Viewing a single comment thread. View all comments

MikeTheActuary t1_iwubo8y wrote

Reply to comment by mischavus618 in Dang, these bastards are relentless. by TheDogsNameWasFrank

PURA frequently approves only a portion of Eversources' and UI's requested rate increases.

Presumably Eversource and UI are asking for huge increases, hoping PURA's enforced compromise will provide what they actually need.

1

TheDogsNameWasFrank OP t1_iwv06do wrote

Likely. But if true PURA should see through that

1

MikeTheActuary t1_iwv108g wrote

It's a near-universal fact of life in price-regulated enterprises: When you need a significant price increase, the regulator will likely resist. So you ask for the biggest increase you can justify, in the hopes that the approved increase is close to your real need.

The regulators know about the practice. If they're good, they know the right questions to establish the real need.

(Source: Spent many years seeking regulatory approval of insurance rates.)

2