A standardized cost recovery approach for utilities impacted by COVID-19

A standardized cost recovery approach for utilities impacted by COVID-19

The degree to which an investor-owned electric utility is financially impacted by COVID-19 will depend on its location, customer composition, regulatory construct, organizational structure, and, perhaps most importantly, the utility’s response to the pandemic. We have been closely following and engaged with utilities in numerous states on their response and one thing is clear: there is a need for standardization in how utilities identify, measure, and track costs. Our concern is that if a clear and reasonable approach is not solidified today, utilities will be at significant cost-recovery risk tomorrow.

In this white paper, Jim McMahon and Ned Hall describe what actions we believe utilities should start taking now to ensure that costs are clearly identified, accurately measured, and communicated to stakeholders.

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