin USATalk prepared for session in January 2013 atDanmarks Tekniske Universitet, under theauspices of Danish American Business Forum
Overview of Utilities• 194 independently owned utilities serving68% of customers• over 2,000 munis and Public Utility Districtsserving 14% of customers• 900 co-ops serving 12%• federal power agencies (esp. federal dams)
Geography of the Grid• Eastern Interconnect (everything east ofRockies• except for Texas• Western Interconnect (everything West ofRockies)• interstate transmission regulated by FERC• regional Independent Service Operators(e.g. ISO-NE), corresponds to Nordpool• distribution regulated by states, beginningin 1907
State Regulation Process• Rate cases: establish the rates (prices)utilities can charge their customers• Process:– initial filing– preliminary procedures– hearings– draft decision– final decision– review of decisions
Participants in State Regulation• Public Utility Commissions (quasi-judge)– Mostly 3 commissioners (politically appointed)• utility representative• ratepayer representative (often Attorney GeneralsOffice)• large consumer representative• sometimes other stakeholders, such as environmentalgroups• Attorneys often move across during theircareers• Friendliness/hostility of proceedings differsfrom state to state
Regulation in flux• Example: MA currently conductingInvestigation Into the Modernization of theElectric Grid• States probe new legislation, keeping aneye on other states (just as DK and S copylegislation from each other)
Future• Growth from $26.7 billion by 2017 with aCAGR of 13%• Events (e.g. blackouts) --> reliabilitytrumping price• Regulatory changes --> more ratepayerfunding (AG office: "stemming the flood")• But:– regulatory changes slow– major cyber security issues
Grow Your Business in the USA
Public Utility Regulatory Policies Act; Long title: An Act to suspend until the close of June 30, ... Federal Regulation and Development of Power, ...
NARUC is the national association representing the State Public Service Commissioners who regulate essential utility ... utility commissions ... Regulation ...
Its role is analogous to a municipal utility ... New Jersey Board of Public Utilities; New Mexico Public Regulation ... South Dakota Public Utilities ...
Electric Utilities, Deregulation and Restructuring of U.S. ... Since state regulation was not sufficient ... began to take a much more active role in utility
Electricity and Its Regulation. ... to revert to their former monopoly roles, ... and Regulation of Network Utilities. Cambridge: MIT Press ...
Utility Regulation Author: ... role of the state in regulating public utilities were ... Regime Change and Corruption: A History of Public Utility ...
1997 IEEE-USA Technology ... Potential Roles for the Federal Government in a ... have historically included environmental issues in utility regulations.
of the UK Electricity Industry, ... heart of utility regulation, ... role of the Competition Commission in the electricity sector is two fold ...
... deregulation” and ineffective regulation and oversight. ... utility commissions perform a similar role, ... Utility financial records must be ...
Roles of Regulators ... (USA), focusing on deploying the next generation of energy planning, ... tantamount to the “utility death