Published • loading... • Updated
Report: Lower utility returns could raise long-term costs
The firm says a 1-point cut would trim a typical residential bill by 0.7% while risking higher borrowing costs and weaker grid investment.
- Concentric Energy Advisors published a report last week indicating that lowering allowed utility returns provides only limited relief for residential electricity bills.
- New York and Pennsylvania lawmakers proposed legislation linking utility profit rates to 10-year Treasury yields, including House Bill 2224 and Senate Bill 10424.
- Concentric found that cutting allowed returns by one percentage point lowers a typical residential bill by 0.7%, while a three-point reduction saves $1.05 to $3.30 on a $150 bill.
- Higher borrowing costs could cancel out savings for customers, Vice President Joshua Nowak warned, citing Arizona regulators' 2021 experience where Fitch and Moody downgraded Arizona Public Service.
- Lawmakers could achieve greater savings by addressing wholesale electricity prices and government regulations rather than targeting utility profit rates, according to Concentric.
Insights by Ground AI
31 Articles
31 Articles
Report: Lower utility returns could raise long-term costs - Regional Media News
(The Center Square) - Lowering utilities' allowed returns on investment could mean small bill cuts while raising long-term costs, Concentric Energy Advisors says. The consulting firm published its report last week. Concentric studied 13 electric utilities in the PJM region, which covers parts of the [...]
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D24&w=64&q=75){kind=small}
Coverage Details
Total News Sources31
Leaning Left5Leaning Right10Center15Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
