How Price Changes are Approved

As a regulated utility, we can recover costs in two ways

1. Rate reviews (or rate cases), while more expensive than recovering costs through riders, are appropriate when overall costs are increasing or when cost increases are related to a large investment not covered by riders.
2. Riders (or bill adjustments) for transmission projects, environmental upgrades, or renewable resource additions benefit customers by reducing the overall cost of financing a project. That’s because riders allow for more timely cost recovery than rate cases. They also are trued up annually, which means no cost over-recovery or under-recovery.

All methods of cost recovery require regulatory approval and include opportunities for public input.