Regulatory risk associated with resource procurement―the potential that a distribution company could be denied the recovery of its wholesale supply costs—has contributed to a loss of investor confidence and reduced liquidity in the electric industry.

To address this issue, a solid and workable regulatory framework is needed to restore investor confidence and foster new infrastructure investment.  

Many states are reforming the planning and approval process to provide increased regulatory certainty. This includes defining specific criteria for evaluating the prudence of resource procurements.

EEI members can use the resources below to learn more about resource procurement prudence and craft strategies to educate policymakers, investors, and rating agencies about the associated regulatory risks and need for reform:

• Resource Planning and Procurement: Case Studies of Regulatory Innovation
• Resource Planning and Procurement In Evolving Electricity Markets 
• Resource Planning and Procurement: Regulatory Trends & Issues 
  (Draft, April 11, 2003)
• Sound Bites on Regulatory Certainty and Capital Access  
  For use in demonstrating the link between regulatory certainty and capital access, and advocating regulatory reforms to provide increased certainty.
• Disincentives to Utility Investment 

EEI Staff Contacts

• Eric Ackerman
  eackerman@eei.org or 202-508-5528