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Is a Rate Study Worth the Money?IS A RATE STUDY WORTH THE MONEY?

Throughout history there have been many parables and stories that discuss the issues that arise when proper investments are not made to protect assets and infrastructure. In this issue of TransActions, we are going to discuss how conducting a water rate study can provide value to the utility system. Here is an example to consider: A water utility system has kept its rates low, with no increases over the last 10 years, but inflationary pressure and increased maintenance costs have reduced cash reserves to the bare minimum and the system is barely “breaking even”. For various reasons, large capital
expenditures will soon be needed to ensure a safe and reliable supply of water for the system’s customers and that will require a significant annual revenue increase. Additionally, the utility manager understands that hiring a qualified consultant to perform a water rate study will require a significant amount of the remaining cash reserves. The utility manager knows that water rates will already be increasing as a result of the capital expenditures. So, is spending the additional money for a water rate study justified? READ FULL ARTICLE HERE


KEY TAKEAWAYS from FERC’s Final Rule on the Treatment of TCJA Effects in the Development of Transmission RatesKey Takeaways from FERC's Final rule

On November 21, 2019, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued Order 864, a final rule that addresses the impact of the Tax Cuts and Jobs Act of 2017 (“TCJA”) on accumulated deferred income taxes (ADIT) recovered under wholesale transmission rates (the “Final Rule”). In the Final Rule, the Commission imposed several new requirements for transmission formula rates, avoided making any generic rule(s) applicable to transmission stated rates, and generally guaranteed that treatment of excess and deficient ADIT will be an important consideration in transmission rate filings in 2020 and beyond.  READ FULL ARTICLE HERE


UPCOMING CONFERENCES

February 17-20, 2020 

AESP 30th Annual Conference & Expo – Anaheim, CA

March 1-4, 2020 

NRECA Annual Meeting & Expo –             New Orleans, LA

April 7-9, 2020   

NWPPA E&O Conference & Tradeshow – Kennewick, WA

UPCOMING WEBINARS

March 10, 2020  Separable Connectors in Underground Systems

April 14, 2020  Designing Roadway Illumination

May 12, 2020   Designing Poles Near Airports

View the full schedule and register for a Hi-Line Engineering Webinar:  2020 Webinar Schedule