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Formula Rate TWOS Page 1 of 462019For Twelve Months Ended Kept subsidiaries in PM Transmission Cost of Service Formula Rate Utilizing Actual/Projected FERC Form 1 Data AEP Indiana Michigan Transmission

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Understand the purpose of formula rates in electric, which are designed to adjust the rates based on certain factors like inflation or changes in operating costs.

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What is formula rates in electric?

Formula rates in electric are predetermined rates set by regulatory agencies that electric utilities use to calculate customer bills.

Who is required to file formula rates in electric?

Electric utilities are required to file formula rates with the regulatory agencies.

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The purpose of formula rates in electric is to ensure transparency and fairness in billing for electric customers.

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Information such as cost of service, rate base, return on equity, and other financial data must be reported on formula rates in electric.

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