The Office of the Economist analyzes and recommends action on cost-of-capital issues in rate cases, evaluates utility requests to sell securities and bonds, and assesses utility merger and acquisition proposals. It tracks utility financial performance and monitors utility credit quality to ensure that utilities maintain adequate credit and bond ratings to support their capital needs and the provision of safe, adequate, and proper service at reasonable rates. The Chief Economist also advises the Board on economic, financial, and policy issues related to clean energy goals, including renewable energy and energy efficiency resources. The Office of the Economist reviews and performs benefit-cost analyses, carbon pricing proposals, and advises the Board on regional matters such as the Regional Greenhouse Gas Initiative (RGGI), generation and transmission markets, as well as broader energy market impacts.
In addition to advising the Board on capital and earnings requirements to assure that utilities maintain financial integrity sufficient enough to support operations and infrastructure and resiliency efforts, the Chief Economist works with the industry divisions to evaluate how proposed alternatives to rate-of-return regulation would impact ratepayers, including replacing traditional cost-based regulatory structures with market-based incentive mechanisms in order to improve efficiency and minimize costs.
The Office also evaluates initial public offerings, industry restructuring proposals, asset securitization, risk management, and utility diversification activities and may propose and initiate focused audits. Other projects include frequent coordination with the Department of Environmental Protection (DEP) on water and energy issues.
