The Mechanics of Investor-Owned Utility Rate Cases with Gary VerDouw

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Gary VerDouw, a former American Water employee and now an independent rate and regulatory consultant, discusses the often misunderstood process of setting rates for investor-owned water utilities. Gary has tremendous experience having worked on investor-owned water utilities in multiple jurisdictions and having testified on rate cases before no less than seven public utility commissions. Gary does a tremendous job filling you in on the how, what, why and where of investor-owned water utility rates.

In this session, you’ll learn about:

  • How investor-owned utilities set rates differently than municipal utilities
  • What are the four numbers required to set investor-owned utility rates
  • Where the real fight usually is in investor-owned utility rate cases
  • How an investor-owned utility’s rate base is determined
  • How cost of common equity is determined
  • How the weighted cost of capital is determined
  • What is an investor-owned utility’s net operating income
  • How net operating income is calculated
  • What single tariff pricing is and why it’s beneficial

Resources and links mentioned in or relevant to this session include:

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