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Retail Electricity Rates and Utility Return on Equity Examined

Original: Retail Electricity Rates and Utility Return on Equity: State Primacy and Federal Influence

A new Congressional Research Service report examines how retail electricity rates are set, focusing on utility return on equity and the balance between state authority over rate regulation and federal influence on electricity markets. The report provides lawmakers with an overview of how state public utility commissions approve utility profits while federal bodies such as FERC shape the broader market conditions affecting costs.

Why now: Rising electricity prices are drawing attention to how utility profits and rates are regulated.

Congressional Research ServiceFERCstate public utility commissions

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