MPSC Commissioner Eubanks testifies before House Energy Policy Committee on financial aspects of utility rate cases
LANSING, Mich. -- Michigan Public Service Commissioner Rachael Eubanks testified today before the House Energy Policy Committee on financial decision-making processes that are the basis for determining fair and prudent outcomes for all parties involved in utility rate cases.
Eubanks said she appreciated the opportunity to provide expert testimony to the committee on complicated financial topics such as determining an appropriate return on equity (ROE) for a utility as well as answer questions regarding financial issues governing rate cases that are protective of ratepayers.
“I appreciate the opportunity to discuss with the House Energy Policy Committee the Michigan Public Service Commission’s process for determining key financial factors such as the return on equity,” Eubanks said. “Authorized return on equity is a piece of the ratemaking formula, but it is a significant and contentious issue in any rate case encompassing many expert witnesses, numerous financial analyses, and hours of cross-examination.”
Eubanks has an extensive financial background and a degree in economics from the University of Michigan. Before being appointed to the MPSC in August 2016, Eubanks served as a financial advisor to four state treasurers and worked in public finance for 13 years, during which time she completed more than $22 billion in bond financing for the State of Michigan. She also has served as financial advisor on $185 million for the Public Lighting Authority of Detroit that financed the overhaul of the city’s street lighting system during Detroit’s bankruptcy.
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