A Continuum of Formula Rates
Rich Sedano discussed the elements of formula rates in a presentation to the National Association of Regulatory Utility Commissioners’ Staff Subcommittee Meeting on Accounting and Finance. In outlining considerations for regulators, he provides background on the formula rates in place in Alabama, Louisiana, Mississippi, and Illinois, and also relates formula rates to other mechanisms that lead to changes in rates between rate cases, specifically decoupling and trackers.