Energy Law Journal Publishes Article by Adrienne Thompson

The Energy Law Journal has recently published an article by Adrienne Thompson on low-income ratepayer protection issues. The article will be in print soon and is available electronically here.

From distributed energy resources to smart meters, we are witnessing one of the most significant economic and physical transitions in the history of our electricity sector. As utilities, regulators, and stakeholders grapple with transforming our aging grid, one under-examined issue is how these changes will impact low-income ratepayers. Specifically: as reformers begin to align utility pricing structures with true system costs, what will happen to the rate-based subsidies helping to provide electricity to these financially vulnerable consumers? With millions of Americans otherwise unable to afford utility service, the answer to that question has real-world implications. This article analyzes the intersection of grid modernization efforts and low-income ratepayer assistance programs. It discusses the unique problems facing low-income customers, and explores norms like “universal service” that underpin utility regulation in general, and ratepayer assistance in particular. Ultimately, this article proposes policy solutions to facilitate the goals of both grid modernization and low-income ratepayer assistance. Only by tackling this issue head-on can policymakers ensure that tomorrow’s energy future will look bright for all ratepayers—regardless of their income.

Advertisements

FERC Upholds Denial of Full Retroactive Abandonment Costs for SDG&E

On October 26, FERC denied a rehearing request from San Diego Gas & Electric Company (“SDG&E”) following a March 2, 2016 order allowing only a 50 percent cost recovery in the event that a certain construction project is abandoned or canceled.  As the Commission reiterated, utilities are generally allowed 100 percent cost recovery only after a determination of eligibility for “Abandonment Incentives,” whereas only 50 percent cost recovery is typically allowed before such determination.  Thus, the Commission noted, “it would be reasonable to infer” the requirement for utilities to request eligibility for “Abandonment Incentives” before significant expenditures are incurred. Continue reading