Prudency of decision-making must be proven in rate cases

Journal Article · Mon Jul 01 04:00:00 EDT 1985 · Electr. Light Power; (United States)

OSTI ID:5499115

Manzi, J E

Concerned with the rising costs of generating, especially nuclear, facilities, intervenors and public utility commission staff increasingly focus on management imprudence despite the fact that contributing factors are frequently uncontrollable. Commissions questioning the rationality and reasonableness of management decisions are denying the incorporation of construction and repair costs into the rate base. This combined with the political aspects of rate shock make it vital that utilities begin rate case preparation as early as possible. The author outlines two elements for preparation: establishing the prudency of management decision-making and ensuring that other participants cannot criticize the utility sponsor's preparation of the case. He outlines three trends that have emerged from recent proceedings and suggests questions to include in the preparation process. 6 figures.

• OSTI ID: 5499115
• Journal Information: Electr. Light Power; (United States), Journal Name: Electr. Light Power; (United States) Vol. 63:7; ISSN ELLPA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
DECISION MAKING
ELECTRIC UTILITIES
INTERVENORS
MANAGEMENT
PLANNING
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS