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Resource Procurement Prudence

Regulatory certainty is essential to restore investor confidence and foster new infrastructure investment.

Regulatory risk associated with resource procurement – the potential that a distribution company could be denied recovery of its wholesale supply costs – has contributed to a loss of investor confidence and reduced liquidity in the electric industry.  To rectify this, a solid and workable regulatory framework is needed.

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.

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