Formula-Based Rates

A Formula-Based Rate (FBR) plan, which periodically adjusts rates based on a predetermined formula, defines a clear and balanced path to safety, reliability, and high service quality, as well as a strong balance sheet and reasonable rates.

The main benefits of employing an FBR include:

• Timely tracking of revenues and expenses/reduced regulatory lag
• Less burden on internal staff compared to preparing a comprehensive and contentious rate application
• Lower internal, consultant, and/or regulatory staff labor costs
• Targeted tracking of cost recovery

Our team prepares, evaluates, and files a variety of FBR mechanisms for utilities and commissions in the US, including DSC/TIER ratemaking, transmission formula rates, property tax surcharges, and fuel and purchase power cost adjustments.

For more information, visit links below:

The Utility Edge Newsletter Article on the FBR

The Utility Edge Newsletter Article on the DSC-FBR approved in KS

Testimony filed in KS/IL/WI State Commissions (Macke, Larson)