Ensure that Monopoly Utility Rates are Transparent and Fair to Customers
Electricity is a top three production cost for most manufacturers. Regulated monopoly utilities continuously ask for “rate riders” that let them increase rates quickly, with very limited review. These rate riders can disadvantage utility customers because they don’t provide a full picture of what a utility is earning before allowing another rate increase. In particular, riders tend to account only for increases in costs, while failing to account for offsetting cost reductions or increased revenues since the utility’s last full rate case. This can cause utilities to over-earn, forcing Texas businesses to pay more than they should for electricity. TAM’s priority is to protect the ratemaking process against ongoing utility efforts to reduce oversight and transparency.