The APPA recently published a piece by Susan Partain that does a fantastic job of describing the complexity of rate change, especially in today’s world. The author quotes Mark Beauchamp regarding how rate setting has changed and the consequences of not setting appropriate rates for customers. Read the full article on the APPA website.
Setting electricity rates is an increasingly complex exercise. For public power utilities, the process is a careful balance in ensuring adequate cost recovery, fair cost allocation between customer classes, affordability, local business growth, and support of community objectives.
“For the past 100 years, we never really had the metering technology to charge customers appropriately,” said Mark Beauchamp, president of Utility Financial Solutions, a consulting group. “What we did was pull together customers with common usage patterns into classes.”
Read more about what UFS President Mark Beauchamp had to say in the APPA’s story.
