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Rates & Forecasting
WPPI Energy assists members with the development of innovative, competitive retail rate designs and filings. Driven by the need to keep rates competitive, WPPI Energy assesses the rate impact of distribution projects, generates customer rate comparisons and develops rate applications and cost-of-service studies.
WPPI Energy works with members to help evaluate the potential financial impact that a capital improvement might have on the rate of return and retail rates over the next five or more years. To accomplish this, WPPI Energy develops a financial planning model based on cost trends and the construction alternatives to assess the impacts on the utility’s income statement and to determine when a rate case may be needed to cover costs associated with the improvements.
Benchmarking studies provide members with insight into key indicators by which utility performance can be measured. Using financial data from member annual reports to the Public Service Commission, WPPI Energy develops reports comprised of a series of financial ratios that can be used to measure the performance of the member against other utilities.
In preparing for the future, WPPI Energy develops 20-year monthly and annual forecasts for each member using econometric models. The individual member forecasts are then compiled into a WPPI Energy system forecast which is used to support the internal planning process. The individual member forecasts are also used to prepare fixed-year projections of purchased power costs and sales revenue by retail rate class for each member. Members are able to incorporate these revenue and power cost projections into their annual budgets.
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