The term ratemaking authority refers to the legal power granted to a regulatory body to establish, change, approve, or reject rates charged by utilities, particularly in the context of natural gas services. This authority ensures that rates are fair and just for consumers while allowing utilities to cover their operational costs and earn a reasonable return on investment.
Ratemaking authority is primarily used in the utility sector, particularly for natural gas and electricity providers. Regulatory bodies, such as state public utility commissions, exercise this authority to oversee the rates charged to consumers. This term is relevant in administrative law and regulatory compliance, where utilities must adhere to established rate structures. Users may find forms related to rate applications or objections through platforms like US Legal Forms, which provide templates for managing these processes.
Here are a couple of examples of abatement:
For instance, a state public utility commission may review a natural gas utility's proposal to increase rates due to rising operational costs. After a thorough examination, the commission may approve a modified rate that balances the utility's need for revenue with consumer protection. (hypothetical example)
Ratemaking authority is defined under federal and state laws, including:
| State | Ratemaking Authority Overview |
|---|---|
| California | Strong regulatory oversight with a focus on consumer protection and environmental considerations. |
| Texas | More deregulated market, allowing for competitive pricing among utility providers. |
| New York | Emphasizes renewable energy integration and consumer advocacy in rate-setting. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Description |
|---|---|
| Rate | The specific price charged for utility services, determined by the ratemaking authority. |
| Utility regulation | The broader framework governing how utilities operate, including rate-setting and service standards. |
| Cost of service | The total expenses incurred by a utility to provide services, which influences rate determinations. |
If you are a consumer facing a rate increase from your utility provider, consider the following steps:
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It is the legal power to set and approve rates charged by utility providers.