Back to the Future: Meeting Illinois' Special Accounting Requirements for Future Test Years in Rate Cases

Especially in times of rising investment like these, a utility’s ability to base its rates upon a future test year is an important tool to achieve cost recovery. Yet, Illinois law imposes a special burden on utilities using future test years: they must submit “a statement from an independent certified public accountant that the preparation and presentation of the applicable schedules comply with the Guide for Prospective Financial Information…” Many have viewed this requirement as difficult, if not impossible, to meet in practice under the rules now governing the accounting profession.

Foley Partners E. Glenn Rippie and John P. Ratnaswamy, along with Michael F. O’Connor, Managing Director from Huron Consulting Group, discussed legal and accounting strategies for developing and examining test-year data that allow utilities to meet this requirement in a practical manner.

For more information on the Web conference, please contact Jennifer Bartz at [email protected] or 414.297.5320.