State Regulatory Initiatives and Strategy
Deregulation and the development of regional power markets have fundamentally altered the dynamics of state regulation, often shifting the scope of utility responsibilities while also introducing new stakeholders.
Vertically-integrated utilities in regions that have not adopted significant deregulation face a variety of issues regarding state regulatory initiatives:
- Supply procurement and incentive regulation
- Fuel rate stability and hedging plans
- Economic growth and rate redesign
- Industrial-only competition proposals and implementation
Similarly, utilities in “deregulated” markets also face important issues in the state regulatory arena:
- POLR program design – supply procurement, rate design and risk management
- Renewable portfolio and environmental objectives
NorthBridge has found that successful regulatory strategy begins
with an understanding of the
perspectives of regulators and
other stakeholders, and the general
business and regulatory climate.
Value can be created for shareholders
when utility initiatives also
support the policy objectives
of state regulators. We have
a great deal of experience in identifying and
assessing innovative opportunities
that ensure cost recovery and
profitability, align economic
incentives, address regulatory
and stakeholder interests, and allow parties to collaborate.
|