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Ratemaking and Rate Structure: New Paradigms Part Two – Flat Declining Demand

In Part One, we looked at the increasing requirements on utilities by policymakers (legislatures and regulatory bodies) to spend more money to implement “grid modernization.” Here, we look at the second piece of that puzzle – the challenge that utilities have in doing so, while often facing flat, or even declining, revenue, as a result of reduced demand for utility-generated power by customers.

 

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