The power generation industry relies on different fuel sources to generate electricity. Fuel sources include coal, nuclear power, gas ,oil, and hydrelectric power. An important barometer that must be constantly measured is a utility's load factor. This metric measures actual electrical energy consumption and consumption at full peak demand level. State PUC 's regulate electricity sales to end use customers such as home owners and businesses.
Regulators oversee that consumers receive reliable service at a fair price.
Their responsibilities also include ensuring public safety and preventing unreasonable prices, excessive earnings, and discriminating against customers. Rate hikes are allowed if a utilty company can show that they are experiencing higher operating costs. Utility Accounting Methods Electric utility companies have significant noncash items which can affect a utility's earnings. The most well known cash component has been the allowance for funds used in construction.