The document discusses utility rate basics, including the revenue requirement formula, rate case process, and a case study of a rate increase request by United Water Pennsylvania. It provides the revenue requirement formula, which calculates the total revenue needed as expenses plus a return on the utility's rate base assets. It also outlines the typical rate case process and key steps. Finally, it summarizes a specific rate increase request by UWPA, including the amount requested, reasons for the increase, outcomes of complaints and negotiations, and estimated customer impact.

1. Fun with Public Utility Rates The Exciting World of Revenue Requirement Rate Structure and Rate Design

8. Plant Additions

10. Results 25% 32% % Increase $5.9 million $7.5 million Revenues Settlement UWPA Request

11. Result – 78% of Request

13. Questions?