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Utility ratemaking is the formal regulatory process in the United States by which public utilities set the prices (more commonly known as "rates") they will charge consumers. [1] Ratemaking, typically carried out through "rate cases" before a public utilities commission , serves as one of the primary instruments of government regulation of ...
In 1913, the Corporation Commission was given responsibility for regulating water and hydroelectric utilities. In 1920 the commission was replaced by a single Utilities Commissioner and some part-time staff. [1] In 1941, the General Assembly created the North Carolina Utilities Commission, composed of three commissioners serving six-year terms.
In Canada, a public utilities commission (PUC) is a public utility regulator, typically a semi-independent quasi-judicial tribunal, owned and operated within a municipal or local government system under the oversight of one or more elected commissioners. [1] Its role is analogous to a municipal utility district or public utility district in the US.
A utility's capital structure may have a significant debt component, which exposes the company to interest rate risk. [11] Should rates rise, the company must offer higher yields to attract bond investors, driving up the utility's interest expenses. If the company's debt load and interest expense becomes too large, its credit rating will ...
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Rate-of-return Regulation is a system for setting the prices charged by government-regulated monopolies, such as utility companies. There are several advantages to using rate-of-return regulation. The first is that it is sustainable if there is no competition because prices can be adjusted to the company’s changing conditions.
“An example of this would be to use electricity only at certain times of the day where the rate per kilowatt hour is the lowest; the same could apply to other utilities if there are more ...
Utility bills cover essential household services such as electricity, sewer, water, trash pickup, phone, internet and gas. The bills can add up -- a GOBankingRates study found that 30% of Americans...