As Utilities Exceed Historic Levels of Capital Investment, Financial Leaders Look for Ways to Optimize Budgets, Mitigate Financial Risk
ATLANTA – (July 16, 2019) – With capital spending and regulatory scrutiny above average for the utility industry, the office of the CFO must optimize spend and profitability now more than ever. Many regulated utilities have turned to automated solutions to justify their investment plans and align their future rate case strategies with their long-term capital plans.
According to recent research from Moody’s Investors Service, capital spending by utilities will remain robust.1 As utilities invest more in their aging infrastructure, they must keep their rates in line with costs for their annual rate case filing. However, with high levels of scrutiny from regulators, it’s crucial that their asset investment plans are well documented and justified.
“Regulated utilities are increasingly expected to have a unified strategy between capital planning and rate cases in order to balance their spend requirements and costs to their customers.” said Rick Fisher, Director of Utility Strategy at PowerPlan. “Having a software solution that applies a consistent methodology to prioritize investments and produce a long-term investment plan is key. And that framework can drive a much more strategic approach to rate cases and value to all stakeholders.”
To learn how utilities can link their capital investment plans with their revenue and rate strategy, visit http://bit.ly/2GhbL18.
1 Moody’s. (2018, December 6). Moody's: 2019 outlook for US public power electric utility sector is stable [Research Announcement]. Retrieved from https://www.moodys.com/research/Moodys-2019-outlook-for-US-public-power-electric-utility-sector--PBC_1153429