Utility Industry Focus: Determining pension and retiree medical benefit costs to include in rates

The process for determining what pension and post-retirement benefit costs are included in gas and electric utility rates varies widely from one place to another. Besides differences in the regulatory bodies overseeing the process, each jurisdiction may have its own rules for accounting, allocating, tracking and calculating plan expenses. This article discusses some of the methods used to determine the plan costs included in rates. Though no approach is right or wrong for all situations, this report identifies best practices to consider in weighing the interests of a utility and its customers.  (Perspective, 6 Mar 2008, 1 page)

• Full report (PDF)

---