Members of the General Assembly heard from consultants this week about the potential benefits of setting utility rates over multiple years – rather than approving them annually.

Additional considerations include establishing performance incentives for utilities to accomplish certain goals, such as reliability.

Nicholas Crowley, the vice president of consulting firm Christensen Associates, said he and his colleagues specialized in performance-based rate making and analyzing regulations across North America. Indiana’s current investor-owned utility climate follows a “cost of service” regulation model, Crowley said, meaning that utilities file their total service costs annually and submit that information to commissioners alongside rate requests. The Indiana Utility Regulatory Commission

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