High-Energy Phenomena in Electric Discharges in Dence Gases by Babich

By Babich

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Ratemaking is done by examining the costs utilities incur to provide services to customers. The target revenue for the utility is set so that these costs can be recovered with a fair profit left over for owners. Rates are then designed so that the utility can achieve the target revenue. Most utility retail rates are based primarily on the amount of retail consumption. Power bills charge for electric power that is used. Natural gas bills charge for gas that is used. Water bills charge for water that is used.

If there are two effective ways to address a problem, the minimum revenue requirement obliges the utility to choose the one with lower cost. Expensive investments can be made today, but only if they are cost effective in the long run compared to alternatives. Customer Service. From a customer perspective, there is much more to a utility than the service they supply. Customers interact with the utilities in a variety of ways and, like dealing with other businesses, expect a certain level of professionalism and a minimum amount of unnecessary frustration.

Although each of the fifty states has its own regulatory body, regulatory commissioners talk to one another. Communication happens through a variety of venues, but primarily through the National Association of Regulatory Commissioners (NARUC). NARUC allows commissioners in all states to address emerging issues, trends, successes, and failures. NARUC also presents the interests of state governments to federal utility regulators. The activities of NARUC lead to regulatory trends when states address similar regulatory issues and choose to adopt similar regulatory approaches.

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