The Electricity Division

The Electricity Division conducts economic, financial, and policy analyses relevant to the regulation of electric utilities, electricity retail markets, low-income concerns, and other related issues.

The Division prepares the results of these analyses in written testimony, recommendations to the Commission, and various reports.  Most of the work is focused on regulation, policy, and market activities related to the provision of retail electricity.

This work includes:

  • Retail competition policy and implementation related to restructuring in the electric utility industry
  • Rate of return on equity and capital structure
  • Pricing structure and design
  • Load forecasting
  • Low-income customer policy and statistical analysis
  • Renewable/Distributed Generation/Net Metering
  • Consumer protection regulations
  • Consumer education
  • Codes of conduct
  • Mergers
  • Jurisdictional and customer class cost-of-service determinations

The Division’s analyses and recommendations may be used as expert testimony in formal proceedings, as special topical studies requested by the Commission, for leadership of or participation in work groups established by the Commission, or in formal comments on other filings made with the Commission.

The Division’s primary duty is researching and analyzing rate proceedings that are before the Commission.

This analysis includes:

  • Rate Design  — The setting of electricity prices to recover the cost of providing service to a specific class of customers.
  • Cost of Service Studies  —  The  classification of utility operating costs and plant investments and the allocation of those costs to the customer classes that cause them.
  • Cost of Capital  — The financial analysis that determines the appropriate return to allow on a utility’s plant investment, given the returns observed from the utility industry regionally and nationally.