Making Sense of Multi-Year Rate Plan Options

Categories: Rate Design

October 7, 2024 - Nicholas Crowley and Dan McLeod

Electric and gas utilities have increasingly adopted multi-year rate plans as a way to address rising costs and streamline the regulatory process. These plans offer potential benefits such as improved cost efficiency, reduced regulatory uncertainty, and greater investment incentives. However, they may also present challenges. In this technical brief, CA Energy Consulting colleagues Nick Crowley and Dr. Daniel McLeod summarize the various forms of multi-year rate plans currently in place in North America, exploring both their advantages and drawbacks.