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FILED February 1, 2021, INDIANA UTILITY REGULATORY COMMISSIONSTATE OF INDIANAINDIANA UTILITY REGULATORY COMMISSION IN THE MATTER OF THE APPLICATION OF INDIANA MICHIGAN POWER COMPANY FOR APPROVAL OF
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01
Gather all necessary financial data regarding the cost to be evaluated.
02
Identify the specific components within the cost that need to be considered for ratemaking.
03
Calculate the appropriate rate based on the data collected.
04
Analyze any factors that may impact the cost and adjust the rate accordingly.
05
Document the entire process and provide a detailed explanation of the ratemaking treatment for cost.

Who needs ratemaking treatment for cost?

01
Businesses or organizations that need to set prices for their products or services based on the cost incurred in production.
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Insurance companies that need to determine appropriate insurance rates based on the cost of claims and other factors.
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Government agencies that need to regulate pricing within specific industries to ensure fair competition and consumer protection.
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Ratemaking treatment for cost is the process of determining how much an entity can charge for its goods or services based on the costs incurred in producing those goods or services.
Entities that are involved in providing goods or services that are subject to regulation by a governing body are required to file ratemaking treatment for cost.
Ratemaking treatment for cost is typically filled out by inputting all relevant cost information related to the production of goods or services and calculating the appropriate rate based on those costs.
The purpose of ratemaking treatment for cost is to ensure that entities are charging fair and reasonable prices for their goods or services based on the costs incurred in producing them.
Information such as direct and indirect costs, overhead costs, labor costs, material costs, and profit margins must be reported on ratemaking treatment for cost.
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