Electric utilities filed nine new rate cases this quarter, a slight spike down from the sixteen filed in the second quarter but still consistent with the upward trend in rate-case activity since 2000. With no seasonal or other pattern to filings during the year, a large variability in the number on a quarter-to-quarter basis is fairly normal, even within the context of a clear longer-term trend. Rate freezes due to industry restructuring have kept the price of electricity artificially low for several years, while rising fuel commodity prices have exacerbated the disparity between generation costs and rates. Utilities are increasing capital spending on reliability, environmental compliance, and new generation capacity to meet rising power demand, and the strong global economy is producing inflation in construction-related costs.
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