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.