Stay-Out Adjustments and Multi-Year Regulatory Rate Plans
2019
Abstract Multi-year regulatory rate plans are becoming more common. An agreement to “stay out” of the rate revision process removes an option for the utility company or regulatory commission to request a modification to tariff rates in response to changes in interest rates. We develop an
objective approachto adjust the utility’s required
returnon
equityto account for these lost options.
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Correction
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