Lawyers, consultants and business leaders working in the rates and regulatory area will find the recently released Pennsylvania Public Utility Commission’s (PaPUC or Commission) Guide to Utility Ratemaking helpful, even if you don’t practice in Pennsylvania.
The original Rate Case Handbook was first published in 1983. The handbook served as a valuable resource for energy and utility practitioners. Just as before, the updated guidebook is well laid out and manages to make complex information easy to digest.
In the new edition, readers are given both a general overview of how each utility (water, gas, telecom and electric) service is produced, priced and delivered, as well as a thorough synopsis of the legal and administrative structure of the PaPUC. The 181 page handbook is comprehensive and provides information on the following:
- An Introduction to Public Utilities
- Basic Rate Case Procedures, including:
- Customer Complaints
- Burdens of Proof
- Admin Law Judge Hearings
- Post-Final Order Procedures
- Utility Capitalization
- Rate Structure and Design
While many of the foundational principles outlined in the original handbook have retained their applicability, technological advancements and discoveries from Marcellus Shale to smart meters and distributed generation commanded special attention in the new update. A big thank you to authors James H. Cawley, former PaPUC Commissioner, and Commissioner Norman Kennard, as well as to those who aided in the completion of the project. It provides a relevant discussion on modern ratemaking issues.