FERC’s treatment of rate of return for pipelines and electric transmission lines has been in the news recently. This reminded me of the plight of the very high-visibility and controversial rate-of-return and cost-of-capital witness.
This poor expert has the dubious distinction of presenting testimony on a subject in which everyone, in my decades of experience in public utility rate cases, has an opinion.
I am not kidding as I mean everyone.
Excerpt from October’s Public Utilities Fortnightly, page 80
On October 6, 1846, one of our industry’s greatest founders, George Westinghouse, was born in Central Bridge, New York. Just twenty-four miles from Schenectady, New York, which ultimately and ironically became the headquarters of Westinghouse’s chief rival, the Edison General Electric Company.
Key reason: in just four other months in history have households consumed more than in this July.
On Friday, the Commerce Department released its data on consumer expenditures in August. Electric bills were 1.5 percent of expenditures.
That’s a low percentage. But slightly higher than in recent Augusts.
Electric bills were 1.44 percent of consumer expenditures in the last two Augusts, in 2015 and 2014. This August was six-hundredths of a percent higher.
A slightly higher percentage is not surprising. Electricity consumption was way up this summer.
In July, residential electricity prices were down 2.4% from last July, and down 3.1% from two Julys ago.
From PUF in early 1929
It was Westinghouse that shortened the typical American work week from six days to five and a half.
PSEG, NextEra, Wisconsin Energy, OGE Energy, Pinnacle West, IDACORP, etc.
Should FERC rewrite rules or let states make reforms?
Maybe Steve Huntoon Was Right
Three Initiatives That Fit and Complement