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
About PowerPlan: For more than 25 years, PowerPlan has helped North American energy companies make the right financial decisions which improve lives and powers the world. Through our industry-leading expertise, innovative technology and vast experience listening to and working in tandem with our customers, PowerPlan software sets the standard that CFOs can count on for financial clarity for energy organizations of all sizes. For more information, email firstname.lastname@example.org or visit www.powerplan.com.
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