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Ratemaking Approaches for a Slow-growth Environment (white paper)

The traditional electric utility business model successfully served customers, regulators and shareholders for well over 100 years. The model was simple. An increase in sales corresponded to customer growth and an upward trend in use per customer. Utilities responded by investing in more utility plant and supporting infrastructure, then filed rate cases on the new level of rate base. Revised rates provided new revenue and cash flow, which helped earnings grow. As long as sales continued to grow, the business model worked beautifully. Yes, as long as sales continued to grow …

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