How Price Changes are Approved
As a regulated utility, we can recover costs in two ways
- 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.
- 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.