Utilities file highest number of rate cases since 1983, EIA says
In 2018, 89 utilities — almost half of all major U.S. electric utilities — filed rate cases with state regulatory commissions, the highest number since 1983, according to the U.S. Energy Information Administration (EIA).
Of the 89 utilities, 78 proposed rate increases, 10 proposed to decrease rates, and one negotiated a rate freeze until 2020.
EIA noted that changes in the costs of generating and delivering electricity typically drives the number of electric utility rate cases but that, in 2018, increases in spending for electricity transmission and delivery were the cause of most of the approved rate increases.
Utilities’ delivery expenses in 2018 included investments to modernize and strengthen the electric grid, connect to wind and solar installations, restore storm damage, manage vegetation and install new customer information and billing systems, EIA noted.
In some areas, EIA said, increases in electric generation costs also led to rate increases. New or increasing environmental compliance costs, rising costs for operating and maintaining nuclear plants and extra wind generation expenditures as production tax credits phase out contributed to the higher spending.
Traditionally, regulators have approved lower rate increases than what utilities have requested. In 2018, the aggregated value of utility-rate increase requests was $6.8 billion, and regulators approved a total increase of $2.8 billion.
