10 Retroactive Ratemaking: The Prohibition and the Exceptions

• Author: Scott Hempling
• Pages: 325-337

10.A. Three bases

10.A.1. Statutory basis

10.A.2. Constitutional basis

10.A.3. Policy basis

10.B. Four illustrations

10.B.1. Tax payments lower than estimates

10.B.2. Tax depreciation differences

10.B.3. “Direct billing” of gas production costs

10.B.4. Someone else’s cost

10.C. Seven exceptions

10.C.1. Regulatory “notice”

10.C.2. Utility “deferral” of expenses

10.C.3. Afliate transactions

10.C.4. Hard-to-predict costs

10.C.5. Commission self-correction

10.C.6. Judicial reversal of commission rate decisions

10.C.7. Disgorgement of illegal gains

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Retroactive Ratemaking

The Prohibition and the Exceptions

CHAPTER TEN

ENV Hempling Pub Util Final.indd 325 8/7/13 4:37 PM