PowerSuite Perspectives

Why Do Public Utility Commission (PUCs) Matter?

October 1, 2019 at 3:51 PM / by Eric Fitz posted in Regulatory, Insights and Analysis, Policy Discovery

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As AEE has previously discussed in detail that "Public Utility Commissions (PUCs) or their equivalent in each state serve as a replacement for the competitive market. In exchange for granting the exclusive right to sell electricity in a given service territory, PUCs determine how much the utility is allowed to invest and in what, how much it can charge, and what its profit margin can be. This is called the “regulatory compact,” and it was first laid out in the Binghamton Bridge Supreme Court case of 1865." This framework is mostly played out via recurring utility rate cases.

Not only do PUCs determine a utility’s total revenue requirement rate cases, the commissions oversee other major regulatory changes that impact over $100 billion in energy investments each year. Major policies like renewable energy portfolio standards (or now frequently called clean energy standards), energy efficiency resource standards, integrated resource plans, grid modernization, energy storage, electric vehicle, net metering and more have a massive impact on market opportunities and risks across the country.

In 2018 alone, our Trending feature helped our users identify over 50 major "Watch List" topics 

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