COVID-19 Is Straining Compact Between Utilities, Regulators
Energy Partners Dane McKaughan and Todd Kimbrough co-authored a Law360 article about the impact COVID-19 has had on rate-regulated electric utilities in the U.S. These impacts are twofold: increased costs and lost revenues. Utilities' costs have increased due to increased reliance on overtime and increased sick leave during the pandemic, as well as additional safety-related costs. Utilities have also lost returns both due to regulators' prohibitions on disconnecting for failure to pay bills and from the seismic reduction to electricity usage that has occurred since the initial stay-at-home orders. Mr. McKaughan and Mr. Kimbrough discuss the efforts by utilities to recover these additional costs and lost revenues, and outline what we can learn from Indiana's recent consideration of the issues.